The 3 States Tradies Must Avoid & Where To Invest Instead

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"Not every location is a good investment location."
With the biggest tax changes in a generation now in play, getting your location right has never been more critical. In this episode, Joel and Brodie break down the three states they are personally avoiding and why — backed by real data — and where they're putting their own money right now instead.

🔨 Why tradies need to watch this:
Find out which three states have already run their race and why buying in them now could cost you years of stagnation and thousands in holding costs
Understand why Perth's median house price sitting above Melbourne's should have every investor paying attention
Learn the key warning signs that a market has peaked — and why we're seeing all of them in these three states right now
Discover why the new tax changes make getting your location right more important than ever — you can no longer be shielded by negative gearing benefits in a mediocre market
Find out why tradies overvaluing their renovation skills and undervaluing location selection is one of the biggest traps in property investing
See where Joel and Brodie are personally putting their money in 2026 — and why Melbourne is sitting at one of the best buying opportunities in years
Understand why chasing markets that have already had 80–90% growth is financial suicide for any investor trying to build a portfolio

Timestamps:
0:00 – Welcome back & what we're covering today
0:00 – Why location selection matters more than ever in 2026
1:43 – State #1 to Avoid: Perth — 91.2% growth in 5 years, median over $1M & affordability cracking
4:31 – Perth deep dive — units outpacing houses & what that signals about the cycle
7:14 – State #2 to Avoid: Brisbane — 85.3% in 5 years, Olympics hype & $1.2M median
10:51 – The danger of buying at the end of a cycle — a real story from site
11:51 – State #3 to Avoid: South Australia/Adelaide — 79% growth & affordability worse than Brisbane
13:38 – Why renovation skills won't save you in a market that's already peaked
15:29 – Where the real opportunity is — Melbourne, Hobart, Canberra & beyond
16:51 – Growth comparison: Perth 91% vs Melbourne 8.5% — the opportunity hiding in plain sight
19:03 – Why Melbourne's rental yields now stack up against Perth, Brisbane & Adelaide
21:32 – How the new budget changes make location selection the most critical decision you'll make
22:58 – Getting your first asset right — the mindset impact of a bad first investment
24:34 – Men's Finance Questions
28:04 – Rapid Fire Round
33:49 – Outro

Transcript

SPEAKER_00 0:00

If you clicked on this video because you're a tradie thinking about buying an investment property, but you have no idea where in Australia to put your money, you're in exactly the right place. We're naming the three states we think have already run their race and where you should be putting your money instead. Plus, we'll show you how buying in your backyard as a tradie is one of the most costly mistakes you can make and what to do instead. Welcome back. You're on site with the property tradies and Brody. Today we're going to be running through three states every property investor should avoid in 2026 and where to look to instead.

SPEAKER_01 0:35

Yeah, it's a great topic. Um, not every location is a good investing location. So I think being able to shine a little bit of light on where might be a good investing location and where maybe we should stay away from. Um, yeah, I think it'll be super valuable for everyone out there.

SPEAKER_00 0:51

Exactly right. We've seen so many different markets around the country move at different rates over the last five years. And this is gonna be a lot of our analysis as far as looking at where we've seen the most growth and looking where we can now see opportunity. And especially with the new tax changes and all the headwinds of interest rate rises, affordability, um, all these things are gonna be coming into um fruition in the coming months, and it's gonna be super important more than ever to invest in the right markets.

SPEAKER_01 1:22

Yep. Well, there's a lot to get into. There's been a lot that's been going on recently. How are you though, before we get stuck into the weed of things?

SPEAKER_00 1:30

Going well, going well. I'm good. Being stuck this week figuring out the new strategy for clients and um personally as well for the investment portfolio, but nothing changes too much. It's just uh the goalposts shift, which is super important to be in front of.

SPEAKER_01 1:45

Yeah, perfect.

SPEAKER_00 1:45

All right, well, it's good to know things are still steaming ahead. Let's steam ahead. Beautiful. Okay, so how we're gonna run this is we're going to go into our top three states around the country, which we are going to avoid at all costs. At all costs. At all costs. I mean, there is probably some very limited opportunities. Um, and there'd be some regional spots which might be okay, but for the most part, we are going to be avoiding these states personally and and for clients. So number one is Perth in Western Australia. So over the last five years, Perth has grown by 91.2%. And over the last year, it is up 24% in price. Yeah, that's just some absolutely outrageous growth. Outrageous figures. I've got a property in Perth myself, and this is at the point personally where we're looking at okay, does it make sense to sell this property and maybe move into a different market? Um, I've spoken to investors that have gone down the route of now purchasing in Perth, and that just scares the shit out of me because of that downside risk and what my what Perth has done previously. It's known to be a more of a boom bus market compared to Sydney or Melbourne. So when you see rapid growth like this, it does it does worry me.

