May 30, 2022

#155: Plotting Australian property market movements from 1970 to now - the impacts of recessions, inflation, financial deregulation, populat

41 minutes

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaI https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: Market update Market update 1. Quality properties garner competition despite market cycles Cate shares her experience of bidding on election weekend, which as expected, was quieter than usual as prospective buyers took to the polls and enjoyed a democracy sausage. However, one property in particular which ticked many boxes saw a very competitive auction, which reinforces the basic principle that quality properties will garner interest and competition whether the market is rising or experiencing a lull. 2. The results of US cash rate increases Dave shares some surprising data from the US which has gone through 14 cycles of cash rate increases and 11 recessions. Stay tuned for next week's episode, for a comparison with Australia's history of rate increases and how they have impacted the economy. 3. Government shared equity scheme Pete encourages our listeners, whether first time buyers or parents with adult kids, to check out the government's shared equity scheme which is set to be introduced on the 1st of July this year. There will be income caps and property value limits, but for anyone looking to get a foot in the property door, this could be a good initiative. Plotting Australian property market movements 1. A look at Australia's price spikes Since the 1950's, Australia has seen 3 periods of stellar growth. The most mind-boggling being 1950, where prices grew 111%! What were the drivers of growth and how have these forces changed over time? 2. Disrupting the property market Fast-forward to today's drivers of capital growth, it seems that proximity to the city will continue to be a key factor for desirability, competition and property price growth. With more households sustained by double incomes, convenience and being close to amenities has been more important than ever. The trio discuss what could shake up the status quo. 3. Diving into Australia's recessions The trio discuss the recessions from 1970's to now, what caused them, what were interest rates doing at this time and how these features compare with our nation's situation today. 4. How financial deregulation has impacted the property market The trio look back to 1980's which saw an upheaval in banking regulation and how this impacted the economy and property market. After all, Australia held the mantel for the country with the longest period of time without a recession. 5. How has population growth impacted capital city prices? Does population growth have a direct correlation to capital growth? The trio dive into the data to answer this question. 6. How have capital city prices on the ladder changed over time and which cities displayed more volatility than others? The trio discuss the movements of capital cities from 1970 and how each have performed. Interestingly, Perth has been near the top of the ladder a few times, highlighting the power of employment, natural resources and availability of high-paying jobs. Check out our show notes for a great infographic that shows the growth of capital cities in inflation adjusted dollars. 7. Why property is a great asset class to invest in The trio discuss the history of property prices in relation to inflation and why investing in property is a solid move and a great hedge agains...

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