Cam McLellan and Allister Lewison share their insights and predictions for the Australian property market in 2025, highlighting key drivers, emerging trends, and practical advice to help property investors kickstart the New Year with confidence.

Market Trends:

• Supply and Demand: A housing shortage and rising immigration are driving prices upward.
• Interest Rates: Predictions suggest a potential decline in interest rates, which could lead to significant property price growth (1% rate drop = 10% price increase).
• Affordability Challenges: While inflation eases, high interest rates still limit borrowing capacity. However, property prices continue to rise, even under these constraints.

Capital City Analysis:

• Melbourne: Despite being undervalued compared to Sydney, Melbourne's market is poised for a rebound as investor equity from other cities flows in. Land tax concerns are viewed as minor compared to potential capital gains. Sydney: Serves as a lead indicator for market trends, with strong business-driven growth. Brisbane: Experiencing record buyer activity, indicating a hot market. Perth: Previously avoided by investors but now showing high growth potential due to rental increases and undersupply in specific pockets.
• Buyer Sentiment:
• Confidence in property as a long-term investment is rising, driven by positive media narratives and shifting perceptions.
• Consumer sentiment is at its highest in three years, indicating growing optimism.

Predictions for 2025:

• Strong price growth across all major markets, particularly in Melbourne, Brisbane, and Perth.
• Investors who act now are likely to benefit significantly, avoiding the regret of missing opportunities.

Actionable Advice:

• The year-end holiday period is an ideal time to plan and prepare for investments.
• Understand the tangible benefits of property gains (e.g., leveraging equity for further investments or life goals).

Facebook: http://www.facebook.com/opencorp
Twitter: @OpenCorp_au
LinkedIn: https://www.linkedin.com/company/opencorp-au
Instagram: @OpenCorp

Ross and his family, including his wife Jen and their three children, recently transitioned from their old home to a new upgraded property while also investing in a Brisbane property. This discussion explores their journey, motivations, and experiences with property investment.

Transition to a New Home and Investment Property:

• Ross and Jen decided to upgrade their family home for a better lifestyle while investing in Brisbane.
• 
  
• Their investment property, valued in the mid-to-high $500,000s, has appreciated significantly due to strategic location choices and developing infrastructure.

Remote Property Purchase Process:

• The couple purchased their investment property sight unseen, a growing trend (93% of clients) facilitated by OpenCorp’s remote services during COVID-19.
• They trusted OpenCorp’s team despite not meeting face-to-face, citing smooth communication and a strong reputation as key factors.

Motivations for Investing:

• Their goals included securing financial stability for their family and leveraging property as a long-term investment strategy.
• Ross highlighted the importance of unemotional decision-making, focusing on market growth potential rather than personal attachment to the property.

Challenges and Process Management:

• Initial challenges included navigating the volume of paperwork, contracts, and communication during the build process.OpenCorp’s team, including finance brokers, property strategists, and portfolio managers, provided comprehensive support, simplifying the process and ensuring confidence in decision-making.

Positive Investment Outcomes:

• Strategic location choices in Brisbane, near infrastructure development, led to significant property value growth shortly after completion.
• Ross appreciated OpenCorp’s guidance in identifying areas with high growth potential before infrastructure was fully established.

Future Goals:

• Ross and Jen are focused on balancing debt repayment for their home and expanding their investment portfolio.
• They feel more confident about their financial future thanks to their investment strategy.

Facebook: http://www.facebook.com/opencorp
Twitter: @OpenCorp_au
LinkedIn: https://www.linkedin.com/company/opencorp-au
Instagram: @OpenCorp

OpenCorp client Matt details his journey from running a business to building a diverse property portfolio, emphasising long-term planning and overcoming scepticism. Matt shares his "light bulb moment," when his property portfolio outpaced his clinic's income.

Introduction:

• Matt transitioned from podiatry to property investment after realising his property portfolio was outperforming his earned income.
• He highlights his experience managing three podiatry clinics before entering property investment full-time.

Light Bulb Moments:

• Matt's "aha moment" was seeing his property portfolio’s growth surpass his business income.
• He addresses misconceptions about property investing, such as it being only for the wealthy, emphasising affordability and strategic planning.

Personal Journey:

• He and his wife Kristy began as "rentvestors," renting in Melbourne’s affluent Bayside area while investing in properties elsewhere.
• They overcame common concerns like holding costs and tenant issues by working with OpenCorp.

Property Portfolio Development:

• Matt started investing in 2020 with properties in Brisbane, achieving significant growth.
• He expanded his portfolio with properties in Perth despite challenges like construction delays, later benefiting from substantial rental yields and price appreciation.

Family and Mindset:

• Matt didn’t inherit investment knowledge but cultivated an abundance mindset through business coaching and learning.
• He advocates for setting clear goals and timelines, such as building a portfolio to generate passive income and eventually fund a dream home.

Transition to OpenCorp:

• As a property strategist, Matt applies his background in problem-solving to help clients achieve financial freedom.
• He emphasises the value of expert guidance, comparing OpenCorp’s role to that of a coach or personal trainer for property investment.

