The australian dollar has fluctuated significantly over the last 10 years or so starting at $.70
it grew to over dollar 10 and has now fallen back to under a dollar but how does the australian
dollar affect property prices and is there a link between the two at all today's episode
is brought to you by blue Horizons property.com call and Heleen help their clients invest
in high growth positive cash flow properties in this wrap basin in Queensland in rental
yields of 10% or 14% so interesting to you then head over to blue Horizons property.com
tonight let's start by looking at where changes in the Aussie dollar may affect prices and
if we can find a link or a cop correlation between fluctuating australian dollar and
fluctuating house prices will firstly the lining of the Aussie dollar promotes tourism
in astray because what this means is that more people from outside the world can come
to australia for a cost effective holiday and so this promotes tourism and means were
more likely to have more troops in the country so the lorry of the Aussie dollar is going
to benefit truce dominant areas places like Keynes or even the Gold Coast we've got these
micro-economy is based on the fluctuations in tourism the increase in the Aussie dollar
when the Aussie dollar goes our can affect exports because exports become more expensive
and people are less likely to pay for it because they're based on the Australian dollar so
this could affect places such as mining could affect other micro economic townships as well
that rely heavily on exports so the Loring of the dollar could have a positive affects
in these mining towns and also injuries and towns as well to looking at the fluctuations
in Aussie dollar from 2003 at Rome Sir over a dollar 10 and then gone back but we've seen
consistent growth in the strain market over that period even when prices of the Aussie
dollar went down seven 2003 two 2011 so in the eight year period the Aussie dollar group
from $0.70 US to $1.10 or $1.11 US that is a 57% growth rate in that period and adverse
and 9% growth rate in Sydney the median house prices to drop 57% versus 9% so doesn't necessarily
look like there's a huge correlation there will also have property prices continue to
increase despite the Aussie dollar dropping below one dollar US so when the Aussie dollar
grew significantly house prices didn't grow in line with the and when Aussie dollar drop
down house prices didn't drop down with itself unlikely that was seeing a huge correlation
between the two today's episode is brought to you by blue Horizons property.com my listeners
are constantly telling me that the number one thing holding them back from investing
in property is actually being able fine the positive cash flow properties when I first
met core and Heleen from blue Horizons property.com one of the first things I asked them is do
you help your clients invest in positive cash flow properties and their response was music
to my ears they said almost all of their properties were positive cash flow properties with many
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Heleen personally invested in the Saran bass and the high-growth areas that they help their
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going to be pleasantly surprised with what you find we also need to look at what we comparing
the australian dollar to we only generally low at the australian dollar against the US
dollar but what about the a strained dollar versus the yen or versus pound or versus the
euro because the US dollar has fluctuations of the time so why only comparing the australian
dollar to the US dollar it's not giving you a perfect idea of how the Australian dollar
is growing and changing in the global market so just by looking at the comparison between
two currencies isn't really give us a good enough idea and to be able to collect all
the Dada and how it affects everything there were probably so much $much happening in fluctuations
of the strain dollar that would be hard to type any changes in the strain property market
the changes in the strain dollar compared to the rest of the world so there is not a
correlation that I can find that you can bank on this strange house prices the whole market
is affected by so many different things that so hard to just there would be a strain, except
in this way you've got the reserve bank who have an influence on health house prices with
their low interest rates or raising interest rates this obviously has a significant effect
on house prices in the country you also got politicians that can affect legislation that
can change house prices imagine if they were to take away the tax benefits of properly
tomorrow how house prices would significantly drop in value you got the australian economy
that we need to look at as well when the economy is booming and people are doing great jobs
earning more money it's more likely that house prices are going to increase was that the
economy is suffering will then house prices are likely to have an likely to have a role
in fact onto house prices you've also got issues of supplies of men which is more locally
based in areas where there is lots of growth are not enough construction you've got too
much domain and not enough supply illegal areas where the people leaving we just had
an influx of new build properties and there is a higher why then there is the minimum
that can affect prices as well you've also got foreign investment that you need to take
into account which is probably the things that influence house prices compare to the
strain, foreign investment is probably the only one that I would try to find a correlation
between but really as Investar is probably not something that I would be making a decision
on maybe something that I take into consideration especially lemony go-ahead and invest in the
US are run going to invest in property in another country but in terms of the local
strain market not something that I would really go to the bank on you more videos podcasts
or articles head over on property.com.au a view on a full transcription of this episode
bingo on property.com.au/123 episode 123 so until tomorrow remember that your long-term
success is only achieved one day at a time I love it when the Aussie dollar goes off
into the head of the US and London outsourcing thing that I do all boat viewers from fixing
US currently the man with the live there will be paid in US dollars when Aussie dollar goes
up things that I'm doing more bang for my bathroom goes down many designers of the dollar
is good but not the rest of not everyone loves a the isn't a some people want to be the loss
of exports