Are you missing out on earning $500 a day with real estate investments? In this article, we explore the booming Australian property market, revealing why it's never been easier to get started. Delaying your decision could cost you thousands. Learn how to make smart investments now and secure your financial future.
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No one likes losing $200 to $500 every single day.
This is exactly what's happening right now by not making a move in buying real estate in the right markets.
In this article, I want to break down the following:
If you are interested in what my thoughts are, then keep reading…
When I did the numbers, it actually blew my mind to understand what's happening out there.
For example: Sydney, being the largest and most expensive market in Australia, has a median value of about:
Over the past 12 months, according to PropTrack, the median house value has gone up by:
This is despite all the concerns around:
This data includes both houses and units. If you were just looking at houses, the median is closer to about $1.5 to $1.6 million. Again, this is Sydney.
In general, in the suburbs around you, those numbers might be higher or lower.
When you think about those numbers, you might say: 6% on $1.1 million… yeah, like who really cares?
Well, if you actually break it down per week and per day, this is where it gets scary. Every day you put off sending your documents to your mortgage broker, or booking in that call with Ravi Sharma or Search Property to actually go out there and execute, you're actually losing a lot of money.
I'm not just talking about the cost of a cup of coffee a day.
I'm talking about significant money.
If you looked at Sydney's example, that would be $185 per day.
If you just said: hey, well, I’m on holiday. I don’t really want to think about this…
One week is costing you about…
We complain when our rent goes up by $150 or $200 a week, yet we’re okay losing $1,300 per week. Now, this is just Sydney and yes, Sydney is really expensive. So if we decided to look at another market where the numbers do make sense—or definitely did about 24 months ago (I’m talking about Perth)—if you looked at the numbers there, it's actually quite scary to think how people have missed out on one of the greatest opportunities to build wealth with real estate.
Perth's median value over the last 12 months is:
Definitely not normal, but it's playing catch-up in this phase of the cycle. This is what we were talking about on my YouTube channel about 3 years ago.
Now, the median value is about:
This means over the last 12 months, it’s roughly about $150,000 to $170,000 worth of growth. So if you just purchased a property there—and yes, it would depend on the fact that it was in the right area, didn't have issues when it comes to bushfires, and things like that—you would have made about $3,200 per week.
Most people will not even be able to save that with two people working in their own household, and that would equate to $450 per day.
I don’t know about you, but I would love to see my portfolio go up by $450 per day, especially when getting into property there was a lot easier 12 months ago, and all you really needed was about $70,000. On a return of $70,000, you’re making almost $500 a day. That sounds like a good deal to me.
Now, will this continue?
Well, nobody really knows.
What I’m here to say is:
I know that people say: “Oh well, affordability is the concern, Ravi. No one can afford for real estate prices to keep going higher.”
Well, I’m going to challenge that thought and get you to think about something differently. I think when you change your perspective, it’s going to change the way you think about investing—and investing with speed.
When it comes to affordability concerns in Australia, nothing has really changed. It's just the new generation that complains and says the previous generation is the one that cooked it, and now it's really difficult.
This is exactly what has happened time and time again, and I’ll use my own example.
When I look at today, and I speak to a lot of you guys who contact me and book sessions, and I talk to my team, we’ve realised that people are still going through the same things I went through 11 years ago.
When I had to purchase my first property, I was born in Sydney and had intentions to live here for the rest of my life. I wanted to buy real estate in Sydney, and when I looked at the prices versus what I was making, I was like: it’s too expensive.
The only thing I could afford was probably a unit or a house that was quite far away and might be in really bad condition. So I thought: I don’t want to go through that, let me look at alternative markets.
At that point, I went and bought a property in Regional New South Wales.
What’s even crazier is my parents moved here about 45 to 50 years ago into Australia. They migrated here and went through the typical migrant story, which is: things were really difficult. I had to save every dollar I made.
However, at the same time, there was usually one parent working and one parent at home, so that’s definitely a change from what we are seeing today.
Why? Well, most couples are both working.
Now, when I’ve spoken to them about that story, I’ve asked them: what was it like buying real estate back then? Because, to be honest, you should have just bought in Bondi and we would have been really rich now.
In response, they said: well, it was actually really expensive. In fact, where we ended up buying, which was in the southwest of Sydney, it was actually really expensive at the time.
Because my mum was taking care of my brother and me, my dad was working three jobs, and I’m not even kidding. It wasn’t one of those stories like: I walked 5 km just to get to school. My dad dropped out of school and was working really hard. Then they got married really young, and mum was taking care of us while dad was working a full-time job. He would work a job on the weekends, and then he would do nightfill at Woolies as well, which is actually incredible—hats off to him.
However, the reality is even back then, it was hard to buy real estate. It was impossible to buy a house anywhere close to the city, so they ended up buying a house. There were like three or four families living in the same home. I think at one point, there were 12 family members living in a house, which was actually a four-bedroom house with one bathroom. Like, 12 people? With one bathroom? That sh*t is wild.
Now, the reason I bring up that story is because there are similar stories happening right now all around Australia.
We have so many migrants coming to Australia, and people often think: why do we have so many migrants coming into the country?
It’s not just because we say: hey, come into our country. Look at us. But because Australia is a safe haven and it’s a very desirable area, especially for people wanting to grow their families. This is why so many people want to move to Australia.
Now, believe it or not, Australia is actually quite young. It’s an emerging market, and when you compare markets like Sydney to London or the United States, Miami, Los Angeles, it gives you a lot of perspective as to how bad things are actually overseas compared to here. What we need to look at is the price affordability index.
Let’s have a look and compare it to Australia:
This is just the price-to-income ratio.
