Hotspotting

The right question is: WHERE is it a good time to buy real estate in Australia.

Because in this vast country, with so many different places and market scenarios playing out, it’s always a good time to buy SOMEWHERE.

At Hotspotting, we’ve just completed the work on the Winter edition of The Price Predictor Index.

This has included analysing sales activity for every significant suburb or town throughout
Australia – which means over two thousand different locations.

The results of this study confirm that we have a multi-speed market in Australia – which
means there are many different scenarios under way throughout the nation.

There really is no such entity as “the Australian property market” - because it’s normal to
have, at any point in time, markets which are rising, markets which are stagnating, markets
that are falling and – particularly right now – locations which have been previously weak but
which are now showing signs of recovery.

This is certainly the case right now in Australia.

The consistently solid performance for which Adelaide is now renowned is evident in the results of our latest survey of sales activity.

Indeed, our survey has found the highest number of consistency locations in Adelaide in the eight years of our quarterly surveys – and it’s this steadiness of performance which has become Adelaide’s trademark.

So, overall, Adelaide provides an attractive equation for property investors – affordable prices, low vacancy rates and rising rents, underpinned by one of the nation’s strongest economies.

So make sure you get a copy of the new Top 5 Adelaide Hotspots report and find about some of the best value real estate anywhere in Australia.

https://www.hotspotting.com.au/product/top-5-adelaide/

I’m constantly startled at how much commentary in the media about property markets comes from individuals and organisations with very limited understanding the topic.

Real estate consumers in Australia – many of whom unfortunately rely on news media for market information – are constantly beset by misinformation and shallow analysis from people who clearly have only the thinnest of knowledge about residential real estate.

I classify much as what we see in news media as kindergarten analysis – commentary and so called analysis at an almost childlike level.

Most of the forecasts about property prices are sourced from economists, notably those with fancy titles at the big 4 banks, whose track record in predicting real estate incomes is quite dismal.

Anyone who monitors their predictions and compares them with actual outcomes, as we do here at Hotspotting, will be stunned at how often they get it wrong – and, usually, spectacularly so.

Regional markets have been the best performers on capital growth over the past five years, outperforming the capital cities.

This is another strong piece of evidence which refutes one of those persistent misconceptions that many Australians cling to – that you have to buy in the biggest cities to get the best capital growth.

 For many years, it’s become common to see regional markets recording the biggest increases in prices, both in the short-term and over the longer term.

And this has been confirmed by new figures from PropTrack, the research arm of realestate.com.au, which examined which locations had recorded the best growth over the past five years.

It shows that 18 of the top 20 performers (the top 10 for houses and the top 10 for units) are regional locations.

Following the multiple interest rate rises of the past year, more and more property investorsare seeking to buy in places that offer high rental yields.

The good news is that, even with significantly higher interest rates, if you select the right locations you can find properties with rental yields high enough to cover all your costs of ownership.

And you can achieve this without high-risk strategies like buying in mining towns.

To cater for this growing demand from investors seeking positive cashflow in a high-interest- rate environment, we have created a new report: The National Top 10 Hotspots for Positive Cashflow Properties.

Find out more ...

I wonder how many people would answer this question correctly: what’s the fastest growing city in Australia?

Many people might consider Brisbane, maybe Perth, perhaps the Gold Coast.

But the fastest-growing city is none of those places.

The answer is the Warragul-Drouin region in Victoria.

According to a new analysis of population data, Warragul-Drouin had the highest growth rate both in 2022 and in the past five years.

Its population rose 3.3% in 2022 and by 20% in the past five years – admittedly rising from a low base to reach 44,000 people last year.

Most investors cap out at 1 investment property because they are not aware of how to replenish their borrowing capacity. This webinar will be going over strategies on how to go about tapping into unlimited borrowing capacity for the everyday investor.

“The Doubling Game” is a proven system that can transform your financial trajectory, propelling you towards unprecedented success. As Andrew explains, doubling your net assets multiple times is the key to unlocking massive wealth. Imagine starting with $1,000 and doubling it ten times to reach $1 million. Double it ten more times, and you’re a billionaire! This incredible potential is within your grasp, although it can be hard to get there alone.

During this webinar, Andrew Courtney of Plenitude Wealth and Hotspotting founder Terry Ryder will guide you through the workings of “The Doubling Game” and demonstrate how strategic real estate investments can accelerate the process. Discover the crucial factors that determine the speed at which you can double your assets, and gain extremely helpful insights on leveraging the power of your borrowing capacity to reach your financial goals.

One word explains everything happening in real estate currently: shortage.

There is a shortage of listings of properties for sale, which is pushing up prices at a time when economists told us to expect falling prices.

In the March-April-May quarter, capital city house prices rose an average of 3%, while apartments increased 2.3%, according to CoreLogic. Every capital city and most regional markets recorded house price increases in the month May, while unit prices also rose in most areas.

The May growth for houses was led by Sydney, up 2.1%; Darwin, up 1.6%, Brisbane, up 1.5% and Perth, which rose 1.2%. Outside of the capital cities, there was growth also in the regional markets of NSW, Queensland, South Australia, Western Australia and Tasmania.

There are two very strong and important reasons why politicians need to encourage Australians to invest in residential real estate.

The first and most immediate one is that this is the best and fastest solution to the rental shortage crisis. The second and more long-term reason is that, in a country with an ageing population, we need to encourage people to provide for their own retirement through investment.

Which is the polar opposite of what’s been happening throughout the past five years or so. We’ve been discouraging people from investing in real estate and the country will suffer both short-term and long-term consequences from the stupidity and short-sightedness of our politicians.

If we don’t turn around this issue and provide incentives for people to invest for their retirement, we face the same agony that they’re experiencing in France, where they’re attempting to extend the retirement age amid widespread and sometimes violent protests.

The reasons for the rental shortage crisis and the consequent increases in rents can be summarised in two words: state politicians.

The policies and actions of state governments across Australia have created the situation where we have too few rental properties in the market.

And, showing the remarkable capacity of politicians for stupidity, most state governments right now are working very hard on making the situation worse.