Economy – Future Prospects

Navigating economic trends for ADF property investors

Understanding the economic outlook

For Australian Defence Force (ADF) property investors, understanding the economic outlook is essential to making smart investment decisions. As we write at the end of 2024, the Australian economy is at a crossroads. With a steady inflation – now under 3% – and unemployment rate of 4.1% here in Australia the future prospects for the Australian economy are promising.

However, factor in global uncertainties and the outlook looks slightly less auspicious. In this post, we’ll examine the relevant global and Australian economy and what the future prospects mean for your property investment strategy.

At Capital Properties, we understand the unique challenges and opportunities faced by ADF members. As we approach the end of the year, it’s the perfect time to review your financial goals. Is your portfolio performing as you’d expected? Are you positioned for success in 2025 and beyond? And are you up to date with what’s happening with the economy and how that affects your future prospects?

If you’re not answering “100% yes” to these questions, then book in for your FREE Capital Properties Discovery Session and gain access to our Property Investment Tools & Apps and Pinnacle Support Program.

On the go? Here’s 30 seconds of take outs:

• Inflation is currently steady at under 3% & unemployment is low at 4.1%.
• Global economic growth is slowing, with risks from geopolitical tensions & policy changes in major economies like the US & China.
• Consumer confidence is improving as interest rate hikes pause, but borrowing costs are still high.
• Consumer Price Index (CPI = measure of inflation) is easing but rising Producer Price Index (PPI) signals ongoing cost pressures.
• Many Australian property markets retain a steady growth, particularly in regional and outer suburban areas. ADF investors can take advantage of: strong property prices, interest rate reductions & rental demand.
• Key trends to watch are sustainability in property, infrastructure development & population growth/migration.

Keep reading >>

Global influences on the Australian economy

The global economy has faced significant challenges over recent years. From the Covid 19 pandemic disruptions to geopolitical tensions – i.e. Russia vs Ukraine, war in the Middle East, and the return of Donald Trump to the Oval Office (which could potentially alter our relationship with China) – it’s all feeling rather tumultuous.

The latest World Economic Outlook from the  International Monetary Fund (IMF) shows that global economic growth is steady but slower than hoped, with risks leaning toward things getting worse. There’s a predicted slowdown in major economies like the US and China. So we’re likely to see the effects of inflationary pressures, central bank interventions, and fluctuating trade dynamics. However, because Australia is blessed with valuable natural resources, we benefit from the global demand for energy, minerals, and agricultural goods. This should be enough to ensure our economy remains resilient.

In the RBA Board September Monetary Policy meeting, when discussing the relationship between Australia’s monetary policy settings and global central banks they said “Members agreed that, while it was important to take account of economic developments abroad, it was not necessary for the cash rate target to evolve in line with policy rates in other economies, since Australian inflation was higher, the labour market stronger and monetary policy less restrictive than in many other advanced economies. The exchange rate could also adjust as interest rate differentials between Australia and other economies evolved.”

Australian economy – future prospects

According to the Australian Industry Group (AIG), economic growth is expected to be modest over the next two years. Gross domestic product (GDP) growth is likely to stay around 1.6%, potentially improving slightly to 1.8% in 2025. The AIG attribute a decline in business investment, housing investment and export growth to this stall of economic growth. They also emphasise that “one of the principal factors dragging on the Australian economy is inflation. Despite some recent improvements, it is proving stubbornly difficult to bring under control.”

We’ll take a closer look at where we’re at with inflation in the next section…

It does seem however that lower interest rates have finally started to boost consumer spending. In November 2024, the Westpac–Melbourne Institute Survey of Consumer Sentiment Index (which measures changes in the level of consumer confidence in economic activity) showed that consumer confidence reached its highest level in 2.5 years. This was mostly because households were reassured that interest rates wouldn’t rise further. Although, to be fair, overall confidence is still relatively low and many households are still struggling.

