What's the biggest killer for CAPITAL GROWTH?

Discussion in 'Property Market Economics' started by MTR, 15th May, 2017.

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  1. MTR

    MTR Well-Known Member

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    I would say the biggest killer is OVERSUPPLY?

    Developers coming into markets and swamping suburbs with the same product.
     
    MTR, 15th May, 2017
    #1
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  2. Phase2

    Phase2 Well-Known Member

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    Depends on what assets you're talking about and in property, where they're located.. for resi property, I'd say that in developed areas of capital cities, it's generally lack of growth in 'available income' to spend on a mortgage.

    In outer areas of capitals and in regional areas, oversupply is the killer..
     
    Phase2, 15th May, 2017
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  3. Bayview

    Bayview Well-Known Member

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    Also; under supply of credit.
     
    Bayview, 15th May, 2017
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  4. Xenia

    Xenia Well-Known Member

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    Investors!!!

    Areas that have a high investor ratio have the potential to develop into ghettos.

    The best growth areas have high levels owner occupiers.
     
    Xenia, 15th May, 2017
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  5. TMNT

    TMNT Well-Known Member

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    MARRIAGE!!!!!!!!!!!!!:)
     
    TMNT, 15th May, 2017
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  6. JL1

    JL1 Well-Known Member

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    stalling jobs and population growth.
     
    JL1, 15th May, 2017
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  7. paulF

    paulF Well-Known Member

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    Land. Everything else follows.
     
    paulF, 15th May, 2017
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  8. MTR

    MTR Well-Known Member

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    That old chestnut divorce
     
    MTR, 15th May, 2017
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  9. tommo c

    tommo c Well-Known Member

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    Oversupply of land.

    **Queue outer ring Melbourne suburbs debate...
     
    tommo c, 15th May, 2017
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  10. Marg4000

    Marg4000 Well-Known Member

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    Lack of employment.
    Marg
     
    Marg4000, 15th May, 2017
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  11. MyPropertyPro

    MyPropertyPro REBAA Buyer's Agents Sutherland Shire & Surrounds Business Member

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    All of these reasons are correct but work in concert to affect supply and/or demand i.e. they are really just specific drivers of the supply/demand balance. Capital growth can be killed by many different reasons on either side.

    I would say big ticket items are land release/apartment release on the supply side (check out Brisbane apartments and or many 'green fields' estates) and affordability (income vs. interest rates) on the demand side.

    p.s. this is my 500th post!
     
    MyPropertyPro, 15th May, 2017
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  12. Scott No Mates

    Scott No Mates Well-Known Member

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    They both contribute to demand (marriage forming new household from relocating, divorce forming 1 additional household).

    The real killer is timing. If you pick the top of the market to buy, you're in for a long wait to things to turn around.
     
    Scott No Mates, 15th May, 2017
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  13. DaveM

    DaveM Well-Known Member

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    Turning off caps lock usually kills capital growth
     
    DaveM, 15th May, 2017
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  14. Omnidragon

    Omnidragon Well-Known Member

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    Terrible partners
     
    Omnidragon, 15th May, 2017
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  15. JDP1

    JDP1 Well-Known Member

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    Biggest killers of cg are 2 fold (in about equal capacity/influence) :
    Demand and supply.
     
    JDP1, 15th May, 2017
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  16. MTR

    MTR Well-Known Member

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    I would say number 1.
     
    MTR, 15th May, 2017
    #16
  17. MTR

    MTR Well-Known Member

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    Happy 500th birthday...;):p you don't look a day over 25
     
    MTR, 15th May, 2017
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  18. Scott No Mates

    Scott No Mates Well-Known Member

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    I don't quite understand that?
     
    Scott No Mates, 15th May, 2017
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  19. TMNT

    TMNT Well-Known Member

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    suppose dvorce is a good thinf when yur investment property has dippedby 50% in value,
     
    TMNT, 15th May, 2017
    #19
  20. Ross Forrester

    Ross Forrester Well-Known Member

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    Low future demand.
    Low future income growth.
    Lack of scarcity.
    Inability to control the asset.
     
    Ross Forrester, 15th May, 2017
    #20
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