https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: 1. A look in the rear view mirror at 2021 The trio revisit the predictions they made for 2021. Were they on the money or did they miss the mark? Tune in to find out! 2. What will the property market do in 2022? What capital growth rates can we expect around the nation this year? The trio lay their predictions down for 2022 and how that compares with other forecaster's. 3. Which capital cities will be the top performers? The trio look into the crystal ball and explain which capitals are expected to top the charts this year. But remember, property is not an asset class that lends itself to short-term investing. The important thing is to plan and strategise for the long-term. 4. How will regional locations fare? Will regional locations outperform capital cities again or will capital cities continue to reign? 5. Investor participation Investors have shown strong increases in activity over 2021, but is this trend likely to continue? The trio share their insights. 6. Will APRA intervene in the property market? The trio discuss their predictions for the regulator's level of intervention and whether or not they feel government policy changes will be prescribed temper the market in 2022. 7. The outlook for developers and building starts Residential construction costs have jumped by 7.1% in 2021and builders are flat out with projects, exacerbated by labour shortages. Will this trend continue and what impact will it have on the property market? 8. Can we expect a rate increase in 2022? The trio share their predictions for a cash rate rise by the RBA and where fixed rates will go this year. 9. Rental market forecasts 2021 has been a story of increasing rents and decreasing vacancy rates. The trio discuss the outlook for rental markets in 2022. 10. Sales volumes 2021 was a record breaking year for sales volumes, but will 2022 keep pace? Tune in to find out! 11. Risks which could impact the property market The trio discuss potential risks on the horizon which could impact the property market this year. Visit the show notes - https://propertyplanning.com.au/predictions-for-2022-and-a-look-in-the-rear-view-mirror-at-2021-ep-137/

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: 1. Value growth continues to lose steam Values increased nationally 1% over December, which is the lowest level of monthly growth since January 2021. The trio share a sneak peak of some of their predictions for 2022. 2. A look at our capital cities Brisbane and Adelaide were the outperformers for the final month, and each have been gaining pace since October. While Melbourne had a slightly negative month, Sydney growth reduced from prior months to 0.3%, proving again that December can be one of the best times to buy in our two biggest cities. 3. How regions have performed For 2 years in a row, regions have outperformed capital cities, reaching a whopping 25.9% growth over 2021. But is this trend here to stay? The trio share their insights. 4. Rental markets With vacancy rates continuing to tighten, rental markets in just about every city (metro and regional) will become increasingly competitive. This will place pressure on governments to address rental stock shortage, although investor activity may provide some respite as investor numbers have been steadily increasing over 2021. 5. Investors gain foothold in the market Investor lending is now up to 32.1% in November, climbing steadily from 29.11% in July. With an election looming, it will be interesting to see what policies the incumbent government proposes to walk the tight rope between supporting mum and dad investors and championing for first home buyers. The trio watch this space with keen interest. 6. New listings flood the market New stock on the market was the highest since 2016, however the total listings in December were still significantly lower than the five-year average. This indicates that buyers are still heavily active in the market, snapping up new and old stock. Will these competitive conditions continue 2022? 7. Consumer sentiment on purchasing a property continue to languish? The 'Time to Buy a Dwelling Index' shows consumer sentiment dropping to the lowest point at 81.9 over December. However, the house price expectations index is up at 150, indicating that the majority of Australians are optimistic about property prices increasing. This general trend reflects the current state of play, that it's a bad time to purchase a home because prices are soaring. However, buyers will need to harness their reluctance to compete hard, and balance this with the fear of a market outpacing them. 8. Unemployment improves but is inflation here to stay? The unemployment rate has decreased back to 4.6%, back in line with September after increasing to 5.2% in October and is expected to keep reducing. Will the Australian story follow the US, (which is now down to 3.9% unemployment with inflation hitting 5.5%) or is our inflation transitory? The trio discuss the early signs of expected US rate increases and how this could impact the property market. Visit the show notes - https://propertyplanning.com.au/top-capital-cities-of-2021-will-the-stellar-rate-of-growth-continue-in-2022-is-interest-in-regions-here-to-stay-how-rents-and-vacancy-rates-continue-to-entice-investors-the-outlook-for-unemploymen/

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: L - Lenders Mortgage Insurance (LMI) LMI is a type of insurance you can expect to pay if you borrow more than 80% of the property value. Although you pay for it, it protects the lender, not the borrower as above 80% lending is seen as higher risk for the lender in the event of mortgage default and subsequent mortgagee sale. The trio discuss how the insurance premium is calculated, what kind of borrower is likely to have to pay this fee and how you can reduce LMI surcharges. M - the critical components of your Mortgage The Property Planner takes you through the top 6 mortgage strategies that can greatly impact your wealth and ability to hold property as you grow your portfolio N - Negative and neutral gearing Negative cashflow simply means that your investment is running at a loss from a cash flow perspective. This is because the rent earnt doesn't cover property costs, such as interest paid and maintenance. Negative gearing relates to the tax benefit applied to reflect the investor's cashflow losses. Although you get a tax deduction, negative gearing is not necessarily a positive thing. It should be considered merely a benefit, as opposed to a reason to invest. Negative gearing means you pay a dollar to get 30 cents or slightly more back from the tax man. The trio discuss the dangers of selecting a property based on tax benefits alone. O - Offset accounts, God's gift to mortgage strategy! The offset account is arguably the banks' greatest invention. Effective use of offset accounts forms the basis of many of the mortgage strategies that can enhance your wealth creation such as money management, optimising tax deductions, risk management and the ability to hold onto your home when you upgrade. Take a listen to episode #48, a whole episode dedicated to the effective use of offset accounts. P - Positive gearing Positive gearing is essentially the opposite of negative gearing. It is where income earnt from your property covers more than the expenses. A positively geared investor will pay additional tax; a nice problem to have. The trio discuss how gearing is not static and can change over time. It is normal for a property to become neutrally and then positively geared over time. Take a listen to find out why. Visit the show notes: https://propertyplanning.com.au/the-l-to-p-of-property-success-lmi-what-is-it-and-how-to-reduce-it-critical-mortgage-strategies-negative-gearing-and-making-it-work-for-you-ef/

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: How does bias impact our financial decisions? Behavioural biases are defined as unconscious beliefs that influence our decisions. In the field of finance, behavioural bias is a study that focuses on psychological factors that influence the decisions of investors. There are some 180 recognised biases and unfortunately we can't unpack them all, however the trio have picked the top 6 biases to investigate. Bias 1 - Mental accounting Mental accounting refers to the concept where people treat money differently depending on where it came from and what we think it should be used for. The trio discuss the varying ways that this bias can manifest in our financial lives. Bias 2 - Loss aversion This bias refers to a higher sensitivity to incurring losses than making gains. It impacts investors when the fear of loss is disproportionate to the risk itself, and fear stalls their ability to make a decision. The trio delve into how this bias can hamper investors and how to mitigate the influence of this bias if you are conservative in nature. Bias 3 - Overconfidence bias This bias is the tendency to see ourselves as better than we are and is common in investing. Overconfident investors generally do not manage and control risk properly; they engage in active investing, (instead of passive investing) and adopt a DIY philosophy. In the property space, we see it most commonly when people assume they can carry out a major renovation or development, when ordinarily this activity should be carried out by a skilled/experienced renovator or builder. Bias 4 - Anchoring bias Anchoring is a phenomenon where someone values an initial piece of information too much to make subsequent judgments. In investing, this can influence decision-making regarding a security, such as when to sell or buy an investment. The trio discuss how this bias can come about: either through a negative or positive personal experience, (or third party experience). Anchoring bias can also be passed on through generations. The trio discuss how you can effectively tackle this bias and carry out your own assessments. Bias 5 - Familiarity bias This bias is characterised by investors preferring familiar investments, despite the advantages of diversification. This can manifest itself in people wanting to purchase investments in their own state, region, city or suburb. To counteract this bias, you need to be prepared to do comprehensive assessments to look at a broad array of options. Bias 6 - Herd behaviour bias Herd behaviour occurs when investors follow others rather than making their own decisions based on financial data. People follow the herd because it feels safer, which is the opposite of contrarian investing. The trio discuss examples of herd behaviour in property. How can buyers think more rationally and independently? The trio share their insights on how to make informed and successful property decisions, and specifically; to mitigate any biases that may be in play. Visit the show notes: https://propertyplanning.com.au/behavioural-economics-101-tackling-the-biases-that-impact-our-property-and-investment-decisions-ep-134/

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: Market update 1. Proposed land tax changes in Queensland In a surprise move, the Queensland government has put forward in their mid-year budget update plans to change the calculation of land tax so that an investor's entire investment portfolio is taken into account, (not only the land owned in Queensland). The trio discuss the probable impacts for demand for Queensland property, property values and also rents. Not to mention the potential that other states will possibly follow suit. 2. Regionals outstripping the capitals in unit growth When looking at property growth over the last 12 months, units in combined capitals have increased by 12.6%, while units in combined regions have increased a whopping 23.1%. The trio discuss the possible reasons behind this perplexing bit of data. 3. Auction volumes still strong despite Christmas only days away Last weekend (ending Sunday 19th) was the second busiest auction week, (in terms of stock volumes) since CoreLogic began tracking in 2008. The week beforehand was the biggest stock volume week on record and we are now in the fourth consecutive week where more than 4,000 capital city homes have gone under the hammer. What it means is that supply and demand ratios are slightly closer to equilibrium, and in contrast to the difficult buying conditions that have been a hallmark of 2021, it's now a (comparatively) great time to buy, with more properties for sale than ever before and many buyers giving up the search and packing up for Christmas already. Keep your eyes open over January, as there is likely to be more stock hanging around than normal as clearance rates have eased somewhat for the short term. Purchasing laws - Part 2 1. What is underquoting? Sometimes known as 'bait pricing', underquoting is the practice applied by agents knowingly advertising the price of a property for sale on the market at a price lower than the true value of the home, (or worse still, at an advertised price that is lower than the vendor's asking price). The Property Buyer sheds light on why this practice occurs in Victoria, (and other states). 2. What is the danger to the buyer of underquoting Buyers will waste money and time carrying out due diligence and building inspections on a property, only to find out that the property is not within their actual budget and out of reach. Buyers who have been in the market long enough and those who have been burnt enough times will start to cotton on that the quoted range is not representative of the realistic price that the property will go for. So now, there is an expectation that a property will sell for more than the quoted range. 3. How Queensland has tackled this issue Agents in the Sunshine state are prohibited from representing a property for sale at a specified price while being aware the vendor will not accept that price. In addition, if a property is going to auction, agents are banned from making any price guide representations at all. While this does effectively deal with the problem of underquoting, it does raise other challenges for buyers. In this case, buyers must carry out the hard task of working out for themselves what a property is worth, when many are not experts in property. Is it better to have no guidance at all on price?... or some (mis)guidance that's inaccurate? The trio ponder this question. 4. How Victoria's underquoting regime misses the mark The Property Buyer explains the 'Statement o...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: Market update 1. Highest annual sales since December 2003 Over the last 12 months, national dwelling values have risen 25.2% across regional Australia and 21.3% in capital cities. An incredible story for the regions that we are excited to keep watching closely. In the same period, ~614,000 homes were sold, which is the highest annual sales volume reached since December 2003. However, buyer demand is so great at the moment, that stock on the market is simply being soaked up at a rapid rate. 2. Fixed rates on the rise, and here's why Lender fixed rate offerings have risen sharply since June, when the Property Planner made his prediction that fixed rate hikes were likely to occur. Three year fixed rates have taken the biggest hit, with some lenders increasing the rate by as much as 0.95%. The trio discuss the reasons why fixed rates have experienced a sharp incline in recent months. Those who took advantage of the low fixed rates will be laughing all the way to the bank now! Property purchasing laws 1. Check out our show notes for a detailed breakdown on the differences in purchasing laws between each state In this week's episode, the trio discuss the differences, advantages, disadvantages and quirks of property laws in each state. It is critical to familiarise yourself with the laws and processes that apply to your purchase, particularly if this is your first purchase or you are interested in purchasing interstate. There is a vast amount of information to get acquainted with, (enough to do one episode on each state!) and unfortunately we can't cover it all. Visit the show notes for further information and detail on each state. 2. The starting point - what constitutes a legally binding contract? The commonality between all states and territories in Australia, is that no legally binding contract exists until the contract is signed by both parties. However, some states also hinge on the concept and requirement that contracts must be 'exchanged' as well before they are binding. The different approaches here can cause confusion and also leave the door open for gazumping, (which we will explain shortly). The trio discuss the different requirements in each state and how that impacts the purchasing process. 3. Cooling off periods The trio discuss the varying statutory cooling off periods in each state, (or absence of cooling off periods in the case of some states), when a cooling off period does not apply and can the cooling off period be waived as a negotiation tactic? 4. Negotiating 'subject to' clauses and contract conditions While all states allow for 'subject to' clauses to be entered into contracts, interestingly, this is not common practice in the states of NSW and ACT. The trio discuss the common conditions that are negotiated between the buyer and the vendor and also why NSW and ACT don't take this approach. 5. Gazumping - what is it and why is it legal? Gazumping occurs when an agent or vendor accepts an offer made on a property, but before the contract is signed to formalise the deal, another buyer swoops in with a higher offer or better conditions and the vendor sells to them, leaving the first buyer out in the cold. This occurs because in most states, the buyer and vendor do not sign legally binding contracts at the time of the sale agreement. Before the contract is signed, the agent is legally oblgiated to present to the vendor any further offers received for the property. 6. Why is gazumping mos...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: 1. A look into recent market cycles The Property Professor shares some research from ABS home value index data on property market movements over the last 5 years. Cycles are a key component of the property market and they are difficult to predict. However, when property prices do drop, the declines are generally not as large in magnitude as the increases. 2. Consumer spending and impact on the property market The household savings ratio is now up to 19.8% from 11.8% last quarter due to the Sydney and Melbourne lockdowns. Inflation is starting to increase, but this may only be transitory, as spending increases once lockdowns are lifted, but as savings decrease, people will tighten their belts once again. If listings decline in the new year, we may see buyer conditions stiffen and prices increase if consumer confidence remains high. Supply and demand ratios are anticipated to tighten if listings decline. 3. Property market further softens over November Australian housing values increased a further 1.3% in November, gradually losing steam from March's high. With the exception of Brisbane and Adelaide, monthly growth for each capital city has declined to 1.1% or less. Perhaps with growing unaffordability, investors are turning to Brisbane and Adelaide, both of which are the star performers currently. 4. Rents and vacancy rates Darwin and Hobart are still rocketing along, but the rate of growth in rents is starting to come down. Investors have flocked to these markets, meaning that rental stock is increasing, and this has consequently taken some of the heat out of the growth. A 2% vacancy rate is considered equilibrium, while Perth, Adelaide, Canberra, Darwin, Hobart are all below 1% vacancies, (indicative of a tight rental market) hence causing pressure in these markets. 