Monday, February 20, 2012
Brisbane Property Strategy
Here is a story, where two Metropole agents have a discussion about the Brisbane property markets. Listen here for what it is worth. "A lot of segments of Queensland have hurt over the past 12 months." Interestingly, they compare the decline in property values with declines in share prices -- but there are three additional factors to take into account here -- firstly, the income received from shares by way of franked dividends are much higher than net returns from property (good shares return about 3 times as much income as good property on average); secondly, most people who buy shares are not as highly leveraged as people who buy property, so a 6% decrease in value in property often is actually a 50% capital loss for a leveraged investor; and thirdly, shares a more liquid and have significantly less transaction costs compared with property.