I don’t see Sydney property crashing anytime soon, for the following reasons: 1. Cheap credit – we have the lowest interest rates ever and don’t look like going up in the foreseeable future. 2. Limited supply – investors are over-represented in the market from their usual 30% (Owner Occupiers being the other 70%) means they […]
Winter 2016, just passed has seen: • A softening rental market • A severe shortage of quality stock • Rising sales prices In relation to a softening rental market, some of the reason can be explained by the number of investors in the market buying properties to rent out. Normally investors are 30% of the […]
We all know the media has been calling the end of the Sydney boom for some time and even falling prices BUT this does not accord fully with what we are seeing on the ground when we are out buying property for clients. It is true that in the December quarter of last year (2015) […]
Which Sydney market? There is no ONE Sydney market, there are many. Some areas will fall back 5% I’m almost certain. I’m also reasonably certain some parts of Sydney will grow by 7, 8, 9 or 10% or more in this year 2016. There are many reading this that only have experience of a flat […]
Government response to the Financial System Inquiry (FSI). It’s been almost 1 year since the FSI published its final report. Now the government has made its decision on 44 recommendations that will (and has been, with the banks taking an early lead) reshaping the Australian mortgage market. The government accepted all but 1 of the […]
In a heated market there is plenty of opportunity to buy well if you can find the right property and buy it fast. It’s all about numbers. Some buyers think that they are getting access to absolutely everything. After all, they say, “I’m getting alerts sent to my email”. Turning up on a Saturday with […]
Few terms in personal finance are as important, or used as frequently, as “risk.” Nevertheless, few terms are as imprecisely defined. Almost universally, when financial advisors or the media talk about investment risk, their focus is on the historical price volatility of the asset or investment under discussion.
The Rule of 72 is a great mental math shortcut to estimate the effect of any growth rate, from quick financial calculations to population estimates.
It’s the “rolling snowball” effect. Put simply, compounding pays you earnings on your reinvested earnings. The longer you leave your money at work for you, the more exciting the numbers get.