5. Houses vs units The median price gap between houses and units is the highest on record. Based on median values, capital city houses are now 37.9% more expensive than capital city units. However, the difference in the quarterly rate of growth between houses and units is now the narrowest it has been since October 2020, with only 1.6 percentage points between the two broad housing types. If you're looking to purchase a quality unit, now is probably as good a time as any to buy, considering the gap is likely to shorten in the future. However, the trio warn against buying "any" unit. There are good units and, well... not so good units. It's imperative to know the difference. 6. New listings rise but total stock remains low A rise in the number of homes available for sale is a key factor driving the slowdown in capital growth. New listings are up 34% from the same time last year and 15.7% above the 5 year average. However, total listings are still 15.4% below this time last year and 24% below the 5 year average, indicating that buyer demand is soaking up the new stock on the market as well as the old. Listings that have been on the market for over 180 days have dropped a drastic 51% from this time last year. 7. Growth in regions continues to burgeon on Over the month of November combined regions achieved 2.2% growth and this is not just because of the COVID-induced escape from the city. Now affordability issues are forcing people to consider and aim for regional property, with the support of infrastructure upgrades and lifestyle factors that attract newcomers. It will be interesting to watch this space over the next few years. 8. People are still pessimistic about now being a good time to buy...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: Market update 1. Only a few weekends left to capitalise on a pre-Christmas purchase Auctions have been booked for each weekend all the way up to the 18th of December and mid-week auctions scheduled as well, as vendors look to sell prior to Christmas. Although some buyers may drop out of the race to purchase due to property search fatigue and holiday planning distraction, while others may suddenly pivot from one property to another. Agents are finding the task of predicting buyer numbers quite challenging at present. Stock on the market will take a seasonal dip in January, meaning that buyers who have missed out will most likely need to wait till February to purchase, amplifying the mad dash to secure a property prior to Christmas. 2. Interest only loans will get more expensive in the wake of APRA announcements In the last week, APRA has announced that banks need to hold more in cash reserves for every dollar loaned on an interest only loan. This means that lending interest only loans to consumers will become more expensive for the banks and the cost is expected to be passed on to consumers. APRA's direction to the banks will come into force from January 2023 and we are likely to see the margin between interest only rates and principal and interest rates increase as that happens. APRA's requirements were more stringent than expected, perhaps being employed as a tool to take the heat out of the market. 3. Queensland and regions benefit from population movements The REA Group has published a report revealing the interstate and intrastate population movements in the 12 months leading up to March 2021. Queensland is the biggest benefactor of this period, with some 30,000 people moving to the sunshine state. Over the same period, Sydney has lost 31,000 and Melbourne 32,000 people, but not all have moved to Queensland. Regional New South Wales saw an increase of 13,000 and regional Victoria a similar increase of 14,000. Considering that the population of both Melbourne and Sydney is over five million, it seems a wonder that a few thousand people can make a big impact. The trio discuss the significance of these population movements and their impact on regional price growth. The F to K of property success F - First Home Buyers and what do they need to do to be organised Purchasing your first home can be a daunting task, as you've never done it before. Whether you should purchase a home or an investment can be a bigger conundrum as first home buyers are often in an earlier stage of life, where they may not be established or settled yet. The trio discuss arranging and understanding finance, government and parental assistance, what first home buyers often overlook and what can trip up a good strategy. G - Goal Setting Taking time out to set goals will help you immensely, not only on your property journey but in your life journey as well. Determining goals will help you gain clarity on your property strategy and selection, whether you want to: retire richer, retire earlier, make a little bit more money right now, or make regular extra money so you can scale back work or give up your day job. The trio discuss how to approach goal setting and some common mistakes to avoid. H - Houses (not apartments) If capital growth is your aim, buying a property with a good land to asset ratio is essential. The trio discuss what denotes the difference between houses and units, and how the lack of uniformity can cause great confusion. Plus, buyers beware! Houses are not always a superi...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: Market update 1. Expected end of year activity If you're committed to purchasing a property, now is not the time to take your foot off the pedal. There is a distinct determination of buyers, vendors and agents to get deals done prior to Christmas and with other buyers getting distracted with Christmas preparations and other plans, now may be an opportune time to purchase. Unlike last year, where many agents worked through January after the desperation caused by lockdowns, agents want to take a break and are motivated to wrap up sales before the holidays. 2. Melbournians and Sydneysiders are moving back to the CBD Today's episode is about the contrarian approach to investing and one potential opportunity, (although the horse may have bolted) is purchasing a quality unit in the inner-ring or CBD that has unique attributes to provide long-term growth. Rental stock on the market for apartments in inner Melbourne have plummeted by 76% since February and this same count is down 56% in inner Sydney, showing that buyer demand for city units is now starting to pick up. 3. How COVID has impacted overseas property markets The Property Professor outlines the striking similarities between Portuguese and Australian property markets and the impact that covid has had in relation to commercial and residential property. Contrarian investing 1. What is contrarian investing? Contrarian investing is an investment style in which investors purposefully go against prevailing market trends by selling when others are buying, and buying when most investors are selling. Contrarians may be seen as courageous, unconventional, counterintuitive thinkers, able to withstand herding pressures from crowd-following conformists. As Warren Buffet has said ""Be fearful when others are greedy, and greedy when others are fearful." Contrarian investing is often discussed within share trading circles, but it is entirely relevant in property too. 2. Real examples of contrarian investing in property The Property Buyer talks through her own personal experience of purchasing property during the GFC, when buying conditions changed dramatically and many were fearful. Also more recently, a client who purchased four properties at the beginning of covid, who saw the opportunity, while others put their purchasing plans on hold. 3. What would happen if you purchased half-way through a market fall? The Property Planner shares his research on how your assets would have performed if you purchased shares mid-way through the GFC and 2020 covid crash and purchased property during the APRA driven downturn in 2018. When a market is falling, it can be one of the best times to buy. But it is scary, due to the uncertainty of how far the market will drop or how long the decline will last before it swings back up. 4. Property market downturns Check out our show notes to see a graph of the last few decades of downturns. The downturns look like blips in the long run. When the market declines, the magnitude is not as great and the length not as long as when the market is on the rise. The most recent downturn lasted 18 months, which felt like a long time when you're living it, but in the scheme of our lives, is not very long. 5. Segmenting markets - contrarian investing is not just about market timing Whilst buying when others are fearful of buying is an obviously contrarian approach, there are also other strategies to within...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode, Dave, Cate and Pete take you through: Market update 1. Thank you for your feedback We've received a number of listener reviews that are insightful and also gave us honest feedback, which we really appreciate. One was in relation to past performance bias, specifically whether past performance reliably predicts future performance and also the impact of our own personal biases. The Property Buyer acknowledges this feedback and hints at a future episode that will address human biases. 2. The state of retail property In the most recent JLL quarterly retail market report, the CBD retail vacancy rate in Adelaide is the highest it's ever been since 1993 at 16.8%. Regional retail has only a 3% vacancy rate. However, 'regional' in the retail sense has a different meaning to residential property. The Property Professor explains all in his market update. 3. Inflation is the talk of the town, but is it here to stay? Increasing inflation should lead to increasing wages, but most people assume that it equates to increased interest rates, making many nervous. Underlying inflation in Australia jumped to a six-year high of 2.1% in the September quarter, which is still well below the 4.6% experienced in the US. This level of inflation is only at the lower end of what the RBA targets, (being between 2% to 3%). The Property Planner talks through the factors that create upwards pressure on inflation, the RBA's response and whether inflation at this level is sustainable. Considerations for upgraders 1. How does upgrading fit into your property plan? The earlier you can start planning for your long-term home, the better. However this does come down to stage of life, and often people are not able to picture their future home until they've reached a certain level of stability or decided on the location that they want to live in. Understanding how your investment decisions and other lifestyle purchases fit in with your decision to upgrade is also key to making successful long-term purchases. For some, the long-term home may be out of reach due to stage of life or circumstances. For some who aren't ready to upgrade, rent-vesting or a stepping stone home may be the right choice for you. 2. Mapping out your future home Many buyers get hamstrung when it comes to the critical decision making because their search criteria is unreasonable. Having a clear plan on which suburbs to target, property types, architectural styles, land size, bedrooms and living spaces, (to name a few) is key to narrow in your search. Then, to ensure that you don't get bogged down and spin your wheels while the market continues to run away from you, have a plan of what you will be willing to compromise on if your dream home is out of reach. 3. Purchasing a property that you can grow into The holy grail of property ownership is only ever owning the one home, because each purchase and sale of a property eats into your wealth. Due to changing commitments and affordability, not many are able to achieve their dream home on the first go. However, you may consider buying a home with a larger block size with a smaller dwelling, where you could extend the home as your family grows, to avoid needing to sell. 4. Why are money goals so important? Finding a property that you want to live in for the rest of your life can be like finding a needle in a haystack and many are willing to pay an emotional premium to get into their dream home. In this situation, we're more likely to be stretching ourselves to the largest level of debt that we'll ever take...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: Market update 1. Handicaps for 'subject' to clauses The Property Buyer shares how agents are getting creative when dealing with a pool of buyers who don't want to submit unconditional offers. One particular agent is sharing a 'handicap list' for 'subject to' clauses. For example, his agency could factor in an additional $5,000 on top of the purchase price for a building and pest inspection, $10,000 for an extra 60 days before settlement, etc. The trio discuss the merits of this approach. 2. House prices have fallen in 7% of Australian suburbs During the March peak rate of growth, only 1.4% of suburbs posted a decline in values. This has sharply risen to 7%. Mining towns and some regional markets have reflected some of the largest drops. However, markets at the higher end have also weakened. During the three months ending in October, house prices in some unexpected prestigious Melbourne suburbs of Armadale, Mont Albert and Blackburn posted declines of 0.5%, 0.4% and 0.1% respectively. The trio discuss whether this may be due to high rise building releases or lack of attention from foreign buyers while overseas travel and international migration is on hold. The A to E of Property Success A - Area (location is key) Picking a great location is critical! You can change the size of the block and the dwelling on top of it, but you cannot change the location. The trio discuss the features to target if capital growth is your aim. Although the pandemic has changed the way we do business, the CBD will offer the much-desired amenity and being close to a source of water and having a nice view can also increase capital growth prospects. We can't under-estimate people's love affair with their city reigniting as things open back up either. B - Bungalows (and other period styles) The trio discuss the pre-war properties that Australian's love and can't get enough of. They are in limited supply and have highly desirable features such as high ceilings, big rooms, timber floors and are solidly built. The scarcity factor drives competition and growth for these properties, and also makes them very difficult to place a ceiling value on. It is for this reason that many of these period stunners fetch record high prices under competition. C - Capital growth is King (or Queen) When it comes to residential property, most people make more money from capital growth than from yield. The power of compound growth means that a difference in 2% capital growth could equate to a $3M differential over the course of a full working lifetime for your retirement kitty. If you are looking for rental return, commercial property could be an attractive option. However commercial property is not as resilient to economic shocks as residential property, this is because people always need somewhere to live. We may see a shift, particularly in the CBD and other centres where commercial will convert to residential. D - Dirt (the value is in the land) The appreciating component of the property is in the land and as the trio discussed in episode 125, it's not about the size of the land but the value of the land. If you're looking at a development, you need to consider features other than size, like frontage and heritage overlays, (among many other facets). E - Equity (use it!) The power of capital growth is that the equity built up in your asset can then be used to leverage into further investments, whether that be purchasing another property or shares. Unlike rental return, which coul...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode, Dave, Cate and Pete take you through: 1. Do cash rate rises slow down house prices? The Property Professor shares his recent research covering the last 30 years of cash rate rises and the effect on property prices. Is there a correlation? Listen to find out and visit the show notes to see the data! 2. Housing growth consistent over the last 3 months Nationally housing values increased a further 1.5% in October, which is in line with growth over September and August. Although slowing down from March's peak, 1.5% monthly growth annualised is still a whopping 18%. For most capitals, growth has slowed down since March, except for Adelaide and Brisbane, which have both increased. This is possibly because median values are lower in these cities, while other capital cities become less affordable. 3. Brisbane takes the mantle for highest month on month growth, but Hobart is still going strong Housing values grew 2.54% in Brisbane, while Hobart is coming down from extreme highs, posting a very strong 2%. Interestingly, property prices in Hobart are quite high relative to the rest of the nation, yet average incomes are 15% lower than national incomes. This points to money from the mainland being invested in Hobart and also indicates retirees and remote working sea-changers embracing the apple isle. 4. Regionals still outperforming capitals Growth in our regions has consistently been higher than capitals, which is shown in annual, quarterly and monthly growth figures. This indicates there is a still a drive to escape to the regions, but we wish there was more data! Where is the money coming from? The Property Buyer shares her purchasing experiences in Geelong, where three quarters of buyers in the current market are Melbournian. 5. Holiday locations and the great escape Interest in Queensland and key holiday destinations such as Noosa has continued burgeoning ahead. However, the trio warn that historically holidays locations have big runs of growth and then harsh corrections. 6. Will we see a rush of money to the property market? The trio discuss the March peak rate of growth and at the time, we were feeling secure and believing covid was behind us. Then comes the delta strain and further lockdowns dampening growth. With vaccination rates picking up, boarders re-opening and holidays around the corner, it seems like we're heading into another period of optimism that covid is in the rear view mirror. 7. Rental yields reducing as housing values soar Melbourne unit rental growth, (which reached as low as negative 13%), have finally recovered and is now in positive territory. However, even though rental growth is increasing, this has not kept pace with housing values, so rental yield as a percentage of the value of the property is actually decreasing. The average yield for houses in Sydney and Melbourne is likely as low as it's ever been, with rental yields at 2.20% and 2.40% respectively. This is one, (of many possible) indicators that the market is heated. 8. Listings on the rise but still at extremely low levels Compared with the last 6 years, total listings in 2021 are the lowest in number. Old listings (properties that have been on the market for over 180 days) have halved year on year for most capital cities, as old stock is snapped up. Thankfully, new listings have seen an uptick over October with the end of Melbourne and Sydney lockdowns and vendor confidence in the spring market conditions increasing. 9. Consumer sentiment in the property market...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ Market update 1. Spotting the suburbs across Australia that are suffering rental losses Our good friend Mike Mortlock from MCG Quantity Surveyors has instituted a rental losses index, which is a direct reflection of vacancy rates. A fantastic tool for any investor to add to their toolkit for identifying whether a location is a good area to invest in. The rental losses index has put a spotlight on university precincts in Melbourne in particular, but also Tarneit where brand new house and land packages dominate. Check out Cate's article in our show notes for more insights. 2. Lowest performing suburbs were on the fringe CoreLogic data reveals that the lowest performing suburbs in terms of capital growth were on the outskirts of capital cities. The largest declines in unit values have been in the outer fringe locations, rather than inner city high rise precincts, where higher density housing has historically been less common and therefore in is less demand. The oversupply of house and land packages has also dampened growth for detached houses. 