Casting Real Estate Investment Horizons Beyond Near-Term

Governments around the world are coming in fast and furious with economic supportive measures to combat the coronavirus situation. In its latest move, Australia’s central bank moved decisively to cut interest rates to record low levels while signalling to the market it is prepared to do more. Immediately, major banks passed on the rate cuts to homebuyers, giving tailwinds to an already robust home market rebound.

Beyond the volatility that is most evident in the stock market, we expect the economic impact of the virus to be transient. History is clear on this point. As real estate investors with relatively longer investment horizons, staying vigilant to attractive opportunities thrown up during this period while remaining aligned with fundamentals shaped by mega-trends is perhaps one of the best winning investment formulas to adopt.

What caught our eyes this week

RBA Cuts Rate to 0.5% to Ease Virus Hurt

The West Australian – RBA has cut the cash rate to a new record low of 0.5 per cent as it moves to buttress the economy against a worse-than-expected hit from the coronavirus. The RBA board remains prepared to ease monetary policy further.

House Prices Surge in February, Sending Most Capitals Back to Record Levels

ABC News – Home price rises across every capital city except Darwin drove national dwelling prices 1.1 per cent higher last month, with give capital cities now recording record-high property values.

Read also: Knowing Your Capital Stack

Industrial Investment Breaks Records, Changing the Landscape

JLL – Industrial transaction volumes in the United States exceeded US$100 billion in 2019 for the first time in sector history, according to JLL Research, with investment boosted by a number of mega deals.

How Real Estate Will Drive Smart Home Adoption

Forbes – The Consumer Electronic Show of 2020 (CES) was another amazing display featuring over 170,000 guests crammed into Las Vegas to explore what’s next in the decade ahead. When it comes to smart homes, there was almost no category unturned.

Read also: Blockchain in Real Estate Investment: Hope or Hype?
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Vantage Point is a curated cache of the latest trends in real estate investing repurposed from media outlets and websites around the globe. Each article is a succinct wrap-up of key news points for an easy read. Outbound links, embedded in each editorial, are attributed to original external sources. RealVantage makes no warranties or representations regarding the accuracy, completeness or veracity of the information or data contained in such external sources. Editorials under the Vantage Point vertical do not reflect the views of RealVantage, in part, or in its entirety.

About RealVantage

RealVantage is a leading real estate co-investment platform, licensed and regulated by the Monetary Authority of Singapore (MAS), that allows our investors to diversify across markets, overseas properties, sectors and investment strategies.

The team at RealVantage are highly qualified professionals who brings about a multi-disciplinary vision and approach in their respective fields towards business development, management, and client satisfaction. The team is led by distinguished Board of Advisors and advisory committee who provide cross-functional and multi-disciplinary expertise to the RealVantage team ranging from real estate, corporate finance, technology, venture capital, and startups growth. The team's philosophy, core values, and technological edge help clients build a diversified and high-performing real estate investment portfolio.

Get in touch with RealVantage today to see how they can help you in your real estate investment journey.

Disclaimer: The information and/or documents contained in this article does not constitute financial advice and is meant for educational purposes. Please consult your financial advisor, accountant, and/or attorney before proceeding with any financial/real estate investments.