While the recent rate cuts by the RBA are perceived as an overall positive for the property market, there are still risks investors should remain aware of. Tim Johansen, Managing Director, Capital & Debt at Qualitas, points out that the RBA is cutting rates for a reason – the economy and productivity are faltering, unemployment is a bit too high, and wage growth is stagnant. There is also the risk that the recovery in the residential market takes longer than expected.
However, as the cycle progresses there will be opportunities for investors in commercial real estate debt.
Watch the exclusive video below to really understand what is happening in the Australian property sector right now.
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