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This could be a rip snorter of a year
This could be a rip snorter of a year

Kate Hill shares her predictions for property in 2024 with Bushy Martin on his podcast ‘Realty Talks’.

Plus, Bushy chats to PIPA Chair and Adviseable supporter Nicola McDougall whose own prediction is that we could be in for a ‘rip-snorter’ of a year!

If you’re looking to purchase an investment property in 2024 then this is a must-watch video!

This video is part of a featured series focusing on the findings of Bricks and Mortar Media’s annual property market forecast. You can watch more episodes of this series as they drop on Bushy Martin’s podcast channel.

If you’ve enjoyed this video then you might like to subscribe to our YouTube channel, or browse through our latest videos.

If you’d like entirely independent and unbiased advice that’s right for your unique situation and goals, then get in touch with us today.

Hello everyone how are you all doing out there? It’s Kate Hill as always bringing you the best unbiased and honest content on property along with fantastic hints and tips.  

Stay tuned today to hear about what’s in store for us and property in 2024.

[Music] Now I’m happy to say that this time last year in spite of all those interest rate rises I predicted property growth during 2023 and the way I see it is that the factors that put price pressure on properties this year are set to continue next year.

So what I’m talking about is billions and billions of dollars on major infrastructure expenditure, population growth thousands of new overseas migrants arriving and crucially low stock levels.  

There is and will be more buyer demand than there is supply of properties available in many of the property markets around Australia. When you add in the very real possibility that interest rates might be heading down at some stage next year you don’t need to be Einstein to work out that market conditions are looking promising for property buyers.

For anyone who purchased a sound and well-located property prior to the pandemic they are probably sitting pretty when it comes to capital growth given that property prices continue to be significantly above the level that they were back then.

Now this likely means that they may have significant equity that can help increase  

their portfolio and their future financial positions. Millennials and Gen X’s aged in their  

mid-30s and 40s who may have been homeowners for a few years now are the prime candidates to make their equity work harder for them. That’s you.

And that’s because they are likely in the prime income earning period of their lives also plus they also have plenty of time in front of them to let the magic of compounding capital growth happen. 

Unfortunately many property buyers stayed on the sidelines this year because of those alarmist  predictions that never came to pass yet again.  

Property prices have been moving upward in many locations so it’s vital that anyone considering a property purchase doesn’t find themselves looking back with regret when they had the opportunity to buy and that means do something now.

For property investors on a tight budget there are still pockets that offer prime opportunities to purchase an affordable property with good long-term prospects around the nation. In many parts of Australia especially our biggest capital cities it’s extremely difficult to find a property priced under $550,000 or $600,000 but there are suburbs where affordable homes are still available.

Now as buyer’s agents we’re currently working with a range of clients for whom budget and reasonable cash flow are pretty big considerations.

The cost-of-living crunch and the burden of high interest rates has forced many prospective purchasers to tighten their belts and those active in the  market face really strong competition. Though with a lack of supply like I said before and  a rapidly growing pool of buyers.

Now finding investment grade stock is not impossible. It’s pretty tough at the moment and it’s vital that investors do the required amount of due diligence and engage the services of a qualified buying experts to help them. Now we are looking forward of course to helping all of our dear clients start or expand their property investment portfolios  in a myriad of locations around the next year.  

So happy Christmas everyone have a really great and healthy start to 2024 and I will see you all again soon. Don’t forget to like and subscribe. Give me that as a Christmas present.

Bye

This week, we start to present a balanced view of the property market.

Over the next few weeks, we’re going to feature a range of respected property professionals and proven industry commentators from Bricks and Mortar Media’s annual property market forecast report that’s just been released.

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Help us to continue to bring you the best guests every week.

Join the conversation too anytime on Facebook at the Property Hub Collective.

We’ll be back in just a moments Bushy kicks off this week’s show with Nicola McDougall.

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Realty Talk and your host, Bushy Martin.

Now that we’re all back in the cut and thrust of the year, when sadly, the news is often filled with sensationalist fear and greed driven click bait headlines about property, we thought an opportunity to share some more balanced views from a range of respected property professionals and proven industry commentators and on what’s actually likely to happen in the wonderful world of property this year.

And there’s no better place to get the good oil than Bricks and Mortar Media’s or BMM’s annual property market forecast report, which has actually got a proven track record of capturing reliable predictions from industry leaders that consistently prove to be on the money.

