Episode 56 - How low can house prices go

Has the price of your house fallen by 10%, 15% or even 20%? Who do you believe? The newspaper, your local real estate agent or trusted financial planner?

To help shed light on the subject, we have podcast favorite Tim Farrelly. Tim is the owner of Farrelly’s Investment Strategy, a company that provides consulting services to wealth managers. He joins me today to discuss the topic of house prices and just how low they can actually go. Tim shares reliable sources of financial and property data, discusses bank implications on price corrections, and shares his insights on house pricing trends in Australia.

Don’t miss this week’s segment of Reuben’s Rant where I share my opinion on whether it’s proper for banks to look at your expenses line by line before approving your loan application.

"If everything the government did was sensible, we'd all be better off.” - Tim Farelly

This week on The Finance Hour Podcast:

• Tim's views on the recent economic conditions in Australia.
• Interest rates and the implications for borrowers.
• The big driver of bank profit growth in the past few years.
• His expectations regarding loan growth in the short-term.
• A reliable on-line source for property prices.
• How the real estate industry makes the law of supply and demand complicated.
• Possible short and long-term scenarios on the effects of interest rate fluctuations.
• Is there more uncertainty today than there was in the past?
• His concerns regarding the growth of the Chinese economy.

Resources Mentioned:

• CoreLogic

Connect with Tim Farrelly:

• LinkedIn
• Farrelly’s Investment Strategy

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