According to recent Australian Prudential Regulation Authority (APRA) data, around 35,000 Australian households are unable to repay their mortgages. That represents approximately $23 billion in loans – a figure that’s doubled since 2016 – so it paints a grim picture.

What’s happening with inflation in Australia?

Consumer inflation – measured by the consumer price index (CPI) peaked at 7.8% per year in late 2022. Thanks to a slowing economy and 13 (almost consecutive) interest rate hikes, we’re now closer to the target 2-3%, sitting at 2.8%.  It is, of course the Reserve Bank of Australia (RBA)’s job to monitor inflation and we know they’re aiming for a steady target of 2-3%. And, if you’re sitting there wondering what inflation has got to do with property investment – have a quick read of our blog post “What is the relationship between inflation and interest rates?”.

But as well as monitoring CPI, we also need to take the Producer Price Index (PPI) into account. The PPI tracks business costs and unlike the CPI, it’s unfortunately rising again – now sitting at 4.8% per year. And we can’t blame global issues like supply chain problems and energy costs like we did in 2022. Inflation is now mainly caused by local issues. Prices for goods traded internationally are rising slowly at 1.5% per year, but non-tradable items like services, which are affected by wage increases, have much higher inflation at 5% per year.

The future prospects for inflation still look challenging. The Treasury predicts that inflation will stay above target for another year, and the RBA expects it could take two years. This means interest rates probably won’t drop as soon as many would like. And that means that borrowing will stay relatively expensive and living costs are likely to remain higher than we enjoyed pre-pandemic.

What the economy – future prospects mean for ADF property investors

As an ADF member, you’re in a unique and pretty privileged position. Your steady income and Defence Force housing entitlements offer remarkable financial security. And with the Capital Properties team in your corner, you can navigate changeable economic conditions with greater confidence. Despite all the uncertainties in the current and future economic landscape, we’ll help you look at the factors that might impact your property investment opportunities:

1. Property prices

Despite the economic turbulence in the last few years, the Australian property market is showing great resilience. Housing trends indicate steady growth in high-demand areas, particularly in regional and outer suburban locations. ADF personnel can take this advantage of this by staying up to date on housing trends. Our blog post “Australian housing trends” is a great place to start.

2. Interest rates

With inflation easing and interest rates stabilising, it’s predicted that we’ll see interest rate reductions in early to mid-2025. Lower rates could mean more affordable borrowing, allowing you to expand your property portfolio. And utilising government and Defence Force grants can get you there even sooner. Check out our blog post “Buying a house while in the defence force” for more details.

3. Rental demand

The rental market remains tight, with vacancy rates still maintaining historic lows. This trend is likely to continue for some time, providing strong rental yields for property investors. For ADF members, this can translate into additional income streams while posted elsewhere.

Trends to watch if you’re thinking of investing in property in 2025 (& beyond)

To stay ahead in the property game, it’s essential to keep abreast of what’s happening in the market. Here are several key trends we’ll be monitoring:

1. Sustainable property

In Australia, the Federal Government works with state and territory governments to develop cohesive regulations through the National Construction Code (NCC). That includes regulations around sustainability and energy efficiency. There are fundamental procedures that must be adhered to – such as the Deemed-to-Satisfy (DTS) elemental provisions for energy efficiency (Section 13 of the Housing Provisions). The good news is that getting on board with eco-friendly features in your investment property is very likely to increase property value and attract long-term tenants.

2. Infrastructure development

Keep an eye on areas that are, or will be, benefiting from infrastructure upgrades. Projects like new transport links or schools can significantly boost local property values. For example, the upcoming Western Sydney Airport has sparked interest in nearby areas like Badgerys Creek. New roads, business hubs, and residential developments are underway. Getting in early and investing in areas with projects like transport links or schools have the potential of strong capital growth.

Plus, thinking outside the box, for example investing in commercial spaces, can also pay dividends. Read our November 2024 blog post “Industrial warehouse office conversion” to hear about our experience with re-developing a commercial space.

