The Elephant In The Room Property Podcast | Inside Australian Real Estate

Property prices rise more rapidly in some suburbs than others and it makes one wonder - what could be behind this movement? Is it purely due to established properties in the area being in high demand, or do building projects & renovations have a hidden impact on price growth? Today, we’re joined by our resident geek Kent Lardner for this month’s Suburb Trends episode! He takes us through his research on the impact renovations have on price growth data, where the ABS renovation values come from, the Gold Coast hinterland’s growth anomaly and more! If you enjoy the show, do like, rate, subscribe, and share us on social media and if you have your own questions you need clarity on, email us at questions@theelephantintheroom.com.au! See you in the episode!   Episode Highlights: Kent’s approach on researching the impact renovations have on price growth [01:09] What else drives median prices? [02:59] Renovation costs go beyond the renovation itself [04:31] Where do the ABS renovation values come from? [06:24]  A deeper look at the growth data in certain areas [10:32] Renovating big houses to live in versus renting them out [19:35] The unexpected stand-out in growth [23:22] There’s not a lot of building going on in Sydney versus Melbourne [25:39] Comparing the price growth of Newcastle and Wollongong [27:04] The desirability of Fig Tree Pocket, Byron Bay, and Lake Macquarie [29:48] Why the South and Gold Coast areas are worth looking into [33:18] The big price growth anomaly that is the Gold Coast hinterland [34:29] What can we expect on the next Suburb Trends episode? [39:23]   Links from the Show: Visit Suburb Trends Suburb Trends Building Activity Map   Connect with Us: Looking for a Sydney Buyers Agent? www.gooddeeds.com.au Work with Veronica: https://linktr.ee/veronicamorgan Looking for a Mortgage Broker? www.wealthful.com.au Work with Chris: hello@wealthful.com.au  Send in your questions to: questions@theelephantintheroom.com.au    Find this episode on our website: https://www.theelephantintheroom.com.au/podcasts/204   If you’ve enjoyed this episode, don’t forget to like, share, rate and subscribe for more!See omnystudio.com/listener for privacy information.

While we’re not fans of buying stock built by most developers, we do understand that more housing does need to be constructed. Most people see builders and developers in quite a negative light, so is it possible for them to be driven by purpose rather than profit?  Shannon Peach, Director and Head of Development at Milieu, joins us as we explore the possibility of architecture as a tool to effect positive social change. We talk about advocating for densified middle-ring suburbs, what buyers look for most in a property, and heaps more!  If you enjoy the show, do like, rate, subscribe, and share us on social media and if you have your own questions you need clarity on, email us at questions@theelephantintheroom.com.au! See you in the episode!   Episode Highlights: Is the industry already making a change, or is Milieu doing most of the work? [01:43] The hope for favourable change in development 10 years down the track [06:04] Advocating for densified middle-ring suburbs [08:46] What is the world doing that we can apply to Australian buildings? [17:39] What Milieu does differently to protect their buyers [23:06] Transparency about who the developers & builders are [25:24]  What can developers do to stand by their product better? [26:26]  Preventing mixed-use developments from becoming ‘white elephants’ [30:29] MIlieu’s target market & expanding their customer base [33:59] Do one-beds and two-beds make developers more money? [39:57]  Is there a higher price per m2 for two-bedders vs one or three-bedders? [43:30] - 45:05  What are buyers asking most for in a property? [46:54] Resales performance of Milieu apartments compared to others [52:06] Shannon’s property dumbo [57:09]   Links from the Show: Check out Milieu Property  Shannon’s interview with Australian Design Review   About Shannon Shannon Peach joined Michael McCormack and Ross Troon in 2014 to help lead the Milieu development business. With a commitment to continue to learn, influence and educate, Shannon’s business and design approach draws on more than 15 years’ experience working in private and public development, construction and finance organisations across Australia.   Connect with Us: Looking for a Sydney Buyers Agent? www.gooddeeds.com.au Work with Veronica: https://linktr.ee/veronicamorgan Looking for a Mortgage Broker? www.wealthful.com.au Work with Chris: hello@wealthful.com.au  Send in your questions to: questions@theelephantintheroom.com.au    Find this episode on our website: https://www.theelephantintheroom.com.au/podcasts/203   If you’ve enjoyed this episode, don’t forget to like, share, rate and subscribe for more!See omnystudio.com/listener for privacy information.