3. The gap between houses and units is the greatest it's ever been House prices have surged by 28.9% in the 12 months to September 2021, which is more than double the 11.6% gain in unit values for the same period. CoreLogic data reveals the gap in Sydney to be 59% between median house price compared with median apartments, while in Melbourne the gap is 55.3%. These kind of stats would often scare people off, but there is a rising opportunity here in the unit market, as growth is likely to catch up to houses mainly because of affordability. 4. Is now a good time to sell? There is so much exuberance in the market, that now could be a great time to offload B-grade properties, which will have subdued capital growth in softer markets. Bigger is not necessarily better 1. The trap of bigger equals better In this week's episode the trio tackle the misconception that when it comes to capital growth, bigger land size is better. Where you consider properties on the same street with the same orientation, the bigger block of land will be valued higher (provided there are no encumbrances or other physical detractors). But where you are making a decision between a bigger block of land in one location and smaller block of land in a different location, people can make a lot of mistakes by chasing the bigger land. 2. Where did the idea of bigger is better originate? The great Australian dream of having a quarter acre block, with a hills hoist in the backyard and mowing the lawn on Sundays was the aspirational model for family living. That is not necessarily the case now, where suburbs close to the city where the not-so wealthy historically lived in closer confines are now highly sought after. Magazines and seminars have also created hype around bigger land and development potential, creating the misconception that people can get rich if they subdivide the land. 3. Land value not land size The trio discuss the importance of considering the land value, rather than the land size. Location is particularly important here and will have a significant impact on the land value. A smaller block of land in a location closer to the city with have a higher land value than a bigger block of land on the fringes. Think back to Christmas day with the kids, who would much prefer a giant Santa sack filled with gifts from the reject shop because there's more of it, but the smaller Tiffany box is much more valuable! 4. When is the land size too...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: Weekly market updates 1. Investor activity and the impact on our rental markets CoreLogic data shows that from early 2017 through to 2019, investor lending started to drop away due to APRA intervention. That means that less investors have been buying rentals property since pre-2017, resulting in less rental properties on the market. This has created a tight rental market with vacancy rates going down and rents increasing. A lot of investors are happy that rents and prices are going up, but this spells some challenges now for the community of renters, which will only increase when international migration picks up again. Supply is inelastic, so the government needs to consider how we're going to increase the supply of property to cater for new entrants to Australia. 2. Predictions on APRA measures The measures instituted by APRA from 2017 to 2019 ground investment lending to a halt. The Property Buyer predicts that we may see a change in policy, where higher buffer rates may only apply to the asset being purchased and not to existing debt, as significant issues will be faced if investors are chased away from the market. The Property Planner predicts that the current APRA measure of raising buffer rate by 0.5% is unlikely to have a large impact and the regulatory body will need to consider other measures to put in place. 3. Parity between median house price and median unit price per suburb Recent data from CoreLogic compares the value of units against houses from 2016 to now for each suburb. There is an emerging opportunity for buyers who are looking at units, where you can identify a sweet spot for advantageous purchasing in a particular area. Older style apartments in the east have taken a hit over the last 10 years, due to gentrification of inner-ring markets in the northern and western parts of Melbourne. This shift saw an outperformance of houses, which were at one stage priced the same as eastern units, as people wanting to buy something for the longer-term and closer to the city and looked to the North and the West. 4. Australia in pole position in the transition to renewable energies Over the next two decades, the IMF expects a sixfold increase in demand for critical minerals worth $17.6 trillion, driven by the race to hit net zero emissions. The IMF has singled Australia to be in the top position to benefit in this transition, as nickel, copper, lithium and cobalt are key components in batteries and renewable energies and crucial in the transition away from fossil fuels. Australia is among the top three for global reserves for each of the four critical minerals, leaving us in a prime position to benefit from the new electricity storage and generation shift. Top investment tips #2 1. Which state or city should you invest in? The trio discuss the considerations of selecting which state or city to invest in, including diversification, market cycles, land tax that eats into your yield, the plans around your future home purchase and the dangers of hot-spotting. 2. Your budget should drive the choice Data confirms that Melbourne and Sydney have outperformed other capital cities over the decades. Selecting an outperforming suburb can make a reasonable difference to your end position over a long period of time. However, it's critical to select a quality asset and if your price range means that you are purchasing a compromised asset, it may pay to look at investing in a different capital city that better aligns with your...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode, Dave, Cate and Pete take you through: Weekly market updates 1. Labour shortage predictions As ABC News shared, Australia is looking at having over 100,000 vacant jobs in the construction sector, including builders, tradies and project managers. This is likely to have a big impact on the state and federal government planned projects as well as residential builds. This will most likely influence purchasing decisions as well, as people looking to extend or remodel may opt to purchase instead of waiting it out on a long construction waiting list. 2. Vacancy rates In the latest vacancy rates released by SQM research, 5five of our capital cities have vacancy rates below 1%, Brisbane at 1.4%, Sydney at 2.7% and Melbourne at 3.5%. Melbourne and Sydney have the highest vacancies, due to the languishing CBD rentals, which currently sit at 8.4% and 8.2% respectively. For the rest of Australia, the rental market is extremely tight, based on an industry accepted rate of 2% being seen as the equilibrium. Future overseas migration is expected to add further pressure to the rental market, creating a need for investors, (or government to apply considerable funding to public housing.) Top investment tips #1 1. How does your future home fit with your investment strategy? One of the biggest pieces of the puzzle, which is often forgotten about, is how your future home plans will fit into your investment pathway. Having a clear understanding of how your investment purchase could impact your ability to purchase your future home is critical. Many end up having to sell properties to secure their dream home and this is one of the biggest killers of wealth that we come across. Happily, this can all be avoided with some planning. 2. Removing shades of grey - home vs investment When purchasing a property, it's important to be clear on whether it's a home or a an investment. You will make it really hard for yourself and risk missing the mark if you conflate the two. When trying to overlay investment principles on a home, you may end up with something that you don't love and life is too short! 3. Set your money goals for surplus cash flow and available funds buffers To work out what is an ideal price range for a comfortable purchase that won't break the bank, you need a clear understanding of your cash flow and expenses. This is a difficult exercise in and of itself, however covid has added an extra layer of complexity as people aren't spending as much as what they typically would have. Go through your expenses and determine what your living expenses are likely to be post-purchase, you may even discover areas in your spending that you can improve on. Set money goals of what you would like your surplus cash flow and available funds buffer to be after the purchase, and this will help you determine what price point you can afford. 4. The traps of looking for a bargain Hunting for a bargain at the expense of quality is one of the biggest mistakes that you can make and finding a bargain on an A-grade property is a rarity. If you find that a property is priced on the lower end, you need to ask yourself why? Is the property compromised and how? In a strong market, don't expect to buy a bargain and remember, to secure a property, you need to be willing to pay more than anyone else! 5. What is your financial goal for the property? Determining whether you are targeting capital growth, yield or a balance of the two will feed into the location and dwelling type selection. This is...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ 1. How long has it taken property prices to double? After last week's show when The Property Buyer prodded for more retrospective data, the Property Professor shares his research in Part B of how long it's taken property prices to double for the previous decade, starting from March 2002. While Sydney took first place for the most recent 10 years, they are dead last for the previous 10, while Hobart takes the cake and required only 3 years to double in value during this particular decade. 2. September growth posts solid results amid an easing growth rate Australian housing values increased a further 1.5% in September, after 1.5% in August and 1.6% in July. Annual housing growth has finally cracked the 20% mark, with September's results pushing the annual figure to 20.3%, which is now the fastest pace since June 1989. 3. Perth and Hobart surprise Astonishingly, the Hobart unit market continues to surprise. Values in Hobart have risen 26.8% over the last year, while the unit segment has risen 31%. Perth has reappeared in CoreLogic data after a short hiatus while CoreLogic investigated some inconsistencies. Annual figures for Perth show 18% growth at the end of September, which is a large jump from the 10.8% noted in July's index results. 4. Rents continue to rise towards rental crisis The lowest performer in the rental market is Melbourne, which is up 4.1% for houses and still in negative territory for units at - 1.6%. Other capital cities record results of rental increases between 4% and 15%, while Darwin is at 21.2% increase in rents for houses and 20.3% for units. Some people may argue that we have a housing crisis on our hands. 5. The best cure for rising housing prices is rising housing prices The more house prices increase, the more unaffordable they become. By this fact alone, the rate of growth will slow down and we're already starting to see that. It's also another reason why we're seeing the value of unit growth converge again in line with house price growth, as people who are priced out of the housing market, turn to units. Other factors include the cost of funding for lenders increasing, which we will start to see through rising interest rates and also APRA intervention to slow down lending. If the RBA don't increase rates until the start of 2024, these factors will make it harder to borrow money and the property market will likely demonstrate an ease in the pace of growth in 2022. 6. Consumer confidence - time to buy a dwelling Overall, people still think that it's slightly a negative time to buy a dwelling, as the index reached 96.7 points in September, recovering from 88.9 in August. The Index is still 26.8% below its November peak of 132, but it is closer to the 100 mark, which suggests a more balanced view. WA is a stand out at 118.8, they are very optimistic about it being a good time to buy a property. Queensland is at 105, but Victoria is the lowest and the most pessimistic about the property market at 87.3. 7. Growing gap between Melbourne and Sydney medians Melbourne's median is only 73% of Sydney's. Melbourne didn't trade at all during lockdowns, except for those who were willing to purchase sight unseen. This disparity is likely to condense over time and we wouldn't be surprised if we saw this discrepancy tighten towards the end of the year and in the years to come. 8. Listings - new listings, total listings and monthly sales New listings and total listings have taken a dive. On the other hand, monthly sales relative to previous years is really strong, which is telling a story of enormous buye...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode, Dave, Cate and Pete take you through: 1. Heritage listing and heritage overlay The trio discuss the impact of heritage listings, which protect a particular property. Although the supply of heritage property is relatively limited, so is the demand, due to the restrictions in being able to renovate and update the look of the property. Heritage overlay on the other hand protects the consistency of the properties on a street, normally to preserve the charm and architectural appeal of a property in a place of historical significance. Heritage overlays are varied and the types of heritage overlays range from façade appearance to paint colours to specific attributes of heritage significance, such as chimneys and windows. Many heritage overlays are specific to particular streets and precincts too. 2. Council zoning and regulations If you're purchasing in a developer friendly zone and the houses in the street are 40 years old or more, then you need to consider the future impact this will have on the street scape. Council regulations can limit the amount of property that can be built on a block of land by setting a minimum site area. If the minimum site area is quite large, it will be very difficult to subdivide the land and there is little chance of developments in this area. 3. NIMBY suburbs - not in my backyard! The state government will give local governments targets on increasing population density. The approach taken by NIMBY suburbs will be to allow for high density dwellings on main roads and near transport hubs, rather than medium density in the streets. The drawcard of these suburbs is not to live in an apartment on the main road, but in a beautiful character home in the side streets. As character or period homes are no longer being built, they are in limited supply and, conversely high demand. OECD data has shown that Australian house values have experienced the fourth highest house price growth over the last 20 years because of development laws. 4. Purchasing a block with subdivision capability If you are not set on doing a subdivision, but would like the option to do it at some undefined time down the track, question whether this is the right strategy for you. If your block has the ability to subdivide, then the chances are that the rest of the houses on the street also do. This means that your street can turn into a medium density hot spot of renters and first time buyers, with lots of cars in the street and cheap built decaying units. If you are thinking of subdividing, then it's better to be the first on the street and not the 20th! And in a gentrifying area, a capital growth, buy and hold strategy can be optimized if you can pick the A grade street and watch it beautify over the years. 5. The population paradox On the macro or city level, you want to look at purchasing in a city that is attracting more people and experiencing population growth. On the suburb level, look for a stable population, because that implies that there isn't a high supply of new property. In NIMBY suburbs, there is a high level of demand, but supply remains the same. This is in contrast with new Greenfield estates, where the supply is great, and demand raises to meet the supply before more are built. This is also a skewed sector of the market, where demand could be artificially created by governemnt incentives and grants to purchase new property. And don't forget to consider the land to asset ratio! 6. Rural towns and infrastructure When comparing country towns, mains...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode, Dave, Cate and Pete take you through: Weekly market updates 1. APRA concerned over high debt-to-income lending, but no intervention for now Outstanding housing credit hit $1.9 trillion in June, which is 4.7% higher than 12 months ago. Compared with how the property market has moved in the last year, it doesn't seem too high. However, the June quarter saw a rise of high debt-to-income lending which is now at 21.9%, up from 15% two years ago. At the same time, lending with high loan to value ratios fell and interest only loans are the least in number they've been in the last two years. This indicates that we may be borrowing more, but not leveraging as hard and APRA doesn't believe lending standards are deteriorating. 2. Latest ABS stats on capital city property prices The ABS has released figures for the June quarter for the Residential Property Price Index, showing price increases of 6.7% over the last quarter for the combined capitals. This is the fastest rate of growth in any quarter since 2003. Over the last 12 months, values rose by 16.8%. Interestingly, capital city figures did not match CoreLogic's analysis in all cases which highlights discrepancies between data houses and the challenges of relying on data from one source. 3. The dangers of data delay Each capital city is exhibiting enormous growth runs, despite the pandemic. In Melbourne and Canberra, our ability to trade has been so restricted, that the only purchasers left in the market are those who are willing to purchase sight unseen or do video walk throughs of a property. This is a perfect illustration of data lag, as this won't flow through in the numbers until later. Location based factors that impact supply and demand 1. Access to public transport and shops Access to public transport is a key driver for demand and is increasingly important in larger cities. Access to shops is another key driver, although retail trade analysis shows that the larger the shopping centre, the further people are willing to travel to reach there. What we see now is that the desire to be close to shopping centres has been replaced with a desire to access local shops and nice cafes. Being within walking distance to your transport hub or local shopping precinct is a major draw card. 2. Quality schools Proximity to quality schools, particularly prestigious public schools where the perception is that your child will get a private school education at public school prices, is a major driver for many parents when picking a location. This greatly increases demand for properties that are within the zone of a public school or properties within 30 minutes commute of private schools. The Property Buyer shares a tip to do a cost benefit analysis, as many parents will pay extra to get in the zone of a public school, but maybe you'd be better off paying the private school fees and saving on the elevated purchase costs? 