So what are the top performing suburbs across Australia ? Tune into this episode so you can find out which suburbs actually ranked best , with a few surprises in between .
Welcome to the Finance Show with Joe . He's Joe , I'm Jess , I'm Shmo .
We're going to be talking about the top performing suburbs in the last 12 months in each state , which is funny because recently I think it was something like two thirds of all suburbs in Sydney not even in Sydney in Australia are declining in value , but that hasn't stopped others from absolutely booming .
Let's start with New South Wales , our home , because it's simply familiar to us .
Guess who's back ? Sydney's back , tell two friends , but no more than that . No , sydney's back .
Tell two friends , but no more than that . No , sydney's booming like crazy . It is Particular suburbs .
Yeah .
And for particular reasons .
So at the moment , we've got Gables , yeah , which has 33% growth , we've got Lismore at 23.1% growth , yeah , and then Chester Hill at 22.4% growth .
The gun capital of Sydney .
Okay , explain that one for a second .
I have no explanation . It was just a thing I saw on the Wikipedia page . I don't know why that's happening , but it is a thing . These are registered guns as well .
So , as mentioned , top three suburbs in Australia Gables Sorry , not in Australia Top three suburbs currently in Sydney In .
This is for houses .
Okay for houses , gables , lismore . So Gables at one , lismore at two , chester Hill at three . Yeah , okay Now .
Gables . Where is that ? So ? Gables is actually where my parents used to live . It's up in the hills . It's one of those planned suburbs , okay , and allegedly it is so good that it's setting the standard for other planned suburbs . So , is it like near Rouse Hill ? Yeah , it seems to be up in and around Rouse Hill , Kellyville , that sort of stuff .
Why has this suburb in particular been outperforming the rest of the hills , Like ? Why is this one , you know , at the 33% ? Is it because of the town planning ? Is it because of the dwellings that are going up ? Is everything brand new cables on the ground ?
Yeah , okay , so up is everything . Brand new cables on the ground . Yeah , okay , so it's . It's because it's all new that's , that's the big one . It's family focused , so a bunch of new families are moving in there there . There's like 4 000 dwellings there , so there's like options as well and the school is a big draw .
There's a private school there , the santa sofia catholic college . Okay , apparently that's highly desirable okay as are most schools in in the hills . But that's a new one , that isn't that , I assume costs less than something like Oak Hill or something like that .
And that suburb in itself like being in the hills as well . For some reason , sydney seems to be sprawling more that way than the southwest way .
Yeah , I would assume , because the hills , frankly , a lot of people are just moving there for money , like they've got money , there's money there . And there's big , big lots of land . Like I said , I grew up in and around there . It's really nice , it's quite idyllic .
It kind of looks like the Shire from Lord of the Rings in certain areas , the less developed ones . A lot of it now is like you know how ? Like if you go southwest Sydney and you go to one of those new pop-up suburbs , the houses are like really close together . Yeah , that's not happening in Gables you get like an actual backyard as far as I'm aware .
So the zoning and how the properties and stuff are built out , they're really nice . They are expensive . This is not a budget suburb but it's doing very well .
So you're seeing 33% growth on expensive suburbs as well . On the opposite end of that is Lismore . I don purpose as well . On the opposite end of that is lismore , so I don't know much about lismore . Uh , lismore has never been considered like a you know , super desirable , highly sought after area .
But 23.1 percent growth means there's some serious business happening there up near the border , queensland . So , funnily enough , I don't know anything about lismore , though funnily enough , you mentioned lismore actually refinanced the property there recently and client had purchased for 300 grand and it is now worth like 560 , so that client's got like 70 growth .
Obviously he bought it ages ago and you know it's grown a long-term investment it was a long-term investment .
but this recent 23 boom we refinanced that at the start of the year , yeah , so he's probably feeling the boom now and the reason why Lismore is performing so well is they actually help with a lot of social housing out that way . So there's a lot of good rental yield to be made from the government . You're seeing a lot of NDIS providers go out that way .
The rental yield there for this particular property I'm just going to point it out he purchased it originally for $300,000 . It's worth $560,000 . He was getting $1,200 a week . He was making an 11% rental yield . He originally purchased for $300,000 . So it's got 11% yield Now if you take the yield from what he originally purchased .
