If you could see one number that reliably predicts where property prices are heading next, would you want to know what it is?
Well, today, you’re about to find out — and it’s not what you think. 
You see…most investors think population growth drives property prices… but today I’m joined by Stuart Wemyss, financial strategist and founder of ProSolution Private Clients, who’s done some fascinating analysis showing that the real driver of housing price growth is lending volumes — not population growth or money supply.
Our conversation highlights the need for long-term strategies and a focus on fundamentals to achieve sustainable growth in property investments.
Takeaways
- Property price growth is influenced by various factors, not just population growth.
- Lending volumes can be a better predictor of property price movements than population growth.
- Investors should be cautious of markets driven primarily by speculation.
- Consumer sentiment plays a crucial role in lending and property prices.
- Economic factors like interest rates significantly impact lending volumes.
- A high proportion of investors in a market can signal potential risks.
- Understanding market cycles is essential for long-term property investment success.
- Focus on long-term fundamentals rather than short-term trends.
- Successful property investment requires a coordinated strategy across financial services.
Links and Resources:
Michael Yardney – Subscribe to my Property Update newsletter here.
Stuart Wemyss – Prosolution Private Clients
Read Stuart’s article here: https://prosolution.com.au/why-property-investors-shouldnt-trust-the-last-5-years-of-price-data/
Stuart’s Book – Rules of the Lending Game & Investopoly
Get a bundle of eBooks and Reports at: www.PodcastBonus.com.au
Also, please subscribe to my other podcast Demographics Decoded with Simon Kuestenmacher – just look for Demographics Decoded wherever you are listening to this podcast and subscribe so each week we can unveil the trends shaping your future. Or click here.
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