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Formerly The Property Planner, Buyer and Professor, our show rebranded in 2023 to The Property Trio. Residential property is the only asset class we live in, it is where we...
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Formerly The Property Planner, Buyer and Professor, our show rebranded in 2023 to The Property Trio.
Residential property is the only asset class we live in, it is where we raise our families, and it is our most expensive investment, yet property advice remains unregulated. Our objective is to educate time-poor professionals through deep insights from our experts who have provided thousands of Australians with personalised advice and education spanning two decades. In a climate where we are overloaded with information and one size fits all recommendations from the media, well-meaning friends and family and so-called advisers, we will distill the raw truth from the ill-informed.
So join the Property Planner, David Johnston, The Property Buyer, Cate Bakos and the Quantity Surveyor, Mike Mortlock as they take you on a journey of discovery through the maze of property, mortgage, and money decisions to empower you to create your ideal lifestyle!
show less
Residential property is the only asset class we live in, it is where we raise our families, and it is our most expensive investment, yet property advice remains unregulated. Our objective is to educate time-poor professionals through deep insights from our experts who have provided thousands of Australians with personalised advice and education spanning two decades. In a climate where we are overloaded with information and one size fits all recommendations from the media, well-meaning friends and family and so-called advisers, we will distill the raw truth from the ill-informed.
So join the Property Planner, David Johnston, The Property Buyer, Cate Bakos and the Quantity Surveyor, Mike Mortlock as they take you on a journey of discovery through the maze of property, mortgage, and money decisions to empower you to create your ideal lifestyle!
The Property Trio
The Property Trio
#267: Crafting a Winning Property Strategy - Navigating Asset Selection, Growth vs Cash Flow & Changing Property Purpose
22 JUL 2024 · Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM
Mike kicks off the episode with the first listener question. Josephine writes in... she and her partner have just secured their first property with the help of the First Home Guarantee, and the purchase is about to settle. They were initially planning to reside in the property, but after discussions they are wondering if they have made the right move. They are keen to continue building a property portfolio and they are worried that they should have considered an investment first. Was it a mistake? Should they revise their strategy? And is it costly to switch the property to an investment now?
The Trio unpack this dilemma... or is it a dilemma?
Dave breaks down the questions and congratulates Josephine and her husband on a great achievement. They have navigated the purchase of a potential family home that could be improved/extended, getting "the big rock in the jar." Dave concedes that they have actually got the purchase mechanism in the right order.
Our listener is planning on moving out and renting the property out for a while before moving back, and while there are tax considerations and critical dates to consider, their overall strategy sounds feasible. Moving back in with parents will enable them to manage their cashflow optimally and continue saving hard. Cate acknowledges their Lender's Mortgage Insurance advantage also.
Dave addresses the burning technical question: Are there big implications to switching from owner occupier to investment and back again? Paying interest only and preserving all of the debt is an important consideration if they are considering this property as a stepping stone to later be converted to an investment property later on. Cate's sage words about the importance of getting great tax advice before making firm decisions that can't be reversed, resonate.
Mike revels in sharing some tax details with our listeners. There are two main elements of depreciation topic; Division 40, (Plant and equipment) and Division 43 (Structural components). Both are treated differently when a borrower renovates and Mike sets out some examples of how each are treated.
"You're 26 and you've got a house. You're crushing it!", says Mike.
Catherine's listener question is all about the optimal configuration of a character dwelling in Melbourne. She wonders if she should be targeting two bedroom, one bathroom cottages, larger three bedroom houses or improved dwellings with ensuites. Cate details the styles, eras and historical timeframe of Melbourne's growth during the turn of the century through to pre-war. Where can you find the different categories and styles? How do they perform? Why are they so special? And what changes did COVID create to demand for Victorian cottages? The Trio discuss the variables, from price points, to the work from home phenomenon, and renovation opportunities. Yield, (cashflow) and Land to Asset Ratio are important considerations when an investor is considering layouts and configurations.
