The past few weeks have again reinforced the benefits of residential property compared with other investments. The extreme volatility on Australia’s share market saw $60 billion wiped out in just one day; to say nothing of the global losses and the ongoing uncertainty.
Property is a traditional safe-haven but particularly during worrying economic times. After all, everyone needs somewhere to live. Property has also been the backbone of wealth for many families and households – as well as an asset class we all love and understand.
But it’s not all plain sailing. We are seeing mixed results across some property markets and also within pockets of certain suburbs. Like much of our economy, there is a wide variation in performance based on geography.
Although investors may be shying away from other sectors, they continue to seek out property at unprecedented levels. This interest is not just from within Australia but increasingly from international investors. The recent slump in the Australian dollar is proving an extra draw card as it makes it even cheaper for overseas buyers to purchase here. And although the slow down in the Chinese economy and the heavy slump on the Chinese stock exchange may see a temporary pause, it is unlikely to deter this ongoing demand.
Until next week,