WEBVTT - The Olympic-sized property opportunity 0:00:10.440 --> 0:00:13.680 Hello, and welcome to The Australian's Money Puzzle podcast. I'm 0:00:13.760 --> 0:00:18.439 James Kirby. Welcome aboard, everybody. Welcome aboard to an increasingly 0:00:18.520 --> 0:00:23.200 lively and lucrative I think residential property investment market. And 0:00:23.239 --> 0:00:26.560 we've been saying this for some time that it was improving, 0:00:26.600 --> 0:00:29.320 it was coming and here we go. Lots of reports 0:00:29.360 --> 0:00:32.400 now you'll see talking about not just the fairly good 0:00:32.400 --> 0:00:35.880 returns in recent times, but strong prospects across the board. 0:00:36.520 --> 0:00:39.040 Now when you look at it more closely, it's the 0:00:39.120 --> 0:00:44.240 strongest prospects are actually outside the metropolitan cities of Sydney 0:00:44.280 --> 0:00:49.360 and Melbourne, and it is coming down again perhaps to Perth, 0:00:50.200 --> 0:00:54.960 Adelaide and Brisbane. However, folks, the big market, the market 0:00:54.960 --> 0:00:58.320 that's really got the volume and probably the outlook long 0:00:58.440 --> 0:01:01.200 term I think, and it's come up on the show 0:01:01.240 --> 0:01:06.520 regularly is Queensland, specifically Brisbane and the Gold Coast where 0:01:06.560 --> 0:01:09.480 we have a lot of action happening. And if you 0:01:09.560 --> 0:01:13.520 listened last week's show and Missa Cavello talking about how 0:01:13.640 --> 0:01:16.640 investors are now increasingly willing and it's increasingly easy to 0:01:16.720 --> 0:01:20.920 invest interstate. My guest today is an expert on the 0:01:21.040 --> 0:01:25.600 Queensland market, specifically Brisbane. He's based in Brisbane. I know 0:01:25.680 --> 0:01:28.839 him a long time. It's Sam Price of a Templeton. 0:01:28.880 --> 0:01:31.760 He's a buyer's advocate in the city. Well, you're doing 0:01:31.800 --> 0:01:34.039 your own thing for about fifteen years now, aren't you, Sam? 0:01:34.240 --> 0:01:36.600 I have Jan Yes, yep, doing my own thing. Had 0:01:36.640 --> 0:01:38.960 the property management for long time as well, and Tim 0:01:39.040 --> 0:01:42.480 planning before that, but just now it's purely buyas agency 0:01:42.560 --> 0:01:46.360 in buying throughout Southeast Queensland for mums and dad investors 0:01:46.360 --> 0:01:48.200 as well as a rocketpaths as well. 0:01:48.520 --> 0:01:50.680 The reason I mentioned that you're doing at fifteen years 0:01:50.720 --> 0:01:53.440 is that I want investors to know first of all, 0:01:53.440 --> 0:01:58.560 before we talk about the specific attractions of Queensland and 0:01:58.600 --> 0:02:01.440 certain issues that are happening there. Should find very interesting folks. 0:02:01.640 --> 0:02:04.080 You do need to know that hasn't always been so good, 0:02:04.800 --> 0:02:09.480 and there was a patch where Brisbane really had it 0:02:09.520 --> 0:02:13.600 hard as a property investment market due to floods that 0:02:13.680 --> 0:02:16.839 were quite devastating and spectacular really if you were ever 0:02:16.880 --> 0:02:21.519 in the city after those floods, and similarly another issue 0:02:21.520 --> 0:02:25.760 was overbuilding. So just cut to the chase. In terms 0:02:25.800 --> 0:02:28.079 of Queensland as a distinct market. To me, these are 0:02:28.120 --> 0:02:32.160 the distinct risks. There are those risks still in place. 0:02:32.440 --> 0:02:33.440 Has anything changed? 0:02:34.560 --> 0:02:36.760 The flooding is definitely still in place. So as we know, 0:02:36.840 --> 0:02:39.360 we had the big floods in twenty eleven in Brisbane, 0:02:39.360 --> 0:02:42.760 then another one only ten years later in twenty twenty two. Yeah, 0:02:42.760 --> 0:02:46.080 they were devastating in Brisbane. I think having two in 0:02:46.480 --> 0:02:50.880 close succession really taught us a big lesson. And although 0:02:50.919 --> 0:02:53.160 we can't change the flooding and the weather, of course, 0:02:53.400 --> 0:02:56.280 what we can do is build to accommodate the flooding. 