3. How close is too close? Being nearby to great amenities and services can greatly impact the desirability of a location, but being too close can be problematic. Train lines, rubbish tips, industrial areas, petrol stations and shopping precincts are just a few of the things that you need to be mindful of being too close to. Think about the noise, the people and the smells. Is the property too close for comfort? 4. Proximity to the CBD, are we at the beginning of a new era? The CBD apartment market has been one of the worst hit during covid, but will we see a permanent exodus from the CBD? The trio discuss the...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ Weekly market updates 1. How have two-bedroom, single fronters been impacted through covid? Cate shares an article she has recently written analysing the performance of 6 two bedroom, single front cottages across Melbourne. A lot of people have expounded the popularity of 3 bedroom houses in the wake of covid lockdowns (including us), however the demand for these smaller dwellings has been strong. Why is that? Visit the show notes to read the article. 2. Dangers of online mortgage calculators Dave shares the real-life examples that unsuspecting consumers have come across when using unreliable online mortgage calculators. In one particular example, a couple saw a differential of $160,000 between the online calculator and their credit assessed borrowing capacity, all because the online calculator didn't ask how many dependents they had. Other traps include not differentiating between variable incomes and purchasing in high-density post codes were income could be shaded to as low as 65%. The devil is in the detail when determining your borrowing capacity. Macro-economic factors that impact supply and demand 1. Why is supply and demand important? The Property Professor takes us through Economics 101 principles of supply and demand. These forces determine the price of any commodity. That is true of bananas impacted by cyclones, steel, cars, and of course, property! 2. Consumer confidence and the self-fulfilling prophecy of market sentiment A great influence on consumer confidence is security of employment. We are more likely to commit to a mortgage when we feel safe in our jobs, which results in more demand and property prices increasing. There was a big dip in consumer confidence from March to June in 2020, largely due to the uncertainty of covid and the economic impact. But when we saw that the sky was not going to fall in (thanks to Government stimulus and lenders offering repayment holidays), consumer confidence lifted and property prices started to increase again. If enough people believe that property prices will rise quickly, more people will jump into the market due to fear of missing out, thus increasing demand and therefore property prices - the self-fulfilling prophecy. 3. State of the economy, foreign investment and development When consumer confidence is high and jobs are secure, you get extra foreign investment pouring into the country when the economy is doing well. This goes towards development, whether commercial or residential, and drives business investment. This creates more jobs, lower unemployment and more money in the economy to go towards investing in assets. Employment and unemployment is a major consideration, with Melbourne now in it's 6th lockdown, the economy is impacted. But this will create opportunity on the other side, when life returns (somewhat) back to normal. So far, we are yet to see property prices negatively impacted by such concerns but we don't make assumptions in this unprecedented environment we're navigating. 4. The Wealth Effect driving spending When property values have increased, jobs are secure and confidence is high, people feel wealthier. The more wealthier you feel, the more you spend, which makes you happy and then you spend more! Government stimulus, cash flow boosts, lower interest rates and higher savings booming across businesses and consumers suggests that many people are feeling wealthier and are itching to spend. 5. Government assistance and stimulus The trio discuss the impact of government assistance and stimulus, which is often very targeted...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode, Dave, Cate and Pete take you through: 1. Victoria still trading despite lockdown Non-auction sales have risen to 1,028 over the week. Since listings have gone down, this indicates that older stock on the market is clearing and sales, (including online auctions) are going ahead in full force. Virtual open for inspections are occurring, where the vendor gives you a tour of their house and is actively involved in the selling process. Cate shares her tips on how to navigate this innovative way of inspecting property. 2. PIPA investor survey - where do you get your property investment education from? The #1 source for property investment education was from professional advisors, which is great news for all the Australian's who have been able to make smart property decisions. Second on the ladder was podcasts. Traditionally webinars and seminars were at the top of the list, now only making up 2% each, showing the extent of market disruption. The Property Professor was sad to say that only 4.5% of people get their education from books. 3. Value growth in August continues to lose steam, but still going strong Australian housing values increased a further 1.5% in August, showcasing an annualised rate of +18% pa which is still very high. But we've now had a five month trend of slowing growth, peaking in March at +2.8% and then easing month on month. We think this growth trend will continue. Over the last 12 months, we've seen +18.4% growth in property values and that will soon reach above 20%. 4. Stand outs for the month There is no end in sight for Hobart's growth, increasing in August by 2.3%, with Canberra hot on its heals with 2.2% growth. Over the year, Hobart has grown by 24.5% and boasting total returns of 30% when you factor in rent. In the above 20% club for annual growth is also Darwin 22%, Canberra 22.5% and Sydney who has just joined the party with 20.9%. Brisbane is not far behind on 18.3% and Adelaide at 17.9%. Stay tuned for next week's episode where Pete will reveal how long it's taken for each city to double in price. 5. What happened to Perth? It seems CoreLogic have been listening to our podcast, and is now trying to figure out why Perth growth has been lagging and have actually removed Perth from their daily and monthly indices. CoreLogic is now investigating a divergence in housing market measurements for Perth. Watch this space... 6. Rental growth drives forward with all capitals on an incline, except Darwin and Perth Darwin and Perth have led the capital cities in rental growth over the last 12 months, Darwin in particular increasing by 23% for houses and 21% for units. Melbourne is still in negative territory for units, however a sharp turn-around is visible from when the market bottomed out. The trio ponder the reasons behind the trending rise in unit rents. 7. New listings take a dive, should you hold off on making a purchase? Overall, listings fell nationally by 7.8%, largely due to the two biggest markets of Sydney and Melbourne taking a dive in listing volumes of -10.7% and -31.2% respectively. The Melbourne market has been largely affected by lockdowns and vendors electing not to sell, (or to delay their campaigns). But demand remains strong, largely driven by FOMO. We think the ratio of buyers to sellers will stay largely the same, even when more vendors come onto the market, as there are plenty of buyers who are also electing to wait it out. Waiting it out could be a good idea if you're not desperate to...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ Weekly market updates 1. Cate and Pete's exciting auction weekend Tune in to hear Cate and Pete's thrilling experiences of each successfully securing a property over the weekend, despite the lockdown challenges and last minute changes of plans. 2. Tight rental vacancy rates The national monthly vacancy rate holds steady at 1.7%, from June to July. Not surprisingly, the Sydney and Melbourne CBD markets continue to experience higher vacancies, with Sydney increasing up to 6.1%, now higher than Melbourne's 5.7%. Brisbane is the only other capital city with vacancies above 1%. The tight vacancy rates have meant that rents have increased 13.7% over the last 12 months. The trio discuss why this is happening, given that international borders are closed and we're not seeing any population increases. Agent behaviours that buyer's don't like 1. Extending the negotiation or offer acceptance period The agent has given you a deadline to submit your offer, you wait with bated breath... Then the acceptance period gets extended. The reality is that there is no obligation for the agent to stick by a specific timeframe and the agent has full control of the process; they call shots. While buyers will be doing their best to shut down competition, it's the agent's job to bring extra players to the fold and create competition to bolster prices to great a great result for the vendor. The Property Buyer gives her tips and key questions to explore before you put pen to paper and submit your offer. 2. Asking if your best offer is actually that The Property Buyer estimates that 70% of the time when an agent asks you for your best offer, they will come back to you asking if that's your best. This is common practice. The trio discuss how to navigate this situation. 3. Not offering private inspections There may be many reasons why an agent declines a private inspection. They may be related to the vendor's circumstances or the agent could just be busy, (or lazy). Some reasons may be related to you! The agent may believe that your budget is nowhere close to where it needs to be or that you're not serious about the property. Strong conditions in a seller's market, where there is lots of interest in the property may mean that the agent doesn't have to go the extra mile and give prospective purchasers private inspections. In Victoria, if the property is tenanted, the tenants are entitled to rebates for every open and agents don't want to rack up a huge bill! 4. Not returning your phone calls In this market, agents are being inundated with enquiries and properties are selling in days, not weeks. The trio discuss the fundamentals of providing good service and getting back to people in a timely manner. Those that prosper are the ones that provide good service consistently. 5. Insisting on a signed contract and a deposit payment Agency practices can differ widely. One may be ok with an offer submitted via email, while another may insist on a signed contract with deposit. Agents and vendors no doubt have been burned in the past by receiving verbal offers from buyers that have then disappeared over night. The trio talk about the agent obligations in running a trust account, and recommend that buyers always ask for a receipt. Remember, an agent is only legally required to present your offer to a vendor if you've submitted a signed contract with a consideration. 6. Not disclosing sold prices on the internet This is a huge frustration for buyers and businesses in the property industry. It means that the quality of the data on hand...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's Ep#116, Dave, Cate and Pete take you through: Weekly market updates 1. The price of iron ore has dropped by 30% since the end of July and property growth in Perth wanes Looking at the daily CoreLogic index, Perth is the only city exhibiting negative growth this month. Although we don't place as much trust in the daily index, Perth has shown, (over 2021) to have the least growth of all capital cities, at 11%. The declining price of iron ore hasn't helped Perth as far as the economy and property market is concerned. It looks as if the Perth property market is flattening out. 2. Latest unemployment data for July ABS unemployment data has shown the unemployment rate drop to 4.6% from 4.9% in June, which is the lowest rate since 2008, (post the GFC). However, in the wake of lockdowns, the participation rate has fallen by 1.3 points over the year, which indicates that people leaving the job search yet not being picked up in unemployment statistics. This could be due to retirees hitting the go button or casual workers holding off on finding employment to take the opportunity to upskill. The effective unemployment rate could be actually 6%. 3. The lay of the land post lockdown As vendors put their plans to sell on hold, post-lockdown campaigns are going to bank up. It's likely that auction campaigns could be reduced to run for only two weeks, to accommodate for the back log and desire to sell prior to Christmas. This could be a good opportunity for purchasers to take advantage of. It is critical to be prepared and ready, have your finance approved so you can pivot quickly leading into the spring market. How much can I borrow? 1. Assessment of variable and rental income Eight out of ten people have some form of variable income, whether that's overtime, commissions, bonuses, sub-contracting or self-employed income. This is a key component for lender policy, as lenders have different methods of assessing and more importantly, shading, (moderating) variable income. However, there are second tier lenders who will consider 100% of your variable income, having significant impact on your purchase price, strategy and portfolio planning. Real estate agents are a perfect example, where they are typically on a modest salary and the majority of income earnt is in commission payments. 2. Rental incomes Much like variable incomes, lenders will usually shade rental income to 70-80% when assessing your borrowing power. This is to make allowances for rental vacancies and property maintenance. Similarly, to variable there are second tier lenders who will not shade rental income. 3. Vanilla or rainbow deals PAYG applicants, with no variations in income are referred to as 'vanilla deals' - plain, delicious and easy to get approved. However, if you have variable income, rental income, credit issues or you're an expat living overseas, (or any other challenging aspects to your application), it pays to have a strategic mortgage broker in your corner, who is an expert in the market and can find you the most favourable lender and product offering to maximise your borrowing power. 4. Interest only vs principle and interest When APRA implemented caps to interest only and investment lending, the way interest only loans were assessed also changed. If you elect to have an interest only period, the lender will assess your capacity to repay the loan based on the remaining P&I term. This means that if you have chosen 5 years interest only, you will be assessed based on your ability to repay the loan over a 25 year period, rathe...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode, Dave, Cate and Pete take you through: Weekly market updates 1. Sales outweigh listings Data from Domain shows that for every new listing, there are 1.4 sales. In simple terms, more properties are being sold than put on the market for sale. This spells a challenging buyer-seller imbalance and one that we can anticipate will be exacerbated by the impacts of lockdowns across our nation. 2. Correlating covid cases with housing sales Interesting data tracking the number of daily covid cases and the number of housing sales in the Northern beaches of Sydney shows that the higher case numbers, the higher the sales volume. Ability to trade during the pandemic is one key factor, but what is causing this buyer demand? The trio question whether it is happening across broader Sydney and whether it is a correlation or merely a coincidence. 3. Sharp decline in 'Time to buy a dwelling' index The Westpac-Melbourne Institute's "Time to buy a dwelling index" has posted a sharp decline of 8 points from July, down to 88.9 in August. This is the second lowest reading in the last 10 years. The index is a good forward leading indicator of what is likely to happen in the market and suggests owner occupiers are feeling the heat and the market is getting too heady for first time buyers and upgraders. Remember! When the rest of the pack are fearful can be a very good time to buy. How much can I borrow? 1. The age-old question - how much can I borrow? Often the first question our strategic mortgage brokers get from eager clients is 'how much can I borrow?". Rarely straight forward, it's a vexed question with various nuances to be worked through. Each lender has their own set of rates and policies, and mind you, there are about 60 lenders out there, all with varying products on offer! Which lender will treat your scenario the most favourably can be broken down into four key factors: 1. assessment rates. 2. variable incomes. 3. interest only vs principal and interest 4. how lenders mortgage insurance impacts purchase price. In this episode, the trio tackle the ins and outs of assessment rates. 2. What are assessment rates? The assessment rate is the rate that lenders use to assess your borrowing capacity and this rate is always higher than the rate you are actually going to pay on your mortgage. The purpose of the assessment rate is to stress test your ability to make repayments to account for future uncertainties such as: future rate rises, reductions in income, unemployment, change of employment, illness, divorce, expected events (having children) or other unexpected events that may happen during the loan term (which is often 30 years). 3. The floor assessment rate Floor assessment rates are mandated by APRA for the banks and also one of the tools that APRA used when trying to slow down interest only and investment loans. The floor assessment rate is the lowest rate that a bank will use to assess borrowing power. As an example, Westpac's floor assessment rate is 5.05%. When assessing borrowing power, most lenders will use the higher of your actual rate + 2.5% OR the floor assessment rate. 4. Why using online calculators is fraught with danger There are many different considerations which go into answering the question 'How much can I borrow?' Loan to value ratios, lenders mortgage insurance...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this episode Dave, Cate and Pete take you through: Weekly market updates 1. Rise of the regions The growth experienced over the last 12 months in our regional cities has taken the nation by storm. But is this driven by an escape from the cities or the prospect of buying bigger homes? There is certainly a correlation between larger housing/land and regional moves, particularly for those regional cities which are within commuting distance to the capital. 2. The experiment in New Zealand Over the last few months we've seen our friends in New Zealand abolish negative gearing, introduce macro prudential measures on loan to value ratios and more recently, there are talks of giving the RBNZ more power to restrict lending based on debt to income ratios. Quarterly value growth has more than halved since April as a result of these measures, rising 4.3% in the three months ending in July, down from 8.9% in the previous quarter. The New Zealand market is a good barometer for where Australia is heading, with unemployment down to 4.0% in NZ and inflation hitting 3.3%. Interest rates are almost certainly going to rise next month. We continue to watch the story unfold in New Zealand with keen interest. Olympic Games' impact on property values 1. Property price performance and major sporting events The trio discuss studies conducted on how major sporting events impact property price performance in host cities. The evidence shows that results are not uniform, and largely depend on the coordination and planning of developments and the scale of total investments. In other words, the development of infrastructure built for the purpose of the event and the longevity and repurposed use post the event. 2. When can you expect an uplift in prices? The Property Professor shares research conducted on the Sydney Olympics, which revealed that host suburbs experienced substantially higher growth during the bidding and pre-Olympic periods, but not after the Olympics were held in 2000. 