Is the REA Group Limited (ASX: REA) share price a buy?

PHOTO: REA Group Limited

The owner of realestate.com.au and other leading Australian property sites like realcommercial.com.au and flatmates.com.au has seen its share price rise by 24% since the start of the year.

Not only has REA Group benefited from the recovery of the share market since Christmas 2018, but it has also grown a fair bit since the Federal election a month ago.

Why the REA Group share price could be a buy

Before the election investors were worried about Australian house prices, the economy, franking credits and so on. With negative gearing changes no longer on the cards, APRA’s interest rate buffer change and the RBA cutting interest rates, REA Group could get see more properties come onto the market and perhaps REA Group could justify higher fees if property prices stop declining.

The market-leading position of REA Group allows it to implement impressive price rises to little detrimental effect, so far at least.

Another reason to like REA Group is its investments in overseas property sites in North America, India and South East Asia. Whilst they aren’t profitable yet, in a few years they could all be decently sized contributors to REA Group’s result.