Property investing has changed, but opportunities still exist.
In this episode of the Brisbane Property Podcast, Melinda and Scott Jennison discuss how investors are adapting to the current market and why long-term fundamentals remain so important.
They cover:
- Why investors need to look beyond tax deductions
• Opportunities in a softer Brisbane market
• The importance of location, scarcity and owner-occupier appeal
• How renovations and the right structure can improve an investment
• Their latest Brisbane purchase and short-term accommodation strategy
They also share why they’re continuing to invest despite changing market conditions.
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Transcript
0:00: The rules may have changed, but serious investors have not stopped thinking.
0:03: The question is no longer what tax deduction can I get by buying this asset.
0:09: Instead, it is, does this asset still deserve a place in my long-term wealth creation strategy.
0:16: We’re gonna tackle this today and more in the Brisbane Property Podcast.
0:20: Hi everyone, and welcome back to another episode of the Brisbane Property Podcast with Scott and Melinda Jannison.
0:26: And today we’re gonna talk a little bit about how things have changed, but how serious investors are still thinking about property.
0:34: It is an interesting topic, and we’re going to talk about what we’re actually seeing and experiencing on the ground here in Brisbane.
0:41: Now, obviously there’s been a huge shift since the budget was handed down back in May, and a lot of property investors have been sitting on the sidelines.
0:53: Some may never actually come back into.
0:55: Market as property investors, but others, they’re starting to change the way they think, they’re starting to have different conversations, and now that they’ve actually sought advice, they’re actually starting to creep back into the buying market.
1:12: They can see that there are some good buying opportunities that exist, and perhaps if they’re running their own business, they’re professional investors, they’re, they’re not necessarily pay as you go income.
1:25: Earners or employees, they’re using structures in a way that helps them to continue to build wealth in property, without the significant impact that has been brought upon many people because of the budget changes to tax.
1:42: Yeah, I think that’s a really important thing about the, the tax side of it, we will touch on that.
1:47: Little bit more as we go through, but, you know, look, there, there is the old saying, and I know we hear it so many times, that be, be greedy when others are fearful and fearful when others are greedy.
1:57: We’re not, look, and, and we’re not saying this to, for people just to go and buy anything.
2:02: This is going to suit some people and it’s not going.
2:04: To suit some others, as you talked about, you know, professional people, own your own business, and if you set things up the right way, there, there’s opportunity at the moment, to buy into a market where you’ve got less competition.
2:19: That’s we’re not talking about bargains.
2:20: Again, we’ll probably touch on that as we get going as well, but.
2:23: There, there are opportunities there, and there are investors out there, like us, who are looking at property and still buying property in the current market.
2:32: And we’re gonna touch on our personal journey, because Scott and I personally have added another asset into our portfolio.
2:38: Right now, we, we settled only a few weeks ago, and the reason that we’ve done that is because we’ve always looked for opportunity when the market retreats slightly, which is times like now, because it provides us with confidence.
2:52: Confidence that, we’re going to be able to negotiate a little bit more aggressively, but also, we’re not looking to buy property for what might happen to that asset in a few months’ time, or next year.
3:07: We’re actually looking to buy property for what that opportunity might present to us, or what that might deliver for us over the long-term.
3:16: And when we’re talking property, we’re talking at least 10 years.
3:20: We’re certainly not talking short-term.
3:22: So looking at Brisbane’s fundamentals, that’s why we’ve decided personally that the time to strike was now, when there is an opportunity to buy quality assets with less competition, typically that means that you can secure good assets, for a better price than what you otherwise might have to pay when the competition depth is, is extreme.
3:43: I, I think when you look at the investment as well, it needs to stand on its own feet.
3:47: Absolutely.
3:47: So, you know, we’re, we’re not, if you took the tax deduction out of it.
3:52: Why own property at all?
3:53: I, I guess that’s a question we do ask.
3:57: one thing we do look at, as you mentioned, good location, long-term assets, to perform over a long period of time, not for a tax deduction.
4:06: And a lot of professional investors and, property investors perhaps that are looking to get back into the market right now, they’re considering how can we actually look at income.
4:17: How can we potentially generate more income from our asset, and what can we explore in order to ensure those holding costs don’t become prohibitive.
