Nila Sweeney – Page 6

Don’t bet on (new) units to make you rich

Eliza Owen of Onthehouse.com.au pointed out that despite the overall solid growth in values for Australia’s biggest cities, once you look closely, it’s clear that units have underperformed houses in a big way.   As such, investing in these types of properties is unlikely to give you the strong capital growth return that you get from established and detached houses.   According to the stats from Onthehouse.com.au, Sydney’s house values grew by 3.18% compared to unit’s 2.21% growth during the March quarter.   The disparity is even more pronounced in Melbourne where house values rose 3.11% while unit values fell by 0.8% during the same period.   “Despite Sydney displaying consistent growth across both markets, it’s still clear to see that there is a larger divergence in growth between the two different dwelling types,” Owen said.

Interest rate cut could lead to tighter lending

TAS Excerpt from the 2015 May Market report