Here are a few interesting articles that came up during the week.
Paul Bennion from Depro said “While Brisbane has been an underperforming property market for several years, there is every indication that property prices in the city will boom during 2014”
I take a more conservative view as I don’t believe we have seen a “boom” anywhere to date and the market in some cities has simply been catching up on sub trend growth from prior years. However, prices in Brisbane are still below pre-GFC levels, while Sydney is about 10% above now, so there is a greater likelihood of better capital growth in the Queensland over the next few years. I agree with the article by John McGrath and his view : “I think Sydney will have a strong Autumn as the Spring momentum carries over to 2014, but I’m not expecting the same intensity of demand for the entire year. My guess is 5-10% growth in prices this year but certain market segments will, of course, perform better than others. “
The other comforting news for most property investors is that the banks are now looking to increase market share by increasing competition in the fixed rate mortgage market. This means that you can now make meaningful investments and lock in what I think are extremely cheap interest rates for a long time frame, and this can provide the long term cash flow certainty that will create genuine “peace of mind” for most investors.
And, lastly an outlook on the Aussie $ for 2014 ……….. most forecasts seem to be in the 82 – 85 range against the USD by year end.
|National property clock points to Brisbane boom|
|While Brisbane has been an underperforming property market for several years, there is every indication that property prices in the city will boom during 2014.|
|Major bank cuts fixed rates|
|As the battle for customers intensifies, a second major bank has announced a cut to its fixed rate on selected home loan products. More>>|
|Non-major slashes fixed rates|
|Following recent cuts to fixed rates by two major banks, a non-major has followed suit, slashing its fixed rates by up to 40 basis points. More>>|
|Looking ahead in 2014|
After a phenomenal spring season in Sydney last year, I’m expecting another good year for Sydney.
Richard Grace speaking on Bloomberg about CBA’s FX forecast changes