Hot spot suburbs and a FREE RPdata Report Offer

Informed property investment for Australian Defence Force members

Why you should you invest in hot spot suburbs

With the demanding nature of military life, Australian Defence Force (ADF) members often find it challenging to plan for long-term financial success by leveraging opportunities in the property market. At Capital Properties, we understand the unique challenges faced by ADF personnel because we’ve lived it! Our founder, Marcus Westnedge had a multi-million-dollar property investment portfolio by the time he left the navy, and he wants to make sure you get the same opportunities he did.

That’s why we’re excited to offer a valuable resource this month: a Free RPdata Report on hot spot suburbs. In this blog post we’ll explain the benefit of the RPdata report and how you can use it to make informed investment decisions.

Use this Free RPdata Report on hot spot suburbs to make a difference to your future financial security. Then follow it up with a Capital Properties Discovery Session so that our expert team can make sure you’re on the right track.

And don’t forget, all 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:

• Property investment offers substantial long-term benefits and relatively low risk.
• Hot spot suburb = a suburb experiencing significant increase in property value, with reliable rental yield & strong capital growth.
• This can be predicted by trends like new infrastructure developments, gentrification or improved lifestyle that create a demographic shift.
• RPdata = Rich Property data. The report contains comprehensive property data that’s been collected by CoreLogic over 40 years, including market trends, demographic stats, infrastructure developments, property values & features & rental yields.
• The RPdata Report helps you to identify high-growth areas, reduce risks, maximise rental income & plan your investment portfolio.

Keep reading >>

Why should you invest in property?

Before we get into the nitty gritty, let’s quickly make sure we’re on the same page about property investment. We think it’s still by far the best way to secure your financial future. Unlike other forms of investment, such as stocks or bonds, property investment offers substantial long-term benefits and relatively low risk. Here’s why:

1. Strong property market: The Australian property market has historically shown strong and steady growth, making it ideal for long-term investments.
2. ADF benefits: As an ADF member you can take advantage of several property buying incentives. We’ve covered many of these in the blog post “Buying a house while in the Defence Force”.
3. More income: Rental payments provide a regular income stream to supplement your salary.
4. Tax benefits: There are numerous tax deductions available for property investors, including those related to mortgage interest, property management fees, and depreciation.
5. Capital growth: The value of property tends to appreciate over time and can result in significant capital gains when it’s time to sell.

What does “hot spot suburb” mean?

A hot spot suburb is a suburb that’s experiencing, or is soon expected to experience, a significant increase in property value which can provide reliable rental yield and strong capital growth.

This could occur due to any number of reasons. For example:

• Infrastructure: Upcoming infrastructure projects that will make the area more attractive to buyers and renters. For example; improved transport links to the CBD, schools, shops, entertainment centres etc.
• Market trends: Trends such as gentrification of a suburb or the shift towards an improved lifestyle. We discussed this trend in the blog post “Lifestyle and the property making decision process”.
• Demographic shifts: An increase in the number of younger professionals with good income is usually an indicator of positive future growth.

Why it’s important to choose the right suburb

While property investment is generally a wise move, choosing the right location is crucial to finding your ideal tenants and reliable capital gains. This is where our Free RPdata Report comes into play. The report provides you with detailed insights into the hottest suburbs for property investment, helping you target areas with the most potential for high rental yields and quick capital growth.

What’s an RPdata report?

RPdata (Rich Property data) is a subscription product that Capital Properties accesses for comprehensive property data that’s been collected over 40 years by the property research company, CoreLogic. CoreLogic is known for delivering up-to-date and accurate insights and analysis of the Australian real estate market. The Capital Properties Free RPdata Report includes:

1. Market trends: Up-to-date information on current market trends and historical performance as well as predictions for future growth.
2. Demographic statistics: Data on the local population, including age, family structure, employment status and income levels.
3. Infrastructure developments: Information on planned and ongoing infrastructure projects that are likely to influence property values.
4. Property values and features: Historical data on property values as well as recent sales in specific suburbs. RPdata reports feature more than 600,000 sales transactions recorded annually.