4:28: Now, when we talk about holding costs, of course, for any investor, we’re considering the cost to leverage.
4:35: It’s not often, that you would see someone as a property investor purchasing assets without leverage, and when we’re talking about leverage, we’re talking about, Debt.
4:44: Now, of course, interest rates will impact on the cost of that debt, or the amount we have to pay to borrow that money.
4:53: Again, depending on the entity and the structure that you’re purchasing within, there’s a lot of people that perhaps have higher deposit amounts, so they’re leveraging at, a lower loan to value ratio, so it can make sense to hold assets at a lower, I guess, cost, and, and potentially still manage that cash flow effectively.
5:16: Now, of course, every single person’s circumstances is going to be quite different and quite unique, and it’s really important that you’re working with a professional team, if this is something that you’re wanting to explore.
5:29: So, perhaps you’re running your own business, perhaps there’s retained earnings in that business, and, and you’re pulling them through to different structures and entities.
5:38: Talk to your accountant about how you can use different entities right now to continue to perhaps build a portfolio, how you can structure those.
5:47: Because when you’re working with a team that provides some quality advice, you’ll realize that property investing is not dead.
5:55: It’s just changed, and you need to, therefore, understand how you need to pivot, how you need to change your mindset, and also how you need to change your thinking around property investment.
6:06: And of course that’s when a professional team can also assist you to ensure that you’re targeting the right types of assets.
6:12: I, I’ll throw a quick question across, Melinda, which some of our audience might be thinking about or considering and, and I’m, I’m a professional that has my own business, for example, I might have an accountant, I might have a financial planner, things like that.
6:29: is it the time that I come and talk to someone like yourself at Streamline Property Buyers and say, hey, You know, I, I do want to do this.
6:36: When is the time and what is the right time to be able to do that?
6:39: Is it, is it that they come and have a chat with us and and get some advice from you?
6:43: Obviously not financial advice, but, ask the questions, get to know what they need to know and, and ask those questions so that when they go to their accountant or their financial planner, They understand what they’re talking about a little bit more from a property point of view.
6:56: Is that, is that the sort of right timing?
6:58: We often get asked the question, who’s the first point of contact, who should you talk to first?
7:03: Now, if you’re going to a buyer’s agent or a qualified property investment advisor first, Most importantly, you need to understand that they’re staying in their lane, they’re actually only giving you advice around property itself.
7:16: If you’re seeking advice from a tax perspective, you must be speaking to your accountant.
7:21: A financial planner is also sometimes a, an important piece within that puzzle, because they’re going to help you to understand what investing in, other asset classes might look like, as a comparison.
7:35: Against investing in property.
7:37: And of course, you know, you need to include within that conversation, your mortgage broker or your finance strategist, so that they also can advise you in terms of the cost of borrowing, and how you can leverage within certain structures to, to achieve the outcomes that you’re looking to to achieve.
7:54: So, I would say, if you don’t already have your personal team reaching out to, a buyer’s agent, streamline property buyers certainly will ensure that we build that team around you, so that you can start those important conversations to get the advice you need in order to seek the input from the buyer’s agent around the property themselves.
8:14: So, a qualified property investment advisor will usually point you in the right direction.
8:19: If they’re starting to talk about tax advice or financial advice, then perhaps you need To close the door on that conversation and open up a new conversation with the team that’ll ensure you get the professional advice from the appropriately qualified individual.
8:33: Yeah, and working as a team.
8:35: So everyone’s on the same page, everyone’s working together.
8:38: You don’t just wanna say I wanna go and buy a house in this location without any sort of, strategy to it.
8:44: there has to be strategy behind it, and that’s the science obviously behind the, the property investing side of things.
8:51: when we’re looking location wise, and as I just touched on there, we, you know, the land, the location, the scarcity, obviously those things are really, really important, especially in this current market, making sure we are buying in the right locations, where there is scarcity.
9:05: the other thing is potential uplift, you know, through renovations, manufacturing, some equity, A lot of people at the moment are very, very scared about construction.
9:15: I think you hear construction costs going crazy and we talk about it on the podcast a little bit, but if you avoid things like structural things and you go more cosmetic, non-structural items, so a lick of paint, change some toilets, tidy up the bathrooms, things like that, those types of things are things you can add a bit of value to a property.
