Property prices have always been a popular topic of conversation, but the subject of housing affordability has become more contentious as we approach the May budget announcement.

To buy a home now or wait? It’s a question many people are asking themselves as property prices continue to grow across Australia.

Property prices have always been a popular topic of conversation, but the subject of housing affordability has become more contentious as we approach the May budget announcement.

Especially following reports from The Sydney Morning Herald that the Parliamentary Budget Office has costed a proposal that would kill stamp duty and replace it with land tax, saving home buyers up to $40,000 in Sydney and $55,000 in Melbourne.

While everyone is looking to the government for a housing affordability solution, it’s a good idea to do some research of your own and look at past housing price cycles.

The below graph tracks the median house price in Sydney, Melbourne, Brisbane and Perth from 1970 to 2016, recorded June 30 of each year

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What does this all mean?

The Australian property market moves in cycles which are influenced by a wide range of factors including interest rates, consumer confidence, unemployment and of course previous rates of growth that impact on rental yields and levels of affordability.

While Australia’s current annual population growth of 1.4 percent may seem modest, this also adds 340,000 to our population each year, which is one new Darwin resident every 20 weeks or a new Tasmanian every 18 months.

Each state has its own property cycle and there are cycles within each cycle. Different areas, different price points and different types of property have their own cycle.

You’ll find that in each 10-year period there seems to be 3-4 years when the market is flat, 3-4 years of low capital growth, and a few years of strong price growth during the boom stage of the cycle.

When you look at the property prices that prevailed 10 and 20 years ago, and look at property prices today, it’s clear that property investment is a long-term play. You need to be patient as, over the long term, values in our major capital cities have doubled every 7 to 10 years.

With 5 year fixed investor rates as low as 4.29%, it makes sense to invest in Sydney property. With history proving it almost doubles every 10 years, there is never a bad time to buy.onate about property investing.

 

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Removing the Hassle from Sales and Rentals across South East Queensland. Aim to Empower other like minded Property Investors. L J Gilland Real Estate is a prestigious boutique agency specializing in Property Investment Management Services and the Sales of Investment Properties with tenants in place. Comprised of a top performing group of handpicked specialists, our Agents proudly serve Property Investors in Queensland. Since 1996 our Agency has demonstrated a genuine enjoyment of working with people, developing long-term relationships and delivering on the promise of great service. Carlos and Linda Debello offer property investor's the confidence to sell and lease in any market. We provide comprehensive market appraisals, exclusive multimedia marketing campaigns, and knowledgeable, highly personalized counsel on all aspects of real estate. Our Property Management Team is equally considerate, offering investors with in-depth advise, well-researched rental valuations, and highly professional rental management services. http://goanimate.com/movie/0M4bvcZzgIbI?utm_source=linkshare&uid=0u6RGtWsmlVc Carlos’ direct mobiles are 0400 833 800 & 0413560808. Linda’s mobiles are 0409995578 & 0414978700 (prefer email contact for Linda). Office 07 3263 6085. http://www.ljgrealestate.com.au http://www.yellowpages.com.au/qld/aspley/lj-gilland-real-estate-pty-ltd-14091356-listing.html http://au.linkedin.com/in/lindajanedebello http://twitter.com/GillandDebello http://www.facebook.com/pages/ljgrealestate
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