So to kick off our BMM expert expose and to whet your appetite on what’s in store for twenty four, we’re joined by show favourite and friend, Nicola McDougall, the director of Bricks and Mortar Media who wears many property hats, including her pivotal progressive role as the chair of the Property Investment Professional Australia, or PIPA.

So welcome back to the show, Nicola.

Hey, Bushy. Thanks for having me.

Happy New Year to you, my friend.

Yes. So same to you. I’m pretty excited about the year ahead in property.

And I actually love the fact that, every everyone gets on the band wagon at this time of the year and comes with all sorts of rubbish around property.

But, as you and I know that they’ve been in it for long enough, if you’re doing the right thing in the right place at the right time, we’re always going to do do okay.

So so I guess to get into it, Nicola, there’s certainly no doubt that property surprised many of the mainstream punters on the upside last year.

So how did property perform against your expectations for twenty twenty three, and what, if anything, varied and why?

I think it’s interesting because our report that we put out every year, we’re generally doing the commentary or the forecasting late November, early December each year for it to, you know, for it to be released just before Christmas.

And so the previous year, I think there was a little bit of nervousness if we compared it to the twenty twenty two report.

There was a little bit of nervousness because we were in that sort of interest rate rising cycle.

However, I think the fundamentals were underlying even that sort of jitters that might have been out there, you know, over last year.

And what we saw clearly was even in a period where rates were getting hyped, you know, almost every month, we had that underlying very, very strong demand, coupled with really at that point, and undersupply of properties for sale, in most locations around the nation.

And then, and so what we saw was, you know, prices just continue to strengthen, throughout the year and, you know, recently hitting record highs again.

I think a lot of people, you know, get confused where they think that interest rates are the be all and end all of the property market.

And that’s been a common misconception for years.

And I would like to think last year would be the year that perhaps, blows that misconception apart, because we had, you know, record, you know, interest rate rises in a very short period of time, yet property prices continued to rise.

So, hopefully, that sort of kills that misnomer going forward.

So, yeah, at the end of last year, clearly well, I mean, we started to see a little bit of softness.

I think that that November interest rate rise was completely unnecessary, a bit of a brain fart by the RBA.

I think it’ll be proven.

It already probably has been proven that.

So there’s probably a little bit of nervousness started creeping back into the market, in some locations

towards the tail end of last year.

But geez, this year, it’s already a bit of a rip snorter.

Is that a new term?

The market’s being a bit of a ripsnorter, at this time of this year, because, as we’ll talk about later in our conversation, we have had, some data come out, which is really starting to show, the potential strength of markets this year.

Well let’s jump straight in there Nicola.

I’d love for you to now share your overall view on how property’s going to perform this year.

Look. I think, I would be very, surprised if we didn’t have an another strong very strong year.

It certainly has started that way.

You know, January’s notoriously quiet.

But from about after Australia Day weekend, we’ve started to see some very, very strong results come through auction clearance rates.

And certainly, on the ground, people are saying, you know, buyers, agents or people involved in, you know, in property, generally that, buyers are out in force and we’re just starting to see some of those strong sales results come through again.

One of the reasons for that, is that we have seen that moderation in inflation.

You know, I was, I’m very pleased to say that until the November rate result, I’d actually got everyone right, in the most recent cycle.

And that one blew my blew my, you know, great forecasting, out of the water.

And I certainly follow, you know, I’m not an economist, but I spend a lot of time looking at economic data and, you know, talking to people involved in the industry.

And I always felt, and there’s been a few commentators out there that I that, you know, I agree with them or, that they were saying that inflation was going moderate far more quickly than the reserve, had indicated.

And lo and behold, at the end of January, we saw not only the December, monthly results come through, but also the year to December results come through and inflation like that monthly result had a three in front of it.

Like, blow me down with a feather.

I actually thought that it might.

And if you think about December, seemingly everyone should be out spending lots of money because it’s Christmas.

No. So I think that really has lit a fire under markets, around the nation.

We had the first RBA decision, recently in February and, clearly, you know, they, they held that wasn’t a surprise.

But certainly depending on who you talk to, you know, we could be seeing a rate cut in the next few months, certainly by the second half of this year.

