Investing in Sydney and the Nitty-Gritty of Negative Gearing

by John Edwards
Founder of Residex Pty Ltd and Consultant to Onthehouse.com.au.

We have often spoken about the issue of a two speed economy. In the past few years, we were referring to the significant economic activity in the resource sates compared to sluggish performance in the non-resource states. Today however, there is a deeper divide developing between the two – not in general economic activities – but in the housing markets.

In Table 1, ‘Monthly Summary’ we provide the growth rates for our markets as at the end of October 2014. This table clearly shows the very strong growth in Sydney and the significant price differences between the markets.

Continue reading »

 

Australia’s So-Called ‘House Price Bubble’

by John Edwards

Founder of Residex Pty Ltd and Consultant to Onthehouse.com.au.

The media is rife with talk of a housing price bubble – particularly in Sydney. Are these reports correct? In short, probably not.

Are we going to see media stories about people getting into trouble with home buying? Probably, yes.

Before I explain, let’s look at the August statistics, which reveal interesting information about Sydney and Melbourne.

Continue reading »

 

Growth lower than expected in May

by John Edwards

Founder of Residex Pty Ltd and Consultant to Onthehouse.com.au.

Table 1 presents the Australian-wide outcome for May 2014.

Table 1

Capital City Property Market Update May 2014
Continue reading »

 

Sydney property approaching boom mentality

by John Edwards

Founder of Residex Pty Ltd and Consultant to Onthehouse.com.au.

The much dreaded Federal Budget has been presented and from a housing market perspective it is of little consequence. There was nothing that directly, or for that matter indirectly, impacted on property prices. However, the reduction in the corporate tax rate to 28.5 per cent from July 2015 adds a pressure to consider investing under a corporate structure where an investment property is not negatively geared. This is particularly so where the investment is going to be held for a considerable period. The difference between the discounted (50 per cent) capital gains tax (CGT) personal marginal rate and the corporate tax rate is now minimal and over time the benefit of the lower corporate tax rate on income could relatively quickly absorb the positive CGT discount benefit.

Continue reading »

 

Two ‘brave’ Budget decisions that would benefit tomorrow’s generation

by John Edwards

Founder of Residex Pty Ltd and Consultant to Onthehouse.com.au.

Our markets are behaving as one would expect in a situation where:

  • The cost of a home has risen to a level where the number of first home buyers capable of being part of the current growth cycle is limited.
  • The RBA is letting all who want to listen know that there will probably be no further interest rate cuts and that all should expect rates to rise in the next 12 months.
  • Consumer sentiment is not unexpectedly strong given the various warnings about a rising unemployment level.
  • Very significant “jawboning” by our Treasurer that we all have to take pain to allow our Federal Budget to return to surplus and government debt levels to be returned to more acceptable levels.

Continue reading »

 

Sydney Market Reaches its Peak

by John Edwards
Founder of Residex Pty Ltd and Consultant to Onthehouse.com.au.

We waited with anxious anticipation for consumer sentiment to improve last year as housing markets should have been performing well in early 2013, but this was not the case. Interest rates were low, which has historically caused property growth spurts. Gradually, sentiment improved and property markets started to show strong growth moving into the last quarter of 2013.

However, recent data indicates that Sydney, the lead indicator market, is starting to look soft and as though it has peaked (see Graph 1).

Continue reading »

 

Sydney and Melbourne moving to a renter’s market

by John Edwards
Founder of Residex Pty Ltd and Consultant to Onthehouse.com.au.

Australian dwellings produced a satisfactory result for the year ending December 2013, indicating that the correction phase in the market has come to an end and growth is again presenting.

Continue reading »

 

Positive news for Australian property

by John Edwards
Founder of Residex Pty Ltd and Consultant to Onthehouse.com.au.

Tis the season to be jolly’ with this year’s Christmas bringing good news to our property market!

Continue reading »

 

Residex founder, John Edwards appeared on Switzer TV and said we’re not in a housing bubble and that we shouldn’t expect one either. For his views on this and more, see the interview here… Continue reading »

 

Test your property valuation skills with Fantasy Real Estate

Introducing Fantasy Real Estate (FRE), where you can test your skills at valuing a home and make some money along the way.

Continue reading »

© 2012 Residex Blog Suffusion theme by Sayontan Sinha