SPEAKER_01 3:09

Yeah, look, obviously, the the title is Three Places to Avoid, but the podcast is more related to picking the right locations at the right time. I know you did that really well with Perth and you were able to reap the rewards and and really ride that growth wave that we just spoke about of over 90% over the last five years. Like you got in at a good time. Anyone getting in now who thinks that it's going to be able to continue on, I think it's a little bit of a fever dream.

SPEAKER_00 3:38

It is because I guess coming into the next point, um, a super important metric is understanding how affordable property is in the location for the people that are living there. Once it gets to such an unaffordable point, well, then price growth has to slow down, which is where we're getting to in Perth.

SPEAKER_01 3:58

Well, yeah, just on that, uh unaffordability, the median house price is over a million dollars now.

SPEAKER_00 4:03

Yeah, 1.06, um, which is is crazy. Um it's above Melbourne, which is unfathomable.

SPEAKER_01 4:11

For anyone who knows the property market or just knows anything about Australia, that is, like you said, unfathomable. Like if we had said to our grandparents that one day Perth will, the average property in Perth will be worth more than the average property in in Melbourne, I think they would have uh asked us what we were smoking.

SPEAKER_00 4:30

Yeah, definitely. And I guess looking at the affordability, Perth's isn't as bad as some other states. So the the price of property compared to the incomes sits at 8.1 times. Now, this is off of uh figures from September 2025. So in the period from then to now, we have seen some massive growth in Perth. So this would be a lot higher. Um, so that's very important to note. Perth does have strong incomes, um, their residents compared to other states. So that does give it a little bit more leg up for prices to go further, but no doubt we're getting closer to the end. And what we saw with Perth is initially the houses grew, and now we're starting to see units um outperform uh houses. And that is what you see closer to the end of the cycle. People that can't afford houses then go into units. So they're up 26.1% for the year.

SPEAKER_01 5:26

Yeah, it's what we call the affordable market. And like you said, when people get outpriced of what they want to purchase, they end up purchasing what they can afford. And uh that that most of the time turns out to be units and and apartments, and you know, they have to follow suit. They one can't be expensive and the other stay cheap forever. Yep. It's just simple economics, like it will eventually follow suit, it'll have its own growth wave, and 20 uh 26.1% annually is that's you know, better than Melbourne across the board.

SPEAKER_00 6:01

So out outpacing uh house price growth, and that is a strong characteristic that you're closer to the end of a cycle because people funnel down to those affordable products. And then lastly, I think it's so important as a trade. Um, a lot of people want to renovate to increase value, but especially with these new changes, if you go and create $50,000 or $100,000 worth of growth, but you have um five years where there is no growth in the location, you're gonna be in a much worse situation than focusing on that growth as well. So I'll pop that in there. That's good. That's it for Perth. Again, I guess I'll touch on an asset I bought there, which has grown by about 120% in four years. So when you're looking at 91.2%, that is spread over a lot of different markets. Um, there's a lot of markets that have grown by a lot more as well. So this is why I'm looking at this asset and now potentially selling.

SPEAKER_01 6:54

Okay, cool. What's the next one we got on?

SPEAKER_00 6:56

State number two is going into Queensland and Brisbane. So this has been Brisbane's changed massively over the last few years. You've obviously got the Olympics coming. Very exciting. Is exciting, but is also a beware for property investors. Okay, you've got infrastructure projects coming, but at the end of the day, if prices are too unaffordable for people, they can't keep growing. So don't have the Olympics as this, okay, this it's going to keep growing till then uh in the back of your head. But over the last year, prices are up 18.5%, and over the last five years, 85.3%, with the median house price sitting at over $1.2 million.

SPEAKER_01 7:39

Yeah. So once again, just crazy numbers. Um, I think this probably would might be, and look, fact-check me if you want, but I I don't know of a time where Brisbane has been more of more expensive than than Melbourne. Like we're looking more at a Sydney type landscape here, these prices.