9:36: and it’ll obviously lift the value up on it, by investing in a little bit.
9:39: Yeah, and I was just gonna say it’s not just adding value, but it’s improving that rentability, which ultimately improves the income that you will generate by holding that particular asset.
9:50: So, regardless of when you’re buying, it’s absolutely important to understand the fundamentals of the asset that you’re buying into, because what I can say with Absolute certainty is that the tax concessions and changes to tax policy don’t influence the fundamentals for why people buy homes in certain areas, and, why people need to buy shelter.
10:11: And I think that any asset class outside of property, where purely people are purchasing for an investment return, it works in a slightly different way.
10:20: We’ve got to always Remember that property primarily provides shelter, and around 65% of people that own residential property here in Australia are actually owner-occupier home buyers, not property investors.
10:35: So that’s something that I want to plant the seed for, because we need to keep that in mind when we’re determining what type of asset do we want to buy.
10:43: So land location and scarcity do actually appeal to those emotional buyers, those owner-occupiers, and that’s what ultimately will drive value if you’ve got those owner-occupiers competing for those properties long-term.
10:57: But you cannot underestimate the ability to manufacture additional equity, or manufacture the ability to generate.
11:04: Additional income through property.
11:06: You cannot do that through other asset classes.
11:09: And again, this comes down to that change of thinking that we talked about when we’re talking to those investors that are continuing to explore property as an asset class.
11:20: If you change your thinking in terms of different ways to generate additional income from an asset that, Is a quality asset that has those strong long-term fundamentals, then all of a sudden the game changes.
11:32: Now, I will say if we just reverse back to, you know, the pre-budget times, negative gearing ultimately was a situation where an investor was losing money to generate a tax return, or a tax, credit.
11:51: Now, nobody.
11:52: Fundamentally, you should be investing to lose money just for a tax credit.
11:58: So, the conversation has very much turned to, you know, investors are out because they can no longer negatively gear property.
12:05: If you can find properties that have the capacity to generate higher incomes, and, and through different structures, and, and changing those loan to value ratios, depending on how you’re buying and within what entities you’re buying.
12:19: Then property still might make sense for you, if you have the capacity to invest in that, that particular way.
12:27: Yep.
12:27: The, the one thing I’ll touch on very quickly on the, manufacturing, the equity side of things, and we do this again, with our, with our clients here at Streamline, myself being a licensed builder, it’s, it’s not hard, I find it not hard.
12:42: I’ve done it all my life, up until we started this business, obviously, but, to actually go into a property and to do those things, to make those improvements, it’s something we help our clients with.
12:52: we can help organize it, we can get the trades in to do the work, and it’s something that we have the vision for as well.
12:58: So we can see those things and say that would actually help, that would add value, that would increase your rent, those types of things.
13:04: it is something you can add value to it.
13:07: obviously the location we can’t change, but we can change the property.
13:11: absolutely.
13:12: If we just talk about the professional advice that you should be seeking, obviously we’re not looking for tax workarounds here, we’re actually looking for, different ownership structures that investors can explore, to ensure that they’re investing in the most tax effective way.
13:30: So, there’s no structure that should be used as a workaround, so to speak.
13:35: The structure must make sense for you long-term, and that’s why getting advice very early before you’re exploring or looking at properties themselves, that, that becomes the important piece of the puzzle.
13:46: With the acquisition that Scott and I just made recently, the first discussion that we had was with our accountant.
13:52: Off the back of the budget, we sat down, we reviewed our portfolio.
13:57: various structures that we held, and we, we were advised, the, we were provided with advice to ensure that the structure was appropriate for our particular circumstances.
14:10: And that is the most important piece of information to take away.
14:15: One structure that might be appropriate for, for one individual might not be the right structure that’s appropriate for you.
14:21: So, getting advice.
14:22: from your accountant who understands your personal setup is the most important step, then our role as property investment advisors is to help to identify, assess, acquire and negotiate the property itself, to ensure that it aligns with the goals that you’re trying to achieve.
14:40: And so that professional team becomes really important.