0:02:56.880 --> 0:02:58.880 And so since that time, all the buildings that have 0:02:58.919 --> 0:03:01.919 been done that a flood affected, they've kind of taken 0:03:01.919 --> 0:03:05.000 that into account. So I think we've learned to live 0:03:05.040 --> 0:03:08.560 with it now, James. So their values have jumped back 0:03:08.919 --> 0:03:11.240 and people are not as concerned about it these days 0:03:11.280 --> 0:03:15.000 as they were. However, Brismoo City Council has been excellent 0:03:15.040 --> 0:03:18.720 in providing information to buyers. They have a like a 0:03:18.760 --> 0:03:21.680 flood report on every property within Brisbane City Council. They 0:03:21.720 --> 0:03:24.320 have a flood map as well, so when you're buying, 0:03:24.360 --> 0:03:26.200 always look at the flood map first of all, then 0:03:26.240 --> 0:03:28.240 look at the flood report and it will tell you 0:03:28.280 --> 0:03:31.920 how the different floods and how many meters of centimeters 0:03:31.960 --> 0:03:34.560 of water when over the property if it wasn't affected 0:03:34.560 --> 0:03:37.240 at all. So that's a staple check that you do 0:03:37.280 --> 0:03:38.040 forever property. 0:03:38.440 --> 0:03:41.120 Would you say that is a distinct feature of the 0:03:41.160 --> 0:03:44.400 Brisbane market as opposed to see Melbourne. 0:03:45.040 --> 0:03:47.800 I'm not sure about the flood search in Melbourne, but 0:03:47.840 --> 0:03:50.200 I know for Morton and Ipswich the Brismoo City Council 0:03:50.240 --> 0:03:53.600 flood mapping is excellent. It is quite conservative at the moment, 0:03:53.640 --> 0:03:55.960 like there's a lot of properties that are within the 0:03:56.040 --> 0:03:58.240 realms of being flood affected that I don't think ever 0:03:58.320 --> 0:04:01.640 will be, so there is quite a buffer on it. Yeah, 0:04:01.680 --> 0:04:04.360 but then we're only talking about if twenty percent of 0:04:04.400 --> 0:04:06.840 the not even twenty percent probably z it might be 0:04:06.880 --> 0:04:07.920 like ten percent of Brisbane. 0:04:07.960 --> 0:04:10.320 So it is a small it is, but it tends 0:04:10.400 --> 0:04:14.240 to be very attractive inner city zones by the river 0:04:14.280 --> 0:04:17.000 and where all the apartment blocks are too. It's worth 0:04:17.040 --> 0:04:21.360 listeners knowing. I can remember looking at a property in 0:04:21.400 --> 0:04:25.440 Brisbane in the Interpilly area after the floods, first floods 0:04:25.560 --> 0:04:28.600 and a lovely place on a park and then the 0:04:29.000 --> 0:04:31.279 really state agent said I must buy low Point out 0:04:31.320 --> 0:04:35.240 where the flood reached here. He put his hand up 0:04:35.880 --> 0:04:39.760 into the air, you know, about six ft high, speechless. 0:04:39.800 --> 0:04:41.760 I'll never forget it. So I want to start the 0:04:41.760 --> 0:04:44.360 show just by putting that on the table separately, that 0:04:44.480 --> 0:04:48.480 there was an overbuilding, apartment over building. What situation at 0:04:48.520 --> 0:04:48.880 the moment. 0:04:49.839 --> 0:04:52.279 Now we're in a start of you know, under supply 0:04:52.400 --> 0:04:54.520 for sure for apartments. I think we're back to ninety 0:04:54.600 --> 0:04:57.280 ninety levels of supply coming on line. So it's all 0:04:57.279 --> 0:05:00.000 that I was supplied the ninety nineties and the two thousand, 0:05:00.000 --> 0:05:02.360 since that's been all absorbed now and given the cost 0:05:02.400 --> 0:05:04.840 of construction the last you know, since COVID has been 0:05:04.920 --> 0:05:09.119 very high and escalating, it hasn't warranted developers to press 0:05:09.160 --> 0:05:12.280 the trigger on building the quick rise. Since COVID of 0:05:12.360 --> 0:05:14.560 property values, I think they've got to a stage now 0:05:14.600 --> 0:05:18.640 where it's economic to build units. Like if replacement of 0:05:18.680 --> 0:05:20.800 a two bad, two bathroom unit is in excess of 0:05:21.000 --> 0:05:23.520 you know, one one point two mil, well, now we've 0:05:23.560 --> 0:05:25.760 reached that