Yeah. It’s certainly hitting in the right direction.

And as you say, let let’s hope some lessons have been learned from the exercise on the way through.

But, sort of drilling down a little bit then, what are the key drivers that we need to be watching out for that are likely to influence property’s direction this year, do you think?

Well, definitely, that that’s number one. That’s number one.

I think we are starting to see, and I’ve certainly heard this from some property investment experts, in various locations around the nation.

It’s that investor activity.

As we know, through all of PIPA’s research, we saw, you know, huge volume of investors exit the market over, over recent years.

However, investment activity, investor activity, is increasing again, around the nation according to the ABS.

Right. Well, I think you and I have talked about this Bushy on the show while investors have been selling for a myriad of reasons.

And certainly in Victoria, the metrics for, you know, investment properties are very strong.

We have, you know, the potential for capital growth, this year, you know, going forward over the short to medium term.

But also we have those, you know, strong cash flow from those rising, rising rents that have to happen, fora bunch of for a bunch of reasons, but mainly because there’s just not enough supply out there.

And so rents are rising. But certainly in some locations we have had fairly benign rental growth in the ten years up until COVID.

So I really think, you know, obviously, owners, they are the ones that drive the market.

They are the majority of the market. Had increased thirteen percent in twelve months.

So even in that high interest rate environment and, first time buyers are back, investors are back, owner-occupiers are out there buying and spending money while they’re the three parts of the market.

And, so what what do we say when we, you know, put all those together very, very strong market conditions this year.

But investors as well, I think I was reading something actually the other day about, you know, Victoria’s results market is not actually that great.

And what are the reasons comparatively speaking, what are the reasons for that?

And potentially it is that exodus of investors from that market because of the plethora of rental reforms and other legislation, targeting investors in that market.

And while, you know, people might say, oh, well, you know, if you’re investors, what what harm can that make?

Well, it’s, you know, it’s thirty, thirty plus percent of the market that can make a big difference if investors are not transacting in a particular location.

And it certainly seems to me that investors, they have been exiting Victoria and they are not buying into Victoria in their normal volumes.

And that’s not good for the overall sales market, but it’s also very, very bad for its rental market.

One hundred percent. So given that sort of backdrop then, Nicole, what are some of the important areas and sectors, both good and bad, that we need to be watching out for this year?

Yeah. Look, Bushy, you know, you and I, we’ve been doing this for a long time.

I am very, very, disappointed and upset, that, you know, at the start of this year, the negative gearing genie is out of the bottle again, thanks to the Australian Greens.

Last year, clearly, you know, we were having to, lobby against the Greens, seemingly wanting rental freezes around the nation.

The Senate inquiry into the worsening rental crisis in Australia.

The final report, was quietly, uploaded to its website in December.

I actually found that report.

I actually broke that story because I was looking for it when I came back from Christmas holidays, and I realized that it just been uploaded very quietly, looked for media, looked for any press releases.

There wasn’t any.

And, one can only presume the reason recommendation is from the industry, from the inquiry chair, who is from the Australian Greens, were all about rental freezes.

You know. Let’s freeze rents for two years.

Let’s put rental caps.

You know, can then click blah blah.

Anyway, it was completely stolen from the Greens policies about these rental, you know, controls.

So no wonder they tried to bury it.

They didn’t, though.

And they didn’t win that battle, clearly.

And now, the Greens are advocating for changes to negative earing and to capital gains tax even though the Labour government has been very firm on this.

They lost the twenty nineteen federal election by taking changes to negative gearing and CGT, to that election.

So that would be very silly indeed, to think about, you know, reigniting or relooking at that policy.

And while, you know, it might be, a bit of a political football at the moment because of the changes to the stage three tax cuts, you know, a little bit of broken promises from the prime minister.

I would love to I would like to think and certainly believe that, you know, the federal government is not is not going to, be bullied by the Australian Greens in this regard.

But it just is really concerning to me that the Greens have adopted this really divisive, mindset with, you know, with their platforms.

I guess it’s because, you know, their original platform was climate change and that is wholly accepted by society now.

So perhaps they’re struggling to see, what the point of their party is.

And, they seem to have adopted, a mindset where it’s us versus them, and that is not good for anybody.

Certainly in an environment where we have a rental crisis and investors are the answer to addressing that crisis.

