Invest
‘Hold onto your hats’ as property landscape shifts
The aftershocks of the royal commission will shake up the property and lending landscape, an investment strategist has said, predicting resulting growth spurts in a number of key cities.
‘Hold onto your hats’ as property landscape shifts
The aftershocks of the royal commission will shake up the property and lending landscape, an investment strategist has said, predicting resulting growth spurts in a number of key cities.
According to Mike Harvey, the founder of On Your Side Investments, the property market is overdue for a shake-up. However, he argues the shake-up won’t come in the form of a burst housing bubble.
“It’s clear the onus on banks to verify income and expenses is going to slow the process down and make it more onerous for buyers wanting to get a loan,” Mr Harvey said.
“The downside is the extra costs to banks are likely to be passed on in the form of higher interest rates.”
He said tighter servicing requirements will trigger fewer loans and fewer properties being built.
“Funnily enough, that will have a counterproductive role in the housing affordability crisis as with our strong population growth; demand will increase, leaving only one way for rents and house prices to go,” Mr Harvey said.
As such, previously overlooked cities could be in for housing booms, with younger buyers leading the way.
Mr Harvey said the sector is already seeing an exodus of home-owners selling in Melbourne and Sydney and buying in Brisbane where prices are generally cheaper and the lifestyle generally better.
“There’s an increase in demand for Brisbane properties much like there was for Sydney and Melbourne before their boom phase, so we can fully expect a 40 per cent to 70 per cent increase in Brisbane house prices over the next three to four years as Brisbane does what Brisbane always does,” he said.
“While cities like Melbourne and Sydney are always going to be good places to invest because of their sheer size, population, infrastructure, business hubs and tourism, other cities are now starting to gain momentum as a result of external factors such as the royal commission.”
Mr Harvey added that Sydney and Melbourne are also in for possible growth spurts over the next two years as the softened markets stabilise.
Continuing, however, he told home buyers to “hold onto your hats”.
“For those who can afford to get in and pass the bank servicing requirements, I encourage to look very closely and then act if you can,” Mr Harvey said.
Property
How to determine the real value of a property
With various factors affecting market value and pricing, can one truly predict what buyers will pay for properties? ...Read more
Property
House prices tipped to soar 20% in 2 years: Westpac
House prices in Sydney are tipped to grow by 20 per cent over the next two years, and by 18 per cent in Melbourne, as a leading economist predicts strong economic growth following the rollout of the C...Read more
Property
5 tips to unearth the next property hotspots
A property expert has bullishly claimed that property hotspots are a “complete myth” that almost guarantees buyers will pay top dollar, and has instead urged buyers to seek out the “warm spots...Read more
Property
Top 10 inland rural towns to invest in
While it’s become apparent that regional housing markets have stolen the spotlight, having outpaced their capital city counterparts in 2020, new research has shown that inland rural towns have also ...Read more
Property
Where to buy under $300k
A positively geared property with high capital growth potential does not necessarily need to carry an astronomical price tag, an expert has said, with new market entrants able to land a home for under...Read more
Property
‘Great Australian dream’ of owning a home lives on amid COVID
Most Australian investors and home buyers were largely undeterred by the events of 2020, remaining eager to push through with their investment plans, a new survey has found. ...Read more
Property
6 key indicators to heed when buying your next investment property
Self-proclaimed data nerds Arjun Paliwal and Kent Lardner have shared their six must-know indicators when researching your next investment property. ...Read more
Property
RBA admits low interest rates will boost cost of housing
The RBA has confirmed that it is closely monitoring the impact of low interest rates on the level of housing loan commitments and acknowledged the “inherent” risk of soaring asset prices in the ho...Read more
Property
How to determine the real value of a property
With various factors affecting market value and pricing, can one truly predict what buyers will pay for properties? ...Read more
Property
House prices tipped to soar 20% in 2 years: Westpac
House prices in Sydney are tipped to grow by 20 per cent over the next two years, and by 18 per cent in Melbourne, as a leading economist predicts strong economic growth following the rollout of the C...Read more
Property
5 tips to unearth the next property hotspots
A property expert has bullishly claimed that property hotspots are a “complete myth” that almost guarantees buyers will pay top dollar, and has instead urged buyers to seek out the “warm spots...Read more
Property
Top 10 inland rural towns to invest in
While it’s become apparent that regional housing markets have stolen the spotlight, having outpaced their capital city counterparts in 2020, new research has shown that inland rural towns have also ...Read more
Property
Where to buy under $300k
A positively geared property with high capital growth potential does not necessarily need to carry an astronomical price tag, an expert has said, with new market entrants able to land a home for under...Read more
Property
‘Great Australian dream’ of owning a home lives on amid COVID
Most Australian investors and home buyers were largely undeterred by the events of 2020, remaining eager to push through with their investment plans, a new survey has found. ...Read more
Property
6 key indicators to heed when buying your next investment property
Self-proclaimed data nerds Arjun Paliwal and Kent Lardner have shared their six must-know indicators when researching your next investment property. ...Read more
Property
RBA admits low interest rates will boost cost of housing
The RBA has confirmed that it is closely monitoring the impact of low interest rates on the level of housing loan commitments and acknowledged the “inherent” risk of soaring asset prices in the ho...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