point where the market will be happy to 0:05:25.800 --> 0:05:28.359 pay that. And therefore there's a lot of projects in 0:05:28.400 --> 0:05:33.040 the pipeline that can now go ahead, which so currently 0:05:33.040 --> 0:05:37.479 and under supply, everything's selling very quickly. Naturally in these times, 0:05:37.520 --> 0:05:39.839 they do over react sometimes and build too many. But 0:05:40.240 --> 0:05:43.560 given it takes three to five years for these buildings 0:05:43.600 --> 0:05:45.680 to get built, we're not going to see that for 0:05:45.720 --> 0:05:48.200 some time. But there are our pockets in Brisbane where 0:05:48.960 --> 0:05:51.320 you know, you could potentially see it. And even now 0:05:51.400 --> 0:05:55.640 I'm guarded about recommending clients buying those areas for the 0:05:55.720 --> 0:05:59.800 perceived you know, over building that could happen. They could have. 0:06:00.360 --> 0:06:04.719 Yes, it could happen. So in terms of investor activity 0:06:05.200 --> 0:06:10.120 in Brisbane, is it across the old dwellings or is 0:06:10.120 --> 0:06:12.640 there still a specific action in houses? Are they still 0:06:12.760 --> 0:06:14.960 within a price range for investors to get access. 0:06:15.040 --> 0:06:16.839 Yeah, I think a lot of there's two types in 0:06:16.839 --> 0:06:18.480 the vests. One is the one that wants to buy 0:06:18.480 --> 0:06:22.640 in Brisbane okay, and then there's for their own reasons 0:06:22.680 --> 0:06:24.280 and the you know they might live in Brisbane. A 0:06:24.320 --> 0:06:26.760 lot of people tend to buy where they live. Then 0:06:26.760 --> 0:06:29.160 you've got a lot of investors that deal with properly 0:06:29.279 --> 0:06:31.640 like a commodity, and they'll buy anywhere in Australia. They 0:06:31.680 --> 0:06:34.800 won't need the property and so forth, and those people 0:06:35.120 --> 0:06:37.360 kind of hunt around. They might be looking in Tansbula, 0:06:37.440 --> 0:06:40.520 Mackay or Melbourne or Sydney or Perth and so forth. 0:06:41.040 --> 0:06:43.920 But for the ones that are buying in Brisbane, it's 0:06:44.040 --> 0:06:46.919 more difficult. If the average buyer Australia wide buying the 0:06:46.920 --> 0:06:50.560 commodity product is really it's between five and seven hundred thousand, 0:06:50.920 --> 0:06:53.760 then if you apply that to Brisbane, stock is a 0:06:53.760 --> 0:06:56.799 bit tight. So you're looking at an inner or middle 0:06:56.880 --> 0:06:59.760 ring unit for that sort of money. And if we're 0:06:59.760 --> 0:07:01.560 looking for a house, we're having a look outside of 0:07:01.600 --> 0:07:05.679 Brisboo City Council into like Ipswich or Morton in areas 0:07:05.760 --> 0:07:09.159 like that. So yeah, there is a sweet spot in 0:07:09.160 --> 0:07:13.120 Brisbane for buying investment properties. I believe James which is 0:07:13.160 --> 0:07:15.600 not a house for five to seven hundred thousand. It's 0:07:15.600 --> 0:07:19.080 more a middle ring suburb house and land. But for 0:07:19.120 --> 0:07:21.840 that now you're paying like one point two one point three. 0:07:22.680 --> 0:07:24.800 But for that it's a six hundred square meter block. 0:07:25.160 --> 0:07:28.160 It's got a postal house on it, so built after 0:07:28.240 --> 0:07:30.440 nineteen forty six, which allows you to knock it down 0:07:30.480 --> 0:07:33.360 in the future. It's eight to ten kilometers from the city. 0:07:33.400 --> 0:07:36.520 It could be north, it could be south, it could 0:07:36.520 --> 0:07:39.640 be an area like Stafford heights, Kepera Michellton on the 0:07:39.680 --> 0:07:43.960 north side, or Macravad's Holland Park SoRs it on the 0:07:44.000 --> 0:07:47.440 south and that has lent themselves to a high land 0:07:47.440 --> 0:07:50.320 component of seventy percent of the value at least is 0:07:50.360 --> 0:07:53.280 in the land, good rent for return. We can knock 0:07:53.320 --> 0:07:55.200 it down in the future and rebuild, which is starting 0:07:55.200 --> 0:07:57.320 to happen, or we can renovate it, put on a 0:07:57.360 --> 0:08:00.440 deck and so forth. So that's kind of a sweet 0:08:00.480 --> 0:08:01.880 spot for house any right. 