Property Investing

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.

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.

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.

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?