Property will be a favoured 2014 asset class, especially among those with cash on deposit
There is little doubt property will be a favoured asset class during 2014 especially among those with cash on deposit.
The official cash rate sits at 2.5% and inflation is running at 2.7%.
Rather than see their banked cash nest egg decline in real terms, the inquiring investor will no doubt seek out other opportunities.
And possibly not on the share market given the rollercoaster ride its been offering of late. Wobbles in equities helps interest in property.
Recent figures published by the Reserve Bank of Australia showed term deposits dropped on an annual basis last year for the first time in a decade.
Deposits at the nation’s banks fell 0.6 percent in December 2013 to $538 billion, the first annual decline since 2003, according to the data.
So despite all the sensible forecasts anticipating property price growth rate to perhaps cool a little in intensity, there will still be plenty of investors and SMSFs sizing up the competing asset class yields.
Hopefully working their way through the heat and the hype because there are risks.