14:42: Yeah, I think that getting that done at the start, that is, as you said, that’s the first thing you have to do.
14:49: If if you go down the path of looking to property and purchasing property, it’s too late.
14:53: So the first thing you need to do before you get started at all is is to understand that structure and how things are going to work.
14:59: So we just wanna very briefly touch on the reason why we personally are still buying, because a lot of the headlines are scary, and a lot of the headlines are saying it’s a terrible time to buy, you, you know, the, the prices are plummeting, you know, there’s, there’s, there’s all of these reasons that we’re being told in the media as to why now’s not a good time to buy.
15:21: However, We own a number of assets, we, we understand the Brisbane market, where we understand the fundamentals, and we’re taking a long-term view of what’s likely to happen 10 or 15 years from now, not what’s likely to happen, Tomorrow.
15:35: We also take the view that any properties that are becoming available for sale today, are not gonna be the same properties necessarily that are going to be available for sale 12 months from now.
15:45: So if we find an asset that aligns with the type of asset in the location that we’re wanting to purchase into, the time to strike is when that becomes available, not when sentiment improves.
15:56: And that is the philosophy that we have followed.
16:00: The value, Is changing your thinking more so than changing the asset that you, you’re selecting.
16:08: The asset remains the same, it’s changing your thinking around how can we generate more income from this asset.
16:15: Now, we’re gonna share with you something that we’re doing personally, and 12 months from now, we’ll actually circle back to say, hey, this was a terrible idea, or this was a great idea.
16:24: We, have purchased a blue chip asset 4 kilometers from The Brisbane CBD and we are, it’s an existing dwelling, and we’re currently adding more value to that property through a cosmetic renovation.
16:40: So, some of the things that we’re doing cosmetically, obviously one of the things that value, a repaint.
16:47: OK, so if you look at it, 3 bedroom property, and we’ve, we’ve given it a full internal repaint.
16:54: externally we’ve done a few little bits and pieces like some artificial grass, very low maintenance, landscaping externally.
17:03: so full repaint, new carpet throughout, a few new appliances in the kitchen just to, just to pretty things up, some new splashbacks in the kitchen, just tidied up the air conditioning, it just needed to service, replaced a couple of toilets, a shower screen.
17:17: Grout, silicon, things like that just to make it pop a little bit more and new window coverings.
17:24: I think I’ve pretty much covered most things there.
17:26: That’s right.
17:26: So just, just look, as I said earlier, it’s not structural, it’s all cosmetic.
17:30: It just pretties it all up, it makes it look really nice, presentable, low maintenance, and looks really really really nice when it’s all finished.
17:38: Now this was.
17:38: An opportunity that we acquired off-market, so there was no competition, and it was, we were very lucky to be in that position to have exclusive access.
17:47: we, we purchased well, but, it, there was an opportunity to buy, before it was listed for sale, because of the way it was presented and the way that the previous owners were living in the property.
17:59: So, we, took advantage of that, and we, we moved quickly to, I guess, Slow down, or, or, or stop that marketing campaign.
18:10: It’s what we do as buyers’s agents, it’s where people see a lot of value by aligning, or, or, partnering with a team like us.
18:18: Now, our goal with this property is actually to provide short-term accommodation to people.
18:26: We’re 3 minutes walking distance, from one of the local inner-city train stations.
18:33: The benefit is that the property itself, Can sleep, up to 10, because there’s also a loft that has additional, sleeping arrangements, walking distance to many of the employment hubs, especially employment hubs that a lot of people can travel to Brisbane to be a part of.
18:55: However, it is in a low density residential area.
19:00: There is no potential for For future high density development nearby.
19:04: So we’ve purchased in what we would call a landlocked or a landbanked location.
19:10: There’s no competing supply of a similar product that’s likely to come to the market under the current city planning scheme, and that’s why we like this type of asset, the scarcity value.
19:20: I, I was gonna say, sorry, I didn’t add on as a part of this, project, if you want to call it that, that we’re doing.
19:27: apart from the renovations and, and the tidy up or refurb, if you’d like to call it that, I don’t call it a large renovation, we are also completely fitting it out with furniture.
19:37: so it’s getting, we’ve got, we’ve organized all of this, again, this is something we can do ourselves.
