Property Hub - Investment Insights & Inspiration - Realty Talk: 2022’s Regional Rising Stars

Episode Date: December 11, 2021

Since the advent of Covid, the exodus to affordable lifestyle has seen a massive property boom in the regions.  So, where will the regional opportunities continue to be in 2022? Money expert Effie Zahos and property analyst Terry Ryder join us in part 1 of a 2 part special series of shows (this week and next week) to reveal their pick of the upcoming areas from Canstar’s recent Rising Stars report. RealtyTalk is your trusted voice in property investment and Australia’s most popular online property show.    Founded by Kevin Turner and hosted by property expert Bushy Martin, RealtyTalk brings you exclusive interviews with Australia’s property industry leaders who deliver the latest, red hot property investing news and insights.  Subscribe now to get the latest episodes delivered to your inbox three times a week. RealtyTalk is brought to you by Realty, Australia’s leading search and social property distribution platform that helps investors like you beat the crowd, giving you the earliest access to property opportunities, listings, and insights. Check out Realty. RealtyTalk is hosted by top property investment expert, author, and founder of KnowHow Property, Bushy Martin. Find out how Bushy’s KnowHow team helps investors unlock freedom with finance and property here, and check out Bushy’s podcast Get Invested.  RealtyTalk is supported by BMT helping property investors save thousands of dollars each year by maximizing tax deductions from investment properties. Find out more.See omnystudio.com/listener for privacy information.

Welcome to Realty Talk, the show that brings together the country's most authoritative and respected property experts. Follow us on all the socials and subscribe for updates and exclusive offers. Realty Talk is powered by realty.com.au, connecting buyers, sellers and agents differently. Greetings and welcome to this week's Realty Talk, the longest running and most popular property show in Australia. I'm Bushy Martin from KnowHow Property Finance, and we're breaking with tradition over the next few weeks to bring you a special series that share a range of views from property industry leaders on what the future holds for property across the country in the days

ahead, so that you can make better fully informed property decisions in 2022. To kick off our future forecast series, this week we start with part one of a two-part special feature that unpacks leading comparison website CanStars recently released an inaugural Property Rising Stars report and we're joined by the co-authors Effie Zahos, CanStar's editor-at-large, along with Terry Ryder, the leading property analyst and founder of Hotspotting to reveal the details and the opportunities. This week we start with a focus on the regional rising stars given the outperformance of regional areas since the advent of COVID and next week we're going to drill into the capital city projections. We've got a stack of surprising and very informative

forecast to unpack. So let's get on with the show. Successful property investment is a game of finance. Do you have the right team and the right game plan? Realty Talk is brought to you by KnowHow Property. More than mortgage brokers, Bushy Martin and his team of investment architects set you up with a sustainable strategy structured to lower your costs, tax, risk and stress while increasing your capacity for growth. KnowHow has helped over 1,900 homeowners and investors secure more than $800 million in property wealth. So get set to live more, work less, and live your legacy. Want to know how to invest in your freedom? Visit knowhowproperty.com.au. Greetings and welcome. Now, most of the reports published by property research

organisations unfortunately are backward looking. They tell you what happened in the past, focusing on past price growth and it covers areas like the past month or maybe the past year. But real estate's constantly changing and often the new trends that impact property markets across the nation are very difficult to decipher. So for this reason, leading comparison website Canstar has teamed up with highly respected research house Hotspotting to create a report that provides a glimpse of likely outcomes in the next year by examining a series of forward-looking indicators. The resulting Rising Stars report divides Australia into 14 major market jurisdictions, six state regional markets and our eight capital cities, and ranks these 14 markets on their

prospects for growth in 2022. So to discuss the Rising Stars report in a two-part Realty Talk special that splits the six regions versus the eight capital cities, we're joined by report authors Evie Zahos, the money expert and editor-at-large from Canstar, along with industry veteran Terry Ryder, leading property analyst and founder of Hotspotting. Welcome to Realty Talk, Evie and Terry. Hey Bushy, hey Terry. Great to see you both. And thanks for calling me a veteran. Well, I'm right alongside you there, Terry. It's much more polite than saying old, so I'm hoping you'll excuse me for that because I'm exactly the same gambit. Experienced. Experienced and mature

