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Terry Ryder's Tuesday Wrap 25th February 2020

Hotspotting

Release Date: 02/27/2020

Credible analysts refute doomsday forecasts show art Credible analysts refute doomsday forecasts

Hotspotting

Credible analysts, increasingly, are making forecasts for Australian property prices which contradict the sensationalist and alarmist predictions we have seen from media in recent months. More and more sensible commentators are suggesting that any post-boom correction in residential property prices will be moderate and that many locations will continue to deliver solid growth. They are also commenting that the general media theme that rising interest rates cause property markets to collapse is unreasonable and not based on historical precedents.

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The Strong Resurgence Of Regional Victoria Markets Continues show art The Strong Resurgence Of Regional Victoria Markets Continues

Hotspotting

Regional Victoria is “the market that refuses to give up”. Regional Victoria has been a national leader of the Exodus to Affordable Lifestyle trend and continues to draw residents out of Melbourne. The key regional cities of Victoria have been notable growth markets for the past 4-5 years – but, amid all the disruption that’s currently afflicting real estate markets, they keep on keeping on. The strong sales activity seen in the March Quarter continued in the June Quarter, despite rising interest rates and cost-of-living pressures. Overall, activity in key centres across Regional...

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Queensland Govt Land Tax Grab show art Queensland Govt Land Tax Grab

Hotspotting

Investors who own properties in Queensland as well as other states are set to be slugged with massive land tax bills following the introduction of a new tax regime in Queensland. New legislation was passed on June 24, which allows the Queensland Government to include the value of investment properties owned in other states when working out how much land tax to charge on Queensland properties. Now, this is outrageous and I’m surprised it’s even legal, but the State Government in Queensland, which has become renowned for its shady dealings, has tried to justify it with political...

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Rental Shortage Is The True Crisis show art Rental Shortage Is The True Crisis

Hotspotting

While media obsesses over speculation about property prices, a far bigger issue for residential property is the extraordinary shortage of rental properties. I have been researching real estate for 40 years and I have never seen rental markets so tight in so many places. Vacancies have been low for years but they keep falling and now all eight capital cities are well below 2%, with six of them between 0.4% and 0.8%. The national average is below 1%. “Crisis” is an overused word in media but this truly is a crisis. Desperate individuals and families can’t find a rental home at any price...

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Perth Is Now One Of The Nation’s Stand-out Growth Markets show art Perth Is Now One Of The Nation’s Stand-out Growth Markets

Hotspotting

Perth is now a nation-leading market, showing strong resistance to downturn pressures as it maintains high levels of sales activity and good price growth. In contrast to trends in the biggest cities, Perth has delivered strong levels of sales volumes in the latest quarter, despite all the disruption from interest rate rises, high inflation figures and all that ridiculously negative media.

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Sport Will Power The Infrastructure Boom Over Next 10 Years show art Sport Will Power The Infrastructure Boom Over Next 10 Years

Hotspotting

Over the next ten years Australia is going to be THE focus of world attention for anyone with an interest in sport. Between now and 2032 Australia will be hosting a series of sporting events of global significance – and, while it may not be immediately apparent, this has very major consequences for real estate investment. Let me explain what I mean. Firstly, here’s the line-up of global sporting events that will happening in Australia over the next 10 years:- 2023 FIFA Women’s World Cup – Australia and NZ 2026 Commonwealth Games - Regional Victoria 2027 Rugby World Cup (men) –...

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Brisbane's Property Market Future Is Strong. show art Brisbane's Property Market Future Is Strong.

Hotspotting

Brisbane and SEQ lead the nation on population growth from internal migration – and there is a major infrastructure spend under way, with big ticket projects totalling around $30 billion under construction. And there is more to come, because Brisbane and SEQ needs to invest in infrastructure to get ready for the 2032 Olympics. This means that, while there will be ups and downs along the way, Brisbane will be a growth market for the next 10 years at least.

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Should I Delay Buying? show art Should I Delay Buying?

Hotspotting

One of the most common investor questions at the moment is “Should I delay buying because prices might fall?” This, I have to say, is the reaction of someone who has little knowledge, does little or no research, and simply reacts to media soundbites. As I’ve often said in the past, the first thing real estate consumers need to do, is … tune out all that media white noise, avoid that constant source of negativity and misinformation, and base your decisions on research and common sense. It’s really important to think and act independently. Unfortunately, most prospective investors...

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Rising Rents Give Security to Investors show art Rising Rents Give Security to Investors

Hotspotting

While a lot of the discussion about the property market is focused on potential price drops and rising interest rates, the most important information for investors at the moment relates to vacancy rates and rents. Rising rents mean most investors are well placed to cover any additional costs as a result of higher interest rates, because the rate of rental increases in the past 12 months has been exceptional. This - coupled with the fact that most borrowers are well ahead on their repayments following years of low interest rates - means most investors will not struggle to service their...

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How Politicians have Created The Rental Shortage And Continue To Make It Worse show art How Politicians have Created The Rental Shortage And Continue To Make It Worse

Hotspotting

The rental crisis throughout Australia is receiving a lot of media air time at the moment. And that means many politicians are determined to be the person or party credited with finding a solution to the problem. That’s a big concern for me, because every time politicians meddle with property markets with the excuse of providing a solution to things like housing affordability or the rental shortage, they generally make the problem worse.

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More Episodes

In my column on Property Observer this week, I discuss how to understand the different real estate markets and what causes them - it's a lot more than low interest rates.