0:08:02.920 --> 0:08:06.960 Tell me compared to when you started in interest and 0:08:07.040 --> 0:08:10.560 activity in Greater Brisbane Compared to when you started. 0:08:11.840 --> 0:08:15.000 It's definitely picked up a lot of recent times. The 0:08:15.080 --> 0:08:18.000 last few years. It's more ouner occupiers that I'm seeing 0:08:18.000 --> 0:08:20.560 at open homes. The investors are still a little bit 0:08:20.640 --> 0:08:24.640 light on. I think the ones following the online social 0:08:24.680 --> 0:08:28.280 media buyas agents are flocking to the different areas throughout Australia. 0:08:28.960 --> 0:08:31.680 So the ones I'm seeing at the opens primarily owner 0:08:31.720 --> 0:08:35.760 occupiers and then probably local investors or people buying from 0:08:35.800 --> 0:08:37.839 into state that have plans to move up here on 0:08:37.880 --> 0:08:39.640 the short term or the long term. 0:08:39.720 --> 0:08:42.400 Okay, tell me, just for our listeners who would be 0:08:42.400 --> 0:08:45.600 considered who don't live in Brisbane, but would like to 0:08:45.640 --> 0:08:49.720 consider it and knowing that the fundamentals are so good, 0:08:49.760 --> 0:08:53.960 and knowing that the city has outpeaced the other two, 0:08:54.320 --> 0:08:57.320 the other the larger cities Sydney and midd some time, 0:08:57.760 --> 0:09:00.120 and that the forecasts that have just come out this 0:09:00.160 --> 0:09:07.520 week from SQM suggested that would continue. Knowing that what 0:09:07.640 --> 0:09:10.880 are the districts? Do you think investors should start looking 0:09:10.920 --> 0:09:14.880 in this city? You'd have to give us the entire 0:09:15.040 --> 0:09:18.520 post codelistic because it would take it away. But tell 0:09:18.559 --> 0:09:20.920 me just the years where you see there's particularly you know, 0:09:21.520 --> 0:09:22.319 good prospects. 0:09:23.200 --> 0:09:25.760 Yeah, I like for it's probably two one is the 0:09:25.800 --> 0:09:29.600 investment unit market, so that's sub a million dollars. So 0:09:30.240 --> 0:09:32.520 lately there's been good ones on the five K fringe 0:09:32.559 --> 0:09:35.360 of the city. For seven hundred to tw eighte hundred thousand, 0:09:35.440 --> 0:09:38.280 that's what you're paying for a solid walk up unit 0:09:38.600 --> 0:09:41.920 that's had some work done, it's got low body corporates, 0:09:42.080 --> 0:09:44.320 it's got a good sinking fun there's no lift, there's 0:09:44.320 --> 0:09:47.200 no pearl. It's a smaller complex of six to ten, 0:09:47.320 --> 0:09:49.959 six to fifteen. There's a sweet spot and they're kind 0:09:49.960 --> 0:09:52.800 of the five K ring from the CBD. Then you've 0:09:52.800 --> 0:09:54.680 got and that can be north to south as well. 0:09:54.720 --> 0:09:57.640 And then you've got the Middle Ring suburb by I mentioned, 0:09:57.800 --> 0:09:59.720 which is really it's over a mill now. It used 0:09:59.760 --> 0:10:02.880 to be like cheaper like everything, but now it's one 0:10:02.880 --> 0:10:06.200 two to one three for that eight to ten k house. 0:10:06.240 --> 0:10:08.880 So they're probably the two sweet spots. There's also in 0:10:08.920 --> 0:10:10.560 the city units. We bought one the other day at 0:10:10.600 --> 0:10:14.079 Kelvin Grove which is near Victoria Park where the Olympic 0:10:14.120 --> 0:10:16.480 Stadium is, and that was six ninety. It was a 0:10:16.559 --> 0:10:19.920 one better but in a small complex of eleven good 0:10:19.960 --> 0:10:23.400 rent return, good capital growth. Given its proximity to the 0:10:23.440 --> 0:10:27.160 Olympic Stadium as well, it was like three. 