Tanya Harber No Comments

December 2016 Snapshot – The Australian housing market

The Australian housing market – surging unit supply, the economy and what it all means for investors

Housing matters a lot in Australia. Having a house on a quarter acre block is part of the “Aussie dream”. Housing is a popular investment destination. And the housing cycle is a key component of the economic cycle and closely connected to interest rate movements. But in the last 15 years or so it has taken on a darker side as a surge in house prices that started in the late 1990s had led to poor affordability and gone hand in hand with surging household debt.

Key points

  • Expensive housing and high household debt leave Australian housing vulnerable. But without a recession or much higher interest rates a property crash is unlikely.
  • However, the surging supply of apartments and the continuing strength of the Sydney and Melbourne property markets pose an increasing risk. Average dwelling prices in these cities are likely to see another cyclical 5-10% price downswing around 2018, with unit prices in oversupplied areas likely to decline 15-20%.
  • The combination of high house prices, huge gains in Sydney and Melbourne, low rental yields and a coming surge in the supply of apartments mean property investors need to be careful. Best to focus on undersupplied, less loved parts of the property market.

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Emilio Bangit No Comments

Intergenerational Wealth – December 2016 Newsletter

December 2016

Welcome to the latest edition of our client newsletter,

Our articles cover a range of topics which we hope you will find interesting. We aim to keep you informed of changes as they happen, but we also want to provide ideas to help you live the life you want – now and in the future.

In this edition we discuss Don’t want to work full-time and provide you with information on Five tips for happy, healthy aging and Blinded by optimism.

If you would like to discuss any of the issues raised in this newsletter, please don’t hesitate to contact us.
In the meantime enjoy the beautiful Summer weather ahead and we hope you enjoy the read.

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All the best,
Emilio and the team at Intergenerational Wealth