Rental yields: Analysis of potential rental income in different suburbs.

How the free RPdata report can help ADF personnel

As an ADF member, we know that your career can involve frequent relocations and deployments, which makes taking the time to research property investment a daunting proposition. However, with the right tools and advice, you can make sound investment decisions no matter where you’re stationed.

The Capital Properties team work with Defence members every day and we know what it takes to be switched-on property investors. It’s our mission to support you to make informed investment decisions. Here’s how our Free RPdata Report can assist you:

1. Identify high-growth suburbs: The report highlights suburbs that are expected to experience significant growth. Investing in these areas at the start of the boom is a wise move, so getting early access to this data is a huge advantage.
2. Reduce risk: Mitigate risks by having a clear picture of what’s happening in the current property market and what’s predicted to happen in the future.
3. Maximise rental income: Ensure an ongoing income stream by investing in suburbs with high rental yields and reliable tenants.

Strategic planning: Whether you’re looking to buy your first property or expand your portfolio, the RPdata report will help you plan your investments strategically. And remember, the Capital Properties team will be able to walk through the report with you to make sure you feel confident in your property investment decision.

How to get your FREE RPdata report

Getting your hands on a Free RPdata Report is simple and will only take a second. Simply get in touch via the Contact page on the website (click the link here) and in the comments section type “FREE RPdata report” and one of our team will get in touch.

You can also email us at [email protected]. Alternatively, give us a buzz on 1300 653 352.

Whether you’re a seasoned investor or just starting out, this report will guide you towards the best investment opportunities in Australia’s hottest suburbs. So, if you’ve been waiting for a sign to get started, this is it! Get in touch now to grab the free RPdata Report.

Interest rates vs Australian property market

It’s not much of a stretch to conclude that if you’re reading this post, you’re a switched-on property investor, or on the way to becoming one. And you’ll no doubt be aware that the Reserve Bank of Australia (RBA) has just delivered its 12th rate hike since May last year, leaving many homeowners reeling. It’s estimated that the average Aussie borrower is now paying an additional $15,000 per year on their mortgage compared to 13 months ago. And some analysts predict that further interest hikes could continue in the coming months unless there’s a major downturn in inflation.

In this article, we’ll explore what the soaring interest rates means for the current Australian Property Market and what opportunities it may present. To do this, we’ll compare this time with challenges the market’s faced in the past.

Attending our free Capital Properties Discovery Session can help you discover when’s the best time for you to invest in the property market. We can make sure you’re ready so you can avoid any pitfalls, and help you take advantage of the opportunities that are out there.

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

• The RBA has just delivered its 12th rate hike since May 2022.
• Typical borrowers are paying $15,000 yearly more than 13 months ago.
• Do you see ‘opportunity is nowhere’? Or ‘opportunity is now here’?
• The 1991 recession caused multiple bankruptcies and soaring unemployment.
• The 2008 GFC saw property prices fall initially, but a quick recovery due to government stimulus packages.
• COVID-19 in 2020 saw growth in ‘lifestyle’ markets but the subsequent inflation caused current interest rate rises.
• There are opportunities with migration, ongoing demand for rental properties, inter-state travel & lifestyle drivers.

Keep reading >>

The difference is perspective

In our March 2020 blog post ‘OPPORTUNITYISNOWHERE’ we talked about how the COVID-19 pandemic saw an unprecedented economic down turn and how that immediately affected the Australian property market. The strong start in the first few months of 2020 didn’t last long, with sales falling dramatically, making many investors nervous. In that blog post we also said that it’s “important to remember is that this phase will pass, and we will eventually get through to the other side”.

While some investors sat and waited for the storm to pass, there were others, Capital Properties included, that had a different perspective. It would have been easy to join the crowds predicting disaster, but instead we saw the potential in the great interstate migrate and the big shift towards the ideal Australian lifestyle. As we’ve said before: “Some people will see ‘opportunity is nowhere’, others will see ‘opportunity is now here. The difference is perspective.”

