Jun 30, 2021
The Australian housing market is going gangbusters and all the
signs are the boom is here to stay for some time.
But how do you profit from this current growth cycle?
In today’s podcast, I discuss 6 property trends that you’re
going to see – and hopefully take advantage of – in 2021.
Then, in the second half of the podcast, I chat with property
researcher John Lindeman, who will teach us how to profit from this
stage of the growth cycle, because if history repeats itself, lots
of investors will unfortunately lose money instead of
My aim is to ensure that at the end of this episode you’ll have
more direction and certainty to take advantage of our property
markets over the coming year.
6 Property Trends to Look for in 2021
- Demand from Homebuyers Will Remain Strong: People have saved
money, borrowing costs are lower than they’ve ever been, and
interest rates won’t rise for a while. Plus, COVID is under
control. These factors will inspire more people to buy and FOMO
will continue to drive homebuyers into the market.
- Investors Will Eventually Squeeze Out Homebuyers: Increased
competition and rising property values will edge out first-time
homebuyers as more investors get into the market.
- Property Prices Will Continue to Increase: Consumer confidence,
low interest rates, economic growth, and a favorable supply and
demand ratio will all help drive property values. However, some
segments of the market will continue to struggle.
- Buyers Will Pay a Premium for the Right Neighborhood: People
want 20-minute neighborhoods, with the ability to live, work, and
play all within a short distance of each other. And buyers will be
willing to pay more to get that.
- Expensive Properties will Outperform: Higher-end properties are
leading the way in growth.
- Upgrading Will Be Common in 2021: After lockdown, small
apartments will seem to confine, and people who a deposit by not
traveling or spending much on entertainment during the quarantine
will be eager to upgrade to a bigger and better place, especially
given the ease of borrowing money.
How to profit from this growth cycle
Profiting from this growth cycle isn’t as easy as it seems.
Property researcher John Lindeman reminds us of Warren Buffet’s
famous two rules that all investors must follow if they want to
ensure their success.
The first rule is never to lose money and the second rule is
never to forget the first rule.
But if history repeats itself, some investors will lose money
even though overall our property markets are booming, Today, John
Lindeman and I discuss the things you need to know in order to
profit instead of losing money.
Subjects John Lindeman and I discussed today:
- Investors need to make sure they’re buying in markets where the
growth is yet to come.
- You can’t measure growth by the length of time that price
growth has been occurring or the amount of growth that has taken
- Growth is revealed by the types of buyers creating the
- First home buyers, upgraders, downsizers, and investors have
different motives and limits when it comes to buying property
- If we know which group is doing most of the buying, we can
estimate when the growth is likely to end
- Investors are motivated by profit.
- Owner-occupiers are motivated by affordability
- In the current market, most buyer demand is being generated by
owner-occupiers, not investors
- Investors can take advantage by buying property in areas that
have not yet experienced growth but have the potential to.
- As first-time homebuyers reach affordability ceilings are
reached and their growth slows down, growth will ripple to more
affluent areas as upgraders take advantage of the market.
- So far, not much of this has happened yet.
- However, this means that suburbs in desirable locations are
likely to be next to rise
- In general, it’s better to be in an area that’s going to be
- You also want an area that’s in continuous demand.
- Capital growth has been stronger in the CBD and flattened out
the further away you get from the CBD.
- It was predicted that a lot of people would move to the country
post-lockdown, but that hasn’t panned out.
- Once the pandemic and the lockdowns passed, people realized
they didn’t really want to relocate to the country and away from
their work, family, and friends.
- Many banks, economists, and other analysts get their forecasts
wrong last year.
- They looked at historical events like the Great Depression and
the Global Financial Crisis, saw those caused property markets to
slump, and assumed the pandemic would have a similar effect.
- That assumption was incorrect.
Get the team at Metropole to help build your
Click here and have a chat with us
John Lindeman –
Get our special bundle of eBooks and reports at www.PodcastBonus.com.au
Shownotes plus more here:
How to Profit from 6 Growth Trends in 2021, with John
Some of our favorite quotes from the show:
“If Coronavirus has taught us anything, it was the importance of
living in the right property in the right neighborhood.” – Michael
“Upgraders are now seeing the value of their home increase, and
a lot of people after COVID, “I deserve a change. I’m looking for
something different.”” – Michael Yardney
“You’ve really got to see property as a long-term investment.” –
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