Hotspotting

In this episode of Hotspotting, Terry Ryder answers live questions from viewers on this monthly Q & A session on Facebook. 

Terry talks about the real estate property market in the following suburbs:

• Toowoomba
• Townsville
• Brisbane
• Gladstone
• Cairns
• Montmorency/Eltham/Greensborough
• Logan LGA and other SW Queensland LGA hotspots of Moreton Bay and Ipswich
• Moree
• Melbourne West Werribee /Melton
• Mussellbrook
• Nerang, The Gold Coast and the impact of the Commonwealth Games
• Armidale
• Adelaide and the City of Marion (Terry's current #1 pick nationally)
• Moranban
• Sydney
• Bendigo
• Campbelltown
• Moreton Bay Region
• Sunshine Coast
• Ipswich
• Tweed Heads and Bryon Bay

Links mentioned in the episode 

New Strategy Session with Terry Ryder

New Location Hotspotting Reports

In this episode of Hotspotting, Terry Ryder discusses the recent announcement by the APRA on the lifting of their 10% limit on lending of investment loans by lenders and how this will impact investment lending going forward.  

• In this episode Terry covers:
• • Why the investor growth cap was introduced in the first place and how it has impacted the industry
  • How investors will benefit from the removal of the temporary benchmark imposed by APRA
  • The impact on interest rates of this announcement
  • Current and future activities of the lenders in what will now become a very competitive environment for investor lending.
  • What the future holds for the additional 30% cap imposed by APRA on interest-only lending which was introduced in March 2017

In this episode of Hotspotting, Terry Ryder discusses the latest findings from the April edition of the Top 10 Best Buys report which is showing regional centres are now the primary focus of property investors, as attention switches from our two big cities.

• IN THIS EPISODE TERRY COVERS:

  • The latest findings from the Hotspotting Top 10 Best Buys reports

  • The new markets that are on the rise now that Sydney and Melbourne are winding down after their recent up-cycles

  • Which areas to buy in Sydney and Melbourne

  • The core factor that differentiates one market from another are the events in the local economy,

  • Examples of regional centres that are having strong growth phases

  • Why Terry believes Perth is the city of opportunity for investors and Adelaide is a market to watch.

In this episode of Hotspotting, Terry Ryder talks about one of the most popular real estate myths that locations close to the CBD have higher capital growth than suburban areas. This is simply not the case.

• The myth that capital growth occurs because most people want to be close to the CBD for work, however research shows that most people actually work outside the CBD.

• The change of location preferences for industrial and major retail outlets away from the CBD into cheaper, more affordable and accessible suburban areas.

• Research by PWC that demonstrates that the economic centres of cities are moving away from the CBD.

• Case studies of LGA areas in Sydney and Melbourne and their growth patterns.

• How 80% of the local economic activity in Sydney occurs in suburban areas.

• Key factors for buying within a location for most home buyers are affordability and proximity to their workplace.

• Research that shows cheapest areas have highest capital growth.

• Recent Hotspotting research that has shown that the outer ring suburbs of Melbourne have had the highest growth as outlined in the latest Top 5 Melbourne Hotspot report.

Terry Ryder from Hotspotting on the extraordinary price growth in the outer ring suburbs of Melbourne in the past 12 months as shown in the latest Top 5 Regional Victoria Hotspots report

• Local government areas in outer ring areas of Melbourne that recorded double-digit growth in median house prices, some of which have grown more than 20% and 30%
• The factors contributing to the big price increase including affordability, a strong local economy  and population growth
• The strength of the growth in the outer-ring areas of Melbourne provides further evidence that proximity to the CBD is not an essential factor for buyers seeking capital growth.
• That proximity to employment is still a core factor but the reality is that most people work in suburban jobs nodes and not in the CBD
• Case studies ofthe growth expereince in Wyndham, Hume, Whittlesea and Casey local government areas
• That downmarket, outer-ring areas do record strong price growth and that affordability is a prime driver of activity and prices, especially true in places where the infrastructure is good.

Terry Ryder from Hotspotting discusses the misleading month to month data that you seemly must irgnore.  

In this episode Terry covers:

• The dangers in reading into short term month to month housing price changes
• Detailed analysis of recent month to month price data and the media's related misleading reporting
• That monthly changes in house prices are erratic, confusing and ultimately meaningless
• Case study of Melbourne where a price report for November 2016 claimed Melbourne house prices had dropped 1.3% and media shouted that the boom was over, however the following month after a 3.3% rise was recorded at which point the media report the boom was back on. 
• Further examples of the media's lazy and misleading reporting on real estate data
• How rises of 0.1% across a month are merely statistical aberrations resulting from dodgy data

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Recently, Terry conducted a Facebook Live Q&A session, with lots of comments and questions from real estate consumers. We covered locations ranging from Perth to Sydney to Darwin to Townsville to Mildura to Ballart to Adelaide, and topics including housing affordability and media misinformation. Hope you enjoy this bonus episode.

On this episode Terry Ryder from Hotspotting discusses the recent findings by PIPA and CoreLogic regarding price growth over time where it shows is that, overall, the past five years have been quite tame for growth in house prices.

Information put together recently by PIPA found that Hobart had achieved the highest percentage growth in house prices among the capital cities over the past 15 years, while Sydney had recorded the lowest growth.

There are similarly surprising outcomes from publication by CoreLogic of the growth in various jurisdictions across Australia in the four most recent five-year periods.

• Detailed analysis of recent long-term price growth publications from PIPA and CoreLogic
• The incorrect media headlines around a national property boom and unprecented price growth in areas such as Sydney and Melbourne, which just isn't true as shown by the data. 
• The findings that show regional differences within each of those five-year periods, reinforcing once again that we do not have a single national market, but many different local markets.
• Examples of major city vs regional areas price growth over time showing that contrary to popular belief, the major cities do not always out-perform the smaller cities or the regional areas.

Further Reading: 

Property Observer: Five year periods actually show tame house price growth

How the capital cities rank on long-term capital growth

Ep: 26: The multi speed property market in Australia in 2018

New research has refuted one of the most common beliefs in real estate – that areas with high crime rates have inferior capital growth.

It shows that affordable areas attract strong demand, generating above-average price growth, regardless of the local crime statistics. This is particularly so if a cheaper area is undergoing gentrification.

• Debunking the long-held real estate myth that problem areas have inferior price growth

• The latest results from RiskWise Property Research which show housing in high-crime areas across Australia is outperforming the general property market

• Affordable high-crime areas with significant gentrification are likely to produce strong price growth, particularly when dwelling prices in the inner and middle rings are unaffordable

• Examples of suburbs with these findings in Franskton North and Busby 

• That the research found affordable high-crime areas with significant gentrification are likely to produce strong median price growth - whereas suburbs with high-crime and low-gentrification typically deliver growth below the city benchmark eg Osbourne Park in Perth
  
  
• Examples of Sydney suburbs with high and low median price examples and their comparative capital growth rates over time
  
  
• Research showing how crime and other bad stigmas do not affect the long term capital growth of an area

For reading: Crime areas shine on price growth

Hotspotting Website – www.hotspotting.com.au

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