Tim Guest’s Post

G'morning #ArcaniteCommunity! Property prices in Perth have been on a tear, surging by 11.2% in the June quarter alone, reaching an average of $816,000. With this kind of momentum, Perth could even outpace Queensland's average property price in just a few years. The demand for housing continues to rise, driven by strong migration numbers, but supply just isn’t keeping up. The property market in WA, long known for its boom-and-bust cycles, is evolving. Instead of massive fluctuations tied to mining booms, we’re likely to see more steady and sustained growth over the next decade. Factors like China diversifying its mining interests into other regions could shift Perth’s reliance on mining investment and push it into a more stable growth pattern. Real estate agents and developers should take note—there’s significant opportunity to capitalize on this ongoing demand. Established property prices are set to climb as supply shortages persist, making it crucial to adapt to market changes. Get ready for a new cycle where Perth becomes a competitive player in Australia’s housing market. #PerthProperty #RealEstateAU #HousingCrisis #WARealEstate #PropertyInvesting #PerthDevelopers #RealEstateAustralia #ArcaniteInsights

With Trump returning to the White House, searches for “How to move to New Zealand” are trending again. Yes, it’s just an inquiry for now, but we can expect to see more Americans making the move to NZ in the near future. Provisional migrant arrivals from the US to New Zealand jumped from 1,479 in 2022 to 4,264 in 2023, according to a dataset provided by Stats NZ. #aucklandproperty #firsthomebuyer #luciaxiao

Are Highest Yields risky !!! The risks of investing in mining towns and other locations with economies dominated by one sector. Analysis by MCG Quantity Surveyors shows that the more affordable regional markets have plenty more to offer than inner city suburbs. MCG Managing Director, Mike Mortlock, says the Some suburbs  in Western Australia has house yields of 9.85% and unit yields of 13.12% which are being driven by strong rental demand caused by the growing mining sector only. Similarly areas between Bendigo and Shepparton in Victoria. Rental yields for houses are at 6.23% and units are 11.28%. In Queensland, the Outback South and Basin regions have rental yields for houses of 9.07% and units of 8.88%. Although properties are relatively affordable and yields are good in these locations, experts do warn there are risks when a market is heavily influenced by one industry sector. The one thing the strongest performing markets have in common is that they are areas that are underpinned by strong activity in the mining, agriculture and other sectors. As capital growth is not always as strong as it is in locations closer to capital cities. “(It’s) important to balance the attraction of high yields with the potential for capital growth,” Many investors underscores the importance of a diversified investment strategy that considers both regional and metropolitan markets.

We’re excited to see a rise in attendance at our latest property workshop, including several couples returning from Australia who are debating whether to sell their properties in Melbourne and Perth. My advice? Yes. Melbourne currently faces an oversupply of 100,000 new builds, which has impacted prices, with housing values down 9% over the past 12 months. However, projections for population and GDP growth indicate that now is a good time to invest if you have long-term goals. Perth, historically driven by the mining industry, has tended to be more speculative than stable, with property values frequently fluctuating—even banks are cautious about certain postcodes. For those navigating the property markets across Australia and New Zealand, now is the time to make informed decisions. #aucklandproperty #firsthomebuyer #luciaxiao

I recently did a Q&A on my Youtube channel answering various questions related to property investing. If you are looking to buy your first investment property in Australia in 2024 and are looking for real estate tips and guidance this video would be useful for you as it covers a lot of information about different property markets around the country. Here's what's covered: @00:47 What does the data say about the Albany (WA) property market? @04:30 Where do you get the data from? @05:00 How do you calculate the land to asset ratio? @06:45 Where can you buy with a 800K budget? @08:32 What's happening with the Sydney property market? @11:06 Victoria or Regional QLD? Is it too late to invest in Perth or Brisbane? @13:05 Is Regional QLD mining dependant? Here's the link to the video : https://lnkd.in/gAk3D2iN

Will Perth's red hot price growth continue in 2025? After hitting remarkable 25% annual growth in mid-2024, Perth's property market price growth has now cooled to a still strong 21% Looking ahead to 2025, several factors suggest this moderation will continue, while maintaining positive momentum. The reasons being: - Record-high construction costs, particularly in brick construction - Sustained population growth outpacing housing supply - WA's strategic position in the global minerals and green energy transition However, there are some factors that will slow it down - Slowdown in iron ore price growth and falling lithium prices affecting the mining sector - High interest rates causing mortgage stress - Global economic uncertainty, particularly around US-China relations - Cooling sentiment from interstate investors, driven by rapid slowdown in eastern states Overall, price growth is set to continue in 2025, likely settling in the low teens after starting the year below 20%. For more on the outlook for 2025, the Ray White/Loan Market Property Outlook Report is now out >>> https://lnkd.in/gR2HKNZF

