How To Start Researching Property Markets in Australia
After you’ve set your strategy it’s important to start researching the different major property markets. Here is a great tool to get you started.
After you’ve decided on your property investment strategy, one of the things that you’re going to want to do to increase your chances of buying a good investment property is to actually start to research different markets around the country to invest in a market that is on the rise versus a market that’s on the decline. Because obviously it’s a lot harder to find a property that’s going to make you good money. If you’re buying in a declining market.
The saying goes, the rising tide lifts all boats, so the market’s going up and generally old properties in the area are more likely to go up. It’s the same if the tide is going down or the market’s going down, chances are the property you buy it, no matter how great is likely to go down with that market as well. So when we’re investing in property, one of the things we want to do is choose markets that are on the rise.
And so in this video we’re going to be looking at how to start researching different markets around Australia. And the point that I recommend to start, and I want to thank Ben Everingham from pumped on property, who you guys should know and love if you’ve been following this channel for a while, is the Herron Todd White month in review report. So what we’re going to do is jump into Google because that’s what we do. And we’re going to type in Heron Todd White month in review report probably doesn’t matter how you spell it.
Google’s pretty smart. And here we go. We’ve got the HTW website, month in review. And so that will bring up the different month in review articles. Those actually one that was a bit better. This property report, Herron Todd White. So let’s go ahead and select that one. We can see that it is March, 2018.
I am recording this in the middle of March 2018. So that’s perfect. I want to go ahead and check the residential report. My voice sounds a bit different I do have a head cold. I Apologize I had pneumonia. Got over that. But I think that antibiotics have just made my immune system shot. So now going straight into a head cold as well, which sucks, but oh well.
So we are looking at the residential report. If you’re listening to this in podcast format, I will talk through this with you guys but pretty simple. Go to Google and that will bring up this report. OK, so there’s two pages in this report. We’ve got the orange one which talks about the housing market and we’ve got the blue one which talks about the unit market. Now it’s important to know and we will talk about it, that houses in an area perform very differently to units in an area.
So one thing I’m going to draw out right now is Brisbane. So if we look at houses in the Brisbane market, we can see that on the property clock there, put it in the rising market. So they’re expecting Brisbon to rise. But if we go down to the units clock in a declining market, we’ve got Brisbane. So this has to do with supply and demand. So because there’s been an oversupply of units in the Brisbane market, that might be more development as well.
They expect that units in Brisbane are in declining market even though houses are increasing in value. So this is why it’s really important if you’re choosing to invest in units or you’re choosing to invest in houses that you look specifically at the market in relation to units or houses because it can be very different. But yeah, this property clock is super-simple to look through basically at 12:00 is the peak of the market.
So that’s when property prices are peaking out. We then go into starting to decline and a declining market at 3:00, then we’ve got approaching the bottom of the market and the bottom of the market at 6:00. So if you’re listening to this, just imagine the clock there and then you’ve got on up towards 9:00 you got that rising market or between six and 9:00 you got the starter recovery. So this is kind of where you want to be. You’re going to be at the start of the recovery or in a rising market.
So again, that a rising tide lifts all boats. So that’s kind of where you want to be. Um, and then you’ve got approaching the peak of the market and back to the peak of the market. So it’s important to know that they’re not always right. I think a couple years ago they had Sydney at the peak of the market and then obviously Sydney still had a few years to go before it actually peaked out, so they definitely can be wrong.
So take this with a grain of salt, but this is a great place to start, especially if you know nothing about what’s going on in the Australian property market and you’re thinking about investing in an area. So maybe you’re in Sydney and you’re thinking about investing in Sydney. We can see that it’s starting to decline in terms of houses and if we go ahead and look at units than we can see Sydney starting to decline as well. So you may be a bit worried there.
If you’re looking at investing in Perth, we can see that units are in a declining market and where Perth at the moment for houses, you guys are probably looking at this and you can see it and I just can’t. OK, there it is, so Perth it expecting that it’s at the bottom of the market for houses, so it’s just a really good place to start.