3. Athlete villages across the world and post-Olympic planning The trio discuss the athlete villages built for London, Rio, Munich, Turin and Tokyo. Athlete accommodation in these cities has been repurposed with varying degrees of success, from selling to private owners, public and refugee housing and student accommodation. The key to understanding whether these dwellings will be a good investment, will largely depend on the post-event plan, execution and desirability. 4. The story of West Heidelberg and Wendouree after the Melbourne 1956 games West Heidelberg is on the fringes of Melbourne's affluent eastern suburbs, yet struggles with considerably higher levels of crime and poverty. Post the Olympic Games, the athletes village was converted to public housing, with 2,000 public housing residents living in the Olympic village today. It continues to be a low socio-economic area, similar to Wendouree West in Ballarat which hosted the rowing events. 5. Longevity of stadiums Nations hosting major sporting events are getting creative with their building of infrastructure, in particular, building temporary structures which will be demolished after use. For the Winter Olympics, South Korea built a temporary stadium which was used 4 times and immediately torn down. A stadium built out of shipping containers is being built for the Qatar 2022 World Cup. If you are going to invest, be sure that the infrastructure that lures you in the first place is going to stay on! 6. Infrastructure upgrades that drive values The trio...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode, Dave, Cate and Pete take you through: 1. Value growth tapers over July National housing values increased a further +1.6% in July. Although still a strong result, value growth has been tapering from the recent peak in March 2021, where value growth reached +2.8% for the month. The trio explore the drivers contributing to the dissipating steam in the market, from affordability, seasonal factors and recent lockdowns in major capital cities. 2. Annual growth rates inch closer record highs CoreLogic annual growth rates report +16.1% growth for the national market over the last 12 months. This is not far off the standout year of 2003, where growth reached +19.3%. The trio discuss the likelihood of 2021 topping this record high, where already for the months of January through to July this year, growth has achieved +14%. Annualised, a forecasted figure of +21% results, but what impact will the lockdowns have? 3. Hobart, Darwin and Canberra over 20% The nation's smallest capital cities of Hobart, Darwin and Canberra are leading the pack for annual growth. Interestingly, Darwin is at the top of the ladder recording a whopping +23.4% annual growth, but is also the cheapest capital city with a median price of $486,054. Darwin's history has been volatile in terms of property price increases and decreases, so no one is suggesting to jump on board the Darwin bandwagon. The trio wonder whether the large increase in property listings for Darwin, (which is up +39% from last year), indicates that Darwin property owners are taking advantage of the growth spurt to jump ship. 4. Housing boom takes on the world Of the 40 countries covered by the OECD, only 3 have experienced declining house prices in the first three months of 2021. This is the smallest proportion since the OECD began tracking this data in 2000. This global phenomena can be put down to all the stimulus money floating around, as countries fight off the economic impacts of the pandemic. Despite our friends in New Zealand abolishing negative gearing and implementing macro prudential measures to take the heat out of the market, prices continue to rise. This indicates that it's not investors who are driving up prices. 5. Lending indicators continue to show increased activity from investors Recent ABS data shows that new loan commitments relating to housing fell overall -1.6% in June. First home buyers took the biggest hit, falling -7.8%, while investors showed a modest increase of +0.7%. The trio discuss buyer fatigue, increasing unaffordability and the end of government incentives which mark the shift. However, investors make up 28.7% of the current residential property lending market, which is still a way off 2015 levels of 45% which sparked APRA intervention. 6. Regionals continue steady growth Regional cities continue their strong growth run, posting +1.7% growth vs capital cities +1.6%. Whilst covid certainly sparked an 'escape from the city attitude', the trio pose the question whether the increased dwelling sizes and affordability to purchase larger homes are actually what's driving regional interest. 7. Property listings tell the story of demand far outstripping supply The number of listings that have been on the market for over 6 months has reduced drastically, down 49.8% from the last year. This indicates that demand is so strong, less desirable properties are being snapped up due to the current level of competition in the market. The past 12 months has seen...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ Weekly market updates 1. NAB late to the property party - bumps up property forecast for 2021 In its quarterly report, NAB has recently adjusted its property forecast for national price growth to now hit 19% in 2021. This is bumped up from its prediction 3 months ago of 14%, (and 6 months ago of 8%). Just goes to show, that if you're not a specialist in the market, you tend to lag behind the data and we're seeing that consistently across banks and investment firm economists. And of course, being bold is not how many economists like to express themselves. 2. Labor reveals plans for property in the run up to the next election A collective sigh of relief was audible all over the nation, after Labor announced that it would not be pursuing changes to negative gearing and capital gains tax. This is an encouraging result, as we are currently facing a housing crisis in our country, and the most vulnerable are experiencing challenges in the rental market. It may come as a surprise, but more than 90% of property investment only own one or two properties. Signalling that it is mum and dad investors that make up the majority of these investors, and while some could say that they are and simply looking to better their retirement, the reality is that they are providing shelter to a significant percentage of our nation's population, and unlike many other nations, Australia doesn't have a social housing policy that provisions for shelter for the majority of renters. How our ageing population drives Australian property markets 1. Ikigai and retirement planning, what is your reason for being? The trio discuss the importance of retirement planning, which for our younger generations, may seem too far into the future to imagine. However, the proliferation of the FIRE movement (financial independence, retire early), has started to permeate and evolve traditional thinking around retirement ages. There are other options that investors can take to retire early, but this takes planning and sacrifice to make happen. Of course, a big part of retirement planning is ensuring that you have a reason for being (or getting out of bed each day), which the Japanese call 'Ikigai'. So much of our identity can be connected to what we do for work, and it is important in retirement planning to ensure that you have the ability to fund your interests once work slows down or stops. 2. Explaining our population pyramid Over time, the percentage of our ageing population has increased. In 1927 our population aged 65 and over was 5%, which moved to 9% by 1977 and is now 15% as at 2017. ABS Projections expect that this will have reached 22% by 2057 and 25% by 2097. 3. Global impacts of an ageing population Australia is not the only nation facing the challenges of an ageing population. Across the globe, Japan's economy has been stagnating for decades, due to increased costs for health and retirement funding. With it's one child policy, China was heading this way too, but have since evolved their policy to mitigate the effects. If China's economy stagnates, this could have international impacts. Thankfully, Australia has one of the best retirement funding schemes in the world, but many who are currently retiring didn't have access to Superannuation for their entire working life. 4. Historical and social factors that have contributed to our increasing elderly population The trio discuss the key changes in our society and economy that are driving our ever-increasing elderly population. From life expectancy, waves of migration activity, women in the work force, slower birth rates and families having less...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's Ep#111, Dave, Cate and Pete take you through: 1. Booms and busts The trio discuss the booms and busts from the years of 2003 to 2020. For each capital city and nationally, they cover the top performing 3 years and also the bottom 3 years during this time. Check out our show notes for a special excel visual with all of the key data. 2. 2003 the star performer 2003 was the best year nationally and made it in the top 3 for each capital city, except Darwin. Although not in the top 3 for Darwin, this capital city still clocked double digit growth for the year. Nationally, price growth for 2003 reached a whopping 19.3%. The trio explore the various reasons why 2003 recorded top results, from availability of finance, movements of baby boomers and first time buyers, the advent of mortgage brokers, introduction of government stimulus and property price stagnation in the years leading up to this boom. 3. 2018 the worst year Nationally, 2018 was the worst year during this period, recording home value declines of 5.5%. Interestingly, this was also the worst year for Melbourne and Sydney, and third worst year for Brisbane, but not for any other capital city. This speaks to the weight of the Sydney and Melbourne market, and their influence on national prices. The trio were happy to blame credit policy as one of the key ingredients for this particular year's woes in the residential housing market. 4. The astounding story of Hobart in 2003 Amazingly, Hobart exhibited median house price growth of 55.3% in 2003. How can that be? The trio discuss the pre-2003 environment on mainland Australia which saw Hobart quickly become a magnet for investors and retirees. As the population of Hobart is so low, any peaks or troughs in interest can have a great impact on property values. 5. Resource markets The early noughties saw the resources sector start to boom, which correlates to double digit increases for Perth from 2003 to 2006 and Darwin to 2007. These cities are greatly impacted by the health of their leading industries, which meant that unfortunately, prices have decreased since, and are yet to reach their previous peak. 6. Adelaide going slow and steady As a capital city, Adelaide doesn't have major economic drivers like resources, which can do wonders for property. It also lacks the overseas interest that Melbourne and Sydney are fortunate to have. Furthermore, if a property investor decides to purchase outside of their own capital city, they generally look to Queensland. The result is that price fluctuations in Adelaide are less severe, and there are only two years where Adelaide has experienced double digit growth. However, in its third worst year, Adelaide still experienced positive growth. 7. The property market is like a garden Just like a garden, there are many factors which determine the health and prosperity of the property market - location, sun, soil, water, plants, environment and the bugs! The property market is multifaceted market, and a micro version of the broader economy with so many inputs and outputs that determine the outcomes. The trio discuss the difficulties in being able to point to one factor which ultimately drives price increases and declines. It's important to remember that the market is not driven by investors, but majority owner occupiers, who are driven by personal factors and emotion. 8. The impact of government policy Arguably, the politicians are the bugs in the garden - which either pollinate to promote growth or eat away at the crop. One factor which always has a hand...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode, Dave, Cate and Pete take you through: Market insights 1. Latest unemployment figures exceeds expectations In the latest figures released by the ABS, the unemployment rate has come down to 4.9% in June from 5.1%. The last time we saw unemployment this low was in June 2011. On the other hand, underemployment has increased to 7.9% in June (from 7.4% in May). It's probable this was caused by the extended lockdown at this time in Vic. Notably, Vic has the lowest unemployment rate of all the states and territories, with unemployment at 4.40%. 2. Time to buy a dwelling index shows slight improvement The 'Time to buy a dwelling' index produced by the Westpac Melbourne Institute has shown an increase of 0.8 points to 96.9 from June to July. Although an improvement, it is still in negative territory, with the index down substantially from its peak in November 2020 of 132 points. The consistently weaker trends likely reflect concerns about the impact of sharp price increases on affordability, especially amongst prospective first home buyers and owner occupiers. 3. Lowest vacancy rates nationally since May 2011 National vacancy rates recorded by SQM research show the economy continues to move in a very positive direction. The vacancy rate fell from 1.8% in May to 1.7% in June, which is the lowest vacancy rate since May 2011. The Sydney and Melbourne CBD apartment market also shows positive steps to recovery, with Sydney falling 0.5 to 6.3% and Melbourne falling 0.3 to 5.8%. It is fair to mention that despite the oversupply of CBD apartments in our two capital cities, the overall vacancy rate is extremely tight and is illustrating a growing concern for the plight of renters. 4. NSW relief packages for residential landlords In an effort to assist NSW residential landlords, a grant of $1,500 or land tax reductions are available for landlords who come to an agreement with their tenants to decrease rent, to assist with reduced incomes due to Covid. The trio discuss the merits of this policy, which is able to offset some of the loss that generous landlords are shouldering. Rightsizing 1. Who are the baby boomers? The baby boomer generation were born between 1946 and 1964 and would be currently be aged between the ages of 57 to 75 years. Baby boomers make up 25% of the population, but own more than half of Australia's national wealth (53%). Given the baby boomer generation have the highest home ownership rate of all cohorts (above 80%), a lot of their wealth would be tied to property. Their economic footprint is twice as large as their demographic footprint, however, due to compound growth over time, it makes perfect sense that the older cohort should have proportionately more wealth than younger ones. 2. Effects on Australian residential property Unlocking the baby boomer's wealth in property (which could be around two trillion dollars), could be critical to the future of home ownership rates, and potentially also to the creation of seniors' accommodation, and to aged care policy. As our population is aging, there will be added costs associated with supporting the older generations, plus more demand for suitable property for our older generations (including aged care). Lower home ownership rates have been recorded in younger generations, no doubt due to other social reasons, including people choosing to get married and start a family later in life. A study by the productivity commission concluded that 60 per cent of...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's Ep#109, Dave, Cate and Pete take you through: 1. Property market acceleration is reducing, but still going strong June's growth rate of 1.9% is down 30 basis points from May 2021 2.2%, and 90 basis points from a recent peak in March 2021 2.9%. All capital cities except Canberra have posted weaker results than in May. Most notably Perth and Darwin are trailing, where they fell to 0.2% growth and 0.8% growth respectively. The trio discuss the reasons for reasons for deceleration, given that Perth was predicted to be on the top of the property ladder for 2021. 2. Upper quartile shows the largest deceleration Across the top 25% of dwelling values in the combined capital cities market, growth in dwelling values in the June quarter was 8.0%, down from 9.2% in the three months to May. While this 8.0% uplift was still the highest seen among the value tiers analysed, the growth rate also had the largest month-on-month deceleration. It's likely that we've hit the peak rate of growth and values will continue to decelerate. 3. Capitals vs regionals Combined capital cities are neck and neck with regionals since February 2021 this year. However, over the last year, capitals up 12.4% and regionals 17.7%. It's likely that we'll see some regions that will continue to flourish, particularly those that were on the rise pre-covid and that are within commuting distance to a capital city. 4. The emerging rental crisis All capital cities have seen an increase in house rents over the last year, with Darwin leading the pack with 23.6% growth. The story is similar for units, bar Melbourne and Sydney where the CBD apartment market has been most affected due to covid. The trio discuss the emerging rental crisis, where the most vulnerable will find it very difficult to get a roof over their head. A possible answer is increasing investor incentives, to get mum and dad investors into the market to share some of the housing load with the government. However, the government hasn't rolled out the welcome mat for investors and tax continues to be a hurdle, but possibly an area that could be re-evaluated. 5. Investor activity continues to increase ABS data shows that for 5 out of the last 6 months (Dec 2020 to May 2021) - investor activity has outstripped owner occupied activity for new lending. This could signal we're headed in the trajectory for more stock to be on the market for renters, which would increase rental affordability. 6. Profit making resales trending up CoreLogic data shows 9 out of every 10 properties are being re-sold for a profit, up from 89.1% in the previous quarter and the covid-induced low of 86.0% in the three months to June 2020. What can be seen is a large discrepancy between units and houses, with 16.8% of units selling for a loss vs 6.8% of houses selling for a loss in the March quarter. This is reflected in current growth rates as well, where all capital cities except Hobart showing houses increasing at a faster rate than units. The trio discuss how land to asset ratio will be a driving factor of this discrepancy. 7. Listings take a dive The number of new and total listings are looking pretty grim, with each capital city posting decreases except Darwin. Canberra and Melbourne have the biggest drop in new listings, with 10.1% and 21.7% respectively. These markets are more impacted by the colder months of winter, were stock on the market declines, due to the misconception that winter is not a good time to sell. The trio give an important tip to those...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's Ep#108, Dave, Cate and Pete take you through: Market insights 1. Race to the finish - Vic stamp duty concession is over The Victorian stamp duty concession for properties purchased under $1million ended on the 30th of June. This produced some last-minute scrambling for those trying to get the 25% discount for established property and 50% discount for new property. In Victoria, many auctions were brought forward and offers submitted, as the concession has greatly improved borrowing power for many, particularly first home buyers. This initiative was offered shortly after Melbourne's long lock-downs in 2020 in an effort to stimulate the property market. Little did our bureaucrats know that our market didn't really need external stimulus. Low interest rates would have been more than enough. 