and wise, I think, are the other terms that we like to use, Terry. But really appreciate you both coming on. It's a fantastic report having read it from cover to cover now. So to sort of kick into it, Effie, can you sort of start by giving us a rundown on why you commissioned the report and what has been the approach and methodology that you've taken. Yeah, we're extremely proud of this report. Hotspotting has done a brilliant job at the analysis and being, you know, really the engine behind this. The idea really came about, I think someone like myself has been in the industry for so long and seeing what's happened over the past

year or so. I mean, property has been pandemic proof, hasn't it? Nobody really foresaw what was going to happen with property prices. And it's been crazy. So people's interest in property is at an all-time high. But putting that aside, and I think you hit the nail on the head right up in your introduction, what we're hoping to get out of here is a report that does have forward-looking indicators. It's not just grabbing for a headline. And I do want to make this clear that this is not the be-all and end-all. Research at the end of the day does end with you, the buyer. you need to have your own due diligence but it's so hard to work out where do I start looking for these properties how do I start looking at and the metrics that Terry has used here that there's a lot

gone into that so at the very least this report does the hard work for you as to where to start looking and so whether you're buying your first home because that's one of the surprising elements of this the ranging prices or you're upsizing or you're downsizing or you're buying maybe your first investment property. This report goes a long way to narrowing down those suburbs for you to look at. And what I do like is the way Terry's broken it up into, I mean, we wanted it very consumer friendly. So 14 jurisdictions, as you spoke about, eight capital cities, six regional areas, and then look at these five key metrics. What is it that makes prices go up? What's going to be a good buy and so we looked at sales volumes quarterly price growth vacancy rates rental growth

and the all-important one infrastructure spending combine all that then you've got 110 rising star suburbs that you can kind of sink your teeth in and have a look at closely yeah absolutely brilliant so you sort of put some context around this before we sort of drill into the details with terry effie what are the macro level drivers that you're seeing that are likely to influence property over the next 12 months wow well look even like right now as I you know we're talking you've got Australia's biggest bank coming out and saying now okay what we're going to see is property prices peak next year and if you want to buy 2023 is the year be interesting to see how these you know that pans out I think what's going to be driving property prices at the moment is let's have a

good look at what it's costing consumers to buy houses because that's a big key driver we know already the RBA has turned off the tap to cheap funding for the banks and so that's why you're seeing all these fixed rates go up but the big problem for consumers is that on the one hand you're seeing say fixed rates go up like a major bank like Westpac increasing their fixed rates three times in the last month but then you've got other lenders cheapest in the market reducing their variable rates I think the rock bottom price now is 1.77 but what's going to happen here is that obviously, and this is good news, the economy is doing well, we're getting on track and coming out of this. And what that will see is that probably the inflationary pressures are going

to move that interest rate cycle a little bit forward. And if that's the case, I think that's going to be enough here to kind of soften the market a little bit. And we've also got APRA jumping in with those, you know, regulation credentials. Yeah, exactly. That's going to slow things down a little bit so look I think you know prices themselves will they hit drop bottom probably probably not unfortunately I think when you buy any asset class it's not about time in the market it's time in the market and look when you think about it the medium house price in Sydney is what about 1.3 at the moment even if CBA gets that right and it's a 10% drop you save about $133,000, but it's not cheap still. So this is why a report like this is very important to

buy well, because so long as you buy well, and you don't have to sell when things turn, you know, a property does well over the long term. Yeah, spot on here, beautifully said. So against that backdrop, and before we sort of drill into the nitty gritties with Terry, what are your key headline findings of the Rising Stars report, Effie? Like I said, I was pleasantly surprised to see the range of affordability in the suburbs that Terry has picked to keep your eye out on. That I like, that gets a big tick. And also the strength of the regional suburbs. We know over the past 12 months that, I'm not sure, Terry, did you coin this word? Is that yours, the mass exodus? I'm not quite sure. You have to clear that up with me because I think you did.

that rise of people moving out, because let's face it, once we were able to work wherever we wanted to work and that whole affordability pressure, moving out further became a lot more acceptable for a lot of people, and that drove some prices up too. So I was surprised to see that the top three spots were regional spots. Yeah, yeah, no, very interesting.