3. Population growth and migration

Australia’s population is growing steadily. Driven largely by migration, which accounted for 81% of the country’s growth in 2023 according to the Australian Bureau of Statistics (ABS). Regional areas are also experiencing an influx, as migrants and locals alike explore opportunities outside major cities. This increases housing demand, opening up potential opportunities for property investors.​

Capital Properties: supporting ADF property investors

We know that a career in the ADF doesn’t always allow you the indulgence of time to keep up with what’s happening with the Global or Australian economy. And the knock-on effect on the property investment market. That’s why the expert team at Capital Properties are here to guide you. With years of experience working alongside ADF members, we understand your needs and goals. We’ll help you navigate the economic landscape so that you can build a secure future and achieve financial freedom.

Book your FREE Capital Properties Discovery Session and/ or follow up with the Switched-On Strategy Series now.

Note: This information is general advice only. Always do your own research and seek independent financial advice

What’s happening in the Australian construction industry?

Lets Review the Challenges facing Australian housing construction

We think it’s fair to say that nobody will be surprised to hear of the tumultuous couple of years we’ve experienced in the housing construction industry here in Australia. It seems like every few weeks we’re hearing of another construction company going under. And the stats show the sector is sadly still suffering the highest rate of insolvencies of any industry. The corporate watchdog Australian Securities & Investments Commission (ASIC), reported 2832 construction industry insolvency appointments in the 2024 financial year. A depressing 28% more than the previous year.

It’s why the Albanese Labor Government has focused on housing in the 2024–25 Budget with its promise to invest $90.6 million in the construction and housing sector. In this housing construction industry update, we’ll explore recent trends, challenges, and opportunities for investors, particularly those in the Australian Defence Force (ADF).

As property investment specialists, the team at Capital Properties know how vital it is to support the construction industry and educate investors on how to navigate this tricky market. It’s our job to make sure you know how take advantage of property investment opportunities to secure long-term financial future.

Book your Capital Properties Discovery Session to meet with our expert team and make sure you’re primed for investment opportunities. And remember, Capital Properties clients have access to our Property Investment Tools & Apps and Pinnacle Support Program.

On the go? Here’s 30 seconds of take outs:

• 2024 saw an increase in construction industry insolvency
• The government promised $90.6 million for the construction & housing sector in the 2024–25 Budget.
• Out of$258 billion worth of work in 2023, only $81 billion was in housing construction.
• Experts say that that 205,000 new homes per year are required but less than 175,000 new homes were built in 2023.
• Opportunities in the market:
  • Housing shortages means increased demand
  • Population growth
  • Net zero targets
• Issues facing the market:
  • Supply chain disruption
  • Higher material costs
  • Skilled labour shortages
  • Inflation and the cost of living
  • Lower housing approvals & net zero

Keep reading >>

Current housing construction situation

It might sound counterintuitive to hear that Australia’s overall construction industry is actually experiencing growth. The engineering sector, which focuses on building infrastructure for transport, energy, industrial, etc., has grown by 8.3% this year, and accounts for around half of all construction activity in Australia. However, home building isn’t following the same trend.  Out of $258 billion worth of work in 2023, only $81 billion was in housing construction.

This stalemate in housing construction, combined with other factors like increased population growth, has led to a significant shortage of rental accommodation which many are calling “the housing crisis”. Economists at the Housing Industry Association (HIA) have said that 205,000 new homes will be required each year to meet demand. With fewer than 175,000 new homes built in 2023, we’re falling well short of what’s required.

On the 8^th of May 2024, Julie Collins, the Minister for Housing, Homelessness and Small Business said: “Our Government knows that building more homes is the best way to address Australia’s housing challenges, which is why we have an ambitious national target to build 1.2 million homes.”

Issues and opportunities in Australian housing construction

So, let’s take a closer look at the current housing construction situation. Firstly, there are great opportunities for growth due to:

• Housing shortages = increased demand
• Population growth
• Net zero targets

But the industry is facing significant issues, including:

• Supply chain disruption
• Higher material costs
• Skilled labour shortages
• Inflation and the cost of living
• Lower housing approvals
• Net zero (yes, it’s an opportunity and an issue)!

