Will the property Markets Crash? 

If you read too many trashy tabloids, watch ‘a current affair’ or listen to all the ‘doomsayers’, you will be believing that the property markets are going to crash…

Here are some reasons why we think that the markets will stay pretty stable throughout 2016 / 2017:

1. We having increasing business confidence in the marketplace
2. Our Banks are very robust
3. We have a healthy level of household debt
4. Our economy is growing and remains solid
5. Our strong population growth
6. We have a fairly tight reign on household debt
7. We have an excellent % of home ownership in Australia

We personally don’t think that Australia’s prices will crash, maybe they will somewhat correct, but not crash.

For the markets to crash, we would need some or all of the following to occur:

1. A significant Increase in interest rates – causing people to default on their mortgage
2. Credit Interference by APRA
3. Massive unemployment
4. Lack of Population Growth
5. Recession
6. Changes to Government legislation
7. Severe oversupply of property

We are very upbeat about the Australian economy and property prices in general, however it is important to note that Australia is impacted by what is happening in the World, so investors need to stay on top of all the latest news and mitigate the risks.

No tags