2018 was a tumultuous year for the property market, with more turmoil on the horizon, so when can we expect to see improvements? Don’t expect to see any green shoots until at least the second half, but more likely the end, of 2020. There’s a lot going on in the property market at the moment,…
Turmoil and uncertainty in the property market has taken its toll not only on investors but also property developers and lenders. Behavioural changes of investors have had a marked impact on the market as prices continue to slump and lenders keep a firm grip on borrowing. A reduction in investor activity has weakened the property…
While the Western Australian economy is slowly starting to rise from the doldrums, the overall outlook for the Perth property market remains below average. Our analysis at RiskWise Property Research shows the Western Australian (WA) economy is still significantly below the 10-year benchmark. While there were positive signs the mining sector had begun to recover with exports…
A five-year analysis of the property market has shown high rental yields do not necessarily mean high overall returns for investors. In fact, our latest analysis at RiskWise Property Research has proven that over the medium to long term low rental returns delivered significantly higher overall return (i.e. capital growth + rental return), while high rental returns…
Taking a blanket approach when implementing major policies unfairly undermines already weak property markets. This comes after the Western Australian Treasurer Ben Wyatt complained to the Australian Prudential Regulation Authority (APRA) that lending restrictions introduced across Australia by commercial banks were hurting the Perth property market and wider economy. The restrictions were introduced to tighten…
The Hobart property market has well and truly decelerated with both a reduction in price growth and activity. Price growth for the quarter ending October for units was only 0.7 per cent and for houses 1.4 per cent, well below previous periods. Some capital growth was still projected next year, especially as Hobart was such…
A reduction in investor activity has weakened the property market with the flow-on effect of upgraders and potential owner-occupiers abandoning thoughts of buying. When investors left the market the energy that drove it was drained, but when investor interest was aroused there was more activity from owner-occupiers. Credit restrictions, the Banking Royal Commission, difficulties borrowing…
There are risks associated with the suburb and risks that are associated with the specific property. The number one risk is taking advice from a property professional who is not paid for their services. In this industry no one works for free. As a general rule, if you are not paying, you are not the…
The last five years has seen Outback Australia sustain a long period of weakness when it comes to property prices. Research by RiskWise has shown the weakness in these markets have a strong correlation with low unemployment and therefore extremely small population growth. This was clearly demonstrated in Outback Queensland where the unemployment rate was…
Despite Labor party claims their proposed changes to negative gearing and capital gains tax will not affect existing investors, as the changes will be grandfathered, research house RiskWise says this is simply not the case. The proposed changes would create two types of property markets – primary and secondary markets – which would significantly impact…
