Property

While Australia’s real estate market continues to rise, in Japan the opposite is happening. Over there, an ageing population, stagnating wages and negative interest rates are being blamed for a savage slump in the volume of home sales. continue…

by David Buckland Posted in Property.

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We don’t believe anyone can be so precise about the market prices for any asset class. continue…

by Roger Montgomery Posted in Property.

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Another week, another set of entertaining quotes from the auction rooms as a fresh wave of investors bids over the reserve for a piece of Sydney real estate. Oh, yes, you gotta love asset bubbles. They produce quotes that, when told on the other side of the crash, seem so ridiculous they’re unbelievable. continue…

by Roger Montgomery Posted in Editor's Pick, Property.

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Australians are getting used to super-low interest rates, and eye-watering loan amounts, particularly for property purchases. Along the way, the household debt burden as a percentage of disposable income has ballooned out from 170% to 185% since 2008. This is nosebleed territory. Is it time to be concerned? We think so. continue…

by Roger Montgomery Posted in Economics, Editor's Pick, Property.

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Are you worried about housing affordability?  Anxious that your kids can’t even get onto the property ladder, never mind climb it?  Well, an oversupply of apartments, plus an increasing number of failed settlements, means all that is about to change.  Cheaper apartments are on the way. continue…

by Roger Montgomery Posted in Editor's Pick, Property.

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The RBA is not alone in voicing concerns about soaring house prices. Across the ditch, the Reserve Bank of New Zealand (RBNZ) has warned that a severe fall in house prices could cause major and long-lasting damage to households and the broader economy. continue…

by David Buckland Posted in Property.

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As mortgage interest rates in Australia have declined from more than 18 per cent in the late 1980s to just on 4 per cent today, house prices have become more expensive relative to incomes. continue…

by Roger Montgomery Posted in Editor's Pick, Property.

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After the frenzy comes the fall. With new apartments about to tip into oversupply, lower residential real estate prices could be on the horizon. And we’re not the only ones who think so.  New research by UBS points to an end to the strong price growth of recent years. continue…

by Roger Montgomery Posted in Property.

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With Auction Turnover declining (thanks no doubt to the election and the fact that the boom in property is over) it’s worth looking at whether there’s a link between the number as a leading indicator and other trends for example in hardware sales (people renovating their shiny new home) and electronic sales.

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by Roger Montgomery Posted in Property.

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Global returns and interest rates are so low that in Denmark borrowers are finding their mortgage balances are declining, even without making payments, because interest rates are negative. Elsewhere, high-quality companies are trading at eye-watering multiples. In private equity, too much money is chasing too few opportunities, and meanwhile investors are happy to buy property that is yielding barely more than bank interest despite the higher risk profile. continue…

by Roger Montgomery Posted in Insightful Insights, Property.

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