Dave tackles the strategy-piece that Catherine should be considering as she devises her purchase plan for this purchase.
Cate shares some A-grade period property selection tips... tune in to catch them! .
... and our gold nuggets!
Cate Bakos's gold nugget: If a buyer can identify a property that has no obvious detractors to a mainstream buyer, they are poised well for capital growth.
Dave Johnston's gold nugget: Getting the big rock in the jar sooner, the better. For most people it's the most expensive asset they hold, (and for some, the only asset they hold). Getting the big rock in the jar early enables borrowers to get the debt down sooner, and allows them to focus on their investment plans for retirement.
Mike Mortlock's gold nugget: "It's all about strategy, and Dave and Cate are all in for the period homes!"
Shownotes: https://www.propertytrio.com.au/2024/07/22/winning-strategy-and-asset-selection/
#266: Market Update Jun 24 – Record House Price Expectations, Mid-Size Capitals Soar & Finding Rental Growth Equilibrium
15 JUL 2024 · Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM
Mike kicks off this episode, and the Trio unpack the latest stats. Brisbane, Adelaide and Perth continue to be the star performers, with Perth taking up first place with an annualised growth rate of 23.6%.
On the flip side, Cate shares her coalface findings on Melbourne's climate, citing opportunities as "low hanging fruit." Cate describes some of the interstate investor interest in Melbourne as speculative and opportunistic. Dave raises the point that interstate migration has played a key role in some of the growth data also, as have investors whose purchase and selling activity has been triggered by tax and legislation changes.
While the pace of growth of rents has slowed, rents are still all positive, and with the exception of Darwin, Canberra and Hobart, our rents are still out-pacing CPI. The Trio reflect on Peter Koulizos's sage observation in past years; rents are only just catching up after a long period of limited growth.
Mike wonders what the driving force is for rental growth easing. Could it be a supply and demand factor? Are more people cohabitating? Have rents reached a natural cap based on affordability? The Trio debate some of the possibilities, including re-partnering of couples following the COVID response.
And what is happening with listings? We have more new listings than previous years, but our total listing figures are still below historical levels. However, the increasing number of 'old listings' in Victoria is showing signs of total supply potentially outpacing buyer demand.
This month's Westpac Consumer Sentiment has some changes since last month. As Cate says, "Everybody seems to think that the next twelve months isn't looking so rosy but they can visualise good times ahead of that."
Dave distils consumer sentiment into states and territories. Time to buy a dwelling index had the largest declines in the capital cities that have recorded the highest price gains. The Trio tackle a conflicting driver of sentiment; the wealth effect.
Mike cites the 'crane index', which is a crude measure of building activity and supply. It is as basic as counting the cranes on the city landscape.
The Trio uncover two interesting extra charts. The cash rate target vs cumulative change in national home values proves Peter Koulizos's point that there is not a direct correlation between house price growth and interest rates.
The chart below shows the difference between median monthly rent value and mortgage repayment for the equivalent property. It illustrates the huge differential between the mortgage repayments and the rental payments for the same dwelling.
And... time for our gold nuggets...
David Johnston's gold nugget: Dave wants Core Logic do conduct a deep dive analysis into the Victorian market purchaser/investor activity following recent land tax changes.
Cate Bakos's gold nugget: Cate would also love access to our various state and territory revenue offices to understand the impact of the reforms and taxes, particularly on overseas investors.
Mike Mortlock's gold nugget: Mike shares the importance of buying when you are ready, as opposed to attempts to time the market. While the white noise and doomsayer stories float around in the media, it's important for investors to keep a long term focus.
Shownotes: https://www.propertytrio.com.au/2024/07/15/ep-266-june-market-update/
#265: Tax Time Tips for Property Investors - Avoiding ATO Scrutiny, Optimising Deductions, Repairs, and Depreciation
8 JUL 2024 · Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM
Dave hosts this week's show and Mike is in the hot seat to shed light on some of the items that the Australian Taxation Office, (ATO) is focusing on this year. Specifically, the ATO is honing in on a few key areas that often trip up property investors. What could these be? Tune in to find out...
