In this episode of The Property Frontline Market Watch, Debra and Scott reviewed the Australian Property Market performance up to 31 October 2024.
In addition to market performance, Debra and Scott also explored the growing interest in using superannuation to invest in property. This is a very topical issue with revelations this week from the ASIC prosecution of Cbus over the exceptionally poor handling of their clients funds.
Check out the podcast, and see below for the summary.
Australian Property Market Insights (Data Ending October 2024)
The latest data highlights mixed performance across major Australian cities:
- Sydney: CoreLogic reports a slight decline of 0.1%, SQM Research shows asking prices up by 1.4%, and PropTrack reports sales prices up by 0.2%.
- Melbourne: Mixed signals here too, with a 0.2% decline according to CoreLogic, while SQM Research indicates a 0.4% increase in asking prices.
- Other Markets: All other markets showed very minimal monthly changes.
Growth rate chart – Scott summarised the Home Price Growth Chart from PropTrack – this chart is another way monitor trends but be mindful this chart doesn’t reflect ‘prices’ it’s the rate of growth. Overall, the chart showed that Brisbane, Adelaide, and Perth continued with strong growth, with Perth leading at a 20.6% annual growth rate. Hobart and Canberra are stabilizing, and Melbourne’s decline shows signs of flattening.
Listings (properties coming on to the market ): Sydney and Melbourne have above-average listings, while Brisbane, Adelaide, and Perth have lower listings, creating a two-tiered market of contrasting supply dynamics.
Property in Super: A Growing Trend
Investing in property through superannuation, particularly through self-managed super funds (SMSFs), is gaining traction. This approach offers potential benefits like tax-free capital gains in retirement, steady rental income, and potential capital growth. However, it also requires setting up an SMSF, which can be complex and comes with its own costs.
Types of Property for Super Investments: For a successful property investment through super, criteria such as high rental yield, low maintenance, and strong capital growth potential are essential. Options may include established homes, duplexes, and even commercial properties.
Debra and Scott presented a range of examples of high-yielding property types for SMSFs, including:
- Dual-income properties = dual-key properties that house two separate main tenants.
- Rooming houses: High-yielding properties offering multiple micro-units under one title.
Key Considerations and Expert Advice
Investing in property through super isn’t a one-size-fits-all strategy. It requires a team of independent advisors, including an SMSF specialist, property lawyer, finance broker, and buyer’s agent, to help navigate the complexities.
As this trend grows, more Australians are exploring SMSFs to invest directly in property, seeking control over their super and adding diversity to their retirement portfolios. In a follow-up session, Debra and Scott will dive into the specific steps and strategies for setting up SMSFs for property investment.
Stay tuned for more on the how-tos of property investment through super, or reach out if you’d like assistance with your next property purchase.
Watch the full discussion here.
About the author
Debra Beck-Mewing is the Editor of the Property Portfolio Magazine and CEO of The Property Frontline. She has more than 20 years’ experience in buying property Australia-wide and has extensive experience in helping buyers use a range of strategies including renovating, granny flats, sub-division and development. Debra is a skilled property strategist, and a master in identifying tailored opportunities, homes and sourcing properties that have multiple uses. She is a Qualified Property Investment Advisor, licensed real estate agent and also holds a Bachelor of Commerce and Master of Business. As a passionate advocate for increasing transparency in the property and wealth industries, Debra is a popular speaker on these topics. She is also an author, podcast host, and participates on numerous committees including the Property Owners’ Association.
Follow us on facebook.com/ThePropertyFrontline for regular updates, or book in for a strategy session to discuss your property questions.
Disclaimer – This information is of a general nature only and does not constitute professional advice. We strongly recommend you seek your own professional advice in relation to your particular circumstances.