Since the latter half of 2020, the prestige property market has seen amazing growth.  This segment is so exclusive that to qualify for the label, the property’s sale price needs to be over $10M in Sydney and Melbourne or $7M elsewhere, and this got us thinking, “Well, what is driving the incredible price growth we’ve been hearing about across this segment?” Michelle Ciesielski of Frank Knight shares insights on why and how this growth in the prestige market is happening, what the ultra-wealthy think about when choosing property to invest in, the concept of “branded residences” and much, much more. If you enjoy the show, do like, rate, subscribe, and share us on social media and if you have your own questions you need clarity on, email us at questions@theelephantintheroom.com.au! See you in the episode!   Episode Highlights: Where else in the world are property markets booming? [02:35] What is driving the growth in value in prestige market properties? [05:12]  Buying residential property purely for investment not lifestyle benefits [09:42] Where did the 11% increase of prestige market buyers come from? [13:58] An insight on the mindset of the ultra-wealthy [16:25] Will more incredibly wealthy people come to Australia post-pandemic? [19:12] How do global investors think about currency & ‘buying cheap’? [22:45] Tax awareness for expats & overseas investors with property in Australia [25:20] 2 important factors prestige market buyers need to focus on [27:06] The continuous cycle of worsening inequality & build-up of the wealthy [32:33] Considerations for building properties for prestige vs. standard markets [36:16] Is there a push for major developers to repurpose commercial spaces? [39:50] Can you entertain on the 81st floor? [43:24] Do wealthy investors invest in scarce buildings to resell them later? [45:03] The “branded residence” concept [47:07] Are compounding properties common with the ultra-wealthy? [51:43] Michelle’s property dumbo [55:49] Buying in multiple areas & F.O.M.O. [58:09]   Links from the Show: Links to recent Knight Frank reports: The Wealth Report 2021 Australian Prime Residential Review Q3 2021 Australian Prime Waterfront Index 2021 Australian Residential Tennis Court Premium 2021 Knight Frank on LinkedIn Knight Frank on Facebook   About Michelle Michelle Ciesielski is a Partner at Knight Frank Australia and leads the residential research team, providing a platform for clients to make strategic and well-informed investment decisions.  Industry-leading residential insights are shared via publications and presentations specialising in development sites, foreign investment, apartment projects and established property, covering both the prestige and mainstream residential markets across Australia. Michelle frequently appears in local and international print, online and broadcast media commenting on current issues relating to the residential property market. Connect with Michelle on LinkedIn Follow Michelle on Twitter   Connect with Us: Looking for a Sydney Buyers Agent? www.gooddeeds.com.au Work with Veronica: https://linktr.ee/veronicamorgan Looking for a Mortgage Broker? www.wealthful.com.au Work with Chris: hello@wealthful.com.au  Send in your questions to: questions@theelephantintheroom.com.au    Find this episode on our website: https://www.theelephantintheroom.com.au/podcasts/202 If you’ve enjoyed this episode, don’t forget to like, share, rate and subscribe for more!See omnystudio.com/listener for privacy information.

