Inflation falling, RBA has mission accomplished
Inflation is now well within the RBA’s target 2-3% range and it’s sticking there. Not moving much. That’s exactly where it needs to be and so I think it’s pretty safe to say: Mission Accomplished.
We work with a lot of property investors and often look at where they are buying, or thinking of buying, their next property. Our experience in this industry has led us to focus on one key driver that moves property prices higher: population growth.
According to research from KPMG, around 41,000 people (mostly younger) left Sydney over the last year because it's become too expensive. They're moving to areas where they can get the same quality of life, if not better, for less money.
Brisbane, Perth and Canberra are obvious options. Strong jobs and much more affordable housing.
We've written about this previously and refer to it as the Quality of Life Arbitrage.
Yet despite the flood of people leaving Sydney, here is the real catch: around 120,000 new migrants came to Sydney during that period, offsetting the 41,000 that left. That is why Sydney remains the premier real estate market in Australia.
Bottom line: The good news is Sydney's rise is pushing people into new markets, with new opportunities emerging. Adelaide, Brisbane, Canberra and Regional NSW/Victoria. As interest rates fall, it’s a great time to be thinking about growing your portfolio if you're in a position to do so.
Reach out to our team to discuss your property plans over the next year and see how we can help turn your goals into reality.