MB Fund Podcast: From the Frontlines of Australia’s Housing Boom, w/ Catherine Cashmore

In today’s investment webinar (LIVE 12:30pm AEST), MB Fund’s Chief Economist Leith van Onselen, Head of Investments Damien Klassen, and Head of Advice Tim Fuller are joined by property buyers advocate Catherine Cashmore to get an on the ground look at Australia’s housing boom.

After a tumultuous 2020, that saw rocky and rebounding equity markets, emergency stimulus and both rental eviction moratoriums and bankruptcy protections.

Add to this the snapping shut of international arrivals, it would be safe to assume that even our most resilient of markets, property, would be showing signs of pressure under these circumstances. 

For those states enduring lockdowns, this was particularly true, as inspections and auction opportunities become limited and sale volumes slowed. 

The story quickly changed however as the lockdowns eased, with an explosive mix of pent-up demand, record low interest rates and the hunger for space and lifestyle seeing both cyclical regions and urban detached housing catapult prices with vigour.

Agenda:

  • Strongest growth in property prices since 1988
  • Mortgage market booming
  • Auction market booming
  • Lack of supply
  • How long can the boom run?

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Tim Fuller is Head of Advice at the MacroBusiness Fund, which is powered by Nucleus Wealth.

The information on this blog contains general information and does not take into account your personal objectives, financial situation or needs. Past performance is not an indication of future performance. Tim Fuller is an authorised representative of Nucleus Wealth Management, a Corporate Authorised Representative of Nucleus Advice Pty Ltd – AFSL 515796.

Tim Fuller

Comments

  1. Tim FullerMEMBER

    Our viewer question of the week:
    How long will the property boom last? Feel free to make this area-specific

    • The Australian house prices are tightly connected to the universe expansion.

      NASA and ARSĒ (https://spaceaustralia.com.au/) are working cooperatively to prove the existence of a fundamental particle responsible for this seemingly strange connection. The Crediton, also known as ‘God Lowe’s Abozon particle’ is believed to be uniquely responsible for the Australian house prices expansion, although its existence has been thoroughly denied by RBA ground research.

      So far, ARSĒ scientists have determined the spin of the particle: positive, yet its other identification properties are largely unknown: its origins, its mass, its decay, and under what circumstances it behaves like a wave, thus perceived by the Australian public as “more like the vibe of it”

    • Indefinitely, as long as the banks keep lending 7x income and more.
      The question you have to ask is, what will force banks to reduce their loan to income rates?

      • They have other tricks too. They’ll increase the terms of mortgages to make repayments lower and they’ll lower deposit requirements. Eventually when mortgages are 50 or 100 years long they will be rebadged as leases because no-one will live long enough to pay these mortgages in full.

    • When they stop printing excess money and QE and 0% or ZIRP or even negative rates, basically never…

  2. OZ battlerMEMBER

    The next global financial crisis will put this property boom to bed. This will stem from inflation that will run rampant in the US in approx. 2-3 years – effectively crushing stocks and hammering the property market. This will have flow on affects globally and at this point the Australian property market will be [email protected] regardless of RBA money printing.