And we are back again on Weekend Property on TODAY chatting with Alison and David about the best performing properties in Australia!
So what are the boys covering in this segment?
✅ Are we going to continue to see this doom and gloom in the market?
✅ What are the locations that buyers should focus on?
✅ What are the three factors that are affecting the value of the location?
✅ Asset selection tips for each of the major cities across Australia
Tune in now to find out more!
Alison: Well, house price in Australia has now been falling for more than a year and many suspects that they will continue to go down.
David: Yeah, it’s such a challenging market it’s hard to know which type of property will perform best for now. We’re joined by Ben Kingsley and Bryce Holdaway all the way from The Property Couch Podcast. Guys, good to see you! It seems to be a bit of doom and gloom out there at the moment. Every time I pick up a paper, it’s a disaster. What are you guys thinking?
Ben: Yeah David, generally speaking, we are probably going to see some further declines in some market across Australia. We had a building boom so we now we got the reminisce of a bit of oversupply and we also got a credit squeeze going on as well which meant that demand side of the equation is also pressured. You know, I think 2019 is going to be a year where it really is about flight to quality and there are certain types of property that are going to perform better than others.
David: But as you said though, is that something that… is it the levelling out that we needed to have as a nation?
Ben: Yeah definitely in terms of it being a manufactured correction in terms of taking over the lending activities and in terms of scrutinising lending policy means that we don’t have the same sort of rush. That definitely affected the appetite for investors as they can’t borrow the money. That’s part of the manufactured correction that we see from the regulators.
Alison: Are there are any suburbs that are bucking the trend?
Bryce: Look, in terms of, helping people.. Because it’s an essential need right? So despite the fact that you’re reading the headlines and it’s saying that it’s really negative, we still need to put a roof over our head. So we like to help people to understand the bigger picture principals to buying property that will probably outperform and it usually comes down to three things. Economic activity, human interest and human behaviour.
So economic activity is just a fancy way of saying how am I going to get a job, is it easy to get to work in the morning, am I too far out, do I have a huge commute because that’s going to make a huge difference. Alternatively, if you’re in a mining town, you’ll get a job but you won’t have the other ones.
Human interest is, what am I going to do at the weekend when I’m not working? Is there a park, is there a cafe, can I meet up with my friends, is there any water nearby?
And the third of is human behaviour so that’s largely the status test. So what would people think of me if I live in this suburb? Do they think very highly of me or do they think I’m in a lower socio-economic area? Alternatively, in a gentrifying area. So if you overlay economic activity, human interest and human behaviour across the suburb in a market like what we’ve got now, it’ll help you make a decision into what suburb you’re looking at.
David: Alright let’s talk about the suburbs. What areas are best in each city? Take us through!
Ben: Yeah if we do a fly-around, I’ll start with Brisbane. Brisbane is a story of a river city. So in terms of being closer to the river and if you can get on the north side of the river, that’s probably where the job opportunities are. Then if we look at Sydney, it is a story of being close to the harbour and also the beaches. Obviously, you got bigger congestion as you get closer to the CBD but because of that, being close to a train line helping you get around the city a little bit easier. There are some of the drivers.
Bryce: Now in terms of Brisbane, there are similarities to Sydney but it doesn’t have the harbour or beach as a driver so it’s really how close can I get to the CBD. And that congestion is enormous so we got to make sure you’re buying in an area with a train line or access to a train line. Hobart, that’s all about views and being able to walk to the CBD because it’s such a lifestyle location.
Ben: Yeah terrific. And then we go to Adelaide. We are starting to see a bit of a theme here in terms of access to jobs, CBD, greater amenity but also the beach story there and it’s a bit of that also for Perth. Bit of rinse and repeat for Perth. We’re talking about the beautiful coastline there so we can be closer to the beach where there is a bit more scarcity in the land there. And then also, getting into the job centre so coming back towards the CBD. So the proximity pieces where you get all of those amenities together is what gonna drive those demand in those better areas.
Alison: Keeping in mind, the more the proximity to those things is also going to cost you more.
Ben: They do.
Alison: So how much can you afford is going to be an issue.
Bryce: Yes exactly! Some people can’t do more, can they?
Alison: Alright gentlemen, thanks for joining us this morning and thanks to those tips.
Boys: It’s a pleasure, thank you.
And there are heaps of other free resources on our website. We update them every week so make sure you check them out before you go. 🙂
Any questions or suggestions for new topics? Just send them in to [email protected] or fill in the form below and we’ll chat about it at our future Q&A episodes.