Well, that's a perfect segue into perhaps giving us a rundown on the ranking of them. and i'll open the floor to either yourself epi or terry to give us a rundown in that battle between the eight capital cities in the six regional areas how have they ranked in terms of future capital growth from top to bottom well um yeah i was a little bit surprised at the rankings too now i'm not totally but uh some some of the locations that that ranked a little bit higher than i expected and some are much lower than i expected but even though i was putting the report together but um you know we used five metrics that are all forward-looking because as as we've

already discussed um most of what's provided to real estate consumers and media and the various research organizations is all backward looking and what we know to be true is that the past doesn't inform the future very often um locations that perform very well in the last five years aren't necessarily going to be the leaders in price growth in the next five and those that have performed poorly in the past can turn out to be the the hot spots of the future because things change in real estate things change in local economies and therefore locations such as the sunshine coast for example which five years ago i wouldn't have recommended because it was basically a tourist town but a lot has changed in that economy through infrastructure spending being a

big metric in that regard and it's become one of the national leaders on price growth for the last three years. But those are the thought processes that have underscored the preparation of this report. Terrific. So if we sort of go from top to bottom just to sort of set the scene and then we'll drill down into those in some detail. Can you sort of give us a run through on how those 14 jurisdictions ranked? Ranking number one was regional New South Wales and number two regional Queensland and that didn't terribly surprise me because we know that um that one of the absolutely dominant trends that are driving real estate markets across the country is the one I call the exodus to affordable lifestyle and both those states are underpinned by strong economy big

infrastructure spending all the metrics we use um pointed us very strongly to those those locations number three was a bit of a surprise regional western Australia but again similar rationale the the state economy of western australia has improved enormously um with the rise of the resources sector again but also um also very influential in the the rise of west western australian regional areas is the lifestyle areas you know south of perth in particular beautiful lifestyle areas like mandarin um margaret musselton yeah yeah yeah so um when you when you think of it in those terms not not necessarily a big surprise then cindy came in number four as the leading capital city and Canberra number five no great surprises there

Darwin number six and that may surprise some people but you know the northern territory economy has improved a lot Darwin's been in the doldrums for since the resources but the big resources being going back to 2012-13 since that stop Darwin's been in the doldrums but it's recovered very strongly in the past 12 or 18 months and it's rising up the rankings perhaps what surprised me most of all was that Brisbane ranked only number eight and we'll perhaps talk about that in a little bit more detail I think if we do the report again in six months time Brisbane will rank higher. But it's interesting Terry if I would just jump in you had Brisbane as number one for infrastructure and that's going to get even more exciting now with

olympic games so um and that's the the beauty about what terry's done in their report as well that um for each of those uh you know jurisdictions there are the rankings within those five metrics that um you know uh readers can have a look at as well yeah yeah bring at least in and as you've well pointed out there every infrastructure is generally a very much forward-leading indicator that's not going to produce fruit in the next 12 months but a longer term will certainly have a major benefit on capital growth uh ahead of that curve so yeah you know brilliant go on terry yeah and then also i think infrastructure is one of those factors that um people like um you know the chief economist at commonwealth bank has been in the media this week forecasting what will

happen in prices in 2023 but very much basing the the whole situation on what's going to happen with interest rates and i think that's very simplistic i think there's so many other forces this this boom is not being driven by low interest rates there's so many other factors driving it and one of the ones that's yet to come which i don't think they've really factored into their forecast is the impact of the big infrastructure spend that's rolling out and the other one they haven't considered is the opening of international borders and the influx of migrants back into australia and the impact that'll have on markets like melbourne and sydney and elsewhere so i think um i think their forecast is going to be proven wrong again because they so often get it wrong

um and um they haven't really considered some of those factors that we've considered in this report um currently and this was another um outcome that surprised me a little bit uh regional victoria and melbourne ranked 10 and 11. um i know i would have before i did the the work would have expected them to rank a little bit higher but having considered it um they're really i guess a victim of their own success and that they've been so strong for the last say three or four years particularly regional victoria it's kind of led i think this exodus to affordable lifestyle trend and its impact on property markets and it's already had a lot of growth and so i think it's starting to slip down the rankings for those reasons

