Key indicators for long-term property success – what to focus on

The Money Puzzle, with James Kirby

Warren Buffett once remarked that “forecasters will fill your ears but never your wallet.” With the media saturated by property price predictions, it's essential for long-term investors to focus on the right economic indicators.

In today’s episode, guest host Stuart Wemyss talks with David Bassanese, chief economist at Betashares, to help investors navigate the complexities of property market forecasts.

In today’s show we cover:

• Long-term property prices in Australia are influenced by overall economic conditions and affordability, often measured by the price-to-income ratio. Invest in locations that are less reliant on incomes.
• Interstate migration can server as a leading indicator for a shift in market sentiment.
• Increasing housing affordability hinges on boosting supply through density and/or infrastructure development to allow the population to spread out, though significant changes over the next 1-2 decades are unlikely in Australia. Invest accordingly.
• David shares his views on the Reserve Bank of Australia's cautious approach and forecasts the first interest rate cut could come in February 2025.

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