In Australia, everything appears to be on the rise: interest rates, the prices of goods and services, property values, and even the temperature. On the other hand, an surprisingly to some, the number of people selling their homes due to mortgage affordability issues is decreasing. In fact, new Domain figures show a clear decrease in…
The RBA kept the cash rate on hold at 4.1% for the fourth successive month in October, citing ‘a more sustainable balance between supply and demand in the economy’, but also ongoing concerns about inflationary pressures and a heightened level of uncertainty surrounding the economic outlook. The recent uptick in inflation, from 4.9% annually in…
Australians are delaying moving to new homes due to concerns about housing affordability, high stamp duty costs, fears of not earning enough from selling their current homes, and the uncertainty of finding better alternatives. This has led them to stay in homes that may not be the best fit for their needs. In fact, a…
After the largely unanticipated COVID-19 property market boom, we were hit with twelve successive interest rate hikes, sapping buyer confidence and demand. Since then we’ve witnessed six months of strong price growth in virtually all housing markets, despite those high interest rates. I’ll explain why these events took place and what the future holds for property…
I am sure you have seen the TV shows. So easy, to transform an entire house from top to bottom in less than an hour, while making thousands of dollars in the process! All you need is a top team of tradies, preferably someone in short shorts and a cute puppy dog. Before you know…
It’s been a wild ride for property investors over the past 6 years – from a cutoff of interest-only loans to threats of a negative gearing ban, to aggressive interest rate hikes, high property prices… and now, a spotlight on Australia’s rental laws. Ultra-low vacancy rates, high rent prices, strong demand, and a rising population…
We are at the beginning of a new property cycle. In the past, this stage of the property cycle was the time when lifetime wealth was created by a small group of investors. But if history repeats itself, and most likely will, most property investors won’t develop the financial freedom they are looking for. Why…
Have you ever had a strong opinion (belief) about investment markets that was subsequently proven to be incorrect? A recent example was when many people predicted borrowers would be forced to sell their properties due to the Covid lockdowns and the market would crash. This outcome now seems unlikely. It is my view that a…
As expected by markets, the monthly inflation indicator came in at 5.2 per cent for the year to August. This was an increase from the very sharp drop to 4.9 per cent last month but below the 5.4 per cent recorded in June. The increase was mainly driven by rising fuel prices, driven more so…
When it comes to property investment you’ll often hear two conflicting philosophies advocated. Some suggest you should invest in property to achieve positive cash flow – that’s when rental returns are higher than your mortgage repayments and expenses leaving money in your pocket each month. Others suggest you should invest for capital growth looking for…
