There’s something about the rarefied air surrounding prestige property markets in Australia. Is it sweeter? More pure? It certainly appears to be untainted by the influence of interest rate movement, displaying frictionless price rises when the economy soars. No sooner do we catch our breath after hearing about one listing in the tens-of-millions than someone turns around and goes a step further.
Prestige markets are just great fun to analyse. On the serious side, the sector is often a weathervane on market direction. When expensive sales volumes rise and prices follow, it’s a sign of confidence that will drag up the less salubrious sector with it. Almost like the hoi polloi hitch their wagon to the star and shoot along behind.
Prestige buyers and sellers also appear to be reasonably immune to interest rate movements. Funds are available, and if you’ve already got the security and cash flow to service the debt, why not let you entrepreneurial spirit take over. Back your judgment and take a property plunge without worrying if rates move half a per cent or so.
Enjoy this months Herron Todd White month in review, Click the picture to access the full report.
Elkins Finance is a MFAA Approved Credit Adviser and available to assist you.
Call 1300 355 467 or use the contact us form to request we contact you if you want to follow up any ideas you have after reading.