According to the managing director of BIS Shrapnel, Robert Mellor, we should not expect Australian property price growth in the coming years to be anything like what we have seen over the past 30 years. If there is to be any growth it will be marginal – no more than 5% per year.
Nothing like the property boom cycles we have seen in recent times.
Home Owners and Investors have to accept the fact that over the next five to 10 years, strong growth will be in the order of five per cent, while weaker years will see just 2 to 3 per cent growth. The growth we have experienced in recent times had a lot to do with, easy access to finance, with high LVR home loans and no doc home loans in vast supply, as well as the First Home Buyer incentives which are no longer available.
Therefore property investors and first home buyers who would like to enjoy the benefits of additional growth need to be approaching property differently and look for low cost opportunities to ‘add value’ such as home renovation, property rezoning etc.