0:10:26.920 --> 0:10:29.240 Clicks something I really do want to pick up. We're 0:10:29.240 --> 0:10:30.640 going to take a break, but we've going to talk 0:10:30.679 --> 0:10:34.840 next about I suppose the big issue, the big theme 0:10:35.960 --> 0:10:39.760 for Brisbane property folks over the next decade, it's the Olympics, 0:10:39.840 --> 0:10:42.839 quite simply, and it's going to If Sydney in two 0:10:42.880 --> 0:10:45.360 thousand is anything to go by, we really have something 0:10:45.360 --> 0:10:55.640 to talk about. We'd be back in a moment. Hello, 0:10:55.760 --> 0:10:58.640 welcome back to the Australians Money Puzzled podcast. I'm talking 0:10:58.679 --> 0:11:03.280 to Sam Price of Templeton Property Group. He is a 0:11:03.360 --> 0:11:07.560 Brisbane based buyer's advocate and he has been in the 0:11:07.600 --> 0:11:12.360 market for some time. Sam. It's very easy, I suppose 0:11:12.440 --> 0:11:14.400 for the analyst to pot out a report and say 0:11:14.480 --> 0:11:17.360 Sydney Olympics, or at least Brisbane Olympics are coming. It's 0:11:17.360 --> 0:11:19.880 going to be a huge thing for the city. We 0:11:20.000 --> 0:11:23.440 have clear evidence that prior to the Olympics, in the 0:11:23.520 --> 0:11:27.440 run up there is strong residential property price patterns in 0:11:27.520 --> 0:11:32.360 many cities. Our nearest comparable city is Sydney, which was 0:11:32.720 --> 0:11:35.559 just twenty five years ago, the Sydney Olympics two thousand, 0:11:35.640 --> 0:11:39.280 where Sydney had a tremendous run up to two thousand 0:11:39.400 --> 0:11:41.560 and actually it lasted for a year or two longer, 0:11:41.880 --> 0:11:46.319 but it then had a real slump because Olympics were over, 0:11:46.960 --> 0:11:50.079 because there had been an element of prices being pulled forward. 0:11:50.840 --> 0:11:54.480 Tell me your view about Brisbane and what the Olympics 0:11:54.520 --> 0:11:56.439 might mean to it for investors. 0:11:56.800 --> 0:12:00.000 Good question, James. I think Brisbane's very different than Sydney. 0:12:00.240 --> 0:12:03.840 I know, I don't know exactly where Homebush is, but 0:12:03.880 --> 0:12:07.280 I know it's some distance from the CBD. Brisbane is 0:12:07.360 --> 0:12:09.720 very different. Like if you look at Victoria Park, which 0:12:09.760 --> 0:12:12.200 is where the stadium is going to be built. It's 0:12:12.240 --> 0:12:16.480 literally two kilometers north of the CBD, close and the 0:12:16.640 --> 0:12:19.360 spring Hill swimming Pool where it's going to get rendov 0:12:19.440 --> 0:12:22.400 it's going to get rebuilt is the Aquatic Center that's 0:12:22.480 --> 0:12:24.240 less than two kilometers and it's going to be a 0:12:24.280 --> 0:12:27.600 flyer from spring Hill to Hurston and it's going to 0:12:27.600 --> 0:12:30.880 be really integrated with the CBD. So this infrastructure they're 0:12:30.880 --> 0:12:33.920 building is not at a remote part of Brisbane. It's 0:12:33.960 --> 0:12:36.680 actually in the heart of the CBD where it's close 0:12:36.720 --> 0:12:39.600 to the hospital, close to the rail line. It's really 0:12:39.600 --> 0:12:42.440 going to change the dynamics of the city, not just 0:12:42.480 --> 0:12:44.840 for a short term, but will benefit from it from 0:12:45.040 --> 0:12:46.640 for decades after that as well. 0:12:47.440 --> 0:12:49.480 So how do you think that would be different then 0:12:49.600 --> 0:12:52.040 for investors? Do you think there is a I mean, 0:12:53.200 --> 0:12:56.120 I put it to you, do you really think Brisbane 0:12:56.160 --> 0:12:59.360 can escape that particular issue that will be a run 0:12:59.440 --> 0:13:02.079 up and then they'll hangover if you like, after the Olympics. 0:13:02.360 --> 0:13:05.480 Yeah, it's probably like a good wedding, James, the next 0:13:05.480 --> 0:13:08.199 morning you'll feel a bit tired and you wonder where 0:13:08.200 --> 0:13:10.200 the money went and things like that, and wasn't worth it, 0:13:10.240 --> 0:13:12.199 but so I think there will be a lull after 0:13:12.240 --> 0:13:13.760 it for a little time. There will be a big 0:13:13.840 --> 0:13:16.080 run up which people can capitalize on for the next 0:13:16.120 --> 0:13:19.240 seven years. There may be a little lull when we 0:13:19.280 --> 0:13:21.760 find our feet, but I think we'll find like even 0:13:21.760 --> 0:13:23.880 if we need thirty there's