Playing the Long Game

We have been getting plenty of questions lately – is now a good time to buy? I think the answer is absolutely yes! If you find a house in the location you love, at a price you are comfortable with, then don't hesitate. You see property is a long term investment, and it’s important to look back on the long-term success of property. What is clear is while booms and downturns come and go, property is still one of the safest asset classes for wealth generation.

My father Patrick Dixon who has been selling residential real estate in Brisbane for over 30 years recalls at least 5 cycles of upswings and downturns. He tells me they are all different – driven by economic shocks, monetary policy, migration, government stimulus and various tax policy. While prices rise and fall, what is undeniable is the long term trend is very healthy growth.

According to a recent report?by Core Logic titled “The long game … 30 years of housing values” Brisbane Inner West (house) values have risen a staggering 514.6% in the past 30 years to $1,383,725. On a compounding annual basis, that’s a 5.6% average gain per year since 1992. Looking nationally, dwelling values (apartments and houses combined) have risen by 382% over the past 30 years.??

Another interesting point from the report?is there has been significantly more growth in houses compared to apartments due to the larger under-supply of houses.

So if you are in the market, find the house or apartment you love, that you can afford (with a buffer for inevitable rate rises over a 30 year loan period) and have confidence that if this is your long term family home, you will be happy you made the decision.

What is clear from the report it's important to hold your home long term as invariably you’ll go through several cycles. Ignore the headlines, the chat around the BBQ, enjoy your home and the security it provides.

On the ground in Brisbane we are still seeing strong market activity. A few segments of the market are still performing particularly well. These include renovated homes or new builds as well as the inner city apartment market which are running strongly.??