Press Release
Stock Market Crash Profits Property
In wake of the turmoil being witnessed across the length and breadths of all financial markets, history shows that a flight out of the stock market always corresponds with a surge in people purchasing property. The safety of bricks and mortar over the centuries has been the safest haven for investment.
Whilst gold holds a special lustre, it has two major flaws being:
- Gold requires safety deposit boxes or special holding facilities which can be costly
- Gold cannot drive rental return income from the investment
Mark Hay from property investment specialist group, Mark Hay Realty Group, confirms that in the 3 decades he has been involved with
Perth investment property, each and every time there has been a substantial downturn in the stock market, property prices have rebounded strongly.
Mark has observed that there are two fundamentals that will see property rebound even more strongly:
- The current economic turmoil will put further pressure on interest rates to drop which will act as a positive stimulus for property prices
- Since the GST commenced in 2008 there has been a fundamental lack of placement properties being built and developed as both developers and banks lost faith in the market of development
Despite this, the resource boom has continued to see a steady influx of people into WA. In turn this has had an upwards effect on rental prices. Currently Perth rental vacancies are nearing an historical all time low. As more and more developers return to the market it will still take a minimum of 2 to 3 years before we see any substantial number of products to the market. Consequently, combining the facts of a flight from highs and lows of the shaky stock market, the decreasing interest rate and the lack of suitable stock against the ongoing demand should see property prices take a good leap forward in the short to medium term. Once the dust settles from this current financial shakeup, the property market will once again show its strength’s as a sound investment model. Refer to the below REIWA graph, showing property growth for the last 30 years
Regards,
Mark Hay
Perth Property Investment – Mark Hay Realty Group
markh@markhay.com.au
