While the rest of Melbourne’s property market is in the first stages of recovery and growth, the Melbourne CBD unit market continues to struggle. The Melbourne CBD unit market is the second largest in Australia, with over 28,000 units, but it’s also in trouble, with prices falling by 10% over the last five years. There’s…
One of the main drivers of housing demand has the power to radically alter housing prices and rents, yet like an elephant in the room, it’s being ignored by most analysts and researchers. The elephant is the movement of people from one State or Territory to another, which is called interstate migration. The biggest changes…
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…
Some property market analysts say that the absence of past performance indicates that an area is overdue for growth, while others assure us that strong past performance offers us the best prospects of continued growth. They can’t both be right, so I’ll explain what past performance actually tells us about the future. This table illustrates…
It’s nearly Melbourne Cup time, but there’s a race of much greater significance to property investors – it’s this year’s Housing Market Cup. You’ve studied the form, got some tips from mates at work and heard about a lucky few who really cleaned up, but will you be backing the winner of this year’s Housing…
The expanded First Home Guarantee Scheme (FHGS) is certain to increase first home buyer demand. The scheme will also cause a largely unanticipated property market boom in first home buyer suburbs. Aspiring first home buyers have to overcome two huge barriers. They must raise a deposit of at least twenty percent of the purchase price,…
Some data providers are claiming that data driven AI programs enable them to predict the future of property markets with great accuracy, but in my mind there are huge risks when it comes to using AI to make property predictions. AI works by copying human intelligence using algorithms that analyse large amounts of data, identify…
One of the most notorious land scams ever experienced in Australia took place on Russell Island, which is located in southern Moreton Bay and is just a short trip by ferry from the city centre. Even though it is technically part of Greater Brisbane, the island was largely uninhabited when some enterprising property developers bought…
The USA-led trade war turmoil is likely to cause a global economic slowdown and also precipitate falls in interest rates. I’ll explain how the Australian property market will benefit from both of these dynamics. The impact of high tariffs We are largely insulated from high tariffs because we produce almost everything we need. Our major…
One of the many myths that investors come across is that land has “intrinsic” value, which means that land must always be worth something. Let me explain why this concept is flawed… The notion that land has intrinsic value no matter where it is located is rooted deep in our past, beginning when we ceased…