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
Retirement communities: a pivotal element in meeting Australia's housing targets
The Retirement Living Council (RLC) has recommended that retirement communities should be considered a vital part in the Australian Government's initiative to fulfill the Housing Australia Future Fund ...Read more
Property
Australians adjust financial strategies amid changing property market dynamics
The 2023 calendar year saw Australian borrowers acquiring a total of $300.9 billion in new loans for property purchases, marking a 12.7% decrease from the previous year. Read more
Property
Split home loans unlocking doors for Aussie buyers
Australians are teaming up to dive into the real estate market and seize the advantages of home ownership, with the trend of split home loans surging as family and friends unite to buy properties ...Read more
Property
Real estate investment: Spotting high-growth potentials
Investing in real estate has long been a favoured approach for Australians looking to grow their wealth. Read more
Property
Granny flats become Aussie families' cost-effective solution to soaring living costs
As the cost of living skyrockets, a forward-thinking trend is sweeping across Australia – granny flats are becoming a favoured living arrangement for older Aussies seeking comfort and proximity to ...Read more
Property
Homebuyers grapple with extended savings period amid affordability crisis
Gone are the days when an Australian dream home seemed just within reach. The path to homeownership in Australia has extended by at least two arduous years, as revealed by the latest insights from ...Read more
Property
Hybrid development unlocks new potential for NDIS housing in metro hotspots
In a ground-breaking strategy aimed at addressing the stark imbalance between the location of Specialist Disability Accommodation (SDA) developments and the actual areas of demand, Aligned Disability ...Read more
Property
Property prices boosted by housing policies: RBA
The central bank has outlined the “pervasive” impact that policy has on property. Read more
Property
Retirement communities: a pivotal element in meeting Australia's housing targets
The Retirement Living Council (RLC) has recommended that retirement communities should be considered a vital part in the Australian Government's initiative to fulfill the Housing Australia Future Fund ...Read more
Property
Australians adjust financial strategies amid changing property market dynamics
The 2023 calendar year saw Australian borrowers acquiring a total of $300.9 billion in new loans for property purchases, marking a 12.7% decrease from the previous year. Read more
Property
Split home loans unlocking doors for Aussie buyers
Australians are teaming up to dive into the real estate market and seize the advantages of home ownership, with the trend of split home loans surging as family and friends unite to buy properties ...Read more
Property
Real estate investment: Spotting high-growth potentials
Investing in real estate has long been a favoured approach for Australians looking to grow their wealth. Read more
Property
Granny flats become Aussie families' cost-effective solution to soaring living costs
As the cost of living skyrockets, a forward-thinking trend is sweeping across Australia – granny flats are becoming a favoured living arrangement for older Aussies seeking comfort and proximity to ...Read more
Property
Homebuyers grapple with extended savings period amid affordability crisis
Gone are the days when an Australian dream home seemed just within reach. The path to homeownership in Australia has extended by at least two arduous years, as revealed by the latest insights from ...Read more
Property
Hybrid development unlocks new potential for NDIS housing in metro hotspots
In a ground-breaking strategy aimed at addressing the stark imbalance between the location of Specialist Disability Accommodation (SDA) developments and the actual areas of demand, Aligned Disability ...Read more
Property
Property prices boosted by housing policies: RBA
The central bank has outlined the “pervasive” impact that policy has on property. Read more