Latest / Early Edition with Ryan Bridge / Matt Ball: Property Investors Federation Advocacy Director on the life returning to the property market

Transcript

Matt Ball: Property Investors Federation Advocacy Director on the life returning to the property market · Early Edition with Ryan Bridge

• 0:00
  Speaker 1: Looks like investors are starting to return to the property market.
• 0:03
  Speaker 1: This is a new core Logic report out this morning.
• 0:05
  Speaker 1: It finds that in September, mortgaged multiple property owners made
• 0:09
  Speaker 1: up twenty two point six percent of all sales. That's
• 0:12
  Speaker 1: up from a record lower year ago twenty point four.
• 0:15
  Speaker 1: Core Logic says investors are the group to watch coming
• 0:18
  Speaker 1: into the new year as interest rates continue to fall.
• 0:20
  Speaker 1: Matt Balls with the Property Investors Federation. He's with us
• 0:23
  Speaker 1: this morning. Matt, Good morning, Good morning, Ryan. How are
• 0:26
  Speaker 1: you we dang good, Thank you, thanks for being with me.
• 0:29
  Speaker 1: This is still low by historical standards, but early signs.
• 0:35
  Speaker 2: Yeah, I think this is spot on. Actually, we're noticing
• 0:38
  Speaker 2: similar signs as well. Your investors who have got cash,
• 0:43
  Speaker 2: they are going to be first off the block, and
• 0:45
  Speaker 2: that's the one that I'll be watching first, and then
• 0:48
  Speaker 2: mortgage reliant investors will be on after that. I mean,
• 0:51
  Speaker 2: that's not to say people aren't out the inbound looking
• 0:54
  Speaker 2: for bargains, and you know, some of our members are
• 0:57
  Speaker 2: out there buying the rundown properties are and making good
• 1:01
  Speaker 2: money out of it. You know, you get a better
• 1:04
  Speaker 2: return once you've done up a property. You're providing a
• 1:06
  Speaker 2: nice new home to people. So that's fantastic. And our investors,
• 1:10
  Speaker 2: our members tend to be probably slightly ahead of the market.
• 1:14
  Speaker 2: I would say they had access to good advice from
• 1:17
  Speaker 2: some of our older investors.
• 1:20
  Speaker 1: Who is investing. I'm not imagining that this will be
• 1:24
  Speaker 1: our mum and dad's with one extra property going out
• 1:27
  Speaker 1: in force at the moment, it's your older investors with
• 1:30
  Speaker 1: multiple freehold properties. I would imagine.
• 1:35
  Speaker 2: What we're finding is that it's actually a mix rome. Yes,
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  Speaker 2: some of our older investors or more experienced investors are
• 1:43
  Speaker 2: cash who don't rely on mortgage are out there and
• 1:46
  Speaker 2: they're looking for bargains. But I can give you of
• 1:49
  Speaker 2: an example of a members, a single income home family
• 1:54
  Speaker 2: and who has been out there brought a couple of
• 1:56
  Speaker 2: properties in the last twelve months. These are pretty runs
• 2:01
  Speaker 2: out of properties and they've done them up and they're
• 2:03
  Speaker 2: now fantastic rentals and they're making that person's income. So
• 2:06
  Speaker 2: your argons are out there if you're prepared to put
• 2:09
  Speaker 2: in the time and do the hard work. So person,
• 2:12
  Speaker 2: I'm thinking of that all the renovations themselves.
• 2:16
  Speaker 1: In terms of the interest deductibility at eighty percent, you know,
• 2:20
  Speaker 1: the interest rates coming down, What is the bigger factor.
• 2:23
  Speaker 1: It's probably interest rates presumably rates lyiring, rather than the
• 2:27
  Speaker 1: interest deductibility. They both help.
• 2:31
  Speaker 2: Yeah, I look, they both help. I think interest deductibility
• 2:34
  Speaker 2: gives people confidence. That's not something that gives you a
• 2:38
  Speaker 2: big pile of cash. But you don't actually see any
• 2:40
  Speaker 2: money from that. It's just that the government doesn't extract
• 2:43
  Speaker 2: as much from you at the end of the year.
• 2:46
  Speaker 2: Interest rates going down, yet, that is going to be
• 2:49
  Speaker 2: a fact. But don't forget this is a lagging impact.
• 2:53
  Speaker 2: Most people aren't feeling that impact straight away. Two thirds
• 2:57
  Speaker 2: of mortgages are fixed, but due to rollo the next
• 3:00
  Speaker 2: twelve months. So it's it's over that next twelve month
• 3:04
  Speaker 2: period that you're going to start to see this impact.
• 3:08
  Speaker 2: And so I'd say you'd be looking at second half
• 3:10
  Speaker 2: of twenty twenty five or fourteen's really start to back up, right.
• 3:14
  Speaker 1: Matt, Thank you very much for that. Matt Ball the
• 3:16
  Speaker 1: Property Investors Federation talking about the Newcore Logic data out
• 3:19
  Speaker 1: this morning, saying property investors are slowly creeping back into
• 3:22
  Speaker 1: the market. I suppose everybody is really as interest rates
• 3:25
  Speaker 1: come down. For more from earlier edition with Ryan Bridge,
• 3:29
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• 3:33
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