What is the confidence level when investing in the residential property market as we move into 2014

Friday, 7th February 2014


We have just finished running our seminars in Sydney and Melbourne this week and one of the questions we were asked is ‘What makes you so confident about Australian residential property’. The answer is easy, since we have been measuring property against all other asset classes (shares, cash, bonds and commercial property), residential property has been the equal and in many cases a better investment choice especially against most other asset classes

This means in the long term residential property is one of the best performing asset classes. In the short term there are a number of things that are happening that support both the short and long term view regarding residential property. 

  • Interest rates are low. The Reserve Bank of Australia met earlier this week and again kept interest rates unchanged. This will keep borrowing power high.
  • Our economy is strong and performing well relative to the rest of the developed world and our nearest neighbours in South East Asia.
  • The world’s large economies are improving, particularly our major trading partners the USA and China
  • Our population is growing and Gen Yare working, paying taxes, creating households and will be looking to buy property.
  • There is strong demand for property from overseas investors and a growing demographic of baby boomers investing through their self managed super funds.

The conditions are always good for long term residential property investing, however these current conditions support our long term view. If you would like to know more about investing in Australian residential property or you would like to suggest a topic for us to write about then please contact  peter@investoproperty.com.au