talking that we need thirty 0:13:23.920 --> 0:13:27.120 thousand trades people to help build all this infrastructure. I 0:13:27.200 --> 0:13:29.120 reckon a lot of them will move to Brisbane for 0:13:29.160 --> 0:13:31.319 the work, follow the money, but they end up staying 0:13:31.360 --> 0:13:33.760 here as well. But I think it's going to ramp 0:13:33.840 --> 0:13:36.920 up the population, build up the right infrastructure to set 0:13:37.000 --> 0:13:39.080 up for the future. There might be a little bit 0:13:39.080 --> 0:13:41.480 of a softening after that, but then I think it 0:13:41.520 --> 0:13:44.000 will just carry on its merry way with these new 0:13:44.040 --> 0:13:47.440 beautiful stadiums for the cricket and the AFL and football, 0:13:47.480 --> 0:13:51.360 and it'll be a great injection into the Brisbane economy 0:13:51.640 --> 0:13:53.040 that will benefit for many years. 0:13:53.120 --> 0:13:55.200 We've had a real debate on the show abou whether 0:13:55.600 --> 0:13:58.520 Brisbane's having just a moment in the sun if you like. 0:14:00.080 --> 0:14:02.680 The natural order of things is that prices should be 0:14:03.360 --> 0:14:06.880 Sydney first, Melbourne's second, Brisbane third, as it always was 0:14:06.960 --> 0:14:10.559 for who knows how long. Essentially, some people suggest structurally 0:14:10.600 --> 0:14:13.320 that might be different that actually it may never go 0:14:13.400 --> 0:14:15.960 back to that order. What do you think? I'm asking you, 0:14:15.960 --> 0:14:19.440 as a buyer's advocate putting that on the table for me. 0:14:19.720 --> 0:14:21.280 I'd fall off my chair if he says no. But 0:14:21.320 --> 0:14:23.160 what do you have to say now? 0:14:23.200 --> 0:14:25.840 I do think that I think Brisbane has its place. 0:14:25.880 --> 0:14:28.320 I don't think it Zebra. Sydney is just magnificent with 0:14:28.360 --> 0:14:31.960 the harbor and so forth the water. Melbourne has its 0:14:32.080 --> 0:14:35.600 character and its history that Brisbane can never compete with either. 0:14:36.080 --> 0:14:38.880 So I think Melbourne will you don't get it sacked 0:14:38.880 --> 0:14:41.280 together over the next decade and will pick up again. 0:14:41.400 --> 0:14:44.120 So it probably it's rightful place. But Brisbane will be 0:14:44.160 --> 0:14:47.280 at that younger brother that's kind of nipping at its heels, 0:14:47.640 --> 0:14:50.480 and that's setting up the infrastructure. And when people come 0:14:50.560 --> 0:14:53.440 up here like they did after COVID and experience just 0:14:53.480 --> 0:14:56.480 the weather even and the opportunities in Brisbane, they like 0:14:56.560 --> 0:14:59.320 what they see and feel. And the number of people 0:14:59.360 --> 0:15:01.760 that I've helped buy family homes up here and they 0:15:01.760 --> 0:15:04.440 haven't the bird up here with work because they've been 0:15:05.040 --> 0:15:06.680 brought up here for work, but they haven't known a 0:15:06.680 --> 0:15:08.560 lot of people and they've really done it for their 0:15:08.600 --> 0:15:11.840 family and for their future. So I think it has 0:15:11.880 --> 0:15:13.320 its place for that for sure. 0:15:13.840 --> 0:15:15.200 The flips out of this, of course, is that the 0:15:15.240 --> 0:15:18.560 prices have drifted up much higher. Unemployment rate's more or 0:15:18.640 --> 0:15:20.600 less the same in the two states. For nothing in 0:15:20.640 --> 0:15:22.800 it where was upart of time? The whole thing was, 0:15:22.840 --> 0:15:24.400 you know, you got a job in Melbourne, you couldn't 0:15:24.400 --> 0:15:28.360 get one in Queensland as easily. The flips out of that, 0:15:28.400 --> 0:15:30.800 of course, is that you're not getting the internal migration 0:15:30.880 --> 0:15:33.600 you used to. Basically, the person is sitting in the 0:15:33.600 --> 0:15:36.080 suburban bloc and who was ready to retire in the 0:15:36.120 --> 0:15:40.800 suburbs of the second biggest city they can't move to well, 0:15:41.000 --> 0:15:43.280 they certainly can't move as easily as they could. I 0:15:43.280 --> 0:15:45.280 mean that would be a drag on prices, would it not. 0:15:45.320 --> 0:15:46.560 In the fullness of time. 0:15:48.000 --> 0:15:50.520 It may well, James, Yeah, because the cost of buying 0:15:50.560 --> 0:15:52.240 and selling it is huge at the moment, and that's 0:15:52.280 --> 0:15:55.280 why I think stock levels so low everywhere, because the 0:15:55.320 --> 0:15:58.000 cost of stamp duty and so forth to such that 0:15:58.040 --> 0:16:01.720 we we're not as mobile, readily selling and buying as 0:16:01.720 --> 0:16:04.840 we used to be. I think that well, Melbourne will 0:16:04.960 --> 0:16:06.840 find its feet. I think there's a lot of investors 0:16:06.880 --> 0:16:10.080 buying in Melbourne at the moment, but whether that changes 0:16:10.120 --> 0:16:12.960 the dynamics of some suburbs that there's an influx of 0:16:13.000 --> 0:16:15.480 investors and you know, you're really mak your money without 0:16:15.520 --> 0:16:18.400 our occupiers. You know, when they come into an area 0:16:18.440 --> 0:16:21.120 or rejuvenate it, that's where you get the real growth. 0:16:20.960 --> 0:16:24.840 That you need, that heft in numbers to transform the 0:16:24.920 --> 0:16:28.600 investor Obviously, even though we have an obsurge of investor activity, 0:16:28.600 --> 0:16:31.400 they're not going to transform areas in and by themselves. 0:16:31.440 --> 0:16:33.560 That's a really good point. Okay, we have some very 0:16:33.600 --> 0:16:37.000 interesting issues we want to talk to Sam about in 0:16:37.040 --> 0:16:39.840 the next segment. Have some really good questions and have 0:16:39.880 --> 0:16:44.520 one on social media influencers, which I think you'll find fascinating, folks, 0:16:44.600 --> 0:16:47.600 because we've been thinking about them as sort of players 0:16:47.640 --> 0:16:50.280 in the share market, but they are emerging as players 0:16:50.440 --> 0:16:52.600 in the property market. We'll tell you all about that 0:16:52.680 --> 0:17:08.440 in a moment. Hello, Welcome back to The Australian's Money 0:17:08.440 --> 0:17:11.440 Puzzle podcast. I'm James Kirby with Sam Price. 0:17:12.440 --> 0:17:12.800 Sam. 0:17:13.040 --> 0:17:16.560 Yes, so in fact I was on I was actually 0:17:16.600 --> 0:17:19.920 speaking at an ASCIC whatever get together conference some time ago, 0:17:20.280 --> 0:17:25.359 and it was all about influencers, influencers that awkward term 0:17:26.119 --> 0:17:33.760 for social media players who build up a following, invariably 0:17:34.160 --> 0:17:39.480 with very light credentials, if any, in finance, suggesting how 0:17:39.520 --> 0:17:42.719 people can make money easily and fast, often suggesting how 0:17:42.720 --> 0:17:45.959 people can make money without even thinking or taking any risks, 0:17:46.720 --> 0:17:49.399 and of course that's impossible. But most of the focus 0:17:49.440 --> 0:17:51.520 has been in the share market, and to be fair, 0:17:51.600 --> 0:17:54.040 there's good influencers and bad influence. I want to talk 0:17:54.040 --> 0:17:58.240 about bad ones here. So what surprised me is I 0:17:58.280 --> 0:18:00.959 didn't really, I really didn't realize that the issue is 0:18:01.080 --> 0:18:06.280 just as alive in property, and only a few days 0:18:06.280 --> 0:18:09.000 ago it came to light in a very clear way. 0:18:09.480 --> 0:18:11.240 There has been a burst of you like of social 0:18:11.280 --> 0:18:14.800 media influencers in the property market suggesting that people like 0:18:14.920 --> 0:18:18.240 listeners to the show can get around lending limits, for instance, 0:18:18.880 --> 0:18:24.439 or LVR limits by creating trusts or family trusts or 0:18:24.480 --> 0:18:27.080 companies and then going to the bank that way, or 0:18:27.119 --> 0:18:30.240 going to lend us that way. Macquarie Bank surprised everyone 0:18:30.280 --> 0:18:32.600 by standing in a few days ago and saying forget it, 0:18:32.720 --> 0:18:36.080 no more of this, no more, We're closing this whole 0:18:36.080 --> 0:18:40.000 thing down of lending into companies and trusts. So