So let's say he bought it for $300,000 originally and he was making that $56,000 in rental income . That's about 17% , 16% somewhere around that . So he's done remarkably well . That also surprised me , though , because they got hit with floods a couple of years ago , if you remember .
So there is flood zoning and that's what restricts the postcode , so it does limit people from investing there . But I want to talk about the third one in particular . Yeah , Chester Hill . Chester Hill is booming like crazy Now . We spoke about it on the last episode of the day .
Yeah , we mentioned it , the reason Chester Hill is booming so much is because of the new CDC laws that are out as part of their council .
Essentially and I'm going to re-explain this for all of our listeners If you purchase a property and you want to build dwellings on it , you want to do townhouses or duplexes or anything like that , essentially , what happens is you have to well , you used to just submit a DA get the development approval and then you could start construction .
This was taking far too long and it leaves the door open for NIMBYs and protests .
Correct , because once you submit a development application taking far too long and it leaves , it leaves the door open for nimbies and protests correct , because once you submit a development application , what ends up happening is all your building plans .
Everything goes up online , it's all public . It's all public and people have the right to protest . Okay , I don't like the height limit , I don't like this , I don't like that oh , this is going to block my facade or I'm not going to be able to see those sorts of things and that's why it's taking so long .
It could take 12 to 18 months to just get a da approved now , especially because council doesn't have enough employees working and , you know , churning out and making sure that these things are actually approved .
So is that actually why things are taking a little longer to get approved ? It's more like they're just understaffed like councils .
Oh , yes , they're understaffed and councils are lazy in general .
Okay , yeah , we all know it . I thought it was a bureaucracy thing , like just too much paperwork type of thing .
They've introduced a lot more paperwork . Council workers have to do a lot more paperwork and I've been told by certain individuals that have worked within council that it's a 9.30 to 4 pm job . Man , that'd be sweet Shut up to 4 pm job , and that'd be sweet shut up , um . But if , essentially , if you , you finish up at 4 pm , yeah , nobody works overtime .
And if you do work overtime , someone will pull you aside and say , hey , making everyone else look bad . You can't be doing that anymore . And because they've added the extra layers of paperwork and all the bureaucracy and all the extra certificates that you need to get a da approved .
That's why it's taking 12 to 18 months , as opposed to a process that used to take 6 to 9 months to get an approval right . Cdc bypasses all of that . So a CDC is a Complying Development Certificate . Essentially , if you adhere to the rules of the council . So let's say you've got land lot size of this big , you can use a floor space ratio of 0.45% .
You have this much of a height limit . You have this much of a setback from the boundary . You have this much frontage . Each house needs to be this wide you are then applicable to go for a CDC and essentially you have an approval in about eight weeks and you'll be able to start your construction literally eight weeks after lodgement .
So it's a much faster process . And what happened in Chester Hill is they started to allow duplexes to be a part of their CDC . People were seeing the lots of land for $600,000 , $700,000 , older houses , because if have you ever driven through Chester Hill , yeah yeah , I catch a train through it . Okay , you got the old weatherboard houses .
You know it was a very low socioeconomic area . There was a lot of housing commission there . There was a lot of I'm trying to frame this nicely Dero's .
Look , it is what it is . It just wasn't a very desirable place in Sydney to live it wasn't .
But now , because of the CDC laws , essentially people are looking , they go okay , it's got 16 meters of frontage , I could buy that house . I can get it for 1.2 mil . I can go get a CDC . It's a two-month wait . I'm going to have the property tenanted . In that time I'm still going to be able to cover my home loan repayments and a little bit more .
Fantastic , I get my CDC approved . What happens after that ? I can go build the duplexes . I can build the duplex One and two go up side by side . Let's say each dwelling costs you anywhere between $250,000 to $300,000 to build . All of a sudden you don't have one dwelling . That's worth $1.5 million after construction and everything .
You've got two dwellings that are now worth $1.5 million . So essentially you might spend $1.8 million to get everything off the ground , plus interest costs . Let's call it , let's round it off . Let's go to two mil . Okay , if you sold each of those properties for 1.5 mil each , you're still making a million dollars .
You're still making a 33% profit on your original investment .
