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

Timestamped summary of this episode:

00:00:00 - Introduction and Season Update

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

00:02:18 - Predictions for RBA Decision

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

00:04:46 - Breakdown of CPI Groupings

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

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

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

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

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

00:14:28 - Trends in Insurance Premiums

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

00:15:27 - Impact on Retail Sectors

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

00:16:14 - Potential Economic Factors

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

00:16:59 - Understanding Inflation

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

00:17:42 - Conclusion and Call to Action

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

ABOUT THE HOST

BRAD EAST

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

Website → https://wisebuygroup.com.au

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

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

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

In this episode of Talk Property To Me, Luke Morrison from Belle Property in Newcastle shares valuable insights into the current property market in Newcastle and Lake Macquarie. As a specialist in the Minmi Fletcher and Maryland areas, Luke's expertise shines through as he discusses the strong market in the 500,000 to 1.5 million price range, particularly for first home buyers. He highlights the high demand in this bracket and the influx of buyers from inner-city Newcastle looking for larger family homes in outer areas like Fletcher. Luke also addresses the challenges of affordability in the region, pointing out the rising property prices and the impact on first home buyers. Additionally, the discussion covers the impact of COVID-19 on the real estate market, buyer behavior shifts, and the use of auctions versus private treaties.

Timestamped summary of this episode:
00:00:00 - Introduction and Property Market Overview
The hosts introduce the guest, Luke Morrison from Bell Property in Newcastle, and discuss the property market in Newcastle and Lake Macquarie. They question whether the area has missed the boat in terms of property growth and discuss further potential growth.

00:06:21 - Demand for Properties and Auctions
Luke mentions increased open home numbers and outer area buyers showing interest in properties. He discusses the effectiveness of auctions for properties over 1.2 million in creating a sense of urgency and maximizing buyer engagement.

00:10:08 - Rising Property Values and Affordability
The conversation delves into the significant increase in property values (38.4%) compared to income growth (20%) since the start of COVID. They highlight the affordability issue in Newcastle and Lake Macquarie, making it challenging for first home buyers to enter the market.

00:11:25 - First Home Buyers Challenges
Luke elaborates on the challenges faced by first home buyers, including the increase in average first home buyer budget to around 900k and the difficulties in finding properties below 800k to benefit from stamp duty concessions.

00:11:58 - Stamp Duty Benefits and Property Prices
The conversation concludes with a discussion on the sliding scale of stamp duty benefits based on property prices and the challenges of finding properties below 800k amidst rising property prices in the area.

00:12:27 - Property Market in Newcastle
Luke discusses the current property market figures in the north Lampton area and the potential for property value increase in Lake Macquarie Newcastle areas.

00:13:09 - Predictions on Interest Rate Decrease
The discussion revolves around predictions of interest rate decreases by economists, and the potential impact on property prices.

00:15:11 - Impact of Rate Decrease on Property Prices
The conversation delves into the psychology of rate decreases leading to increased property prices, and the potential half a percent decrease before the end of the year.

00:16:44 - Market Activity During School Holidays
The hosts discuss the impact of school holidays on market activity, with expectations of a slight dip and a potential boom after Anzac day.

00:19:45 - Impact of Age on Tolerance for Alcohol
The conversation takes a turn towards personal experiences with alcohol, discussing the impact of age on the tolerance for alcohol and the decision to stay sober.

ABOUT THE HOSTS

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

Website → https://wisebuygroup.com.au

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

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

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

CASEY TAYLOR
Casey Taylor is the Managing Director of Taylored Property Welth who specializes in helping clients purchase high-performing investment properties. Casey has a huge amount of knowledge when it comes to property investment and will be sharing this with the listeners.

Website → https://tayloredpropertywealth.com.au

LinkedIn → https://www.linkedin.com/in/wealth-property-buyersagent-investment-financialfreedom/

Instagram → https://www.instagram.com/casey.taylor_tpw_buyersagent/

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

In this episode of Talk Property To Me, hosts Brad East and Casey Taylor engage in a comprehensive analysis of the RBA meeting, economic indicators, and property market trends, offering valuable insights for listeners looking to understand the current landscape and make informed decisions in the property and finance sectors. With Casey's expertise, the conversation delves into the impact of RBA decisions on interest rates and inflation, challenges in the construction industry and housing supply, migration trends and housing demand, investor lending and property market confidence, and rental market pressures. With a critical perspective on economic and market forecasts, the episode emphasizes the importance of informed decision-making and thorough research for property investments and buying property. Casey's insights make this episode essential listening for property investors and potential homebuyers, providing a nuanced understanding of the complexities of the property market and guiding listeners towards informed decision-making in their property ventures.

Timestamped summary of this episode:
00:00:00 - RBA Meeting and Interest Rates
The RBA meeting held interest rates at 4.35%, citing concerns about rising fuel prices and inflation. Speculation about potential rate cuts in the future, with economists predicting a possible reduction by the end of the year.
00:07:50 - Property Market Numbers
Building approvals are significantly below the government's target, while overseas migration is increasing demand for housing. Despite more people coming into the country, construction businesses are collapsing, making it challenging to meet housing demands.
00:11:25 - Builder Caution and Listing Levels
Caution advised when choosing a builder due to the risk of builders going bankrupt. Listing levels are below five-year averages, leading to a shortage of available properties in the market.
00:12:34 - Investor Confidence and Rental Market
Investor lending is up 18.5%, indicating increased confidence in the property market. Low vacancy rates in major cities are putting pressure on the rental market, making it difficult to find available properties.
00:13:38 - Property Market Trends and Demand
Current property market trends reflect extremely low vacancy rates and minimal days on the market for properties, indicating high demand and strong investor interest in the market.
00:14:14 - Property Market Trends
Brad and Casey discuss the current property market trends, noting increased days on the market and varying growth rates across cities.
00:14:56 - City-specific Growth
The conversation highlights the growth rates in Sydney, Melbourne, Brisbane, Adelaide, and Perth, with some cities performing strongly while others remain flat.
00:16:09 - Quarterly Performance
Quarterly growth rates are compared, with Brisbane, Adelaide, and Perth showing significant growth, while Melbourne and Sydney have varied performances.
00:17:19 - Rental Income and Gross Yields
The discussion covers the annual change in rents and the impact on gross yields, with Perth, Melbourne, and Adelaide showing substantial increases in rental income.
00:19:30 - Future Market Outlook
The conversation concludes with a positive outlook for the property market, emphasizing the importance of taking action now before rates reduce and competition increases.

ABOUT THE HOSTS

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

Website → https://wisebuygroup.com.au

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

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

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

CASEY TAYLOR
Casey Taylor is the Managing Director of Taylored Property Wealth who specializes in helping clients purchase high-performing investment properties. Casey has a huge amount of knowledge when it comes to property investment and will be sharing this with the listeners.

Website → https://tayloredpropertywealth.com.au

LinkedIn → https://www.linkedin.com/in/wealth-property-buyersagent-investment-financialfreedom/

Instagram → https://www.instagram.com/casey.taylor_tpw_buyersagent/

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