So. I see lots of gloom and doom in the papers about the bottom falling out of the RE market, and there is talk of a notable drop in values. Regardless of politics, I hear that Labor plans to reduce the CGT discount, and eliminate negative gearing. Election probably first half of the year; at time of writing this, TAB is firmly predicting a Labor win (https://www.tab.com.au/sports/betting/Politics). It would seem that if there is a drop in values, the magnitude of any drop might well vary between states and regions.
Thoughts?
Hi OS,
It would seem that if there is a drop in values, the magnitude of any drop might well vary between states and regions.
It would have to, wouldn’t it? Truly there are multiple markets involved, and multiple factors all interacting. e.g. Sydney and Melbourne have had great growth, and have now dropped away some of that growth, while other cities have had little growth, and are growing still (albeit more slowly).
Then there are those “other factors” – world issues, federal issues (which might affect all markets to some extent), and also state and local factors (that might only affect some markets but not others). And I’m sure there are many other delineations between markets – any takers?
Benny
Further to that, OS, I just read a piece in my email from the Motley Fool – in essence it said something like “These are headlines you won’t see!” and went on to list how all news is about “today” – e.g. xyz share has plummeted 10%, (shock, horror) and quite ignoring the fact that over the previous two years, that same xyz share had grown 35%. But they don’t print THAT headline.
The same applies to current property news – e.g. Sydney homes have fallen 10% (but how much had they gained in the last 2 years???). By the way, I am guessing at the 10% figure for Sydney – its just an example really…..
So much news today is “noise” and we need to sift through it.
Benny
Victoria’s regional property markets to star in 2019
Victoria’s regional property markets to star in 2019Mornington Peninsula growth in 2019 supported by overseas (UK), interstate and local buyers
Bayside
Coastal markets 2019
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