[PODCAST] Melbourne Property is 21% Undervalued – Here’s Why with Stuart Wemyss

Melbourne property investors have endured almost a decade of disappointing growth, and the usual explanation is taxes, debt and government policy.

But what if the biggest cause was the extraordinary 20-year boom that came before it?

By the end of this episode, you'll understand exactly why Melbourne has underperformed for the best part of a decade, why the usual suspects, land tax, state debt, poor sentiment, probably aren't the real culprits, and why the length of Melbourne's flat patch might actually be the strongest signal yet that a powerful new growth cycle is coming.

Stuart Wemyss my guest today has crunched forty-five years of data across every capital city in Australia, and what he's found flips the whole "Victoria is broken" narrative on its head.

In this episode, we discuss Melbourne’s property market and what its long period of weak growth could mean for investors.

We examine why Melbourne’s recent performance may be the aftermath of an unusually strong 20-year boom, rather than the result of one policy or economic factor.

Stuart explains how he uses 45 years of capital city data to compare current prices with long-term trends.

We explore why Melbourne houses and apartments appear below those trends, and what might prompt the market’s next growth phase.

The conversation also considers rental yields, negative gearing changes and the choices investors can make when planning for the long term.

Takeaways

• A long boom helps explain Melbourne’s recent stagnation
• Tax changes can shape sentiment without explaining everything
• State debt alone doesn’t predict property performance
• Population growth and productivity support economic expansion
• Forty-five years of data reveal long-term market trends
• Melbourne houses sit below their estimated long-term trend
• Apartments appear further below trend than houses
• Percentage growth may ease as property prices rise
• Stronger yields may improve an investment’s income profile
• Buying selectively can matter before growth returns

Links and Resources:

Join us at one of our upcoming seminars in Melbourne, Sydney, and Brisbane.

• Click here for more details and to lock in your spot.
• Join us in this small group environment so you can get your personal questions answered.

Answer this week’s trivia question here - https://www.propertytrivia.com.au/

• Win a hard copy of How To Grow A Multi-Million Dollar Property Portfolio In Your Spare Time.
• Everyone wins a copy of a fully updated property report.

Michael Yardney

Get the team at Metropole to help build your personal Strategic Property Plan. Click here and have a chat with us.

Stuart Wemyss – Prosolution Private Clients

Stuart’s new book – Wealth by Design: 8 rules for smarter investing and financial freedom

Get a bundle of free reports and eBooks: 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.