propertyboom 650

 

Is this the biggest property boom in history?  The roaring 20’s.

The cat’s out of the bag as key markets are reporting 30 year records on monthly growth trending as high as 30% p.a.

This is going to continue and even build as stock depletes.

The long awaited reserve bank governor’s speech on the 26th November has been interpreted by economists to mean 3 things;

1. Interest rates are going to be this low for at least 2 years. To me that’s good guidance for us all to plan and move.

2. They forecast quantitative easing sometime in the next 12 months. For that to occur the cash rate needs to be 0.25%. That means two more rate drops by the RBA in the next 12 months, one early 2020 and one second half 2020. The borrowing rate could be as low as 2.25%-2.5%. Historical.

3. They are not worried about housing prices today.

Property prices will jump at least 20% by 2021 and borrowing costs will continue to drop. You should be including this probability in your strategies.

Here’s the catch; if this happens APRA could/will tighten conditions to investors again. Remember; 7% serviceability, limit on “Interest Only” loans etc. At best you could have a 3 month window. And that’s not 3 months to think about it, that’s to buy and settle. By April we could be back to the dark days of No Borrowing Capacity.

A word on SEQ agents.
SEQ agents might be the worst in the world. They are not as restricted and controlled like Melbourne and Sydney agents who can and often do get fined for incorrect pricing to vendors.

Data on auction results in Brisbane show prices are 10%-20% above reserve, that tells you how behind the agents are.  This shouldn’t be a concern to you as you shouldn’t be thinking of selling but it does mean that early 2020 you will see valuations on your properties kick up. 

Use the equity whilst you can to buy cashflow positive property. This is a gift that will not last. 

Currently I’m doing strategy sessions with Custodian’s every day to take advantage of this arbitrage. If you would like to lock one in, email vip@custodianvip.com with your preferred dates and times.

 

21 year special edition magazine

I’m really proud to launch our 21 year special edition magazine. There are only 2,107 Australians who own 10 or more properties. There is no other group like Custodian that would have so many in that bracket. That’s the top .008% of all Australians; similarly if you have 6 or more, as many of our clients do, you are indeed in the top 0.08%.

That’s what makes us different. I see so many Custodians now engaging their kids. That’s the true legacy. Please enjoy reading our 21 year magazine that will be mailed to you shortly or if you can’t wait and want the digital version, update your address here and you will receive a copy by email (and mail). http://www2.custodian.com.au/l/49732/2019-11-03/g5rkh6