1. Property prices are already on the march: “The average period for saving a house deposit is 4.5 years
nationally, up from 3.7 years in 2009.” Sydney Morning Herald 06/07/10
2. There is a massive shortage of available property which will fuel increased demand and hence higher
prices…. “200,000 house shortage remains.” Sydney Morning Herald 07/07/10.
3. People who are sick of losing money in their superannuation have started transferring money out of their
super into property in higher numbers than ever before…. “owner-occupier buyers in Sydney are being
replaced by self managed superannuation funds who have taken money out of the share market” The
Business Spectator 01/07/10. Less than 2% of SMSF Assets are in Residential Property – this will change.
(currently >$300b in SMSF’s)
4. Every stock market crash has been followed by a massive spike in property prices. Remember the dot com
crash of 1999? What did property prices do after that? They shot through the roof…. and the same thing is
about to happen again.
5. Population growth – migration into Australia will continue to increase demand for property which will in turn force prices upwards.
6. A change in Demographics, whereby the average # of people living in a house is now less than 2… meaning people will be looking to move into units that are convenient and close to amenities.