Advice to New Investors:

• Matt encourages starting as soon as possible, addressing fears by seeking expert advice.
• He underscores the importance of leveraging data-driven strategies rather than relying on anecdotal research or hesitation.

Facebook: http://www.facebook.com/opencorp
Twitter: @OpenCorp_au
LinkedIn: https://www.linkedin.com/company/opencorp-au
Instagram: @OpenCorp

In this episode of Brick to the Future, hosts Cam McLellan & Allison Lewison interview Pascal Butler about his unique journey into property investing. Pascal, from Melbourne's Box Hill, shares insights into his background and decision to pursue investment properties rather than purchasing a personal residence.

Journey to Property Investment:

• Pascal and Georgia preferred living in Box Hill but found purchasing a home there unattainable due to high costs.
• They decided to invest in property rather than buying a personal residence, also known as "rentvesting".

Motivation and Influences:

• Inspiration came after reading a property investment book by Cam McLellan. "My Four Year Old the Property Investor"
• Pascal’s father, after reading the same book, offered to use equity from his home to help fund Pascal's entry into property investing.

Myths and Misconceptions:

• Pascal challenges the idea that “rent money is dead money,” explaining that renting can be viable if you’re investing wisely.
• Discusses how outdated ideas like these often stem from industry marketing tactics.

Financial Support and Strategy:

• With OpenCorp’s assistance, Pascal’s father released $100,000 equity to fund Pascal’s first investment.
• OpenCorp provided a comprehensive plan, or “roadmap,” to help him grow his portfolio over time.

Challenges and Sacrifices:

• To prove his financial commitment, Pascal sold his car and adhered to a strict savings plan.
• Overcame initial fears about debt with guidance on the structure and financial viability of the investment.

Investment Progress:

• After purchasing his first property with OpenCorp, Pascal is on track for a second.
• His portfolio has already grown significantly, with $200,000 gained in equity within 18 months.

Advice and Takeaways:

• Pascal emphasises the importance of planning, education, and taking action rather than relying on outdated financial beliefs.
• Encourages parents to consider helping their children with equity to assist with getting into the market. 

Pascal’s experience showcases how family support, a clear investment strategy, and expert guidance can make property investment accessible and rewarding.

Facebook: http://www.facebook.com/opencorp
Twitter: @OpenCorp_au
LinkedIn: https://www.linkedin.com/company/opencorp-au
Instagram: @OpenCorp

In today's episode Cam & Al cover an in-depth discussion on negative gearing in Australia, focusing on its impact on property investors and the housing market.

Definition and Basic Concept: Negative gearing is a tax offset where investors deduct property losses from their taxable income, reducing tax liability. It’s commonly used by average Australians earning around $87,000.

Rationale for Negative Gearing: Negative gearing helps investors by having tenants, the government (via tax breaks), and the investor collectively cover the costs, making property investment more accessible, especially for first-time investors.

Historical Context and Political Debates: Previous attempts to remove negative gearing (e.g., 1987) led to rent hikes and investor sell-offs. The policy was reinstated due to the adverse impact on renters and the housing market. Politicians often debate negative gearing near elections, with concerns over housing affordability versus investor benefits.

Housing Supply Crisis: Australia faces a housing supply shortfall, worsened by high immigration and insufficient new housing construction (27% below the 10-year average). Negative gearing is seen as supporting housing availability by incentivizing investments in rental properties.

Proposed Policy Adjustments: One proposed change is to allow negative gearing only for new builds, thereby increasing housing supply. This could balance the need for affordable housing with economic growth while avoiding the creation of ghettos or segregated low-income areas, as seen in the U.S.

Economic Implications: Immigration is crucial for economic growth, but it raises housing demand. Increasing construction could offset this demand, but high property taxes (up to 43% on home costs) hinder affordability. Reducing taxes could make housing more affordable without eliminating negative gearing.

Future Policy Speculation: The likelihood of abolishing negative gearing is low due to past political backlash. The discussion speculates on the government’s strategic use of this topic to gain votes, despite a low probability of actual reform.

Negative gearing as an essential tool for maintaining a balanced housing market, where its modification, rather than elimination, could address both investor and social needs.

Facebook: http://www.facebook.com/opencorp
Twitter: @OpenCorp_au
LinkedIn: https://www.linkedin.com/company/opencorp-au
Instagram: @OpenCorp

Listen Now for a breakdown on leveraging lenders Mortgage Insurance (LMI) to overcome barriers and secure your spot in the property market!

In this episode, we dive into the challenges young Australians face in today’s property market. With median house prices across capital cities now reaching $855,877 (up from $596,018 in 2019), saving a 20% deposit has become a daunting task. Rising living costs, inflation, and low household savings make it harder than ever to achieve homeownership.