You don’t want the threat of any changes to long standing, taxation policies to impact the potential of investors either to retain their investment properties or to purchase investment properties because it will just prolong the rental crisis and drive rents even higher.

Yeah. I’d one hundred percent agree. I, I just, why the Greens have become ambulance chasers, really scares me.

That’s a good term.

Yeah. It’s a very scary concept.

I think you hit the nail on the head.

They’re looking for a reason for being, so they’ve got a great sensationalist, quite naive and ignorant, approaches to something where what they’re proposing is actually going make things worse, not better, because as you and I have spoken on a number of occasions over the years, investors are actually a big part of a solution to, housing wise, not the problem.

So, yeah, to continue bashing them, and and making statements that don’t even hold any weight just really scares me, actually.

And I’m just hopeful that, one, the policymakers and the politicians, can ignore that squeaky wheel, and the solid majority is still got the common sense.

But, stranger things have happened, and, once something gets momentum and and the mainstream media is looking for things to talk about, then it can take a life of its own.

So I think, you know, I’m hopeful that, the great work that you do at PIPA, and the other associations in conjunction with the voice and support from the Property Hub team here can actually balance that message and put it out there, to demonstrate that, we should be embracing investors, not not penalizing them.

So, so we’re I just had a thought they’re Bushy, which I just want to know whether I should say this or not, but I’m going to.

I just wonder if the Greens are actually their role is certainly in the media cycle now is waso nce the domain of Pauline Hanson and One Nation because she would say extreme things and and now it’s the Australian Greens isn’t it?

Really, if you think about it, for those of us who’ve been doing this for a long time and been, you know, around fo ra long time breathing ,that is actually this that is their role now.

They’re just like the twenty, twentyfirst century version of One Nation.So there you go. Yeah.

The lowest common denominator in ambulance chasing, like you say, and, all it’s doing is driving a wedge, in in our society.

And I noticed actually recently the change in language that they’re using in regards to to property ownership.

They’re talking about, renters becoming property owners.

So I think that that you they’ve obviously decided that they need to really make sure that they are seen as representing rich renters, but they’re bloody not because by demonizing investors, they’re driving investors out of the market.

They are preventing, you know, the normal flow of investment into the market, and that will mean that there’s fewer properties.

The rental crisis will be even more prolonged. Rents will be higher.

So these renters who have the aspirations to come first time buyers will struggle to save a deposit because of the higher rents. So they don’t represent renters.

They’re just representing themselves.

Absolutely spot on.

So we’re and I I know we’ve only just scratched the surface here, but, I I want people to read the comments in the BMM report because of some a great reading there. But if you were to sum things up, in a word, what one word do you think is best going describe and capture property conditions, for this year, Nicola?

One word for me, Bushy? What, what do you mean?

How does say, look, I’m going say fifty words before I cut one word that’s going to describe this year. Strong. Strong. Yes. I think that’s a really good choice.

Well, look, again, I’ve said it a number of times, but I really want to thank you for always sharing your insights, Nicola.

And thanks for taking the considerable time and effort to produce your expert and reliable annual BMM property market report, which we’ll, have a link to in the show notes for those who want to really dive into the details of Nicola’s commentary, along with a whole host of very highly respected property professionals from around the country.

But before we go, and while I’ve got the opportunity, Nicola, on behalf of the large and loyal Property Hub community, we just want to thank you for the very important and enormous role that you and PIPA continues to play in representing the solid majority of unsung hero investors.

And let’s hope that governments and policymakers are finally getting the message that you’re getting through to them last year that mum and dad investors are actually the solution hidden in plain sight to our housing woes and that they actually start to embrace them like friends rather than treating them like foes and villains in this complex and dynamic wonderful world that we call property.

So thanks again for your time in the show, Nicola.

Oh, thank you for that, Bushy. You know?

And and again, thank you for your support of, of PIPA and myself, professionally and personally too.

Thank you.

And we’re very much looking forward to doing more with you, this year, perhaps in October in Melbourne.

Again, so thank you again.

And I’m always we’re always so grateful of your support and the wonderful work that you do, for our sector as well.

Thank you, Nicola.

Let’s stay in touch, and, we’ll talk again soon.

Thanks, Bushy.

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Realty talk exclusive to the Property Hub.