Yeah , it's pretty great . I mean it's , it's right there you know , the land is right there . It's what we were saying before . The land is what's valuable . It doesn't matter that there's a weatherboard house .
Sorry , correction , you're actually making a 50% profit on what you did . So because of that and because of the proximity to Bankstown , punchbowl , greenacre , strathfield , the M5 is there , george's Hall is right there . You saw a lot of Lebanese people who are blue collar . You saw a lot of Lebanese people who are blue collar . You saw a lot of Iraqis .
You saw a lot of my people .
I was going to ask you are the ones putting the ?
duplexes up the labs . It's my nationality and they're blue collar .
They're tradies , they know how to build . They have the construction businesses on their own .
That's what they know . I guarantee you 80% of Lebanese males are tradies of some- .
Some description , yeah .
In some capacity . Essentially , what ends up happening ? Okay , perfect , I can go buy this . I do want to . This is how I'm going to make a million dollars in a year . And they just kept buying and recycling , buying and recycling .
So now , when you drive through Chester Hill , there's an auction on every street every weekend and you're seeing these old weatherboard properties . You're seeing these old , non-complying properties selling not because of the house that's on it , but because of the potential . Yeah , because they can see the vision they can see .
If I do this , I'm going to make a 50% return on my money . I'm going to make a 60% return . I'm going to be able to set myself up for the future .
And even if they're not selling to people who maybe don't like outside of the Canterbury Bankstown area , it doesn't really matter because it's desirable for those people who live in that area and , like you said , people who live in those areas are the ones that are building this stuff and seeing this opportunity .
So if you're close to the major hubs of Bankstown , liverpool and all that sort of stuff , you're close to family , you're close to , obviously , a lot of infrastructure and stuff and train stations .
What's not to like and also still more desirable than an apartment .
Yeah , Speaking of apartments , the three leading unit growths in New South Wales . God , that was a good sentence . Anyway , Linfield's the top of the list 33.7% . Do you know what's going on with Linfield ?
Jesus . 33.7% on a unit yeah , that's amazing . And then we've got Queen Bay and East . I don't know where that is .
It is a country town 23.4% . My guess I don't know what's going on there Some country town near the ACT .
Okay , and the last one , we all know , elizabeth Bay . That just sort of makes sense 20.2% . But that's still a huge growth , especially for apartments . Now , the reason why we bring that up is a lot of first home buyers . Their first purchase is usually an apartment . Yeah , it's what's way more affordable . It's more affordable . It complies with all the schemes .
You know , the first home guarantee , the first home owner's grant . You know , because they've got certain price brackets , you can't go buy a house in New South Wales and expect to be able to get a step duty exemptions and be able to apply for the first time guarantee .
You're just not going to be able to afford it . You might even have a good job 70 to 100K still nothing .
But an apartment you can afford , yeah , it's reasonable and you're more than likely still going to be applicable for their schemes . But the thing is with apartments is , once an apartment is built , it's built . You can't go make structural renovations . You can't go install a pool . You can't go and install a sauna or another bedroom .
There's no extensions that you could do to it . The apartment's the apartment . Yeah , got neighbors everything so they don't grow as rapidly as anything . That's a freestanding home .
No , I feel like the only reason they would grow is if the suburb or location is desirable .
Well Elizabeth Bay . Yeah , the suburb or location is desirable , well Elizabeth Bay . So that's what I kind of want to bring up . Elizabeth Bay not a lot of development is happening that way and , as we know , in Sydney in particular , they're restricting the amount of DAs that are being worked on , especially in those affluent areas . Why ?
Because people can't be bothered to listen to cranes or they don't want the traffic stops .
Again , a lot of it's a bit of NIMBYs as well , and they want to preserve the character of the sub . There's a few different reasons , but I agree . Yeah , you don't want to put up with all that stuff .
But that is exactly why 20.2% , like it's gone up , it's spiked up . So if you purchased an apartment there for $600,000 last year which was very possible it's gone up to $720,000 . Now people think to themselves , oh , my property's gone up in value . What does that mean ? That's usable equity .
So let's say I bought something for 600K and then it's gone up to $720,000 . That $120,000 gap that is money that I can potentially tap into if I could service it and then purchase another investment , and then purchase another investment .
And so it goes .
But that's how Australia is . I've said it multiple times on this podcast we're not a tech-based country , we're not a service-based country , we're a property-based country .