Key Topics Covered:

1. Challenges of Saving for a 20% Deposit
   • The average deposit needed is now $159,000—a 50% increase since 2020, meaning it can take up to 10 years to save the full amount in today’s market.
   • Median property prices jumped 7% from 2023 to 2024, highlighting the financial cost of waiting.
2. Why Paying LMI is a Strategic Choice
   • Lenders Mortgage Insurance (LMI) allows buyers to enter the market sooner with a 5-10% deposit.
   • Although LMI is an additional cost (typically 1-2% of the loan), it enables buyers to capture property appreciation immediately.
3. Outpacing Rising Prices and Building Wealth
   • By opting to pay LMI, buyers may achieve faster equity growth than they would by saving for a 20% deposit.
   • For investors, LMI is often tax-deductible, further reducing its impact on overall costs.

Takeaway:
For many, paying LMI is a stepping stone to get into the property market today, potentially offering more financial benefits than saving for years. If you're ready to learn how LMI can work for you, tune in to hear why it’s a tool worth considering in your property journey.

Questions?
[email protected]

Facebook: http://www.facebook.com/opencorp
Twitter: @OpenCorp_au
LinkedIn: https://www.linkedin.com/company/opencorp-au
Instagram: @OpenCorp

"Understanding Your Mortgage" At OpenCorp we focus on strategies to manage mortgages and optimise property investments.

Mortgage Types: Explaining the difference between principal and interest loans and variable loans, emphasizing that investment properties often benefit from variable loans due to flexibility.

Lazy Equity: The term refers to equity in properties that homeowners often overlook. By leveraging this equity, investors can purchase additional properties and accelerate their financial growth.

Investment Strategy: Using "other people’s money" (OPM), like bank loans, to finance property purchases. They stress buying multiple properties to benefit from market appreciation, which can significantly reduce long-term mortgage repayment time.

Cross-Collateralisation: A key caution is given against cross-collateralising properties (linking multiple properties under one loan agreement), as this can risk both the investment property and the owner’s home.

Accumulation and Consolidation Phases: The strategy involves accumulating properties quickly to maximize growth during market cycles, followed by a consolidation phase where investors enjoy passive growth from their portfolio.

Be proactive and strategic in using mortgages and equity to build wealth and reduce dependence on long-term repayment schedules.

Facebook: http://www.facebook.com/opencorp
Twitter: @OpenCorp_au
LinkedIn: https://www.linkedin.com/company/opencorp-au
Instagram: @OpenCorp

In this weeks episode, Jeremy Bishop - OpenCorp General Manager Property Management and Jess Brandy, Head of Property Management QLD, discuss the importance of insurance for investment properties, focusing on two main types: building insurance and landlord insurance. 

Building insurance covers the physical structure, while landlord insurance protects against issues related to tenancy, such as loss of rent or tenant damages. 

Jeremy and Jess share their hot tips in what to look for in finding the right insurance for your property assets. 

Facebook: http://www.facebook.com/opencorp
Twitter: @OpenCorp_au
LinkedIn: https://www.linkedin.com/company/opencorp-au
Instagram: @OpenCorp

OpenCorp CEOs Cam McLellan and Alister Lewison, discuss the appeal of a diversified investment portfolio. It feels safe. But when you’re serious about building wealth, safety isn’t enough. Control is what you need.

Cam McLellan’s strategy emphasises the importance of control, leverage, and strategic action in property investment. By using equity, leveraging other people’s money, and accumulating assets quickly, you can cut years off your working life and enjoy financial freedom sooner than you ever thought possible.

So, if you’re considering diversifying your investments, think carefully about what that really means. Do you want to spread your wealth across different assets with little to no control? Or do you want to take control of your future by building a property portfolio that works for you?

Facebook: http://www.facebook.com/opencorp
Twitter: @OpenCorp_au
LinkedIn: https://www.linkedin.com/company/opencorp-au
Instagram: @OpenCorp

Open Corp CEO's Cam McLellan and Al Lewison discuss the financial impact of property investing on lifestyle, with a focus on taxation strategies to mitigate costs. Key points include:

Lifestyle Concerns: Many people avoid investing due to fears that property investment will impact their lifestyle, such as limiting holidays or dining out. However, with proper strategies, investments can be managed without sacrificing lifestyle.

Negative Gearing: Negative gearing allows investors to offset property holding costs (such as interest and repairs) against their taxable income, reducing the amount of tax they pay. This can make holding an investment property more affordable.

Tax Depreciation: Depreciation schedules allow investors to claim deductions on the value of the property’s building and fittings over time, reducing taxable income. New properties have higher depreciation benefits, making them more attractive from a tax perspective.

Tax Withholding Variation: A tax withholding variation form can be used to adjust the amount of tax withheld from an investor’s salary, allowing them to receive the tax benefits throughout the year instead of waiting until their annual tax return.

Finding the Right Accountant: It's essential to work with an accountant who understands property investment. Not all accountants are familiar with the specific tax deductions and strategies related to property investing.

Repairs vs. Upgrades: Investors can claim repairs as tax deductions but should be cautious when making upgrades, as these may not be immediately deductible.

The conversation emphasizes using tax benefits to maintain a good quality of life while growing a property investment portfolio. It also encourages consulting knowledgeable accountants and using the right financial tools.

Facebook: http://www.facebook.com/opencorp
Twitter: @OpenCorp_au
LinkedIn: https://www.linkedin.com/company/opencorp-au
Instagram: @OpenCorp