Hotspotting Terry Ryder & Tim Graham

It’s a common myth that an investment property can’t have both strong rental yields and capital growth. 
Our data shows us time and time again that BOTH outcomes are possible, and no report illustrates it better than ‘The National Top 10 Positive Cashflow Hotspots Report’.
Investing in real estate is all about timing and choosing the right locations that promise substantial returns.
Our latest edition of the National Top 10 Positive Cashflow Hotspots report reveals the insights you need to make informed decisions and maximise your investment potential.
Our Previous Scorecard Our tips from last year had some remarkable growth in both property values and rental yields in these suburbs, reinforcing their attractiveness as investment destinations.
Here's a glimpse of the standout performers:
Armadale (W.A.):
12-month Capital Growth: 31.30%
Rental Growth: 28.20%
Withers (W.A.):
12-month Property Growth: 30.70%
12-month Rental Growth: 12.50%
Elizabeth Downs (S.A.):
12-month Property Growth: 23.50%
12-month Rental Growth: 16.70%
Orelia (W.A.):
12-month Property Growth: 25.70%
12-month Rental Growth: 14.90%
Berserker (QLD):
12-month Property Growth: 16.70%
12-month Rental Growth: 7.50%
Grab your copy today
https://www.hotspotting.com.au/product/national-top-10-positive-cashflow-hotspots/

I have often commented that every time politicians make changes that impact the cost of housing, they make it worse, never better. 
And it’s happening again.
Changes to the National Construction Code came into effect in Victoria and Queensland on the first of May. 
And this is expected to add up to $40,000 to the cost of building a new home - through, among other things, the Code’s new energy efficiency standards.
HIA Chief Economist Tim Reardon said this caused a spike in new home sales before the changes came into effect – and there will a slump in coming months – as home buyers rushed to sign a contract for the construction of their new home before the end of April.
Reardon says New South Wales experienced the same phenomenon in September last year when the state introduced its latest energy efficiency standards, adding significantly to the cost of a new home. 
Reardon says: “Additional regulatory costs, such as the Code changes, are one of the causes of the nation’s acute shortage of housing. The changes are intended to achieve energy efficiency and accessibility outcomes, but they also force people out of homeownership and the rental market.
“Ongoing changes to building codes will continue inflating the costs of construction with the next phase of building regulations now open for public consultation.
“If ever there was a good time to stop inflating the cost of home building, this must be it.
“Lowering the cost of delivering new homes to market is essential to achieving the Federal Government’s target of 1.2 million new homes over the next five years, and improving housing affordability across the country.”
Developers have warned that additional infrastructure charges will work against government plans to unlock more newly built homes and will make property more unaffordable for buyers.
AV Jennings chief executive Phil Kearns said about $200,000 of the cost of a new home is tied up in fees and charges across all three levels of government.
Kearns said: “It’s substantial - and now the National Construction Code will add around another $30,000 to $40,000 worth of cost for mum and dad to put up with. We have this government working against itself in trying to create more affordable housing.”
A report by Savills for the Property Council of Australia found planned increases in the next 24 months to two recent infrastructure charges in Sydney — the new Sydney Water Development Servicing Plan and Housing and Productivity Contribution charges — could jeopardise the delivery of almost 190,000 homes in the city’s west.
Modelling in the report found a typical 250-unit apartment development, and a 115-lot greenfield development would no longer be financially feasible - and will be significantly less feasible in 2026 under planned increases.
In NSW, there are currently 15 separate levies and taxes on new housing. The report found that in Western Parkland City – which covers from Wollondilly and Campbelltown to Blue Mountains and the Hawkesbury — 33 per cent of new home costs will be government fees by 2026. 
In the Central River City region, spanning the Hills Shire, Blacktown and Bankstown, the figure was 26 per cent.
Kearns said there is also the continued challenge to secure skilled labour on-site, which continues to exacerbate delivery costs.
He said the labour skill shortages, the tax situation, and the difficulty in getting approvals through, are preventing homes from being built.
He said: “Blocks keep getting put in our way.”
Meanwhile, Reserve Bank chief economist Sarah Hunter has warned there is no “quick fix” for Australia’s housing market woes, as developers defer projects due to high costs - sending dwelling approvals per capita to decade lows.
The severe undersupply of homes means house prices and rents will continue to rise as the market fails to keep pace with strong demand for space fuelled by high migratio