We’ll examine each of these further below.

FACTORS DRIVING HOUSING CONSTRUCTION DEMAND

At the time of writing (October 2024) it’s projected that 167,000 new homes will have been built this year.  And the expectation is that it’ll average out to approximately 180,000 per year thereafter. This falls well short of the recommended 205,000 homes required to meet demand. Of course, this varies across different states and territories, but some states like Queensland are feeling it the most.

Source: https://www.amp.com.au/insights-hub/blog/investing/econosights-state-housing

Population growth

The Australian Bureau of Statistics (ABS) confirmed that Australia’s population reached a record 27 million earlier this year – and it shows no sign of slowing down. Almost 650,00 people arrived in Australia in the 12 months to March 2024. Australia’s population grew by 164,635 in the first 3 months of the year alone – 133,802 of those from overseas migration. This has led to a severe housing shortage, particularly in urban rental accommodations, driving rental prices higher and putting immense pressure on the housing market.

The ABS have predicted that overseas migration could continue to increase Australia’s population from 27 million in 2024 to somewhere between 34.3 and 45.9 million people by 2071.

Net zero targets

The Australian Government has developed an ‘Infrastructure Net Zero’ Initiative, working with government and industry stakeholders to create policies and encourage innovation to achieve the decarbonising of infrastructure. With support from organisations like the Australian Contractors Association and researchers from the University of New South Wales (UNSW), a national reference guide has been created to help move Australia towards its net zero target.

This innovation will of course come at a cost (estimated at $1.3m) to achieve new emissions targets, and specialist knowledge will be required. So, yes, this offers an opportunity for innovation and growth. But, in an already struggling industry these new challenges will be another obstacle to surmount.

AUSTRALIAN HOUSING CONSTRUCTION CHALLENGES

Supply chain disruption and higher material costs

The pandemic highlighted major issues with Australia’s construction supply chains. Customers were more understanding of the delays and shortages of critical materials in 2020, but the recovery isn’t happening as quickly as anyone would like. With global economies still reeling, the supply chain disruptions look set to continue for some time yet.

Materials like timber, steel, and concrete are still harder to come by, and higher shipping and production costs are continuing to drive up prices. The Hays Construction Industry Report Australia FY24/25 reported a 5.9% increase in overall construction prices in last year. These rising costs affect project timelines and budgets, making it difficult for developers to maintain a profit.

Skilled labour shortages

The Australian construction industry is facing a severe shortage of skilled workers. The above-mentioned Hays Construction Industry Report states that Australia will need 90k new construction workers – immediately – in order to meet the government’s housing targets. Build Australia puts the figure closer to 130,000​.

In the Feb 2024 ABS ‘Job Vacancies Survey’ construction businesses reported almost 280,000 job vacancies across the sector. That’s why the government announced a spend of $90.6 million in the 2024-2025 budget to increase the number of skilled construction workers. This includes a program for incentivised (or free) TAFE training and encouraging migration of skilled workers.

Interestingly the Irish Government had launched an expensive advertising campaign aimed at encouraging skilled labour to “build back home” to fill a shortfall of 50,000 jobs in Ireland. So, it will be interesting to see if our government’s plan to encourage migration of skilled workers will work.

Either way, these solutions certainly seem like long-term fixes to an immediate problem.

Inflation and the cost of living

Many Australian households are barely coping after 13 (almost) consecutive interest rate hikes in 15 months since May 2022. Rents are at an all-time high and essential items such as food, utilities and mortgage repayments have almost doubled in some cases. That means that people are more likely to stay in their existing homes, rather than risk applying for mortgages at higher rates. And many would-be homeowners have been priced out of the market.

Elevated borrowing costs also means that some developers have been cautiously awaiting more favourable interest rates before investing or re-investing.

