Michael's Latest Commentary

Is Australian property really the most overpriced in the world?

over priced.jpgThe Economist magazine’s latest survey of global housing reported that Australian property had the poorest return on investment of the 20 countries it evaluated.

The same survey found that Australian property was overvalued by 61% based on the current ratio of house prices-to-rents and historic ratios.  Next on the list was Hong Kong (53% overvalued), followed by Spain (50%).

So is our property market really so overpriced and a bubble waiting to burst?

Read on for the full story...

Featured Articles

Create wealth by leveraging your assets

A great way to create wealth is through leveraging your assets.

Leveraging involves borrowing money and can be a much faster way to increase the size of your assets than saving and paying down your debt. But leveraging could also increase the size of your losses, unless you build in precautions and safeguards.

Read on to find out more...

The property bubble and market timing

Recently I have been asked a lot about whether I believe there’s a property bubble and if so, when will the bubble burst? In my opinion, a better question is “where will property prices be in 10 to 20 years from now”, because as long term investors, we should base our decisions on long term outcomes and not be influenced by short term volatility along the way.

Read on to find out more...

All is well with the housing market!

Basically the news is good. I continue to hope that the RBA will refrain from further interest rate increases for the present. As far as the housing market is concerned it looks as if they have done their job. Our markets are now slowing in a very orderly fashion and the risk of a "bubble" has abated.

Read on to find out more...

Recent Articles

Property development guide part 9 - Common risks related to development

Many investors approach development with rose coloured glasses, but in order to minimise your risks and maximise your chances of turning a good profit (remember you want at least 20 per cent), as a developer you must understand the potential risks associated with the development process.

Reasd on to find out more...

Great expectations - Overvaluing Australian real estate

As Melbourne’s property values continue to climb many homeowners are left wondering what their property is worth in today’s market.

According to the Real Estate Institute of Victoria, the Melbourne median property price, currently estimated to be $524,500, grew by 29.5 percent in the year to March, representing a rise of almost $120,000 in only 12 months.

But although there are many astute home owners and investors that understand the factors which influence a property’s value, there are many more that do not. Read on to find out more...

Plan for property investment success

The statistics say it all –80% of Australians who invest in property never make it past their first investment. This is in spite of the fact that one property will never make you rich…it will never even make for a comfortable retirement when you consider that this stage of your life could represent around twenty to thirty years.

So why do so many investors never make it beyond that initial property?

Video Market Update

Michael shares his insights into our property markets in his regular video commentaries. Click here to access the links mentioned in Michael's latest video commentary.

From Michael's Blog