but one of the things um i know you're going to ask this question later but i think um you know we get we get to number 14 and last which is regional south australia and the reality at the moment is you can have a booming property market and they do have booming property markets in regional south australia you can have booming property markets and come last that's the sort of situation we're in with the national property boom in australia at the moment yeah and that's a very good point uh while regional south australia might be last of the list in terms of where you're forecasting it to go in the next 12 months that doesn't necessarily mean it's a bad result it just means that the relative level of growth compared to others isn't quite as strong so yeah very

important to to make that uh point there terry well some somewhere had to come last in this when we're ranking from 1 to 14 that doesn't mean they have a weak property market in the current situation far from it yeah and a very good point so um if we start to focus on the regional areas as the focus of this first part special then uh why do you think the regional areas are dominating the growth prospects over and above the exodus to affordable lifestyle that what you've spoken about and again FEM Terry feel free to both jump in on this yeah look I think that Exodus trend is hugely influential I mean I regard it as the the most powerful forced impacting property markets across Australia so far in the 21st century it is is enormously powerful

and it's important to understand that it's not a pandemic driven thing it's been underway for some time Sydney's been losing population for 10 years to this trend and Melbourne for the last four or five um so it's it's a it's about um affordability and lifestyle but it's about technology fundamentally people's ability to work remotely is a big driver of it and that's not going to change some people tend to think that um once we get the pandemic under control everyone's going to move back to the cities um i think that they underestimate the the huge decisions people have made to make that you don't move your whole life and family and livelihood uh willy-nilly and you don't um on a whim move back you know these these are long-term decisions that people have made but

the trends that are driving it are long-term so i think that trend is going to continue and and it's and it shows up in the the outcomes of this report that the top three locations are regional regional markets yeah i think uh if you know if we look at history uh what happened after after the Spanish flu back after the First World War, we saw exactly the same trend, and that lasted for decades because for the very reason you've mentioned, Terry, that the golden handcuffs in terms of the major changeover costs in moving from one location to another aren't something

that you drop quickly and then revert. And given the infrastructure and the technology support with the lifestyle drivers, I think this is definitely a hint of sustainable things to come. yeah just the cost of moving house the cost of selling a property and then buying a house in another location you can easily tear up fifty to a hundred thousand dollars with stamp duty and legal fees and agents commissions etc it's not something that people do on a whim um so i think that that we're not going to see a reversal of the trend um for that reason and also the reason

that um the trend hasn't been caused by the pandemic in the first place it's uh it's got longer term and more fundamental underlying factors yeah i don't think the covid has just thrown petrol on the fire really so i mean the obvious one too is just the affordability when you look at the prices between regional and city there's a huge gap i mean i know that has closed a lot i know terry has spoken quite a bit about the um you know the prices people have also been paying in regional areas probably above and beyond and not making the lives of locals too happy in that regard but one of the obvious big benefit people could do it is because they could afford it in that regard because of the prices. Yeah very good call very good call well let's

let's drill down a bit now Terry you know they love to sort of break down and go through the rankings but focusing on the regional areas only so let's start with regional New South Wales New South Wales, why has this grabbed top spot, do you think? I think the big trend we've just talked about, it's most evident in regional New South Wales. Sydney is the big city that's losing population to most of this trend. And, you know, there are very, very appealing lifestyle markets very, very close to Sydney, like the Central Coast,

like the Wollongong and Shoalhaven area, like heading west of Blue Mountains into places like Orange. these are wonderful areas with wonderful lifestyles very affordable relative to Sydney but very very close to Sydney so people can perhaps make that move and still be in touch with the capital city if they need to go there so and this has been a very very powerful force driving the the property markets across regional New South Wales and now the trend has spread far and wide so it's not just those areas close to Sydney that are rising but places more distant, right down to Albury-Wodonga at the border

with Victoria, places like Wagga Wagga, out west locations like Dubbo. These are all really strong regional centres, very strong and growing local economies. And so... Sorry, Terry, the prices of that you're talking about, Dubbo and so on, in regional New South Wales, that's the bit that surprised me, looking at I think the lowest

in that area was uh 290 000 for a regional buy a regional house in new south wales um again just showing that affordability you know if you can relocate yourself there of course yeah and that's absolutely right and and even the central coast which is the market that's been perhaps the greatest beneficiary of this trend out of sydney um there are three central coast locations that make our top 10 picks for regional New South Wales and they're all places with median house prices in the 500,000s. Now you know relative to Sydney that's an incredible level of affordability that people perhaps selling a home in Sydney for one to two million dollars and be able to buy a home of comparable standard and there's the sort of wonderful water-based environments that the

