Property rebound continues
Property prices are now increasing, including in Melbourne.
Prices in Melbourne fell by a bit more than 6 per cent this year, during the lockdown, but are now recovering.
To date the recovery has been driven overwhelmingly by homebuyers.
However, with fixed mortgage rates continuing to fall, the prospects of solid cashflow - even in Sydney and Melbourne - will undoubtedly bring more investors back into the market in 2021.
Peter Tulip, until recently of the Reserve Bank, believes that serviceability buffers being applied to fixed rate loans is a policy error.