There’s a lot of colours there, and it’s probably not going to make too much sense, but if we looked at something like Australia, it says that the price-to-income ratio is 8.41, which means your income multiplied by 8.41 is what you would need to be able to get into the property market.
Now, if you looked at other areas, and you looked at, say, the United States, it’s coming in at 3.32.
However, what’s really skewed here is that the market is so big there, and if you looked at specific areas like LA, it would be very different from other areas that are less desirable.
You go up here and look at Canada, which obviously on the map looks huge, and that’s at 10.39—a market that’s very similar to Australia because it does have appeal when it comes to migration as well.
Now, let’s see where Australia stands.
Let’s take a look first at China, which is at 29.4.
This just gives you a perspective of how young our country is, but also how different it is when you go overseas.
Now, although housing affordability has always been a concern, let’s have a look at how bad it actually is right now. This is going to feed into the whole narrative of why I believe now is the easiest time to get in.
Yes, it would have been easier 12 months ago, but I don’t think it’s going to be easier 12 months from now, which is why you need to move at speed. You need to start acting on that knowledge you have.
Now, let’s take a look at this report from PopTrack:
You can clearly see that we’ve just been on a complete downtrend.
Although from the period of the GFC up until about the pandemic, we did see housing affordability stabilise, now we're back at those concerning levels.
When you look at housing affordability by state from 2022 to 2023, the higher the number, the better it is.
You can see Western Australia is still leading. However, if you look at the updated numbers, you're probably going to see this closer to about 50% rather than that 75%, but it’s still the highest when compared to New South Wales, which is close to 25%. This brings the average across Australia to just under 50%.
A large reason for why it’s so difficult is due to where interest rates and housing prices are. You're actually having to pay a lot more when it comes to interest repayments and mortgage repayments in general.
As you can see in the graph above, we peaked in 1990, again just before the GFC, and now, we're on a rapid rise to the top.
What you’ll also notice is that around these peaks, we did experience a recession in the economy. This doesn’t necessarily mean that prices just fell off a cliff, but it did mean that we had interest rates come down.
Everything is lining up where you pretty much have 2 to 3 years to go in this property cycle before interest rates fall, and then you’ll have a bunch of people who have been sidelined coming in to try and buy property.
Now, it may be the top in 3 or 4 years, but the plan is that if you are going to go down that path, you need to know what your budget looks like.
You need to know if you've got an emergency fund so you can protect your downside, which is always key.
I don't know about you, but I would much rather be in the market than out of it.
If you look at historical data, there are always going to be periods of growth and decline. When you put that on a graph, you'll find that the declining years are usually 1 to 2 years.
This is why we always talk about:
Why? Because chances are, you'll experience 2 or 3 years of declining value, but the reason you stick it through those times is that you then have 8 to 9 years of rapid growth.
Let’s take a look at this headline from Domain. It says:
When it comes to affordability, you're looking at units and houses.
It’s clear from the graph above that houses have outperformed units. However, units have still gone up by 3x over that 30-year period.
I know it's a hard truth to hear that housing is going to get more expensive. You might think: I could have bought a property 3 years ago, but now I'm priced out of the market.
The reality is, it doesn't get easier than this. Yes, we're going to have ebbs and flows, and we may have some years where prices stabilise or even decline a little bit.
However, the reality is, it will always get harder. With Australia being so attractive for migrants, I don't think the Australian government is going to just turn off that tap. Rising construction costs to build new homes are making it so difficult to get supply to the levels needed to meet demand, which really points to higher house prices.
I think the reality is, over the next 15 to 20 years, buying a house will become an absolute luxury because it’s going to be so far above our means to service a loan, let alone get the deposit to buy that house.
If we see house prices go up by 3x or 4x, you're looking at 5 to 7 million dollars when it comes to buying a house.
I know that sounds wild, but when you think about my story from 11 years ago, and then my parents' story from 45 to 50 years ago, it’s the same thing—except the stakes get even higher.
A classic example of this is when you break down Sydney in general.
When you look at the house prices in some areas of the West, you might think: Yeah, $1.5 to $2 million, okay, I can probably just get in. It's still within reach.
However, when you think about Point Piper and you see prices like $50 million, it feels unattainable.
This is what I think the world is heading towards.
I think when people think about houses in Australia, it’s going to be similar to thinking about Point Piper—so far outside of our reach, rather than something still attainable.
If you're in a position where you can still buy land in Australia—being a house in a good area where the numbers make sense—I urge you to take action.
If you want to go and do it yourself, keep in mind that it’s probably going to take you about 3 months to get in.
What’s really interesting is that 62% of the people in a survey by Mortgage Choice found that they had to get multiple pre-approvals, because a pre-approval usually lasts about 3 months.
This tells you that people weren't able to find the house they wanted within those 3 months, which means every 3 months, you would have to:
I spoke to two people only 5 days ago, and they told me that they could have bought a house but didn’t because they were scared.
Now, they’re priced out.
I don't tell you these things to scare you, but the reality is that houses are becoming even less affordable. If you have the idea of home ownership, then you have a couple of ways you can approach it.
You can rush into buying anything just for the sake of owning something, or you can be strategic about it. Buy in the right locations, have the right mentor or strategist on your side to navigate this, and get ahead.
Why? Because if you do what average people do, then unfortunately, the average person will not be able to own a home in Australia—let alone in Sydney.
I hope you guys have enjoyed this article!
I know sometimes the truth can hurt, but if you need help, please reach out. We’ve grown our team to help more of you out there, so definitely book a free discovery call. The calendar does get booked out, so don't delay.
I'll catch you guys on the next one.
Thanks, guys!
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