Property Ladder

Over the last twenty years or so, we have seen our dwelling prices increase something like threefold, while rents have risen by more than double.

Whilst property fortunes have fluctuated over that time, in general, it has been an upward and quite lucrative path – a property ladder, as many correctly described it.

What drove the property ladder during this time includes:

  1. Inflation
  2. Falling interest rates
  3. Increasing liquidity
  4. Financial deregulation
  5. Relaxed property taxation
  6. GST on new property
  7. Government handouts and assistance
  8. Strong population growth
  9. Baby boomer cohort
  10. Loosened foreign ownership laws
  11. Change from one to two income households
  12. A strong China and Aussie resource boom
  13. Strong wage growth
  14. Low unemployment
  15. Affordable housing
  16. High rental yields
  17. Hilmer and other government reforms
  18. Introduction of regional town plans
  19. Under-building
  20. Government surplus

It is a convincing list and it is little wonder that dwelling prices and rents rose so much over the last two decades.

Now, revisit the list and tick off those that no longer apply.

Better still, have a go at marking off those that you think will apply in two; five or even ten years’ time.

We will let you draw your own conclusions.

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