Latest / The SME Stream / 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 · The SME Stream

• 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 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 noturicing
• 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've been 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 there bound looking
• 0:54
  Speaker 2: for bargains, and some of our members are out there
• 0:57
  Speaker 2: buying the rundown properties and making good money out of it.
• 1:03
  Speaker 2: You know, you get a better return once you've done
• 1:05
  Speaker 2: up a property. You're providing a nice new home to people.
• 1:07
  Speaker 2: So that's fantastic, and our investors, our members tend to
• 1:11
  Speaker 2: be probably slightly ahead of the market. I would say
• 1:14
  Speaker 2: they had access to good advice from some of our
• 1:19
  Speaker 2: 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
• 1:31
  Speaker 1: multiple freehold properties. I would imagine what.
• 1:35
  Speaker 2: We're finding is that it's actually a mix rome. Yes,
• 1:40
  Speaker 2: some of our older investors or more experienced investors who
• 1:42
  Speaker 2: are cash who don't rely on mortgages are out there
• 1:46
  Speaker 2: and they're looking for bargains. But I can give you
• 1:49
  Speaker 2: of an example of a member who's a single income
• 1:52
  Speaker 2: home family and who has been out there bought a
• 1:56
  Speaker 2: couple of properties in the last twelve months. These are
• 2:00
  Speaker 2: pretty run down properties and they've done them up and
• 2:02
  Speaker 2: they're now fantastic rentals and they're making that person some income.
• 2:06
  Speaker 2: So your bargains are out there if you're prepared to
• 2:09
  Speaker 2: put 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 lying rather than the
• 2:27
  Speaker 1: interest deductibility. They both help.
• 2:31
  Speaker 2: Yeah, I look, they both help. I think the interest
• 2:33
  Speaker 2: deductibility gives people confidence. That's not something that gives you
• 2:38
  Speaker 2: a big pile of cash. 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 roll up the
• 3:00
  Speaker 2: next twelve months. So 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 pack up.
• 3:14
  Speaker 1: Matt, Thank you very much for that. Matt Ball the
• 3:16
  Speaker 1: Property Investors Federation talking about the new core Logic data
• 3:19
  Speaker 1: out this morning, saying property investors are slowly creeping back
• 3:22
  Speaker 1: into the market. I suppose everybody is really as interest
• 3:25
  Speaker 1: rates come down,