From deductible expenses to claims for repairs and maintenance, there are quite a few ways that investors make boo-boo's at tax time.
Redraw versus offset: What is the difference? And how do borrowers sometimes make a mess of it? Dave shares the six key principles that he and his team share with their clients in relation to this very topic.
What is the third thing that the ATO is targeting investors for? Mike details the rules around properties that are not occupied full time by tenants, and he also shares an interesting fact that a lot of people wouldn't realise. What is the implication if an investment property has been inhabited by the owner before it becomes a rental property? This applies to over 20% of investors!
Repairs versus capital improvements... what's the difference? What do people often get wrong? And why does timing matter? Mike sheds light on these questions.
What did Cate get wrong with her tax depreciation a few years back? Mike enjoys ribbing Cate, but it was an expensive oversight, and one that the Trio don't wish on our listeners.
Mike shares the five basics that an investor needs to know about tax depreciation, from timing to feasibility, the magnitude of the return to the firm who tackles the depreciation schedule. His simple list of three triggers should give every investor a hint as to whether it's worthwhile conducting the depreciation schedule.
Cate shares her tips for making tax-time a bit easier, particular for multi-property investors.
.... and our gold nuggets!
Cate Bakos's gold nugget: If you're already active in property, your tax affairs are probably starting to get a bit detailed. It might pay to go and see an accountant to prepare your return for you by the time your return is getting detailed.
Mike Mortlock's gold nugget: We shouldn't be thinking "tax time is coming and now we have to do all this work." What systems can investors put in place to make tax time a bit easier? Mike has some great suggestions.
Dave Johnston's gold nugget: If you have a property portfolio and you feel that you haven't been getting strategic mortgage advice, it may be a good idea to go and see a strategic mortgage broker. They may even identify some tax deductions that you've been missing.
Shownotes: https://www.propertytrio.com.au/2024/07/08/tax-time/
#264: The Ultimate Guide to Rentvesting – How to Unlock Property Potential in High-Cost Cities to Create Your Ideal Lifestyle
1 JUL 2024 · Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM
Rentvesting is not for everyone, but many people do not even consider it, which may be to the detriment of their finances or lifestyle. Maintaining an open mind to rentvesting and exploring it’s potential will provide you with greater clarity on your pathway forward, whether you take that path or cross it off as an option.
Dave explains what rentvesting is, and why it's becoming a popular strategy among first-time buyers. From desireable rental locations to growing wealth, there are plenty of reasons why some choose to adopt this strategy.
Mike touches on the key benefits and he highlights his own rentvesting benefits that he's currently experiencing. Cate covers off some of the reasons why rentvesting is more affordable in capital cities, particularly the lower-rental-yielding cities such as Melbourne and Sydney.
Dave shares a real-time example in Melbourne's leafy Hawthorn East. He contrasts a mortgage versus a rental property for a make-believe couple and the cashflow differentials are quite a surprise!
For a first home buyer versus a renter, the difference in monthly cost is more than three times. Was buying always this difficult? Cate dares to ask the question and Dave steps our listeners through the last forty years. But Cate sheds light on the cost of property on the opposite side of town. How do these locations compare, and what is the multiple of the average annual wage these days?
Mike explains why it's so difficult to get into highly sought-after locations, but he also explains why the number of rentvestors is so limited. And there are quite a few reasons! But how short a tenure is too short for a rentvestor? Tune in to find out.... .
... and our gold nuggets!
Dave Johnston's gold nugget: Carefully consider your own personal situation and goals. Rentvesting can be great, but it's not for everyone. It only makes sense that your property decisions should be informed by your over-arching property strategy. And how will your next purchase impact your future purchases? This is a very important question.
Mike Mortlock's gold nugget: Mike uses a car analogy. Selecting the right car for the right track is critical. "Asking the place where you want to live to be the investment as well, is sub-optimal for property success."
Cate Bakos's gold nugget: Cate reminisces about a successful real life client scenario that was based on a well-carved out strategy.
