In an article for the website Your Investment Property, Alastair Lynn talks about why Sydney and Melbourne are expected to continue their winning momentum in 2015. Sydney is expected to show 10% growth and Melbourne 7% growth in the present year.
Falling interest rates will make entry into the property market a lot more streamlined. There is always a beeline of price-sensitive buyers and for them decreased mortgage repayment implies lesser burden and a strong incentive to hit the property market.
You can read the original article here.
Apart from increased volatility, 2015 should not offer any tremor to the property investors. Growth can never be expected to match the pace it has marched with in the last couple of years and things are only likely to be a lot saner. Yet investors will feel relaxed and easy coming into 2015.
An article on the website The Adviser talks about banks slashing one, two, and three-year fixed rates; thus keeping in tune with the RBA’s cash rate cut (25 basis points). Suncorp Bank declared along the given line, even as it cited that its diversified profile allowed it to offer strong returns to its customers.
The reason why the negative gearing debate remains unsolved is because “capital growth or cash flow?” is a crux question which is actually very difficult to solve. In an article for the website Property Update, Michael Yardney adds further value to the subject.
The property market has seen more than its fair share of detractors. From being called a dead investment class in the early 90s to being declared an overheated market that cannot sustain- there has been a continuous wave of criticism. The good thing is that it has challenged and in fact, ridden the wave beautifully.
