How to unlock dream suburbs + capitalising on tax loss selling

Hi everyone,

Happy Friday!

It’s been a busy week for me filming Kochie’s Budget Challenge case studies for the upcoming new series of Your Money & Your Life. It was fun catching up with two Melbourne families and going through their bills, with the help of the experts at Compare The Market, to find them some savings. We ended up saving one couple over $10,000.

It was also fun spending time in my old suburb of Camberwell. We loved living in Melbourne for 10 years; two of our kids were born there.

My reading time has been a bit limited this week but I started reading An Artist Of The Floating World by Kazuo Ishiguro which my eldest granddaughter is studying for her Year 12 English. It is set in post-WWII Japan and is narrated by an ageing artist. I thought it would be a bit highbrow for me but, I must admit, I’m really enjoying it.

Enough from me, let's get into this week’s newsletter:

• Women continue to underpin the strong jobs growth.

• Property is the ultimate wealth winner… for the moment.

• The investment analysis of agricultural giant Elders.

• Tax loss buying on the sharemarket in the lead up to the new financial year.

• Buying an apartment as a stepping stone into your favourite suburb.

• The pros and cons of buying into the regional housing market.

Women underpin the strong jobs market

After a massive 87,000 new jobs were created in the month of April, it was no surprise there were just 2,500 new jobs available in May. The jobs market is still very strong with the unemployment rate steady at 4.1 per cent and an incredible 362,000 jobs created over the last year.

Thank goodness for continuing immigration to help fill those jobs, otherwise the skills shortage would be critical.

Full-time employment rose by 38,700 jobs while part-time employment fell by 41,100. Female employment lifted by 14,000 and male employment fell by 17,100. Over the past year, female employment has risen by 3.1 per cent and male employment by 1.5 per cent.

While the job market is strong, there is now a few little signs of concern. While job ads remain elevated but steady, the NAB survey on employment intentions has fallen to a cyclical low.

State-based numbers show some divergence. QLD, WA and SA saw positive employment gains in the month with NSW and Vic seeing falls. NSW and Tas have the weakest employment growth over the past year.

Property is the ultimate wealth winner … at the moment

Every investment goes through a boom/bust cycle, so you need to be careful about assuming current performance is indicative of future performance. Most often, it’s not.

But property is going through a real purple patch at the moment. Very few other investments can boast a 94.9 per cent probability of making a profit. Property research group Cotality (formerly CoreLogic) has a Boom Bust Index and for the March quarter found the portion of profit-making property sales nationally was a phenomenal 94.9 per cent.

But the median profit nationally was $305,000, down from $310,000 in the previous quarter, which marks the first financial quarter since March 2023 where the median nominal gains fell.

The few sellers (just 5.1 per cent) who did make a loss on the transaction made slightly smaller losses - $44,000.

Brisbane claimed the top spot for profit-making resales in Australia, with almost all resales making a nominal gain (99.7 per cent).

Houses were far less likely to see a loss than units, with only 2.8 per cent of houses selling for less than the purchase price. Units had a loss-making sales rate of 9.9 per cent in the quarter.

• Brisbane claimed the top spot for profit-making resales in Australia, with almost all resales making a nominal gain (99.7 per cent).

• Adelaide recorded the second-highest rate of profit-making resales in the March 2025 quarter, with 98.9 per cent of transactions delivering a nominal gain. Adelaide overtook Sydney for the highest median nominal gain from dwelling resales among capital cities in the March quarter, a title held by Sydney since August 2014.

• Perth recorded the third-highest rate of profit-making dwelling sales in the March quarter, with 97.9 per cent of resales achieving a nominal gain.

• Sydney saw the third-lowest rate of profit-making sales across the capital cities behind Darwin and Melbourne but still saw over 90 per cent of resales make a nominal profit (92.3 per cent of resales in the quarter).

• Melbourne recorded the second-highest rate of loss-making resales of the cities behind Darwin in the March 2025 quarter, at 11.3 per cent. Aside from the 12.0 per cent result in the three months to February, this was the highest rate recorded since the late 1990s.

• Hobart maintained a high rate of profitability in the March 2025 quarter, with 94.5 per cent of resales achieving a nominal gain.

• In Canberra, the rate of profit-making sales rose by 1.3 per cent in the March quarter, to 94.5 per cent.

• Darwin posted the highest rate of loss-making resales, with 26.2% of sales recording a nominal loss in the March quarter.

Stock of the week: Elders

Agricultural giant Elders as been a constant disappointment when it comes to share performance for a long time.

I love hosting The Call on ausbiz (and streaming on the ausbiz app, SevenPlus and Samsung Smart TVs) when I can, and particularly when the expert panel is Gaurav Sodhi from InvestSmart and Mathan Somasundaram from Deep Data Analytics.

