Where are all the so-called experts who claimed a year ago that Australian Property prices were going to collapse (by as much as 50%), and why do they continue to get it so wrong, questions Jamie McIntyre, author of What I Didn’t Learn At School But Wish I Had?
“Remember a year ago, US economist Jonathan Tepper, co author of the Big Short Report was making headlines for claiming that the Australian Property markets were set to crash by up to 50% in Sydney and Melbourne.
“There were others who also claimed falls, although not as great. Yet, we saw Sydney and Melbourne boom (15.5% and 13.7% respectively).
“Every year it seems I come out and state that the so-called experts are wrong. I tell my followers not to listen to their nonsense, as they simply don’t understand what drives the Australian property market.
“Yes, there are valid concerns in the inner city Melbourne high-rise market, and also Sydney to a lesser extent. However, even the Melbourne over-supply will be taken up (I tell my followers to avoid such poor capital growth areas)”, he said.
So what’s in store for 2017, ANR asked McIntyre:
“Don’t just focus on capital cities (although Melbourne always tends to perform). The best market for the year ahead, (and I was one of the few that predicted this city 15 months ago as the hottest market), is the Gold Coast.
“It is hot right now and will boom well past the 2018 Commonwealth Games, up to possibly 2020.
The Gold Coast is changing rapidly with big money being poured into the city. It will become a very popular spot to live in, especially for the Chinese. It will also be an attractive city for Melbourne and Sydney residents to buy a holiday home or investment property.
“Hobart will also perform well, as another city that surprised the property market in 2016.
“Sydney and Melbourne will still perform, but may experience slower growth. Brisbane and Adelaide will do well, whereas Perth will continue to have tougher years ahead.
“The other area that will see some strong growth is the Pilbara, which has bottomed.
“Houses dropped from $1million to as low as $200,000. However, this over correction will change and see some bargain hunters snapping up properties at prices well below their worth”, he said.
McIntyre went on to talk about the so-called experts and why they continually get it wrong.
“Most aren’t experts. They own little property and don’t understand what drives the market. Plus, many have vested interests.
“They wish to divert investors to put their money into the stock market via managed funds or hedge funds. Often, they are simply after publicity to sell their books or reports.
“This creates confusion for less than discerning investors, thus causing many to doubt the property market. Unfortunately, doubt leads to inaction and procrastination.
“Those who listened to these so-called experts missed out on a lot of profit. Those listening to my views would have done very well, especially buying cheap waterside homes on the Gold Coast for as low as $1m a year ago. Those properties have seen as much as 25-60% growth in a little over a year.
“Investing into property education and listening to those with a PhD in results instead of those with a PhD in Theory is what made me a property millionaire many years ago”, concluded McIntyre.