In the podcast episode, Aaron Downie joins host Brad East to share his insights on property investment strategies and market trends. As an experienced investor with a keen eye for analyzing market dynamics, Aaron offers practical perspectives on the controversial topic of investing in Perth. Through his personal experiences and expertise, he delves into the nuances of investing in units versus houses, emphasizing the significance of local market analysis. The discussion also highlights the impact of heavy reliance on mining in the Western Australian economy and the need to consider macroeconomic factors when making investment decisions. Aaron's practical approach and real-world examples make the content relatable and accessible, providing valuable insights for property investors seeking to make informed decisions. His expertise, combined with the host's industry background, lends credibility to the conversation, offering a thought-provoking exploration of property investment strategies and market dynamics. If you're seeking to gain a deeper understanding of the complexities of property investment and want to make informed decisions in the Perth market, this episode is a must-listen, offering valuable insights and practical perspectives to guide your investment journey.

Timestamped summary of this episode:

00:00:02 - The Controversy of Perth as an Investment Location

Brad and Aaron discuss the controversial topic of investing in Perth, addressing the current market talk and reasons why some believe it's the best investment place.

00:04:42 - Perth's Reliance on the Mining Sector

The conversation delves into the significant reliance of Perth's economy on the mining sector, with Aaron highlighting the massive 59% contribution of mining to the Western Australian economy.

00:09:17 - Affordability Crisis and Investment Strategies

Brad emphasizes the affordability crisis as a primary reason for investing in Perth, while also discussing the importance of considering different investment strategies and long-term goals.

00:13:53 - Units vs. Houses: Investment Considerations

Aaron challenges the generalization that land appreciates more than strata-titled properties, highlighting the importance of considering factors such as supply and demand in the market when evaluating investment options.

00:15:21 - Case Study: House vs. Unit Investment

The hosts share a real-life example of a client's bias towards purchasing a house over a unit, demonstrating the importance of challenging preconceived notions and considering all investment options.

00:15:41 - Investing in Units vs. Houses

Aaron and Brad discuss the pros and cons of investing in units vs. houses, emphasizing the importance of analyzing the local market and growth potential.

00:16:48 - Suburb Growth and Investment

The conversation shifts to comparing suburb growth in Newcastle, highlighting the significant difference in growth between different areas and the impact on investment choices.

00:18:14 - Risks in the Perth Market

The focus turns to the Perth market, with concerns raised about its heavy reliance on mining and the potential impact of macroeconomic factors on property investments.

00:19:47 - Diversifying Investment Locations

Aaron and Brad advocate for diversifying investment locations, suggesting alternative markets like Adelaide and Newcastle due to their consistent long-term growth and lower reliance on specific industries.

00:22:27 - Conclusion and Call to Action

The episode wraps up with a reminder to listeners to consider the long-term data and trends in potential investment locations, and to reach out with any questions or topic requests for future episodes.

ABOUT THE HOST

BRAD EAST

Brad East is the Managing Director of Wisebuy Home Loans. Brad is an award-winning mortgage broker and has helped thousands of clients gain finance to purchase properties. Wisebuy Home Loans is the go-to mortgage brokerage for clients wanting out-of-the-box applications approved.

Website → https://wisebuygroup.com.au

LinkedIn → https://www.linkedin.com/in/newcastlemortgagebroker/

Instagram → https://www.instagram.com/bradeast_mortgagebroker/

Facebook → https://www.facebook.com/bradeastofficial

In this episode of Talk Property To Me, Brad East chats with Aaron Downie, a seasoned expert from Mackenzie Buyer's Agency, sharing valuable insights on property investment and the ideal timing for purchasing property. Aaron's extensive experience in navigating the property market and his practical approach make him a relevant and credible voice on the podcast. The conversation covers the urgency of taking action in the property market, debunking the myth of trying to out-save market growth, and emphasizing the importance of seizing opportunities aligned with long-term goals. Aaron's personal anecdotes and practical advice provide a refreshing perspective, offering listeners valuable insights into the complexities of property investment and the significance of informed decision-making. The episode not only challenges common misconceptions but also lays the groundwork for future discussions on specialized property investment topics, making it a must-listen for potential property buyers looking to make strategic and confident investment decisions.

Timestamped summary of this episode:

00:00:24 - The Best Time to Buy an Investment Property

Brad and Aaron discuss the common question of when is the best time to buy an investment property. They emphasize that interest rates are just one factor and share examples of successful market timing.

00:03:16 - Taking Advantage of Market Conditions

Brad shares his personal experience of purchasing property during a time of market uncertainty and seeing significant growth in a short period. Aaron highlights the importance of understanding supply and demand dynamics in a market, rather than solely relying on interest rates.

00:06:40 - The Long-Term Perspective on Property Investment

The conversation delves into the long-term nature of property investment, emphasizing that property should be viewed as a long-term asset. They discuss the pitfalls of tracking property prices daily and the transactional costs of selling property.

00:09:28 - Influence of External Factors on Property Decisions

Brad and Aaron touch on the influence of external factors, such as parental advice and media narratives, on property decisions. They caution against taking advice from individuals who may not be where you want to be in terms of property ownership.

00:12:06 - Impact of Procrastination on Property Purchases

The discussion addresses the consequences of procrastination in property purchases, particularly when individuals have pre-approval but delay buying, only to find themselves priced out of the market. They highlight the compound loss over time due to delaying property purchase decisions.

