Embed Size (px)
Citation preview
WHAT MAKESPROPERTYPRICES TO GOUP? Boom or bust? What makes propertyprices grow year on year?
WHAT IS DETERMINES PRICE?
There are a number of factors but itcomes down to where the Supply anddemand of property meet.
therentvestingpodcast.com.au
...WHAT IS DEMAND?
therentvestingpodcast.com.au
How much property is indemand by the peoplebuying property! The
demand curve is downwardsloping due to consumersdemanding more property
at lower prices.
DEMANDIS...
therentvestingpodcast.com.au
therentvestingpodcast.com.au
There are 4 things thataffect demand:
- Demographics- Interest Rates
- Credit availability- Speculation
WHATEFFECTS
DEMAND?
01DEMOGRAPHICS:Incomes andpopulation growth.Higher incomes orpopulations willincrease demand.
therentvestingpodcast.com.au
02 INTEREST RATES:Lower interest rates willincrease demand.
therentvestingpodcast.com.au
03CREDIT AVAILABILITY:The easier it is to borrowmoney, the higher thedemand.
therentvestingpodcast.com.au
04SPECULATION: Howmuch people think it isgoing to happen.
therentvestingpodcast.com.au
HOW DOES DEMAND LOOK?
The demand curve is downward sloping due toconsumers demanding more property at lower prices.
therentvestingpodcast.com.au
Supply is the amount ofproperty and landavailable to purchase
WHAT ISSUPPLY?
HOW DOES SUPPLY LOOK?
The Supply Curve is upward sloping due to moreproperty developments occurring the higher the price.
HOW THESE COMETOGETHER?
therentvestingpodcast.com.au
EQUILIBRIUM CURVE
In an open market, where supply and demand meetwill be the equilibrium point for the price of property.
BUT... WHAT ABOUTTHE INVISIBLE
HAND!? ✋
therentvestingpodcast.com.au
Adam smith coined theterm ‘Invisible Hand’,
referring to that you cannotsee the shifts in supply anddemand, but feel the effects
of the move in price.
WELL...
therentvestingpodcast.com.au
WHATINFLUENCESPROPERTY
PRICES?
THE FIVEFACTORS TO
CONSIDERBEFOREBUYING
IN THIS EPISODE WE COVERTHIS IN MORE DETAIL:
THREE THINGSTHAT WILL
PUSHPROPERTY
PRICES THISYEAR
FOR MOREINFO CHECKOUT THEEPISODEHTTP://WWW.THERENTVESTINGPODCAST.COM.AU/
E M A I [email protected]@therentvestingpodcast.com.au
C O N T A C T N O .0421 874 357
W E B S I T Etherentvestingpodcast.com.au
THANKYOU/
