Starting the week off positive with this piece from Switzer, boldly announcing that the next property high is in the works. To be sure this is not a new research paper, but some very convincing arguments from a highly experienced property property professional: Stop the press: Property prices set to rise
To summarise, the main arguments are:
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APRA has already relaxed lending controls
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An interest rate rise is highly unlikely
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We are almost approaching the same percentage drop as the last 2 downturns
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The announcement that investors won’t be able to negative gear from 1 January 2020
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Discounts to capital gains
It concludes
“Buy an investment property on 31 December 2019 and assuming things go to plan, investors paying tax at the highest marginal rate will be roughly 18% better off than if they buy the same property on 1 January 2020.
This is why I think many investors will look very closely at the property market in 2019. And while 2019 could be okay, if I am right, there could be a bit of a cliff in early 2020. As always, time will tell.”
Clearance rates were also slightly up this week: Auction clearance rates are inching higher, but home prices are still going backwards
In Melbourne, the message is, buy now to avoid disappointment in 6 months time: Melbourne tenants’ big chance to break into property market
These somewhat positive pieces of news were counterbalanced by the below:
New reports from IMF on the severity of the downturn: ‘Delicate’: IMF warns on property slide
Chinese investment lowest in 10 years: Chinese investment into Australia plunges by nearly $5b in 2018
Mortgage stress is in the headlines again: We’ve never seen it as bad as it is’: Researchers warn of rising mortgage stress
In other essential news:
Purplebricks vows to stay course after analysts warn of Aussie exit
Hobart no longer Australia’s most affordable capital city for property as prices continue to boom
Are you interested in investing in Canberra? Take a look at our guide here.
Have a great week everyone!