We’ve been hearing a lot of suggestions on how to solve housing affordability, and one that seems most logical to many (and often hotly debated) is to increase the supply of dwellings. While that might seem like the best way to go, making it happen is not as easy as it sounds.  Peter Tulip, Chief Economist at the Centre for Independent Studies, joins us to explore this issue and dispel some popular myths around housing affordability along the way. We also cover the impact negative gearing and CGT have on property prices and whether changing supply costs can do anything to lower demand. If you enjoy the show, do like, rate, subscribe, and share us on social media and if you have your own questions you need clarity on, email us at questions@theelephantintheroom.com.au! See you in the episode!   Episode Highlights: Why is housing “unaffordability” a big problem long term in Australia? [01:48] Did Covid contribute to the issue or was it bound to happen anyway? [03:05] Exchange rates & keeping interest rates lower for longer [06:44] Does the government really care about high house prices? [10:57]  The impact negative gearing and CGT have on house prices [13:08] How can we create equality so people can afford a home they want? [17:21]  Highrise development & its impact on neighbouring house prices [20:34] How much does a house's proximity to high-rise buildings impact affordability? [24:58] Planning restrictions can cause other issues beyond housing affordability [28:28] Could the planning controls protect a property’s future value? [31:08] Would changing construction & supply costs do anything to lower demand? [33:22] Should you worry about short-term demand wiping out additional stamp duty savings? [35:04] How can we reconcile the 2-speed market of established vs. new stock? [37:52] Why would you enter a property market with the potential to lose money? [41:37] The power a country’s Reserve Bank has overall [45:15] Is printing more money inevitable for countries with negative interest rates? [46:29] Will migration save the Australian property market & economy? [48:19] What is the Falinski Inquiry trying to achieve? [50:50] Peter’s property dumbo [53:08]   Link/s from the Show: Peter’s recent work Peter’s Earlier Research   About Peter Peter Tulip is the Chief Economist at the Centre for Independent Studies. He’s previously worked in the Research Department of the Reserve Bank of Australia and before that at the Federal Reserve Board of Governors. His recent research focuses on housing and monetary policy.   Connect with Us: Looking for a Sydney Buyers Agent? www.gooddeeds.com.au Work with Veronica: https://linktr.ee/veronicamorgan Looking for a Mortgage Broker? www.wealthful.com.au Work with Chris: hello@wealthful.com.au  Send in your questions to: questions@theelephantintheroom.com.au    Find this episode on our website: https://www.theelephantintheroom.com.au/podcasts/201 If you’ve enjoyed this episode, don’t forget to like, share, rate and subscribe for more!See omnystudio.com/listener for privacy information.

Property investors are often painted in an unsympathetic light by the media and blamed for housing unaffordability, but the important role we play in the economy is often kept under wraps. When it comes to policy formation, we’re largely left out of consultation, but when they need a tax grab, we’re used as pawns by politicians! Knowing this, what threats are on the horizon for property investors and what can be done about them? If you enjoy the show, do like, rate, subscribe, and share us on social media and if you have your own questions you need clarity on, email us at questions@theelephantintheroom.com.au! See you in the episode!   Episode Highlights: Why PICA was formed [01:58] Does it coincide with the negative gearing & capital gains changes? [04:12] The misuse of data in negative gearing during labour’s policy changes [06:31] Is negative gearing, as a strategy, a good idea? [08:41] PICA on educating property investors on their journey [12:33] PICA’s checklist of what to lobby the government on [15:13] Is PICA being sought for consultation during this policy formation stage? [21:23] Ben’s experience dealing with government policies & lobbies [24:39] Pawns used by the government to stimulate the construction industry [28:28] What could solve the housing affordability problem? [33:05]  What should investors be aware of as regulators slow down the market? [38:02] How many brokers recommend not borrowing the maximum? [43:30] Who does PICA approach regarding new legislations & policies [46:26] The case of consumers being penalised by their lender [48:52] Refinancing based on your risk of leaving & ability to do so in the future [50:54] Helping disadvantaged property investors on the rezoning issue [53:28] Ben’s property dumbo [58:00]   Link/s from the Show: Visit PICA’s website   About Ben Ben Kingsley is the Chair of the Property Investors Council of Australia (PICA). He is also the Founder of advisory business Empower Wealth and may well be best known for co-hosting The Property Couch podcast with co-host Bryce Holdaway. Ben is passionate about educating investors and also bringing them together so that they can have a more powerful voice.   Connect with Us: Looking for a Sydney Buyers Agent? www.gooddeeds.com.au Work with Veronica: https://linktr.ee/veronicamorgan Looking for a Mortgage Broker? www.wealthful.com.au Work with Chris: hello@wealthful.com.au  Send in your questions to: questions@theelephantintheroom.com.au    Find this episode on our website:https://www.theelephantintheroom.com.au/podcasts/200   If you’ve enjoyed this episode, don’t forget to like, share, rate and subscribe for more!See omnystudio.com/listener for privacy information.