Lower housing approvals

The combination of higher material costs, labour shortages and high interest rates result in less developers applying for new housing (dwellings). In fact, new dwelling approvals in Australia are at the lowest they’ve been for 12 years. For the year to June 2024 almost 163,000 houses and apartments were approved. That’s a drop of 8.5% on the previous year and the lowest we’ve seen since 2011-12.

Michael Bleby, Deputy Property Editor from Australian Financial Review (AFR) wrote in September 2024 that Labor’s hopes of building 1.2 million new homes in five years are fading fast. Master Builders Australia (MBA) estimates that only 1,033,962 new homes will be built over the five years to 2029, which is down more than 53,000 from the 1,087,325 total it predicted in April.

Outlook for Australian housing construction

In the Housing Industry Association (HIA) “Housing Australia’s Future 2024 Report”, they say: “this analysis has defined a range in which building activity will need to sit over the next thirty years. This is to account both for population growth and for the various factors defined throughout this report that influence housing demand. At an Australia-wide level, it is estimated to be between 190,000 and 275,000 new homes per year.”

The government is under pressure to relieve the current ‘housing crisis’ and the budget reflects this. With the Housing Australia Future Fund and the National Housing Accord they’ve allocated more than $9.5 billion to housing in this financial year. The good news is that economists predict this will start paying off. It’s predicted that there will be solid growth from 2026, with total building increasing to $130.4 billion – an increase of 9%.

Opportunities in the Australian housing market

To meet the escalating demand, the housing construction industry will need to invest in building innovation and sustainable practices as well as skilled labour. Builders are forced to offer more attractive workplace benefits, including competitive salaries along with training and development programmes that allow for career progression. This investment will pay off in the long term with more economical and efficient practices and better retention for skilled workers.

This housing construction industry update shows that changes are necessary to facilitate increased construction and they can’t come quick enough. Both state and territory governments are under pressure to streamline building approvals, and grants are available to encourage the adoption of innovative construction methods such eco-friendly buildings or prefabrication as well as investment in technology.

High rents and rental yields mean that many investors are taking advantage by putting money into new builds. The Australian Bureau of Statistics (ABS) show investor loans for new home construction increased by 7% before seasonal adjustment from June 2024 to $1.6 billion.

For ADF property investors, the changes in the housing construction industry presents challenges, but also opportunities. The team at Capital Properties are keeping a close eye on market trends and government initiatives aimed at boosting housing supply. It’s our mission to help you understand these dynamics so you can make informed decisions on when and where to invest to meet your long-term financial goals.

To make sure you’re perfectly poised to take advantage of any investment opportunities, we recommend that you book into our FREE Capital Properties Discovery Session and/or our Switched-On Strategy Series.

Note: This information is general advice only. Always do your own research and seek independent financial advice

Interest rates – will they drop or keep increasing? Or stay where they are?

What’s happening with interest rates?

Inflation and interest rates, and why it matters for property investors

In the Statement on Monetary Policy, released by the Reserve Bank of Australia (RBA) in August 2024, the consensus was that “Inflation is still too high because demand is still too strong.” And when inflation is high the RBA will continue to increase interest rates to slow the economy and consequently, lower inflation.

But why is this question “interest rates – will they drop or keep increasing?” so vital for property investors? It’s because interest rates are crucial in shaping our economic landscape and will most definitely influence property investment decisions.

In this blog post, the property investment experts at Capital Properties will examine the current interest rate environment, factors influencing rate changes, and make cautious predictions about what the future might hold.

If you’re an Australian Defence Force (ADF) member looking to invest your disposable income in property, understanding the trajectory of interest rates is essential for making informed choices. And at Capital Properties, our aim is to provide you with all the knowledge and tools you need to make the best investment decisions for your situation. Join us at one of our Discovery Sessions to see if you should consider investing this year.

The Capital Properties Property Investment Tools & Apps and Pinnacle Support Program are designed to keep you on the right track throughout your investment experience.

