Over the past two decades, the average growth in the median house price across the top five capital cities has been 5.3% p.a. This rate is considerably lower than the preceding 20-year period from 1983 to 2003, during which median house prices grew by 8.7% p.a. This significant difference in growth rates has substantial implications…
Articles by Stuart Wemyss
Stuart was a Chartered Accountant before establishing mortgage broking firm ProSolution Private Clients. He has authored two books and shares his experience with readers of Property Update. Visit www.prosolution.com.au
A key financial goal for most people is to eventually repay their home loan. Last year I outlined 3 questions you must ask yourself to determine whether repaying your home loan is your top priority – see here. The internet is filled with countless ideas on how to repay your home loan faster. However, many of…
I was motivated to write this blog for two main reasons. Firstly, I observed several buyers’ agents on social media proudly advertising short-term capital gains. One instance caught my attention, where a buyers’ agent claimed to have purchased a property for a client 18 months ago for $435,000, asserting its current value at $510,000, implying…
As investors, we gain invaluable insights by experiencing various markets and events, and by reflecting on our actions—those we took and those we didn’t. I firmly believe that experience is the key factor in preventing costly investment mistakes. Hence, I dedicate time each year to ponder the lessons provided by the market in the preceding year. These…
The location of your “great Australian dream” can dramatically alter your wealth-building activities and as such, you must take this into account when developing your investment strategy. Homes are typically not purchased with the sole or dominant reason of building wealth as there are many non-financial, lifestyle factors that influence where we live. However, that…
Sydney’s housing market has shown robust growth since the early 1980s, with the median house price doubling approximately every decade during this period. In fact, several suburbs have delivered above-average growth. Melbourne has experienced comparable growth rates over the last 40 years. However, in contrast to Sydney, property in Melbourne tends to be more affordable,…
Apartments have underperformed compared to houses for the past 13 to 14 years in Melbourne and Brisbane and the past 6 years in Sydney. Melbourne has been the weakest market. Over the past 13 years since 2011, the median apartment price in Melbourne has only increased by 2.6% p.a. Interestingly, this matches the inflation rate…
It is often debated which is a better investment, property or shares. It is my thesis that property is an okay investment, but not as good as shares. However, when you factor in gearing (the ability to borrow to invest), property becomes a wonderful investment – better than shares. Property versus shares The main advantages of shares…
This year, many unique factors could influence the property market. Exploring how these elements might impact property prices is intriguing. Of course, the longer-term outlook is important for investors, as it better aligns with their investment horizon. Short-term market expectations likely hold more relevance for potential vendors. Markets hate uncertainty The dominant theme influencing investment…
The goal for most investors is to accumulate enough wealth so their investment assets generate sufficient passive income to meet living expenses. If this happens, it is no longer necessary for you to work for an income and you then have complete discretion over what you do with your time. Wouldn’t that be wonderful! However,…