Go back only 5 years to 2012 and the talk was that “property price never went up”. Now the talk is that it (Sydney) has gone up too far.
The Reserve Bank and the banking regulator APRA are applying measures to slow the growth in investor lending.
Banks are responding in varied ways that are now favouring owner occupied loans over investor loans
To cut through the noise .. owner occupiers were given the last rate cut, investors were not .. it’s not the end of the world
The noise is over what is “causing” property price to rise. I would simply state that property value rises on average per annum between 5-8% (in a cycle that is not uniform) and so it has been for a 100 years (Alan Kohler : ABC economics journalist)
Peter Costello (former Aust Treasurer) states “Negative gearing isn’t causing property price to go up, interest rates are. When interest rates fall, property prices have to go up. The only way to bring down property price is to increase interest rate” (The Australian Fri 17th Jul). However, as stated by the Reserve Bank, Interest rates are forecast to stay low for the “foreseeable future”.
Here is a property truism of my own, gained from historical data over several property cycles
Sydney Median House Price is now $1million and Brisbane Median House price is still only $490,000
The last time Brisbane was this “cheap” was in 2002.
When Sydney appears expensive buyers shift their focus north (and why wouldn’t you!)
The last time Brisbane was only 50% of Sydney’s signalled the start of a long buying cycle that “ended” when Brisbane hit 80% of Sydney’s.
What does this mean? – history would indicate that Brisbane is at the start of a cycle that may last 3-5 years and end with Brisbane Median House Price at around $800,000.
The message? The time to buy in Brisbane is now.
Call or email me anytime… It’s what I’m here for… 0411 601 459
Want More? Download my app – Ask Alan – from the App Store and Google Play (click below)
Talk to me, ask questions, read up to date information, video on topics of interest…
App Store: http://apple.co/1ObU9AI Google Play: http://bit.ly/1MP04tP
Alan Heath… Mortgage Broker Brisbane CBD
A report from a government committee has suggested that Australian Banks be forced to issue…
I once wrote an article titled “A funny thing happened on the way to the…
How best to deal with the worry of inter- generational issues…? In my email last…
I spent time with long term clients and even longer friends over the weekend. Here…
There are things that can be taken as almost certain this year – so let’s…
This time WHY matters. The 3-year bond rate in the US is 5.30%, the 10-year…
This website uses cookies.