Central Coast offers for less than half the price perhaps. That's the kind of factor that's driving this trend yeah and that's really important too because we've got to remember we're going to be buying responsibly borrowing responsibly as well so if you're looking at a price there where you know the median mortgage at the moment is about 575 000 i mean there's no denying that when rates do move they're probably going to move quite fast because we've got to remember the rates are only low because of this pandemic so once monetary policy tightens that's going to move fast so a one to two percent rate could happen quite fast can you imagine that on your repayments if you're looking at a place that where your mortgage is around 500 000 you know a one a two percent

increase is going to change your payments by about six hundred dollars so this is what buyers do need to factor in that um you know even though they are affordable still factoring what a two percent rate hike may look like yeah perfect and that that's exactly the sort of uh afford planning and worst-case scenario analysis that buyers need to be doing following this path. Terry, regional Queensland's ranked number two. What's your read around why and what's driving the exercise there? Well, the biggest beneficiary of this trend overall is Queensland,

of course, and the population data shows that the state making the greatest net gains from internal migration is Queensland. It's not all going to Brisbane. it's going to and it's not all going to the gold coast and the sunshine coast you know it's spreading far and wide so Queensland benefits from that factor I think the control of the the pandemic is also a factor you know people are escaping the big cities that have been most impacted by lockdowns going to places like Brisbane and Queensland where they've had relatively few restrictions like that there's also the lifestyle factor the beaches the climate

the affordability factor the price comparison brisbane prices are half those of sydney in rough terms and also there's the infrastructure factor there's there's a big infrastructure spend underway in brisbane but also out in regional queensland as well so all of that is in the mix and it's driving big buying activity in places right throughout regional queensland right up in far north places like Cairns and Townsville are benefiting smaller regional centres that many Australians would probably never consider like Bundaberg that's a huge growth market where you know 12 months ago you could buy typical houses in the 200 thousands not anymore and Toowoomba which is Australia's second biggest inland city after Canberra and it's got this

massive impact from transport infrastructure which is still yet to be fully felt but the inland rail link at the new airport and the second range crossing put all that together and suddenly toowoomba's a player on a an international scale and we've seen boeing which has never in its entire history constructed aircraft outside of north america has just announced that they're going to be um creating um major airplanes and they build very big airplanes in toowoomba of all places because they've got the inland rail link and the new airport and its infrastructure that makes it viable so and you have diversity when you look at regional queensland you're mentioning bundaberg east i mean jumping into there about 290k and then you've got gmail neck

of the woods burley waters 985 000 so regional queensland had a big uh price um range that's for sure yeah brilliant so there's certainly some uh good good buying opportunity in those up and coming areas uh let's move to regional wa terry it's ranked third in growth prospects what's What's driving activity over there? Probably the biggest surprise to me in this report. But when you look at all the metrics, yeah, it makes a certain amount of sense. Firstly, the areas north of Perth, which are largely resources centres, but not totally because Broome is also on our list.

Broome is one of those lifestyle areas, a wonderful lifestyle area, a wonderful tourist destination. But it's one of those beneficiaries of the Exodus to Affordable Lifestyle training, huge uplift in sales activity there. Then you've got the resources driven areas like Port Hedland and Karratha. We don't necessarily recommend that people invest in these places because they're very volatile and high risk, but they are rising at the moment. But fundamentally, the ranking of regional Western Australia is driven by those locations,

those regional areas south of Perth, firstly, Mandurah, which is almost an outer suburb of Perth, well connected by road and rail links, wonderful water environments, very affordable and lots of lifestyle buyers heading there. Then you've got Bunbury, which is more of a workaday, second biggest city in Western Australia. It's got an export port. It's more of a commercial centre, but also got a wonderful lifestyle and very affordable. And heading further south, you then go to one of the wine areas like Margaret River, Busselton. You can see why people are wanting to buy there, driven by this trend, with the knowledge that you don't actually have to be in the big city to have a career you can work remotely and those are sort of places