Show Notes: https://www.propertytrio.com.au/2024/07/01/rentvesting/
#263: Strategies for Early Homeownership, Passing on Money Management Wisdom and Teaching Financial Independence
24 JUN 2024 · Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM
Helping versus hindering our children's financial futures... it's all about mindset! Dave hosts today's episode and the Trio enjoy sharing their thoughts about the various ways we can help our children get a foot on the property ladder.
First homebuyer participation is up a little bit when contrasted against recent years. Dave runs through some of the key reasons that could be contributing to this increased level.
First home buyer activity bounced up with targeted government incentives during GFC recovery and COVID recovery. Both also had record low interest rates.
“The series shows only two substantial spikes in first home buyer loans between 2008-09 and 2020-21. These can largely be explained by temporary government incentives for housing purchases. There was a temporary boost to the first home owner grant introduced around the GFC, and a temporary HomeBuilder grant introduced around the onset of the pandemic (which was not specifically targeted at first home buyers, but could be used in combination with the then recently introduced ‘First Home Loan Deposit Scheme’).” (Source: Core Logic)
The Trio take a walk down memory lane as they recall some of the various first home buyer incentives introduced by our governments since the GFC. Dave canvases the concept of false economy when it comes to incentives and price points that some buyers chase that don't completely align with an optimal strategy.
Cate delves into some of the issues that could arise when parents' generosity is too great. From a lack of appreciation to jealousy among peers, (and many others), there are some significant risks that need to be considered.
Cate chats about hers and her husband's approach with their daughter's property deposit savings regime. From a small inheritance from her grandmother a few years ago, followed by ETF share portfolio outperformance of that little nest egg, this seventeen year old has been making regular contributions to her portfolio with her part time job. What is the deal that Cate has struck with her? Tune in to find out...
The Trio reflect on the great encouragement that their own parents imparted. Thinking about the great lessons and moments of pride during our own childhood can lead to some great ideas that can be paid forward.
And lastly, Cate talks about some of the non-financial ways that we can make a positive difference for kids these days.
.... and our gold nuggets!
Cate Bakos's gold nugget: When you're working out how you can help your kids with their financial future, make sure you let it be their journey.
Mike Mortlock's gold nugget: Mike reflects on Cate's daughter's $5000 nest egg which was compounding. That 'early win' is a very valuable introduction to good investing.
Dave Johnston's gold nugget: Getting his children applying some research and selecting companies in a share portfolio from the age of grade six is an exciting plan that Dave has been considering.
Show notes: https://www.propertytrio.com.au/2024/06/24/helping-our-children/
#262: Market Update May 24 – Perth Surges, Brisbane Now 2nd Priciest City for Houses & All Dwellings, Passing Melbourne & Canberra
17 JUN 2024 · Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM
Mike kicks off this episode, and the Trio chat about the ferocity of the Perth market and they ponder the nature of cyclic markets. Is Perth cyclic? And is this city sharing a pattern with any other cities, or is Perth unique? And how is it possible that rental growth is still strong when investors are buying up?
Brisbane's outperformance is noteworthy too, with this beautiful city taking the lead on Melbourne.
Hobart's decline in rents defies most of the nation, but Cate explains some of the driving forces at play. Namely, the sea-change/sea-change moves during lockdown are reversing for many, and combined with the update in overseas holiday activity (to the detriment of domestic travel), cities like Hobart are experiencing different trends to most of our other capital cities.
Mike tackles yields and marvels at the combined capitals average yield, but as Cate reminds listeners, average yields are not a perfect measure because the ratio of houses/units across our cities varies greatly. If only Core Logic could give us a separate measure for houses versus units!
And what is happening with listings? We have more new listings than previous years, but our total listing figures are below historical levels. This tells us that buyer demand is strong, and is soaking up the listings faster than they are hitting.
While the Spring market has returned after two years of glitches to 'the norm' over COVID, some things have changed. Cate talks through some of these, including off-market listings.
