December 8, 2023

30th November 2023 – Property Market Update

This month’s Market Smart highlights a growing contrast between overall slowing growth and the exceptional performance of a select few regions – especially Perth, which remains the fastest growing city in the country. CoreLogic's national Home Value Index rose by a modest 0.6% in November, the smallest monthly gain since February, indicating a shift in the market's momentum. Read on as we examine the dynamic factors defining this shift and explore what it all means for investors.
December 6, 2023

Cheaper To Buy Than Rent – What Are The Implications?

According to the most recent PropTrack Market Insight Report, an intriguing trend has emerged within the Queensland property market: a notable 53.3% of all residential properties are now cheaper to purchase than rent. This figure stands in marked contrast to the national average of only 36%. In February this year, the national figure was just 9.1%. The differences among these figures prompt a couple of important questions: What factors underlie this trend and what ramifications might it create for markets moving forward?
November 28, 2023

Do Property Prices Really Double Every 7 Years?

You’ve probably heard that over a 7-10 year period, the value of Australian real estate will always double like clockwork. It’s a common rule of thumb. But just how true is this? Does the pattern of history prove this to be false? Or is it indeed an accurate, high-level precis of the market’s intricacies? To begin with, it’s important to understand what is required for a house to double in value. It sounds extraordinary, but thanks to the power of compounding, a house price doubling over 7 years requires an annual growth rate of just over 10.2%, while a 10-year period needs only 7.2% growth each year.
November 20, 2023

Is The Property Boom-bust Cycle Real?

The concept of the boom-bust cycle has a long history. In fact, it goes all the way back to a major stock market crash known as the Panic of 1825, when large investments failed in several South America countries (including a fake country!). The crisis led to the collapse of 12 banks in Britain alone and was felt across Europe and both American continents. Until this point, economists had generally believed that economic downturns were the result of purely external factors, like war – but the situation in 1825 didn’t seem to fit this rule. Swiss economist De Sismondi was first to point this out and thus give rise to concept of the “boom-bust”, or economic cycle. The idea being that capitalist economies are subject to continual cycles of economic expansion and contraction.
November 14, 2023

31st October 2023 – Property Market Update

Join us as a we take a quick look at the Australian property market throughout October 2023. We'll point out the highs, the lows, and everything in between across our capital cities. We'll also delve into the forces that have been driving these changes and share our thoughts on where we are heading in the months ahead.
November 13, 2023

Do Cheap Houses Make Better Investments?

Suppose you’ve got $2 million to invest in property. What would your approach be? Spend it all on one house? Or split it across a couple? Have you ever considered how price point can impact a property’s performance? One House or Many? Each approach has distinct pros and cons.
November 6, 2023

What Will The Olympics Do For Brisbane Property?

In our previous article, we described the current window of opportunity for investors, particularly within markets like Brisbane.   Among other things, our theory of continued momentum is built upon the ongoing supply-demand imbalance, coupled with the apparent market resilience displayed during the current rate hike cycle. With expectations that interest rates will soften by late 2024, the market seems poised for an imminent bump in prices – making now a seemingly excellent time to buy.   But, looking closely at Brisbane, what indicators are there of growth beyond the next few years?
October 31, 2023

Why 2024 Will Be a Big Year for Property Investors

As we edge ever closer to the new year, Australian property just might be shaping up for an impressive surge in late 2024. To understand why 2024 will be such an important year for property, read on: Demographic Drive It’s been shaping the property narrative for some months now, and Australia's burgeoning population will remain the cornerstone of the property’s price ascension. The Demography group, Informed Decision, estimates that by 2041, Australia’s population will burgeon by 7.4 million, mandating the construction of two million additional homes.
October 24, 2023

Is a Property Crash Inevitable?

As of most recent mid-2022 figures, it was reported that Australia has “the third-highest house price-to-income ratio in the world” up at 8.5. Back in June 2001 this figure was just 4.5. In Tasmania, an average wage is currently enough to afford just 5% of homes, the lowest percentage of any state, though it isn’t a whole lot better elsewhere. According to a recent PropTrack report, even a six-figure income is enough to afford just 13% of homes, while a household income of $64,000 a year is enough for only 3%. Current forecasts indicate that these figures will continue to deteriorate.
October 17, 2023

How Does Crime Impact The Property Market?

Everyone knows the old adage, “crime doesn’t pay”. But is it true for the property? And how much attention should property investors pay to crime rates? You might expect that fewer people want to live somewhere with a high crime rate, meaning high crime causes the property market to suffer. But this isn’t always the full story. A large body of academic research indicates an obvious causal relationship between property prices and crime, and some similar results have been identified here in Australia.