In this episode of Talk Property To Me, hosts Brad East and Aaron Downie dive into the world of commercial real estate with Steve Palise, Australia’s top commercial property expert. Discover whether commercial investing is the key to passive income or a hidden risk—and learn how to navigate this lucrative market.

🔍 What You’ll Learn:

✅ Residential vs. Commercial – Which offers better cash flow and capital growth?

✅ Lease Structures & Net Yields – Why tenants cover all outgoings (unlike residential).

✅ Deposit Hurdles & Finance – Why 30-35% deposits are standard (and how lease-stock loans unlock endless deals).

✅ Industrial vs. Retail vs. Office – Safest asset types (and red flags to avoid).

✅ Vacancy Risks – Strategies to minimize vacancies (hint: industrial dominates Sydney’s 0% vacancy zones!).

✅ Value-Add Goldmines – From mezzanine floors to multi-tenancy splits (boost returns without guesswork).

✅ Who’s It For? – Newbies vs. seasoned investors: Who should take the plunge?

✅ Real-Deal Case Study – Steve’s $3.1M shopping centre (yielding $100K/year passively).

📉 Myths Busted:

❌ “Commercial doesn’t grow” – Steve proves it matches residential growth (with 3x rent!).

❌ “Too risky” – Not in high-demand areas (e.g., Sydney’s industrial hubs).

💡 Key Insight: Commercial property can fast-track financial freedom—if you avoid rookie mistakes. Steve shares how to build a portfolio that pays you.

🔗 Free Resources: Grab Steve’s books & 10-hour course (CommercialPropertyInstitute.com).

💬 Your Turn: Should you pivot from residential to commercial? Comment below!

⏰ Timestamps:

00:00 – Intro to Commercial Investing

02:10 – Residential vs. Commercial: Cash Flow Showdown

05:25 – Lease Secrets (Tenants Pay Everything!)

08:40 – Deposits & Lease-Stock Loans Demystified

12:15 – Best/Worst Assets (Industrial Wins, Retail Risks)

16:40 – Vacancy-Proof Strategies (Buffer Funds, Location Hacks)

20:20 – Value-Add Masterclass (Mezzanines, Splitting Tenancies)

25:05 – Who Should Invest? (Spoiler: Not Just Experts)

28:50 – Case Study: $3.1M Shopping Centre ($100K/Year Passive)

32:00 – Free Tools & Final Tips

🎙 Featured Guests:

🔹 Steve Palise – Founder of Palise Property, commercial buyer’s agent, and author of Commercial Property Investing series.

🌐 https://www.paliseproperty.com/ | 📚 CommercialPropertyInstitute.com

🔹 Brad East – Award-winning mortgage broker (Wisebuy Home Loans).

🌐 Website → https://wisebuygroup.com.au 

🔗 LinkedIn → https://www.linkedin.com/in/newcastlemortgagebroker/ 

📷 Instagram → https://www.instagram.com/bradeast_mortgagebroker/ 

👍 Facebook → https://www.facebook.com/bradeastofficial

🔹 Aaron Downie – Property strategist & buyers agent (MacKenzie Buyers Agency).

🌐 Website → https://www.mackenziepropertygroup.com.au/

🔗 LinkedIn → https://www.linkedin.com/in/aaron-downie-1b2749134/

📢 Subscribe for actionable property insights!

#CommercialProperty #PassiveIncome #PropertyInvesting #RealEstateAustralia

In this episode of Talk Property To Me, hosts Brad East and Aaron Downie break down the latest rental market trends in Australia for 2025. With rental prices dropping in key areas across Sydney, Brisbane, and Melbourne, what does this mean for renters and landlords?

We analyze the PropTrack report from September 2024, which reveals that many Local Government Areas (LGAs) in Sydney are now seeing renters paying below advertised rents. Suburbs like Woollahra, North Balgowlah, and McLeod (Melbourne) have experienced significant rent declines, while Brisbane’s rental prices have dropped by 5-7%.

🔍 Key Topics Covered:

✔️ Why rental prices are falling in 2025 📉

✔️ Sydney rental market update – suburbs seeing major drops 🏡

✔️ Brisbane’s rental decline – what’s driving the shift? 🌆

✔️ How renters can negotiate better lease renewals 💰

✔️ Impact on first-home buyers & future property trends 🏠

✔️ Will rental prices continue to drop in 2026? 🔮

As the market stabilizes after years of rent gouging and high demand post-COVID, we explore what’s next for tenants and landlords. If you’re renting or considering buying, this episode is packed with insights and strategies to help you navigate the evolving property landscape.

🔔 Subscribe for more property market insights & expert analysis!

