One of the biggest questions in real estate is, "will the property market continue to rise?"
The follow on questions are often then:
How will this happen if wages aren’t keeping up?
What are the major factors that affect that growth?
Will there still be a gap between Sydney, Melbourne and Brisbane?
On Monday on Sky Business I interviewed Eliza Owens who is an analyst at Residex / CoreLogic – they analyse and predict capital growth rates. I’ve attached 2 short clips of the interview as well as her capital growth charts.
Speaking on and off camera she’s still very confident in the market, despite the counter arguments that the share traders and the contrarian economists often bring up about wage affordability etc.
It’s good to know that what we see on the street is along the same lines as the property analysts.
Not all the markets grow the same though and so the discussion includes Perth and Darwin
What are the property capital growth and rental results for June 2016 in Australia?
Will property continue to rise in value? What factors affect capital growth and rental yields?
There is no guarantee that the market will continue to rise in the future, but if you look at the graph, the trend does seem to be going one way. Do you really want to bet your life savings on it turning round and going the other way.
If the market does move at 5-10% a year on a $1m property, that means each week you delay your decision it costs you an extra $1,000 - $2,000 every week