You can, if you’re looking at investing locally where you live, that you can check out the market and get an idea of where the market’s at or you can look for areas that you may want to invest in. So let’s have a look at the of recovery for houses so we can see places like Cairns, Emerald, Gladson, Hervey Bay, Ipswich, Mackay, Mildura, southwest WA, Townsville, a bunch of these are mining towns like emeralds, a mining town. Mackay I think is also mining Gladstone’s mining.
So I kind of, while those are interesting, I do worry about the local industries. So obviously you take this with a grain of salt. I’m not definitely going to invest in them because you need to think about the long term as well. They might be at the start recovering now, but long-term they might have less potential than something like Brisbane, which is a capital city.
And you can see growing in value over time, or even we’ve got Hobart, the capital city in here, we’ve got Adelaide as well in a rising market. We’ve got Canberra and these sorts of places. So you really got to look at short term growth, but then you’ve also got to look at will long-term how sustainable do you see these areas? And they, small mining towns might not be as sustainable in the long term or might not grow as much in the long term. So you got to take that into account. But yeah, this is a really great place to start.
The report also goes into more details and looks at the different states. So we can see here in New South Wales talking about the different areas in New South Wales. So if you find somewhere that you’re interested in then you can go ahead and dive into it.
Then we’ve got Canberra here and so they dive into details about that. New South Wales mid north coast, Newcastle, the report is really long and it covers all the different states. We’ve got Victoria we’ve got Queensland here talking about Brisbane and talking about Ipswich, Gold Coast, sunshine coast, all this good stuff. What we can do is you start with the clock and then if you got a few areas that you’re interested in, then you can go ahead and read more about those areas and then you can move on to the next step which is analyzing those markets in more detail as well as looking at individual suburbs in that market.
So this is just a great way to get started in researching your market and that’s the Herron Todd white month in review report. So again, massive thanks to Ben from pumped on property who has shown me this report and made this aware to me and to all of you guys that this is available.
I think it’s a great resource. I wouldn’t believe it 100%. Always take any information with a grain of salt. Any information I give you, any information anyone gives you take it with a huge grain of salt because no one actually knows what’s going on. So the same with like the stock market and with the crypto currency market.
We can make our best assessments based on the data that’s available, but often people do get things wrong, so just always taken with a grain of salt, always do your own research and make your own educated decisions about where you’re going to invest and what you’re going to invest in. But yeah, I think this is a really, really good place to start.
I mentioned at the start of this video that this is great to do after you’ve set your strategy, so before you go ahead and start researching markets, it is really important that you understand your financial situation, where you are now, where you want to be and what kind of investment strategy you want to take in order to get there.
So you don’t have that strategy down yet than looking at this as kind of going to be a waste of time. Not completely, but it’s just so much more effective. If you already know what kind of property you want to invest in, what kind of investor you want to be, what your financial goals are, then you can look at this property market through the lens of your strategy and that just really helps you narrow down in areas and start to focus your research so you can find a property that’s going to move you towards your ultimate financial goal. So getting that strategy first is absolutely key.
So I’ve got a bunch of videos coming up on strategy shortly, or if you need someone to help you with your strategy, you think, you know I want to learn about that, but I need some help. I can’t do it alone.
Then Ben, who I already mentioned from pumped on property, is offering free strategy sessions to listeners and followers on property. So that sounds like you. You want some help getting clear on your strategy. Then ben and his team over at pumped on property are offering those free strategy sessions.
If you head over to OnProperty.com.au/session, or if you’re watching this on youtube or on the website, I’ll leave the links in the description down below, so that’s OnProperty.com.au/session, go on, head over there and you can actually pick a time in the calendar over there that suits you where you can have a strategy session, get clear on your goals and where you want to go so that you can move on to this next step which is starting to research the markets you want to invest in. I hope that this video has been helpful guys, and until next time, stay positive
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