00:13:43 - Urgency of Taking Action

Aaron emphasizes the importance of taking action in the property market without waiting. He highlights how borrowing capacities have decreased for some, stressing the need to align expectations and not try to out-save the market.

00:15:24 - Best Time to Buy

Brad and Aaron discuss the best time to buy a property, focusing on the importance of establishing short and long-term goals, regardless of whether it's for owner-occupiers or investors. They emphasize the need to buy as soon as one is able to.

00:17:16 - Rent Vesting Strategy

The conversation shifts to the rent vesting strategy, which has become popular in expensive markets like Sydney and Newcastle. They highlight the challenges of affordability and the impact of various financial factors on purchasing decisions.

00:18:22 - Overcoming Barriers to Purchase

Brad and Aaron discuss the willingness to buy property using lenders mortgage insurance and the opportunity cost of waiting to avoid such costs. They stress the importance of considering it as a cost of purchase and not delaying the buying process.

00:19:52 - Future Topics and Engagement

Brad and Aaron preview upcoming podcast topics, including an in-depth look at the Perth market, strata titled and titled properties, units versus houses, and new versus old properties. They encourage audience engagement for suggestions on future topics.

ABOUT THE HOST

BRAD EAST

Brad East is the Managing Director of Wisebuy Home Loans. Brad is an award-winning mortgage broker and has helped thousands of clients gain finance to purchase properties. Wisebuy Home Loans is the go-to mortgage brokerage for clients wanting out-of-the-box applications approved.

Website → https://wisebuygroup.com.au

LinkedIn → https://www.linkedin.com/in/newcastlemortgagebroker/

Instagram → https://www.instagram.com/bradeast_mortgagebroker/

Facebook → https://www.facebook.com/bradeastofficial

In this episode of Talk Property To Me, Cameron Smith from Waterford Financial Services joins host Brad East to dive into the intricacies of the Consumer Price Index (CPI) and its impact on interest rates. With Smith's expertise in finance and economic trends, he offers valuable insights into the trends in inflation, the analysis of CPI groupings, and the influence of the education sector on inflation. The conversation provides a critical perspective on the complex relationship between inflation, interest rates, and economic trends, emphasizing the need for a nuanced understanding of various factors that contribute to price fluctuations. By delving into the potential implications of economic factors on different sectors and consumer behaviour, this episode equips property investors and finance professionals with nuanced economic insights, enabling them to make informed decisions based on a deeper understanding of economic trends. Whether you're seeking to grasp the impact of CPI on interest rates or understand the unpredictability of economic trends, this episode offers valuable perspectives for navigating the complex world of finance and property investment.

Timestamped summary of this episode:

00:00:00 - Introduction and Season Update

Brad introduces Cameron Smith from Waterford Financial Services and announces Casey's temporary absence from the podcast. They discuss the start of season two and upcoming episodes.

00:02:18 - Predictions for RBA Decision

Brad and Cameron discuss their predictions for the RBA decision happening that day. They talk about the potential rise in interest rates later in the year and how economists' predictions have changed.

00:04:46 - Breakdown of CPI Groupings

Brad breaks down the CPI groupings, discussing the inflation figures for different categories such as food, clothing, housing, health, and education. They analyse the impact of each category on inflation.

00:09:32 - Impact of Education Sector on Inflation

Brad and Cameron delve into the significant increase of 5.9% in the education sector and its impact on inflation. They discuss the reasons behind the spike and its implications for individuals with HECS debt.

00:13:31 - The Role of Interest Rates in Inflation

Brad and Cameron debate the effectiveness of increasing interest rates to control inflation, particularly in sectors like education and insurance. They question the impact of interest rates on various demographics and sectors in the economy.

00:14:28 - Trends in Insurance Premiums

Cameron discusses the fluctuations in insurance premiums over the past few years, with some companies increasing policies by 515 percent in a year. He predicts a holding pattern for the rest of the year.

00:15:27 - Impact on Retail Sectors

Cameron highlights the potential negative impact of increasing home loans on retail sectors like clothing and food. He believes that increasing rates will not help these already struggling sectors.

00:16:14 - Potential Economic Factors

Cameron mentions the potential impact of war on shipping channels and the cost of imported goods. He discusses the possibility of a 0.25 increase and its minimal effect on people.

00:16:59 - Understanding Inflation

Cameron emphasizes the importance of understanding inflation as an average of subgroupings. He mentions that the RBA considers these subgroupings when making decisions.

00:17:42 - Conclusion and Call to Action

Brad and Cameron wrap up the conversation, encouraging listeners to provide feedback on the content and suggest topics for future episodes.

ABOUT THE HOST

BRAD EAST

Brad East is the Managing Director of Wisebuy Home Loans. Brad is an award-winning mortgage broker and has helped thousands of clients gain finance to purchase properties. Wisebuy Home Loans is the go-to mortgage brokerage for clients wanting out-of-the-box applications approved.

Website → https://wisebuygroup.com.au

LinkedIn → https://www.linkedin.com/in/newcastlemortgagebroker/

Instagram → https://www.instagram.com/bradeast_mortgagebroker/

Facebook → https://www.facebook.com/bradeastofficial