Leading the Way in Property Management: Corinne Bohan From Image Property
Hotspotting
🌟 Leading the Way in Property Management: Corinne Bohan from the award winning Image Property 🌟 Join us on the latest episode of the Hotspotting podcast, where we sit down with Corinne Bohan, the trailblazing Managing Director of Image Property—Australia’s #1 Property Management Company for four consecutive years according to the RateMyAgent Awards. Dive deep into the world of elite property management with insights from a leader managing over 5,000 properties. 🏡 What Sets Image Property Apart? Corinne shares the secrets behind Image Property's success, focusing on their...
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The Pulse Report Highlights
Hotspotting
Australia has some outstanding markets which are performing on every metric, including price growth, rental growth, low vacancies and high yields. And many of these places on not what you might expect. Every quarter, Hotspotting publishes a report we call The Pulse, to identify 50 locations across Australia which deliver rental yields well above the average to investors. The primary parameter of our national Top 50 list is to identify good markets with high rental yields, but our criteria also includes prospects for capital gains – and this report features locations which perform...
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The Pulse Report is Out Now!
Hotspotting
If investors had followed our tips, three months ago, in a special report we call The Pulse, they could have achieved double-digit capital growth - in the latest quarter alone - and up to 30% in the past year. The primary parameter of our national Top 50 list of locations in The Pulse is to identify good markets with high rental yields. But our criteria also includes prospects for capital gains – and this report features locations which perform outstandingly well on price growth. If you have an initial rental yield of 6% or 7% and your property’s value is growing 10% or 15% (or more) per...
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Latest Price Data
Hotspotting
The latest price data from two of the biggest sources of real estate information shows a resurgence in the regional areas, in competition with the capital cities. The background to this is that the combined regions have outperformed on capital growth since Covid, with regional areas generally out-performing the big cities in the past four years. But in the past 12 months, the tables have turned somewhat, with the cities overtaking the regions on growth in median prices, led by Adelaide, Brisbane and Perth. Now, we’ve seen another twist, with the latest statistics from both PropTrack and...
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Unaffordable Twaddle
Hotspotting
The silliest people skulking around the edges of the property industry are the shallow attention-seekers who pump out nonsense reports claiming that no one can afford to buy property – not because it’s true or useful, but simply to drum up some free publicity for the business who is the source of the misinformation. The shallowness and pointlessness of these reports is demonstrated by the results being seen in property markets, which emphatically contradict the notion that most people can’t buy homes because they’re unaffordable to the vast majority. We are constantly inundated with...
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Negative Gearing
Hotspotting
It’s remarkable how many politicians think that the solution to every problem that afflicts the housing market is to scrap negative gearing and make other changes to drum investors out of existence. Want to fix the rental shortage? Scrap negative gearing. Make housing more affordable? Scrap negative gearing. Facilitate the construction of a million new homes in Australia? Scrap negative gearing. The illogic of these attitudes – and the way they run counter to the truth – is quite remarkable. And, while it’s become quite common for politicians and others to recommend the end to negative...
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Financial Freedom Starts at Home: Pay Off Your Mortgage In Record Time
Hotspotting
Tune in to the latest episode of the Hotspotting Podcast with your host Tim Graham who sits down with special guest Scott Parry, founder of Crown Money. In this informative and eye-opening webinar, Scott shares his journey from starting out as a young mortgage broker to founding Crown Money, a company focused on helping people achieve their financial goals and becoming debt-free. Crown Money clients on on average pay off their mortgages within 12 years, and Scott is calling a client every 23 days to congratulate them on being debt free! The episode dives deep into the topic of mortgages and...
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State of the States
Hotspotting
One of the fundamentals of understanding real estate dynamics is remembering that real estate markets are local in nature – and they are influenced by the local economy in which they sit, far more than by national factors. Although economists and journalists often refer to “the Australian property market” and predict what will happen with “Australian property prices”, the reality is that there is no such entity as the Australian property market. Take a look at the price growth results among the eight capital cities for last year and you will note that some had boom growth, some had...
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Interviews with the 1% - Kate Hill
Hotspotting
Are you ready to take your investment journey to the next level? Look no further, because we have exciting news to share with you! We are thrilled to announce our new Hotspotting pre-recorded interviews with some of the top 1% of Australian investors who own 5 or more properties. As you may know, in the 2020-2021 financial year, only 0.87% of investors in Australia owned 5 or more investment properties. But what do these successful investors know that the majority don't? We have sat down with a number of them to get exclusive insights into their strategies, tips, and personal journeys....
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Divorce and Dollars: Managing Real Estate and Relationships with Sallyanne Hartnell
Hotspotting
Join us on this enlightening episode of the Hotspotting podcast, where host Tim Graham welcomes Sallyanne Hartnell from Reflect Coaching. An award-nominated Relationship and Divorce Coach and podcast host of "Reflect, Reclaim & Liberate," Sallyanne is on a mission to transform the divorce experience, helping couples reorganise their lives and family dynamics post-separation with dignity and less drama. In this episode, Sallyanne sheds light on why she might be the professional "no one wants, but many need." We explore the intriguing intersection of divorce and real estate, discussing how...
info_outlineMedia has gone overboard on the forecast by the Commonwealth Bank that property prices across Australia will fall 10% in 2024.
As consumers, we can rest assured that it won’t happen - because the people making these forecasts have a track record of getting it horribly wrong in their property market predictions.
There are two major things wrong with the media treatment of forecasts like this:-
One is the speed with which media turns a forecast into a fact. It’s not a case of someone forecasting that prices may fall 10% in the future, but it’s presented as: prices WILL fall 10%.
The second is that journalists never check on the forecasting record of the people they’re publicising. If they did, many high-profile forecasters would never appear in media – because they constantly get it wrong.
The Commonwealth Bank’s latest prediction on prices comes from the CBA’s head of economics, Gareth Aird.
Media assumes this is credible because it comes from one of the Big 4 banks and CBA is our biggest mortgage lender. They must know what they’re talking about, right?
Well, actually, NO.
Based on his track record, Gareth Aird is one of the nation’s worst forecasters.
Let’s look at what he predicted in March 2020 as the pandemic first took hold.
He forecast that residential property prices would drop 10% over six months and 20% in the next year, led by steep falls in Sydney and Melbourne.”
BUT in the next 12 months house prices overall rose 7.5%, with Sydney up 8%, Adelaide 9%, Hobart 13%, Canberra 14%, Darwin 16% and Regional Australia by an average of 13%.
Now, let’s look at his forecast at the start of 2021.
In February 2021, Gareth Aird on behalf of the Commonwealth Bank, was forced to admit they’d got it seriously wrong a year earlier and were now predicting price rises.
But their forecast was: House prices will rise 9% in 2021 and unit prices will rise only 5%.
What’s actually happened? House prices have risen 21% and unit prices 13% in the first 10 months of the year alone.
Once again, they’ve underestimated housing markets across Australia. And they continue to discuss Australia as a single unified market, without allowing for many regional differences.
Let’s face it, Gareth Aird would struggle to accurately forecast what happened yesterday.
And why does this failed forecaster think prices will fall in 2024? Because he expects interest rates to rise and this will generate a big drop in prices.
This, I have to say, is kindergarten analysis. Simplistic, misguided and plain wrong.