• 00:00:00 - Introduction to the Rental Market in 2025
• 00:00:13 - Decline in Rental Prices
• 00:01:02 - Impact of COVID-19 on Rental Demand
• 00:02:28 - Market Stabilization and Current Trends
• 00:03:48 - Regional Insights: Sydney and Brisbane
• 00:05:08 - Melbourne and Adelaide Rental Trends
• 00:06:51 - Future Predictions for the Rental Market
• 00:07:39 - Vendor Expectations vs. Market Reality
• 00:08:53 - Advice for Renters: Negotiating Leases
• 00:10:45 - Invitation for Property Managers to Join the Discussion

ABOUT THE HOSTS

BRAD EAST

Brad East is the Managing Director of Wisebuy Home Loans. Brad is an award-winning mortgage broker and has helped thousands of clients gain finance to purchase properties. Wisebuy Home Loans is the go-to mortgage brokerage for clients wanting out-of-the-box applications approved.

Website → https://wisebuygroup.com.au 

LinkedIn → https://www.linkedin.com/in/newcastlemortgagebroker/ 

Instagram → https://www.instagram.com/bradeast_mortgagebroker/ 

Facebook → https://www.facebook.com/bradeastofficial

AARON DOWNIE

Joining the podcast in 2024, Aaron Downie is a seasoned property investor and director of Mackenzie Buyers Agency. Aaron’s deep understanding of the property market and investment strategies provides listeners with invaluable insights.

Website: https://www.mackenziepropertygroup.com.au/

Linkedin: https://www.linkedin.com/in/aaron-downie-1b2749134/

Welcome back to another episode of Talk Property To Me! I'm your host, Brad East, alongside my co-host, Aaron Downie. In today's episode, we dive deep into the impact of recent RBA rate cuts on your borrowing capacity and mortgage repayments.

We kick things off by discussing the common sentiment we've heard from potential buyers: "I'm going to wait for rates to go down before I make a purchase." We aim to break down this mindset and illustrate the opportunity cost of waiting in the current market. To provide context, we present a simple case study featuring a couple with no children, each earning $80,000 annually.

Using a Big 4 lender as our example, we analyze how a recent rate cut from 6.18% to 5.93% increased their borrowing capacity by $17,000, bringing it to $799,000. While this is a positive change, we highlight that property values have been rising, with a typical Newcastle property increasing by 5% this year alone. This means that waiting for a rate reduction could actually cost buyers more in the long run, as property prices continue to climb.

We also speculate on the potential for another rate cut, which could further increase borrowing capacity to $820,000. However, we emphasize that many homeowners may not even be aware of their current interest rates, with over 41% of Australians not knowing what they are paying. We challenge our listeners to check their rates and consider the significant savings that could be achieved by refinancing.

Throughout the episode, we stress the importance of acting promptly in the property market. We discuss the compounding effect of property investment and how waiting for the "perfect" moment can lead to missed opportunities. We encourage listeners to adapt to the current market conditions and make informed decisions based on their borrowing capacity.

As we wrap up, we provide insights into how rate reductions affect mortgage repayments, illustrating the savings across various loan sizes. We also share tips on how to negotiate better rates with banks and the importance of not being loyal to lenders who may not have your best interests at heart.

Join us as we unpack these critical topics and empower you to take control of your property journey. Don't forget to reach out to us on social media with your questions or comments—we're here to help! Thank you for tuning in, and we look forward to seeing you in the next episode!

• 00:00:00 - Introduction to RBA Rate Cuts and Borrowing Capacity
• 00:00:13 - Opportunity Cost of Waiting to Buy
• 00:00:34 - Case Study: Borrowing Capacity of a Couple
• 00:01:23 - Impact of Rate Cuts on Borrowing Capacity
• 00:02:35 - Market Growth vs. Increased Borrowing Capacity
• 00:03:38 - The Importance of Knowing Your Interest Rate
• 00:04:46 - The Cost of Waiting to Buy Property
• 00:06:48 - Adapting to the Current Market Conditions
• 00:08:08 - Understanding Compounding in Property Investment
• 00:09:14 - Investing for the Long Term
• 00:10:16 - Avoiding Ego-Driven Investments
• 00:10:27 - Effects of Rate Reductions on Loan Repayments
• 00:11:07 - Savings from Rate Reductions Explained
• 00:12:20 - The Importance of Knowing Your Current Rate
• 00:13:07 - Negotiating with Your Bank for Better Rates
• 00:14:01 - Understanding Bank Loyalty and Discounts
• 00:15:02 - The Role of Algorithms in Bank Rate Adjustments
• 00:16:18 - Avoiding Loyalty to Banks
• 00:17:17 - Conclusion and Call to Action

ABOUT THE HOSTS

BRAD EAST

Brad East is the Managing Director of Wisebuy Home Loans. Brad is an award-winning mortgage broker and has helped thousands of clients gain finance to purchase properties. Wisebuy Home Loans is the go-to mortgage brokerage for clients wanting out-of-the-box applications approved.

