Market Performance – Kevin's Comment 10th May

[flex_video widescreen=”true” vimeo=”true”] [/flex_video]
We are almost half way through 2015, and it appears the thoughts on market performance published earlier in the year by Tim Lawless from Corelogic RP Data, are proving to be correct.
 

Transcript:

We are almost half way through 2015, and it appears the thoughts on market performance published earlier in the year by Tim Lawless from Corelogic RP Data, are proving to be correct.
In January Lawless said Australian property investors could expect to enjoy an upswing in values over the coming year and that the market was moving into 2015 with some substantial momentum after dwelling values across the combined capital cities rose by around eight and a half per cent in the full year of 2014. Lawless named the big winners as being Brisbane, Adelaide and Hobart.
Fast forward to today and market conditions have shown a big improvement in Brisbane and on the Gold Coast according to Steve Worrard from Raine & Horne who says, the smart money is starting to chase further afield for the prospects of capital growth and decent yields in regional centres like Toowoomba, where the recent launch of the Brisbane West Wellcamp Airport will have a dramatic impact on the economy there.
To other stories now and any changes, or even hints of change, to Self Managed Super Fund rules, draws stern criticism. Ken Raiss of Chan & Naylor says anything that restricts an investor’s ability to leverage debt in Self Managed Superannuation Funds is “unhelpful and self-defeating. He went on to say “it ignores Australia’s future retirement needs and reflects the ongoing hypocrisy of the broader financial services sector.” Other commentators are on record as saying that anything that becomes a dis-incentive to investors will impact the supply of a growing need for more rental accommodation which will result in increased rents.
Finally, some say you can’t put a price on a great education, but property experts beg to differ. Raine & Horne have released opinion that parents are paying up to a 5% premium for properties within close proximity of great schools. Angus Raine says education is making some locations pretty much recession proof. Brisbane agent Russell Matthews of Matthews Real Estate at Annerley agrees, saying buyers in his area are honing in on one local school offering a specialist curriculum and these buyers will pay the premium.

One thought on “Market Performance – Kevin's Comment 10th May

Leave a Reply