that are being targeted right around Australia so it does make sense when you consider all those factors. Certainly does the sustainability of WA generally I'd love both of your comments on this because there's a lot of commentators that question the fact that it's a bit of a one one trick pony that's very heavily reliant on what's happening in resources and the relationship with China. How sustainable do you think the ongoing growth in regional WA in particular is going to be? Look I think it is sustainable from I mean you're right that it is it does have that element of volatility because its economy is so hooked into the resources sector and that makes it a little bit vulnerable and the Perth property market has tended to be a bit of a boom bust

market but i think um it's sustainable from the viewpoint that um it's not just about places like china buying our resources australia itself is going to be needing western australian resources big time because of this infrastructure rollout you know certain federal governments want australia to have this infrastructure led economic recovery and they're fast tracking everything that's anywhere near shovel ready and some of these are massive massive projects and we're going to be needing um western australia's iron ore and other minerals um just to support that so i think you know from that perspective um there's some sustainability to their current strength yeah brilliant okay let's move on to regional victoria which is next on the list but it

actually drops down below all of the mainland capitals in 10th place what's the story here terry look at as i said earlier i think it's a victim of its own success um it has been one of the national leaders on price growth it got underway much earlier one of the factors with this national property boom it's essentially been happening for 12 months but there are some parts of australia that actually have been booming for the past three or four years for their own local reasons and they include places like geelong and bellarat and more recently bendigo the major cities of regional victoria which are within one to two hours of the capital city and so that you know they're great places in their own right very strong local economies but very affordable alternative

and attractive alternatives to melbourne for people so but they've been on a growth path for longer and so they're starting to perhaps taper off we've seen evidence in all sorts of metrics that some of those locations have passed their peak so that's what's reflected in the ranking of these places a little bit down the list further down the list than some people might have expected yeah okay and i guess uh next on the list is regional tasmania which is probably suffering the same sort of impacts having fallen from grace into the 12th spot so anything additional happening there over and above what you've mentioned already terry look tasmania's been fantastic and tasmania is a great case study in uh to demonstrate what we believe to be

fundamentally true that property markets arise out of local economies and what's happening in and the local economy has a huge impact on what happens in property markets. Tasmania used to be the basket case of Australian economies. It always ranked last in the ComSec State of the State report. Now it's number one, and it's been rising up the ranking steadily for the last several years, and it's been number one for the past five quarters, I think, and that would surprise a lot of people. But it's been a result of very proactive action by the state government.

Really, they obviously got sick of being the basket case. They wanted to change it, and they have. and coinciding with that has been the rise of the Hobart property market you know it used to be the cheapest capital city in Australia now it's got houses that are way more expensive than Perth, Adelaide and Darwin and on a par with Brisbane and that would shock and amaze a lot of people but you know Hobart's no longer a cheap market and and regional Tasmania has been pulled along with that so the lawn system has risen massively and so have some of the you know the lifestyle towns the coastal towns and the hill change towns of Tasmania,

places many of us never heard of have had fantastic growth because they've offered affordability and lifestyle amidst a state economy which has been just going crazy. So, yeah. Yeah, no great surprise given that lifestyle exodus and the sort of race to regional space safety and security which sort of goes along with that. In terms of its ranking, this report,

similar to regional victoria it's had three or four years of strong growth so it's now starting to slip down the rankings because we believe that it's past its peak now yeah yeah okay yeah go on i was basically saying much the same the economy of tasmania has really well hobart has um just really kept it um afloat and has done extremely well and even in some of those prices some of the price growth that they've experienced over the year has been quite high um and one thing i guess also if I can bring back to the report too is the good thing is that readers can actually say okay this is the median price this is how it's been growing and this is how much it'll cost you to actually buy into that suburb so they've got the upfront costs specific to that suburb and then

you get a good idea as well what a 20 deposit would be plus repayments on that so you you know a lot of people kind of forget that yeah you've got the deposit but there's also these upfront costs and if you're not a first-time buyer you're not going to have a lot of exemptions you're going to have to pay for those so it gives a good idea of what you're up for completely. Totally you'd certainly need to be adding about six percent depending on which state and the stamp duty costs on top of the purchase price to fund and the banks aren't letting you borrow that so you'd certainly need to factor that in the equation. We've covered regional South Australia already so in sort of wrapping up the regional view any final comments on future price growth for the

region and areas moving forward that we're sharing, Terry and Effie? Well, I think that the trend that's driving it, we've talked about a lot today, is going to continue because it's a long term trend. It's not fundamentally driven by the pandemic. So all these other factors, technology, affordability, and lifestyle, and I think that will continue for the foreseeable future. I think that's a great thing for Australia too, because now we've had previously we've had this drift to the big cities. And I think That's not necessarily great for the country or economically.

