Property Investment: Media vs. Research (Featuring Hotspotting Best Buys Report)
Release Date: 03/18/2024
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...
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Melbourne Property Growth
Hotspotting
There are numerous reasons why we think Melbourne and Victoria is worthy of consideration by property investors, notwithstanding the concerted efforts by the state government and some local councils to force investors to sell up and get as far away from Victoria as possible. Melbourne and Victoria are underpinned by one of the nation’s strongest state economies, according to CommSec’s State of the States report, and there has been a notable uplift in sales activity since the start of 2024, pointing to elevated price growth as the year unfolds. But perhaps the most compelling evidence,...
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First-Home Buyers vs. Investors in the Property Market
Hotspotting
Media loves the storyline that first-home buyers are competing with wealthy investors for properties – and losing because investors apparently have a huge advantage. Like so much that’s written and spoken in news media about the housing market, it’s a work of fiction. The polar opposite is, in fact, the truth. The biggest competition for first-home buyers in the market is not investors, but home buyers other than first-time buyers. The largest cohort in the market, at any point in time, is home buyers who already own a home, have equity in that home and are upgrading – or, in some...
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Location Reports: Your Real Estate Game-Changer!
Hotspotting
If you want to sell real estate, very often the greatest selling point is the location. If the location has … a strong diverse economy creating jobs, a steadily growing population with strong increases projected well into the future, good existing amenities and a significant spend on new infrastructure … then it has many of the credentials for capital growth. The problem for many real estate professionals - in taking advantage of growth factors like that in their location- is accessing all the key information, analysing it and then presenting it in a way that’s easily...
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Webinar Replay - Why Melbourne Makes More Sense Than Perth
Hotspotting
Want to get into a key market BEFORE prices start to take off? Feel that you may have missed the boat with media favourite Perth? In many ways, the answers to these questions are the essence of smart investing. Most property investors are herd animals, diving into markets when they read that prices have risen 15% or 20% in the past year – or 50% in the past three years. Buying in such a market means you are likely buying at – or after – the peak of the market. The smart money would have been there 2-3 years ago – and is now focused on places that are early in the growth cycle....
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Interviews with the 1% - Arjun Paliwal of InvestorKit
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. Our...
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Real Estate Influence on RBA
Hotspotting
Part of the obsession by economists with interest rates as the only thing that matters in the housing market is the notion that the Reserve Bank spends a large amount of time discussing the housing market before deciding what to do about interest rates. As with so many things, economists are wrong about that. One of the most popular definitions of insanity is doing the same thing over and over again, but expecting a different result. My own definition of insanity is the average Australian economist discussing real estate. In essence, those two definitions are essentially the same thing....
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First Home Buyer Activity
Hotspotting
If you tune into news media regularly, it’s easy to form the view that the prospect of young Australians buying real estate is remote, if not impossible. There are daily headlines telling us that it takes 10 or 15 years to save a deposit, or that most young Australians have given up on home ownership and that young adults are doomed to a life-time of renting. As is so often the case with mainstream media and their love of negative sensation, the reality is quite different. First home buyers are highly active in markets across Australia. But first, let’s look at some of headlines with which...
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Home Building Costs
Hotspotting
Want to know why housing affordability is so poor in this country? The answer, in simple terms, is because the cost of building new houses is so high – ridiculously, obscenely high. The cost of building the typical house in Australia has risen 53% in the past three years – and it now costs close to half a million dollars to build that home. And that’s just the cost of the house. It doesn’t include the price of the land. Who’s to blame for this situation? Primarily, overwhelmingly, it’s government. Politicians and bureaucrats. They keep...
info_outlineThe most successful property investors that I know have some features in common and making decisions based on research is one of the key ones.
But those people are relatively rare.
It seems to me, from observing the behaviour of investors for the past four decades, that more people make investment decisions based on media soundbites than on genuine research.
Far too many people are leaping recklessly into the Perth property market because mainstream media keeps telling them that prices are booming and will keep on booming, backed by commentary from real estate people who have a vested interest in prolonging the Perth boom for as long as possible.
At Hotspotting, we think this media soundbite approach is fraught with peril and that many of the people piling into the Perth market at the moment will regret their decisions, made in haste without proper due diligence.
It’s a reflection of those views that the new edition of the National Top 10 Best Buys report does not include any locations in Perth.
Based on detailed research, we think this market has peaked and will not be the national leader on price growth in 2024, as many are predicting – or hoping.
We think there are other, better places for people to be putting their money – safer, less volatile, less heated markets with good potential for capital growth.
Our choices for good locations to buy in 2024 are based on research-based knowledge of the key trends that are driving demand in the best locations across Australia.
We’re not focused on short-term sugar-hit gains – rather we’re focussed on places we think will do well in the medium to long term.
We base our choices on economic factors, on demographic trends and on the locations of influence from big infrastructure developments.
At Hotspotting, we are constantly on the look-out for evidence of change in property market trends and in individual locations.
Places that have been weak performers on capital growth in the past can become the leaders of the future, because something major has changed in that market – often caused by the development of major new infrastructure.
Sometimes it’s a significant demographic shift – such as the trend which has seen growing numbers of people leaving the biggest cities and moving to smaller cities or to regional areas, in search of a different and more affordable lifestyle, enabled by technology.
More recently, we have observed a surge in demand for units and townhouses by a range of different buyer cohorts, for a host of different reasons – and this is changing one of the dominant paradigms of real estate – that houses outperform units on capital growth.
All of these factors are reflected in our new edition of the National Top 10 Best Buys report.
It’s our most popular report, because it’s the one that considers all the events and trends happening across Australia – and identifies the markets with the best prospects for future capital growth.