Current market compared with previous downturns

st as we did in the previous ‘OPPORTUNITYISNOWHERE’ post, we’ll compare this current slump to previous downturns. Because it’s a timely reminder to keep the big picture in mind as we assess the outlook for the property market for the rest of this year and apply the lessons we’ve learned that have helped us navigate these tricky markets before.

1991 RECESSION

1991 recession drivers:

High rates of inflation

Inflation is the rise in overall prices of goods and services over time. We explain inflation in greater detail in this blog post (click here). The common effects of inflation are:

• Rising prices reducing the purchasing power of some consumers (usually low-income earners), distorting purchasing power of others (high-income earners) to encourage spending, causing more inflation.
• The cost of borrowing increases for new loans, but people with existing loans have the benefit of repaying these with inflated money.

Initial reduced unemployment turned to prolonged acceptance of higher inflation that sets off an spiral of price hikes and demand for pay increases, leading to increased unemployment.

High rate of account deficit

An account deficit happens when a country sends more money overseas than it receives from abroad. The largest component of an account deficit is usually a trade deficit, which means that a country buys more than it sells. If an account deficit remains on the books for a long time, it can mean future generations will be burdened with high debt levels and large interest payments.

1991 recession effects:

• Many businesses went bankrupt and some of the major banks almost went under.
• Unemployment rose from 5.8% to 11.2%

2008 GLOBAL FINANCIAL CRISIS

The global financial crisis (GFC) came about because of relaxed lending standards by the banks, which ultimately resulted in many US and European banks dissolve into bankruptcy.  Predictably, this caused the stock market to crash, and people could no longer access finance. This led to the greatest economic downturn in the US history since the 1930’s Great Depression. And ultimately the fallout created a global economic meltdown.

‘But you can’t borrow your way to a good time forever, and this recent example of a credit-fuelled boom was no exception’ – Luci Ellis. Head of Financial Stability Department. Reserve Bank of Australia.

2008 global financial crisis drivers:

• Human psychology: When times are good, perceptions of risk diminish.
• Lending standards eased.
• High loan-to-value ratio loans.
• Lo doc loans common.
• High household debt.

2008 global financial crisis effects:

• All capital cities in Australia saw property prices fall but the government created relief measures including First Home Buyer stimulus’ (aka the 5% deposit scheme).
• As the stimulus took effect, housing prices recovered, so it was a very short sharp downturn in the housing market and the recovery in Australia was quite rapid.

2020 COVID-19 PANDEMIC IN AUSTRALIA

The world hadn’t seen a pandemic like COVID-19 since the 1918 – 1920 Spanish flu. Although the World Health Organisation tried to guide us through it, each country, and in Australia’s case, each State and Territory, handled the pandemic differently. Overseas migration stopped abruptly, so population growth was dramatically reduced. That meant less demand for houses, and particularly rental properties.

2020 COVID-19 pandemic outcome:

• Government enforced travel restrictions, internationally, nationally and locally.
• Burden on public services, e.g. healthcare, police.
• Public health measures = closure of building sites, reduced labour, no house opens, material shortages etc.

2020 COVID-19 pandemic effects:

• Government stimulus packages including the Job Keeper subsidy and rental assistance package helped initial confidence.
• Unprecedented early growth in ‘lifestyle’ markets (driven by work from home) gave way to post-pandemic declining property values.
• The recovery effort to reduce inflation has resulted in current interest rate rises.

OPPORTUNITYISNOWHERE

It’s not surprising that some property investors are stalling and more seem to be bailing. Although the reason for recent increased investor sales isn’t clear, it’s assumed some are due to the increased interest burden, though another driver is certainly capital growth in some still-strong markets.

Although (somewhat unbelievably) further rate hikes are still a possibility, there are still opportunities to be found.

• Migration: We’re on track for a huge migration boom with more than 400,000 new immigrants expected to arrive in 2023.
• Current and future strong demand for rental properties.
• Inter-state travel & lifestyle drivers.
• Capital gains in high growth areas.

The Capital Properties team have the experience and expertise to help you take advantage of opportunities in the property market. Book a FREE Discovery Session to learn how a strategic approach to property investment can help you create a secure and successful financial future.