Last week BIS Shrapnell forecast that house prices in Sydney will rise as much as 20 percent in Sydney over the next few years, with significant growth in most other major centres too.
Harry Dent, from HS Dent Investment Management in Florida, doesn’t agree. “Bubbles always burst,” he says in this edition of BTalk.
Harry’s argument is that as a population ages you have a lot of empty-nesters wanting to cash in on their homes and downsize. Without enough young people to create the demand prices will fall. In Australia, the bubble has been perpetuated by high immigration, although most migrants will buy smaller, lower-priced homes, meaning supply outstrips demand at the top of the market.
Studying the demographics of a country will surely produce a more accurate prediction rather than just looking at past cycles.
If he’s right, think hard before you argue too hard for reductions in migration levels. It could really hit your back pocket!
-
Is there a better way of funding retirement?
Many of us can’t afford to retire, yet the government’s welfarfe bill is climbing. How do we get out of this mess?
-
Washing our hands of it all
You need to wash your hands for 20 seconds, less if you are the President because his hands are so much smaller. Balls Radio on coping with the virus.
-
US equities ride high, pound dives on uncertainty
Fears of a hard-Brexiteering PM in the UK spook the pound and Euro, whilst US equities continue to surge on earnings results. Meanwhile, NAB’s Gavin Friend, suggests the Aussie dollar is vulnerable to today’s CPI numbers.