2. Latest unemployment figures exceeds expectations The ABS has recorded a drop in unemployment from 5.5% in April to 5.1% in May. Thankfully, Australia is one of only two nations that has more people employed now, than prior to when covid took hold. The lowest unemployment level reached in the last decade is 4.9% and we're not far away! Interestingly, despite Victoria's extended lockdowns, the unemployment rate in Victoria is 4.8%, while NSW sits at 5%. South Australia has the highest unemployment rate at 5.8% and ACT, the lowest rate at 3.6%. No surprises here, as the public service is less affected by downturns. The trio discuss the reasons behind the stellar unemployment result. Land tax 1. Land tax basics Land tax is an annual cost that is determined on the total value of the land you own, (with the exception of a principle place of residence). Unlike Capital Gains Tax, Land Tax is a state tax, with differing thresholds, tiers, rates and methods of calculation between each state. Another layer of complexity are the differing rates and thresholds for owning property in trusts or in a company. As you acquire property, you need to be mindful of your ever-growing land tax bill, and this is often not factored into cash flow costs when people make property decisions. The trio also discuss and explain how land values are calculated for tax purposes. 2. Tax on unimproved value Each year the Valuer-General evaluates the 'unimproved value' of the property, meaning the land portion without the dwelling. Funnily enough, the only time you want a conservative estimate of value is on your land tax bill and council rates notice. If you disagree with an estimate, you normally have 30 to 90 days to challenge it, and if found in your favour, this could save you thousands of dollars. More often than not, the value that the government apportions for your land is not what the market would give you. Where this will hurt, is in a falling market. Although you're more likely to be eligible for a re-assessment in this case. 3. The friendliest land tax states The trio outline the differences in land tax for each state. Which states have the lowest tax-free threshold? And which states offer the friendliest environment for building a property portfolio. Before you purchase your next property, you should be broadly aware of the land value component, and you should try to determine many properties you will accumulate over your life-time in each state. Having a plan that factors in land tax, helps an investor provision for cash flow obligations. 4. Tax decisions drive investment choices Political, financial and economic discussion is often centred around tax and it's implications. States may...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ Watch our special recording for a masterclass on valuations! Weekly market update 1. Victoria the host of another Super Saturday This past weekend, Victoria hosted more than 1,000 auctions, which is referred to as a 'Super Saturday', with a whopping 1,414 homes going under the hammer. This time of year, going into winter, this number is unprecedented for a Saturday of auctions. The influx of stock can be put down to the most recent Covid lockdown and also school holidays starting. We could possibly see more Super Saturdays in July once school resumes. 2. CBA the first lender to raise assessment rates After APRA wrote to 14 of the biggest banks in the business, asking them to provide more data on their prudential practices, CBA was the first lender to raise their assessment rate from 5.1% to 5.25%. This is the first trickle of macro prudential regulation and APRA's light touch, which is likely to increase over the coming months as the next dominos (lenders) start to fall in line. 3. Adelaide crowned the 3rd most liveable city in the whole world The Economist Intelligence Unit's latest Global Liveability Index, which considered factors including healthcare, education and infrastructure across 140 cities around the world, has named Adelaide as the third most liveable city in the world. Perth, Melbourne and Brisbane also made the top 10, while six of the top ten cities are in New Zealand or Australia, where tight border controls have allowed residents to live relatively normal lives (through COVID), the report states. How to determine property value for your home 1. Using comparable sales refresher The Property Professor takes you through how to select comparable sales and the elements of the property to rate for valuation purposes. Plus, important details on which properties are NOT comparable and should be removed from your analysis. 2. How old is too old? The trio discuss when it's appropriate to use data from a year or more ago. While it may not be helpful in terms of a bank valuation, it can be useful for your own valuation purposes. 3. Twice the size doesn't equal twice the value The Property Professor explains the law of diminishing returns and why land size isn't always proportionate to the cost per square metre. In essence, the price per square metre reduces, the bigger the land size. These reductions are not linear and are determined by what the market desires, specific to a suburb or micro location. 4. The art and science of valuing While comparing apples with apples would make valuation a lot easier, it's nearly impossible to do. Every property is unique, after all. A great example of this is how street frontage and 'best and highest use' could turn two seemingly identical properties, into distant cousins. Overlay subjective perceptions, the psychology of missing out and the mathematical science of valuation quickly turns to a fine art of nuances and finesse. 5. Live example of valuation The Property Professor shares his methodology and reasoning behind valuing 20 Allen Avenue in Brooklyn Park which is going to auction the weekend after recording. The trio place their bets on the auction outcome. Stay tuned for our next episode to find out the result! Visit the show notes and watch our special recording - https://propertyplanning.com.au/how-to-determin...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's Ep#84, Dave, Cate and Pete take you through an episode dedicated to this question posed from one of our listeners: "Australia's economy is highly dependent on China, do you see immediate risk in the housing market should China reduce dependency on Australia's supply chain?" Market insights Housing market consumer sentiment moves into negative territory For the first time in a year, the Westpac Melbourne Institute Consumer Sentiment index on whether now is a good 'Time to buy a dwelling' has dropped below 100 and is now in pessimistic territory. This is the fifth monthly decline in a row, dropping 7.1% from May to June and the index is now 27% below its November high of 132. The shift in sentiment is mainly caused by rapid price rises over the last 6-9 months, supported by fringe factors including: increased fixed rates from lenders, with speculation of more increases to come and various government incentives coming to an end. This index generally is a forward indicator of markets, however it could be 3 to 6 months before we see any impact on the housing market, if not longer. The hope is that this signals the possibility of more sanguine value growth without the requirement of intervention from APRA placing extra limitations on borrowers. The property buyer isn't upset at the prospect of slightly relaxed competition levels either. Australia & China relations 1. Update from the G7 summit The Property Planner takes you through some of the communiques and resolutions formed in the 47th G7 summit, held on 11-13 June. The G7 is a meeting of the 7 largest Western democratic economies, including Canada, France, Germany, Italy, Japan, UK and the US. Australia and three other nations of Japan, South Korea and South Africa were invited to attend. The G7 pledged to tackle China's market-distorting economic practices which are currently affecting Australia's exports, as well as authoritarian actions in relation to Hong Kong. 2. Foreign investment and Australian property Australia is the fourth most popular residential property market after the US, UK and Singapore with ultra-high net worth Asian cross-border property investors. The Property Buyer shares key data showing that the overall market share of foreign buyers fell to 4% in the fourth quarter of 2020 in relation to new property. This is the lowest result since NAB started tracking the data in 2010. Harsh taxes were introduced in 2015-2017 for foreign investors, and for some local markets, this had a severe impact on asset prices. However, the taxes haven't had the devastating impact that many people feared would happen. 3. Why is Australian residential property so attractive to foreign investors? The Property Professor shares key insights from a special dissertation written by one of his students on the appeal of Australian property for Chinese investors, who sheds light on some of the key aspirational, social and financial motivations held by Chinese buyers. 4. Cultural based dwelling preferences The trio discuss how current dwelling preferences have been shaped by Australia's European heritage and discuss the expected changes from the current and future generation of Asian migrants to Australia. The Property Buyer shares some of the key preferences from Asian buyers, some of the positive influences on Australian housing design and layouts to modern day, and offers a hot tip on how you can gain an edge if you're finding that you're missing out at auction. 5. Iron ore - mutual dependence on trade between China and Australia Whilst the political environment betwee...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ Market insights 1. Regulation on the horizon as the property market continues to surge New data shows that property buyers are stretching towards their maximum borrowing capacity to compete in this hot market. Investors have been quiet in this market so far, but they are making a come-back, as first home buyer numbers start to taper. As we expect annualised growth to hit 15% for some of our capitals and regions in the coming months, the jungle drums will beat louder for regulator intervention to slow down the velocity of the growth. 2. Australia's AAA credit rating Australia is now one of only 9 economies to have a pristine AAA balance sheet recognised by all three of the world's largest credit rating agencies. This is great news for us, as it keeps our interest rates slightly lower, which we do enjoy as a capital importing nation. The AAA rating means that our interest rates are 0.15% lower than they otherwise would have been. Listener questions answered 1. The market seems to be at the top of its cycle. Is it a good time to invest in property or should we be waiting for the demand to subside or the chance that govt regulators will step in to curb prices? Whilst prices are undeniably on the rise, the trio firmly believe that we are certainly not yet at the top of the market. Any regulation introduced will be carefully planned so as not to de-stablise the market or cause a downturn, but simply to slow the acceleration of property price growth. The focus for regulators is optimising GDP and bringing unemployment down. The government will be loathe to introduce any measures that could hamper our economic recovery, particularly before the election. 2. What are the implications of waiting it out? If you would like to purchase property and are waiting for demand to subside or property prices to stop rising, it's likely that the market will move further away from you. There is great fear in purchasing at the top of a market cycle, however this only poses an issue if you crystalise losses by selling or if you have purchased a poor-quality asset in the first place. If your strategy is to purchase and hold for the long term, you will most likely be able to ride through any downturns. 3. Is now a good time to refinance? If so, why? The trio discuss the current conditions for refinance, which are fantastic. Property prices have gone up, so it's likely that property owners have more equity that can be tapped into and interest rates are the lowest they've ever been. This environment provides great opportunity to get on to a sharper rate and release some equity to protect and/or build your wealth. 4. What's your opinion on where interest rates will go over the next 12-18 months? Should I be fixing some of my debt now while fixed rates are low? The trio discuss the outlook for variable rates, which are linked to the RBA cash rate, while fixed rates which are connected to bond yields. Fixed rates are expected to rise, and even since recording, one major bank has increased their fixed rates by 0.25% and 0.45% for two of their fixed rate terms. This is likely to be the trend in the coming months as the $200B term funding facility that the Government has provided to banks is coming to an end in June. For reasons relating to our economic recovery, the variable rate is expected to remain nailed to the floor for some time to come, as consistently communicated by the RBA. 5. Considerations for fixing some of your debt The Property Planner explains why it's almost always a good idea to have some...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's market update Dave, Cate and Pete take you through: 1. Impact of lockdown #4 in Melbourne Whilst there may be a small lull, we expect activities to pick up where they left off after this small blip. Many auctions have been brought forward or held over zoom. We're seeing a bit of vendor discomfort in response to the COVID lockdown, but no buyer panic. If anything, buyers seem even more spurred on to compete hard for property. 2. Internal migrations The bigger picture is that internal migration to Melbourne could be impacted as there is now stigma around the ability to manage Covid and future outbreaks. This will have a lag effect for a period of time, but will most likely dissipate in the next 1 to 3 years. Development of quarantine facilities outside of the CBD is on the cards and this could have some positive implications for the Melbourne market. 3. The return of international students SA and NSW are making efforts to return back to normal, as international education is in the top 3 exports for every Australian state. We hope to see education get back up and running, watch this space. 4. May property Index results are out! May has returned the 8th consecutive month of growth for national housing values, reaching 2.2% in May and a stronger result than April's 1.8%. The Property Planner explains expectations of reaching 15% annual growth in all capitals in the next few months. The poorer months of June, July and August 2020 are still included in the annual growth rate, which are weighting it down even though the market has been booming for the last 6-9 months. Once these levels are reached, there will likely be greater noise in the media and political pressure for intervention against run-away house prices. 5. Capital cities are up on regionals for the month and the quarter We've had over a year of regional cities outperforming capital cities, due to the pandemic induced sea and tree change. For the second month this year, capital cities have outstripped the regions in monthly growth and as predicted, the tide is starting to turn towards capital cities. Regional areas are still exhibiting strong results, but the capital cities will catch up. 6. Taking a critical eye to median values The Property Professor takes you through some data analysis of the 'Turquiose coast' in SA, pointing out that median values can be unreliable when looking at the suburb or lower level, because of the smaller number of sales that the data is based on. Incentives can also skew data, such as concessions that have a cap on the value of the property that can be bought. 7. Upper and lower quartile analysis When markets are bullish, the upper quartile (the top 25%) tends to outperform, which is what we're currently seeing. This is because the people who have more money, spend at a greater level on higher priced properties. Conversely, when there is a downturn, the upper quartile tends to drop the furthest, because there are less buyers as a total proportion of all buyers who are circling the top quartile properties (based on affordability). In particular, at this price level people are more concerned about their level of wealth and hold on to their money. We're seeing this play out across the combined capitals, where the upper quartile increased by 9.2% over the quarter and the lowest quartile rose 4.2%. 8. Rentals - supply is dwindling and demand is increasing With the return of expats to Australia and an increased number of home buyers converting previous investment properties into homes, rental stock on the...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode, Dave, Cate and Pete take you through: Market insights 1. The number of vendors lifting their asking price mid-campaign has dropped New data from Domain reveals that the percentage of vendors who increase their asking price mid-campaign has lowered from March to April for Sydney, Melbourne, Brisbane and Canberra, which covers around 2 out of 3 property sales. This is likely occurring for a combination of reasons. Values are going up but not as fast as they were earlier this year, agents are more conscious of being busted for under-quoting, and vendor price expectations have risen since the rebound began in earnest. The locations with the highest proportion of vendors lifting their asking price is dominated by Sydney and Melbourne. 2. What are the clear signals that an agent is underquoting? This will normally be easy to spot if you've done your homework, know your market and are armed with your comparable sales. If an agent is saying that there are limited comparable sales or where sales provided are not actually comparable, they are probably trying to pull the wool over your eyes. Another factor for the lower quote could be because there is an issue with the property that the agent has factored in that you are not aware of! The important thing to remember is that you're highly unlikely to get lucky with an under-market purchase price on a good quality property. Conveyancing 101 1. What do conveyancers do? Conveyancing is the legal process of moving land or property from one owner to another and conducting the pre-purchase contract review and associated due diligence. The trio discuss the ins and outs of the conveyancing process, what are they responsible for and how you can engage either a solicitor or a licenced conveyancer to do the job. 2. What is the difference between a conveyancer and a solicitor? Either are sufficiently equipped to manage a property transfer and in the end, the most important factor is the quality of the service provider, not their official title. However, there are some key differences in the breadth of their advice that you should know before making your selection. 3. Can your conveyancing representative work Australia-wide? Property law and the conveyancing process differs state by state, which means a conveyancer must obtain a licence from the state in which they operate and cannot operate in states in which they are not licenced. This can be a huge positive, as you want your property conveyancing representative to be an absolute expert in the law relating to your property transaction. Having to be across one set of property laws and processes is hard enough, let alone seven. A solicitor on the other hand can work across all jurisdictions, although we would recommend working with local experts. 