I’m feeling optimistic about the Australian property market in 2012.  We’re not in for any major growth in prices but there are positive signs ahead.

Two interest rate cuts will always stimulate the more affordable end of the market – which is a positive thing for the bulk of the population living in and buying homes under $1.5M-$2M.

Recent figures from Australia’s largest mortgage broker, AFG, show a big boost in the number of home loans taken out in the month of November following the first rate cut on Melbourne Cup Day.

New mortgages increased by 18.4% nationally (26.7% in VIC, 20.8% in QLD, 16.4% in NSW) compared to October, and while that is partly due to November always being a high volume month, I think the interest rate cut probably gave buyers already in the market an extra shot of confidence to go ahead and make that purchase. The November loans were worth $2.9 billion, the highest number recorded by AFG

We’ve noticed a marked improvement in buyer enthusiasm following the first interest rate cut but it won’t be enough on its own to spark some serious growth.  People are looking for more good news to regain their confidence to buy and sell.

Interest rates are definitely an important factor in people’s purchasing considerations, particularly in the sub $1.5 million market, but it’s not the only one.  There are other macro issues that are probably a greater influence on people's current psyche.  The European problems are a big dark cloud and if they’re resolved I think that will have a much greater positive impact on the actions of buyers than a quarter percent rate cut.  

While we continue to wait for

I chatted with Peter Switzer this week about the QLD property market. I hope you find it informative. Please note, the video is used with permission of Switzer Media + Publishing.

I was recently interviewed on Grow Your Business - a site which provides news & information for Australian SMEs. I hope you find my interview informative.

I had the opportunity to catch up with Peter Switzer recently on Sky Business Channel. Hope you enjoy the interview.

Please note, the video is used with permission of Switzer Media + Publishing.

Wise words from one of the world’s most successful investors, Warren Buffett: “Be fearful when others are greedy. Be greedy when others are fearful.”

Recent economic events have caused a heightened level of uncertainty.  This will prove problematic for property at the higher end over the next quarter, however I still believe most markets are at the beginning of a long term growth cycle.  Property remains an excellent asset class for long term investment and definitely offers more stability than the volatile share market.

Once confidence returns, Australia will be in good shape.  Unemployment remains relatively low and rents are very strong.  A key factor is interest rates.  If the RBA moves to decrease

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It’s predicted that Western Sydney’s population will more than double in the next 4 decades, as Sydney grows to 7 million by 2050. An expanding business district, major new public art gallery, rail network improvements and upgraded sporting facilities are just some of the infrastructure required to draw the pressure away from our existing CBD and towards positioning the city of Parramatta as Sydney’s second CBD.

And there’s a real buzz around Parramatta at the moment and it’s got everything to do with the number of cranes in the sky and a very proactive council that is loudly broadcasting a big picture future for the city. I’m seeing a lot of commercial activity here, which is an important indicator for employment and as a result, an

I chatted with Peter Switzer this week about the property market. I hope you find it informative.

There’s no need to panic. Every few years, these so called property experts come out of the woodwork to generate headlines about the Sydney and Australian property market being 40% over priced. 

I’ve been in real estate for almost 30 years now and have heard these suggestions on at least eight occasions (seems like once every cycle). To date, I have yet to experience a market that has fallen more than 20%, and invariably within nine months, any market losses have typically been regained.  In the meantime, property values have kept doubling about every eight years.  

I also remember an instance several years ago, when one loud academic promoter of the “Chicken Little” theory had our company sell their

Here's a recent article I did with NAB Magazine on how a lucrative property investment can outperform the market in capital growth.