19:43: We organize it, we organize all the furniture, the, The knives, the forks, the, you name it, everything to be able to move in and live in there, as people would just come in a short-term, rental side of things, and we’ve organized all of that so that it’s ready to present to the market.
19:56: And what we want to be able to do for you as our audience, is share some of the things that we’re going to measure.
20:04: Now, we would never recommend this as a strategy for strategy for our clients unless we’ve got, Our own confidence based on our own money being in this market, which is why we’re trying to test it before we recommend it.
20:17: And that’s just part of our brand promise.
20:19: We’re never going to be those people that would recommend something unless we genuinely know that it works.
20:26: So, we’re gonna measure it properly, and we’re gonna compare it with the Long-term rental alternative.
20:31: Now, if you’re listening to this podcast and you’re a tenant, you might be thinking right now, oh, you know, just provide accommodation for long-term tenants.
20:39: Can I just say that short-term accommodation also has its place.
20:43: There’s a lot of people that have to relocate from their homes because of insurance claims, where their homes become, unlivable.
20:51: There’s a lot of people that visit for short periods of time to the city, but they don’t want to be in holiday.
20:57: accommodation or in inner city hotel accommodation, so there is a need and a place for every type of accommodation in, in a city market, and I think that that’s a really important point to make.
21:10: And at the end of the day, Yes, there’s definitely owner occupiers that need a home.
21:14: A lot of people right now are relying on short-term accommodation, because they need to sell before they buy, and they relocate temporarily into accommodation like this to enable that process to unfold.
21:27: So, there’s reasons why various forms of accommodation do exist in a market, and, as long as there’s not a saturation of any particular type, there’s, there’s opportunity that, that people can capitalize on, but also opportunity to provide shelter, which is why a lot of people do what we do.
21:46: So, we’re gonna be measuring things like gross revenue, occupancy, seasonality, management fees, cleaning and turnover, the cost of utility fees, insurance.
21:56: maintenance, wear and tear, obviously furnishing costs, the net yield, which I think is a really important number, and any admin burden that we’re actually going to, you know, take on.
22:08: Now, admittedly, we’re not managing this ourselves.
22:11: We’ve engaged a company to manage this for us.
22:14: So that’s obviously going to increase our management costs, but at the end of the day, it’s an experiment that we’re undertaking, and we will report back on, The findings, even if it is a failure, of course, if it’s a failure, we’ll actually be able to place the property onto the long-term rental market, knowing that we have the confidence in the recommendation to our clients that long-term, renting is the, the safer way to do it.
22:38: But for those, perhaps if the numbers are, are, more favorable, those that are wanting to take on that additional risk, and it is an additional risk to, to go into short-term accommodation, it’s something that perhaps others can explore if.
22:51: We’ve got the numbers to back that, Yeah, and once we’ve got it all set up and and running and if it is successful, obviously that’s something we can help people with to to get that type of thing going.
23:02: We’ll also track obviously different as Melinda mentioned a little bit there, seasons.
23:07: So how things go through different seasons.
23:10: As I’ve mentioned all the time in in the podcast, Brisbane’s beautiful in winter anyway, so, you know, it’s attractive for people to come to some warmer weather in Brisbane, so southern people will still, want, want to move up to Brisbane and northern areas to get a little bit more warmth in those winter periods, at different times through the season, so there’s different events that happen in, in Brisbane, so there’s the magic Round for rugby league, for example, there’s all these different.
23:34: Types of things.
23:35: We’re also, you know, we’re 6 years away, 6 years, yeah, 6 years away from, from Olympic Games.
23:41: So again, there’s potential for that type of thing.
23:43: If it works and it works in a short-term period, then long-term period we could benefit from something like that long-term wise when the Olympic Games come along and every other event that comes along to the new stadiums and everything that’s happening in Brisbane as we go.
23:59: Another reason we’re doing something like this and and I guess if you come back to why we’re still investing in Brisbane is, and Melinda touched on it a little bit, is that we know what’s happening in Brisbane.
24:11: So we know the big companies that are spending money in Brisbane as well.
24:15: So there’s, there’s companies that are doing large, huge developments.
24:19: There’s, there’s new areas getting Racecourse Road getting redeveloped, there’s in through gasworks and through the, the the valley area.