On the go? Here’s 30 seconds of take outs:

• “Inflation is still too high because demand is still too strong” – RBA, August 2024
• Since COVID, the RBA has adjused the cash rate to manage economic conditions & inflation pressures, keeping interest rates high to curb inflation.
• The factors that influence interest rate changes are:
• Inflationary pressures
• Global economy
• Economic growth
• Housing market
• Consumer spending
• Unemployment rate
• Household debt
• Short-term outlook for interest rates predicts stasis or another increase, with first cut made between November 2024 & May 2025.
• Long-term outlook is an interest rate decrease as inflationary pressures ease and economic growth stabilises.
• Lower interest rates make borrowing more affordable but is also likely to create more competition in the market.
• Strategies to consider in current interest rate climate:

– Re-evaluate investment strategies to benefit from rental income & capital growth.

– Stay informed of economic developments & interest rate forecasts.

– Consider locking in fixed rates.

– Consult with the experts at Capital Properties.

Keep reading >>

The current interest rate climate

Australia is experiencing a complex interest rate environment shaped by numerous economic factors. Since COVID, the RBA has been adjusting the cash rate in response to these vastly changed economic conditions and inflation pressures. All through 2024 the RBA has tried to curb inflation with a series of rate hikes. Which means that compared to the previous decade, current interest rates are relatively high.

In Australia right now, there’s still high demand for goods and services, which means inflation is likely to continue. And, although productivity growth is weak, wages growth remains high, so it seems like lower interest rates are a way off.

What’s causing interest rate changes?

There are a variety of factors that influence interest rate changes, such as consumer spending, unemployment rate, and household debt. But we’ll take a closer look at the most significant influencing factors below:

• Inflationary pressures: Inflation is still a significant concern for the RBA. The measure of consumer price inflation is the percentage change in the Consumer Price Index (CPI). Over the past 12 months to the June 2024 quarter, the CPI rose 3.8%. The RBA needs the CPI to return to the target range of 2 – 3% before they can lower interest rates​. We’ve explained all about inflation before in the blog post “US inflation peaked? What does that mean for Australia”.

Global economic conditions: Although Australia is lucky to have a plentiful supply of natural resources that keeps our economy buoyant, we’re still not immune to global economic trends. Changes in major economies like the United States (US) and China can impact Australia’s interest rate decisions.

• Economic growth: As demand for goods and services increases, the resulting strong economic growth can lead to higher interest rates which contribute to inflation.
• Housing market: The Australian housing market is a vital component of the economy. Factors such as housing supply shortages can influence inflation and, subsequently, interest rates.

Predictions for the future of interest rates in Australia

To answer the question about interest rates – will they drop or keep increasing?… we can’t gaze into a crystal ball, but we can make some educated guesses.

At the beginning of 2024, Australia’s inflation rate started at 4.1%. By March, it had dropped to 3.6% but went back up to 3.8% in June. In August, RBA Governor Michele Bullock denied any hope of an interest rate cut until the end of the year, or beginning of 2025. Their target, is of course, to be back to 2-3% inflation – ideally by December 2024.

Economists have plenty of different opinions on the future trajectory of interest rates in Australia. Some predict a gradual easing of rates in the coming years as the inflation pressures subside and economic conditions stabilise. However, there are just as many others who believe that rates will stay elevated if inflation continues to persist. At the time of writing (mid-September 2024) Australia’s cash rate is sitting at 4.35% – that’s a big shift from 0.1% in May 2022.

And the latest news out of the US, with the Federal Reserve slashing interest rates by a whopping 50 basis points has startled many economists. Though, as Capital.com senior financial market analyst Kyle Rodda says, the US and Australia are “fighting different battles” and there are “unique” factors that contribute to persistent inflation in Australia.

Short-term outlook for interest rates

In the short term, it seems that most experts concede that interest rates will stay relatively high as the RBA continues its efforts to control inflation. Some predict the next interest rate move could go up. Most major Australian banks predict the first cut will be between November this year and next May.

There’s no doubt that this provides a more challenging environment for ADF property investors who rely on borrowing to finance their purchases. But stalling might also prove to be a poor decision. In the long-run, we believe that time-in-the-market far outweighs the efforts to ‘time-the-market’.

