Is Aussie Property About to Explode? Tom Elliott Thinks So
Okay, so you've probably heard the name Tom Elliott – he's a pretty big deal on Radio 3AW, and he's got everyone talking about Australian property prices. He's predicting a massive boom, and honestly, it's got me scratching my head. Especially with all the global craziness going on, like the US-China trade war – you know how sometimes things just spiral?
Why Does Elliott Think Prices Will Skyrocket?
Elliott's laid out a few reasons for his super optimistic outlook, and they're not entirely crazy. First, he's betting on a "flight to safety." When the share market gets wobbly – and let's face it, it often does – people tend to look for safer investments, like, you know, actual bricks and mortar. "When the share market wobbles," he said, "people seek the safety of bricks and mortar."
Second, he's expecting the Reserve Bank of Australia (RBA) to slash interest rates. Big time. And if that happens, it'll make borrowing money way cheaper, pumping up demand and, you guessed it, property prices. "If interest rates go down," he explained, "that will turbocharge the property market."
And finally, there's the immigration factor. Australia's population is growing, and that means more people needing homes. It's simple supply and demand, but with a huge population increase, the demand is intense. "The pressure on the housing market is immense with a growing population," Elliott emphasized. He pretty much summed it up as a perfect storm for rising property prices.
He even said he's "never seen so many things come together at the same time, which will make property prices go up," which is, of course, terrible news for those trying to get onto the property ladder.
What Do Other Experts Think?
Other experts aren't exactly dismissing Elliott's concerns out of hand. Financial markets are indeed predicting rate cuts – possibly even bigger ones than we initially thought if the global economy continues to tank. Lower interest rates would definitely make buying a house easier for many, but it also worsens the affordability crisis, a big issue Australia's already grappling with.
So, Boom or Bust? It's Complicated.
Elliott's prediction is certainly worth considering, but it’s not a slam dunk. While market volatility, potential rate cuts, and high immigration could all boost demand, let's not forget the elephant in the room: affordability. It’s already incredibly tough for first-home buyers, and a property price boom would only make things worse. We need to keep a close eye on things and see how these economic indicators play out before making any firm conclusions. It’s definitely a situation to keep watching carefully.
