Finding tomorrow’s hot property, TODAY

FIVE KEY POINTS FROM THE WEBINAR

Economic uncertainly will draw more investors to put their money into real estate, according to multi award-winning buyers’ agent Miriam Sandkuhler, guest presenter on the July 13 webinar hosted by Hotspotting.

This means that, more than ever, it’s important that buyers and investors make buying decisions based on fully-informed, evidence-based research.

In the webinar discussion with Hotspotting founder Terry Ryder, Sandkuhler reveals a number of key talking points: the figures investors need to know, what’s happening in the regions, why the market needs investors, where there are opportunities in capital cities, and the things landlords need to keep in mind before buying.

1.      THE MOST IMPORTANT FIGURES

The most important figures for property investors are not median house prices but inflation and employment figures, according to Sandkuhler.

“During the early 1990s, it was unemployment which drove the property slump and a red flag to watch out for is unemployment,” she says.

At the same time inflation is important because rising inflation affects sentiment and can lead to increased interest rates.

While the recent rate rises will not result in a rush of sales due to owners facing financial hardship, as banks ensure borrowers can service much higher repayments, it will affect buyer confidence according to Sandkuhler.

2.      REGIONAL MARKETS ARE CHANGING

Many investors bought properties in the more affordable regional markets during the pandemic which drove up prices, but Sandkuhler expects that to ease a little.

“Regional differences will be profound,” she says.

That’s why its essential that investors buy in the right regional areas.

“There needs to be a substantial population of a minimum 50,000 people, but ideally 80,000 to 100,000, and a very diverse economy from a growth driver perspective,” she says.

“From a regional growth perspective there’s already been a drop in some markets. A slight reduction in regional Victoria, a little bit in regional Queensland and a little bit in regional Western Australia.”

Growth may stall in suburbs within Geelong, Ballarat and Bendigo before experiencing a solid rebound in the next cycle.

The rebound will coincide with the lead-up to the Commonwealth Games in regional Victoria 2026 which will lead to job opportunities and infrastructure spending in some markets.

There are still opportunities in other regional markets with reasonable yields but maybe not as high as in recent months.

“Anyone with $500,000 to $600,000 depending on where you’re looking, you should be able to get something worthwhile,” she says.

“Over the long term, with the right growth drivers in place, there are still opportunities to invest regionally.”

3.      WHY THE MARKET NEEDS INVESTORS

Governments need to stop treating investors like they are evil and recognise that encouraging investment can help improve the rental shortage crisis, Sandkuhler says.

Investors help by making accommodation available to those who otherwise couldn’t find suitable properties.

The return of overseas migrants and students will change some markets and continuing economic and sharemarket volatility will draw more investors to put their money in to real estate, which will help ease the shortage.

“When financial markets are volatile, historically people move to bricks and mortar,” she says.

4.      HOW CAPITAL CITY MARKETS WILL PERFORM

Capital city markets like Melbourne and Perth are well placed to weather any downturns, and both should emergence in the next cycle as the best performing markets. Adelaide will also continue to do well.

Melbourne still has high activity in affordable areas, particularly around the $600,000 price point.

“Properties in areas that have high levels of amenity in middle ring suburbs feature strongly amongst our outperforming locations, while trophy homes and small undifferentiated high-rise units are worst placed.”

Sandkuhler advises investors to keep an eye out for three-bedroom houses on a decent sized blocks which will appeal to families.

5.      DON’T BUY JUST ANYTHING: THE THINGS YOU NEED TO REMEMBER

It’s more important now than ever to ensure you don’t get caught by buying a poorly selected property in marginal suburbs.

“Watch out for poor-quality stock hitting the market,” Sandkuhler says. “Be selective.”

Investors in Victoria need to be aware of new legislation which outlines the 14 minimum rental standards that have to be met by landlords.

Sandkuhler says that’s why it’s important to buy the right investment property, as bringing a poorly-selected property “up to code” can be very costly.

New South Wales has also introduced seven minimum standards for landlords to meet.

While investors may have got around this in the past by purchasing renovated or new instead of existing properties, rising construction costs and delays mean that is not such a viable option at the moment.

“I’ve been advising my clients is it’s better and more affordable to buy properties that are already renovated, that don’t need anything done other than maybe some very basic cosmetic improvements,” she says.

“I’ve seen some insane prices being paid for fully-renovated properties.”

breaking-news
Find out how much your home is worth in today’s market. Get an instant market update, obligation-free. Gain insight into what your property is valued at, find out its potential rental yield and more.

Brisbane, Gold Coast, Sunshine Coast, Melbourne

Not all investment property tax depreciation schedules are built the same. They should be but the reality is, like many things in the property world, all is not as it seems. The devil is in the details—and the details are everywhere. But relax, at Washington Brown we take care of every last one.