Oh , boy Real estate . That is the big thing here .
Do you know what ? When I've traveled and I've spoken to Americans don't get it , it depends where . So I was in Michigan , detroit , detroit and my cousin was like how much are you guys buying properties for ? I'm like they're about a million dollars , yeah , I was like what ? And he goes how much rental income are you making off them ? And I'm like about $800 .
He's like how do you guys make money ? And I'm like what do you mean ? And he's like I'm buying things here for like $250k and I like 500 bucks . Okay , still not making money . It's actually pretty good .
I was going to say that sounds good . Yeah , no , no , no .
The property doesn't grow .
Yeah , it's not growing up in value , it's just the rental income .
So they're cash flow based apartments . Yeah , oh , okay . So I've bought this apartment , I laid down some capital and the rental yield covers the mortgage , and then I make a certain percentage on top of that , and that's my growth .
Yeah , okay , but it's not the property value .
It's not the property value . Yeah , that's the difference . New York sparks up in value . There's only so much New York , there's only so much California , there's only so much Florida , miami , right , but there's a lot of the middle bit . The middle bit that you can find properties in America , good suburbs .
Ridiculously cheap 400K . Yeah , Ridiculous , which is what like 800 here .
But they don't go up . No , they don't grow in value . So , explaining that to individuals here , you can make money faster and a lot of it and a lot of it , and the negative gearing laws allow you to be a professional investor . This country is actually set up for you to succeed as a property investor .
I mean it's almost a slam dunk , obviously still to do your research , but like if you're on the property ladder and you're just smart with what you do .
Yeah , let's go to the next state , victoria .
This is an interesting one because there was some growth , but it is nowhere near compared to what Sydney was .
So top three for house price growth leaders Ivano 17.3% , diamond Creek 13.2% and then Coburg North 12.8% In comparison to Sydney's , which is already like a lot of suburbs in Sydney are going down , but 33% was the top one in Sydney and it's only 17 in Victoriaoria victoria actually has suburbs in melbourne , melbourne , cbd .
Oh yeah , okay , where it's cheaper to buy a property than it is to rent one so I think I was . I think I was looking at the statistics . It's the average mortgage in melbourne north was like 2800 , and then the average rent for that suburb was $3,000 , which is $200 more expensive .
So you're actually better off buying a house if you have the capacity to obviously in Melbourne North than compared to renting .
Yeah , I've heard that . So both Diamond Creek and Coburg North . The reason they've been seeing such strong growth is because of first home buyers specifically . They've been catering towards them . Those areas are not actually well , they weren't highly desirable , but because investors are basically selling out of Melbourne , it's great for buyers in Melbourne .
But gentrification , you have to look at property always in the short and long-term gain that can be made . Melbourne right now , everyone's saying the investors are leaving the market . Property is so cheap . It's doom and gloom . As someone that's bought and sold a lot of property in his time , I'm looking at this and I'm like where are the bargains ?
And everyone's like , oh , but you're going to lose money . Well , I'm going to lose a percent , 2% . It's already at the bottom of the market . I understand the investor side of it . You're a little bit weary Melbourne , Victoria , those sorts of areas .
It might not be a good idea for you for your first investment , because you're going to be sitting there You're stressing oh my gosh , why isn't this thing making money ? I'm going to give you the perfect example . We had a client purchase last year in Perth . We've spoken about this countless times .
A million times .
They purchased a dual key . Okay , so they had a house and had a granny flat Four bedroom on the front , three bedroom on the back , three car spots , three bathrooms in the front one and I think it was two bathrooms in the other . They bought it for like 550K .
Okay , they bought it for 550 and three months later he was sitting there and he's going it's a lemon .
It hasn't made money . All this kind of stuff . One year later it is worth 1.1 million dollars .
I was gonna say that just sounds like it's gonna make money , yeah , okay . And he's like oh , yeah , thanks , thanks for organizing the finance for that for us guys . We really appreciate that and I'm like yeah , you just like , you just made 550 000 okay , it's not . It's not in your back pocket .
If you do sell , you do have to pay a 30% capital gains tax . You do have to worry about those things . But if you decide to refinance remortgage and then tap it to other markets and such , that's where you're going to find the advantage . Now that property is worth $1.1 million .