SPEAKER_00 7:56

Yeah, I think there has been a fundamental shift, and Brisbane and and and Queensland as a whole has become a lot more like Sydney in the way that it operates. Um, and obviously having the Olympics and all the internal migration from other states. Um, but nonetheless, it is very out of the ordinary for it to be this high above Melbourne.

SPEAKER_01 8:19

I think you touched on a great point, which is the internal migration. Yep. And us being from Victoria, we saw a lot of people leaving through COVID. And there was a massive COVID boom, which if you follow the property market, you would have seen that. And it's just kind of continued on from then. So think about it. COVID was coming up on six years ago. Property booms can't last forever. So we really have to pay attention to okay, when did this cycle start? And then what is pushing the cycle to this point? And how much longer can the everyday person afford the prices that the cycle is now, you know, giving us?

SPEAKER_00 8:56

Exactly right. And now looking at the affordability compared to Perth, Brisbane sits at 9.7 times, um, which is property prices compared to income. So a fair bit higher. Um, and then again, you've had a fair amount of growth from September last year. So as far as affordability, Brisbane is sitting worse than Perth. Um, and then you also have units up 21.5% annually. So very similar to Perth. You've had strong growth between houses and units, but again, we're seeing units over the last year outpace that house price growth.

SPEAKER_01 9:34

Yeah, I think people always kind of assume that units don't do well just because it's a cheaper asset, maybe a lesser of a land value, which is all true, but just because it's cheap doesn't mean it's not gonna have its time in the sun.

SPEAKER_00 9:49

Correct.

SPEAKER_01 9:49

And so if that's all you can afford and you're you're getting in at the right time, then by golly, go for it. Yep. But it still comes down to a timing issue. If you were gonna buy a unit now in Brisbane or Perth, is that a smart play?

SPEAKER_00 10:03

Yeah. Correct. I mean, at the end of the cycle, you'll probably get a little bit more growth, but even just on those figures of how much they've grown in a year, it doesn't make sense to be buying assets after that much growth.

SPEAKER_01 10:14

Well, property's a long game. Correct. And uh, if you're getting in right at the end of the hot period, well, then you're gonna be in for the long run, but you're not gonna see many results.

SPEAKER_00 10:22

Exactly right. An example of this, I was working with a guy and was just talking about investing and where I have properties, and he bought a property in the late 2000s in regional Queensland. Um, I think it was it could have been around 2012. I don't know the exact numbers, but basically he bought in a regional Queensland market at the very back end of its growth cycle. So the headlines and everything were saying this is the area to invest in, and he got in at the very end. He held that property for eight years and he sold it at a loss. So this is why market timing is is so important, and especially avoiding markets that have had substantial amounts of growth because when you look to these particular markets and their past history, they will usually have a really strong growth period and then a fair amount of time of stagnation.

SPEAKER_01 11:15

Yeah, yeah. It's just about doing your research and um just not buying blind. Yeah, too many people buy blind. It's like this is what's gonna be one of the biggest purchases of your whole life. Why are you just buying blind? Like, you know, people don't go to a restaurant without reading a review. Yeah, like just put in a little bit of effort, guys.

SPEAKER_00 11:32

Yeah, and I think on that note, it feels safe to be investing into a market that has performed well over recent years. I think that's the the common mentality that people have, but it couldn't be further from the truth. You want to be investing into the markets that have had very limited growth because the upside is is is much larger. Yep. And when you're getting into markets that have had that growth, the downside risk is quite large. Fantastic. All right. State number three. And before I get into state number three, what I'll preface is I haven't even included Sydney here. Sydney's a basket case, no one's investing there. Um, we're going into the states that people are actually looking into. So state number three is South Australia. Now, South Australia, I would say has a combination of Queensland and Perth into where it's at in the cycle and also its affordability. So if we look at the past five years, it has grown by 79%. Over the last year, only 11.3%. Now, what I'll say is Adelaide has had some strong growth um prior to that five-year period. It started growing before these markets. Um, so as far as the five-year figure, it's a little bit lower. But if we stretch that horizon, um, you'll see a bigger picture as far as its cycle.

SPEAKER_01 12:50

I actually think it's it's good that we've been given this five-year figure because it the growth did start earlier, right? The cycle did start earlier, but you can clearly see it's tailing off. Correct. So it's just proof that cycles don't last forever.

