Eternal Homes Projects

Unlocking the Mind: How Cognitive Biases Influence Real Estate Decision Making. In this video, Martin Eftimoski - Head of Research and Technology at Eternal Homes Projects , shares the most common cognitive biases that are present in real state investment, and their impact in decision making. Are you looking to access the best bluechip housing stock across the country? Want access to great commisions, seamless backend sales support seamless backend support and updates, as well as attractive commissions? Contact us today by sending a on our page, or email: sales@eternalhomes.com.au #eternalhomesprojects #ehp #cognitivebiases #realestate #industry #property #investment #data #analysis #economic #signals

The best way to own a home in Australia, is to own a home in Australia. This just follows from the observation that the gross return of unlisted residential real estate in the last 20 years has been higher than any other major asset class in Australia. Since the marginal product of capital allocated to real estate has been the highest of all major asset classes, there is no conventional asset allocation you can make domestically that will outstrip the capital growth rate of real estate. Which is the capital growth rate that you need to achieve in order to maintain the purchasing power of your existing capital base (savings) in order to buy a home. That is, if your saved capital is not already allocated to real estate its relative purchasing power for real estate goes down over time. Alternatively when it comes to labour income, the challenges are much more commonly understood. More specifically the rate of labour income growth has been slower than house price appreciation. But more broadly, labour income growth has been slower than capital income growth since the 1980s. Thus accounting for the increasing share of capital income in the share of the economy's total factor income (as shown in the graph below). Exactly how much these trends will continue is hard to say. But the millennial meme about wishing they had bought a home when they were in kindy is actually fairly reasonable. There really would not have been another way for the average person, with the average career and the average investing experience to buy a home in Australia, other than already owning a home in Australia. #realestate #houseprices #australianproperty

And I call it the salvation of millennials, the new Jerusalem on the Yarra, or colloquially, the city of Melbourne. Median rents in Melbourne have certainly increased a lot in the last few years, just like everywhere else in the country. However, when it comes to real estate, it is not always about the absolute, but often about relative outcomes. In 2020, Melbourne was the second most expensive city to rent a home in terms of dollar values, but by 2024, it has become one of the cheapest, if not the cheapest major metro city. To see this turnaround in absolute dollar values is certainly impressive. Where did this change come from? I suspect the supply response of new housing in Melbourne is a key factor. Policy and geography drivers behind this trend suggest it will have significant momentum going forward. I expect the Melburnian experience to start to look materially different from the rest of Australia in two years' time. Interestingly, surveys suggest that the majority of Australians believe supply has no impact on house prices, but I have found this to be one of the biggest investing fallacies in the real estate sector. #houseprices #australianrealestate #melbourne

Some very thought-provoking insights from our Head of Research and Acquisitions, Martin Eftimoski. Real estate in Australia offers a clear and nuanced picture of investment returns, offering dependable returns proven time and time again over the long term.

In this episode of our Area Snapshot Series, Martin Eftimoski, Head of Research and Acquisitions, analyses Caboolture, a coastal town located in Brisbane, Queensland. Watch now as Martin shares why this region is of particular interest, due to: - Caboolture experiencing a significant improvement in employment, with the unemployment rate dropping from double to single digits, indicating strong job growth in the area - Caboolture's high population growth rate, notably higher than the Queensland average - Caboolture's demographic composition skews younger, suggesting a youthful and potentially dynamic population base. For more information, visit https://lnkd.in/gH9mAkuM #caboolture #queensland #areaprofile #investment #population #growth #residential #development #economy #ehp #eternalhomesprojects

Happy Easter from our family to yours! 🐣✨ May this holiday period bring you the promise of peace, happiness, and the warmth of family bonds. As we celebrate this special day, let's cherish the moments that bring us together and create memories that will last a lifetime. Wishing you all the joys of Easter filled with happiness and renewal! Our office will be closed Monday 1st April, and will re-open 9:00am Tuesday 2nd April. #HappyEaster #family

In this episode of our Area Snapshot Series, Martin Eftimoski, Head of Research and Acquisitions, analyses Jimboomba, a town poised for high growth, located in Logan city, just 43km from Brisbane's CBD. In this video, Martin shares why Jimboomba is of particular interest, due to: - Jimboomba's population growth rate significantly outpaces Queensland's average - Jimboomba boasting strong labor market with low unemployment and high participation rates - Jimboomba's population growth rate significantly outpaces Queensland's average For more information, visit https://lnkd.in/gH9mAkuM #jimboomba #eternalhomesprojects #land #forecast #realestate #queensland #australia #property #market #investment #investing #infrastructure #transport #development #EHP #areasnapshotseries #areaprofile

We're excited to bring you our brand new Area Snapshot Series, where we uncover Australia's most promising suburbs and regions that are poised for major population growth, transport and infrastructure development. In this first episode, Martin Eftimoski, Head of Research and Acquisitions, analyses Queensland's economic landscape within a real estate context, while making a side-by-side comparison with other states across the country. #areasnapshot #queensland #realestate #Property #data #proptech #eternalhomesprojects #ehp #market

There are 2 distinct indices for US home prices, one for new builds, and one for existing builds. Yet in Australia we jumble these structurally different markets together in our headline price indices. At Eternal Homes Projects we are working on an interesting project to seek to investigate this in an Australian context 🤫 #eternalhomesprojects #houseprices

Build cost spike + Population surge + Declining purchasing power = Housing crisis How should we approach the housing crisis? By considering the concept of quality-adjusted housing consumption. Navigating the Housing Crisis: Understanding Through Quality-Adjusted Consumption Quality-adjusted prices correct price indices to reveal the true impact of changing prices on real consumption. For instance, newer iPhone models may cost similar to their predecessors but offer substantial improvements. Thus, even if nominal prices remains static, quality-adjusted real consumption increases, you are better off in real terms. In Australia, however, we're experiencing the opposite effect, with traditional metrics like CPI failing to capture the essence of the crisis. Current Manifestations: Pandemic Effects on Household Size: With reduced immigration, average household sizes decreased, and people enjoyed more space without increased rent. Now, as the population rebounds, rents rise, forcing us to pay more for less space – a decline in quality-adjusted consumption. Rising Construction Costs and Supply Constraints: The increase in building costs and the collapse of many builders have escalated new housing prices. Coupled with high interest rates, this constrains the affordability of new housing stock and has led to a demand for cost-cutting in new builds. Something we commonly see at Eternal Homes Projects is a demand for lowering ceiling heights, 2.4m instead of 2.7m. The end result is paying more for less quality, due to sharp build price increases. Understanding the housing crisis through the lens of quality-adjusted housing consumption sheds light on the challenges ahead for the Australian housing market. A good immediate application of this, is let's say you assume that prices are not going to be able to grind ever higher (though they might). Then people will increasingly accept a lower quality-adjusted housing solution for the same situation. And it might be a good idea to get into that solution as early as possible. #housingcrisis #houseprices #realestate