The fact that people are now moving to the regions and pumping up those economies, I think that's fantastic. And I think it's going to continue. And, you know, affordability is going to be a driver and lifestyle as well. Yeah, brilliant. Effie, sort of taking a step back from the nitty gritties then, from your perspective, what are the implications for buyers,

sellers and investors moving forward and what should they and shouldn't they be doing now? look unfortunately affordability is a big issue when it comes to buying property i mean we all do need to have a roof over our head for some of us it's going to be easy for others it's not and there's no real solution i'm seeing happening at the moment to address that affordability yes there are cheap places that you can jump into buy but for me it's always you know my number one rule is just do your research and this is why whether it's this report or some other report I mean obviously get it from from a reputable source you really do need to do your due diligence

and don't just jump in because you fear that you have to jump in don't try and time the market I've said that at the beginning I'm going to say it at the end as well and do buy well and then this is you know some of these metrics that Terry has looked at a goal in that regard and they're things you've got to look at when you're buying at the end of the day you want to make sure you buy well and um not overpay for it but look if it's a long-term investment and you want to jump into it then as long as you're bought well hopefully you can ride it out yeah yeah beautifully summarized well you've given us some really great insights uh and so i really want to thank you both for taking the time to share those with us today and thanks again for your time on the show

thank you most welcome brishing yeah okay well there you have it so despite continued gloom and being perpetrated by the mainstream media. Today's facts outweigh the fiction. So if you're looking to buy or sell property next year, make sure you have a read of CanStar's Rising Stars Property Report, which you can read in full at canstar.com.au forward slash Rising Stars Report. It's a very insightful forward thinking report that gives you a number of must read perspectives to help you make better informed property decisions. You're watching Realty Talk, your trusted voice for all things property. Property depreciation is the natural wear and tear of a building and its assets. Property investors can claim depreciation as a tax deduction each financial year. Depreciation

is a non-cash deduction. This means you don't need to spend any money in order to claim it. On average, BMT tax depreciation find residential investors almost $9,000 in first full financial year deductions. Call BMT on 1-300-728-726 today for an obligation-free quote. Welcome back. Well, we hope you've enjoyed this first part of our Property Future Forecast special series. But before we wrap things up, let me summarise my key takeaways on next year's regional opportunities. As Effie and Terry reinforced, it's the regional property markets that are going to continue to be the ones to watch in 2022. Regional New South Wales ranks first overall, followed by regional Queensland and regional Western Australia, supporting the

dominant exodus to affordable lifestyle trend, where residents of big capital cities are relocating to regional hubs. Interestingly, the lowest medium house price amongst the Rising Star suburbs in the top three regions is actually under $300,000, offering an affordable price tag for first-time buyers and investors alike. Rising Star suburbs in the top regions include Bluehaven, Cessnock, Dubbo, Goulburn, Gwondaland, Carabar, Singleton Heights, Tolland, Teukley and Warners Bay in top-ranked regional New South Wales and in second-ranked regional Queensland areas like Bundaberg East, Burleigh Waters, Centenary Heights, Dundowron Beach, Gympie, Little Mountain, Newton, Norman Gardens, Paradise Point and Southport are picked to be the

top performers and in third-ranked regional Western Australia the areas of Broome, Kerry Park, Falcon, Geograph and Hall's Head are predicted to outperform. To get all of the details of the top predicted locations around the country make sure you have a read of CanStar's Rising Stars property report which you can find at canstar.com.au forward slash rising stars report. Well that brings us to the end of this week's show. Another big thanks to our special guests Effie Zahos and Terry Ryder, and a reminder that you can see all of our shows at realty.com.au. And while you're there, make sure you check out one of Australia's most extensive range of properties for sale from over 7,000 agents nationally. Thanks again to realty.com.au

and BMT Tax Depreciation for their ongoing support. I'm Bushy Martin from Know How Property Finance and I look forward to sharing part two of our Rising Stars feature where we're going to drill into forecasts for the capital cities when I see you again next week.