Forecasts that Australian property prices could fall by as much as 40 per cent over the next decade have been rubbished by leading industry analysts.
Earlier this week, Professor Steve Keen told The Adviser that Australian properties could suffer a price slump similar to Japan.
“I have always said we will see property prices fall by 40 per cent over the next 10 to 15 years. In fact, I wouldn’t be surprised to see property prices fall by as much as 20 per cent in the next five years.”
But Mr Keen’s comments have been branded “sensationalist” by leading analysts.
“I don’t know what research he has done to back that up, but it sounds rather sensationalist. I wouldn’t expect to see a 40 per cent fall in property prices when we have a growing population and not enough houses to cope for the demand,” RFI’s director Alan Shields told The Adviser.
“I would be surprised to see house prices depreciate by 10 per cent let alone 40 per cent over that time period.”
Mr Shields comments were echoed by both AMP chief economist Shane Oliver and HIA chief economist Harley Dale.
Both Mr Dale and Mr Oliver agreed that Australia could be in for a period of softening house prices, but did not expect to see any significant depreciation.
“House prices will continue to rise, if only ever so slightly,” Mr Dale said.
Forecasts that Australian property prices could fall by as much as 40 per cent over the next decade have been rubbished by leading industry analysts.
Earlier this week, Professor Steve Keen told The Adviser that Australian properties could suffer a price slump similar to Japan.
“I have always said we will see property prices fall by 40 per cent over the next 10 to 15 years. In fact, I wouldn’t be surprised to see property prices fall by as much as 20 per cent in the next five years.”
But Mr Keen’s comments have been branded “sensationalist” by leading analysts.
“I don’t know what research he has done to back that up, but it sounds rather sensationalist. I wouldn’t expect to see a 40 per cent fall in property prices when we have a growing population and not enough houses to cope for the demand,” RFI’s director Alan Shields told The Adviser.
“I would be surprised to see house prices depreciate by 10 per cent let alone 40 per cent over that time period.”
Mr Shields comments were echoed by both AMP chief economist Shane Oliver and HIA chief economist Harley Dale.
Both Mr Dale and Mr Oliver agreed that Australia could be in for a period of softening house prices, but did not expect to see any significant depreciation.
“House prices will continue to rise, if only ever so slightly,” Mr Dale said.
(Source: Jessica Darnbrough)
The Australian housing market has a bright future, and Gen Ys will be the ones to lead it there, a social demographer has claimed.
In spite of growing pessimism surrounding the economy, KPMG partner Bernard Salt has told Australian BrokerNews he expects economic conditions to pick up within the next few years. Salt claimed much of the economic pessimism in the housing market is merely reverberations from the GFC.
“We are in the shadow of the GFC at the moment. When you’re in the shadow, it’s cold and bleak and you can’t see beyond the darkness. By 2012, 2013 or 2014 we will have left it behind. You can’t be moping around after a recession forever,” Salt commented.
Salt believes Gen Y buyers will be responsible for reinvigorating the housing market in the coming years. He said Gen Ys are not affected by post-GFC malaise that has seen many consumers tighten their belts and retreat from the housing market.
“I don’t think Gen Y were really particularly affected by the GFC. They weren’t married, they don’t have a mortgage, they don’t have kids. There’s sort of a brash optimism. It will be they who move us forward,” he said.
Though first home buyer participation has fallen to 15.8% of all housing finance, Salt believes Gen Ys will soon begin to enter the housing market in earnest. He commented that Gen Ys will stimulate first home buyer activity as both their optimism and the necessity to “grow up” pushes them into property ownership.
“They have to move into household form pretty quick-smart,” he said. “They can’t hang around and pretend to be the people from Friends forever. Ultimately, the practicalities of life force you to do that. You can’t be footloose and fancy-free at 33. You can do that at 23, but you can’t do that at 33.”
The Australian housing market has a bright future, and Gen Ys will be the ones to lead it there, a social demographer has claimed.
In spite of growing pessimism surrounding the economy, KPMG partner Bernard Salt has told Australian BrokerNews he expects economic conditions to pick up within the next few years. Salt claimed much of the economic pessimism in the housing market is merely reverberations from the GFC.
