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News Article Detailproperty is always safe - 22/10/2008 3:07:31 PM Good morning Colin, No doubt you have been listening to and reading how we are all going to 'hell in a hand basket in a hurry.' Well, I have just returned from the Queensland State Conference. The keynote speaker was Michael Matusik ( www.matusik.com.au) who made a number of comments outlining how the fundamentals of the property market are all pointing in the right direction and we are not going to 'hell in a handbasket' - in fact he is as, if not more positive about the property market than he was in 2005. Sure there are some 'psychological issues' we will need to overcome An abbreviated & combined version of Michael Matusik's presentation along with Kevin Young's is available for download at the following location. https://rcpt.yousendit.com/617487071/19fd2840b645f7a7131f3700931b6328 I have provided a written overview of their comments below and............................................with a bit of luck we may have an audio recording of Michael's presentation if we can get Michael's approval to distribute this. I am sure some of you have heard Prof Steven Keen getting a bit of air time recently - let me just say Michael Matusik has requested a right of reply with many media outlets who have quoted Prof Keen. On a different, but related, matter the ~1% reduction in interest rates means a real reduction of 11% in property holding costs and an increase of about 8% in borrowing capacity for those on income assessed loans. ?What did they say? A brief review of the Annual Queensland State Conference.
The Annual Queensland State Conference was held at the Rydges Hotel in Brisbane on Saturday the 18th of October and included a range of guest speakers such as Kevin Young, Michael Matusik, Club Researchers and Andrew Kemeny from Kastle Homeloans.
It was inspiring to hear well respected property commentators talking so positively about the Australian property market. The stark contrast between their statistics and analysis compared with the media hype was staggering. Both Kevin and Michael demonstrated convincingly that underlying and growing fundamentals are going to drive the property market upwards. They highlighted the enormous undersupply of property, (200,000 houses short by 2010) the growing population (over 300,000 per year) , the increasing demand for rental property (rents to rise by 30%, vacancy rates at 1.7%), and the impact of declining interest rates (rates to continue to drop). Michael also pointed out the concerns over increasing unemployment were ill founded especially in the resource states and convincingly argued the media cry over affordability was based on inaccurate figures. A summary of their presentation would conclude that the next few months will provide an excellent opportunity to invest in property. As Michael demonstrated, the big four drivers of property growth, population growth, economic positions, low unemployment, and a growing undersupply of stock are ?all positive and big time?. Couple this with declining interest rates, a movement of money out of the stock market into property , the new home buyer incentives and the fundamentals line up convincingly.
Three Club researchers presented some outstanding Club properties and demonstrated with their products that the stress on builders and developers is playing perfectly into the property investors hands. What was obvious was the rental returns are significantly higher now that any other time since I have been with the Club.
Speaking with members after the conference the common understanding was that property has become more affordable. Interest rates down and rents up make property cheaper to hold. The big question is how long before the average investor figures this out and the demand for housing drives the prices up? Our best answer ? Easter.
To get a copy of Michael Matusik's full presentation emails me. Enjoy Derek Jones |
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