Next in our continuing special series on the property market forecast for twentytwenty four, thanks to bricks and meter I can’t even say it right.

Thanks to Brick’s and Morter Media’s report.

We’ve got the real pleasure of catching up with Kate Hill, who’s an avid investor, an award winning author, and also the founder and driving force behind national property, buyers agency, Advisable.

So welcome back to Realty Talk, Kate.

It’s fabulous to be here and to talk with you.

Yeah. I always like having a chat.

I love the, level of detail that you go to in in all of your statements.

So you’re quantifying what you’re saying rather than some others that we hear from, other players in the industry.

So I I guess just to to set the scene, Kate, given, we always have interesting years in property.

But, from your perspective, how did, property form against your expectations last year, and what, if anything, varied and why?

Well,I don’t even know where to start.

To be honest with you, and this is going to sound a little arrogant, it’s not how I meant it or how I mean it, but it genuinely, things performed pretty much exactly as I expected them to, because you’ve I’ve been seeing the major supply shortage for a little while, as well as sort of various governments, let’s not call them initiatives, but, policies and what not that have scared a lot of investors off over the years.

So I feel like I’ve been screaming about a supply shortage for years.

The demand was going be huge as soon as we all got over the fact that COVID, you know, wasn’t the end of the universe.

So really in spite of interest rate rises, prices rose in most jurisdictions that I deal with, which is across Australia.

Yep. And, really, the factors that put that put pressure on those prices, have been pretty much, again, as I predicted, which is strong local demand, hundreds of thousands of new migrants.

Yeah. Billions of infrastructure spending in the right areas, and this undersupply of properties for a number of reasons.

So, yeah, it’s been a strong year as I expected. Yeah.

They’re great.

And, and, again, as a fellow contrarian, who focus on the fundamentals, not on some of the scare factors that, people like to focus on.

Yeah. I’m now interested in sort of pivoting into your future view given how consistently on the ball you you’ve been with in the previous report.

So what’s your overall view then on how property’s likely to form across the country, yeah, in the coming?

Right. Well, I would say, it’s going to be a fairly similar pattern that we have seen through the ages, Bushi.

You get these panic merchants, the media, who whip us all into a frenzy of uncertainty and fear just to get those clicks.

They have little facts to back up their stories.

It might just be somebody’s press release

Yep. Because they’re marketing something or another.

Yeah. And then really when the end of the world doesn’t happen because we do have all those growth drivers in place, people just start to calm down, and they kinda get on with this until the next frenzy, you know, somebody decides it’s time for us to panic about something else. And really, that’s what we’ve seen.

I think that’s going to continue.

Like I said, our area of speciality is Australia.

We’re licensed in multiple states.

Yep. We are buying all over the place, and because we customize each property purchase for every single client.

So it just depends on, you know, what portfolio they’ve got.

So Yes. We’ve seen that frenzy in in Perth, in Adelaide because they are the most affordable options for investors, and they give great yields in this very high interest environment.

I really don’t see a lot of that changing anytime soon. Yep. Like I said, strong demand, all these new migrants.

There’s still those, like you just said, those fundamentals in place in a lot of those good areas.

And we will continue to have an undersupply of property because they are not building enough and the demand is huge.

So that is Yeah, I think the property yeah.

Given that, there’s a a better than even chance that the rates may actually start coming down again in conjunction with what we’re seeing on the the mortgage broking front.

And that is that a number of lenders now who aren’t writing the business they’re used to are starting to soften some of their lending points.

Yes. And that combination is likely to boost buying capacity, which is going to put further demand pressure from the properties available.

So everything’s certainly pointing to a a pretty strong year ahead.

You mentioned some of the key drivers that we need to be looking for.

Are there any others that you see influencing property conditions that we need to be aware of?

Really, I think we can drive that down into sort of specifics in terms of area, if you like.

Yeah. Some of those are sort of important – the sort of good and bad, if we can call it that – sectors.

I think Victoria generally is going to be an interesting one to watch.

I’ve actually just done, a YouTube video on that – see if I can send to everyone out there.

So as I’m sure a lot of people know, the Labor state government there have made conditions for investors and second home owners quite prohibitive.

Yeah. A lot of investors have either sold out of the market or really are no longer interested in owning an investment property there.

Yep. This contributes to critical undersupply of housing, which the government just does not ever seem to understand.

