July 25, 2022

#163: Predictions for 2022 revisited - Which predictions are on track, where we went wrong, revised expectations & forecasts. Half yearly re

53 minutes

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: Market update 1. Pick your advisors wisely! Cate shares a recent experience of working as a Buyer's Advocate for a friend. The moral of the story? When you're working with a professional, if you know their work and you trust them, you can get a great outcome, because speed and swift decision making is everything. 2. How will the unemployment rate impact rate rises? The latest figures from the ABS show that unemployment has dropped to 3.5%. This has caused quite the stir, with economists now expecting rates to rise by 0.50% next month, maybe even 0.75%. David cautions that the RBA shouldn't move too hard too fast on rate increases, but it is looking increasingly unlikely that the RBA will move by 25 basis points only. It will be interesting to see what actually occurs next week... 3. Rents playing catch up Increasing rents have been the talk of the town, with rents recently going up significantly. Pete shares some interesting data which highlights that in the last 10 years, rents have not kept up with inflation despite the dramatic increases. How will this inform future policy decisions from the Minister for Housing? We will have to wait and see. Updated predictions for 2022 1. A look in the rear view mirror at the first half of 2022 The trio revisit the predictions they made at the beginning of the year. Were they on the money or did they miss the mark? Tune in to find out! 2. What will the property market do in 2022? What capital growth rates can we expect around the nation this year? The trio review their predictions and lay their predictions down for the rest of 2022. 3. Which capital cities will be the top performers? The trio look into the crystal ball, pour over the data and explain which capitals are expected to top the charts this year. But remember, property is not an asset class that lends itself to short-term investing. The important thing is to plan and strategise for the long-term. 4. How will regional locations fare? Regional locations have again outperformed capital cities in the first half of 2022. But will that continue? 5. Will investors jump back into the market Investors have shown strong increases in activity over 2021 but only a slight increase in the first 5 months of 2022. Is this trend likely to continue? The trio share their insights. 6. Will APRA intervene in the property market? The RBA has done all the heavy lifting with increasing interest rates, meaning that APRA hasn't had to intervene to temper the market. But will the government search for ways to intervene to keep rental prices lower and tempt first home buyers back into the market? 7. Developers and building Residential construction costs continue to climb and builders are flat out with projects, exacerbated by labour shortages, materials shortage and supply chain delays. How long will costs continue to remain high and what impact will this have on the property market? 8. The outlook for interest rates? The trio share their predictions for future cash rate rises by the RBA and at what point they each think will the rate rises end. 9. Rental market forecasts Rents have continued to climb and vacancy rates have tightened. The trio discuss the outlook for rental markets for the rest of 2022. 10. Sales volumes After a record...

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