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Ep 364: Can annual property growth persist at 7% perpetually

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Manage episode 493364531 series 3363218
Content provided by Stuart Wemyss. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Stuart Wemyss or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://player.fm/legal.

Read full blog here.

In this insightful episode, Stuart Wemyss addresses a common investor question: Can Australian property values continue growing at 7% per year? He explains how compounding works over time and why adjusting future property values for inflation and income growth makes projections, like an $8 million home in 30 years, more relatable.

Stuart dives into the impact of income distribution, noting that the top 20% of Australians earn nearly half of all disposable income and experience faster wage growth. These high-income earners drive demand for blue-chip, investment-grade property, often located within 2 to 20 km of major CBDs, making such properties more likely to achieve strong long-term growth.

He challenges the idea that Australian property is broadly overvalued by focusing on geographic scarcity, population concentration, and the limitations of regional infrastructure investment. He also outlines several tailwinds that could boost property demand in the coming decade, including lower interest rates, superannuation tax changes, inheritance wealth, and reduced future equity returns.

Whether you're a long-term investor or simply seeking clarity on the sustainability of property price growth, Stuart offers a well-reasoned, practical perspective grounded in evidence and experience. Tune in to gain confidence in your investment decisions and understand the forces shaping Australia’s real estate landscape.

Do you have a question? Email: [email protected] or for a faster response, post a comment on the episode's video over on YouTube: https://www.youtube.com/@investopolypodcast/podcasts
If you're interested in working with my team and me, discover how we can work together here: https://prosolution.com.au/prospective-client/
If this episode resonated with you, please leave a rating on your favourite podcast platform.
Subscribe to my weekly blog: https://www.prosolution.com.au/stay-connected/
Buy a one of Stuart's books for ONLY $20 including delivery. Use the discount code blog: https://prosolution.com.au/books/
DOWNLOAD our 97-point financial health checklist here: https://prosolution.com.au/download-checklist/
IMPORTANT: This podcast provides general information about finance, taxes, and credit. This means that the content does not consider your specific objectives, financial situation, or needs. It is crucial for you to assess whether the information is suitable for your circumstances before taking any actions based on it. If you find yourself uncertain about the relevance or your specific needs, it is advisable to seek advice from a licensed and trustworthy professional.

  continue reading

446 episodes

Artwork
iconShare
 
Manage episode 493364531 series 3363218
Content provided by Stuart Wemyss. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Stuart Wemyss or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://player.fm/legal.

Read full blog here.

In this insightful episode, Stuart Wemyss addresses a common investor question: Can Australian property values continue growing at 7% per year? He explains how compounding works over time and why adjusting future property values for inflation and income growth makes projections, like an $8 million home in 30 years, more relatable.

Stuart dives into the impact of income distribution, noting that the top 20% of Australians earn nearly half of all disposable income and experience faster wage growth. These high-income earners drive demand for blue-chip, investment-grade property, often located within 2 to 20 km of major CBDs, making such properties more likely to achieve strong long-term growth.

He challenges the idea that Australian property is broadly overvalued by focusing on geographic scarcity, population concentration, and the limitations of regional infrastructure investment. He also outlines several tailwinds that could boost property demand in the coming decade, including lower interest rates, superannuation tax changes, inheritance wealth, and reduced future equity returns.

Whether you're a long-term investor or simply seeking clarity on the sustainability of property price growth, Stuart offers a well-reasoned, practical perspective grounded in evidence and experience. Tune in to gain confidence in your investment decisions and understand the forces shaping Australia’s real estate landscape.

Do you have a question? Email: [email protected] or for a faster response, post a comment on the episode's video over on YouTube: https://www.youtube.com/@investopolypodcast/podcasts
If you're interested in working with my team and me, discover how we can work together here: https://prosolution.com.au/prospective-client/
If this episode resonated with you, please leave a rating on your favourite podcast platform.
Subscribe to my weekly blog: https://www.prosolution.com.au/stay-connected/
Buy a one of Stuart's books for ONLY $20 including delivery. Use the discount code blog: https://prosolution.com.au/books/
DOWNLOAD our 97-point financial health checklist here: https://prosolution.com.au/download-checklist/
IMPORTANT: This podcast provides general information about finance, taxes, and credit. This means that the content does not consider your specific objectives, financial situation, or needs. It is crucial for you to assess whether the information is suitable for your circumstances before taking any actions based on it. If you find yourself uncertain about the relevance or your specific needs, it is advisable to seek advice from a licensed and trustworthy professional.

  continue reading

446 episodes

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