Tracey Chandler - Buyers Agent

Your Exclusive Buyers Agent -

Specialising in Sydney's Eastern Suburbs 

and Lower North Shore

0416 100 839

tracey@tcba.com.au

  • Home
  • Why use Tracey?
  • How It Works
    • The Process
    • FAQ
  • Buyers
    • Buying a home
    • Buying an Investment Property
    • Overseas Buyers
  • Services
    • Full Property Search
    • Evaluate and Negotiate only
    • Auction Bidder
    • FEES
  • Testimonials
    • Video – Past Clients
    • Video – Real Estate Agents
    • Written Testimonials
  • News
  • About Tracey
  • Contact
  •   0416 100 839

October 28, 2014

What is Keeping Property Prices High?

October 28, 2014
share
share
tweet
Sydney property market

In an article for the website Property Update, Michael Yardney talks about 7 things that have kept property prices high in Australia.

Here are the 7 points:

  1. Yardney feels that negative gearing, enjoyed by 1.3 million people, has overheated the market.
  2. The family home is exempted from capital gains tax and this accounts for no less than $14 billion annually.
  3. Tax structure favours the rich investors.
  4. Record-low interest rates.
  5. Decent purchasing power- triggered by a faster rate of growth in wages compared to growth in price of goods and services.
  6. Rush for inner city living
  7. Demand outstripping supply

You can read the original article here.

Negative gearing

There is no denying that these are some of the major causes for the rise in property prices (and why the prices are not coming down). However, I feel we have been too harsh on gearing. I remember one of my friends calling it an “occupational hazard of the property market” and an unavoidable by-product of the wave that wanted to invigorate new housing construction.

To me, negative gearing will always remain a cushion for the investor ilk; after all, neither capital growth nor a high rental yield is guaranteed. To some extent, the tax benefits give investors much needed peace of mind.

Demand-supply equation

Demand has been outstripping supply for a long time now. This might change though now that the construction industry is back on its legs and skilled overseas migration may give a shot in the arm to the labour industry, too.

Related posts:

  1. Reasons Why Property Prices Won’t Fall in a Hurry
  2. Why Property Prices Are Higher Than 3 Decades Ago
  3. Cash Flow Versus Capital Growth
  4. Real Estate Supply Not Keeping Pace with Demand

Tagged: property investing

Get Your Dream Property Sooner

This field is for validation purposes and should be left unchanged.

Most Popular Articles

  • auction tips Pre-Auction Tips: 9 Things To Do BEFORE Auction Day under Features
  • hiring a buyers agent 10 Important Questions to Ask a Buyers Agent Before You Hire Them under Features
  • property investment quotes 7 of the Best Property Investment Quotes of all Time under Features, News
  • two bedroom apartment in Sydney Here’s Why it’s Better to Buy a Two-Bedroom Apartment in Sydney under News
  • finding a dream home in Sydney How to find off-market property in Sydney (before anyone else!) under Features
  • How To Avoid Emotional Attachment To Property under Features

Recent Articles

  • 7 Tips for Buying a Home in Sydney’s Eastern Suburbs

    7 Tips for Buying a Home in Sydney’s Eastern Suburbs

  • How To Avoid Emotional Attachment To Property

    How To Avoid Emotional Attachment To Property

  • Why Are So Many Sydney Homes Sold Off-Market?

    Why Are So Many Sydney Homes Sold Off-Market?

  • Should you engage a buyer’s agent for an auction?

    Should you engage a buyer’s agent for an auction?

Topics

buying property during COVID-19 financial freedom first home buyers forecasts home inspection home owners home prices home renovation home valuation how to buy a home interest rates lifestyle mortgages overseas investors property auctions property investing property investment property negotiation property valuation real estate real estate agents real estate industry sydney eastern suburbs sydney property market taxation

Feedback from Clients

Areas Served: Eastern Suburbs | Lower North Shore | Inner West

Copyright © 2025 by Tracey Chandler - Buyer's Agent in Sydney. All Rights Reserved.

339 Oxford Street, Paddington NSW 2021, Ph: 0416 100 839

recommended buyers agent award

WINNER

"NSW Highly Recommended Buyers Agent Award"

sydney real estate logos

Privacy Policy | Terms & Conditions | Disclaimer

Connect with us on:

google reviews
4.9 ★★★★★
Based on 60 reviews
google reviews
4.9 ★★★★★
Based on 60 reviews