Residential Investment

Residential Apartment Market - Observation April 2016

The number of properties on the market with “residential development upside” increases every week. Nearly all have approved DAs. Essentially they are devlopers trying to exit positions. My criteria in assessing these properties is they have to be income producing for a period that will get through to the next recovery in the residential market. Then the underlying developed land value must exceed the intrinsic worth of the commercial investment otherwise when you develop the site you are destroying investor equity. Read more →

Residential Property Fears

Is the Australian residential property market so overpriced that we should be shorting our banks? Or is it reasonably priced because of low interest rates? In attempting to assess residential property’s fundamental worth we need to recognise that residential property has two very different functions - as a home providing safe shelter and as an investment providing a return. Read more →