Jul 20, 2020
What drives property price growth? Especially in this era of lower interest rates, lower inflation and lower capital growth in general?
If you want to one day live off the fruits of your property portfolio, you’ll need to own the sort of properties that grow at wealth producing rates of return that outperform the averages.
Today we’re going to have two different views on the subject.
First, Brett Warren is going to give his thoughts and views on the subject. Then, I’m going to have a chat with Pete Wargent, who says there are only three factors that drive property price growth.
These two guests are probably going to end up in much the same place, but after listening to both you’ll be much more informed about how to choose an investment-grade property.
Demographics is the key with Brett Warren
Demographics is a critical factor in both property prices and the economy.
Understanding the demographics can make the difference when it comes to choosing the right property.
Some of the most important factors to look for include:
We have to take a step back and assess the fundamentals because the fundamentals don’t change from week to week or month to month. If you can get those right, you can make the best investment decisions.
Don’t forget the 6-stranded approach. Look for:
3 Factors that drive Property Price Growth with Pete Wargent
3. Population Growth – Includes factors like immigration, natural population growth, and interstate migration.
Links and Resources:
Brett Warren - Metropole Property Strategists
Metropole’s Strategic Property Plan – to help both beginning and experienced investors
Pete Wargent’s new book Low Rates High Returns
Shownotes plus more here: Are there really only 3 factors that drive property price growth? With Brett Warren and Pete Wargent
Some of our favourite quotes from the show:
“We’re looking for areas where people can afford to, because they’ve got higher incomes, and they’re prepared to pay to live in those areas, because of the aspirational element of those suburbs.” – Michael Yardney
“There was a period of oversupply before, but now it’s the other way around. There’s actually the lowest level of listings available with new or established properties than there has been for a long time.” – Michael Yardney
“The government hasn’t spent all that money and all that effort to get us across, and then let us fall over a cliff.” – Michael Yardney
PLEASE LEAVE US A REVIEW
Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how