Website → https://wisebuygroup.com.au 

LinkedIn → https://www.linkedin.com/in/newcastlemortgagebroker/ 

Instagram → https://www.instagram.com/bradeast_mortgagebroker/ 

Facebook → https://www.facebook.com/bradeastofficial

AARON DOWNIE

Joining the podcast in 2024, Aaron Downie is a seasoned property investor and director of Mackenzie Buyers Agency. Aaron’s deep understanding of the property market and investment strategies provides listeners with invaluable insights.

Website: https://www.mackenziepropertygroup.com.au/

Linkedin: https://www.linkedin.com/in/aaron-downie-1b2749134/

In this episode of "Talk Property," hosts Brad East and Aaron Downie welcome Emily Wallace, a seasoned buyers' agent based in Melbourne, to discuss the dynamic property market in the city. With a focus on the current trends, challenges, and opportunities, Emily shares her insights on the Melbourne real estate landscape, particularly for first-time home buyers and investors.

• Introduction to Emily Wallace: Emily introduces herself as the director of a buyers' agency in Melbourne, where she assists first-time buyers and families in navigating the property market. She emphasizes the importance of location, accessibility to the city, and proximity to good schools in the buying process.
• Market Overview: The conversation delves into the historical capital growth trends in Melbourne over the past 20 years. Emily notes that while the market has experienced fluctuations, the overall trajectory has been upward, particularly in sought-after areas.
• Current Market Dynamics: Brad and Aaron discuss the recent population growth in Melbourne, which has seen an influx of residents from other states, particularly Sydney and Brisbane. Emily highlights the affordability factor that draws people to Melbourne, where property prices are significantly lower than in Sydney.
• First-Time Buyers vs. Investors: Emily reveals that about 70% of her clients are first-time buyers, with the remaining 30% being upsizers and downsizers. She explains that while first-time buyers are primarily focused on lifestyle, they also consider the investment potential of their properties.
• Property Types and Trends: The discussion shifts to the types of properties that are currently in demand. Emily points out that unrenovated villa units and townhouses are particularly appealing to buyers looking for value and potential for capital growth. She also addresses the oversupply of poorly designed apartments and the need for more medium-density housing.
• Challenges in the Market: The hosts and Emily discuss the challenges posed by rising rents and the desire for stability among renters. Many first-time buyers are opting to purchase homes to secure their living situation rather than continuing to rent.
• Future Outlook: Emily shares her thoughts on the future of the Melbourne property market, emphasizing the need for developers to focus on building the right types of properties to meet demand. She also discusses her plans for her agency, including growing her team and setting industry benchmarks for buyers' advocates.
• Practical Tips for Buyers: Emily offers practical advice for potential buyers, including the importance of researching neighborhoods and speaking to current residents to gauge the community vibe. She also highlights the significance of having a clear plan and understanding one's goals before making a property purchase.

This episode is packed with valuable insights for anyone interested in the Melbourne property market, whether you're a first-time buyer, an investor, or simply curious about the trends shaping the industry. Join us as we unpack the complexities of property buying in one of Australia's most vibrant cities!

00:00:00 - Podcast Introduction

00:01:12 - Emily's Background

00:02:40 - Market Trends

00:03:43 - Client Demographics

00:05:25 - Current Market Conditions

00:06:36 - Affordability Trends

00:08:46 - Lifestyle Preferences

00:10:35 - Rent Vesting vs. Owner Occupation

00:12:23 - Neighbor Relations

00:16:42 - Supply and Demand Issues

00:20:01 - Investment Opportunities

00:22:34 - Renovation Potential

00:24:44 - Future Plans

00:25:45 - Contact Information

00:27:25 - Podcasting Insights

00:29:12 - Networking Importance

00:31:20 - Industry Reflections

Welcome back to another insightful episode of Talk Property To Me! I'm your host, Brad East, alongside my co-host, Aaron Downie. In this episode, we dive deep into the current economic landscape in Australia, focusing on the latest trends in inflation and interest rate predictions.

We kick off the discussion by examining the recent decline in Australia's inflation rate, which has dropped to 2.5% in the December quarter from 2.8% in the previous quarter. We break down the components of inflation, distinguishing between goods inflation (currently at 0.8%) and services inflation (still high at 4.3%). We clarify what constitutes goods inflation—physical items like groceries, fuel, and building costs—and services inflation, which includes non-physical items such as rent, healthcare, and education.

