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Saturday Summary – some weekend property investment reading

 Each Saturday morning I like to share with you some of the interesting articles I’ve read during the week. This week there is a big emphasis on the interest rate cuts and the property price results for the first quarter of the year.

I’ve put them here all in the one place for your easy weekend reading and to make it easier for you to improve your property investment knowledge.

Enjoy your weekend….and please forward to your friends by clicking a social link button on the left.

Confidence the missing ingredient  

How many rate cuts will it take to boost the property market?

None according to Carolyn Boyd… it’s a confidence job. Yes, falling rates may help to boost confidence but they aren’t the only factor at play.

In days gone by, when everyone was feeling generally happier about their lot, it would have been easy to argue that a cut or two could get people out and buying again, boosting prices and giving a much-needed lift to our residential construction sector.

But burnt by the realisation – in the wake of the global financial crisis – that access to big loans isn’t an open chequebook but is instead a heavy burden to bear, it could take more than one or two rate cuts to improve confidence.

Why?

Because there’s the worries still hanging around about the global economy, the pain that the two-speed economy is inflicting and the fact the banks have been slyly lifting their rates out of cycle over the past few months, undermining consumers’ confidence that they know where they stand, and that official rate cuts will deliver relief.

National Property Update – what’s happening in your state?

Another great show produced by Kevin Turner. If you don’t already subscribe to this excellent weekly Internet based radio show.

This week he has a heap of great guests:

  •  New South Wales –George Raptis from Metropole Property Strategists
  • Victoria- Greville Pabst from WBP Property Group.
  • Queensland –
  • Western Australia– Trevor Dunkley from Property Wizards
  • South Australia Debbie Williams from Savy Property People

and

You should definitely subscribe to this new weekly program. It’s free!

What’s really happening to property values?

In this article Chris Vedelago highlights how 3 different research houses put a different spin on the property markets.

All seek to measure the same thing but use very different methodologies to do it. The only thing they all agree on is that they are right and everyone else is wrong.

Why house prices slumped in the second half of April

Economist Chris Joye also gives his views on why the different research houses have different views on what’s happening to property values.

Of course he believes RPData-Rismark’s results are the most accurate, and having followed these stats for years I’d have to agree.

Don’t expect too much from interest rate cuts

Earlier this week everyone was writing about interest rates and what the likely effect of rate cuts would be on the property market.

Property analyst Michael Matusik some it up very well when he said “don’t expect too much.”

This blog he explains that in the past falling rates affected the market positively, especially after a succession of interest rate falls.  Historically, house sales improved, new housing starts picked up, and end prices stabilised – and more often than not, rose.

But over the last decade or so the connection between cheaper money and house market improvement has been broken.  And unless action is taken, then this circuit might be broken for good.

Melbourne’s population set to soar

A new report, Victoria in Future 2012, shows that the state’s population is expected to grow from 5.6 million to 7.3 million over the next 20 years, an average annual growth rate of 1.3 per cent.

Melbourne’s population is expected to grow from 4.1 million to 5.4 million, while regional Victoria’s growth rate will be slightly slower, at 1.2 per cent.

While much of this growth will be in the outer, more affordable suburbs, this all augers well for the long term viability of the property investment market inMelbourne, which is currently going through a bit of a flat patch.

 

 



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About

Michael is a director of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and his opinions are regularly featured in the media. Visit Metropole.com.au


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