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22 Mar 2018

Global Financial Crisis: Megacities

The 2008 GFC (Global Financial Crisis) was a financial catastrophe however the subsequent flood of cheap money from central banks around the World has had a profound impact on all assets prices including fixed interest, stocks and property.

If you look at megacities around the World, residential property prices in London for example have increased from 3 times median earnings to 10 times, Sydney to 12 times and Hong Kong to 19.4 times.

This price increase makes it extremely difficult if not unaffordable for locals to buy property in their own city.

We do not know the timing but asset prices will and do eventually mean revert back to their long term averages which gives investors the opportunity to buy quality assets at discounted prices.

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At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me or to call me on +61 2 9267 2322.

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