As we explore the factors influencing these inflation rates, we highlight the impact of supply chain issues, global oil prices, and labor costs. We discuss how recent wage increases, driven by government policies, have led to higher operational costs for businesses, which in turn affects consumer prices. We also touch on the effects of the COVID-19 pandemic on sectors like education, particularly regarding the influx of foreign students.

The conversation shifts to the rental market, where we note early signs of decreasing rental prices, which could significantly impact overall inflation figures. We emphasize the importance of rent as a substantial component of services inflation and how its decline could lead to a more favourable economic environment.

We then delve into the implications of potential interest rate cuts, particularly the 80% market odds for a 0.25% rate cut in February 2025. We discuss how lower interest rates could enhance affordability for first-time buyers and stimulate growth in the property market. However, we caution that waiting for these reductions might lead to missed opportunities as property values may rise in the interim.

In addition, we analyse the broader economic context, including the influence of U.S. market trends on Australia and the potential impact of the upcoming election on government spending and inflation. We break down the differing approaches of the Labor government and the opposition, highlighting how changes in government policy could affect inflation levels.

As we wrap up, we encourage listeners to take proactive steps in negotiating rent reductions and mortgage rates, emphasizing the importance of communication with landlords and banks. We conclude on a hopeful note, suggesting that the economic outlook for 2025 and beyond appears promising, with signs of recovery and growth on the horizon.

Join us for this engaging discussion, and as always, we welcome your feedback and topic suggestions for future episodes. Catch you next time on Talk Property To Me!

• 00:00:00 - Introduction to Inflation and Interest Rates in Australia
• 00:00:10 - Current Inflation Rates Overview
• 00:00:27 - Understanding Goods vs. Services Inflation
• 00:00:40 - Headline Inflation Figures Explained
• 00:01:43 - Impact of Goods Inflation on Retailers
• 00:02:04 - Services Inflation and Its Drivers
• 00:02:42 - COVID-19's Effect on Education Sector Prices
• 00:03:28 - Childcare Costs and Insurance Implications
• 00:04:35 - Rental Prices and Their Impact on Inflation
• 00:05:00 - Potential Decrease in Rental Prices
• 00:05:23 - Effects of Rate Cuts on Property Buyers
• 00:05:53 - Bank Predictions and Fixed Rates
• 00:06:17 - Understanding Bank Strategies with Fixed Rates
• 00:07:06 - Global Economic Influences on Australian Inflation
• 00:08:41 - Local Factors Affecting Interest Rates
• 00:09:10 - Historical Trends: Australia Following the U.S.
• 00:10:47 - Political Landscape and Its Economic Implications
• 00:11:20 - Odds of a Rate Reduction in February 2025
• 00:12:15 - Arguments For and Against Rate Cuts
• 00:12:40 - Impact of Rate Cuts on Rental Markets
• 00:13:34 - Negotiating Rent Reductions as a Tenant
• 00:14:17 - Wrap-Up: Future Economic Outlook
• 00:14:58 - Conclusion and Additional Resources

ABOUT THE HOSTS

BRAD EAST

Brad East is the Managing Director of Wisebuy Home Loans. Brad is an award-winning mortgage broker and has helped thousands of clients gain finance to purchase properties. Wisebuy Home Loans is the go-to mortgage brokerage for clients wanting out-of-the-box applications approved.

Website → https://wisebuygroup.com.au 

LinkedIn → https://www.linkedin.com/in/newcastlemortgagebroker/ 

Instagram → https://www.instagram.com/bradeast_mortgagebroker/ 

Facebook → https://www.facebook.com/bradeastofficial

AARON DOWNIE

Joining the podcast in 2024, Aaron Downie is a seasoned property investor and director of Mackenzie Buyers Agency. Aaron’s deep understanding of the property market and investment strategies provides listeners with invaluable insights.

Website: https://www.mackenziepropertygroup.com.au/

Linkedin: https://www.linkedin.com/in/aaron-downie-1b2749134/

Welcome back to another episode of Talk Property To Me! I'm your host, Brad East, alongside my co-host, Aaron Downie. In today's episode, we dive into seven significant trends reshaping the property market as we look ahead to 2025.

We kick off the discussion by highlighting the rise of millennials as the largest adult cohort in Australia. This demographic shift is crucial as millennials have different preferences compared to previous generations, particularly when it comes to property. They are leaning towards smaller homes closer to urban centers, which ties into our fourth trend: shrinking backyards. We explore how the desire for lifestyle options and proximity to amenities is influencing property demand and supply dynamics.

Next, we discuss the concept of stepping stones in home ownership. With the market becoming increasingly challenging to navigate, many are opting for smaller apartments or townhouses as a way to enter the property market, rather than waiting to save for their dream home. We emphasize that for first-time buyers, this is often just the beginning of their property journey.

