What You Need To Know To Make Money From Real Estate In 2025
Imagine knowing in advance, which horse will win the 2025 Melbourne Cup.
Or who will win the AFL and NRL grand finals.
Well, as you know I can’t tell you this.
But I can give you something just as good, and maybe even better.
I can give you insight as to what the property market is going to do in 2025.
And even give you some free resources to give you even more valuable information.
Let’s dive in and unpack the year ahead.
Interest Rates – Will They Or Won’t They?
The question on everyone’s lips is what’s going to happen with interest rates.
It’s going to be good and bad news.
The good news is that rates aren’t going to go up.
But if you’re expecting rates to plummet you’re going to be disappointed.
Rates might have fallen recently in the USA and UK, but they haven’t been dramatic.
And our economy is more robust than you might realise which means we don’t need cuts to kick it along.
Also, being back in the target range for inflation doesn’t mean the RBA will automatically cut rates.
It’s more likely they’ll keep things steady.
Plus our unemployment rate is still too low for the RBA to act.
Our view is that rates will come down slightly in 2025, but don’t expect big cuts and don’t expect much action early in the year.
Good News For Our Hip Pockets
Speaking of inflation, things will be much more stable in 2025.
Inflation is at 2.8% which is finally back in the target range of 2% to 3%, but only just.
This is likely to moderate somewhat this year, so the price we’re paying for goods and services will be more stable and predictable.
And this stability is great news for the economy because it gives businesses confidence to invest and grow.
It also means more money in people’s pockets because wage growth is finally higher than inflation.
As a result, people will have slightly more disposable income which they can put back into housing and rents.
Migration To Keep Going At Break-Neck Speed
If you thought we were bursting at the seams, we’re not finished yet.
We’re in for another bumper year of population growth.
Of course, the debate on how much is sustainable is for the politicians.
As investors, our job is simply to watch what’s going on and act on what we see.
And as the population increases, we’ll need more houses for people to live in, and without enough being built there’ll be more demand for everything which comes onto the market.
But before you rush out and buy anything, it’s not that simple.
People will naturally want to live close to great amenities and jobs, so some areas will significantly outperform others.
This is essential to making the most money in 2025.
Investors who nail the location of their next property could be in for enormous gains, while other investors will be disappointed.
You can access our free locations guide here which shows you the best areas to invest in.
The Best Places To Invest
What does all this mean for house prices in the Australian market?
Well, for a start you can forget about the “Australian real estate market’.
There’s no such thing.
Different states behave totally differently, as do different regions within these areas.
For example, house prices soared in Queensland, South Australia and Western Australia in 2024, but stagnated in New South Wales, Tasmania, the Northern Territory and even reversed in Victoria.
Mum and Dad houses in the suburbs were the best performers while top end coastal housing and blue chip mansions suffered badly.
Surprisingly, the best performing areas in 2025 include Sydney and Melbourne which didn’t perform well in 2024.
Our models predict even higher growth in regional areas in New South Wales and Victoria.
Brisbane is also likely to continue to grow strongly.
The Tale Of Two Halves
2025 is going to be a tale of two halves.
Rates are likely to see modest falls during the year, and this will be like firing the starting gun for the market to move again.
In the meantime, investors and buyers are likely to sit on the sidelines with only modest price rises in the first half of the year.
By the end of the year though, with interest rates starting to trend back down, we’ll see buyers and investors with more borrowing capacity and full of confidence flooding back into the market.
This means, the best strategy for investing successfully in 2025 is to invest early in the year before this happens.
You’ll have more options to choose from, access to better deals and lower prices.
And then when the market moves, you’ll get the gains.
Our Prediction?
- Rates will stay pretty steady for the first half of the year with one or two decreases in the second half of the year.
- 2025 will see modest house price rises in the first 6 months with higher increases in the second half.
- The best places to invest will be in Victoria, Queensland and New South Wales with regional areas outperforming their city counterparts.
- The market will be very fragmented with exceptional returns for investors who invest in the areas which are underpinned by strong fundamentals.
- Investors who buy in the first half of the year will enjoy the biggest gains.
Ready To Go Deeper?
When you’re ready to go deeper and nail down the best locations to invest in for you, we have two resources for you.
The first is our exclusive locations report where we reveal the exact locations our data tells us will experience the highest growth for investors in 2025.
These aren’t just the highest growing locations, they’re the best locations for investors because we match the predicted growth with rental returns for maximum gains.
In our previous report we predicted one suburb which grew 25.2% with rental increases of 14.6%.
We also predicted another which grew 17.6% and saw rents go up 5%.
And another which skyrocketed 14.3% in value and where rents soared 9%.
Something which most people don’t realise about investing is that location only plays one part.
More important is the strategy you have.
That’s because your situation and your goals are unique, and growing wealthy in the shortest time possible means investing in
- the right type of property in
- the right locations
- the right time, and
- in the right order.
Most investors fall well short of their potential because they don’t get this right.
To help you map this out, we’re offering you a one-on-one session with one of our experienced strategists.
They’ll look at your goals and your situation, and show you how you can get maximum returns in the shortest possible time so you grow wealthier faster with less risk.
As you can imagine, they’re in high demand so only book a time if you’re serious about your future.
There’s no obligation to do anything with the information we give you either.
We’ll show you what’s possible and how to get there.
And if you choose to use our services to get you there faster and get access to the best deals, we’ll show you what this looks like.
Fill out the form below to request a free consultation with one of our experienced strategists.