Property

First it was the pandemic, then rising interest rates that battered listed property trusts. For those who might be tempted to get back into this market, their investment shopping list should include five key factors before taking the plunge.

While the property boom has dramatically increased household wealth, it has concentrated investors’ portfolios in this asset class. A market shake-out could have dire financial consequences, especially for those in retirement.

Labor’s proposal to tax earnings on super balances above $3 million gave the Greens the perfect opportunity to accuse SMSFs of being property centric. Pity the facts don’t support their argument.

Trilogy is cashing in on the growing demand for industrial property with the $29 million acquisition of a multiple use Brendale premise – one of Australia’s premier industrial precincts.

Investing in property within a self-managed super fund offers the potential for substantial tax savings, but it’s not for those lacking property market experience. Sophisticated investors should consider several key factors, including costs and compliance, to ensure success within their SMSFs.

The alternative asset manager, which recently disclosed a 4 per cent stake in Lendlease, says the multinational construction company will need to quickly de-lever its balance sheet to turn around three decades of “disappointing” shareholder returns.

Rate hikes are causing anxiety for Australian mortgage holders, with new research showing seven out of 10 worry about missing repayments. As large numbers of fixed-rate mortgages expire, analysts say distressed property selling is likely to pick up from its thus-far benign levels.

While markets expected a pause, the RBA board’s hawkish tone implying a further cut in August surprised many. For Australia’s property sector in particular, observers say the path to a soft landing may be getting even more treacherous.

Economists attributed the rebound partly to the market’s expectations that interest rates had peaked. But the other key driver – the drastic supply/demand imbalance – means higher prices, especially for rents, may be further complicating the central bank’s task.

While the housing market shows faint signs of recovery following the RBA’s decision to pause interest rate hikes, those benefits have not yet begun to flow through to Australia’s rental market, new research shows, with all signs pointing to a long-term rental crisis.

While real estate investment trusts have been touted as risk investments, analysis say Australian REITs like Charter Hall and Dexus have solid fundamentals, with income underpinned by long leases to strong tenants.

Recent buyers of homes are at the greatest risk of negative equity, and the rising interest rate environment increases the likelihood that some homebuyers will default on their loans. With Australia’s large cohort of new homeowners, that could lead to losses for the big banks.