Rural house #investment is good for… prophets who know when the boom and crash 😅. Can real estate investing work in regional areas? Yes and no… How real estate #investing works is either providing the investor with a positive cash flow property, or a capital gain when they eventually sell down. Why real estate investing in rural regions can be risky is that the #capitalgrowth and rental return can fluctuate due to the industry of that region being a one trick pony like a single mining company. Gladstone, Queensland, is a great example! If you bought there in 2011 for, say, $476,000, then today, that would be worth about the same. (See table below for Gladstone data) But if you bought in #Brisbane at the time for $450K, today it would be worth over $1M. What do people think the #olympics will do to Brisbane property? What are some other reasons not to invest in regional? Image from #Pricefinder Suburb Statistic

Historical truth of Property I’m old enough to have seen “the recession we had to have…” “the GFC”, “the Mining Boom x at least 2” “COVID” and everything in between. And throughout the last 40yrs properties have gone up in value & gone down, and with greater knowledge & information available to consumers this process has sped up. So in the press we see that property in Perth has gained 24.2% in the year too August 2024, resulting in a 56.3% increase in our million dollar suburbs compared to last year. But what do buyers need to be mindful of? Prices may reach a plateau over the next 12mths and from there could stay the same or potentially start to reduce. Interest rates are already at historic lows and even if the RBA drops rates, they are unlikely to ever drop to COVID levels again. So when your making the decision to buy, resist the urge to overspend and don’t rely on a major drop in interest rates, high repayments in a market that starts to drop is a slippery slide to reduced equity and stress and no one needs that!

⚡️Regional property market outpaces capitals as slowdown hits cities: 1. Regional Australia's property values are outperforming capital cities, with a quarterly increase of 1.2% compared to 1.0% in capital cities. 2. Strong growth in WA and Queensland coastal towns, with increases in Albany, Bunbury, Lismore, and Townsville. 3. Tasmania's Launceston and Devonport recorded the largest quarterly falls in property values. 4. Regional rental market is on the rise, with a 2.3% increase over three months, led by Albany, Bunbury, and Busselton in WA. 5. Mining regions have the strongest yields, with Kalgoorlie - Boulder in WA leading at 9.5%, while Bowral - Mittagong in NSW has the lowest yield at 2.9%

Morning #RealEstateAustralia! House prices in Australian mining suburbs skyrocketing by almost 30% in the past year, thanks to the booming mining sector. This surge in property values is a significant shift for regions that once suffered from plummeting prices. Take Mount Morgan and Blackwater in Queensland, for example. They've seen 29.7% and 19.9% annual price growth, respectively. Even in Western Australia, Kambalda West's median house price jumped by 19.9%. This trend is echoed across numerous mining regions in Australia, showcasing how fluctuations in the mining industry directly impact house prices. Experts point out that mining regions experience boom and bust cycles more intensely than major cities. These cycles are driven by mining activities, unlike areas with diverse economies. The mining industry's growth can drive regional population increases, spurring housing demand. Australia's resources boom is reflected in the real estate market of mining towns like Port Hedland. A decade ago, Port Hedland's median house price peaked at $810,000 but fell to $220,000 in 2018. Today, it's rebounding at $520,000. Similarly, areas like Greater Geraldton, Kalgoorlie-Boulder, and Collie follow the same pattern. Queensland towns like Mackay, the Central Highlands, Isaac, Maranoa, and Mount Isa show similar trends. For instance, Mackay's median house price rose from a low of $320,000 in 2017 to $475,000 now, even surpassing prices from a decade ago. Mackay has diversified its economy beyond mining, boosting resilience against market downturns. In contrast, NSW mining regions like Singleton have seen consistent price growth, driven by their proximity to Sydney and major hubs. Singleton’s median house price increased from $390,000 in 2014 to $630,000 today. Experts advise caution for buyers eyeing these regions. While mining towns can offer lucrative opportunities, their reliance on a single economic driver makes them vulnerable to market swings. Stay savvy out there mates! #ArcaniteInsights #HousingCrisis #MiningBoom #PropertyInvestment #RealEstateInsightsAU #MarketTrends #ArcaniteCommunity #AffordableHousing #MarketDynamics