People often say you should look at population growth to try and predict capital growth. The idea is that if an area has population growth it is a desirable area and that will lead to capital growth.
However, there is a fundamental flaw in this assumption and today I sit down with Jeremy Sheppard from Select Residential Property to discuss why population growth DOES NOT predict capital growth.
Select Residential Property Article: Avoid High Population Growth Suburbs – https://selectresidentialproperty.com.au/busting/avoid-high-population-growth-suburbs/
0:00 – Introduction
0:45 – Macro vs micro level
2:50 – Population growth is a lagging indicator of supply
3:40 – Really you want a suburb where there is little to no population growth but the suburb is still desirable
4:52 – Taking the macro and applying it to the suburb level
6:17 – What to look at instead of population growth
6:43 – Population decline is a negative indicator
8:25 – Other issues with looking at population growth
9:23 – When population growth is a negative indicator
https://onproperty.com.au/875 – Visit the site for a full transcription and downloadable audio version of this video.
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