"We have record low interest rates, with existing and new borrowers reaping the benefits making property more affordable."
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The 10 reasons why Australian property prices will rise 5% to 10% in 2013: John McGrath
Leading Sydney estate agent John McGrath has listed on his Facebook page the 10 reasons why he believes the residential market will be 5% to 10% higher by the end of 2013.
1. The Australian share market is recovering quickly, and this will generate (and replenish) great wealth for many Australians.
2. China is on the surge with an 8% anticipated growth rate this year (and beyond), and we will benefit more than any other country.
3. We have record low interest rates, with existing and new borrowers reaping the benefits making property more affordable.
4. We have a nationwide housing shortage and will for some time, so demand will outstrip supply in an improving sellers market.
5. Cash and term deposits are becoming far less attractive, and many people will see the time is right to switch from cash into growth assets.
6. Rents will continue to climb in the face of the housing shortage providing investors increasing yields over the next few years.
7. Self-managed super funds (SMSF) investing directly in residential property is the biggest change I’ve seen in the last 12 months
8. Luxury homes are back by 20%-40% in value and will provide great buying for the recovering professional market buyers (read Palm Beach weekenders are about to become mega popular again!).
9. Most experts are tipping a landslide change in federal government, which will give great confidence to the business community.
10. As all the above happens in our connected community we’ll see a surge of confidence and FOMO (fear of missing out), which will stimulate continued investment over the next three- to five-year cycle.