At the latest AltX Insight Series event in the Hilton Sydney, industry experts shared an optimistic outlook for the property sector in 2024 and what it means for wholesale investors. 

Speaking to an audience of wholesale investors at our latest Insight Series event, Co-Founder and Co-CEO Nick Raphaely expressed confidence in the property market’s current state, explaining, “we are seeing a lot of deals at the moment, which is a function of us growing and the commercial lens which we apply to our credit process but is also a great indicator of how investors are feeling about the property market.”

Contrary to market expectations, rates of return from property deals have also increased and AltX is paying that forward to its investors – more than 90% of AltX property deals are secured by residential property, with good deals and solid returns on offer without taking undue risk.

“We feel there is a good level of confidence in our sector,” said Raphaely. “Our LVR maximum is 70% but the reality is most range from 50%-60% and we focus on property that is not owner occupied and with a sound exit strategy.”

AltX has observed a significant increase in settlements from April to May, indicating a spike in deal volume and investor appetite. We attribute this trend to our growing presence in the market and our stringent credit process, which ensures sound investment opportunities.

Sharing Raphaely’s positive predictions at the event, Peter Raptis, Director of Property Valuations at Acumentis Group also commented that property prices have experienced an upturn in the past three months, despite rising interest rates. "Rising interest rates put downward pressure on property values in 2022, but the market bottomed out in February/March of 2023 and we have seen an upturn in property prices in the past three months,” explains Raptis. “Property prices are coming back up, which doesn’t probably make sense when you consider all the rate rises we have had, but the market has turned.”

Economic Indicators

The upbeat outlook for the property market is supported by economic indicators which point to population growth (which has increased from 1.6% in February to 2% in May this year) and the recovery of construction supply chains as providing a strong platform of growth for the property market. Further to that, although interest rates are putting added pressure on household spending, most investors are managing interest rate hikes and avoiding defaults with housing bad debts falling to a 15-year low. Business confidence and conditions are improving as labour and purchase costs fall, providing a lead indicator that inflation will fall, a trend which is already being seen around the world. These factors together with investor resilience and good saving levels across Australia, are providing a buffer and supporting the outlook for a soft landing for the economy whilst also highlighting investor’s capacity to invest in the year ahead.

Crucial Certainty

AltX has observed a significant increase in settlements from April to May, indicating a spike in deal volume and investor appetite. The company attributes this trend to its growing presence in the market and its meticulous credit process, which ensures sound investment opportunities. So how should investors approach the next 12 months? Co-CEO and Co-Founder Steven Beinart, encourages investors to remain cautious and seek businesses that have a strong track record to earn good returns on their investments. “AltX focuses on delivering capital preservation and interest payments to investors by focusing on speed, certainty, creativity and good credit in their investment decisions,” comments Beinart.