Westpac has revealed their predictions for the residential property market over the coming years, stating that the bank expects ‘mild dwelling price correction through to late 2021’ to be followed by a 15% increase over the following two years.
The Commonwealth Bank of Australia has revised their property market predictions, and is now expecting that the property price trough will be 6% lower than peak prices, and this trough will occur in the first quarter of 2021.
One solution for investors is to pivot from one kind of fixed-income—bonds—to another kind of fixed-income, such as a credit fund.
For many, the coronavirus was the last push they needed to get out of the city for good, and the ability to work remotely has made it feasible for them to do so. As a result, agents are reporting high demand for quality rural properties.
In Japan and Europe, the yields on two-year bonds are negative. In Australia, the yield is just 0.26%. Investors need to rethink the role of bonds in their portfolio.
The ban on evictions and rent price increases will be extended until March 28, 2021 for Victorians.