Long-term outlook

Looking a little further ahead, there’s an expectation that interest rates should decrease as inflationary pressures ease and economic growth stabilises. These lower interest rates will make borrowing more affordable for property investors, but the knock-on effect is that it’s also likely to create more competition in the market.

The probable scenario is that rates will remain steady until mid-2025, then gradually decline. Looking at RBA predictions, it’s expected that interest rates should be around 3.8% by mid-2026.

Interest rate implications for ADF property investors

We talk to ADF members every day who are considering property investment and are used to getting asked the question about interest rates – will they drop or keep increasing? And while it’s important to know what’s going on with inflation and interest rates, there are challenges and opportunities in every market. High-interest rates will absolutely increase the cost of borrowing, which will impact affordability and even potential returns. However, because overall demand is less, and competition lowers, they can also lead to more attractive property prices.

As Capital Properties owner, Marcus Westnedge says: “The current high-interest rates have created an unusual situation in the property market. Normally, we’d expect higher rates to cool demand and stabilise prices, but instead, we’ve seen a drop in listings as homeowners hold off on selling. This reduced supply has kept property values steady despite shrinking borrowing capacities. If interest rates begin to fall sooner than expected, as recent signs suggest, borrowing power could rebound, fuelling demand and competition. ADF buyers should stay flexible and ready to seize opportunities as market confidence strengthens.”

Strategies to make the most of the current Property Market

1. Evaluate investment strategies: Re-assess your investment strategy. Consider the potential for rental income and capital growth in a high-rate environment. If you would like some help looking at this objectively, the team at Capital Properties are here to help.
2. Be prepared: Make sure you’re in the best possible position to take advantage of the opportunities that present themselves. That means working through our Capital Properties “Property Investment Planner” and “Knowing what you need to qualify for a home loan.”
3. Stay informed: Stay informed about economic developments and interest rate forecasts so you can make timely decisions that meet your financial goals. We keep our “News” section of our website updated regularly and you’ll be the first to receive updates if you join our mailing letter and follow us on the socials. Just click on the following links for X (previously twitter), LinkedIn or Facebook.
4. Potential to lock in fixed rates: Given the uncertainty surrounding interest rates, locking in fixed rates for mortgages can provide stability and protect against future rate hikes. We’ve discussed what to do if you’re coming off a fixed rate this year in the blog post “Loan coming off a fixed rate this year? How to prepare.”

Consult with experts: Seek advice from financial advisors and property experts who can provide insights tailored to your circumstances. Yes, that means us. You can call on 1300 653 352, or email us at [email protected]

Keeping up with the latest news on interest rates – whether they’ll drop or keep increasing is critical for property investors. At Capital Properties we work with ADF members to help you make informed investment decisions to acquire long-term financial freedom through property investment. Find out more by exploring our FREE Capital Properties Discovery Session  and the Switched-On Strategy Series.

Make the most out of the silly season and book your end/start-of-year review with the Capital Properties team

‘Tis the season to be jolly, and what better way to celebrate than by taking a moment to reflect on your property investment strategy with Capital Properties? As the year draws to an end and a new one about to begin, it’s the perfect time to evaluate your property investments, set new goals, and make any necessary adjustments so you can hit the ground running in 2024.

In this blog post, we invite you to join us for an end/start-of-year review to help secure your financial future for the years to come. So, grab a cold one and let’s explore why a property investment check-up is the best way to close out your year.

The Capital Properties team live and breathe property investment for ADF members, and it’s our mission to make sure we help you achieve your property investment goals to reach future financial security. Our FREE Capital Properties Discovery Session is a great place to start, and we have tools and strategies to help you every step of the way.