If he taps it to equity and buys another property in Perth worth $1.1 million , is that going to grow by 100% again ? No , we're seeing interest rates come down . The market's going to be less competitive over there and it's going to be more competitive in areas like Sydney and Melbourne . So what are we going to see ? Melbourne is cheap right now .
Melbourne is probably going to go on another run .
Yeah , why wouldn't it ? People want to live in .
Melbourne . They want to live there .
Okay , and invest where people actually want to live , it will go up , even if it's not within the next three years .
Because people want to live there . Exactly . Okay you mentioned it previously with Gables and now look at this .
okay , so we're looking at Ivanhoe , diamond Creek and Coburg North Coburg's nice okay , yeah , I don't know anything about Melbourne , so I can't work for it .
I'm running the lead here , Okay , but Ivanhoe and Diamond Creek if they're catering to first-home buyers and they're catering to early family , a lot of first-home buyers because of the borrowing capacity , a lot of first-home buyers right now are actually earning high five figures , low six figures . They're earning good coin .
So you're going to get a lot of affluent , smart individuals , Especially yuppies , except the kids .
What's a yuppie ? Well , yuppie is like a young professional right High salary , low expenses , Kids and their lingo , yuppies ain't old . I learned what Riz was the other day . Well , yeah , okay , that one's newer , A yuppie . I learned that in school in like demographics . Yeah , no , that's a bit of a different one . But yeah .
So , looking at these opportunities , there are parts of Victoria that are doing really well and then we've got some units as well .
So the top three units , location for units in Victoria over the last 12 months we've got Blackburn at 22.1% , box Hill at 11.1% yes , they have a box hill in Melbourne too and Surrey Hills they have one of those too at 11% , surrey Hills in particular . But each one of these they've all seen significant overseas interest since COVID .
Yeah , a lot of skilled migrants are moving towards there and going into the units because I would assume you know you've already spent the significant amount to get to Australia , establish yourself in Australia . You can't be spending over a million dollars on a house .
This is my favorite thing that you've added here there's more sales than purchases by investors in Melbourne .
Yeah , they're fleeing essentially the analyst that I drew this data from . They believe that that's happening because of unfavorable investment taxation and changes to tenancy laws that are then making this less attractive . Basically , it means there's more work involved and it's not like the investors are like there'll be no investors in Melbourne .
That's not the case , of course not .
No , I'm about to go buy a few of these things , exactly , yeah exactly .
It's just there , it's just a bit more effort . Well , I mean , just get a property manager , you don't have to worry , I went on my rant .
The last episode . Okay , we've got Queensland as well , so the top performing houses are in Kingston . I know Kingston quite well Callum Vale and Coongal . So Kingston 29.2% growth , callum Vale 26.2% growth and Coongal 26% growth . I have literally been to Ottawa , canada , more times than I've been to Queensland , so I can't comment too much on this .
All right , I don't know where these suburbs are , I don't know how they're performing , where they're performing and stuff , but I'm definitely going to look into each one of them because they're doing quite fantastic . It always seems like Queensland has different random pockets that are beginning to boom .
Yeah , these pockets are allegedly booming because they are riverfront properties . Already nice because you get water views , brown views , but whatever . But there's that cross-river rail project , so basically you can cross the river easily via public transport instead of buses and stuff like that .
So that's jumped these values up tremendously because now it's not an isolated thing on the opposite side of the river .
Then we've got for the units . We've got Annerley at 31.3% , woodridge at 29.4% and Main Beach 28.3% , and then we're still seeing Southeast Queensland land remain highly valuable , especially in suburbs with older homes and generational wealth . Yeah , it's pretty crazy . It does make sense . It's probably the coolest part of Queensland .
Not cool as in like oh no , no , like temperature cool Temperature cool like southeast anything further north .
It's also where most people are in Queensland .
So South Australia has got some significant growth . So for the houses , jesus fuck me All right . So at number one we've got Daverin Park at 37.9% growth , mano Parra at 33.7% and Elizabeth North at 31.3% .
Big growth . Big growth in South Australia , almost as big as Western Australia . We never talk about it .
