Once again in the property market, the commentators and data are at odds. Recent media stories claim rent is likely to skyrocket in Australia due to the decline in housing prices in Sydney and Melbourne. With fewer houses on the market, fewer new homebuyers, and fewer people looking to downsize or upsize, there is more of an appetite for renting.
There is logic behind this commentary but there still remains a good number of houses on the market. At the same time, in Melbourne, we are seeing astronomical pricing on some inner suburb rental listings, for small spaces that do not have proper amenities.
What does this mean? Our opinion is skyrocketing is a dramatic term for what to expect in the near future, but we have to expect rent pricing to increase at a higher rate, but not at more than 2-3% in the long term. Listen in for more of our discussion on the topic now.
This Week’s Investor Exchange Round Table Covered:
- The Coalition Government quelled concerns that it will ban property investment via SMSFs. There was some concern that investment via SMSF may cause systemic risk to financial stability, but the statistics show the risk is not significant enough to ban the practice. However, finding a loan opportunity is likely to be more difficult. Tune in now for more. (15:36)
- The Crane Index is showing that Melbourne construction continues to surge, while Sydney is declining slightly. Is the Melbourne infrastructure surging or are we growing at a slower rate? Listen in for more information on construction across the country. (20:43)
- Some financial suggestions to live by: “Don’t give up what you want most for what you want now”. Tune in for Louis’ advice on how to weigh your long term financial goals against short term desires. (30:00)
You Cannot Be Serious:
OZ Lotto had three winners in the past week, two of which were the same person! One man who buys tickets with the same numbers each time. Not realising he already bought a ticket with his usual lucky numbers, he bought a second, and ended up winning the lottery twice!
One bride wanting to calculate family contributions to her wedding asked her mother-in-law for her financial statements! Is this fair and equitable or greedy? We’ll let you decide!
Elsewhere, a mother recently made a contribution to her son’s wedding, and then found out her son had a vasectomy prior to the wedding. Once she found out, she asked for her wedding contribution back!
Write in to get your investment and wealth management questions answered by Joel, Brett and Louis.
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