We then delve into new pathways for home ownership, including government schemes aimed at assisting first-time buyers. While we acknowledge the potential of co-buying and rent-to-own models, we express scepticism about their long-term viability as primary market drivers. Instead, we highlight the importance of investment strategies that allow buyers to explore properties in different locations, potentially leading to better long-term outcomes.

As we move through the trends, we touch on the growing demand for green homes. With millennials increasingly conscious of climate change and energy costs, features like solar panels and smart home technology are becoming essential for many buyers. We discuss how these elements can significantly impact property value and buyer interest.

The conversation shifts to urban sprawl, where we note that metropolitan areas are expanding outward. This trend is largely driven by affordability, as buyers seek homes that offer a balance between distance from the city and access to amenities.

Finally, we address the rise of renters in the current market. With home ownership rates declining, we see a growing number of renters, which presents unique opportunities for property investors. We discuss how this trend can drive up rental returns and create a competitive landscape for investment.

In conclusion, we summarize these seven trends and encourage our listeners to consider them when developing their property strategies for the coming year. We invite feedback and suggestions for future topics, reminding everyone to like, subscribe, and join us for our next episode. Thank you for tuning in!

• 00:00:00 - Introduction to Property Trends
• 00:00:13 - Millennials as the Largest Adult Cohort
• 00:01:14 - Stepping Stones to Home Ownership
• 00:02:11 - New Pathways for First-Time Buyers
• 00:04:12 - Shrinking Backyards and Lifestyle Preferences
• 00:05:42 - Demand for Green Homes
• 00:07:03 - Urban Sprawl and Affordability
• 00:08:00 - Rise of Renters and Investment Opportunities
• 00:08:31 - Conclusion and Call to Action

ABOUT THE HOSTS

BRAD EAST

Brad East is the Managing Director of Wisebuy Home Loans. Brad is an award-winning mortgage broker and has helped thousands of clients gain finance to purchase properties. Wisebuy Home Loans is the go-to mortgage brokerage for clients wanting out-of-the-box applications approved.

Website → https://wisebuygroup.com.au 

LinkedIn → https://www.linkedin.com/in/newcastlemortgagebroker/ 

Instagram → https://www.instagram.com/bradeast_mortgagebroker/ 

Facebook → https://www.facebook.com/bradeastofficial

AARON DOWNIE

Joining the podcast in 2024, Aaron Downie is a seasoned property investor and director of Mackenzie Buyers Agency. Aaron’s deep understanding of the property market and investment strategies provides listeners with invaluable insights.

Website: https://www.mackenziepropertygroup.com.au/

Linkedin: https://www.linkedin.com/in/aaron-downie-1b2749134/

Welcome back to another episode of Talk Property to Me! I'm your host, Aaron Downie, and alongside me is my co-host, Brad East. In this episode, we dive into a comprehensive wrap-up of the property market for 2024, discussing the performance of major capital cities and regional centres across Australia over the past year.

We kick things off by addressing the financial landscape, noting that the cash rate has remained unchanged at 4.3% since November 2023. This stability has led to a rather uneventful year in terms of interest rates, yet we highlight some remarkable growth in property values, particularly in Perth, which saw an impressive increase of up to 30%. We also discuss the significant drop in inflation and the recent decision by the Reserve Bank of Australia (RBA) to split its board into two separate entities—one focusing on monetary policy and the other on government spending. This change aims to create a more balanced approach to managing inflation without penalizing homeowners.

As we delve deeper into the property market, we analyse the annual growth rates across various cities. Sydney experienced modest growth at 3.3%, while Melbourne faced a decline of 2.3%. In contrast, Brisbane thrived with a 12.1% increase, and Adelaide saw a remarkable 14% growth. Perth's performance was particularly noteworthy, with a total growth of 21%. We also touch on the performance of regional areas, highlighting significant growth in places like Townsville and the York Peninsula.

Throughout the episode, we emphasize the impact of affordability on property values, noting that more affordable cities and regions have outperformed their pricier counterparts. We also discuss the trend of units performing better than houses due to affordability issues.

As we wrap up our analysis, we reflect on the overall market dynamics, noting that while interest rates have remained stable, the property market has shown resilience and growth in various areas. We conclude by teasing our next episode, where we will share our predictions for 2025, and encourage our listeners to engage with us on social media for a chance to win a $250 gift card in our holiday giveaway.

Join us as we unpack these insights and more, and don't forget to subscribe to stay updated on our future episodes! Happy New Year, and we look forward to another exciting season ahead!

Thank you for tuning in, and we look forward to seeing you in our next episode!

