Building Costs (May 2024)
Hotspotting
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Budget Hopeless
Hotspotting
The Federal Government’s latest Budget will go down in history as the “band-aid budget”. Rather than fix fundamental problems and deal with core issues, the Federal Treasurer has thrown cash in various directions, in what looks very much like an election Budget. They haven’t provided solutions to any of the core problems in the housing industry, particularly the rental shortage. There are broken limbs everywhere in the industry - and in other parts of the national body - and the Federal Government has applied band-aids to a few of them. It’s the same in other areas. Rather than pull...
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7 Lessons from the $26Bn Man - With Tyron Hyde
Hotspotting
Catch the replay of our latest webinar hosted by Tim Graham, General Manager of Hotspotting, featuring Tyron Hyde, the visionary founder of Washington Brown and a master of property depreciation. Dive into the invaluable insights of "7 Lessons from the $26B Man," a presentation inspired by the legendary real estate mogul Harry Triguboff. In this compelling session, you'll explore the powerful strategies that fuelled Harry Triguboff's ascent to billionaire status, with a focus on the transformative impact of compounding in real estate investment. Discover practical advice and nuanced strategies...
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Carrot or The Stick?
Hotspotting
In this podcast episode, we dive into the two different approaches that state governments in Australia are taking to address the issue of rental shortage in the housing market. On one hand, Western Australia (WA) has adopted the carrot approach, offering incentives and encouragement to investors to increase the supply of rental properties. On the other hand, Victoria has decided to take the stick approach, punishing investors with new and higher taxes if they do not comply with the government's desires. The WA government has implemented several measures to encourage investors to bring new...
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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...
info_outlineIf 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 year, you’re a happy investor.
Several of the locations on our Top 50 list have recorded capital growth above 10% in the latest quarter alone, headed by the Perth suburb of Orelia which increased 18% in three months.
All of the 50 locations on our Top 50 three months recorded capital growth over the latest quarter, except one – and most experienced median price growth above 5% in the quarter, including nine locations which rose more than 10% in three months.
In the case of Orelia, this means $70,000 in capital growth in just three months, while the Perth suburb of Hillman also rose $70,000.
If you had bought a house at the median price in East Mackay, Queensland, your property’s value would have risen $50,000 in three months.
A $490,000 purchase in the southern Brisbane suburb of Kingston three months ago would now be worth $535,000, up $45,000 in the latest quarter.
In annual growth terms, 11 of our suburbs have risen by more than 20% in the past year.
This report demonstrates that it is possible to achieve an investment property that ticks every box for the owner: high capital growth and above-average rental yields in affordable locations with ultra-low vacancies and rent rising more than 10% per year.
Among the most outstanding performers identified by this report are locations where property values have risen notably, but rental yields have increased because there has been an exceptional increase in rents.
One of the stand-out markets highlighted by this report is the Queensland town of Dalby, the key regional centre for the Western Downs region west of Brisbane.
With vacancies near zero, rents have risen 24% in the past 12 months, with the median rental yield increasing from 6.6% to 7.2% in the past three months. Property values have also soared, with the median house price up 15% to $350,000.
That is the kind of performance that is possible if you get the quarterly editions of the special report we call The Pulse.