How To

As we edge ever closer to the new year, Australian property just might be shaping up for an impressive surge in late 2024. To understand why 2024 will be such an important year for property, read on: Demographic Drive It’s been shaping the property narrative for some months now, and Australia's burgeoning population will remain the cornerstone of the property’s price ascension. The Demography group, Informed Decision, estimates that by 2041, Australia’s population will burgeon by 7.4 million, mandating the construction of two million additional homes.

In our previous article, we described the current window of opportunity for investors, particularly within markets like Brisbane.   Among other things, our theory of continued momentum is built upon the ongoing supply-demand imbalance, coupled with the apparent market resilience displayed during the current rate hike cycle. With expectations that interest rates will soften by late 2024, the market seems poised for an imminent bump in prices – making now a seemingly excellent time to buy.   But, looking closely at Brisbane, what indicators are there of growth beyond the next few years?

Suppose you’ve got $2 million to invest in property. What would your approach be? Spend it all on one house? Or split it across a couple? Have you ever considered how price point can impact a property’s performance? One House or Many? Each approach has distinct pros and cons.

The concept of the boom-bust cycle has a long history. In fact, it goes all the way back to a major stock market crash known as the Panic of 1825, when large investments failed in several South America countries (including a fake country!). The crisis led to the collapse of 12 banks in Britain alone and was felt across Europe and both American continents. Until this point, economists had generally believed that economic downturns were the result of purely external factors, like war – but the situation in 1825 didn’t seem to fit this rule. Swiss economist De Sismondi was first to point this out and thus give rise to concept of the “boom-bust”, or economic cycle. The idea being that capitalist economies are subject to continual cycles of economic expansion and contraction.