• 00:00:00 - Introduction and Giveaway Announcement
• Welcome back to Talk Property to Me, introduction of hosts and details about a $250 gift card giveaway.
• 00:01:00 - Finance Wrap-Up for 2024
• Discussion on the stability of interest rates and inflation trends over the past year.
• 00:02:43 - Interest Rates and Market Impact
• Analysis of fixed and variable interest rates, and their implications for homeowners.
• 00:04:02 - Home Value Indexes Overview
• Review of annual growth rates in major cities and regional areas across Australia.
• 00:06:25 - Top Performing Suburbs and Regions
• Highlighting specific suburbs and regional areas that experienced significant growth.
• 00:08:02 - Key Takeaways from 2024
• Summary of the overall market performance and factors influencing property prices.
• 00:09:23 - Looking Ahead to 2025
• Teaser for the next episode focusing on predictions for the upcoming year.

ABOUT THE HOSTS

BRAD EAST

Brad East is the Managing Director of Wisebuy Home Loans. Brad is an award-winning mortgage broker and has helped thousands of clients gain finance to purchase properties. Wisebuy Home Loans is the go-to mortgage brokerage for clients wanting out-of-the-box applications approved.

Website → https://wisebuygroup.com.au 

LinkedIn → https://www.linkedin.com/in/newcastlemortgagebroker/ 

Instagram → https://www.instagram.com/bradeast_mortgagebroker/ 

Facebook → https://www.facebook.com/bradeastofficial

AARON DOWNIE

Joining the podcast in 2024, Aaron Downie is a seasoned property investor and director of Mackenzie Buyers Agency. Aaron’s deep understanding of the property market and investment strategies provides listeners with invaluable insights.

Website: https://www.mackenziepropertygroup.com.au/

Linkedin: https://www.linkedin.com/in/aaron-downie-1b2749134/

Welcome back to another episode of Talk Property To Me! I'm your host, Brad East, alongside my co-host, Aaron Downie. In today's episode, we dive into a crucial topic for anyone looking to invest in real estate: the five worst properties you can buy in Australia right now.

We kick off the discussion by highlighting the pitfalls of high-density apartments, particularly in inner-city areas like Brisbane and Melbourne. With an oversupply of units, high strata fees, and low rental yields, we emphasize the importance of opting for boutique properties that cater to a broader audience.

Next, we explore the issue of overdeveloped regional areas, using examples like Ballarat and Rockhampton. These cookie-cutter housing estates often lack the fundamental qualities of location and scarcity, which are vital for a good return on investment. We also touch on the risks associated with single-industry economies, where the population growth fails to keep pace with the number of new dwellings.

Our third point addresses flood-prone properties. We discuss the significant financial burden of high insurance premiums and the potential for natural disasters to wreak havoc on investments. We share real-life examples of areas that have been severely affected by flooding, underscoring the importance of thorough research before making a purchase.

Moving on, we tackle the topic of off-the-plan purchases. While this may have been a viable option in the past, the current market conditions and the instability of builders and developers make it a risky endeavour. We advise listeners to conduct extensive research on developers and to be cautious about locking in prices that may not reflect future market conditions.

Finally, we discuss properties in declining regional towns, such as Muscwellbrook. These areas often suffer from economic reliance on single industries, leading to oversupply and stagnation. We highlight the trend of population migration towards coastal areas, making these declining towns less attractive for investment.

As a bonus tip, we caution against cheap homes in high-crime areas. While the allure of high rental yields may be tempting, the risks associated with such investments can lead to significant financial losses. We stress the importance of investing wisely and not letting ego drive property decisions.

Join us as we unpack these critical insights and provide you with the knowledge to avoid common pitfalls in property investment. If you enjoy our discussion, don't forget to hit the like button, subscribe, and leave a comment with any topics you'd like us to cover in future episodes.

Thank you for tuning in, and we look forward to seeing you in our next episode!

• 00:00:00 - Introduction to the Worst Properties in Australia
• 00:00:20 - High-Density Apartments: Too Much Supply
• 00:01:12 - Overdeveloped Regional Areas: Missing Fundamentals
• 00:02:21 - Flood Prone Properties: A Risky Investment
• 00:04:04 - Off the Plan Purchases: Proceed with Caution
• 00:05:27 - Declining Regional Towns: Economic Vulnerability
• 00:06:33 - Bonus Tips: Avoiding Cheap Homes in High Crime Areas
• 00:07:03 - Conclusion and Call to Action

ABOUT THE HOSTS

BRAD EAST

Brad East is the Managing Director of Wisebuy Home Loans. Brad is an award-winning mortgage broker and has helped thousands of clients gain finance to purchase properties. Wisebuy Home Loans is the go-to mortgage brokerage for clients wanting out-of-the-box applications approved.