“We are in the shadow of the GFC at the moment. When you’re in the shadow, it’s cold and bleak and you can’t see beyond the darkness. By 2012, 2013 or 2014 we will have left it behind. You can’t be moping around after a recession forever,” Salt commented.
Salt believes Gen Y buyers will be responsible for reinvigorating the housing market in the coming years. He said Gen Ys are not affected by post-GFC malaise that has seen many consumers tighten their belts and retreat from the housing market.
“I don’t think Gen Y were really particularly affected by the GFC. They weren’t married, they don’t have a mortgage, they don’t have kids. There’s sort of a brash optimism. It will be they who move us forward,” he said.
Though first home buyer participation has fallen to 15.8% of all housing finance, Salt believes Gen Ys will soon begin to enter the housing market in earnest. He commented that Gen Ys will stimulate first home buyer activity as both their optimism and the necessity to “grow up” pushes them into property ownership.
“They have to move into household form pretty quick-smart,” he said. “They can’t hang around and pretend to be the people from Friends forever. Ultimately, the practicalities of life force you to do that. You can’t be footloose and fancy-free at 33. You can do that at 23, but you can’t do that at 33.”
(Source: By Adam Smith 10/06/2011 )
Investors that are looking to snap up a property bargain should do their shopping in winter, Australian Property Monitors chief economist Andrew Wilson has claimed.
Speaking to The Adviser, Mr Wilson said investors with good equity would be well placed to avoid the Easter property rush and buy in winter.
“There is always a lot of action in the property market in the lead up to Easter. Similarly, there is always a lot of action in spring. Often buyers overlook winter which, provided you have the capital behind you, can be an excellent time to grab a bargain,” he said.
Mr Wilson also said the current market conditions favoured investors.
“The economy is very strong at the moment. And it is definitely a buyer’s market. There is plenty of stock in the mid-price range – which is ideally suited to investors.”
Investors that are looking to snap up a property bargain should do their shopping in winter, Australian Property Monitors chief economist Andrew Wilson has claimed.
Speaking to The Adviser, Mr Wilson said investors with good equity would be well placed to avoid the Easter property rush and buy in winter.
“There is always a lot of action in the property market in the lead up to Easter. Similarly, there is always a lot of action in spring. Often buyers overlook winter which, provided you have the capital behind you, can be an excellent time to grab a bargain,” he said.
Mr Wilson also said the current market conditions favoured investors.
“The economy is very strong at the moment. And it is definitely a buyer’s market. There is plenty of stock in the mid-price range – which is ideally suited to investors.”
If you ask a real estate agent, “Should I keep my home on the market over the holidays?” an agent will tell you, “Yes, absolutely, because then you know buyers are serious.”
You know what I think about that? I’ll cut to the chase. It’s rubbish advice. If you don’t have to sell between late-December and February, take your home off of the market.
Why Your Home Should Be Off the Market Over the Holidays
· Buyers will think you are desperate.
· It’s inconvenient to always be ready to show at a moment’s notice.
· The offers you receive will likely be for less than list price.
· You’re appealing to a much smaller inventory of buyers who have very specific needs that your home might not match.
· It’s almost impossible to close a transaction in December if the offer is received mid-month. Buyers who want to close in January make offers in January.
· If you remove your home from the market, it can go back as a new listing in January, thereby drawing more traffic because it’s fresh.
· Your agent might be on holidays in December and unavailable.
Some sellers insist on leaving their homes on the market, regardless. The deciding factors depend on local custom, on what neighbors are doing and how real estate activity is viewed by others during the holiday season in your area. Every city is different.
Still, less stock on the market over the holidays means less competition. However, when the pool of buyers drops, the remaining balance of stock might not make much difference. In parts of the country where its really hot, buyers think twice about leaving their home to trudge through your property when they’d rather be out in a cool shopping centre or staying at home in front of the airconditioner.
If You Leave Your Home on the Market
Should you put out the fantastic plastic Christmas trees and the gold and silver bells on the walls? What about hanging a wreath on your door or showcasing a Christmas tree in front of a window? What’s overdoing it? What’s not?
