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The end of the residential property boom?

By Tim Farrelly – CEO of Farrelly’s, and asset allocation consultant to Australian Unity Personal Financial Services

“If returns came out of history books, then librarians would be the richest folks around.”

Warren Buffett

Residential property has been a wonderful investment for millions of Australians over the past 30+ years. However, as Warren Buffett also noted, past returns and future returns are quite different things. We believe that the days of stellar growth in residential property prices in Australian cities are over. The factors that have driven that growth in the past, falling interest rates and a shortage of supply of property, are coming to an end.

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