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…
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
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,…
A property’s rental yield is the amount of gross rental income that it attracts relative to its market value. In Australia, gross residential property rental yields typically fall between 2% and 5% annually. This yield can provide insights into a property’s fundamentals and therefore anticipated investment returns. What drives a property’s rental yield? Two primary…
There is one property investing golden rule that is more important than everything else. And if you nail this ‘one thing’, you are guaranteed to build wealth over the long run. This statement might sound sensationalist, but I honestly cannot overstate this point. The golden rule is that the quality of the property you invest in will determine your…
Many people face two financial planning challenges. Firstly, their projected super balance may not be enough to fund their desired living expenses in retirement. Secondly, they would like to enjoy the flexibility of being able to reduce working hours (or even retire in full) in their 50s. Often, the solution to these two financial planning…
A few weeks ago, I discussed the limitations of using monetary policy – increasing interest rates – to tackle inflation. I highlighted that only 37% of Australians have mortgages, so they are the only ones that are directly affected by higher rates. Conversely, around 30% of Australians without mortgages benefit from higher interest rates as they earn…
In 2007, laws changed to allow SMSFs to borrow for property investments if they met specific compliance rules. This led to a surge in super-funded property investments from 2007 to 2017, totalling around $45 billion. However, major banks withdrew SMSF borrowing products between 2017 and 2018 and super contribution rules were tightened, making this strategy…
When the weather gets warmer and you start enjoying those longer, lazier days with summer coming up, it’s easy to get caught up in the romance of acquiring a holiday home. While there’s not necessarily anything wrong with owning a property intended more for vacation fun than financial gain, purchasing a holiday property is usually…