It is true that buying a property in any market will generate a lot of wealth as long as you (1) buy the right property and (2) hold it for a few decades. But it is also true that you do not need to rush into the market at the risk of substantially overpaying. My …
One of the Australian Labor Party’s (ALP) big election promises in the 2019 federal election was to abolish negative gearing. It would be logical to think that the ALP’s shock election loss in 2019 will serve as a warning for policy makers. That is, banning negative gearing is an unpopular policy. However, I would caution …
The internet and newspapers are awash with stories of properties selling for amounts wildly above reserve. Such news can create FOMO and fuel buyer demand. But buyer overexuberance is rarely sustained for long periods of time. My feeling is that price growth will level out this year and I set out the reasons why below. …
It is generally an accepted investment principal that diversification can reduce your risk and improve investment returns. The common vernacular is, spread your eggs amongst various baskets. I would agree with this principle, so long as it doesn’t result in deterioration of investment asset quality. Sometimes property investors should not diversify. That’s because the quality …
A common question people ask is, “can property prices continue to rise at the same rate which they have over the past 3 to 4 decades?” The short answer is no, they cannot. Mathematically, this is unlikely to occur as incomes are not rising at the same pace. I came across the interesting graphic/visualisation (below) …
During 2020, most economists and commentators predicted that property values would plummet by 10%, 20% or even 30%! In May, I wrote a blog (and in The Australian newspaper here) outlining the reasons why I disagreed with these overly bearish forecasts. We now know that property prices didn’t fall by any more than 2% to …
One of the advantages of investing in property is that you can make improvements to enhance its value and consequently your personal wealth. A disadvantage is that dwellings require ongoing maintenance, and this expense reduces an investment property’s cash flow. Minimising or avoiding maintenance costs is often a false economy. Maintenance cannot be avoided, only …
It is my observation that investment-grade apartments in Melbourne have under-performed (from a capital growth perspective) compared to houses over the past 8 to 10 years. That is, apartments have generated very little capital growth (sometimes none), whereas houses have grown in value by between 5% and 8% p.a. over the same period. I have …
Update: Since writing this blog the government has announced that it will abolish ‘responsible lending’ rules in March 2021 which means lenders may no longer have to review borrowers living expenses. This change will increase borrowing capacity and increase the supply of new loans. And this will stimulate the property market in 2021 which will …
This blog’s title is a bit deceptive, because every property you buy is important, for either lifestyle or financial reasons. I contemplated using the title: “why the first property you buy is the most important one”. But the reality is, if you have made a mistake on your first property, you can always start again. …
Level 8, 31 Queen Street
Melbourne VIC 3000
Office: (03) 8624 4600
Postal: PO Box 475,
Collins Street West, VIC 8007
advice@prosolution.com.au
© 2026 Prosolution Private Clients
You can find our disclaimer, Financial Services Guides, Tax Agency disclosures, dispute resolution policy, CPD policy, and privacy policy here.