that 0:18:40.040 --> 0:18:45.520 was hard evidence actually of both the influencers influence. But 0:18:45.600 --> 0:18:47.480 I want to ask you what do you think of 0:18:47.560 --> 0:18:49.720 that whole story and does it concern you? 0:18:50.960 --> 0:18:53.440 It does Jomes because of what I've learned in life 0:18:53.480 --> 0:18:55.800 is that sometimes the people that can best sell things 0:18:55.800 --> 0:19:00.480 and not the best to be listened to with. I 0:19:00.520 --> 0:19:03.320 tell people they should be, you know, be very careful 0:19:03.359 --> 0:19:06.280 who they take the advice from. When it's a social 0:19:06.320 --> 0:19:09.240 media of course, and I often think that the people 0:19:09.240 --> 0:19:11.840 that are following them can be can sometimes be quite 0:19:11.840 --> 0:19:16.040 easily led into areas where it is more you're risky 0:19:16.119 --> 0:19:18.560 than the otherwise would think. And a lot I know 0:19:18.600 --> 0:19:20.800 a lot of the markets buyers agents are putting people 0:19:20.840 --> 0:19:23.560 in throughout Australia. I don't think a long term hule, 0:19:23.680 --> 0:19:26.000 so you do have to treat it like a penny 0:19:26.000 --> 0:19:28.120 stock where you might jump in for a number of years, 0:19:28.200 --> 0:19:30.520 but then there is a time in the medium term 0:19:30.560 --> 0:19:32.520 you do have to sell to get out. They're not 0:19:33.040 --> 0:19:36.359 buying Hull forever. I think a property in Brisbane, like 0:19:36.840 --> 0:19:39.200 I think it was Charlie Munger or Warren Bofthet used 0:19:39.200 --> 0:19:40.760 to say, you want to buy a company or a 0:19:40.760 --> 0:19:42.600 property that you can put in your bottom drawer and 0:19:42.600 --> 0:19:44.399 figet about for ten years and pull it out and 0:19:44.440 --> 0:19:46.480 toust it off and it's in better shape that it 0:19:46.560 --> 0:19:49.760 was when it went in. And I think property in Sydney, 0:19:49.920 --> 0:19:53.439 some parts of Melbourne and Brisbane there's properties definitely like 0:19:53.480 --> 0:19:55.000 that I'd be happy to hold. But some of these 0:19:55.040 --> 0:19:58.159 other areas that are being sell throughout Australia, I'm a 0:19:58.160 --> 0:20:00.919 little bit a bit sus on whether they will be 0:20:00.960 --> 0:20:02.840 that good whole long term that I think you'd have 0:20:02.880 --> 0:20:05.399 to watch it closely and have an exit strategy for it. 0:20:05.440 --> 0:20:07.440 So it's a different type of investment completely. 0:20:08.240 --> 0:20:11.439 Do you think some of these buyers agents are in 0:20:11.560 --> 0:20:13.280 legue as such with the influencers. 0:20:14.480 --> 0:20:16.640 A lot of them are the influencers themselves. I think 0:20:16.880 --> 0:20:20.399 James as agents and they're selling their areas. You know, 0:20:20.440 --> 0:20:23.440 they normally have a particular patch where they like and 0:20:22.680 --> 0:20:26.160 they can rent that up and sometimes refer to pump 0:20:26.200 --> 0:20:28.560 and dump where they can actually change the market because 0:20:28.560 --> 0:20:31.359 they are literally are buying twenty to fifty per months, 0:20:31.400 --> 0:20:33.359 so you just have to be aware of that. In 0:20:33.400 --> 0:20:35.919 Brisbane at the moment, it's in these regional areas and 0:20:36.480 --> 0:20:39.359 pockets of Melbourne and towns will and down where they're 0:20:39.480 --> 0:20:42.600 actually changing the whole market with their attention. 0:20:42.880 --> 0:20:45.879 Yeah, that's really interesting. But let's just let's interrogate what 0:20:46.080 --> 0:20:51.199 mcquarie implied. They didn't like this, right, So what the 0:20:51.240 --> 0:20:55.280 influencers are seeing, and let's assume the very best case scenario. 0:20:55.400 --> 0:20:59.080 Let's assume the listener the reader of the influencer actually 0:20:59.119 --> 0:21:03.080 has a clue and actually does understand to some extent 0:21:03.200 --> 0:21:05.920 property market, and then they hear something they've never heard before, 0:21:06.200 --> 0:21:09.960