The Federal Government’s latest Budget will go down in history as the “band-aid budget”.
Rather than fix fundamental problems and deal with core issues, the Federal Treasurer has thrown cash in various directions, in what looks very much like an election Budget.
They haven’t provided solutions to any of the core problems in the housing industry, particularly the rental shortage.
There are broken limbs everywhere in the industry - and in other parts of the national body - and the Federal Government has applied band-aids to a few of them.
It’s the same in other areas. Rather than pull the necessary levers to bring down power prices, as they promised repeatedly to do at the last election, they are throwing cash at everyone to help with their next power bills.
It’s another band-aid. It doesn’t reduce power prices which are a key component of inflation and a serious problem for many businesses. It’s simply a short-term, short-sighted, vote-buying measure that doesn’t address the core problem.
But, at Hotspotting, our key focus is on the very important issues in the housing market, particularly the rental shortage and the high costs of buying homes.
The Federal Budget repeated the previously announced ambition of building 1.2 million new homes over five years, but did not nothing to address the current rental shortage, nor to deal with housing affordability – something politicians often talk about, but continually make worse with their policies and decisions.
The Real Estate Buyers Agents Association of Australia (REBAA for short) summed it up when it commented:
“The Federal Budget featured plenty of promises to somehow improve housing supply over the long-term, but failed to recognise one of the most simple ways to remedy the rental crisis.”
They were referring to the reality that mum-and-dad investors provide over 90% of the homes that people rent in Australia and they need to be encouraged and incentivised to solve the dire shortage of rental properties – at a time when all the costs of owning real estate have risen.
REBAA President Melinda Jennison said the Federal Government had again refused to accept the fundamental role that property investors have long played in the provision of rental housing in this country.

“Again, we have been presented with a variety of measures to supposedly boost housing supply at a time when building approvals and completions are at decade-lows,” Jennison said.

“For decades, property investors have shouldered the burden of providing rental supply for successive governments. However, it's evident that this is no longer the situation. The rental crisis is the end result of this changing dynamic.
“The volume of investors currently active in the market is well below where it needs to be to significantly improve rental supply, but the Federal Government still won’t do anything to encourage more investors into the market.”
I agree with Jennison when she says that it's surprising that the budget has provided incentives to foreign investors to purchase established Build to Rent developments, but no incentives have been offered to the resident investors who provide homes for millions of renters throughout our country.
Aidan Collyer of Collyer Property Investments said the move for foreign investment tax breaks “will price young people who want to invest out of the market”.
“This is already an incredibly competitive market, Labor is allowing international investors to make a quick buck at the expense of the great Australian dream,” he said.
Elsewhere there have been plenty of critics of the Budget’s response to the nation’s housing crisis – or the lack of it.
The Daily Telegraph reported widespread criticism of the Budget’s failure to “shift the dial” on the housing shortage.
It said the Albanese government’s much-championed $6 billion pledge to address the housing crisis has fallen flat with the bulk of the money going tow

Catch the replay of our latest webinar hosted by Tim Graham, General Manager of Hotspotting, featuring Tyron Hyde, the visionary founder of Washington Brown and a master of property depreciation.
Dive into the invaluable insights of "7 Lessons from the $26B Man," a presentation inspired by the legendary real estate mogul Harry Triguboff.
In this compelling session, you'll explore the powerful strategies that fuelled Harry Triguboff's ascent to billionaire status, with a focus on the transformative impact of compounding in real estate investment.
Discover practical advice and nuanced strategies that every property investor should consider:
The Power of Compounding: Learn how small, consistent investments can grow over time and how to leverage this in the property market for significant returns.
The 1% Rule: Uncover minor adjustments you can make that yield substantial improvements in investment outcomes. Whether it's negotiating a slightly better interest rate or enhancing property features to boost rental appeal, these small changes can dramatically increase your portfolio's value.
Annual Reviews: Understand the importance of reviewing your home loan rate annually to ensure you're getting the best possible deal. We'll also discuss the benefits of cross-checking comparable rental prices to maximize your income.
For more information on Washington Brown or to connect with Tyron Hyde, please visit www.washingtonbrown.com.au
You can also subscribe to Tyron's Ten with Ty podcast here: https://www.washingtonbrown.com.au/podcasts/
 

