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Investment Strategy

February 15, 2024

Stage 3 Tax Cuts – Good news for property?

Recently, the Labor government has announced new changes to the tax reform plan, originally legislated back in 2019 by the then Liberal government. In short, the Labor’s new changes have reduced the cut applied to high-income earners, and marginally increased the tax cut for mid and low-income earners.
February 15, 2024

YIMBYism: The Movement Trying to Transform Housing

Yes, it is a silly word, but “Yes-In-My-Backyard-ism”, represents some very serious housing ideas that are rapidly gaining support in Australia and around the world. If you’re unfamiliar with the term, this article serves as a brief introduction to the movement and its beliefs. We’ll also look at what its popularity could mean for Australia, and what informed investors need to consider.
February 22, 2024

Hedonic Indices: What Investors Need to Know

If you’ve ever read a news article about Australian real estate, there’s a decent chance you’ve come across CoreLogic’s hedonic indices. These indices, published monthly, have become something of a benchmark in the industry for understanding the comparative performance of Australian property markets over time. Besides our own monthly market smart reports, even the biggest Australian publications have come to rely on these figures published by CoreLogic.
February 26, 2024

Can We Trust Property Market Values?

In our previous article, we explained how Hedonic Value Indices (HVIs) such as those published by CoreLogic, can measure changes in property market values, despite only a small number of houses having recent sale prices. From that article, you’ll remember that the accuracy of a HVI relies upon details about property quality – bedroom counts, bathroom counts, land size, construction date, are all things that HVIs use to better provide context for sales that have taken place. In other words, a house selling for double the local median, probably has much better features than other houses nearby. Knowing this, we don’t conclude that the value of the entire area has doubled. Since we’ve accounted for the higher quality of that property, we know it was an outlier, and we can produce a more accurate estimate of market change.