In this week's Ep#74, Dave, Cate and Pete take you through: Market insights 1. ABS and Core Logic data reinforces strong growth for 2021 According to ABS data for the December quarter of 2020, each capital city recorded growth between 2.6% and 3.4% which is between 10%1 and 15% annualised. CoreLogic data, which is more recent, for start of this year suggests even stronger growth of between 3% and 5% for Sydney, Melbourne, Adelaide, Perth and Brisbane which is in the 15% to 20% range when extrapolated. Property Planning Australia has now revised its forecast up to 15% house price growth for 2021. 2. FOMO causing irrational buying behaviour from first home buyers Fear of missing out is driving some first-time buyers, particularly those backed by the bank of mum and dad, to take "over the top" measures to secure properties. The Property Buyer shares her experiences at the coalface. 3. NZ Government expand powers of the RBNZ The Reserve Bank of New Zealand is now the first reserve bank in the world to include in its remit how its decisions may stabilise house prices. This part of the NZ government determination to take action against rapidly escalating house prices that have increased by over 20% over the last year. NZ were a world leader being the first bank to include a target for inflation under the Reserve Bank powers which all major economies subsequently followed. Could history be about to repeat this move by the NZ government be a harbinger of what's to come as other Federal Reserve follow suit in the coming months and years. 4. Property price growth is a world-wide phenomenon Across the globe, 2020 was the fastest year of house price growth since 2016. But 2021 could set even larger records. Canada, NZ and the US have seen housing markets rise faster than Australia, but Australia is on the move following in there footsteps as reserve bank employ previously unseen levels of monetary policy through rate setting and bond buying. 5. APRA says increase in debt to income ratio is not a concern Data released by APRA for the December 2020 quarter show that the number of property owners with debt greater than 6 times their income has almost doubled. The commentary from APRA is that debt to income ratios are broadly in line with historical averages and not something that they are concerned about currently with rates so low, but will this change? We think yes, the question is whether it is in 2021 or 2022. Secret steps to buying a house - The seven 'S's 1. State Property cycles play a part in determining price increases (and decreases) so when you do buy, you want to ensure that you buy in a state that is about to enter the upward swing of the property cycle. If your plan is to hold for the long-term, the stage of the property cycle diminishes in importance. 2. (S)City or Town Technically, not an 'S', but phonetically it works! When selecting a city or a town, understanding the capital growth drivers is paramount, including changing demographics and employment opportunities. 3. Suburb Just like cities, regional towns also have desirable suburbs primed for capital growth and gentrification and those that are best to stear clear of! The trio share the signs and data to look out for. 4. Street In blue chip suburbs, the A-grade streets are evident. But in a gentrifying suburb, it may not be known yet and you have to go looking. The trio share with you the secret characteristics of spotting an A-grade street. 5. Style The best styles of property, especially in our eastern an...