Housing, page-53

  1. 13,386 Posts.
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    Reserve bank has an ACE up its sleeve as revealed yesterday - a rate cut in first quarter if housing decline spreads to rest of the economy. Might need a few rate cuts though to turn sentiment imo.

    As long as rent yields stay up there may be a valuation investors find attractive and if you want to negative gear an existing property and keep the 50% capital gain discount you need to buy before/if labor wins the fed election in 2019. Consult your accountant prior as i may be wrong.

    Plenty of large funds have been set up in the past year to invest in property for the yield , they have billions to invest and are watching the falls waiting to pounce on bargains.

    It looks like if you can get over 5% from rental in a low inflation low wage rise environment you may still do ok . As for future capital gain it may happen depending if there is more demand in a low supply environment but considering high rise developments can now be built all over the main city's the situation of supply will always be able to meet demand imo.

    If you own property where these high rise towers will go up ( close to rail / shops / main roads with existing towers) you should do ok.

    The days of all residential property doubling every 7 years are over imo. There are billions in new super money every year looking for yield and the shift from ownership to rental over the past few years means they want a chunk of this existing and new market.
    Last edited by malmanu: 08/12/18
 
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