Assuming that market participants are rational is a huge gamble. In my experience, people often follow each other into unwise investments driven by “market sentiment”. I always suggest clients be prepared to do what others are NOT doing. (ie sell when everyone else is buying)

When analysing property price increases, be cautious as they never strip out the effect of renovations. The data nearly always only reflects the gross increase in prices. If you have spent nothing on improvements, don’t expect your property to perform the same as the median.

Baby boomers (46 -64 year olds) make up 25% of the population but control 55% of the wealth. This wealthy, demanding bulge in the demographic is aging and looking after their needs will be lucrative. To appeal to them; minimise stairs and buy in areas with good medical facilities, low crime rates and access to level walking opportunities.

Since super funds have been able to borrow to buy residential property they have been flooding into the market. In a couple of years, they will realise how small the net return on residential property can be and may well stampede back out.

We are in a part of the world with some very strong economic growth seeing huge middle classes developing. We expect that it will not just be Chinese people seeking quality of life in Australia but Indonesians, Indians, Singaporeans and in time, Cambodians and Burmese people. Being culturally aware and awake to the opportunities this opens up will be wise.