While many in the media picked up on SQM Research’s recent predictions of 14-15% growth for Sydney and Melbourne, it’s essential to understand these projections are over a short time period. These markets are currently still potentially overvalued, so it’s wise to be cautious before jumping into the market.
“However, we have some misgivings on the sustainability of this new recovery. Sydney and Melbourne are rising from an overvalued point. Long term, our two largest housing markets look vulnerable and forever reliant on cheap credit. Housing debt, while falling compared to GDP over 2019, is still very high. Better value can definitely found elsewhere such as Perth and Brisbane”, said Mr Christopher
Successful property investment should be about balancing the risks with the rewards. Please do your research on based on the long term and make sure you are not over-geared financially as there could be some dark clouds on the horizon for our economy.