August 26, 2023

2 sense: Scott Keck’s rental supply solution, Evergrande collapse, & Brisbane becomes price leader!

39 minutes

Welcome to this week's episode of 2 Sense on The Australian Property Podcast, where we break down the news headlines and tell you what this means for you and your property.

Buyer's Agent Pete Wargent and mortgage Broker (who also has just been awarded Australia's #1 mortgage broker), Chris Bates, are discussing how spare rooms are causing undersupply, Evergrande collapse & Brisbane house pricing.

On this episode:

Story 1 – Scott Keck article on using our spare bedrooms

His point? There are so many empty bedrooms in Australia that never get used if you are looking at the Census numbers. And we are now in a rental crisis.

What does it mean and why? Policies to make more efficient use of the housing stock

What do we think will happen? Incentives to allow borders without CGT implications?

Key takeaways for property investors and homebuyers?

Story 2 – China’s 2nd largest developer Evergrande collapsed

What happened and why? $81bn losses over 2 years as Chinese real estate market sinks

Chapter 15 bankruptcy in New York filed and creditors are scrabbling to recover debts

What does it mean for China? Recession, deflation, stimulus? Risk of Contagion?

What does it mean for Australia? Commodity prices like iron ore are under pressure, Chinese developers exiting, and capital flight from China to Aus

Should we be worried? Watch closely, but don’t panic

Story 3 – Brisbane becomes house price leader

Brisbane housing prices up 4% over the past 3 months, ahead of Sydney

What does it mean? The downturn has been fairly shallow, on average. Some property types have done better than others. Units have done well, first time in 12 years as borrowing capacity is down.

What do we think will happen?

What are people buying? Focus on quality, flood-free, 10-year horizon out to the 2023 Olympics.

Implications for investors and homebuyers? Quality stock levels are still quite tight, need to be clear on your brief and decisive and do your DD. Fundamentals for Brisbane are strong – high population growth and a stock shortage, and the state Budget appears robust

Australian Property Podcast resources:

https://www.macrobusiness.com.au/2023/08/rental-crisis-forces-australians-into-share-housing/

https://www.linkedin.com/pulse/my-thoughts-accommodation-crisis-scott-keck/

https://www.theguardian.com/business/2023/aug/18/chinas-struggling-property-giant-evergrande-files-for-bankruptcy-protection-in-us

https://www.macrobusiness.com.au/2023/08/brisbane-becomes-house-price-leader/

Australian Property Podcast online - videos, notes & resources

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Chris' mortgage broking

Amy's new property course

Amy's 100-point checklist (PDF)

Pete Wargent's property coaching

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INFORMATION WARNING!

This podcast contains general financial information only. That means the information does not take into account your objectives, financial situation, or needs. Because of that, you should consider if the information is appropriate to you and your needs, before acting on it. If you’re confused about what that means or what your needs are, you should always consult a licensed and trusted financial planner. Unfortunately, we cannot guarantee the accuracy of the information in this podcast, including any financial, taxation, and/or legal information. Remember, past performance is not a reliable indicator of future performance. The Rask Group is NOT a qualified tax accountant, financial (tax) adviser, or financial adviser.

Full individual disclosures for each guest are available via the show notes page. Owen and The Rask Group Pty Ltd do NOT receive anything for mentioning Super funds, products, shares, bank accounts, etc.

Access The Rask Group's Financial Services Guide (FSG): https://www.rask.com.au/fsg

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