SPEAKER_00 13:02

Exactly right. So on that note, the affordability um as far as income to asset prices sits at 9.8 times, which is fairly on par with Brisbane. But the growth from that September period has been a little bit lower. So now we're starting to see Brisbane at pace, Adelaide from an affordability perspective. But 11.3% growth, it is quite strong, but it's not blowing it out of the water, right? So we're starting to see that decline come in, and that's what happens when affordability gets stretched. So Adelaide's a little bit further down the line than these markets. Um, and then units are up 12.3%. So again, like these other um markets, units again have outperformed house prices. And this shows us what happens at the end of a gross cycle.

SPEAKER_01 13:53

Yeah. Okay, cool. Cool, cool, cool. Well, yeah, the other thing I'll probably touch on with that is, and we we spoke about it earlier, um, tradies. You all, a lot of us think that we can do these value add rentos and um and you know, maybe we can snag a deal. It's about just following what works. Yeah. And if we're following the data and we're understanding that a place has run its course, just by adding um value to the property, it's not gonna be enough to really level up in property growth and building a portfolio. Definitely. So if you think you can snag a deal and then add a bit of value in one of these, in one of these um areas that have already run their race, you're still not gonna do as well as someone else who's getting into a market that's just starting their cycle.

SPEAKER_00 14:39

100%. I would always rather be in the right location than pick up an asset that I can add value to. Prime example, Perth. We're from Melbourne, right? Yep. I bought my property in Perth uh 2022, paid 410, it's now valued over 900,000. If I bought the same asset in Melbourne and put a shit ton of work into it and um created some value through through innovations, I still wouldn't have made half as much of the money as I did buying in Perth. And I think that's the probably the biggest trap I see tradies make is overvaluing their skills and undervaluing getting into the right locations. Could not have said it better myself, man. Hit the nail on the head. So, and and this is all about building long-term wealth. And on top of this, which is where we'll get into next, um, before I get into it, that that's that is the three states. Um, we're not touching any of them personally and for clients. Um, but on that note of location, now is more important than ever because of the new tax changes. You can't buy an asset and be shielded through the negative gearing benefits because you're not going to have that tax write-off anymore.

SPEAKER_01 15:53

Yeah. And look, it's a shame that we don't have that, but it's, yeah, we we've said this a couple of times. I think it's going to be a mantra going forward. The goalposts have moved. So we just have to adjust how we're buying and we have to be smart where we're buying. Yeah. So if we're buying in locations that um have already done what they've done, and that look, they've they've achieved some great growth, yeah. It's it's just going to be silly buying in there um at an even smaller, a smaller lending amount because you just don't have the the extra cash to get into a decent asset.

SPEAKER_00 16:25

100%. And I think this is setting up tradies for financial suicide because again, if you buy an asset in this market, put money and time into it, and then it doesn't grow for 10 years, the amount of money you're gonna have to pour into holding this asset is only going to increase. Yep. Meaning that, you know, getting into the right markets at the right time is is more important than ever. And I can't stress stress that enough. But now let's get into some of the markets that we just spoke about. So, and look at the growth of some of the other states to show people where the opportunity is. It's always good to compare. It is. So we've got Perth over the last five years, 91.2% of growth. Okay, so Brisbane, the highest growing the highest. Number two, Brisbane, 85.3, and Adelaide, 79%. Okay. So they're the top three states, which we've picked out to totally avoid. Now let's have a look at the other states which we haven't touched on yet. Sydney sits at 25.4%, Melbourne, 8.5%, Hobart at 23%, and Canberra at 22.4%. So as we can see there, if we compare the difference between Perth and Melbourne, we've got what's that, 73% rough, uh, sorry, 83% roughly of growth difference.

SPEAKER_01 17:44

Yeah, it's crazy. And look, a lot of it has to do with the sentiment in Melbourne um investing. We had land tax and and a bunch of other different things that the government kind of threw curveballs to investors, um, in the investors who are looking at Melbourne. But we have to always remember that the game we're playing is capital growth. Correct. And we want our properties to grow as much as possible. So, yes, there are gonna be some um some hiccups along the way or some some pay-to-play, which is what I like to call it. You're gonna have to pay to play in Melbourne. But if you want to achieve the best growth in Australia and give yourself the best opportunity, well then it's just the cost of doing business.

