How To

You’ve probably heard that over a 7-10 year period, the value of Australian real estate will always double like clockwork. It’s a common rule of thumb. But just how true is this? Does the pattern of history prove this to be false? Or is it indeed an accurate, high-level precis of the market’s intricacies? To begin with, it’s important to understand what is required for a house to double in value. It sounds extraordinary, but thanks to the power of compounding, a house price doubling over 7 years requires an annual growth rate of just over 10.2%, while a 10-year period needs only 7.2% growth each year.

According to the most recent PropTrack Market Insight Report, an intriguing trend has emerged within the Queensland property market: a notable 53.3% of all residential properties are now cheaper to purchase than rent. This figure stands in marked contrast to the national average of only 36%. In February this year, the national figure was just 9.1%. The differences among these figures prompt a couple of important questions: What factors underlie this trend and what ramifications might it create for markets moving forward?

With the homeownership dream increasingly out of reach for many Australians, the Queensland government has announced a ‘cost of living boost for first home buyers’—with the first home buyers’ grant being doubled from $15,000 to $30,000. The increase came into effect on the 20th of November and will remain until mid-2025, available for those buying or building a new home worth less than $750,000.

When was the last time you paid for something with cash?   Chances are, it may have been a while!   The share of all transactions conducted in cash has been in a steady decline for decades. This trend is only set to continue, with younger generations being far less likely to rely upon cash for the bulk of their purchases.