I just don’t get it, because they’re certainly not supplying enough housing for that demand themselves.

Right? So rents and they’re penalizing their very people who can add the supply by upping land tax and making them costly.

The whole tenancy legislation is getting tougher and harder.

Compliance conditions on property are getting more onerous, more expensive, but it couldn’t make it much harder in Victoria.

It really well, they probably could, but let’s hope they don’t.

But it, and I I’m not saying that, you know, that of course, tenants should have rights, and they need to live in safe properties, and all that stuff is important.

But, you know, I think because of all of that, that rents are just going to keep going up.

Yeah. Their policies will always hurt the people that they say that they want to help.

But at the end of the day, it’s really just it’s politics.

Rather than actually trying to solve a real problem, they need to be seen to be doing something.

They know who their electorate is.

It doesn’t solve the problem.

Yeah. Shut me up. I’ll shut up. And right. You know, but it should I just think there’ll continue to be a really good demand for housing in Victoria.

That hasn’t that hasn’t changed.

People are still moving there.

People still need somewhere to live.

Yep. It’s just that demand for investment properties is just not probably going to come from interstate or probably with from within Victoria now either because of that second home you know, the investor second home land tax.

Yes. Exactly. Yeah. So rents are just going to keep going up, because there aren’t enough rental properties.

So and I have property in Victoria, and I’m seeing it happening firsthand.

So yeah. I think there’s also an opportunity there for people who like you know, I I realize it’s challenging to kind of think and be counter-cyclical, but, you know, don’t feel the need to follow a herd.

Look at the opportunities there.

So and sort of on that note as well, I would say really watch out for that frenzy that I have witnessed – I’m still witnessing in Perth.

Yeah. To some extent in Adelaide as well, but really inferior properties being bought by alleged experts and professionals that, in my opinion, really just won’t stand the test of time.

Really do your due diligence over there.

It’s – and I know this is controversial – but perhaps even a time to think about not buying in Perth, you know – go elsewhere.

There are real opportunities.

If I can tell a quick story, there was a property that I looked at quite recently where the one literally next door sold, I think, in October for sixty or seventy thousand dollars less than they’re asking for the next-door identical property now.

Now that is a lot of money in Perth.

It’s a lot of money anyway, but it you have to think about how that value can be sustained in that area once this all dies down, which it will. Certainly, when It will.

Hot spot hits the hits the headlines, then a bit of self-perpetuating market to some degree. It does.

And so am I reading this right that you’re probably seeing that the both WA, and to a certain degree Adelaide, has probably, hit the crest of a wave, but it’s like with the plateau, or other, from here.

I sit would that be your rate?

I’d say less so just because it’s just much more of a steady, stable performer.

Perth has a real history of being quite volatile.

It is I know not everybody works in mining.

I appreciate that. But at the end of the day, it is very dependent and reliant on that mining industry for the economy regardless of what everybody says.

So when that sector is affected, Perth prices do drop.

They don’t kind of crash often, but they do can drop quite significantly.

Yeah. Developers start going in.

There can be an oversupply.

Your rents drop by a hundred and fifty, two hundred dollars a week.

So you’ve now paid at the top of the peak for a property that could be potentially in an inferior location.

Sure. You’re getting six hundred a week rent for now, but in two years’ time, how are you going to be when it’s an older property.

You’re not going to have any depreciation, inferior location, and your rent drops by two hundred dollars a week.

Don’t put yourself in that situation.

Adelaide is different.

It’s a much more steady, as I’m sure you know, a much more steady performer.

It doesn’t have that same market volatility.

It’s not the same roller coaster ride. And we haven’t had the same sudden boom that we have in Perth.

It’s always been affordable, and, of course, the reasons why those markets are, and have been, so popular is because of everybody’s buying capacity going down.

So everyone’s, you know, been driving portability.

Absolutely. Those supermarkets. Right? And there’s awesome yields, higher interest rates.

Of course, you know, it’s a recipe for befriending, which is what we’ve seen.

But Adelaide is different and continues to have really good steady growth drivers.

Yeah. And I’m not saying Perth won’t continue to grow over the next little while.

It’s just, please be careful.

I’m just urging caution.

No. Good point. So we’ve covered the, I guess, the bottom half of Australia.

Let’s talk about, yes. Southeast Queensland and other parts of the country.