SPEAKER_00 18:27

Exactly right. You've got to set yourself up with the runway for growth. Yep. And Perth, Brisbane, and Adelaide always like to think of growth as like you're landing an aeroplane, right? If you've got to land an airplane on a very short runway, it's gonna be very hard to land that plane. But if you give yourself a huge runway of a kilometer, it's gonna be very easy to land that plane and give yourself the runway to make sure that that happens. Um, but on that note as well, Sydney obviously only at 25.4%. But what we need to understand here is it's the most unaffordable market Australia-wide. Um, there is, I guess, some opportunity in the cheaper priced apartments. But as far as houses and rental yields, they're completely shot. And what I will say as well, when you were speaking about Melbourne, um, with the amount of growth in Perth, Brisbane, and Adelaide, the cash flow on a Melbourne asset is now virtually the same as buying a house in these markets as well. When you take into land tax and other costs, um, which again, historically, that's completely out of the ordinary and um makes sense as to why it's a great opportunity.

SPEAKER_01 19:33

Well, yeah, it's it's an awesome point that you raise because once upon a time, those those areas, per uh Perth, Brisbane, and Adelaide, they had great rental yields. Yeah. But they're not great anymore because the price has risen by so much, and of course, rents can only rise so fast. So they haven't risen at a pace that can keep up that high rental yield that they initially had at the start of their cycle.

SPEAKER_00 19:58

Yeah.

SPEAKER_01 19:58

So yeah, it's um the values in in these these areas that haven't grown yet.

SPEAKER_00 20:04

For sure. So when we're looking at opportunity um personally and with a business, we're looking heavily into Melbourne uh and Victoria as a whole. So you've got Metro Melbourne markets, which are really affordable and um have plenty of opportunity. Then you've also got regional Victorian markets and then different asset types, such as apartments as well. But if we go through each individual state, Sydney, again, we're not looking at from a house perspective and the apartments, there is some opportunity, but we're not buying there personally. Melbourne, opportunity in all different areas, regionally, metro, and also in all different asset types. Yep. Hobart and Tasmania itself, there's definitely some opportunity. But what people need to understand is it was coming off of a large um growth cycle back on the back end of 2018 to 2020 and prior to then. So it's um kind of a second win market, whereas Melbourne's right at the bottom. And then Canberra as well is another one with some opportunity, but again, um, if we're looking at those negative gearing changes, it's gonna be harder to hold an asset in Canberra as well.

SPEAKER_01 21:18

Yeah, yeah. It is New South Wales at the end of the day, and uh it can be an affordability issue there. Cool.

SPEAKER_00 21:26

So, why the budget changes make picking location more important than ever? So, under the old rules of having a negatively geared property, um, you could be holding an asset in a mediocre mediocre market, and that would be subsidized by the tax benefits. But as I mentioned before, you're not going to get that benefit anymore. So being an active investor and having properties cover themselves is going to be more important than ever. And you're not gonna be shielded by that tax outcome.

SPEAKER_01 21:56

Yeah. Look, there's um there's plenty of different ways. This budget has made life difficult. Um, but yeah, when it comes down to to location, there's we got to go where it's affordable, and especially for people whose whose uh borrowing capacity has taken a fair chunk. Yeah, and we've like we've spoken to to brokers where they've seen up to 30% be be taken away from borrowing capacity. Well, then you have no choice but to move to affordable markets. But we gotta remember we're moving to affordable markets that haven't done that haven't run their race. Exactly. So this is how we narrow down where we want to purchase.

SPEAKER_00 22:34

100% because capital growth is the way to financial freedom. But like imagine you buy a property in Perth, Brisbane, or Adelaide and it's costing you $15,000 per year to hold. And if we look at past history, the the market stagnates and it doesn't grow for eight years. Um, you've got 15,000 times eight or 10, you know, you've got 120, 150,000 worth of cost, those holding to hold an asset. And if it underperforms, um, you're barely gonna turn a profit.

SPEAKER_01 23:04

Yeah. And look, we're in this for profit, aren't we? Exactly. We're not in this to lose money. Um, and so yeah, you're right. The holding costs will just pile up. And when you're investing in property, you want to make sure that it's actually feasible, you want to have a good experience doing it because you almost got to have a good experience um to build the portfolio to eventually get out of the rat race, so to say.

SPEAKER_00 23:27

Yep. Um 100%. And it's so important with your first asset to be buying in a market because that example of the guy on site, that was his first investment property. And for the rest of his life, he's never invested again and he's got a horrible mindset around investing as a whole. So getting your first asset right is so important from building the portfolio, but also to maintain your ability and mindset around investing.

