Baum says commercial real estate is cheap because, when you take the yield available on bonds compared to commercial property, there’s a very healthy margin between them.
It’s time Aussie investors take the leap, ditching the bricks and mortar and paper trades for the shiny gold stuff.
Its likely Australian property growth, as a whole, will be dragged down. However, it doesn’t mean you can’t find great investment opportunities.
The Aussie property market is hugely overvalued. Households are taking on incredible amounts of debt to pay for properties that are on the verge of a massive price collapse.
Continued retail rate increases will be calamitous for the Aussie property market and for anyone loading up on cheap debt now .
Stevens is negating the ‘property bubble’ mania. The misguided fear of property prices propped up by low interest rates and lax lending standards.
Imagine another 1% worth of RBA rate cuts. Sounds good in theory for your mortgage… unless the banks don’t pass it on at all.
So if the RBA wants to hold back the ‘hot’ property market, they should just hike rates tomorrow, right? It’s not as simple as this. There are many factors that go into property prices.
When an economy the size of China grows, creates opportunities or makes mistakes, they will be felt by those smaller economies close to it, like Australia.
Australian apartments could soon experience a rapid drop in prices. But not just any apartment. Off-the-plan apartments seem to be in for the worse of it.