Adelaide Housing Market Update | December 2017

 

Hi everyone and Merry Merry to you all.

By now you have cleaned up most Christmas Day leftovers (and visitors) and are thinking about New Years resolutions…. maybe…

Most know I’m not a big fan of one- off resolutions but it’s always a start.

I’d rather say,
1.Make a decision
2.Set a plan
3.Take action
4.Complete

Write to me and we can tee up a chat on the best strategy for you personally going forward.

See attached the core logic market update for this quarter.
Ignore any talk of national dwelling values, it means nothing unless you owned a share of the whole lot and even then won’t help.

Investors creating wealth, make decisions based on their current ability and the strength phase of a particular market.

Brisbane is interesting but commentators don’t tell you what’s really going on, just comment on recent history.
Units are down (of course) and houses are up over 3% this past year.

If you track history you can understand the ‘now’ and buy ahead of the trend which is why Brisbane has current appeal for me and why I just bought in Brisbane myself.

The pre-curser for growth anywhere is the strength of the local economy. It’s why Sydney ran when it did, Melbourne followed and Gold Coast kicked 2 years ago ahead of Brisbane. (C’wealth games investment)

Brisbane jobs growth has improved and we see the Sydney and to some degree Melbourne profit takers selling off and buying up bargains in the Sunshine State thus starting to effect both markets.

This will increase over the next 2-3 years and push up Brisbane House prices accordingly.

The over supply of Units in Brisvegas and to some degree, the GC will suck some buyers in but smart investors will buy house and land for reliable growth and control.

Sydney values are bobbing up and down and will clean up overpriced suburbs before possibly rising again according to some expert friends of mine.

Some say Melbourne has finished its cycle but don’t believe them, Melbourne will stay strong in my opinion for a couple of years yet.

Adelaide is a fair market and likely to enjoy a steady growth phase. I notice one spruiker is promoting stock there but that’s more about the margins they can make on selling you property than being the BEST investment for you.

Perth ain’t going nowhere in a hurry but has levelled out, although high vacancies – so not smart for investors just yet.
Darwin is still dropping and like any regional area is unreliable for investors.

My old home town of Hobart is charging along but again, short term moment in the Sun doesn’t grow a portfolio to withstand all seasons.

With the tightening of the lending market slowing investors down we will see further pressure on the real issue of a national housing shortage thus holding up property value growth well into 2019-20 when we might eventually see a little lift in interest rates.

My favourite for growth and yield?
Brisbane, Brisbane, Brisbane.

If you have enough Brisbane property, Melbourne and still Newcastle are worthwhile having in your portfolio and still fair buying.

Be safe over the New Year holiday time and make sure you get your strategy session booked in with me. I will also send you a copy of my freshly released book
“How to jump into Property Investing- without being eaten by Sharks”

Happy New Year!

Mike

 

 

Mike Harvey
Principal Investment Consultant and Author
P – 
0400 098 755
E –  mike@onyourside.consulting