Whenever the property market booms, frustrated buyers often say, “This can’t go on! Surely this has to stop soon,” and it will. Booms and bursts can’t go on forever! This October, APRA has finally made a move to try and cool down the raging property market. Naturally, questions like, “Will this work?”, “What else can they do if it doesn’t?” and “Why did they need to act on it?” have surfaced and today, we’re going to discuss how APRA’s new measure will likely play out. If you enjoy the show, do like, rate, subscribe, and share us on social media and if you have your own questions you need clarity on, email us at questions@theelephantintheroom.com.au! See you in the episode!   Episode Highlights: What does the term “macro prudential measures” mean? [01:25] APRA’s increased serviceability measure [02:44] “Jawboning” to impact confidence [06:30] How much will APRA’s new measure impact the property market? [07:00] Evident flaws in banking calculators during 2012-2015 versus now [09:17] Talks surrounding the DTI limit [10:22] What can APRA do if their new measure doesn’t have the desired impact? [11:59] The struggle with slowing things down without impacting first home buyers [14:21] Is this move a pre-emptive strike to keep investor participation low? [15:04] Why are variable rates still falling & what’s causing it? [21:52] Turnarounds are huge in the broking space [23:44] Look at transactions, not listings! [25:19] Where are the big portions of transactions happening? [27:23] What decision fatigue can cause some investors to do [29:13] Some buyers agents are making alarming purchases at the moment [30:37] The difficulty with identifying a good buyer’s agent [36:28] The two factors that can really slow down the market [41:39] APRA’s measure & the ridiculous amount of growth in the market [43:52] Chris’s property dumbo [47:58] Veronica’s property dumbo [52:29]   Links from the Show: The Growing Housing Affordability Crisis | Michelle Adair (Episode 191)   Connect with Us: Looking for a Sydney Buyers Agent? www.gooddeeds.com.au Work with Veronica: https://linktr.ee/veronicamorgan Looking for a Mortgage Broker? www.wealthful.com.au Work with Chris: hello@wealthful.com.au  Send in your questions to: questions@theelephantintheroom.com.au    Find this episode on our website:https://www.theelephantintheroom.com.au/podcasts/199   If you’ve enjoyed this episode, don’t forget to like, share, rate and subscribe for more!See omnystudio.com/listener for privacy information.

Have you ever wondered why some regions have only grown marginally whilst others have boomed? In this Suburb Trends report for September 2021, we’re joined by Kent Lardner as we look at where prices are moving across the country - whether up or down - and why they vary. We also dive deep into “starfish” suburbs, the rise of rentvesting, the possible exodus of big-city dwellers to regional areas and more! If you enjoy the show, do like, rate, subscribe, and share us on social media and if you have your own questions you need clarity on, email us at questions@theelephantintheroom.com.au! See you in the episode!   Episode Highlights: Tackling the challenge of property price and growth [01:14] The right indicators don’t guarantee a typical outcome [02:33] “Starfish” suburbs & why they’re behaving the way they are [04:49] Does the socio-economic makeup of Liverpool affect property prices? [06:27] Income versus property supply & demand [08:16] Why has Wagga Wagga not grown the way other regions have? [10:42] The exodus of big city dwellers to regional areas [12:59] Why are mortgages getting bigger? [15:50] How much is price influenced by inventory & percentage change in listings? [16:27] What’s happening in Brisbane suburbs? [17:31] How much will the 2032 Olympics impact sustainable price growth? [20:11]  Brisbane is way more affordable for first home buyers [21:15] A deeper look at Sunnybank [23:47] Prices change dramatically as you travel South [24:46]  The danger of making decision based on chatter in forums [26:47]  The rise of rentvesting [33:35] What is the deal with Cairns-South? [34:46] A lens on Toowoomba & property prices [40:05] Has Perth been doing as well as we expected? [43:51] A look at Canning & Gosnells [48:16] Why hasn’t Adelaide Hills blown-up as expected? [50:07] Are the ‘underperformers’ going backwards? [52:12] A short overview of what the next Suburb Trends episode will tackle [53:40]   Links from the Show: Visit Suburb Trends   Connect with Us: Looking for a Sydney Buyers Agent? www.gooddeeds.com.au Work with Veronica: https://linktr.ee/veronicamorgan Looking for a Mortgage Broker? www.wealthful.com.au Work with Chris: hello@wealthful.com.au  Send in your questions to: questions@theelephantintheroom.com.au    Find this episode on our website:https://www.theelephantintheroom.com.au/podcasts/198   If you’ve enjoyed this episode, don’t forget to like, share, rate and subscribe for more!See omnystudio.com/listener for privacy information.