4. What are the limitations of your legal representatives due diligence? The trio discuss the elements of the property purchasing process that your conveyancer or solicitor will not do, which you must be on the look-out for! 5. What can go wrong? The Property Buyer takes you through the legal elements and deal-breakers that conveyancers can uncover during the conveyancing process, that buyers often miss. Tune in for the Property Planner's real-life examples where legal handy work has picked up illegal cladding, a vendor trying to slip through old body corporate minutes and incorrect fence lines, highlighting why it pays to have a great solicitor or conveyancer in your corner. 6. How do pre-purchase contract...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode, Dave, Cate and Pete take you through: Market update 1. Stamp duty and the VIC budget For Victoria, a new premium for stamp duty was announced for property transactions above $2million, increasing the duty payable for contracts entered into from 1 July 2021. The trio share their thoughts on this 'lazy taxation grab' from the government and the potential impact on both residential and commercial property investment in Victoria. 2. Sydney prices taking flight Latest figures from CoreLogic see growth in Sydney housing values reaching 9.21% in the last quarter. Annualised, that is 40% when compounded. The Sydney market is very hot indeed, but we do expect the heat to dissipate? Taking the lead from the other capital cities may not be an accurate gauge. Comparable sales 1. Valuation methods The Property Professor takes you through 3 of the most common methods of evaluating the price of a property: comparable sales, summation and income/capitalisation. Tune in to our show notes for a visual presentation. https://propertyplanning.com.au/how-to-determine-property-market-values-by-using-comparable-sales-ep-81/ 2. Finding comparable sales The main attributes that buyers should itemise to compare the subject property to are: similar location, land size, building size, building condition and the recency of sale. The trio discuss the ins and outs of what to be looking for in order to determine whether a sale is 'comparable'. 3. Additional property attributes that can impact value Other factors that could impact demand for a property (and therefore competition) include: topography, environmental factors, accessibility, utility services, town planning, zoning, other restrictions, improvements to the property, the potential for alternate use (commercial for example), views, orientation and shared ownership of common areas. 4. How to value a property Each component of a property can be boiled down to dollars and cents to arrive at an end figure - EG what you are willing to spend! The trio take you through how to attribute monetary value to the various components of the property and which factors are most important. The Property Buyer shares a hot tip when it comes to properties on main roads vs quiet streets. Don't forget, finding the similarities between properties is easy, the tricky part is identifying the differences and placing a value on those. 5. Case study....be sure to watch the video to get the most out of this educational experience In true lecturer style, the Property Professor takes you through a real-life example of finding comparable sales for a property going to auction on Saturday 22nd of May. Cate and Pete value the property and the expected result on auction day, with the disclaimer that there may be additional factors identified after walking through the property. 6. When is comparable sales methodology a challenge or impossible? The trio discuss the circumstances that may cause some obstacles for comparable sales analysis. The Property Planner issues an important reminder that comparable sales cannot be taken as gospel. 7. How to deal with anomaly sales results When you come across a sale that has a surprising result, it is important to understand the reasons behind it and the circumstances of the sale. What bank valuers often don't take into account is real estate agents with excellent digital marketing skills, irrational bidders and tenants that hinder access to the property. A...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode, Dave, Cate and Pete take you through: 1. Heat in the market is dissipating Anecdotally, we're seeing some behaviours such as vendors holding out for better prices that are not always being achieved, supporting the fact that the heat is coming out of the market to some degree. As touched on during recent Podcasts, we don't expect prices to be growing at quite the same rate of knots as the first four months of this year across most part of Australia. 2. Smaller capital cities have been the outperformers of the last 12 months. The latest property index results for April from CoreLogic reveal that Adelaide, Hobart, Darwin and Canberra have outperformed Sydney, Melbourne and Brisbane over the last year. We know that the larger capital cities took the biggest hit during the covid-downturn due to lockdowns and halting of international travel. It's worth noting that while Darwin and Perth are doing well, they are still behind their peak medians reached in 2014 and still have far to go. And many of the regions around our nation have also outperformed the two biggest cities, but Sydney in particular is making up ground rapidly and we expect these numbers to evolve over the next three to six months. 3. What tales are the vacancy rates telling? Looking at the vacancy rates for Melbourne and Sydney, you'd think that they are in dire straits. What's increasingly evident is that the markets of the largest capitals are operating at two speeds and there is a large disparity between vacancies for houses versus units. Much of the higher vacancy rate will be due to medium to high density apartments and student accommodation. This is another example of why you need to dig beneath the data, as it can't always be taken at face value, and generalising data can hide important detail. 4. The swinging pendulum - investors vs home buyers Investor mortgage numbers have recorded an increase, suggesting that the pendulum could be swinging back towards an investor market. First home buyers are starting to reduce, as prices get more unaffordable for new entrants to the property market. This latter point is one of the drivers for government initiatives that have been announced in our most recent federal budget. 5. Property incentives from the budget announcement The trio talk through the 4 key property market incentives and schemes announced in the federal budget, including their merits, insights gleaned and likely impact on the property market. They include: · New Home Guarantee (increase demand and price) - additional 10,000 places allowing first home buyers to build a new home or buy a newly built home on as little as 5% deposit, with the government acting as guarantor on the loan, freeing the buyer from lender's mortgage insurance. · First Home Super Saver Scheme (increase demand and prices): first home buyers will be able to release up to $50,000 as part of voluntary contributions under this scheme (increased from $30,000). · Family Home Guarantee (increase demand and prices) - a scheme allowing for 10,000 single parents over the next 4 years to purchase a home with a deposit of just 2%, with the government providing a guarantee of 18%. · Downsizer Super Scheme (Increase supply) - allowing those age 60 and above to contribute $300,000 into super when selling the family home. This will not only bolster retirement savings, but also free up critical housing stock. 6. RBA reiterates its commitment to maintaining a low cash rate The RBA have consistently communicated since mid 2020 that rates will remain low until inflation hits the target band ...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's Ep#100 of the Property Planner, Buyer and Professor Podcast, Dave, Cate and Pete take you through: 1. Walking down memory lane From the beginning of the podcast journey in March 2019 to now, much has changed in the world of property. The Property Planner, Buyer and Professor discuss the early days of podcast recording and how the podcast and listenership has evolved since then. 2. Our top 10 episodes, as rated by you! The results are in! After two years of podcast recording, the trio share with you our top 10 episodes with the most listens and the insights gleaned from each. 3. Dave, Cate and Pete's favourite episodes The Property Planner, Buyer and Professor take you through three of their most favourite episodes to date and why they're worth a re-listen. The trio each acknowledge that they too are constantly learning from each other. 4. The Property Planner, Buyer and Professor's hottest property tips The trio share their best tips and learnings after decades of experience in the property industry. Their tips include: attitude to taking action, expecting perfection, how to manage property investing on top of a full-time job, how often you should buy property and combining finances with your partner. Don't miss out on these tips! 5. A big thank you to our listeners The trio share the wonderful feedback received over the journey from our listeners. We couldn't have done it without you! We have some surprise listener engagement in store too. 6. And of course, our 'gold nuggets' Visit the show notes - https://propertyplanning.com.au/best-property-tips-in-australia-and-top-episodes-100th-episode-special-ep-80/

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's Ep#79 of the Property Planner, Buyer and Professor Podcast, Dave, Cate and Pete take you through: Market insights 1. Month on month growth reaches peak Some say that the housing market is beginning to show some signs of slowing. Agents who have been so inundated with activity are starting to return to their usual practices of performing pre-auction calls to firm up bidders. This signals that some of the heat in the market might be subsiding. The trio believe that we'll still continue to see positive growth, but not at the same rate of knots experienced over the last few months. The Property Buyer suggests that the velocity is decreasing despite the pace remaining positive. 2. Positive market indicators The latest unemployment figures released by the ABS for the month of March show unemployment lowering from 5.8% to 5.6%, which is great news. Iron Ore spot prices per tonne cracked $190, which is the highest price since 2011 and 1% off record highs in the mining boom years. This bodes well for the Government's coffers and our federal budget returning to surplus over the coming years. 3. Loan deferrals back on track In more positive news, only 0.5% of the million loans deferred due to Covid are still frozen. Many people who were hanging their hat on waiting for properties to flood the market because of forced sales have missed out on opportunities. Like we always say, there is no time like the present to purchase property, provided that you are making decisions based on your own personal economy. Timing the market is incredibly difficult, even for the property experts. 4. Houses outperform units Latest figures from CoreLogic reveal that for all capital cities (bar Melbourne), houses have performed units over the last year. That has been the case for many decades, but accentuated further through Covid where people were looking for bigger dwellings. We expect rental yield and capital growth for units to slow down even further. Cross collateralisation 1. What is cross collateralisation? Also known as cross securitisation, put simply, cross collateralisation is where you have a single loan secured by two or more properties. The Property Planner and Buyer unpack the myths that surround this loan structure strategy. 2. Why do people think cross collateralisation should be avoided? The main reason why people are averse to cross collateralisation, is the belief that by having a single property providing security for a loan, you are protecting your other assets from the bank in the event of loan default and forced mortgagee (lender) sale. If the value of property is not enough to extinguish the debt on the loan, the lender may look to your other assets to cover the shortfall. While retaining individual loans for each security property may limit a lender's ability to access your other assets, it is certainly not impossible and there are other legal means that lenders can use to access your other properties to recoup their losses. 3. Beware of spruikers! A large proponent of not crossing securities are property spruikers who are selling properties under the guise of 'free property advice'. This is because their aim is to convince people to buy multiple properties, with high loan to value ratios which are often poorer quality assets, with low prospects of capital growth. Brand new properties can often decline in value, so the spruiker is actually protecting themselves by advising against cross-collateralisation, and promoting assets are financed across multiple...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's Ep#78 of the Property Planner, Buyer and Professor Podcast, Dave, Cate and Pete take you through: Market insights 1. Stretching budgets and changing sentiments The gap between what a buyer can actually spend vs what they planned to spend is getting closer as we see buyers revise up their limits to compete in this market. We made a prediction that APRA would step in with macro prudential measures late this year or next, now every man and his dog is reporting on the potential for APRA intervention. Although APRA Chair Wayne Byres recently stated that APRA has no mandate to target the level of housing prices - they are simply a risk factor, not a goal. 2. Tips to increase your borrowing power The Property Planner and Buyer share the insider scoop on how you can increase your borrowing power to maximise your buying power. 3. Banks and economists revise UP their expectations for 2021 NAB is the latest bank to jump on board and predict 15% national price rises for 2021. This follows ANZ upping their predictions in late March to 17% growth this year. Recent reports tip Sydney and Perth to exhibit 19% capital growth each, 18% for Hobart, 16% for Melbourne and Brisbane and 13% for Adelaide. Preparing for auction #2 1. Can you have a 'subject to' clause at auction? A common misconception is that 'subject to' clauses cannot be introduced in an auction. The Property Buyer explains that although very rare, everything is negotiable. 2. Cooling off periods - what are they and when do they apply? A cooling off period is a purchaser's right to terminate the contract without needing to validate their decision. The cooling off periods and penalties vary State by State, so it's important to know your legislative rights and any penalties that may follow. 3. Boardroom auctions vs public auctions The Property Buyer takes you through the key differences between boardroom auctions and publicly scheduled auctions that you need to know about to put your best foot forward. 4. Getting yourself finance ready With turn-around times improving, it's possible to be finance ready if you plan to go to auction in three weeks' time. However, it's incredibly important to move with speed and have your finance arranged as early as possible. The Property Planner shares the critical need to be able to juggle multiple balls at the same time, rather than focusing on one thing at a time. 5. What prep do you need to do to get ready? If you want any variations to the contract or deposit terms, these need to be arranged before the big day. Doing your market research, planning and setting your bidding price point and strategy is critical and likely to take more than an afternoon. Ensure that you have not left this to the last minute! 6. What is an auction quote range and why you shouldn't rely on it In a moving market, an auction quote range at best can be wrong and unreliable, at worst, it's misleading. In determining a quote range, the agent is permitted to cover historical sales prices, (in Victoria for example; over the last 6 months), which could be 15-20% lower than the current market. The best thing is to do your own research and collect your own comparable sales. 7. Where to stand at auction The Property Buyer shares with you the key vantage points to give yourself the edge over the competition. 8. The differences between auction campaigns and private sale campaigns The Property...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's Ep#77 of the Property Planner, Buyer and Professor Podcast, Dave, Cate and Pete take you through: Market insights 1. Investors creeping back in Westpac lending numbers for February reveal that investor lending is up 4.5%, while first time buyers are down 4% and upgraders down 0.8%. It's still early days, but it's likely to be a sign that the tide is starting to turn from home buyers driving the market to investors. Investor lending at Westpac is still only at 35%, compared with 65% when APRA brought in macro prudential measures in 2015. We expect these numbers to continue to grow in the coming months as investors tap into increasing equity and the lower cash flow needed to service a loan, with increasing rental yields covering much of the cost of interest with rates at an all-time low. 2. Property cycles Sydney has recorded 6.7% growth for the March quarter, which when annualised is growth of 26% for the calendar year. You may think that's amazing and has never happened before, but according to ABS data, Sydney prices went up 50% in 1988. The following year, prices dropped by 6% before rising again, albeit at a slower pace. The property market is cyclical in nature, sometimes they spike, but it doesn't mean there will be a collapse afterwards. 3. The property peaks and troughs Looking at property data over the last few decades, it's clear to see that the negative periods are much shorter than the positive periods. Amazingly, despite all of the doomsayers, the covid downturn was one of the shortest and lowest downturns that we've had over the last 30 years. Our most recent property market price reduction lasted for almost two years from 2017 and 2019 and was predominantly driven by APRA implementing macro prudential measures and not economic factors. A poignant reminder of how our property market can be manipulated by government policy and stimulus. What will drive capital growth after interest rates rise? 1. Access to finance and consumer confidence These are two key drivers of the property market. If finance is restricted or there is a lack of consumer confidence, this will have a significant impact on demand, which in turn will affect property prices. Consumer confidence is largely impacted by low unemployment or the wealth effect, which is rising property and to a lesser degree share prices. This is why the RBA are so strong on keeping rates low through to 2024, until we see inflation growth of 2% to 3%. 2. Immigration Although we've had negative population growth due to Covid, we still find ourselves in the midst of a property boom. Whilst immigration can certainly increase demand, it will be heavily influenced by the number of 'skilled' workers that migrate. The Morrison government have spoken about specifically targeting this sector once borders open which is likely to have a positive multiplier effect on the economy. 3. Interest rate increases may not be significant Governor Lowe of the RBA has stated that interest rates will remain low for the next 3 years. However, important to remember, when we do see some increases, it won't happen overnight. Based on the interest rate environments we are seeing for many other first world nations, it's likely we will see gradual increases spanning years to come - and this will only occur if we have very low unemployment resulting in inflation hitting the target band, which has not been achieved for around a decade. 4. Mastering renewable energy Our ability to transition away from creating fossil fuel-based energy and move to more...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's market update #20, Dave, Cate and Pete take our listeners through: 1. Hobart median dwelling values Despite being the capital city with the smallest population, median home values in Hobart are higher than Brisbane, Perth, Adelaide, and Darwin. The trio explore the reasons behind this surprising statistic. But is it sustainable? The Property Buyer thinks yes! 2. Melbourne growing at 1% a fortnight At last, the data is catching up with what we've been seeing since the inflection point in the final quarter of 2020. The median price for homes sold at auction has soared 18% since March last year. 3. Why stock on the market is still so low In economics 101 we learn that price is a function of supply and demand. With supply still so low, it's no wonder that we're seeing the highest monthly rises in value since 1988. The trio discuss why new listing figures have returned to normal levels, but total stock on the market remains at half the usual level. 4. Escape to the regions For the first time since covid lockdown, monthly data shows that combined capital cities have come ahead of regions in monthly growth statistics this month. This reflects what we've seen anecdotally, with the number of enquiries of people looking to sell up their city homes and move to regional areas decreasing as life returns to 'normal'. 5. How long will the frenzy last? The trio make their predictions for the property market in 2021. The consensus is that there is still a lot of steam and heat to go. Until we see some lending or macro prudential changes, we don't expect to see the buying conditions easing for some time. 6. Relaxation of responsible lending guidelines The Property Planner explains the expected impact to the property market if responsible lending laws are amended as planned by the Morrison Government. 7. Australia the ultimate destination nation Although it may not happen this year, when boarders open up again allowing for immigration, we expect this will add more entrants into the property market, further fuelling the fire into 2022. 8. Many purchasers are dropping out for fear of overpaying Although no one wants to buy at the peak of the market, the risk you take by holding out is that you're priced out of a market that you could have bought into. Provided that you plan for holding the property for the long-term and it fits within your overall property plans, now is the best time to buy. 9. Top tip - don't bypass the properties that have been on the market for longer The Property Professor shares this hidden gem for finding a great property. 10. And of course, our 'gold nuggets' Visit the show notes - https://propertyplanning.com.au/hot-property-median-home-values-largest-property-rise-since-1988-stock-on-the-market-capitals-vs-regionals/

