01 Jan ‘My best prediction’ – Simon Pressley
Not surprisingly Simon Pressley is proud of his highlight of 2018. He was the first to pick the boom in Hobart long before anyone else and those who followed his lead have just seen their third year of double digit growth in that market. He also outlines his surprises of the year.
Kevin: This show is all about looking back at 2018, the highlights and low lights. Joining me to do just that, Simon Pressley from Propertyology. G’day, Simon, how are you doing?
Simon: I’m very well, Kevin.
Kevin: Yeah, good, mate. Okay, well, what for you … Do you want to look at the highlights first? What were the highlights of 2018?
Simon: Oh, I think the biggest highlight, and my clients were liking this. Hobart, the third consecutive year of double digit price growth. We’ve seen collectively about 60% increase in the median house price over the last three and a bit years, and rental growth of 25% over that period of time as well. So comments, we’re liking that, but outside of that, the wonderful growth in large parts of Regional Australia. It’s fantastic for residents who live in those communities, and also fantastic for investor’s who are prepared to remove the blinkers and follow the fundamentals and not the consensus.
Kevin: Well you and I did an interesting video just recently where we looked at the impact of population growth on prices. That highlighted for me just how complicated choosing where the market’s heading can be, ’cause there are so many components to it. One of the highlights for me was hearing you talk about Regional Australia in this last year.
Simon: It’s undersold, I think. Whether it’s an alternative place to live, great lifestyle, affordable housing. It’s also an economics story and that’s been the driver of most of the growth throughout regional Australia. But I will admit it’s increasingly frustrating that so many capital city folk are naïve to how wonderful some of these places are to live and to invest in. It’s something that, I think Australia, from a top end down needs to have a good look at in how we address that perception that a lot capital city folk have of regional Australia.
Kevin: What were some of the low lights? What were some of the disappointments for you, or surprises probably is a better way to put it?
Simon: Low lights for me, the biggest … well, non property thing is just a constant revolving door of politicians and complete lack of leadership and selfishness. No one genuinely interested in running Australia or running the states. That’s a constant frustration I think I and many Australians have. But probably specific, another attack on property investors with the continuation of labors’ pledge to change negative gearing if they get elected in next year. We’ve already had enough. Investors have had enough wacks over the last couple of years. But that disappoints me, especially when the single biggest line item in the federal budget is welfare and specifically aged pensions. We need to encourage investors, and you and I’ve discussed that many times. I’m sure we will discuss again, but we need to encourage investors, not discourage.
Kevin: Yeah, it’s such a shortsighted view, isn’t it? To think that property investors are all greedy, out to make a buck when the majority of them are just people who are struggling to put aside a bit of a nest egg for their own retirement. I find it difficult to understand how they can justify constantly punishing people who are out to look after themselves and really secure their own investment.
Simon: Yeah, we deal with these everyday Aussies every day. It’s up to 100% of our clients and they are everyday Aussies. You know, good people, hardworking people, middle income earners. The average owns one or two properties. The ATO stats were released not that long ago and 90% of property investors own one or two properties. So we’re not talking rich people. Just everyday Aussies having a crack and trying to do something productive so that in years to come, they’re not reliant on tax payer funded pensions. We need to encourage that, I’ve got a 12 year old son. He’s not a property investor, though I encourage him about using his money wisely and then as he gets older, the things that he’s taught earlier, he’ll hopefully make some good decisions later in life. We should all be doing that, not discouraging it.
Kevin: Well next week will be the first show for 2019. I want to invite you back, if I may, and I’d like to get your impressions of it. Where do you think we’re headed for 2019? I hasten to mention here that I think your comments are going to be very well followed, given the fact that you were the first and probably one of the only, until it became fairly common knowledge about what was gonna happen in Tasmania with the Hobart prices. So, we’ll look with eager interest. You might not want to give too many trade secrets away, but you always give us a bit of a hint anyway Simon.
Simon: Oh, yeah, I’ll give you some hints.
Kevin: Good on you. Alright. Well Simon will be back here next week on the show and we’ll have a look at the year ahead and by that stage, we will have already started. Mate, all the best to you and your family for the new year.
Simon: Thanks for a great 2018, Kevin and I hope 2019’s better again for everybody.