What’s the reports around those?

Love it. Still love it. Really, again, similar to Adelaide, good steady performers, around the Sunshine Coast.

Again, an opportunity if you do have more money to spend, a very stable market, hugely desirable, a lot of interstate migration that happens into that area, not just, you know, from overseas.

But it is that bit more expensive.

But it does have good yields, you know, for a more expensive market.

So love the Sunny Coast, you know, that whole Brisbane, like you said, that southeast, and back into Toowoomba.

Again, great diverse economy. Love those areas that have seen really good growth.

Don’t see that lessening anytime soon.

And once, as we said, you know, if interest rates come down a little bit, it will make those areas more affordable to those people who are just a little bit restricted by their borrowing capacity at the moment.

Hence good for all of that.

Other areas of Queensland or the regional or other markets around the country that are worthy of note?

Always. Like I said. So, Victoria, I’d be looking at your bigger regional centres, your Geelong’s, Ballarat’s, Bendigo’s.

Please don’t discount them.

They have awesome fundamentals.

Yeah. Where else?

Yeah. Very much Southeast Queensland, and Sydney, Melbourne, of course, you know, Brisbane itself for those who have the funds to do that.

But I realize at the moment that’s, like I say, it’s prohibitive because interest rates are so high and the yields are already low.

So, and who wants to lose that amount of money?

You need superior capital growth to make up for the, money it’s costing you to hold those properties.

 Yeah. Hundred percent.

We know year in, year out.

But it does lead me, if I may, quickly to another point, which is really, it leads into the increasing popularity of the apartment markets.

So which are a lot more affordable by nature. Right?

Smaller property. So I’d say sort of beware of just assuming, you know, that the larger properties are going to be more desirable in terms of housing, you know, or a big house, large land.

Overall, our family sizes are shrinking.

The government has studied this at length, you know?

They’ve made projections, so that you look for your smaller properties, like a smaller three-bedroom property, then are you’re hedging your bets a lot more then.

Just don’t assume it needs to be a four bedroom on six hundred square meters of land with, you know, all this stuff going on.

Yep. The three bed is a lot more desirable, a lot more in demand because of our, shrinking family unit.

You know, lone person households, I mean, it’s sad, but, you know, are the single biggest increasing demographic.

Yeah. It’s been cool.

It’s a very good one, actually, in that context.

 Yeah. No. I love that.

Are there any sort of surprising or wild card elements that are likely to come out of the box over the next twelve months that may influence property conditions as you said?

Oh, loo, maybe not that it hasn’t really already started that I am seeing.

Like I said, really, that apartment market, I think that that took people by surprise.

Yeah. Because we’ve had those enormous vacancy rates during COVID.

And we have those here in Sydney, particularly, we have those, you know, construction, let’s call them issues.

You know, it’s not had great press over the last few years in terms of major structural defects coming to light in a lot of our newer apartment blocks.

But they continue to be, like I say, an asset class and a property type in demand.

So and I think that has taken people by surprise because people haven’t really followed how our demographics have shifted during and after COVID.

So, yeah, I would say, again, watch for the smaller property type becoming more and more in demand.

So that’s a good one.

The old crusty chestnut of, negative gearing is starting to get some media exposure given the modification of the tax regime in recent times.

What’s your read on what, if any, impact that is likely to have given The Greens like the yell it from the rooftops?

Well, they do.

But, you know, I’m sorry, but what clout do they have, really?

It’s just, you know, it doesn’t – how long have we got?

It’s a topic all by itself.

I know I think it just it continues to be news because it affects a lot of people. And I think that’s what people have to just keep in mind why these things, keep cropping up in the media.

Yep. Again, it’s just not going to solve the problem, them doing anything about it.

Every time they’ve tried to change it, there’s been the most enormous backlash.

 Yep. With good reason. And good luck supplying Australia’s housing.

 You and I think they know that.

They know that. But they have to be seen to be considering it, you know, for a certain part of the electorate.

But, yeah, I do. Yeah. Let let’s hope common sense recognizes that property investors have a solution to the housing woes, not the not the problem.

Mmm. So they should start re-incentivizing and not penalizing them, as we’ve seen in recent times.

 Yes. I’m looking forward to the day that, the policy makers and politicians get smart enough to recognize that, investors are actually their best friends when it comes to solving the housing issue.