"Such a tale of eight cities", says Mike as he compares the difference in listing volumes across several capital cities.
But by drawing our listener's attention to the three data sets, (new listings, old listings, total listings), in triplicate they tell a very interesting story. Cate ponders the viability of gauging the retraction of old listings when it comes to identifying markets that may be over-heated.
This month's Westpac Consumer Sentiment Index is reasonably unchanged from last month. There is no doubt that the affects of higher interest rates are biting for many households. However, as Cate says, "It's a bit of a boring chart, but right now, boring is good."
Lending indicators are showing some strong numbers; with the exception of construction. Despite investor numbers coming off a low base, Dave explains that buyers are making decisions now that it's obvious that the risk of interest rate increases is lower.
Cate shares an interesting chart that segments funding into construction, established, land, new builds and alterations/repairs. There is no doubt that the pain of the construction industry is showing up in the data.
The bond yields shows that the rate today is predicted by the markets to be the 'new norm'. Dave steps the listeners through some of the charts, including the unemployment data.
"Unemployment has often been the collateral damage as the RBA has been increasing rates to bring down inflation, but this time they are trying a different tact, and they've actually said that", states Dave.
And... time for our gold nuggets...
Cate Bakos's gold nugget: Buyers have to consider a broad picture before they circle in on one city that's doing well. Getting our hands on the rate of change of old listings offers a bit of valuable insight.
David Johnston's gold nugget: Market updates talk about the monthly market gyrations, but ultimately it's about the big picture and the long term that really matters. And what's right for your personal circumstances is vital. Understand your own strategy and understand the price point that's right for you.
Show notes: https://www.propertytrio.com.au/2024/06/17/ep-262-may-market-update/
#261: Recovering from Buying a Lemon - How to Revive Your Property Journey, Stage of Life Considerations & Market Cycle Management
10 JUN 2024 · Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM
Dave opens our episode with a cautionary tale. We are grateful to our listener, Daniela who wrote to us about a challenging experience she and her husband had with a purchase she described as a "lemon."
After having bought a house and land package in Perth that delivered underwhelming capital growth performance for nine years, Daniela and her husband chose to sell the asset when moving to Melbourne for work. Sadly their timing wasn't great and they feel they missed the full cycle (home, upgrade, downsize). Now they find themselves with $110,000 in savings, a limited array of property options that appeal to them, a student son living with them, and a dilemma on their hands.
Do they buy a house in the outer suburbs or consider apartments? And if they can afford two apartments instead of a house, will this help them gain a better financial position?
Mike and Cate tackle the houses vs apartment outperformance question. Cate steps back to the heart of the listener question and suggests that finding a suitable home should be the primary focus at this stage, (as opposed to their appetite for capital growth outperformance).
Four unfortunate headwinds have compounded the issue for the couple now, namely;
- Their timing with the Perth market was unfortunate
- Markets are cyclical and managing market cycle risk is always a challenge when buy and hold timeframes are short
- House and land packages are notorious for underperformance due to the lower Land to Asset Ratio
- Melbourne's broad property value is still greater than Perth
"Over the previous ten years, Melbourne prices grew 96 percent, yet Perth prices in the same timeframe only delivered eight percent."
From managing simultaneous sales/purchases to strategising a surprise interstate move, Dave touches on some of the important elements for buyers to consider. Daniela and her husband sold the house in Perth, but could have they had a better long term outlook if they'd held onto Perth? And should they be buying in Melbourne now that they have moved there? There are a lot of questions that the Trio bring up for our listener couple to think about.
Daniela has nominated two options that she feels could be feasible, but why does Cate suggest that she could be on the wrong track? And what other options could be viable? Tune in to find out...
Stage of life is very important when it comes to determining a property plan. The Trio discuss the next items for Daniela and her husband to canvas in relation to their strategy.
"If they are focusing on Melbourne as their forever place, there is a silver lining. The market has stood still for them", says Cate.
.... and our gold nuggets!