Website → https://wisebuygroup.com.au 

LinkedIn → https://www.linkedin.com/in/newcastlemortgagebroker/ 

Instagram → https://www.instagram.com/bradeast_mortgagebroker/ 

Facebook → https://www.facebook.com/bradeastofficial

AARON DOWNIE

Joining the podcast in 2024, Aaron Downie is a seasoned property investor and director of Mackenzie Buyers Agency. Aaron’s deep understanding of the property market and investment strategies provides listeners with invaluable insights.

Website: https://www.mackenziepropertygroup.com.au/

Linkedin: https://www.linkedin.com/in/aaron-downie-1b2749134/

Welcome back to another episode of Talk Property To Me! I'm your host, Brad East, alongside my co-host, Aaron Downie. In this episode, we dive deep into the concept of property cycles, a topic that frequently comes up in our discussions with listeners and clients alike.

We start by defining what a property cycle is and introduce the four main stages: boom, peak, decline, and recovery. We explain how these stages are often visualized through the property clock, a tool popularized by organizations like Herron Todd White, which provides insights into various markets.

As we explore each stage, we discuss the characteristics that define them. The boom phase is marked by high demand and rising prices, while the peak indicates a potential oversupply and plateauing prices. We also touch on the decline phase, where prices soften and demand decreases, and finally, the recovery phase, where prices stabilize and begin to rise again.

A significant part of our conversation focuses on the driving factors behind these cycles, including economic conditions, interest rates, employment levels, and government policies. We highlight how owner-occupiers play a crucial role in driving market demand, especially during boom periods, and how their emotional purchasing decisions can significantly impact property values.

We also reflect on the unique circumstances surrounding the COVID-19 pandemic, which led to a rapid shift in the property market. The influx of government stimulus, low-interest rates, and changes in consumer behaviour created a perfect storm for a property boom, which we analyse in detail.

As we navigate through the current state of the property market, we discuss how to identify which part of the cycle different areas are in, using Sydney as a case study. We emphasize the importance of localized market analysis, as property cycles can vary significantly even within the same city.

Throughout the episode, we share practical tips for different types of buyers—investors, home buyers, and sellers—on how to approach the market based on their unique circumstances. We caution against trying to time the market perfectly, stressing that long-term growth and personal lifestyle needs should take precedence over short-term fluctuations.

In conclusion, we reiterate that understanding property cycles is valuable, but it should not be the sole focus for new investors. Instead, we encourage listeners to look at long-term growth factors and local market dynamics to make informed decisions.

Thank you for tuning in! If you enjoyed this episode, please subscribe and leave us a comment with any topics you'd like us to cover in future episodes. We look forward to seeing you next time!

• 00:00:00 - Introduction to Property Cycles
• 00:00:11 - Understanding the Property Cycle
• 00:00:33 - The Property Clock and Its Importance
• 00:00:55 - Stages of the Property Cycle
• 00:01:17 - Boom Phase Explained
• 00:01:29 - Peak Phase Characteristics
• 00:01:43 - Decline Phase Overview
• 00:02:02 - Recovery Phase Insights
• 00:02:13 - Defining Boom vs. Peak
• 00:03:19 - Factors Driving Property Cycles
• 00:03:48 - Government Policies and Economic Conditions
• 00:04:10 - Impact of Immigration on Property Demand
• 00:04:52 - Cheap Money and Its Effects
• 00:05:10 - Consumer Spending and Savings During COVID
• 00:05:37 - Accessing Superannuation for Property Purchases
• 00:06:19 - Cancelled Weddings and Property Purchases
• 00:07:11 - Supply and Demand Dynamics
• 00:08:16 - Current State of Sydney's Property Market
• 00:10:02 - Key Indicators of Property Cycle Stages
• 00:10:25 - Identifying a Boom Market
• 00:11:45 - Understanding the Peak Phase
• 00:12:42 - Characteristics of the Decline Phase
• 00:13:16 - Consumer Confidence and Its Impact
• 00:14:14 - Renewed Buyer Interest in the Market
• 00:15:25 - The Fast-Paced Market Dynamics
• 00:16:33 - Future Predictions for Interest Rates
• 00:17:48 - Historical Context of Interest Rates
• 00:18:31 - Tools for Tracking Property Cycles
• 00:19:29 - Common Mistakes in Timing the Market
• 00:20:53 - Long-Term Growth vs. Timing the Market
• 00:22:11 - Importance of Local Variations
• 00:23:54 - Aging Population and Cash Purchases
• 00:25:31 - Tips for Different Types of Buyers
• 00:26:04 - Selling Strategies in Different Market Conditions
• 00:27:08 - Recap of Property Cycle Stages
• 00:28:02 - Long-Term Growth Focus
• 00:28:21 - Conclusion and Call to Action

ABOUT THE HOSTS

BRAD EAST

Brad East is the Managing Director of Wisebuy Home Loans. Brad is an award-winning mortgage broker and has helped thousands of clients gain finance to purchase properties. Wisebuy Home Loans is the go-to mortgage brokerage for clients wanting out-of-the-box applications approved.