24:27: There’s, there’s so much money getting put into Brisbane on from major.
24:31: Companies that they’ve got confidence that Brisbane is going to develop and continue to grow.
24:36: So, that gives us more confidence knowing that the big players are playing in Brisbane as well, and that gives us more confidence to obviously be involved more and more in the market.
24:45: It is interesting, and it’s a really valid point that you raise there.
24:49: Right now, there’s a lot of big corporates.
24:52: That are spending a lot of money purchasing property in Brisbane, developing property in Brisbane, believing in the future of Brisbane.
25:01: The decisions that these companies are making happen in the boardroom, not at the kitchen table.
25:07: It’s the mum and dads that are nervous, that are sitting on the sidelines, that are hesitant.
25:12: And you’ve got to understand, corporates base their decisions on fundamentals and data.
25:18: A lot of the mum and dads base their decisions on sentiment, and it’s a sentiment issue that we have right now.
25:25: It’s not an issue of fundamentals.
25:27: And yes, I’m not denying the fact that there will be affordability constraints in some segments of the market moving forward, especially if we see another rate increase.
25:37: That’s absolutely, you know, not something that we’re denying.
25:41: However, when we’re looking at a median income level, And the top part of that bell curve, there’s a lot of people with strong incomes, you know, we were at auctions just, last weekend, a $17 million home in, in Sutherland Avenue at Ascot sold unconditionally.
26:00: At auction, there’s people with money in Brisbane, and not everyone falls at a median value level, so, we follow the, locations where the people with the depth of income continue to buy, continue to rent, and this is how you can actually avoid that affordability trap that is being talked about a lot in the media, and it’s a reason why understanding where you’re buying, and what you’re buying can make such a big, Difference, I mean, sorry, I was gonna say, we, we talk about, it’s, it’s probably rare for Melinda and I to talk about our assets, and we’ve, we’ve had to get over that a little bit, which is why we want to talk about this.
26:41: I think when the other thing I always think about is, or not always think about, but, but I look at, Some people when they’re looking at property and and everyone’s the same, look I, I’ll put my hand up and say we’re we’re exactly the same.
26:52: When you’re looking to buy a property, one of the things that people think is, am I paying too much money?
26:57: Have I overpaid for it?
26:58: Is it, you know, and everyone thinks the same thing because buyers wanna buy it cheap, sellers wanna sell it.
27:05: More expensive, and there’s always that difference there, but I always come back to the long-term hold of a property.
27:12: And if you’re in the right location and you’re buying the right asset, it will generate that that growth for you over a long period of time, providing you with buying right.
27:22: I’ll throw in another one of our assets and just I’ve picked another one out.
27:25: We, we bought a unit, wow, 34 years ago, trying to think now.
27:31: at the time, units, two bedroom unit in a, inner north, probably about 33 odd kms from the city.
27:38: we were trying to get it for about $500,000.
27:41: I wish I could, if I had, and again, if I go back now, I wish I’d bought about 10 of them.
27:46: and I know at the time when we were bouncing backwards and forwards between Melinda and I and the agent, this one was off market as well, the agent come back and we offered, I think, 500 or something, and the agent said, look, they’re not gonna sell it, they’ll sell it for 550.
27:59: We went back with a little bit more, and he said, look, they’ll sell it for 550, but that’s it.
28:04: I know that you were reluctant, and, and I went, look, let’s just, just, just buy it, it’s, we know that it’s worth it.
28:11: Now I look back and go, wow, it’s probably 800-900-ish, more, it’s, it’s worth so much more money, but, People do think that when they buy property, so you, you have to get into your mind, you don’t wanna overpay, yeah, we know that, and you have to see value in it, but it’s also got to understand that it’s a long-term play when you’re looking in investing in a property.
28:31: That’s right.
28:31: Buying the right asset in the right location for the right reasons is what becomes more important than what you ultimately pay because if it’s got the right fundamentals, it will grow over time because it will be a high Demand asset.
28:48: Now, that’s a, a classic example of, you know, what goes on between husband and wife when, when you’re making a big financial decision.
28:56: There’ll be someone that will be more of a handbrake, and, and someone that’s a little bit more bullish, and we see that all of the time in our clients as well.
