Linz’s Friday Musings – November 15th 2019

G’day all

Happy Friday again!  Not sure if it is just me, but are these weeks going faster now that we are getting closer to Christmas?  Einstein did always say time was relative!

Speaking of relative, I was reading an article this week on the state of the AU market.  Some amazing stats regarding the number of properties listed being at a record low (well, at least since they started recording these figures some 25 odd years ago).

But with the property market in Australia so hot right now, why would there be so little inventory around?  Very tough to be a real estate agent in the cities right now, I would suspect.

Well, the article goes on to suggest that it could be the government, or policies causing this, but I have to agree with one of my property mentors, Dymphna Boholt, who is suggesting that it is more down to the fact that property IS such a great investment, that people are just not selling…

We all purchase properties to grow wealth, and generate income, and while these properties are doing this, why incur stamp duties, commissions, etc by selling?  With lending rates so low, and looking at going lower (did you see the unemployment figures for AU this week?) people can access the equity in the property through refinancing and line of credit rather than selling

What this means is a record low amount of inventory on the market, which will in turn drive the prices up again…it’s a self-fulfilling prophecy!  Supply vs Demand, and demand is high, but supply is at record lows…

So therefore, not only is it hard to be a real estate agent in Oz right now, it is hard for us investors!

This is where US property can also help to fill a void.  High cashflow, low entry costs (compared to AU properties anyway), very stable, very sound investments, when done right.  Plenty of inventory here! 

Maybe it’s a perfect time to start looking across Pacific to pick up some gems, while here in Australia, investors are fighting over available properties…

Reach out if you want help to get started…

Oh! Don’t forget if you are in Sydney, or two upcoming events below!

Have a great weekend all and Happy Investing…!!