Property slowdown to test Australia's love of real estate, says Merrill Lynch Read m

[muppet]

Property slowdown to test Australia's love of real estate, says Merrill Lynch

House prices continue to decelerate from what is likely to be the last
property price boom Australians will see for many years, says Bank of America
Merrill Lynch, adding investors may be second guessing the validity of negatively geared investments.

March data shows that median capital city prices rose just 0.2 per cent,
with annual growth decelerating to 6.6 per cent year-on-year.
These figures are down from a July 2015 peak of 11.6 per cent year-on-year
and 11.9 per cent in April 2014.

"A period of weaker price growth or outright modest declines is likely to
become entrenched over coming years," said Merrill Lynch in a note to clients.
"We'd expect that such a period could severely test Australians' long love affair with property investment."

Read more at

http://www.smh.com.au/business/the-economy/property-slowdown-to-test-australias-love-of-real-estate-says-merrill-lynch-20160410-go367o.html

[Damap]

annual growth decelerating

I cannot believe the lengths media will go to in trying to make a headline sound negative......

[Meehole]

I have been told just that by an offshore banker, he reckons NZ will go the same way as Oz with the housing and rates will rise in the next 12 months. My brother and sister in law purchased an apartment is good suburb of Melbourne off the plans with guaranteed rent for first 2 years even if no tenant. If tenant moves in and out in that 2 years then they won't pay the balance of the rent up to the 2 years. They have considered selling it but they won't get back their purchase price as there is a glut. The property doing the best for them financially is an investment home purchased in Portsea from their super and they rent it out on air b & b. Maybe they should look at doing that with the apartment??

[eri]

Research firm Digital Finance Analytics has warned that

one in five Australians could be in serious trouble if rates were to rise by just 50 basis points.

http://www.nzherald.co.nz/business/n...ectid=11817415

[Meehole]

Guess the offshore banker referred to in my post 12 months ago was right. The apartment in Melbourne is about to become vacant and my nephew and his partner (both students doing masters) are moving in in 2 weeks at a lesser rent and subsidised by his parents.

[Tan]

You can't classify Australia all together. It is so huge that one end is the opposite to the other! When WA thrived, over east declined - when over east thrived, WA declined. Then you have remote, mining, cities & in between. All spectrums of the property cycle are represented at any given time. (It is only an extra 1000km for me to fly to this mysterious 'over east' than to pop home from WA to NZ!)

[JBM]

https://au.finance.yahoo.com/news/13-suburbs-home-values-nosedived-30-per-cent-2018-030145928.html

Some pretty big falls over 2018 for some suburbs

[chook]

Maybe a good time to start buying in Perth, probably the best City in the world after 7 years of value declines?

[JBM]

Iron ore / Gold both at high sellings prices be great for many of the WA miners...cataylst to see floor under perth RE ??