We’ve finally hit Spring, and it’s not just the flowers that are blooming! Property prices have continued to rise, which has the market raising all the usual questions. Is real estate over-performing? Are investors about to get a wake-up call? How will first home-buyers afford a property?
It came as no surprise to many this month when the Business of International Settlements reported that our housing is the second most expensive in the world – behind Norway only -when all factors were considered. But here’s the thing... interest rates are still at historic lows and RP Data was able to confirm that housing sales rose 10.4% during the 2013/14 financial year - compared to 8.6% in the previous year.
In fact, according to a separate report, almost half the properties across Australia’s capital cities were selling above their listing prices in the same financial year! So not only are people buying more in an expensive market, but they are exceeding seller expectations.
So is this leading to a crisis?
Well, according to a board member of the RBA – No. His reason? Housing credit growth, high household debt and weak income growth would eventually tame this scorching market and stabilise prices. I don’t know about you, but I think that’s a pretty grim assessment for a solution, as far as our lifestyle and financial freedom is considered. How many people will have to suffer for our market to correct itself?
My view? Successful people will always find opportunity in the face of adversity and change. Our market will always fluctuate... it’s part of a natural cycle. In my opinion, we simply cannot expect prices to continue to double every 7-10 years anymore. I believe the days are gone where we can rely on passive investment strategies. Those who take a creative approach to this market, or any market, will have a good chance of coming out on top.
1. HUGE ANNOUNCEMENT – Last weekend in Melbourne more than 300 attendees walked through the door at our 2-Day Property Conference which means we successfully achieved one of our Top 5 Inspiring Goals…. more on that in my video below! How does it get any better than this?
2. After a great 6 months with us, Property Development Educator Dave Bradley will be retiring from our stage to focus more on his property developments, current students and family. We look forward to watching his career flourish in the coming years.
3. We welcomed leading Australian Property Analyst John Lindeman to our stage at our 2-Day Property Conferences in Sydney and Melbourne this month. He shared his dynamic and detailed secrets of the housing market and I’m confident our property investors & entrepreneurs would agree that he definitely knows his stuff!
4. I am excited to announce Celebrity TV Renovator Cherie Barber’s final exclusive tour in 2014 - which we have secured for October - before she jets off to start renovating for a major television network in the USA.
You may also want to read the blog entry we wrote earlier this month that shares some views on the ‘renovation epidemic’ that Australia appears to be in the midst of.
Thought You Might Be Interested...
If you are serious about your health , I think this event is a ‘not to miss’. Phillip Day – an international speaker and renowned health researcher – is travelling the country to share powerful insights health and food as we know it.
That’s all from me. Remember to check out our short content videos below from our resident experts… and I look forward to seeing you in person soon!
Get educated now,
P.S. You may also want to forward your September newsletter to a friend.
Morgan from Sydney attended my Ultimate Property Entrepreneur & Investors Conference earlier this month and posted this inspirational message on my page. I am humbled by your appreciation and truly hope your decision to chase your goals is an irrevocable one!
Health Wars - Phillip Day
We are told we have the brightest and best-trained doctors in the world looking after us. So why is Western healthcare now the third leading cause of death today?
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