Bubble? What Bubble?

"Bubble? What Bubble? "
April 14th, 2016 - Phil Anderson

 

I feel we are at a very unique time in Australian Property History. The media would lead you to believe that we are just at the end of a "Property Boom", and teetering on the edge of a "Property Bubble". Sorry to disappoint you, but to be honest, I disagree.

Firstly, I would call the recent surge experienced predominantly by the Sydney market merely as a "Catch Up" rather than a "Boom", particularly after some weak performance in the preceding years. The Melbourne market has been more of an 'over performer' over the past 5 or 6 years, defying the forecasts of many Property market analysts.

I honestly believe that the Sydney market has now peaked, and Melbourne will be in a similar situation in the later stages of 2016. This opens the door for a range of other markets and cycles that are currently where Sydney and Melbourne were a few years ago. There are some fantastic opportunities laying at the feet of A-Grade investors at the present time.

 

Any talk of a Property Bubble is purely the media using sensationalism to sell newspapers. I do believe, however, that while the right properties in strong markets will continue to achieve impressive growth, certain property types will be in massive oversupply in the near future and result in some sharp declines (take a look at last week's blog "The Unit Trap" to learn exactly what I am talking about).

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Secondly, when it comes to the recent success of the Australian property market, I personally don't believe we're at the "end" of anything. As property investors we are blessed to be provided with an abundance of investing opportunities in this country, with more affordable markets and more quality property cycles to monitor than ever before.

 

Now, to be clear, I don't believe any one person can be an expert on ALL of Australia's property markets and cycles (I know I'm certainly not!), as there are just too many to monitor at any one time. My team and I are continually focused on what we believe are the top 70 or so property markets across this great nation of ours, and through weekly mail outs we hope to keep you as informed as possible.

What our research uncovers is safe, affordable and reliable hidden Property gems found within capital cities and major regional hubs. Now, don't get me wrong... The big Capital city property markets will always have strong opportunities, and I personally have NO INTEREST in mining towns, but what we are seeing is the emergence of large regional centres that have consistent capital growth, low vacancy rates, infrastructure and all the other defining factors A-Grade Investors look for before investing

blog3The research is showing that owner occupiers are now flocking to these large regional hubs. Areas such as Port Macquarie & Coffs Harbour are providing desirable, family friendly communities that make the great Australian dream of the white picket fence and kids playing in the front yard affordable once more. That, along with growing infrastructure (airport upgrades, hospital expansions, the growth of the beach side and cafe culture etc), is also making it attractive for Grandma & Grandpa to downsize and retire happily, while still being able to have the family up to visit during the holidays. As a bi-product, these elements are creating great tenants and sensational growth opportunities for investors.

The game is changing, and as investors we must always change with it.

They're some of my thoughts on the broader Australian market as a whole as it stands right now. I believe we're in for some exciting years ahead, and as long as you take full advantage of the low hanging fruit that the property trees are yielding, you'll do well.

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Here are some examples of regular people just like you that have done exactly that. They took action and grabbed hold of that sweet, low hanging fruit...and now, they're reaping the rewards because they were prepared,
they bought the right property in the right area, as well as at the right time in the cycle.
And I couldn't be happier for them!"
Phil Anderson
Property Expert and Author

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