Oct 8, 2018
Many real estate investors and
homeowners worry about the value of their property today. But it’s
important to take a long-range view and think about what the value
of property will be in the future.
In today’s episode, we’ll talk
about what may happen to property values over the next 25 years and
look back at what’s happened over the past 25 years.
We’ll also have a chat with Dale
Beaumont about Artificial Intelligence, and how that will change
our lives in the coming years.
Where will the real estate market be in 25 years’
time?
- While
most homeowners and real estate investors worry what the value of
their properties today, maybe a better question is “where will
property prices be 25 years from now?” And the good news is that,
believe it or not, the median house price in Sydney could be over
$6 million and the median apartment price in our harbor city could
be close to $3.5 million in 25 years’ time.
- Over
the past 25 years, the median house value nationally
has risen by 412% - an
annual growth rate of 6.8% or $459,900 -
- Melbourne had the highest average annual price
growth – 8.1%
-
- Sydney 7.6%
- Perth
– 6.7%
- Hobart – 6.5%
- Darwin 6.3%
- Canberra – 6.0%
- Brisbane – 5.9%
- Adelaide – 5.9%
- Think
about it - who wouldn’t like to buy their parent’s house for the
price they paid for it 25 years ago?
So, what’s ahead for property values?
- If
property prices were to rise at the same rate as the past twenty
five years, Australia’s median house value would reach $2.9 million
by 2043.
- Here’s what Aussie’s report
forecasts:
-
- Sydney house values $6.3
million
- Melbourne $5.8
million
- Canberra $2.9
million
- Perth $2.5
million
- Hobart $2.4
million
- Brisbane $2.3
million
- Adelaide $1.9
million
How will Artificial Intelligence change our
lives?
- Artificial intelligence is already driving
cars, reading emails and suggesting replies, and making phone
calls
- Digital assistants like Siri, Alexa, and
Cortana are already mainstream
- We
can look forward to more driverless cars within the next five to
ten years
- People might choose to live further from work
if they don’t have to drive themselves – driving time can become
work time or entertainment time.
- Artificial intelligence can be taught to learn
from the past and make predictions for the future. This can be
applied to real estate trends.
- Artificial intelligence could be used to make
phone calls on the behalf of investors to find investment
properties that meet certain criteria.
Links and Resources:
Michael Yardney
Metropole Property Strategists
Rich Habits Poor
Habits
Michael Yardney’s Mentorship
Program
Michael Yardney's Property Renovations and
Development Workshop
Dale Beaumont
Some of our favourite quotes from the
show:
“Another interesting trend
that’s occurred – not surprisingly – is that the proportion of
first homebuyers in the market currently is less.” –Michael
Yardney
“What’s basically happening is
that we’re trading our backyards for balconies and courtyards to
live close to where all of the action is.” –Michael
Yardney
“Sydney’s obviously growing at a
much faster rate than the national averages and is going to add
almost 2 million people to its population by 2037. That’s the
equivalent of adding a new Perth into Sydney by then.
–Michael Yardney
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