note, this article was written in 2015
this is just an an excerpt

In Melbourne ...  in 1975
the average house cost
$19,800
now it's
31 times higher at
$615,068

In Sydney
the average house cost
$28,000
now it's
31 times higher at
$850,000

In Brisbane,
now it’s 27 times higher
from $17,500
to $473,924

In Adelaide,
now it’s 28 times higher
from $16,250
to $459,258

In Perth,
it’s 32 times higher
from $18,850
to $604,822

In Canberra,
it’s 21 times higher
from $26,850
to $573,326

In Hobart,
it’s 21 times higher
from $15,200
to $322,274

Who wouldn't
have liked to
have invested
in a house
or two
in 1975?

written in 2016
excerpt from article

Valuation figures
released on Thursday
show that over the
past decade
house values in
Melbourne’s
eastern suburbs
have trebled,
particularly in
Boroondara,
Whitehorse and
Monash councils
where the
total value of
all residences
rose between
160% and 200%
over 10 years.

They were also
the suburbs
where values
rose most over
the past two years.
“Monash topped
the scales
at 39%.

Now, no-one’s suggesting that this massive growth in property values will continue into the future.

There’s evidence to suggest that the property growth-‘boom’ is over and house prices may even be falling – though this seems to be in lesser quality properties, units and apartments.

Even this opinion seems to depend on who you’re talking to.

So, probably it might be best to just use your own common sense and consider, among other things …

  • Australia’s population is growing – seemingly faster than anyone anticipated.

excerpt from article
Australia’s ‘breakneck’
population growth
is flooding major
cities and putting
huge pressure on
house prices,
says former
Labor foreign minister
Bob Carr.
(February 2016)

  • Even without the un-anticipated population growth, new house construction hasn’t moved at anything like the speed necessary keep up with demand.
  • Then, to add to the boom in house prices, cashed-up overseas investors are taking more and more interest in Australian property – sending house prices further skywards.

    And despite
    common perception
    that cashed-up
    overseas investors
    have already
    flooded in to
    the Australian
    property market
    in their desire
    to move their
    assets into
    safe locations,
    the reality is,
    the flood hasn’t
    even started yet.
      

  • Which suggests that the chances are, if you can’t afford to buy a house now it’s unlikely you’ll be able to in the future.
  • As the article confirms, property has tended to double in value about every 10 years over the last 40 years. 

    Compare that
    with any other
    savings/investment
    opportunity
    that has an
    equivalent level
    of security.
      

  • Unlike many other investments where you don’t know how they’re performing until you get a statement, you can see, touch, smell … etc … property you have an interest in and keep tabs on how it’s going.
  • While no-one can accurately predict future house prices, it’s unlikely any house in Australia will be worth less in a couple of years time than it is today.

All things considered,
would you prefer to have
your long-term savings in

quality residential properties
(houses) in Australia
if you could afford to?

it shouldn’t
take much to see
this option
can make a lot more
sense
than unnecessarily
saddling yourself with the
ongoing costs of servicing
piles of personal debt,
property maintenance and
repairs, annual rates and
taxes and replacement
tenant sourcing and
management.

We're always
looking forwards
to hearing from
like-minded people.

Contact Lets Talk Savings

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