Website → https://wisebuygroup.com.au 

LinkedIn → https://www.linkedin.com/in/newcastlemortgagebroker/ 

Instagram → https://www.instagram.com/bradeast_mortgagebroker/ 

Facebook → https://www.facebook.com/bradeastofficial

AARON DOWNIE

Joining the podcast in 2024, Aaron Downie is a seasoned property investor and director of Mackenzie Buyers Agency. Aaron’s deep understanding of the property market and investment strategies provides listeners with invaluable insights.

Website: https://www.mackenziepropertygroup.com.au/

Linkedin: https://www.linkedin.com/in/aaron-downie-1b2749134/

In this episode of Talk Property To Me, I, Brad East, am joined by Cameron Smith from Waterford Financial Planners to discuss a compelling case study on how to significantly boost your retirement savings through strategic financial planning. We dive into the details of how a couple, currently aged 48, can potentially retire with an additional $1.5 million by making informed decisions about their superannuation.

We start by examining the couple's current financial situation, which includes a combined super balance of just over $650,000 and a principal residence valued at $1.5 million. The discussion centres around two primary options: leaving their super in a traditional industry fund versus establishing a self-managed super fund (SMSF). Cameron explains the setup process for an SMSF, highlighting the initial costs and the long-term benefits that can outweigh these expenses.

Throughout the episode, we emphasize the importance of understanding the potential growth of investments. Using conservative projections, we illustrate how the couple could see their super balance grow to approximately $3.5 million if they remain in an industry fund. In contrast, by setting up an SMSF and investing in property and shares, they could see their total net assets soar to around $5.1 million by the time they reach 65.

We also discuss the mechanics of self-managed super funds, including the limited recourse borrowing arrangement (LRBA) that protects the fund's other assets in case of default on the property loan. Cameron provides insights into the types of contributions that can be made to the SMSF, including employer contributions and concessional contributions, and how these can be leveraged to maximize retirement savings.

Additionally, we touch on the importance of compliance and the regulations surrounding SMSFs, including what cannot be done with the fund, such as using it for personal expenses or renting to related parties. Cameron shares valuable tips for business owners on how they can utilize their SMSF to purchase commercial properties and lease them back to their businesses.

As we wrap up the episode, we reinforce the message that taking action now can lead to substantial financial benefits in the future. The compounding growth of investments over time is a critical factor in building wealth for retirement, and we encourage listeners to consider their options carefully.

For anyone interested in learning more about self-managed super funds or financial planning strategies, I invite you to reach out to Cameron Smith at Waterford Financial Planners. His contact details will be available in the show notes.

Thank you for tuning in, and as always, if you have topics you'd like us to cover in future episodes, feel free to share your suggestions!

• 00:00:00 - Introduction to Retirement Planning
• 00:01:00 - Self-Managed Super Funds Explained
• 00:02:30 - Cost vs. Benefit of SMSFs
• 00:03:30 - Minimum Requirements for SMSFs
• 00:04:30 - Member Balances and Splitting Super
• 00:05:30 - Case Study Overview
• 00:06:00 - Industry Fund vs. SMSF Comparison
• 00:08:00 - Growth Projections for SMSF
• 00:09:00 - No Additional Contributions Needed
• 00:10:00 - Lending Perspective on SMSFs
• 00:11:00 - Types of Contributions to Super
• 00:12:00 - Using Unused Contribution Caps
• 00:13:00 - Accessing Funds and Compliance
• 00:14:00 - Restrictions on SMSF Usage
• 00:15:00 - Commercial Property Strategies
• 00:16:00 - Conclusion and Key Takeaways

ABOUT THE HOSTS

BRAD EAST

Brad East is the Managing Director of Wisebuy Home Loans. Brad is an award-winning mortgage broker and has helped thousands of clients gain finance to purchase properties. Wisebuy Home Loans is the go-to mortgage brokerage for clients wanting out-of-the-box applications approved.

Website → https://wisebuygroup.com.au 

LinkedIn → https://www.linkedin.com/in/newcastlemortgagebroker/ 

Instagram → https://www.instagram.com/bradeast_mortgagebroker/ 

Facebook → https://www.facebook.com/bradeastofficial

AARON DOWNIE

Joining the podcast in 2024, Aaron Downie is a seasoned property investor and director of Mackenzie Buyers Agency. Aaron’s deep understanding of the property market and investment strategies provides listeners with invaluable insights.

Website: https://www.mackenziepropertygroup.com.au/

Linkedin: https://www.linkedin.com/in/aaron-downie-1b2749134/