In this podcast episode, we dive into the two different approaches that state governments in Australia are taking to address the issue of rental shortage in the housing market. On one hand, Western Australia (WA) has adopted the carrot approach, offering incentives and encouragement to investors to increase the supply of rental properties. On the other hand, Victoria has decided to take the stick approach, punishing investors with new and higher taxes if they do not comply with the government's desires.
The WA government has implemented several measures to encourage investors to bring new supply to the rental market. This includes offering cash incentives to property owners who convert their short-term rental properties, such as Airbnb, into long-term rentals for permanent tenants. They have also relaxed regulations around building granny flats, providing interest-free loans to help builders complete unfinished properties, and offering cash incentives to owners of vacant homes to make them available for long-term rent.
In contrast, the Victorian government has scrapped the Victorian Home Buyer program, which was aimed at helping young people get into home ownership. They have instead turned to new and higher taxes on property investors to generate revenue and alleviate the state's debt. However, this approach may further exacerbate the rental shortage in Victoria.
It is clear that the WA government's approach is more constructive and will bring new supply to the market, while the Victorian approach may have negative consequences. The WA government has also allocated significant funding towards social and affordable housing initiatives to not only increase supply but also support those in need.
So, why are property investors now more likely to buy in Perth and key WA regional markets, while selling in Victoria? The difference lies in the government's actions – WA is encouraging investors, while Victoria is discouraging them. This highlights the importance of government policies and their impact on the housing market.
In conclusion, governments have two options when it comes to creating significant change – the carrot approach or the stick approach. In this case, the WA government's carrot approach seems to be more effective in addressing the rental shortage issue, while the Victorian government's stick approach may have negative consequences. Time will tell which approach will yield better results, but it is clear that incentives and encouragement go a long way in creating change. 

🌟 Leading the Way in Property Management: Corinne Bohan from the award winning Image Property 🌟
Join us on the latest episode of the Hotspotting podcast, where we sit down with Corinne Bohan, the trailblazing Managing Director of Image Property—Australia’s #1 Property Management Company for four consecutive years according to the RateMyAgent Awards. Dive deep into the world of elite property management with insights from a leader managing over 5,000 properties.
🏡 What Sets Image Property Apart? Corinne shares the secrets behind Image Property's success, focusing on their process-driven approach that handles everything from proactive maintenance to strategic tenant selection. Discover how their emphasis on exceptional client service, combined with rigorous staff training programs, leads to exceptional customer experiences and high retention rates.
🚀 Insider Insights on Overcoming Industry Challenges From navigating low vacancy rates to maximising returns, Corinne discusses how Image Property's dedication to sustainable rental incomes and a detail-oriented management strategy has carved a unique niche in the market. Learn about their innovative solutions and the critical role of problem-solving and project management in their growth trajectory.
🌐 Expansion and Impact Hear about Image Property's recent expansion into new markets like the Gold Coast, and get a peek into the future with discussions on major commercial projects impacting the real estate landscape.
🔑 Why Listen? Whether you're a landlord looking to optimise your property investment or a property management professional aiming to elevate your operational strategies, this episode offers invaluable perspectives from one of the industry’s best.
You can watch the full episode on Youtube too, and make sure to follow Hotspotting for more expert takes on the real estate market's hottest topics! 🎙️
Watch on YouTube - https://youtu.be/ryYhJEBjx_4
To learn more about Image Property or to connect with Corinne Bohan please visit www.imageproperty.com.au