When it comes to partners, horses, and football teams, past performance is often used as a guide to predict future performance. Many experts assure us that it’s the same with the property market, but this leads to a huge contradiction in exactly how past performance predicts the future. Only buy in areas that have experienced…
Articles by John Lindeman
John Lindeman has well over a decade of experience researching the nature and dynamics of various types of assets at major data analysts and is a leading property market researcher, author and commentator. For more information visit Lindeman Reports.
Many locations in Australia are heading for the biggest property market boom in a generation. Did you know that we have only ever experienced six housing market booms since our nation began? They are shown on this graph, and they were all generational property market booms, caused when each new generation decided to buy their…
Asking rents are rising almost everywhere because there are not enough vacant rental properties to meet the demand. Property investors create rental supply, but rather than being rewarded, they are discouraged by falling prices, low rental yields and ever-increasing restrictions on landlord rights. Why on earth would anyone invest in residential property when the rental…
The median sale price is one of the most common methods used by investors to track property values and assess their changes over time. But today I’d like to explain why it can often be a misleading measure. According to data providers Australian Property Monitors, one of the best-performing suburbs in Australia during 2015 was…
While driving to Burnie airport, we suddenly found ourselves caught in one of those fierce storms that occasionally lash the northwest of Tasmania. The main road was blocked by fallen trees but because our plane was departing in an hour, we decided to try a lesser-used road to find a way through. In the middle…
Investor confidence was battered last year with eight consecutive rate rises, but will this year be any better for our property markets? In all the current uncertainty, it’s good to know that there are some property market indicators that point the way forward and help us time those critical turning points. To demonstrate how they…
During the COVID-19 pandemic years, our government battled to keep the economy in growth despite lockdowns and border closures by creating massive amounts of new money. We are now experiencing the legacy of this strategy in the form of higher interest rates, inflation and rising housing prices. At the onset of the pandemic, most economists…
The unique feature of Ponzi schemes is that they use money collected from new investors to pay out existing investors. This means that when the number of new investors starts to fall, they can suddenly crash. But be warned – they exist in our housing markets. Property booms often start with a genuine rise in…
In the current air of uncertainty, we know that some localities should be avoided, while most others will still deliver rental income and price growth over time. The best results, however, will only be secured by investors who know which suburbs will deliver the strongest cash flow or highest imminent growth. The issue for investors…
Faced with the prospect of little price growth on the horizon, property investors are starting to see innovative get-rich-quick schemes being promoted which offer huge returns. It has always been true that if the property market can’t generate a return for investors from market-driven growth, then investors can make some growth themselves. We have traditionally…