What drives property prices? In today’s episode Louis Strange and Jayden Vecchio are starting a series, talking about supply, demand, and the fundamentals behind that and how it drives the Australian property market. First up we’re going to be going through demand, how you can identify demand and find the hot spot areas that might meet those categories. We’ll cover five topics including: - Demographics - Interest rates - Credit availability - Speculation & Confidence - Tax benefits For more info go to - http://www.therentvestingpodcast.com.au/property-in-high-demand/

1. WHAT MAKES
PROPERTY
PRICES TO GO
UP?
Boom or bust? What makes property
prices grow year on year?

2. WHAT IS DETERMINES PRICE?
There are a number of factors but it
comes down to where the Supply and
demand of property meet.
therentvestingpodcast.com.au

3. ...WHAT IS DEMAND?
therentvestingpodcast.com.au

4. How much property is in
demand by the people
buying property! The
demand curve is downward
sloping due to consumers
demanding more property
at lower prices.
DEMAND
IS...
therentvestingpodcast.com.au

5. therentvestingpodcast.com.au
There are 4 things that
affect demand:
- Demographics
- Interest Rates
- Credit availability
- Speculation
WHAT
EFFECTS
DEMAND?

6. 01
DEMOGRAPHICS:
Incomesand
populationgrowth.
Higherincomesor
populationswill
increasedemand.
therentvestingpodcast.com.au

7. 02
INTERESTRATES:
Lowerinterestrateswill
increasedemand.
therentvestingpodcast.com.au

8. 03
CREDITAVAILABILITY:
Theeasieritistoborrow
money, thehigherthe
demand.
therentvestingpodcast.com.au

9. 04
SPECULATION: How
muchpeoplethinkitis
goingtohappen.
therentvestingpodcast.com.au

10. HOW DOES DEMAND LOOK?
The demand curve is downward sloping due to
consumers demanding more property at lower prices.

11. therentvestingpodcast.com.au
Supply is the amount of
property and land
available to purchase
WHAT IS
SUPPLY?

12. HOW DOES SUPPLY LOOK?
The Supply Curve is upward sloping due to more
property developments occurring the higher the price.

13. HOW THESE COME
TOGETHER?
therentvestingpodcast.com.au

14. EQUILIBRIUM CURVE
In an open market, where supply and demand meet
will be the equilibrium point for the price of property.

15. BUT... WHAT ABOUT
THE INVISIBLE
HAND!? ✋
therentvestingpodcast.com.au

16. Adam smith coined the
term ‘Invisible Hand’,
referring to that you cannot
see the shifts in supply and
demand, but feel the effects
of the move in price.
WELL...
therentvestingpodcast.com.au

17. WHAT
INFLUENCES
PROPERTY
PRICES?
THE FIVE
FACTORS TO
CONSIDER
BEFORE
BUYING
IN THIS EPISODE WE COVER
THIS IN MORE DETAIL:
THREE THINGS
THAT WILL
PUSH
PROPERTY
PRICES THIS
YEAR

18. FOR MORE
INFO CHECK
OUT THE
EPISODE
HTTP://WWW.THERENTVESTINGPODCAST.COM.AU/

19. E M A I L
jayden@therentvestingpodcast.com.au
louis@therentvestingpodcast.com.au
C O N T A C T N O .
0421 874 357
W E B S I T E
therentvestingpodcast.com.au
THANK
YOU/