For the longest time, success has been equal to how much money and property you own, but is that really the end goal? Is that truly what success is all about? Terry Condon of The Cashflow Co. joins us as we challenge the notion that success can be measured by zeros in your bank account (or how many properties you own, for that matter).  That’s not to say money isn’t important, but how do we use it as a tool rather than view it as an end in itself? How can we take control? If you enjoyed the show, do like, rate, subscribe, and share us on social media and if you have your own questions you need clarity on, email us at questions@theelephantintheroom.com.au! See you in the episode!   Episode Highlights: Why money management is important to overall happiness & well-being [01:53] How people should approach money from the start [03:24] Terry’s definition of a rich life [05:29] Balancing saving money & investing on life & other essentials [08:12] Alignment versus fulfilment [11:02] Distinguishing ‘well-off’ from ‘well-regarded’ people [12:09]  Problems the 21st Century has created in how people manage money [14:06] Behaviour & identity affect the way people manage money [17:34] Creating fulfilment through mortgage repayments [19:12] Consider if your dream house is worth whatever you need to sacrifice in return [21:11] “Property therapy” for couples & figuring out what they want in property [23:10] Couple dynamics during property searches [27:21] Overcoming “baggage” that hinders people from making better decisions [30:00] It’s all “behavioural advantage” when it comes to money [34:42] Creating urgency to act on their wants [38:16] Mindset matters with money [40:32]  The alarming observation that people like to be spoon-fed [44:39] Why did they name their podcast the Passive Income Project? [48:58] How Veronica got started in real estate [51:58] Terry’s property dumbo [55:19] The Australian psyche of “you can’t lose in property” [01:06:12]   Links from the Show: Check out The Cashflow Co. Episode 46 - What Causes Wishful Thinking and Why Does It Cost Us So Much? Episode 1 - Who is Really Making the Decisions When You Bid at Auction?   About our Guest: Terry Condon is the Chief Education Officer at The Cashflow Co., a money mentorship program, and co-host of the Passive Income Project podcast. He’s driven by the idea that financial intelligence and emotional intelligence can enable most Aussies to build a rich life.   Connect with Us: Looking for a Sydney Buyers Agent? www.gooddeeds.com.au Work with Veronica: https://linktr.ee/veronicamorgan Looking for a Mortgage Broker? www.wealthful.com.au Work with Chris: hello@wealthful.com.au  Send in your questions to: questions@theelephantintheroom.com.au    Find this episode on our website: https://www.theelephantintheroom.com.au/podcasts/197   If you’ve enjoyed this episode, don’t forget to like, share, rate and subscribe for more!See omnystudio.com/listener for privacy information.

We’re always delighted to receive questions from you, our awesome listeners, so today, we’re going to be answering some of them! Do you need evidence for different growth rates within a suburb? Have you always wondered if apartments were better than houses? What about the so-called “lifestyle compounds” and resort style complexes? Are they investment grade? Let’s dive in and talk about stratified medians, doing your due diligence properly, the need to find a really good mortgage broker and lots more! If you enjoyed the show, do like, rate, subscribe, and share us on social media and if you have your own questions you need clarity on, email us at questions@theelephantintheroom.com.au! See you in the episode!   Episode Highlights: How do you find the right asset if capital growth trajectories vary for properties in the same area? [01:32] Local, on-the-ground knowledge [04:34] Stratified Medians [07:52] Choosing an apartment block with retirement options, on a budget [09:02] Knock-on effects of affordability to one, two, three-bedroom apartments [18:01] What will drive apartment prices to the next level? [23:32] Are “lifestyle compounds” worth the investment? [24:40] Anything new ages fast [33:04] What you need to know about upfront deposits and auctions [36:53] Do your due diligence before anything else [38:29] Explaining auctions in hot and slow markets [41:05] Find a really good mortgage broker [45:09]  Thoughts on subsidized social housing & landowners willing to lend their land [51:15]   Links from the Show: Get Auction Ready by Veronica Morgan (Use code ELEPHANT for 30% off) Home Buyer Academy’s FREE Courses Episode 191 - The Growing House Affordability Crisis | Michelle Adair Suburb Trends July 2021 | Best Metrics to Measure Growth? Episode 162 - Houses vs Apartments | Stuart Weymss   Connect with Us: Looking for a Sydney Buyers Agent? www.gooddeeds.com.au Work with Veronica: https://linktr.ee/veronicamorgan Looking for a Mortgage Broker? www.wealthful.com.au Work with Chris: hello@wealthful.com.au  Send in your questions to: questions@theelephantintheroom.com.au    Find this episode on our website: https://www.theelephantintheroom.com.au/podcasts/196   If you’ve enjoyed this episode, don’t forget to like, share, rate and subscribe for more!See omnystudio.com/listener for privacy information.

