Property Prices Predicted to Rise in Australia (2022)
Property Prices Predicted To Rise In Australia in 2022
Transcript of - Property Prices Predicted to Rise in Australia 2022
National property prices are predicted to rise up to 9% in 2022. This is really gonna rub some people up the wrong way.
The Latest Report from Real Estate Australia Group
According to the latest report from Real Estate Australia Group, house prices are set to increase Australia wide. Now, I’m the first person to say you shouldn’t trust reports that saying is how people plaster their opinions all over social media. I’m going to give it a crack as well. The median house price in Australia has increased by 22.1% during 2021. So it makes sense that people are triggered when hearing about another 9% increase.
The report also goes on to say that the increases will be mostly felt in capital cities, which will further fuel the anger of people missing out on the market. I want to reach out to the people who are looking to buy in the near future, because media will put out conflicting data almost on a daily basis. And it will leave many of you confused as to what you should do. I’ve been in finance for 15 years now. And I’ve got a unique perspective on how things work. I can say that anyone who bought at any time in the last 15 years have not suffered unless they just couldn’t afford to pay the loan. Even if you go back to 2008, the eve of the GFC, prices have pretty much doubled.
What is the right approach for you?
Now, that doesn’t guarantee prices are going to double again in the next 10 years or so. There’s risk in all the decisions we make. What I’m saying is you shouldn’t be feared into buying or not buying based on what agenda media is pushing at you on any given day. I’m a left brain thinker. I like to plan things and I’m naturally cautious. Even today when homebuyers jump in probably a bit too quick for their own good. It makes me a bit uneasy. However, the last 15 years has shown me that these people have been rewarded.
Is it worth the risk?
Now if you’re buying a home to live in, you could argue that you’re going to be in there for a long time. If that’s the case, so long as you have secure and skilled employment, that may be a risk worth taking. In reality, the core of all this surrounds how we organise our economy. People won’t like this but whenever some disaster happens, the government comes out with that magic word, stimulus. And low and behold, process increase, and you want to know the secret.
What is the secret?
The secret is that stimulus is code for creating money. That’s why when most Western countries like America, Britain, New Zealand, and even here in Australia created 30% of the money supply via stimulus. Property prices went up by a similar amount during a recession and a pandemic. People don’t want to hear it but this government spending fuels house prices. Putting that in perspective, maybe the best long-term decision right now is to get into the market.