Mike Mortlock's gold nugget: "Avoid perverting the course of what you are trying to achieve with dual ambitions." Having a clear strategy on a primary requirement can mitigate this risk.
Cate Bakos's gold nugget: Only once you trigger a sale event is when a result is crystallised. Cate recommends buyers seek professional advice before triggering a loss or a gain.
Shownotes: https://www.propertytrio.com.au/2024/06/10/recovering-from-buying-a-lemon/
#260: Celebrating 5 Years of The Property Trio - Our Journey and Favourite Property, Mortgage and Money Insights
3 JUN 2024 · Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM
Mike opens our 260th episodes, congratulating Dave and Cate on five years of podcasting. The Trio have decided to take a trip down memory lane and reflect on some of the eps, and the special bond that they all share, Pete included.
Cate gives the listeners a bit of background about what drove the market update deliveries, and how the show has evolved as a result of lockdowns and listener feedback.
Reflecting on the initial seven episodes from their pilot run has been fascinating and they share a few fun soundbites.
Why don't the Trio invite guests on the show? They actually imagined at the start that they would, but it's become a point of difference to stick to the Trio, (plus Pete for the occasional appearance). Cate expands on why the show is likely to remain as just the three hosts.
Deep-diving into the data, and in particular their chosen topics has a dual benefit for the Trio. Sometimes they select a topic that really stretches their own knowledge.
Replacing Pete was no mean feat and Cate reflects on Mike's appointment and some of his cheeky antics.
The Trio have each selected some of their favourite snippets from the early days .... we hope you enjoy!
Show Notes: https://www.propertytrio.com.au/2024/06/03/celebrating-five-years/
#259: Home Building & Development Project Perils - Tackling Escalating Expenses, Development Finance, Project Overruns & Their Impact
27 MAY 2024 · Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM
This week, we unpack a fabulous listener question from Melissa. "What advice would you give to those of us who have construction loans were the build is dragging and we're being squeezed between increasing rents, increasing interest rates, and increasing construction costs?", she asks. "And what advice would you give to anyone considering a construction loan? "
Cate steps through some of the planning, building and environmental issues that can threaten a build or renovation.
Mike sheds light on the flow-on effects that are triggered by planning and building delays. From overcapitalisation to materials surcharges, council enforced orders and others, there are some serious risks that must be considered by those who decide to build or renovate.
How can renovators avoid some of the stressors? Dave has some good tips...
How many people consider the contractual details, milestone payments, additional costs and cashflow considerations? It can be tricky to navigate these points, but Mike has some great ideas he shares with the listeners who are considering embarking on a build or a renovation.
How long should people spend in the planning phase? Mike sheds light on some of the elements that get missed at the design phase. Did you know that approximately 60% of defects occur at the design phase?
The Trio share their advice for those who are thinking about a construction loan. Construction lending experience is critical, and Cate and Dave chat about the key differences between traditional, established-property lending versus construction lending.
And what is an "as-if completion valuation"? And what is the process that needs to be followed? Mike gives us some valuable insights into the role of a Quantity Surveyor.
..... and the gold nuggets!
Cate Bakos's gold nugget: There are three things that Cate thinks are really important to nail. 1. understand the budget. 2. work with someone who will work to your budget. 3. have a very good strategic finance person on your side.
Mike Mortlock's gold nugget: "Make sure the contract is reviewed!" Having an firm understanding of all of the important elements is so valuable for those who are building and renovating.
Show notes: https://www.propertytrio.com.au/2024/05/27/home-building-and-development-project-perils/
#258: Market Update April 24 – Brisbane, Adelaide & Perth Juggernauts Continue, Unit Demand Rises, Federal Budget Rental Relief & Trajectory
20 MAY 2024 · Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM
Mike kicks off this episode, and directly following Budget Night, the Trio chat all things Federal budget. From the lack of new property initiatives to questioning the impact of the Federal Rental relief, one thing is obvious. The Labour government are acutely aware of the need to see inflation rates reduce, and we are less than one year out from an election. The budget could be described as tame, but that doesn't slow the discussion at all for the Trio.
