Interest rates set to rise? The Chief Economist for Deloitte Australia, Chris Richardson, recently reported that within the next 4 years Australians are looking at a 2% interest rate increase, with the earliest prediction of a small rate increase by the end of 2018. Chris Richardson predicts that this will affect most people who are barely scraping by, such as young families who get help from their parents to secure a loan and to afford their mortgage repayments. Mebank’s 13th edition of ‘Household Financial Comfort Report’ presents findings and trend changes conducted in December 2017 and provides in-depth and critical insights into Australian households based on 1500 different Australian households bi-annually. The high levels of mortgage payment induced stress are set to increase, with over half the households that are renting or paying off a mortgage (56%) reporting that they are contributing over 30% of their disposable household income towards….
Negative gearing is not the property price growth problem!
There does not appear to be any concrete evidence that ending negative gearing will reduce property prices, in fact, most of the evidence has heuristics biases. If negative gearing ends the number of properties available for tenants to occupy will decrease. This will push rents up. When rents increase this attracts other types of property investors into the property market, who are interested in higher yielding investments which will, in turn, put pressure on property prices to rise. All that happens, is you replace one property investor with another type of property investor and the rents go up! Most of the current investors who use negative gearing are middle-income earners. By ending negative gearing and replacing it with yield-driven investors you will make the rich, richer and the poor, poorer! It is unlikely that either political party will lower the immigration intake to try to slow down property price growth…..
Get A FREE Sydney Market Appraisal! Its Fast, Simple and 100% FREE! Without Obligations! Click here to receive your free Market Appraisal Sydney Market Update October 24 2015 As reported in popular media articles The Sydney home auction market continues to drop, with nervous buyers being increasingly cautious by interest rates rises. Sydney has reported its lowest clearance rate of the year on October 24 2015, with the market now heading towards its lowest levels since the spring of 2012. The 64.4 per cent weekend result was below the 65.1 per cent recorded the previous weekend and significantly below the 78.9 per cent reported during the same weekend in 2014. The Sydney Real Estate market is now on course to record auction clearance rates of below 60 per cent this spring. Get A FREE Sydney Market Appraisal! Its Fast, Simple and 100% FREE! Without Obligations! Click here to receive your free Market….
Fusion Realty Real Estates “best kept secret!” Sydney’s Inner West and Inner City Real Estate Sales Results 2015 9 Clara Street, Newtown NSW 2042 Sold $1,065,000 86 Lord Street Newtown NSW 2042 Sold $780,000 9 Park Road, Erskineville Sold $966,000 105/362 Mitchell Road, Alexandria Sold $1,065,000 Get A FREE Newtown Market Appraisal! Its Fast, Simple and 100% FREE! Without Obligations! Click here to find out what your property is worth
On June 11 2015 CoreLogic released its RP Data monthly rental review for May 2015. It confirmed that in May 2015, rental rates rose at their slowest pace on record. The May data showed that capital city rents rose on an average of 0.1% in the month and only 1.5% over the year. Investors are not interested in rental returns but are simply targeting capital growth. Record low interest rates are enabling tenants to enter the property market, a long with the completion of new residential developments are contributing to the softening in the rental yields.
60 Billion dollars worth of new apartments for Sydney
According to channel nines news on March 2015 Sydney is in the midge of high rise invasion has 60 billion dollars apartment firm that will change the look virtually every suburb. In just one year the number of high rise under construction has increase dramatically and there are many more. Source: http://www.9news.com.au/sydney