Top 5 Influencers Towards Property Growth 2020

This is a must read if you own a property or plan to buy one

1) Inflation: Though we are in the lowest inflation rate in the last 17 years, Australia’s unemployment rate is at a stable level and the economy is ticking along well, even though both company profits and wages are down. #Inflation #HomeOwners #HomeBuyer
2) Buyers Mix: APRA's cap on annual investor credit growth at 10% has worked well to a point as rental returns have dropped. However, the property market, remains buoyant even after several years of high price growth in cities like Sydney and Melbourne. Total housing credit has been up this year (at least for owner-occupiers) and this usually means there are plenty of property buyers out and about and wanting to borrow money. #HomeLoan #Mortgage #Sydney #Melbourne #FirstHomeBuyer#FHOG #FirstHome
3) Supply – Demand: Affordable and desirable suburbs and accommodation type are always limited causing a high demand- low supply situation. One reason high demand for property is the relatively cheap cost of home loans in recent years. #InterestRate #CheapLoan
4) Affordability – Wages- Rates: RBA’s concerns about low inflation, boosted by rate cuts are part of a broader view to ward off inflationary pressure. The housing market boom is a by-product of this.#RealEstate #PropertyMarket
5) Historical and Projected Capital Growth: Over the past 20 years, general property inflation has been low and stable, consistent with the inflation target. However the property price growth in the recent times, that it has outstripped the rate of inflation in other parts of the economy, including inflation in the cost of new dwellings.