Property Marketing update July 2017 (1)

Property Market Update July 2017

The property market, you will probably know that we don’t often comment on residential property. Due to it being such a heterogeneous asset class (the opposite to homogenous) there are pockets performing differently everywhere. However, given that most of us will have some exposure, we have included some observations from SQM Research to update you on the broader market.

SQM Research - Property Marketing 2017

 

 

Source: SQM Research

 

Perth and Darwin prices are the only ones showing year on year falls. We recall only 2 years ago being offered apartments in booming Darwin to ‘sell’ to our clients. Our scepticism and avoidance of conflicts of interest kept us well away from that disaster.
Over the month of June, Sydney prices are showing a small decline, though year on year was strong. Melbourne too was a standout, with even bigger gains than Sydney. Hobart off a low base showed strong gains as well.
While we are not local market experts in each suburb, we do caution that a lot of those rises have come from availability of credit, and ultra-low interest rates. With the APRA edict to limit interest only loans, the banks are taking the opportunity to re-price those loans to a much higher level. If they execute that well, then there will be extra profits for the banks, and not too much pain for residential investors. We hope!

 

 

As one of the founders of this Superfund Partners, we started with a vision of building a SMSF administration service that did all the things that I wished for during my years of outsourcing to other accountants. We set about with a clean sheet of paper and open minds to build a service to enable all SMSF trustees - whether they be independent thinkers who control every investment decision, or those who collaborate with a financial planner - to have access to a high quality service at a very reasonable price. I am so proud of the awesome team of professionals that we have created at Superfund Partners. Personally I have 25 years of experience providing advice. I hold a Diploma of Financial Markets, a Graduate Diploma of Financial Planning and I am recognised as an SMSF Specialist Advisor with the SMSF Association.