Out-performing the property market when vacancy’s at record lows, with Kent Lardner – Ep. 95

In this latest episode of the Geared for Growth podcast, Mike is joined once again by Kent Lardner, Director of SuburbTrends and Founder of 3Comps Pty Ltd. Kent’s background in Market Research and Data Analytics makes him the go-to person to talk all things demographics. In this episode Kent and Mike talk about how to outperform the general market when vacancy rates across the board are sitting at record low levels.

Kent explains why the goal posts have shifted when it comes to analysing regional data, and why traditional filters need to be tightened in order to pinpoint the best investment locations. Mike and Kent look at the Government strategies for dealing with the housing affordability crisis and what you need to be conscious of in your investment strategy, in terms of the flow-on effects of master planning

Kent details where the opportunities are going to come from, taking into account factors such as the aging population and forecast international migration. Providing specific location examples, Kent talks through infrastructure fundamentals such as access to transport and healthcare and gives his thoughts on proximity to resources such as water.

With all the media coverage on the rental crisis and the rising cost of living, Kent provides clear insight into the correlation between rental affordability and homelessness. He looks at the number of years of income needed to cover the cost of a median house price and highlights the need for balance and an equitable approach to investment.

This conversation cuts through the noise and conveys an in-depth perspective on the Australian housing sector. Shedding light on both the rental crisis and the need for ongoing private investment, Kent’s knowledge and experience will guide you in your property journey and expand your thinking well beyond traditional markers of cost and yield.

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In this latest episode of the Geared for Growth podcast, Mike is joined once again by Kent Lardner, Director of SuburbTrends and Founder of 3Comps Pty Ltd. Kent’s background in Market Research and Data Analytics makes him the go-to person to talk all things demographics. In this episode Kent and Mike talk about how to outperform the general market when vacancy rates across the board are sitting at record low levels.

• When everywhere looks good, picking the “goodest of the good”
• Government policies focussing on high density
• Avoiding the Government’s master planned zones
• Where are the opportunities for private investors
• Kent’s rent pain index score
• Overlaying market data on strong fundamentals to find the good locations
• Why considering rental affordability is also important for investors

“You used to get 20 regions or 100 suburbs matching your requirements, now you might get 30 or 40 regions matching those requirements or two or three hundred suburbs – how do you apply some filters to then say well which are the best of those” Kent 2:15

“The market that we now have is no longer an affordable market it doesn’t matter if you build 5 or 5000 or 500,000 apartments at that type of cost, it’s who you building them for so we’ve got this crisis” Kent 4:49

“If you were master planning all of this you would want individual investors to spread out and go to where the government is not going to be building 500 or 1000 or 10,000 apartments” Kent 8:47

“I think the fascinating opportunities are going to be where we get some friendly rezoning scenarios in the Dubbo’s of the world etc where we can focus on properties that might be sitting on 800 square metres and larger and go and build for less than that $500,000” Kent 15:45

“All of our focus has been development of cities along the coastline where there’s only so much land we could use and that’s really been a key driver of housing costs in Australia when you compare and contrast that to America” Kent 21:27

“Zillow and a few other people have done some really good research papers around the correlation between rental affordability and homelessness say if you go above 32% for a prolonged period of time there’s a pretty solid algorithm pretty solid correlation that says homelessness and when you’ve got homelessness in a regional centre or anywhere it hurts everybody” Kent 27:49

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