April’s increase takes the current growth cycle into its 15th month, with housing values up 11.1% since the trough in January last year. However, almost every capital city is recording stronger growth conditions across the lower value range of the market.
The shift towards stronger conditions across lower value markets can also be seen between the housing types, with growth in unit values outpacing house values over the past three months. Hobart was the only city where houses recorded a larger gain than units over the past three months.
Regional markets have shown a slightly stronger quarterly growth rate over the past five months than their capital city counterparts, following a 10-month period where the combined capitals index was outperforming. Regional Victoria (-0.1%) was the only rest of state market to record a decline in values over the rolling quarter. Nationally, rents were up 0.8% in April, a slightly lower rate of growth relative to February and March when the national rental index rose 0.9% and 1.0% respectively.
As Dave points out, Although rental growth may be tapering, supply remains extremely short and the trend towards smaller households seen through COVID has been slow to reverse, further amplifying rental demand. It is likely rental growth will remain well above average for some time yet.
In April, the national gross rental yield rose to 3.75%, the highest reading since October 2019, up from a record low of 3.16% in January 2021. Vacancies continue to remain tight, although a subtle ease is evident from last month to our current month, with more than half of the capital cities increasing slightly.
Dwelling sales look to have moved through a cyclical peak in November last year. Although the monthly trend in home sales is highly seasonal, the less seasonal six-month trend has remained relatively flat since the November rate hike. Estimated sales over the past three months are tracking 8.6% higher than at the same time last year, and about 5.1% above the previous five-year average.
Listing volumes tell an interesting story, and as Cate points out, the rate of new listings is remarkably 'normal', in fact it's slightly stronger than the past five year average. However, the total listings tell another story. Demand is exceeding supply, and older listings are now being snapped up by buyers. The trio canvas what the possible driver could be, and they determine that old stock, (in particular, units) could be the reason. Given the the relative outperformance of units in most capital cities, this possibility doesn't seem all that extreme.
In an effort to cover off the Consumer Sentiment Index, we turned to the ANZ Roy Morgan poll given Westpac's index is yet to materialise. Consumer Confidence remains very weak, sitting at its lowest level for the year.
Show Notes: https://www.propertytrio.com.au/2024/05/20/ep-258-april-market-update/
Formerly The Property Planner, Buyer and Professor, our show rebranded in 2023 to The Property Trio. Residential property is the only asset class we live in, it is where we...
show more
Formerly The Property Planner, Buyer and Professor, our show rebranded in 2023 to The Property Trio.
Residential property is the only asset class we live in, it is where we raise our families, and it is our most expensive investment, yet property advice remains unregulated. Our objective is to educate time-poor professionals through deep insights from our experts who have provided thousands of Australians with personalised advice and education spanning two decades. In a climate where we are overloaded with information and one size fits all recommendations from the media, well-meaning friends and family and so-called advisers, we will distill the raw truth from the ill-informed.
So join the Property Planner, David Johnston, The Property Buyer, Cate Bakos and the Quantity Surveyor, Mike Mortlock as they take you on a journey of discovery through the maze of property, mortgage, and money decisions to empower you to create your ideal lifestyle!
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Residential property is the only asset class we live in, it is where we raise our families, and it is our most expensive investment, yet property advice remains unregulated. Our objective is to educate time-poor professionals through deep insights from our experts who have provided thousands of Australians with personalised advice and education spanning two decades. In a climate where we are overloaded with information and one size fits all recommendations from the media, well-meaning friends and family and so-called advisers, we will distill the raw truth from the ill-informed.
So join the Property Planner, David Johnston, The Property Buyer, Cate Bakos and the Quantity Surveyor, Mike Mortlock as they take you on a journey of discovery through the maze of property, mortgage, and money decisions to empower you to create your ideal lifestyle!
Information
| Author | ... |
| Organization | Cate Bakos |
| Categories | Investing |
| Website | www.spreaker.com |
| cate@catebakos.com.au |
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