But yes. Maybe I’m overall I’m not missing.

We live in hope.

I know. We do. But, look, as always, I feel like we’ve only just scratched the service.

And there’s a lot further that we can talk about, and we will get you back on the show, to deep dive on some of these areas that you’re, pretty active in, which I think would be, you know, a great service to people who are really seriously considering getting the right type of property in the right location for the right reasons.

So do I but the I guess bringing it all to a head into something up-to-date, if you’re looking for one word that described and captured what property conditions are likely to be like this year, what would that word be for you?

I’m going to be horribly boring and say stable.

And, really, I don’t mean standing still.

I mean steadily stable, and steadily rising.

But that was two words, so I couldn’t use that, right?

I had to come up with one word.

You know, it’s I think all good areas with those fundamentals and, if you buy the right property type, they will continue to grow.

As we’ve said, if interest rates fall a little bit, I think we’ll start to see more listings come on the market, which gives sellers the, the confidence to put their properties on the market because they often then if they’re selling, they’re often buying again.

They don’t want to join this frenzy either.

And I think it might even things down a little bit, like I said earlier on, in terms of Perth and Adelaide, because the more expensive those market get, it obviously brings them more in line with the rest of the country.

It makes them less affordable.

So when people have that little bit more borrowing capacity, it makes their cashflows a little bit more appealing.

They will start to consider all these other areas that are that are great.

So I think we’ll just see kind of consistent, steady growth.

And there’s always the potential for a little bit of an oomph, of course, when interest rates drop, but I think, it will bring more listings on the market as well.

Hopefully. I totally agree.

And I think, you and I have been in the game for a long time, and I think the pleasing thing for me is that, you know, I think it’s taken us two or three years to shake off the post-pandemic impacts.

I think we’re actually finally getting close to the, you know, the normal are at the moment, but I think we are getting back toa a point where locations in an ad hoc, out of sync basis are going through their own cycles, independent of others, which creates, you know, plenty of opportunity if you know what you’re looking for and you’ve got the right team behind you to find and negotiate that.

So I think, it reinforces to me that while good opportunities are going to be probably harder to find, to some degree, if you’ve got the right people doing the research and validating the exercise, then it’s still a a great opportunity to take advantage of.

So, look, as always, Kate, I want to thank you for sharing these great insights with us.

And it’s clear from your forecast in the BMM 2024 property market report that there are still some affordable property locations that can.

 Yeah. Across the country.

But as you’ve made the point very well, buyers will face increasingly stiff competition as listings probably remain low even though there might be a few more.

And, yes, demand – demand is definitely going to remain high.

So ignore the main stream media sentiment picture, and it’s always a a great time to be investing in property if you know what you’re looking for, where to, and most importantly, have the right independent professionals helping you.

So, thanks for all your help on that, Kate.

A pleasure. Been lovely talking to you.

Thanks, Kate.

Now, for those listening in, who want to read the full story, on Kate’s, thoughts and want to get their hands on a copy of the BMM 2024 market report that includes forecasts from a whole host of leading property professionals around the country, just click on the link in the show notes.

And if you want to take the, conversation further and keep that going, join us on the Property Hub Collective Facebook community, again, by just clicking on the link below.

So, keep watching for more here on the Property Hub.

Hi. Just before we go back to the show, I want to spend a few seconds and tell you about a book that was sent to me that’s now become my go-to reference when I’m looking for inspiration about property investment.

You know, sometimes it’s not about knowing all the answers.

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It stays out as a reference.

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It’s very frank, it’s to the point, and, as you can see here, I’ve needed to bookmark several points.

And I can tell you that it’s a constant companion on my desk here.

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The website there for you again, getrare.com.au.

So get this book.

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This is Realty Talk, powered by realty.com.au.

And that brings us to the end of this week’s show.

Make sure that you don’t miss a single episode of Realty Talk or Bushy’s Get Invested podcast delivered to you each week, and you can do that by subscribing to the Property Hub now on your favourite podcast player or wherever you are listening to, or watching this show.

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Thanks to our supporters and content partners realty.com.au, Tax Depreciation, Know How Property Finance, Get Red Property and Appear Marketing.

I’m Kevin Turner and on behalf of Bushy and the Property Hub team, we look forward to seeing you again next week.

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