SPEAKER_01 23:54

Yeah, it's a shame when you hear stories like that.

SPEAKER_00 23:56

Yeah.

SPEAKER_01 23:56

Um, but that's yeah, that's why we try to help as many people as we can and educate um because you can you it's not a hoax. Like you can get ahead with property. It's got to make sure you do it right.

SPEAKER_00 24:08

100%. And um cool. So any other points, Brody, you want to touch on at all?

SPEAKER_01 24:15

Um, no, look, we we kind of hit the nail on the head that the biggest thing is understanding how areas and locations have moved and why they've moved and what's pushing them to move. And I think we've touched on that a fair bit with affordability and um the different cycles that they can go through. Yep.

SPEAKER_00 24:33

I'm keen to get into the men's finance. All right, let's get into it then. So, our favorite segment, the men's finance uh questions from Facebook. If you don't know what we're talking about, men's finance advice is a group on Facebook. People put in their questions and we love to review one each every episode. Yes, sir. Yes, sir. So, Brody, first one is for you from pastel apricot 5926. Younger generation and housing is the title. Okay. Younger generation has a spending/slash certain lifestyle issue that makes them can't afford to buy a house. I'm not saying all of them, but the majority of the younger generations are not saving for a house deposit. They're too busy spending it. Is that what we are seeing?

SPEAKER_01 25:17

I think Buddy needs to learn how to use grammar and and structure a sentence. But um, look, maybe a little bit for sure. There there is a an issue with our generation where they don't have um like that delayed gratification. They want everything now and they need to have everything now, and if they want something, they just buy it. I think, you know, tapping your card has a big um has a big influence on that and what they see online, they think is normal, 100%, all of that. However, if you're telling me that it's um was harder to buy a property back then, I think, I think you're kind of full of it. I think it is harder now. Um just the the what what's always what's that stat where it's like how many your times your your income it costs to to buy a property? Yeah, it's absolutely astronomical nowadays compared to how like our grandparents were. And this guy sounds like a grandpa, to be honest. Um look, I think you can see it both ways. Yeah, I'm I'm impartial.

SPEAKER_00 26:19

Yeah, I I definitely think it's a combination of both. I feel like there's more reason for people to play the victim mindset today and not try to get ahead. Um, and I think that causes people to not worry about their financial future and then go and blow their money. Yeah. So I think it's a combination of the two for sure.

SPEAKER_01 26:36

Cool. All right, my men's question for you. This one's from Nick. All right. New strategy is the heading. $1,000 every Friday invested into um whatever. Wait, wait, what? I'm gonna start again. So I read ahead and then started laughing. My bad. Uh $1,000 um every, I think he means to say every Friday, invested into whatever Claude or Grok says um has the most upside potential and can't touch anything for 10 years. No research, no feelings, just do it.

SPEAKER_00 27:13

Thoughts. Thoughts uh Nick is looking for Hail Mary here. Um, and I think this is the issue with a lot of uh young people that are trying to get out of the rat race is you're trying to find a strategy that's gonna get you from point A to point B in the shortest time frame. And all of these uh strategies is they're not investing, it's just gambling at the end of the day. So if you don't know what Claude Groc is, it's an AI it's just like Chat GPT. So he's basically saying use that to give you investing advice um and do it without research and no feelings. Hence why I laughed when I read ahead. I couldn't believe that was an actual question. Yeah. So this is where it's so important to understand that getting to financial freedom or whatever position it may be is gonna take 20, 30 years, and that having this mindset and investing this way is gonna stretch that time frame out further until you create that long-term mindset. Yeah, no, well said, man. Well said. All right, let's get into the rapid fire questions. I'll ask you five, Brody, then you ask me five. So as a tradeie, I can renovate properties myself and add value. Does that change the argument for buying in my own state?

SPEAKER_01 28:30

Ever so slightly, but the grand scheme of property investing, no, it doesn't. It doesn't change the argument. Our argument is you buy where is the best location. If that location so happens to be where you live, then you've hit the jackpot. Yeah, right. But most of the time it's not. 100%. There are 16,000 suburbs in this uh in this country, mate. And if you think the best one to invest in is your suburb or surrounding, it's just unlikely.

