
The #1 Reason Why These Properties Soar In Value… While Others DON’T!
The Property CouchMon Sep 18 2023
The Armchair Guide To Property Investing mini-series:
- Based on the best-selling book "The Armchair Guide To Property Investing, How To Retire On $2,000 Per Week"
- Gives an insider's look at the making of the book, chapter by chapter
- Originally done as Facebook Live sessions during COVID lockdowns in 2020
- Instead of reading the book word for word like an audiobook, they told behind-the-scenes stories, chapter summaries, anecdotes, and backstories to bring each chapter to life
- All audio from these sessions has been brought together for this mini-series
- Aimed at those who have thought about retiring on $2,000 per week or living a life by design doing what they want when they want
- The series provides insights and guidance on how to achieve financial independence through property investing
The Tale of Two Houses (Location Importance):
- Story about two identical houses built during the gold rush era in Melbourne
- One house located in a leafy eastern suburb and one house located in Castlemaine
- Both houses were beautifully crafted with similar features and sizes
- Today, the house in Castlemaine would be worth around $1.5 to $2 million while the same house in Melbourne could be worth between $5 to $7 million
- Highlights the importance of location in property value appreciation
Demand:
- Population growth is a key driver of demand for properties
- People's ability to buy influenced by income levels and interest rates
Supply:
- Measures supply side through completions and new approvals for brand new properties
- Greenfield areas carry risk of oversupply due to subdivision development
- Mega developments with multiple towers also carry risk of oversupply
- Fully established areas are less likely to experience quick increases in supply
- Infill sites can introduce some risk of oversupply in established areas
- Future supply is also an important consideration when assessing the market
Economic Activity and Job Market Proximity:
- Economic activity is a key factor in property demand
- Areas with multiple industries and investment tend to have higher job opportunities and wages, leading to increased affordability for buyers
- Proximity to job markets, especially in bigger cities like Melbourne and Sydney, is highly valued by buyers who want to avoid traffic congestion
Human Behavior and Status Increase/Decrease:
- Human behavior influences property demand through aspirations for certain lifestyles, status, reputation, and success
- People are willing to pay a premium to live in desirable areas that align with their desired lifestyle and social standing
- Avoiding negative perceptions or stigma associated with certain areas can contribute to long-term growth potential
- Gentrification can change the status of an area over time, making it more desirable for owner occupiers