In the past Mathan has been a big supporter of the whole ‘invest in agriculture’ theme and in Elders … but Gaurav? Not so much.

Every day, The Call analyses 10 stocks, suggested by viewers, in 60 minutes.

Ausbiz viewer, Brodie, wanted an update on Elders, saying:

“I know that just about every panelist stays away from agriculture stock. Nonetheless, I bought AAC $1.76 (now $1.37), Grain Corp $7.75 (now $7.89) and Elders $8.80 (now $6.26).

“Now, while I'm prepared to ride the roller coaster on AAC and Grain Corp, I'm wondering why on earth Elders just continues to flatline. Given that it is a highly diversified company, I figured that the bad times in one division would be matched/bettered by the good times in another. Not so.

“Do they have a well-run company or are they just sitting on the back of a Toyota HiLux in a vacant paddock chewing straw?”

I loved that last comment😂

Mathan could feel Brodie’s pain as he has been an investor in Elders for quite a while and has been waiting for it to perform as well. But he is keeping the faith and believes Elders’ share price is not reflecting the true worth of the overall business and also not acknowledging the current strength of the agricultural commodity prices.

He says Elders is one of his ‘GARY’ stocks - that is, growth at reasonable yield. That’s a new term for me, but I like it.

The Elders dividend yield is currently at a healthy 5.7 per cent and Mathan believes a good annual result (coming out in August) could be the spark it needs to push the share price higher.

Gaurav hasn’t been as big an Elders fan as Mathan, but he agrees with his analysis that Elders is a good buy at these levels.

Tax loss BUYING

The second half of June is when a lot of share investors look at their portfolio and identify those stocks that have lost money and they’ve lost faith in. The rationale is to sell the disappointments so that you can use any capital losses to offset the capital gains made on your winners sold during the financial year.

Capital losses can offset capital gains when working out if any capital gains tax is to be paid after the end of the financial year. Usually, the share price of those stocks being sold for tax losses goes down during this period.

Traditionally investors just watch and observe the ‘tax loss selling season’. But it was interesting that on that same episode of The Call, Gaurav and Mathan have a list of stocks they are waiting to buy when their share price drops as investors ditch them. They see this time of the year as a buying opportunity for selected stocks out of favour with the market.

Neither of them would disclose what was on their buying list, but the following day my ausbiz colleague Nadine Blayney put the question to Luke Laretive from Seneca Financial Solutions and Rudi Filapek van Dyke from FNArena.

Luke is looking to buy James Hardie and Monash IVF during the tax loss selling season while Rudi has Dicker Data and Macquarie Telecom in his sights.

Using home units to get a leg into your favourite suburb

When Libby and I first got married we bought our first property - a two-bedroom home unit - in North Ryde in Sydney. As Libby always reminds me, she had the savings for the deposit, not me.

Three years later we graduated to a three-bedroom townhouse and then, later, a house.

Buying a home unit can be a more affordable way to get on the property ladder or into a suburb where house prices are out of reach for your budget. It is something I’ve always steered my adult children towards.

That’s what caught my eye in the latest research from Ray White chief economist Nerida Conisbee, who has looked at the suburbs offering the biggest price gaps between houses and apartments.

First home buyers are often priced out of prestige suburbs, but an apartment could be a cost-effective way of getting into the dream area and enjoying all its attractions.

Nerida’s analysis focused specifically on areas delivering the greatest house-apartment price differentials, with apartments in the chosen suburbs having a median under $750,000 - generally considered within first home buyer budgets.

If you buy an apartment in these suburbs, you aren’t getting compromised locations or second-tier suburbs. The top-ranking areas include some of Australia's most prestigious addresses: riverside Perth enclaves, Melbourne's inner-city havens, and Canberra's parliamentary triangle neighbourhoods where apartments provide genuine access to million-dollar lifestyles at first home buyer prices.

Australia's premier first home buyer opportunities concentrate heavily around Melbourne's inner suburbs, with six of the top ten national positions delivering apartment access to areas where houses exceed $2 million.

Leading the national rankings, Perth's exclusive Mosman Park-Peppermint Grove offers apartments at $552,000 while houses command $2.51 million – a staggering $1.96 million saving for first-time purchasers.

Melbourne's Hawthorn South claims second position nationally, with $560,000 apartments providing access to one of the city's most prestigious inner suburbs where houses average $2.48 million. That’s a saving of $1.92 million. Others in the top 10 include Armadale ($735,000 apartments, $1.9 million savings), Malvern-Glen Iris ($718,000 apartments, $1.9 million savings), and Hawthorn North ($655,000 apartments, $1.8 million savings). Each location offers world-class schools, excellent transport links, and the kind of lifestyle amenities that typically require multi-million-dollar budgets.