With half of the country in lockdown and Sydney just completing its third month, much has been made about the vaccination targets of 70% and 80% of eligible adults being our golden ticket to freedom. How much have these lockdowns affected the economy and the nation’s mental health? Will Australia’s strategy for reopening do the job of balancing health outcomes with growth and prosperity for all?  How well are we managing the health and the economic trade-offs - and what might the next few months look like? Grattan Institute’s Economic Policy Program Director, Brendan Coates, joins us for a very colourful and informative discussion on Australia’s plan to reopen, the strategy being used, how realistic it really is, the challenge with reaching the 80% vaccine rollout, plus so much more! We’ll see you in the episode!   Episode Highlights: How realistic & effective are the steps to reopening the country? [02:32] Is “Covid Zero” now a thing of the past? [06:09] How quickly will we be able to get everyone vaccinated? [09:20] What about the UK’s decision to reopen fully with a 70% vaccination rate? [14:42] Should we have gotten Covid out in the community to avoid burning ourselves in the end? [16:02] Thoughts on Labor’s negative gearing policy [17:38] The challenge of getting to an 80% vaccination rollout [19:17]  Does stopping Covid rely so much on vaccinating kids? [22:36] How about top-ups and boosters? [24:37] Let’s talk about vaccines available & their potency [24:56] Are we rushing vaccine shots too much just to get everyone through? [27:05] Anti-vax proponents & how much they impact the rest of the population [29:22] Did prioritizing physical health cause more mental health problems? [32:20] What we’ve lost to Covid, in an economic aspect [34:42] The debt impact of the pandemic [36:55] Migrant intake and impact when the borders reopen [40:49] The problem with reassuring people that the 80% rollout is our ‘ticket to freedom’ [44:58] On estimate, when will we hit the 80% vaccine rollout? [48:57] Learning, observing & testing before moving to Phase D [51:31] How about people who die due to other causes that couldn’t get an ICU bed? [53:52] What should be happening (that isn’t) at a government level in terms of spending? [55:11] “Leaning against the wind” [58:50] Brendan’s property dumbo [01:02:45]   Links from the Show: Check out The Grattan Institute’s Report: Race to 80   Episode 153 - Accessing Super for Home Buying? Episode 124: The New Normal: Will Your Household Finances Hold Up? Episode 89 - Australia’s Home Ownership Crisis   About our Guest: Brendan Coates is the Economic Policy Program Director at Grattan Institute, where he leads Grattan’s work on tax and transfer system reform, retirement incomes and superannuation, housing, macroeconomics, and migration. He is a former macro-financial economist with the World Bank in Indonesia and consulted to the Bank in Latin America.    Connect with Us: Looking for a Sydney Buyers Agent? www.gooddeeds.com.au Work with Veronica: https://linktr.ee/veronicamorgan Looking for a Mortgage Broker? www.wealthful.com.au Work with Chris: hello@wealthful.com.au  Send in your questions to: questions@theelephantintheroom.com.au    Find this episode on our website:https://www.theelephantintheroom.com.au/podcasts/195   If you’ve enjoyed this episode, don’t forget to like, share, rate and subscribe for more!See omnystudio.com/listener for privacy information.