One of the most notorious land scams ever experienced in Australia took place on Russell Island, which is located in southern Moreton Bay and is just a short trip by ferry from the city centre. Even though it is technically part of Greater Brisbane, the island was largely uninhabited when some enterprising property developers bought…
While some bank economists are predicting that house prices will fall this year or in 2023 as interest rates increase, I’d like to explain why property prices will continue to rise. Economists are concerned that the Reserve Bank will soon raise interest rates to slow down inflation because inflation is very hard to reign in…
Virtually all of our major property markets experienced dramatic price rises during 2021, but the rate of growth is now starting to vary across our capital cities. Some housing markets are going into decline, while the rate of growth in others is accelerating. John Lindeman explains why this happens. The recent price growth slowdown in…
Do headline-grabbing horror stories about murders or riots steer potential property buyers away from some suburbs? Does the “celebrity effect” really does improve buyer demand in others? In late 2005, thousands of angry, alcohol-fuelled rioters engaged in an orgy of assaults and violence now known as the “Cronulla Riots”. It was widely considered that these…
The Australian Prudential Regulation Authority (APRA), has made a simple, but significant change to the lending rules for banks and other authorised lenders. This could well lead to some unintended consequences. From November, borrowers seeking housing finance will need to demonstrate that they are able to meet repayments when interest rates are assessed at least 3 per…
There’s been a great deal of talk about whether repeated and prolonged lockdowns will impact housing prices, but the fact remains that the two “lockdown” cities have experienced recent price booms, while those with the weakest price performance have been lockdown free. Since the onset of the COVID-19 virus with all those lockdowns and restrictions…
Many believed that recurring lockdowns and working from home restrictions would lead to a baby boom, but it’s not in sight – yet. John Lindeman explains why, and what’s around the corner. It seems natural that periodically locking down couples at home and closing public entertainment and recreation facilities would lead to more babies being…
The closing of our national borders to overseas arrivals is impacting population growth in some States and Territories but is also causing cash flow booms for property investors in others. It’s understandable that much of the focus on international border closures caused by the pandemic has been negative because lower population growth ultimately means less…
High price growth often motivates investors to buy properties in the expectation that the growth will continue or even escalate, so are investors about to jump on board and turn this boom into a price bubble? Although the number of investors in the property market is growing, the percentage of investors buying property is around…
The fear of missing out is one of our most powerful survival instincts, but in our modern societies often leads to seemingly irrational behaviour. Remember those crazy supermarket scenes early last year as people stampeded and fought each other to buy a few rolls of toilet paper? More recently it’s been happening in the property…