Established in 1978, Washington Brown is one of Australia’s oldest and most respected quantity surveying organisations.

Each year, we prepare more than 13,500 reports, delivering $1.5 billion in depreciation savings.

At Triple Zero Property, we believe in delivering a seamless experience tailored to your needs. From personalised consultations and thorough research to ensuring transparent fixed-price building contracts and competitive pricing, we are committed to excellence at every stage. Our dedicated team oversees every aspect of your property build, from initial planning and throughout the construction process.

Discover how our comprehensive approach and commitment to client satisfaction sets us apart in in creating wealth through property in Australia.

Established in 2005, Reventon has built on a strong foundation in property investment and progressively expanded the business over the years. Today, they offer a complete range of property and financial services that includes, financial planning, accounting, mortgage broking, buyers advocacy and property management.

Reventon is a fully-integrated holistic wealth and financial planning provider founded by serial entrepreneur, international speaker, wealth specialist and company CEO Chris Christofi.

With Reventon, clients benefit from having all their needs met through a single relationship with a dedicated, experienced and trusted team. Our seamless service offers more convenience, greater control and ultimately a better client experience with better financial outcomes.

The propertybuyer team has been in business over 23 years and purchased over 4000 properties. Propertybuyer is a totally independent “Buyers’ Agency” focused on searching, negotiating and buying property in Australia for home buyers and investors. Our goal for each client is the “right property, at the right price, every time”.

We help you:

• Create a clear strategy and realistic “buyers brief”
• Provide access to “off market listings” – properties that are not advertised
• Provide research on the best suburbs with good prospects for capital growth and yield
• Save time – Typically we find the ideal property within 30 to 60 days of engagement
• Negotiate the lowest possible price (ie protect your clients from paying too much!)
• Give accurate appraisals and excellent local knowledge, Propertybuyer is currently the most awarded Buyers’ Agency in Australia, with 37 Awards for Excellence.

We never sell property so we are truly independent – we are not paid by selling agents or developers, so we never have a conflict of interest. This means we can devote ourselves wholly to looking after your best interests.

Plenitude Wealth is a holistic wealth management firm that is dedicated to making a positive change to the financial landscape of Australia and ultimately the world through creating an educational foundation of social awareness, enterprise and social consciousness.

We are passionate about all things property! This passion is about so much more than just property investments, numbers, and spreadsheets, it is about the relationships and genuine care we build with our clients.

We are exceptionally privileged when we are asked to assist our clients to help grow their investment property portfolios or even kick start their first purchase. Unlike most Buyers Agents, we are selective about our clients and do not try and do as many sales as possible – the emphasis is always on quality over quantity!

Our goal is not only to find the ultimate solution for them but to do so in a manner that ensures continued success by choosing locations primed for capital growth and the right cash flow for our client’s goals.

Optalife Wealth works with you to build financial security by providing clarity and confidence about your future. We work with you to build your financial plan, clearly defining what your future looks like and laying out clear and understandable steps for you to achieve.

There is no one size fits all here. We design your plan like a financial roadmap, tailored to your specific situation and what living your optimal life means to you. Like anything in life, having a clear plan increases the likelihood success and having a whole team working alongside you makes reaching your dreams one step closer.

Financebetter is here to guide you through the complexities of the financial world. Our experienced team of experts, including accountants, financial advisors, and investment analysts, is dedicated to delivering exceptional service and results.

Our comprehensive solutions and personalized guidance empower you to achieve your financial goals. Partner with us and experience the Financebetter advantage on your journey to success.

Bond Conveyancing is a licensed Law Firm designed to remove the stress out of buying or selling property in a simple, secure and affordable way. Bond Conveyancing is technology enabled but always people first.

Bond Conveyancing consists of an experienced team of conveyancers and lawyers qualified and skilled in property settlements and transfers. But they are not just about the property. Bond Conveyancing is people first, always. We understand that this is a big moment in your life and our timeliness and effectiveness in communicating with you comes second only to our diligence in ensuring your property settlement goes as smoothly as possible.

Our service puts a fully licenced Buyer’s Agent and Qualified Property Investment Adviser right at your side, to ensure that your interests are being protected at all times and your next investment property purchase achieves maximum success. Leverage off our extensive experience, professional know-how, and independent research to ensure that you’re accessing the best property opportunities available Australia-wide.Buying Properties in Sydney / Melbourne / Brisbane / Adelaide we operate on a client first approach, and will never sell you any property. We are 100% fee for service, providing independent & unbiased advice from qualified advisers and Buyer’s Agents. We set the standard in providing exclusive, one-on-one, independent, trusted and expert advice, tailored individually to suit your particular needs.

Subscribe to our newsletter today and receive a FREE copy of How To Identify Hotspots