There are so many predictions about what’s going to lead to property price growth in the future.
Today with Pete Wargent, I’m going to explain to you a demographic tsunami that’s going to change our property markets, and one that you really must understand if you want to own the sort of property that’s going to outperform in the future.
I’m also going to discuss the 7 signs of a shonky property guru.
This came from a game I played over the weekend.
Listen in to find out more.
Then in my mindset moment, I’ll explain why being rich is a choice.
Yes you have a choice.
If you want to, you can become rich, and I’ll explain how.
This demographic Tsunami will change our property markets
There’s no shortage of housing forecasts at present, and many of them are a bit scary.
And what this means is that many investors are making decisions based on the media instead of the fundamentals.
But there’s one big driver, a veritable tsunami that the property pessimists seem to have forgotten.
It’s not our economic growth and it’s not jobs growth, it’s a demographic tsunami that’s going to hit us according to Pete Wargent.
- Sydney, Melbourne, and Southeast Queensland take up the big chunk of the population growth, about 400,000 per annum
- Because Australia’s visa programs are tilted to the under-30s, there’s an enormous surge of people in the 25-34-year-old age bracket, the typical first homebuyer age
- Population growth is important, but so is household formation
- Many first homebuyers will initially live in apartments
- Younger people are congregating in the inner suburbs, especially Sydney and Melbourne
- Younger people want to live in modern accommodation that is close to amenities and lifestyle, but not in high-rise towers
- Owner-occupiers drive the market and investors create the booms in-between
- Australia’s population is headed toward about 30 million over the next decade up from 25 million
- Trends that are going to drive property values up over the next decade:
- Close to amenities
- Municipalities where gentrification is occurring
- Easy access to public transport
- The rise of electric vehicles
- Melbourne will overtake Sydney in population over the next decade
7 Signs of a shonky property guru
- They tend to brag about their achievements and talk themselves up
- They claim their “secret techniques” can work for anyone
- They don’t warn you about the risks or the possibility of failure
- They say you can get involved in property with little or no money
- Their testimonials sound too good to be true
- They pretend to be mentor when their aim is to sell you property
- They suggest you can amass a large number of properties in a short period of time
Links and Resources:
Metropole’s Strategic Property Plan – to help both beginning and experienced investors
Some of our favourite quotes from the show:
“In the middle is where a lot of people are going to want to live.” –Michael Yardney
“Over the years I’ve learned that becoming rich starts with something as simple as the thoughts that you put in your head.” –Michael Yardney
“The minute a guru starts mentioning how successful they are, how wealthy they are, how happy they are, my alarm bells tend to go off.” –Michael Yardney
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