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Should Investors worry about a housing bubble ?

There has been a lot of press recently regarding increasing housing values in Australia and some concern about the possibility of a housing bubble.

The attached article by Michael Collins, an analyst at Fidelity, explores the housing price situation worldwide.

Michael believes that a housing bubble is possible in some countries but at this stage increasing values reflect improving demand in a post GFC environment.

Residential property values in Australia rose at an annualised rate of around 10% to June 2013, the fastest growth rate in more than three years.

However, it is important to remember that property values will vary with supply and demand and there are some areas where values are quite depressed.

The current increase in Australian housing prices is largely fuelled by very low interest rates plus increase in demand in Sydney and Melbourne in particular.

Please review the Fidelity article and call our office if you would like to discuss your situation in more detail.

http://communications.fidelity.com.au/link/id/zzzz52815b3a69c39029Pzzzz4e09602b18fa5859/page.html

We have access to very competitive finance or refinance from 4.29% fixed.


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