Aussie property predictions in 2011

Some analysts say a crash is imminent, other experts claim that Perth and Brisbane will show a small increase in the final quarter of 2011 and the “doom and gloom brigade” reckon 40 per cent will be wiped off housing prices within the next six months.  Should we be alarmed?

Not according to Mike Yardney, CEO of Metropole Property Strategists with offices in Melbourne, Sydney and Brisbane. His multi-award winning team has bought, sold, financed, developed, advised, negotiated for and project managed multi-million dollar property transactions to create substantial wealth for their clients. And Mike has made a couple of ‘bold’ predictions:

“I can safely make three predictions that I am certain will be true for 2011. My first prediction is that it will be a bad year for those in the prediction business because most predictions will be wrong! My second prediction is that most property investors will get it wrong this year. And my third prediction is that those investors who get it right will do very well out of real estate this year and set themselves up for the years ahead.”

Ken Regan from Australian Homebuyers International explains further: “We already know that this will be a year of falling prices, the markets will be patchy with some areas performing better than others. Different states will post different results depending where they are in their own property cycles and which natural disasters may have had an impact on their economies. For instance, houses at the top end of the market – between $1.5 to $3million – will perform poorly over the next 12 months.  Lower priced properties will also suffer this year. We can expect to see prices continue to stagnate or fall slightly over the year.  But I agree entirely with Michael Yardney when he says there won’t be a crash.”

“Over time, property values always go up and investors who stay for the long term always do well.  Of course, there will be periods of poor performance, but the doom and gloom brigade who like to warn investors away from real estate always get it wrong,” added Mr Regan.

“In 2008 when the Global Financial Crisis hit many suggested property values inAustraliawere set to crash and burn and that we would all lose our jobs. Did it happen? No. Back in 2004, the property markets in Sydney and Melbourne stalled due to high interest rates, but since then properties have doubled. In 2001, there was loads of negative press about the impact of GST.  Experts said this new tax would destroy the housing market. Did it? No.”

But Mr Regan cautioned: “There is a cyclical pattern to all housing markets whether at home or abroad. Media and ‘clever’ commentators offer lots of reasons not to invest. But, the simple fact is that there are periods of prosperity and of slow or negative growth in the housing market.”

If you would like to discuss your Australian property requirements with Ken Regan he can be contacted on +44 207 060 0066  

www.ahinternational.net.au