Financial planning magnate, Mark Bouris, was quoted earlier this month as saying that property will be “the hottest asset class you can possibly think of".
He makes this prediction based upon his past extensive experience in the Australia market, noting that the drop that we’ve had in the last 3-4 years is often followed by growth fuelled by a period of low interest rates as well as the fact that over the past decade, wage growth has outstripped property price growth, meaning it is actually more affordable now to purchase.
If the market is anything to go by, the Sydney Inner West is clocking up auction clearance rates of 85% consistently, meaning that buyers are well and truly back in the market.
With more cashed up SMSF buyers, there will be more competition for good stock in the inner city areas, further pushing modest price growth.
With the stock market gaining and losing progress every other week, it is hard to see how property cannot be the strongest and perhaps most price stable asset class not just in 5 years’ time, but today.