It wasn’t too long ago that property market commentators, along with chief economists and financial institutions, were predicting a prolonged crash in dwelling values. With all the challenges brought about by the then unfolding COVID-19 pandemic, many would have understandably thought the same. However, Freedom Property Investors Co-Founders Scott Kuru and Lianna Pan knew that this period in time would soon become one of the best opportunities that property investors have seen since the Global Financial Crisis.
Fast forward to April 2021 – the pendulum has well and truly swung in the opposite direction to what past media headlines had proclaimed, and now the market is on the cusp of what could be one of the biggest property booms of our time.
For those who may be thinking that it’s too late to capitalise on the coming property boom, you will be glad to know that there is still ample opportunity to enter the market.
Scott and Lianna look at macro-economic, as well as major external factors, to determine the best times and places to invest; “In my experience as an Actuary, I know that the data always tells us the real story and combined with our Four Pillars of Prediction, we are always able to accurately pinpoint areas of significant growth potential.” says Lianna.
A summary of recent housing market predictions for 2021 shows that the banks are now forecasting some significant price growth ahead.
With interest rates at historic lows, and a shortage in dwelling supply across many property markets around Australia, our data insights and macro-economic research pointed to a very profitable window of opportunity for those who are able to invest during this time.
In fact, those who were actively investing throughout 2020 are already starting to see the swing in market conditions turn in their favour.
As buyers continue to flood the market, competition for property remains fierce, and sellers are beginning to raise their asking prices. Smart investors are now seeking areas that will provide them with the greatest capital growth in the shortest possible time.
In January this year we presented a unique opportunity to our community of investors. The suburb of McDowall in Queensland is an affluent, family-friendly pocket that has been described as one of Brisbane’s ‘best kept secrets’.
Our research indicates this region of Brisbane as having excellent growth potential due to its infrastructure and proximity to the CBD, in addition to a current undersupply of housing as evidenced by the extremely low vacancy rates.
Since the onset of the COVID-19 pandemic, the vacancy rate of McDowall has been trending towards levels that are below 1%. Landlords have needed only minimal time on market when leasing their properties and are able to secure tenants swiftly, with some increasing rents.
Source: SQM Research
Likewise, the asking prices for townhouses in this region have been steadily increasing over the last 12 months, growing around 12% (or approximately $50,000) through this period.
“By leveraging our data insights and large investor community, we have helped many of our members capitalise on this opportunity, many of whom are already seeing the benefits.” says Scott Kuru.
In times like these where asking prices are on the rise, we are in the fortunate position to offer our members pre-negotiated prices on premium property that were locked-in prior to the current property boom.
Members of ours who are purchasing in McDowall have been able to secure investments at pre-negotiated prices, some at as much as $35,000 less than what is currently advertised. As a result, even before settlement, those who invested here have already secured astonishing equity gain almost overnight.
Source: SQM Research
Another example comes from one of the most popular new developments in the Hunter region of NSW. This is unique in the fact that the local council in this area allows for the building of dual-key properties.
Dual-key properties are effectively one main property divided into two dwellings. When built in the right locations, these dual-key properties are an exceptional addition to any investors portfolio as they offer both capital growth and higher-than-average yields of 6-7% thanks to the dual rental income.
The Hunter region of NSW has long had attractive investment fundamentals due to the strong and diverse local economy, which has resulted in consistent capital growth and high rental returns. Throughout 2020, we witnessed a mass migration toward these regional areas, in turn increasing the demand for suitable property.
For example, in the suburb of Farley (one of the satellite suburbs surrounding the central hub at Maitland), we have been helping our members build dual-key properties to satisfy the need for adequate and quality housing in this region.
Through our negotiations with vendors in the area, we were able to secure a premium allocation of land with lot sizes ranging from approx. 550sqm to 600sqm. Providing the perfect basis for a profitable investment.
Source: SQM Research
While land values in the area have been growing at a consistent rate over a long period, including throughout the COVID-19 pandemic, there has been a sharp upswing in asking prices of about 13% in the last 3 months alone.
Our unique method of securing land in this highly sought-after region again means that our members have been able to enjoy outstanding capital gain in only a very short period of time.
The above examples are just two of many regions that Freedom Property investors have identified as locations on the cusp of substantial growth. With all of the noise currently surrounding the property industry, it can be difficult to cement your property investment plan.
Our dedicated research team utilise a data-driven approach to selecting the best locations across the country which helps our members navigate the market to find excellent opportunities and achieve financial freedom.
If you would like to find out where you need to be investing in this current market, join one of our free online masterclasses or get in touch with us today.
Source: www.realestate.com.au for McDowall