Past Property Success Doesn’t Guarantee Future Growth
Description
Past success in property does not guarantee future results.
The biggest bias I see is assuming what worked over the last 30 years will just keep working.
Australian property has been driven by a few key factors. Households went from one income to two. Rates fell to historic lows. Banks lent more and more. If you graph average house prices against average loan sizes, those two lines move in lockstep.
Can those same factors drive prices again? Can we go from two incomes to three? Will rates fall back to historic lows? Can Australians take on even more debt than they already have?
There is a ceiling. And I think we are getting close to it.
General advice only. Please consider your personal circumstances or speak with us before acting.
Robert Goudie is an Authorised Representative (No. 235974) of Consortium Private Wealth Pty Ltd (AFS Licence 495401)
The information provided in this article is general in nature only and does not constitute personal financial advice.