From Watermark Asset Management comes a cracking new report that should make you very concerned indeed.
What’s in store for the Australian property market?
It is well known that Australia has high house prices and elevated levels of household debt. Less widely discussed, but equally important in our view, is Australia’s extraordinary level of speculative amateur investor activity in the housing market. In this report, we show that the participation of levered amateur investors in domestic housing is inflated in comparison to other countries, both currently and historically. We provide examples from the US to demonstrate that housing markets with significant investor participation tend to be more volatile – both in periods of boom and bust.
