Housing Bubble – Protect Yourself by Investing Here
Is there an Australian housing bubble? A listener to my radio segment on 4HI Emerald has asked my opinion on recent media speculation of a housing bubble in Australia. The word ‘speculation’ is correct because that is all it is. Remember, ‘bad news sells.’
Last year, a foreign Economist who appeared to have a vested interest propagated this story.
What is the opinion of reputable economic forecasters about an Australian housing bubble?
Moody’s is one of the major credit rating agencies and in its time it has been overly pessimistic and caused its share of financial panic, but not this time.
They have predicted that the price of detached houses, nationally, will rise 5.6% this year. A national figure is the average of all Australian house prices with some up and some down.
I believe that a prediction of the future price of houses nationally is of little use to any investor.
Read more articles like this?
Visit the Property Investment Category on our blog.
Download your Free Residential Investment Checklist.
This is how I approach investing.
Firstly, to be risk adverse, I suggest only investing in cities with a population in excess of 1million, this leaves Melbourne, Sydney and Brisbane.
Secondly, I look at is where they are on the property clock (i.e. 12 o’clock is the top of the market and 6 o’clock is at the bottom).
Not inner city apartments, but detached houses in the Northern corridor between the Pine River and the Caboolture River.
The particular suburbs are North Lakes, which is almost finished, Stone Ridge and North Harbour. All these suburbs allow for direct access to Brisbane Airport, Gold Coast and Sunshine Coast.
There has been no sign of a slowdown in this area; demand continues to exceed supply and we have to buy land months before it is finished. They do not have land salesmen, I call them land allocators, as you need a good track record for them to even allocate you a block that could be 5 – 6 months from being registered.
Steve Taylor
Are you concerned about a housing bubble? To speak to Steve about your concerns and to find out more about property investment in Brisbane please contact our office to schedule a free, no obligation consultation and let’s discuss your options.
If you prefer to listen here is my radio interview on Emerald 4HI:
DISCLAIMER
Steve Taylor & Partners blog is opinion and not advice. Readers should seek their own professional advice on the subject being discussed. The figures stated in this article were accurate at the time of publication. For up to date figures, please contact our office.
Fill and Submit this form for your Free Residential Checklist.