SPEAKER_00 28:56

Exactly right. Think of Renault's as an add-on to the long-term vision of your portfolio. It's never the crux of it. All right, hit me. What are the early warning signs that a market has peaked? And are we seeing them in Perth, Brisbane, and Adelaide right now?

SPEAKER_01 29:10

Yes, um, we are seeing them in those locations and some signs. Uh, we kind of touched on it earlier. It's when those lower end assets are really seeing heavy growth. Because then if those lower end assets have done their number, it's like what else is there? Like, there's no there's no more growth to be had. And so then investors start looking elsewhere for other opportunity, and that's when we start seeing the curve start to drop.

SPEAKER_00 29:35

Yep. If I already own in Perth, Brisbane, or Adelaide, should I sell?

SPEAKER_01 29:40

Well, it's a tough one. It depends on your scenario. But given the new rules and regs that have come in, you might want to take full advantage of those negative gearing benefits if you have them. And also you might not want to um, you might want to want to have to deal with the new CGT discount, uh, new C CGT tax that's coming in. So I would be speaking to the right professional before making any hasty decision.

SPEAKER_00 30:10

Yep. What's the number one thing traders get wrong when picking a location?

SPEAKER_01 30:16

Thinking thinking that they because they have grown up around houses and they they know their their area like the back of their hand, they think that it's the same everywhere. It's not. There are so many different factors, um, both data-wise and and different projects that are going on. There's so many different things that that go into why a uh a market moves. And yeah, I think just because you you see houses every single day around you doesn't mean you you understand the property market.

SPEAKER_00 30:50

Yep. Does a buyer's agent really make that much different when it comes to location selection?

SPEAKER_01 30:55

No doubt. Yeah, 100% they do. And look, for the simple fact is they they're doing it every single day. They're living and breathing. Well, the good ones are living in breathing locations and property types. And they also um they have paid, paid sources that they're that they're pulling this data from and they're they're under. Well, I know we are, we're pulling the data from so many different paid sources so that we can give our clients the absolute best reassurance that we're buying in the best locations. Yep. Cool. Was that the five? That's it. All right, let me hit you. In 10 words or less, what makes a good investment market?

SPEAKER_00 31:33

Investment market, I would say um runway for growth and uplift potential.

SPEAKER_01 31:42

Nice, I think that was six. Did well um in Melbourne, actually buying um, sorry, is Melbourne actually a buying opportunity right now, given it's only grown 8.5% in five years?

SPEAKER_00 31:57

100%. That's the opportunity right there. We've got many years with limited growth. And if we look at long-term history, Melbourne has historically been one of the best markets Australia-wide. So that means we're closer to a really strong growth period than we are to a low growth period. Awesome.

SPEAKER_01 32:17

Should I wait for these markets to drop before buying or look elsewhere now?

SPEAKER_00 32:22

I would be again, it depends on your situation. If you're rent vesting and you live in one of these states, which we said you should avoid, I would be looking elsewhere because um you're gonna maximize your growth. And if the goal is to say buy a home one day, you're gonna be able to get maximum growth in these other markets, and then you're gonna be able to bring back your money into your home state and buy the asset that you want to live in.

SPEAKER_01 32:46

Perfect. Two more to go. What's one data point every tradee should check before buying any market, in any market?

SPEAKER_00 32:55

I think the first one, again, which I'm always gonna harp on, is just recent growth in the last five years. If you were gonna look at one data point in in isolation, it's going to be that.

SPEAKER_01 33:07

Yeah. No, you hit the nail on the head. Um, no point investing somewhere that has already run its race. All right, last question. If you had $100,000 to invest right now, what market would you put it in and why?

SPEAKER_00 33:22

Well, $100,000, that means it's going to depend on your borrowing capacity. Um, I'd definitely be putting it into the Melbourne market. Um, if you didn't need to worry about cash flow as much, there's some really good metro and regional house locations around the six to seven hundred and fifty thousand dollar mark that will get some really strong growth from the first home buyers grants and also the investor demand. If you're a little bit more cash flow conscious and you have a lower budget, I'd be looking to boutique uh apartments or units in the Melbourne market with a stronger yield. And oh, I also think we'll get some really good growth from them as well.

SPEAKER_01 34:02

Some golden nuggets in that one there. Yeah. I'd um I'd be doing the exact same. Beautiful. Well, thanks everyone for tuning in again. Uh, we'll catch you on the next one. Yeah, appreciate it, guys. Talk soon.