2023 is a very special year for us as it commemorates twenty-five years since we began this journey.
Since then, the world has certainly changed. Our access to information has significantly increased, but with this, mental health has become an epidemic. I want to give you some certainty.
I’d like to discuss one Custodian we’ve had with us since the start to show you that our process works. Buying their first Custodian property in 1998, it was a 1000m2 block in Pimpama with a 220m2 4-bedroom home. Both the land and house cost $180,000. This land is now worth over $1.1 million.
What’s more is that the land can now be subdivided, with the median house price in that area $780,000. This Custodian now owns fifteen properties with a net asset of over $5 million.
What made this client succeed is their positive mindset which didn’t allow them to procrastinate. They stayed focused, self-improved and enjoyed the journey with those around them.
Point number one to remember: Don’t let the media intimidate you. Throughout Custodian’s 25-year history the media have constantly reported on events they claimed would destroy property value and property investment. They never have. The median price of property is still doubling and doubling and will continue to do so.
The time to buy is whenever, regardless of what the media tells you.
We know the truth. Land appreciates, you can’t make more of it.
Point number two: We are seeing a combination of things we have never seen before. Australia is wealthy, has high migrant numbers, low vacancy rates and smaller blocks of land are being sold.
For the first time Australia is really wealthy. Our housing market is worth $9.3 trillion, and this wealth is being passed down. Every year there will be $240-270 billion passed down through inheritance.
We’re also expecting to see the highest migration numbers in 2023, paired with the lowest vacancy rates I have in 40 years.
Australia is expecting 800,000 to one million migrants this year, and 500,000 of these will be students.
This week the Chinese Service Centre for Scholarly Exchange announced that students must complete their study on campus for their degree to be recognised. This has students rushing back to Australia, with 50,000 expected to arrive in February alone.
We’re expecting a lot of these migrants, particularly skilled migrants, to head to Adelaide and Southeast Queensland to reap the benefits of the development in infrastructure, job opportunities and extended visa for living in a regional area.
To add to this, we are seeing the lowest vacancy rates in 40 years at 1.3% and Adelaide, Brisbane and Perth are leading the way with vacancy rates under 1%. People are often not even hearing back from the agent after submitting rental applications.
What’s more is that in 2023 we are seeing smaller blocks being sold, as little as 70m2. The solution to housing affordability is housing density.
Point number three: What can you learn from 2022 and how is 2023 looking.
The Queensland market was especially interesting in 2022. While the number of houses over $1 million went down, houses between $500k and $1m continue to rise. This tells us one thing – focus on affordability!
The new year has also brought discussion around whether interest rates will rise again. It does not matter! They will go up and come down again and the second they come down the market will go up again. Do not let it prevent you from investing in property.
Last week we saw that 2023 is off to a great start with the auction clearance rates well into the 60 to 70% range, which we haven’t seen in months. There’s so much pent-up demand but very low volumes of stock, landlords are not selling because they don’t need to.
Point number four: A needle in a haystack investment opportunity.
Panora Rise, a development in Narangba in South East Queensland has seventeen lots available, up to 800m2. It’s very rare to find lots this size in SEQ, particularly this close to Brisbane’s CBD.
What makes this opportunity even better is that the benchmark of homes in this area is $800,000, yet these land and home packages are selling between $700,000 and $750,000.
This is a property you’ll want to hold onto during the lead up to the 2032 Olympics, as Brisbane invests in infrastructure ahead of their expected 31% population growth in the next ten years.
The last thing I’d like to leave you with is maintain a positive mindset.
The most important thing is to not focus on the negatives which the media often does.
Spend time you positive people and make sure that everyone that comes out of your mouth about everyone and everything is positive. A positive environment is vital to maintaining a positive mindset.
If you want to change your mindset you need to change your diet. There are things in our diet that are causing us stress. Therefore, I am once again undertaking the Custodian initiated, CATS Challenge where I cut out caffeine, alcohol, tobacco and sugar for February and I urge you to join me!
Let’s make the most of 2023,
JF