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's ep#76, Dave, Cate and Pete take our listeners through: Market insights 1. March index results show the largest growth since 1988 CoreLogic property results are finally starting to show what we've been seeing on the ground since late last year. Every capital city is increasing full steam ahead. We think the market is only going to heat up further and there's more to go in this property run. What's more, we know that data lag creates delayed reporting. Our trio are certain that the record growth is yet to come to light. 2. First time buyers dominating the market Despite the fact that prices are high, first home buyers have never had it easier to get their first property purchase under their belt. Interest rates are the lowest they've ever been, the level of government stimulus and support is at an all-time high and savings are at record levels as well after months of buckling down (and locking down) on savings, particularly in the Melbourne market. As we recall, Melbourne suffered the longest periods of lockdown in our nation and the strength of the market bounce-back is palpable. 3. The bank of mum and dad Another player in the first home buyer corner is the bank of mum and dad providing their assistance. Parental contributions are averaging more than $89,000, which is an increase of nearly 20 per cent in the past 12 months. $89,000 is enough for a 20 per cent deposit in most of the nation's postcodes outside Melbourne and Sydney. 4. APRA won't intervene in the short-term At the Australian Financial Review Banking Summit held last week, APRA have said that their job is not to regulate the property market, it is to make sure there's no systemic risk in bank lending. As the media and political pressure increases with property values rising to new highs, APRA may get a tap on the shoulder sooner than anticipated to intervene and help take the heat out of the market. How to help your kids get on the property ladder 1. Monetary gifts (it's better than Christmas!) One of the primary ways a parent can assist their child is providing a lump sum of money to go towards the deposit. The trio explain how this method can be particularly helpful for many first-time buyers who have a strong borrowing capacity. 2. The difference between gifts and genuine savings Despite your generous gift, a lender may still require evidence of genuine savings before they provide the tick of approval. The trio discuss the optimum timing to give your gift, and some of the perils and pitfalls associated with this approach. 3. Security guarantees - the most popular method of assistance The Property Planner and Buyer take you through how a security guarantee works, the benefits and why it is the most common way parents help their kids in property. 4. Going in to a security guarantee with your eyes open If you've got equity available in your property, it may sound like a fantastic idea to offer your home or investment as a security. But as with any major decision, there are risks involved, not to mention a mountain of paperwork. The trio discuss the ins and outs of providing a security guarantee and costs, (and steps) involved. 5. Co-borrowing with your kids The Property Buyer and Professor share their first-hand experience of purchasing a property with their children. They cover off on ownership considerations, caveats and the agreements they've made with their kids. 6. The...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's Ep#75, of the Property Planner, Buyer and Professor Podcast, Dave, Cate and Pete take you through: Market insights 1. NZ abolishes negative gearing Any properties purchased after Saturday 27th of March will not attract tax deductibility on the interest portion of the repayments, while existing investment properties will have the negative gearing benefit phased out over the next 5 years. Although there is no silver bullet to cure housing affordability, could this be on the cards for Australia? Our trio discuss reasons it may or may not be a future policy setting of at least one party. As the Property Professor points out, investors share the task of providing shelter and this is something that our government is unable to deliver without the help of investors. 2. Increased agent activity unlikely to abate the pace of the market Although data shows an uptick in agent activity, which is a precursor to more stock on the market, it's unlikely that this will take the heat out of the market. Corresponding data for buyer search activity is going through the roof and any new stock on the market is likely to be swallowed quickly. 3. The bigger picture with property prices Darwin and Perth property prices are growing strongly, exciting many property owners and prospective home buyers and investors. However, when looking at the data, it's important to remember that although they've had strong growth recently (Darwin 16.7% and Perth 5%), prices are at the same level they were in 2009 and 2010. Data can be manipulated to support any intended view, so we advise you look beyond the superficial and news sound bites! The winner's curse and how to avoid it 1. What is the winner's curse? Where there's competition to win an asset that is in limited supply, (eg: a house), there can only be one winner. Typically, the person who wins the property pays the highest price. The winner's curse can manifest in concern and fear about overpaying. 2. Why are we prone to the winner's curse? It stems from our need for social proof to affirm that we've made a good decision and if we feel like we did not do enough research and analysis to accurately understand the market and/or our own financial position and goals. The fact that a buyer is willing to pay the highest affirms that no one else was willing to pay a price at that magnitude. This can make a buyer second guess all of the planning and preparation that went in to their decision in the first place. 3. When is it most likely to strike? The trio share the scenarios where the winner's curse is most likely to creep up on the successful purchaser. 4. How to combat the winner's curse Planning and preparation is a sure-fire way to avoid feeling concern that you've overpaid. The Property Planner and Buyer share their top tips on how to prepare so that you can be confident in your evaluation of the property's value and when to stretch beyond this price. You also need to understand your financial position, short and long-term goals clearly to buy confidently without regret. But if you can't help feeling the winner's curse, it's important to remember that if you're in it for the long-haul, the property market is forgiving if the property is held for many years to come. 5. The other side of the coin - loser's regret Loser's regret is the feeling of having been too conservative with the limit that you ended at in your bidding or highest offer, when you fail to purchase the property. This is particularly pertinent when you find out...

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...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's Ep#73 of the Property Planner, Buyer and Professor Podcast, Dave, Cate and Pete take you through: Market insights 1. Business confidence reaches decade highs According to the NAB monthly business survey, business confidence rose further in February to reach 16 index points, its highest level since early 2010. Whilst we're still not on the other side of the pandemic, it shows the human psyche of bouncing back from difficult circumstances, and also demonstrates the power of social proof to build confidence. 2. GDP growth revised up by the OECD The forecast for GDP growth has been upgraded from 3.2% to 4.5%, which puts Australia on the top of the Covid-19 ladder for the strongest bounce-back economy for 2021. 3. Properties in the top quartile show outstanding growth According to CoreLogic, properties in the top quartile of value are growing at the fastest rate. Historically, other downturns and recessions have demonstrated that top quartile properties drop fastest in the downturn and rise the quickest in an upturn. 4. Price as a function of supply and demand The Property Professor shares insights that draw a correlation between new finance commitments compared with total listings to paint the picture of supply and demand driving value growth. 5. What's driving the market in Ballarat? Renters are opting to purchase as mortgages are now more affordable than ever. Facing rents of 4.5% versus 2.0% for a mortgage is an opportunity many locals are taking advantage of. Property planning & your next purchase 1. Peeling back the onion to determine the pathway forward The Property Planner shares the layers of steps to be taken and decisions to be made to come to the right outcome for your next property decision and your long-term portfolio plan. The key is to understand that investment decisions are intertwined with your lifestyle and family choices. 2. Achieving clarity for your long-term goals and your next decision Keep your binoculars and magnifying glass handy as you go through the journey of seeing your long-term goals with clarity and focusing in detail on your next decision. The pathway in between may change as you go through life, but having one eye on the end outcome and one on the next step will help you get there. 3. Hold or fold? The trio discuss the considerations, emotions and cognitive bias that factor in to making decisions about property you already own. What holds people back from making these decisions and why might you keep a property that is not performing? 4. Timing a property divestment The Property Professor shares key tax considerations to be mindful of when putting together your divestment strategy. 5. Selling property - two sides of the coin Understanding whether a property you own is top quality is only one side of the coin. The other side is understanding what you will be able to achieve by selling and is paramount to making successful property decisions. 6. Planning for the flexibility stage of life As we're working for longer, it's more common now to scale back work, rather than stop abruptly. You've still got investment decisions to be made post-retirement, you may not be on the same retirement timeline as your partner and your debt consolidation and divestment strategy need to take that into account. 7. Modelling your next property decision The best way to make an informe...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's market update #19 of the Property Planner, Buyer and Professor Podcast, the team discuss "Property values rise at the fastest rate in 17 years, which locations are outperforming, emerging trends and more". Dave, Cate and Pete take you through: 1. The February results are in! Summer might be coming to an end, but the property market is getting hotter by the minute. The national market is up 2.1% just for the month of February, the highest jump in 17 years! It's a very impressive growth rate for a 28 day period. Annualised that's a whopping 25.2% growth. 2. Data skewed further by long settlement dates In an upwards moving market, we're seeing many cautious upgraders and downsizers choose to purchase first with a long settlement date, allowing them to comfortably sell after signing the purchase contract. This delay between purchase and settlement is skewing the property data even further, as many sales aren't officially recognised until they settle. 3. The perfect storm for a property run Less people taking time off to go on holiday, the highest savings and borrowing capacity on record and a seasonal stock shortage in January has created a whirlpool of demand outstripping the supply. Even though more stock is coming onto the market, it's not enough to soak up the demand. 4. What's behind the property feeding frenzy? We all know that we have the lowest interest rates on record, but what is not as well known, is the nuances behind the unemployment data. Employment is lower by 3.3% for those aged between 15 to 34. However, for people who are aged 35 plus, which is most property buyers, employment has actually increased by 1.2%. 5. The update for regional areas Regional areas are still performing at a great pace, with interest from investors, local home owners and tree/sea changers pushing prices up. Rents do not move as fast as capital growth, so the outcome is a reduction in yield. The Property Buyer shares with you how to tell if a market is heated, by looking at rental yields. 6. Capital cities v regionals - the gap is closing Rents have started stabilising in Melbourne and Sydney and even in the apartment market, which was one of the segments that were hardest hit. Combined capital city growth is catching up to the regional markets, with 2.0% recorded in February v 2.1% in regionals. 7. The story behind capital city performance Sydney and Melbourne make up close to 50% of the properties in Australia, so if these markets drag the chain, it brings down the combined capital city data with it. Other capital cities recorded strong growth for the last 12 months, whilst Melbourne and Sydney were the most impacted by Covid. You could almost have 3 data sets: Melbourne & Sydney, other capital cities and regional areas. 8. Predictions for 2021 The Property Planner and Buyer update their predictions for 2021, in light of the February data. Cate and Dave debate how and when they think regulators are likely to step in to cool the market. Watch this space. 9. Early market indicators The trio share with you how to get your hands on the critical data to inform your property purchase. 10. Painting the picture with lending data Investors could be muscling their way back into the property market, with investment lending jumping by 9.4% according to the ABS, the fastest rate of growth since 2016. Lending commitments to investors have risen every month for the last 5 months, while loans to upgraders are up by...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode #72, the Property Planner, Buyer and Professor Podcast team discuss "Property prices - what causes values to fall & how to tackle a rapidly rising market", as Dave, Cate and Pete take you through: 1. On the flip side Many of the facets we discussed in the previous episode #71 "Capital growth - what increases property values" have an adverse impact on property values if the opposite occurs so for this episode, we covered some different topics. 2. Macro prudential regulation We now have a track record that macro prudential measures have the ability to influence property prices. APRA slammed on the breaks by putting caps on investment lending, LVR's and interest only loans in an effort to dampen the market and it worked! 3. Higher and new property taxes New policy and government announcements do affect buyer behaviour and the beauty is that policy makers can target particular segments of buyers, such as investors, foreign buyers, first home buyers, and so on, (to name a few). The trio touch on some of the changes we have seen and could see in the future. 4. Negative gearing Tying in with taxes, the abolition of negative gearing is still on the Labor party agenda. Whether it happens in the 3 years or 10 years is anyone's guess and the extent of any reduction of negative gearing to a certain number of property V total abolition. The Property Planner share how Labor have not taking this off the table yet and makes his predictions that they will roll it out in some down the track. 5. Global and political unrest Our international trade relationships have a large impact on the economic well-being of our nation, and therefore, can directly impact jobs, employment, wages growth and inflation - which all have a bearing on property prices. The Property Planner explores challenges and an example of a left tail or black swan risk that could cause future conflict and severely impact the Australian economy. It wasn't that long ago a pandemic was scoffed at as a left tail risk! 6. Natural, environmental or health disasters As we all understand much more clearly now following the Covid-19 pandemic, these events are significant set-backs for any economy that must manage through these disasters. They often come with a huge cost to governments and can spell increases in unemployment. This event has also increased the willingness for business and consumers to better perceive the risks of climate events also. 7. Fear of... The trio explain how fear can either be a driver of property values or a wet blanket. During 2020, even people who were stable and confident in their employment chose to wait on the sidelines of the property market, for fear of the unknown. Fast forward to 2021 and the trend playing out now is fear of missing out, causing a feeding frenzy in the property market. Fear plays a large part when it comes to price movement and Cate drills into this, and the immediate affect it can have on local markets. 8. Doomsday media One thing living through a pandemic has taught us among many, is take what you read in the media with a grain of salt. The Property Buyer explains how the media can irresponsibly skew consumer confidence, creating self-fulfilling prophecies. 9. Too many renters Owner occupiers have a greater ability to drive property prices, as they're willing to pay extra to get into that lifestyle property they've always dreamed of. Where the rati...