People carry biases and prejudices with them. Why give them more information than they need to know about you? By not decorating, you are keeping people’s imagination active during home showings. You are also making your home feel more spacious without blocking pathways. When buyers enter your home, you want them to imagine putting their own furniture in each room, making it theirs, and they can’t do that if your holiday decorations dominate the stage.
Holiday Decorating Compromises for Stubborn Sellers
If you discard advice not to decorate and do it anyway, at least keep the decorations to a minimum. Don’t block or cover up important selling features such as fireplace mantels, stairs, stained-glass windows.
· Tone down the size of tree. In place of a 10-foot tree, try decorating a table-top, four-foot version.
· Stack wrapped presents in a closet or in one corner.
· Use more splashes of red than green because red is an emotionally appealing color.
· Resist the urge to hang banners and use greenery instead.
· Display centerpieces made from pine cones or other wintry pieces of nature.
· Never leave candles burning unattended.
· Set a plate of biscuits on the counter, next to festive paper napkins for guests.
(Source: Elizabeth Weintraub)
By Staff
If you ask a real estate agent, “Should I keep my home on the market over the holidays?” an agent will tell you, “Yes, absolutely, because then you know buyers are serious.”
You know what I think about that? I’ll cut to the chase. It’s rubbish advice. If you don’t have to sell between late-December and February, take your home off of the market.
Why Your Home Should Be Off the Market Over the Holidays
· Buyers will think you are desperate.
· It’s inconvenient to always be ready to show at a moment’s notice.
· The offers you receive will likely be for less than list price.
· You’re appealing to a much smaller inventory of buyers who have very specific needs that your home might not match.
· It’s almost impossible to close a transaction in December if the offer is received mid-month. Buyers who want to close in January make offers in January.
· If you remove your home from the market, it can go back as a new listing in January, thereby drawing more traffic because it’s fresh.
· Your agent might be on holidays in December and unavailable.
Some sellers insist on leaving their homes on the market, regardless. The deciding factors depend on local custom, on what neighbors are doing and how real estate activity is viewed by others during the holiday season in your area. Every city is different.
Still, less stock on the market over the holidays means less competition. However, when the pool of buyers drops, the remaining balance of stock might not make much difference. In parts of the country where its really hot, buyers think twice about leaving their home to trudge through your property when they’d rather be out in a cool shopping centre or staying at home in front of the air conditioner. If You Leave Your Home on the Market
Should you put out the fantastic plastic Christmas trees and the gold and silver bells on the walls? What about hanging a wreath on your door or showcasing a Christmas tree in front of a window? What’s overdoing it? What’s not?People carry biases and prejudices with them. Why give them more information than they need to know about you? By not decorating, you are keeping people’s imagination active during home showings. You are also making your home feel more spacious without blocking pathways. When buyers enter your home, you want them to imagine putting their own furniture in each room, making it theirs, and they can’t do that if your holiday decorations dominate the stage.
Holiday Decorating Compromises for Stubborn Sellers
If you discard advice not to decorate and do it anyway, at least keep the decorations to a minimum. Don’t block or cover up important selling features such as fireplace mantels, stairs, stained-glass windows.
· Tone down the size of tree. In place of a 10-foot tree, try decorating a table-top, four-foot version.
· Stack wrapped presents in a closet or in one corner.
· Use more splashes of red than green because red is an emotionally appealing color.
· Resist the urge to hang banners and use greenery instead.
· Display centerpieces made from pine cones or other wintry pieces of nature.
· Never leave candles burning unattended.
· Set a plate of biscuits on the counter, next to festive paper napkins for guests.
(By: Staff, 8 Dec 2010)
RESIDENTIAL developers are tussling with industrial and commercial investors in Melbourne’s inner west as demand hots up for land close to the central business district.
In the firing line are Yarraville, Footscray, Brooklyn, Spotswood and Altona North.
Nathan Bingham, head of Colliers International’s Melbourne West office, said Melbourne’s population growth would drive much residential zoning over the next couple of years.
Plan Assist offer many investment packages that place you in line for property that has the potential to add value. To find out how to capitalise on these opportunities, Call the Plan Assist team on 02 9449 2333 to enquire today.
Source: Philip Hopkins – Business today
August 18, 2010