Canberra claims two positions in the national top ten, with Griffith apartments at $685,000 and Reid units at $617,000 both delivering savings exceeding $1.6 million. For public servants and professionals building careers in the national capital, these suburbs provide prestige addresses within walking distance of Parliament House and major government departments.

Regional Australia offers first home buyers a different opportunity set, with coastal lifestyle locations and major regional centres providing quality apartment living at prices that deliver substantial savings over house alternatives. While the absolute savings are smaller than capital city opportunities, the lifestyle and affordability benefits remain compelling.

Why regional property might (or might not) be the smart move 

There’s no doubt that regional Australia is having its moment in the sun – and it’s not just because of the weather.

The recent data from Cotality (formerly CoreLogic) show regional property markets are still outperforming the capital cities when it comes to quarterly growth.

Regional dwelling values rose 1.5 per cent over the three months to April 2025, compared to a 1 per cent lift across the combined capitals. Now, I know what you’re thinking: “Haven’t I missed the boat on regional property?” The answer is, maybe not – but you do need to go in with your eyes wide open. Because while regional markets might look like a golden opportunity, they still come saddled with a few of their own difficulties.

And you just can’t generalise about “regional property” as every region is different and have their own unique nuances.

Here’s what you need to know to help you decide if buying regional – whether as an investment or for a lifestyle change – makes sense for you.

The upsides: Why regional property is back on the radar

1. Growth still looks good 

   Some regional areas are absolutely booming. Albany in Western Australia was the top performer last quarter, with dwelling values rising 7 per cent. Geraldton followed at 4.5 per cent and Victor Harbor in South Australia wasn’t far behind at 4.2 per cent.

   And the annual growth figures? Huge. Geraldton surged by 26.9 per cent year-on-year – that’s an increase of around $107,000. Gladstone, Townsville, Mackay and Albany also notched up annual price growth above 20 per cent.

   These are big numbers, especially when some capital city markets are only just starting to pick up steam again after a shaky start to the year.

2. Yields are strong – and properties are moving fast

   While rents have started to ease a little across the regions (up 5.5 per cent over the past year compared to 2.9 per cent in the capitals), they’re still going strong in a few big areas. Albany topped the rent growth leaderboard last quarter with a 5.7 per cent lift, followed by Burnie– Somerset in Tasmania (4.4 per cent) and Taree in New South Wales (3.9 per cent).

   And sellers in places like Rockhampton, Gladstone, Mackay and Townsville aren’t even having to wait two weeks to shift their homes, with median times on market as low as 11 to 13 days.

   That tells you demand is still very healthy – especially in resource-linked and lifestyle-driven towns.

3. Affordability is still a drawcard

   This is a big one, especially for first time home buyers and investors who’ve been priced out of the big markets: Sydney, Melbourne and Brisbane.

   Lots of regional centres will give you lower entry prices, better bang for your buck and the opportunity to pick up homes with land – something increasingly rare in the inner city. It can be a good way to build equity if you choose the right spot.

The downsides: There are trade-offs

1. Not all regional markets are equal

   While places like Geraldton and Albany are flying high, others are starting to wobble. Bathurst and Nelson Bay saw small declines last quarter, and Warrnambool was the worst annual performer, down -4.2 per cent. The performance gap between the best and worst regional markets has narrowed to 7.3 per cent – half what it was this time last year. So, the days of everything booming are over. You’ll need to be selective and do your homework.

2. Selling can be tough in slow markets

   While some towns are seeing homes snapped up fast, others are stagnating. Properties in Bowral–Mittagong (NSW) spent a median of 77 days on the market, and sellers there were discounting by as much as -5.3 per cent to get their deals over the line.

   That’s the reality of regional markets – they’re smaller and more volatile. If demand dries up, it can take far, far longer to exit and cost more to do so.

3. Lifestyle isn’t always the dream

   It’s tempting to pack up and move to the coast or the bush, but major lifestyle changes don’t always pan out. You need to think through job opportunities, schooling, healthcare, community and whether it’ll still suit you five or ten years down the track.

   Regional areas can also be more exposed to downturns in single industries (like mining or tourism), which makes them riskier from a long-term investment perspective.

Is regional right for you?

If you’re priced out of the city but keen to build wealth, I reckon regional property can still be a solid option. But you need to go in with a clear understanding of all the risks, as well as a buffer in case things don’t go your way.

For investors, look for areas with strong infrastructure, diverse employment bases and tight rental markets. And always stress-test your finances - rising interest rates or a couple of vacant months can really sting your hip pocket.

For homebuyers chasing lifestyle, just make sure the area supports the life you actually want, not just the one you think you’ll enjoy on holidays.

As always, get good advice, do your research and don’t fall for FOMO. Regional might be back in vogue – but smart decisions will always be in fashion.