And then for units , we've got Mawson Lakes at 46.7% and then Mount Gambier 48.8% . So I have a feeling these properties are booming and I'm probably right , because whoever can't afford WA is now looking at South Australia . In Davenport Park , homes are available under $500,000 still .
So , as I mentioned previously , if you're earning 80K a year , your maximum borrowing capacity is probably around that 500,00050,000 mark somewhere around there . So properties at $500,000 are super affordable for you and there's probably more buyers in that market .
Yeah .
There's a lot more people earning an average salary or the median salary , that's by definition by definition . Then there is people earning the top 1% . Where does the top 1% live ? They live in the most affluent suburbs in New South Wales . They live in the most affluent suburbs in Victoria , Queensland . All the above , They've got their spots .
They've got their spots , but their homes are worth the $8 million to $10 million range , those sorts of things . When you have properties that are available under $500,000 , that means there's going to be a lot more buyers in the market because there's a lot more people at the media .
Yeah , first-time buyers are the big reason these prices are going up in South Australia . I would assume most of them would be locals and stuff like that . It's the same thing with the units . The units are seeing massive growth , almost 50% growth in South Australia . Mawson Lakes 46.7% . Mount Gambier 48.8% . That's huge growth .
This has got to be first-time buyers .
It is , A lot of people do relocate to Adelaide . There's a lot of work there . Oh well , there you go . It makes sense . But another portion of it is we're actually seeing some parts of Northern Adelaide become unaffordable for people too .
Yeah , yeah .
So it's just actually fantastic for anyone that's invested there before . I actually helped a friend when I first first started getting into property . This was 2015 . So nine years ago I am old he purchased a property in the Northern part of Adelaide for $300,000 . And that is now worth like 1.8 mil .
It's insane . And we , you know , like we said , we've been talking about Western Australia and Perth so much . Here we go and we're , we're , we are up to it , Okay , and the Perth house prices are doing remarkably well .
So Armadale's up 42.9% , yeah , camillo's up 41.7% , and then Parmelia's up 39.7% . This is for houses .
Yes , this is for houses .
For units . We've got Gosnell's at 38.9% , Armadale again at 33.2% and then Rockingham at 28.9% .
What's going on in Armidale ? People really want to live in there , regardless of what it is .
It just seems like it's a booming area , so overall prices have surged 23% in the last year , driven by relative affordability and constraint supply . Population growth and rental availability in Sydney and Melbourne has driven people out of these cities and sent them to WA .
We've been talking about this for months . This is exactly what's going on .
Inner city areas have become unaffordable , so developing areas like Armadale are going up and lots of young professionals with high salaries , so we've got some digital nomads out there .
I would assume so , or at least like professionals who are looking to invest .
It's going to start just being a little bit more steady now with the growth and then , once interest rates cut start occurring , people are going to start investing locally .
Yeah , well , that'll make sense , unless I have a… Unless everyone starts moving to Adelaide in South Australia . No , no , and that's the next big one , I think Darwin .
It's too hot , too hot and too many sharks . Sharks or crocodiles , what's up there ? Both ?
Ah , I'm pretty sure it's both Michael Haldi , I am 28 .
Okay , I'm 33 , turning 34 . So I would have been 23 . I would have been 22 years old when perth went on its last , last run , oh , when , after it collapsed , right ?
No , this is before it collapsed so there was a massive mining boom between 2011 to 2014 , yeah , and what occurred was we had a lot of individuals , we had a lot of fifo yeah , it in fly out in WA and property was booming . Yeah , okay , perth property market , perth property market China said we don't want any more iron ore .
Yeah , we got into a trade tiff with China .
So iron ore at the time was priced at around $113 and then it crashed to like 56 bucks , something like that .
So like over half its value .
So we saw a lot of the FIFO workers the fly in , fly out lose their jobs and because of that , rental demand started to decrease , and that's bad news for investors . We saw individuals when I first got into banking , so this is three years after the property started to crash . We saw $2 million mortgages on properties that were now worth $500,000 . Jesus .
So we saw properties that declined that heavily in value because they didn't have enough buyers there . They didn't have enough people actually wanting to live in Perth . It was all dependent on the investment market .
And now you're suggesting that things are different now .
I've mentioned it many times . They've invested in sporting , they've invested in the city , they've invested in infrastructure . They've got luxury boutiques in Perth now .
