The shift in demography is impacting the Australian property market like never before and it is worth studying the macroeconomic patterns pertaining to population, wealth of the nation, and age before making any sort of real estate decision. An article on the ‘Before It’s News’ website sheds light on few recent real estate trends.
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Baby boomer housing bust calls for quick action
Australia is closer to the US than any other country when it comes to the property market; its trends and its rising and falling sentiments. Having said this, Australia is faring a lot better because it has got its economic foundation firmly in place. Nicole Gurran for the BRW writes that the baby boomer housing bust which the US is facing might become the story of Australia too, albeit with a few marked differences.
5 Golden Tips from Warren Buffet to Property Investors
Berkshire Hathaway Inc. became a brand synonymous with investing excellence and in becoming so; it brought the unique skills of Warren Buffet to light. This century’s most hailed investor is not only known for his witty narrations and quotes but for his brilliant analysis of the market and unbelievably precise investments as well. Pete Wargent for the Property Update talks about five strategies that Buffet has followed over the years. All these strategies can help you enrich your property investment portfolio.
Superannuation reforms geared towards more property investment
The Federal budget did not read out any changes in Negative Gearing or Capital Gains tax, did not announce cuts for the housing sectors, proposed to help the baby boomers downsize and largely left Superannuation untouched. Phil Thomson for The Canberra Times says that the Federal budget has proposed (only proposed) a lot on the Superannuation reforms front; however anything may only be implemented once the legislation become full-fledged laws.
Sydney and Melbourne report very high auction clearance rates
What can possibly match this great combination- high auction listings and equally high auction clearance rates? Not many things! Nicola Trotman for the Property Observer reports that 1,541 auctions are slated for this week. Though a trifle lower than the figure for the last week, this number is just as phenomenal. Compare it with 1,300 auctions recorded over the same week last year in Australia and you will get the difference.
The auction clearance rate across the capital cities was as high as 69.2% last week, a jump of 3.6% from the figures of the preceding week. The clearance rate was only 53.5% for the same period last year.
Melbourne posted a very tidy clearance rate of 72.7% a week ago while Sydney’s figure of 75.3% was simply exhilarating. Both the top capital cities have done commendably in comparison to last year.
You can read the full report here.
Federal budget does not announce any changes in Negative Gearing
The coalition is not looking to make any changes to Negative Gearing declared Alex Hawke, a Liberal Backbencher, while being questioned on the coalition’s earlier promise of scrapping it altogether. An article on Realestate.com clarified that the government claims any circulated newspaper reports to be completely baseless. The Federal Treasury dittoed the statement.
