Almost everyone is predicting that property prices will surge higher this year. In fact, the newspapers are already full of stories about properties selling well above reserves. Low stock levels are partly responsible for the currently exuberant property market. That exuberance might cool as more stock becomes available. But the RBA and the government do…
The beginning of a new year is a great time to take stock and set personal and financial goals for 2021. I wanted to share the process that I use personally. It has worked well for me and of course, I use the same approach when advising my clients too. It’s particularly useful to undertake…
During 2020, most economists and commentators predicted that property values would plummet by 10%, 20% or even 30%! In May, I wrote a blog (and in The Australian newspaper here) outlining the reasons why I disagreed with these overly bearish forecasts. We now know that property prices didn’t fall by any more than 2% to 3% and have since recovered….
Over the last few weeks, lenders have aggressively cut fixed rates, particularly for investors that borrow on an interest-only basis. Three and five year fixed rates now range between 3.18% and 3.40% p.a. This means the cost to hold an investment property is as low as it’s ever been. This doesn’t mean we all should…
Understanding how property growth behaves is critical when making buy, hold or sell investment decisions. Unfortunately, I have seen lots of people make terrible decisions based on misinformation or misunderstanding. Therefore, if you are a property investor, you must understand this concept. And if you are an investor with a low asset base, you can…
Understanding how Covid lockdowns have impacted certain individuals and industries, helps to inform us about how quickly the economy and markets may recover. With this in mind, I thought it was useful to share a number of charts published recently by the RBA and banks which provide important and interesting insights. Covid has discriminated against younger workers…
It is my observation that investment-grade apartments in Melbourne have under-performed (from a capital growth perspective) compared to houses over the past 8 to 10 years. That is, apartments have generated very little capital growth (sometimes none), whereas houses have grown in value by between 5% and 8% p.a. over the same period. I have…
The government made an important announcement last week. This change could substantially increase your borrowing capacity in the next year. It is perhaps the most significant change that has occurred in the last decade and will further fuel property price growth. I also wanted to update you on interest rates, particularly in light of recent…
When you visit a financial advisor and receive advice, are they sharing their opinion or facts? Many people think they are relying on a subjective opinion when they seek financial advice. The fact is that you don’t have to take this leap of faith. I can prove why a certain approach or strategy is the…
Investing well is important. However, investing well over long periods of time is most important. Everyone would agree that making a one-time 50% return on an investment is a wonderful outcome. But making a 7% return each year for 40 years is a far better outcome, as it multiplies your initial investment by a factor…