29:02: Ultimately, there’s not been a property that we’ve acquired in, in our time together over the last, Gosh, I’m starting to give away, 30, 34, 35 years since we’ve started to, to purchase property together.
29:17: There’s not been a single one that we’ve regretted when we look back 10 years from, when it was purchased, and, you know, the only ones that you regret are the ones perhaps that you sell along the way.
29:30: And I think that’s a great takeaway, for many people, because transaction costs, can be quite hefty, and if you’re not actually taking something out, to immediately upgrade or put something back in, there can be an opportunity cost of being out of the.
29:46: Market.
29:46: Now, of course, market conditions right now are less favorable, because we are in a market that, you know, median values are declining.
29:56: That said, for quality assets, there’s still a depth of buyers, and we’re seeing that ourselves out and about on the ground.
30:02: Some properties, no bidders, no buyers.
30:04: Other properties, still a depth of buyers, still strong, prices being paid, so.
30:10: I think, you know, in summary, the rules around property investing have absolutely changed.
30:14: There’s no doubt whatsoever about that, but serious investors, they’ve not stopped thinking.
30:20: They’ve not stopped thinking about what does this mean for me, and if I do want to continue investing, What are the questions I now need to ask?
30:29: And unfortunately, a lot of people just don’t know the questions that they need to ask, but as a professional team, we can help you to understand the questions that you need to answer, and you usually get those answers by aligning with a professional team of advisors that can direct you and provide the advice that is specific for you.
30:47: It’s not a one size fits all approach, even more so now than ever before.
30:52: People must get tailored advice.
30:54: And I will say also that not every property in Brisbane, not every location in Brisbane is doing the same thing in today’s market, and that’s another reason why, if you are in the market to buy, if you do decide that it is still a good time.
31:09: To invest and you are preparing your finances to move, back into the market, don’t assume, what we’ve seen in the past 5 or 6 years here in Brisbane will continue, because it absolutely will not.
31:22: The rising tide will no longer lift all ships, and you need to understand which areas are likely to continue long-term, to grow in value, more so than others.
31:33: There’s a reason behind that, and it’s absolutely essential that you understand that.
31:37: They had a TV show years ago called Location, Location, Location, and it’s still, I still swear by it.
31:43: it’s a massive part of your investment.
31:46: I, I think one thing I do want to throw into people as well before we do wrap things up is as we said earlier on, take the tax deduction out of it.
31:54: And and is this does it deserve a place in my long-term wealth strategy?
31:59: That’s a really big thing for people to understand if take the tax away from it because it’s that’s gone, that’s that part of it’s done now.
32:06: The budget’s done, the government’s set it in, you’ve got to, you don’t invest for those tax reasons.
32:11: OK, invest for the long-term reasons of investing in a property to create that wealth side of things.
32:16: That’s right.
32:17: Hopefully that’s given you some insights into what some of those professional investors are doing, what we personally have been doing, and if that resonates with you and you’re wanting to explore how property continues to have a place in your portfolio, please reach out.
32:35: To our team.
32:35: If you don’t yet have a team of professional advisors around you, we can introduce you to those that can give you the advice that you may be seeking before you make a decision as to which property or, or whether property investing full stop is going to be right for you in the current environment.
32:50: Excellent.
32:51: That’s a wrap.
32:52: hopefully it’s been good information.
32:53: We’ll keep you posted on our little, project, if I wanna call it that, or investment lab, whatever, whatever it may be.
32:59: We’ll keep you posted on how things are going there, and we’ll keep you updated on the market and everything.
33:03: What’s happening here in beautiful Brissie.
33:06: as usual, I’ll let Melinda wrap things up.
33:08: Until next time, take, take care.
33:10: Thanks very much.
33:11: Bye for now.
33:11: Yes, thanks once again for joining us on today’s episode of the Brisbane Property Podcast.
33:16: As always, if you have enjoyed this content, please share with friends and family.
33:19: We would love for you to leave us a review.
33:22: We would also love for you to subscribe if you are watching this on YouTube.
33:27: Until next time, we hope you have a good couple of weeks, and we will be in touch again soon.
33:31: Bye for now.
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