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Ben Kingsley Blog post by Ben Kingsley

Myth Buster on What drives Property Values

The “Great Aussie Dream” of owning property is part of our DNA and it’s fair to say that most people have an opinion about what makes property values grow. For the Average Joe, these opinions are mostly educated guesses; for many people in the property industry they are often completely off the mark.

Money Magazine – Myth Buster on what drives property value - Sept 2012In this article from Money Magazine (in conjunction to Home Buyer and Property Investor Show 2012), Ben Kingsley, CEO and Founder of Empower Wealth writes about the 7 Myths surrounding Property Value drivers and why some of them are more fictional than factual. He will be explaining the logic behind some common assumptions people make including population growth, the apartment market, land sizes and more by combining facts, historical trends and graphs illustrations.

The first Myth is: Population Growth drives Property Values

According to Ben, commonly spruiked by so-called industry experts and professionals, this theory often missed the mark completely because people don’t understand the true growth driver behind it. When a new population arrives in an area – let’s say it’s 15,000 people (demand) – they need to be accommodated, so you have a short-term shortage of housing (supply). Using the above theory, one would believe that these are the perfect ingredients for price growth, right? Well, not quite, because although these factors are important, the underlying element that drives housing value is the ability to afford to purchase.

Read to find out the rest of the Myths!

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