On the go? Here’s 30 seconds of take outs:

• Capital Properties clients use proven property investment strategies to weather the storms and make the most of the opportunities in the Australian Property Market.
• An end-of-year review will make sure you stay on the path to financial success. The review covers:
  • Lifestyle and financial goals
  • Assessment of current property portfolio
  • Optimisation of property investment strategy
  • New opportunities identified
  • Prep for tax season
• We’ll also cover latest property data, market analysis, research as well as your cash flow position and explore the options available to you, whether you’re ready to grow your portfolio, or make changes to get you closer to that point.
• Book your end-of-year review now so you can hit the ground running in 2024.

Keep reading >>

Looking back to look forward

Before we welcome in the new year, it’s only natural to look back at the past one and reflect on the successes and challenges we’ve faced. In 2023, Australian Defence Force (ADF) property investors encountered plenty of opportunities and challenges in the Australian property market. From the highs of unprecedented rental demand in some areas and attractive government initiatives, to the lows of building supply issues and soaring interest rates, we’ve had a hell of a ride.

Capital Properties clients have used our proven property investment strategies to weather the storms and stay ahead of the game with growing portfolios and strong capital growth across all their investments. And we want to see you continue to succeed in 2024 and beyond. That’s why we encourage you to take advantage of a Capital Properties end-of-year review and make sure you stay on the path to financial success.

Why an end-of year review?

The comprehensive Capital Properties end-of-year review will allow you to:

1. Review your lifestyle and financial goals

It’s easy to get busy and bogged down in the craziness of day-to-day life, especially if they involve training, exercises, and deployments. So, it’s important to speak to someone with an objective view to make sure you are still in line with your goals.

2. Assess your current property portfolio

Together we can analyse your current property investment(s), assess their performance, and make sure they still align with your financial and lifestyle objectives.

3. Optimise your property investment strategy

We’ll make sure you stay on track by working with you to optimise your property investment strategy to maximise returns and minimise risks.

4. Identify new opportunities

The Australian property market is constantly evolving. The Capital Properties experts will help you discover new opportunities that may be worth exploring in the coming year.

5. Prepare for tax season

According to the Australian Taxation Office (ATO), 9 out of 10 rental property investors make errors in their tax returns, especially when it comes to interest deductions. The Capital Properties team can help you ensure your investments are structured in a tax-efficient manner to avoid facing the wrath of the ATO when it comes to tax time.

What does the end/start-of year review cover?

As well as making sure you have a clear vision of your goals and the strategy you need to get you there, our end of year review will cover some essentials such as:

1. Latest property data and research

We’ll re-evaluate your investment property(s) cash flow position and comparative market analysis, including:

• RPdata suburb and statistics reports for each property
• Residex suburb reports
• The latest Forecast ID demographic reports
• Desktop and full valuations
• Rental manager feedback and reviews
• Vacancy rates

2. Strategy development

We’ll look at the options available to you, whether you’re ready to grow your portfolio, or make changes to get you closer to that point. Our finance team will confirm your new borrowing capacity and discuss the next steps. If it suits you better, we can do all, or most of this, over the phone. Your options might include:

• Option A. Capacity for a new purchase – If you’re in the position to explore your next property investment opportunity, we’ll help you get the ball rolling.
• Option B. Increasing capacity – If you’re not ready for your next investment just yet we’ll share tips that will increase your capacity and help you get closer to your goals.

Option C. Consolidation – We can help you work out if you should consolidate your finance, find better interest rates, and reduce your investment/personal debt.

What’s next?

We know that the unique demands of Defence life mean you don’t always have time to stay updated and make sure your investment(s) is working the hardest for you. We created the Pinnacle Support Program to make sure you’re supported the whole way through your property investment journey. And we believe the end of the year is the perfect time to evaluate your property investments and set the course for the year ahead.

It’s also a chance for us to say thank you for your continued trust in our team. Your support is greatly valued, and we look forward to celebrating your successes in the years to come.

Get in touch now to book your end-of-year review and make sure you’re still on track to reach your financial and lifestyle goals.

If you’ve got some time, you can check out our FREE Property Investor Tools and Apps and download a copy of our book, Property Investment SOP  – essential reading for all property investors and first home buyers.