Update- Market Metrics: Global Property
One impact of keeping interest rates in the developed work so artificially low for so long is that we have end up with significantly overvalued residential property in most major global cities including Sydney.
In statistics they call it mean reversion which talks to the fact that prices always come back to the long run averages.
This means that residential property in these major global cities will either flat line and wait for rents to increase and support current valuations or the prevailing prices will correct downwards to meet the long run averages.
It is not possible for any growth asset (property or shares) to increase in perpetuity without correction but a market can stay insane longer than you can be patient.
At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me via Contact Us or to call me on +61 2 9267 2322.
10th-November-2015 | 