I've heard that you get all the benefits . I've heard about Perth , that you get all the benefits of living in a major city , but it's quieter , it's a bit more relaxed , like Sydney . At this point it's go , go , go . Yeah , I imagine Melbourne's not too different .
No , Melbourne , they're a little bit more kickbacked .
But you know what I mean . Like it's still like go , yeah , yeah . Like it's a major city , there's a lot of people , there's a lot of noise , whereas Perth isn't like that . There it's quite good the quality of life is what I'm trying to say .
If you remember , when Manny was on this episode , we keep referencing all the older guests , but when Manny was on here he even mentioned it . He goes they're trying to invest in the unoccupied market .
Yeah , they limit investors , right they ?
don't want people coming in short-term rentals . They don't want the market to crash again , because we saw a lot of bankruptcy , we saw a lot of people get into trouble .
Well , 2 million to 500,000 , that tells you everything . Yeah , no , no , that was a very , very strange situation .
That's insane . But they've invested in sporting , they've invested in all these things , and China is also investing in Perth as a tourist destination . Now .
Yeah , same time zone , because we're not currently fighting a trade war with China right now . They lifted all the tariffs , including on the wine .
So there you go , yeah , so we've got a lot of freedom In saying that , though I don't think it'll crash , but I do agree , it'll steady off now , it'll grow . It'll steady off , it'll grow , it's just not going to grow 45% every year .
It'll steady off , it'll grow . It's just not going to grow 45% every year . No , it's not going to be crazy growth . It'll be far more sustainable growth , sustainable .
But that also all depends on if they do start cutting the interest rates .
Yeah , look , people seem very confident that interest rates are set to tip very soon . Like the specific when no one quite knows , it's either as early as next month or as late as the beginning of next year .
Please , God be soon .
Well , you were saying on the last episode that you reckon they'll drop the rates in time for Christmas , so people have actual money to spend for Christmas , because that again contributes to the economy .
There's an election coming up .
There's an election coming up . How's inflation doing ? Is that under control ?
That'll be the big thing . So inflation is down to 2.7% .
It has to be like 2.5 or something to be sustainable . Is that what the goal is .
The issue is inflation . All these statistics lag yeah , okay . So consumer confidence , people spending , it's not high , right ?
now . No , it's way low .
A lot of the inflation is because of imported things , household things , electricity , groceries , bloody Colesworth out there jacking up the prices for everything . In saying that , though , things are still not quite where they were , and I'm not going to say pre-COVID , I'm going to say like pre-2016 . Yeah , yeah , okay , pre-covid .
We had a lot of back and forth between Liberal and Labour . Everyone thought Labour was going to win , so people weren't- .
Oh , this is like the Bill Shorten election , yeah , and people weren't overly excited about the economy .
They weren't investing in it . Scomo got back in somehow Like it was a literal no .
No , because he wasn't the Prime Minister , because he got- .
Scomo jumped in like a couple months before the election and everyone's like I don't really know who he is , but we're gonna vote for him anyway no , no , that was long before that scum scum was around for a while no , I know he was around , but he wasn't the prime minister and he wasn't up for election until that election and .
But he wasn't and he didn't become prime minister only until , like , yeah , like six months before the actual election I want everybody to fact check michael . I'm 100 sure he's wrong okay but anyways , what year was this election ?
2019 , 2018 I'm pretty sure it was a 20 2019 election . Because of all that , that we didn't get a really good run and understand whether we couldn't predict the market . We couldn't predict the economy . You know , because if labor comes in as we know labor they're left-leaning , they're a little bit more based on socialism .
They spend a lot more money , as we've seen . Um , they don't focus so much on big business . They focus more on unemployed benefits and those sorts of things . So it's two very , very different ideologies between the political parties . And so , when it comes to inflation , we haven't really seen people be confident in the market in a long , long time .
It was like Harambe got shot and everything changed in the world . Like that was it . Look , we know this .
This is fact , all right .
I want to thank you all for listening to this episode of the Finance Show with Joe . What do you think about the top performing suburbs all across Australia ? Let us know your thoughts in the comments below . As always , I'm Joe , that's , I'm Shmo . If you need any assistance with your finance , hit us up at wwwitsimplecomau .
PS , I was right about the election , were you actually ?