15 Sep Women say ‘a man is not a plan’ + The spring property outlook + How serious should your ‘offers’ be?
Highlights from this week:
- “Buying off plan is risky because it is ‘concept’” – Miriam Sandhuhler
- Where there is still some good buying in Sydney – Rich Harvey
- Women are finding new love in property – Ken Morrison
- Investors eye Canberra after Mr Fluffy – Rich Harvey
- 45% of women investors negatively gear – Ken Morrison
- With property investment – you can’t sit on the fence – Miriam Sandkuhler
Buyers Agent Spring Outlook – Rich Harvey
Kevin: Here we are, the start of spring, and the Real Estate Buyers Agents Association of Australia has revealed what it sees as the predictions for the 2017 spring property market ahead of us. Joining us, the president of that illustrious organization, Rich Harvey.
Good day, Rich.
Rich: Hi, Kevin. How are you?
Kevin: Wonderful, thank you. Spring, of course, a great time to be looking at property, and we’re just starting spring now. Let’s have a look around Australia. What are you seeing in the Sydney market, Rich?
Rich: Yes, spring has sprung, and I think the weather is going to start warming up right around the nation. I also noticed that it starts to change people’s moods when spring hits. There’s a different psychology in the buyer’s mind and in the seller’s mind. I think we’re going to see traditionally more activity in all of the markets, but it won’t be the same around the country.
I think in Sydney, we’re going to see some better buying opportunities as stock levels will start to increase, but I do think we’re going to see a slight decrease in the auction clearance rates as more stock comes to market and we get back toward a more balanced market.
Kevin: What’s behind that prediction, Rich, that you’re thinking the success rate at auction might drop a bit?
Rich: Number one, we’ve had a very boom style of market, and I think naturally as you get more properties coming to market, you generally have a lower auction clearance rate. During the boom times, we were high 80%s, almost up to 90%, which is just unbelievable. A more traditional long-term average for auction clearance rates is around the mid-60%s, so I think we’re going to get back to a more balanced market.
That’s not to say the prices are going to go backwards; I think the foot has come off the accelerator, and we’re going to just start to see a more moderate market returning in the coming year.
Kevin: It’s a good point you make that it’s not necessarily that the market is going to come back; it just may be that sellers may have to adjust to a slower market. In other words, the growth is not going to be as great as what we’ve expected in the past.
Rich: That’s right, exactly. I think it’s important for buyers not to be afraid to negotiate in the current market, especially the middle and outer rings. Your premium areas and your inner west, North Shore, eastern suburbs, those prime markets are always traditionally tightly held, whether the market is up or down.
But in other markets where there’s more volume or a higher turnover, they’re perhaps a little bit more volatile. You just have to do your research and get out there and find out what they’re really worth.
Kevin: I notice that in Melbourne, you’re predicting that there’s going to be some competition coming from down-sizers. What’s behind that, Rich?
Rich: Yes. It’s not isolated to just Melbourne, but you do find that the down-sizer markets are going to start picking up. I think when the kids leave home and they want to empty their own nest so to speak, they want less maintenance.
And I think we’ve seen good equity increases in the Melbourne market. So, those owners there who are wanting to capitalize on that increased equity to move into something that’s better located and lower maintenance, I think they’ll start to make that move.
Kevin: A lot more units on the market in Melbourne, but we’re seeing a bit of a shortage in traditional three- and four-bedroom houses, Rich.
Rich: Yes, that’s true. I also think that the northern and western suburbs are going to represent pretty good value. So, where you have apartments selling with little outdoor space, I think you’re going to find that affordable market very attractive, and particularly the first-home buyer market where they’re removing stamp duties for properties under $600,000 and you have that sliding scale up to $750,000.
That’s going to really attract a lot of the first-home buyers back into that market, and I expect consistent pressure in the Melbourne market for that bracket.
Kevin: Yes, Melbourne has been the auction powerhouse of the country for many years. What do you see is happening in Melbourne this spring at auctions?
Rich: Sydney is past its peak, and Melbourne is pretty much at its peak, so I think Melbourne will follow a similar trajectory. But Melbourne is the auction capital. It always tends to have a greater number of properties sold at auction, so I don’t see any reason for that to not continue in the spring selling season.
Kevin: And in Brisbane? I understand the inner and middle ring suburbs are remaining pretty popular, I understand.
Rich: Yes. You want to stay clear of off-the-plan apartments in that Brisbane market, that’s for sure. I think they’re definitely over-cooked in there, and there’s a lot of supply coming on. But good quality townhouses, good quality houses in those inner and middle rings are going to be in continual demand, and again, there’s under-supply.
Again a similar theme with the down-sizers. They want to move there and they want a lower maintenance property, so I think that’s going to be a continuing theme in the Brisbane market, too.
Kevin: We’re hearing reports that there’s been a major slowdown in building for units in Brisbane. How long is it going to take to catch up and absorb some of the supply that’s already there, do you think?
Rich: It could be two years, it could be 24 months, maybe a fraction longer. It depends on a couple of things, Kevin. It depends on the rate of population growth and also just how the economy fares.
If job creation continues to go forward positively in Brisbane, then I think it will absorb that supply a bit quicker. However, if there’s a decline in the resources sector or a deterioration in the economic conditions in the Brisbane market, then that will have a flow-on effect and slow that out.
So, we can make all the predictions we like, but the two key things are that population growth and employment opportunity that’s really going to drive that absorption of supply.
Kevin: The higher end of the market in Brisbane seems to be fairing fairly well, though.
Rich: Yes, it does. It’s always in high demand. If you look at those inner ring suburbs, St. Lucia and those areas close to the city on the river that have great views and great lifestyle appeal, they’ll always continue to be highly sought after.
Kevin: We covered a story recently about Canberra and the Mr. Fluffy situation and how the necessary destruction of some of the houses because of asbestos is going to bring a lot more good stock onto the market. Tell me about Canberra. What are you seeing there?
Rich: Yes, Canberra has been an interesting one. It was badly affected by the cuts in the public service sector, but that has really settled down now and it’s going through a bit of renaissance. A lot of people are going “We’re not sure whether we should put our money into the bigger capitals, but Canberra is looking pretty stable.” I think it’s going to be a busy time of year, particularly as people start to get settled for the new school year or staring employment in 2018.
A lot of investors are going there because they’re finding that the yields are quite reasonable, and they’re following some infrastructure trails there. I think it’s definitely a little bright spot on the map.
Kevin: Yes, I think it’s a market to watch, that’s for sure. Let’s move to Adelaide. A bit of uncertainty there with buyers.
Rich: Yes, Adelaide is a bit of a fragmented market. You have to be really careful where you buy in that Adelaide market. Adelaide has been what I call one of those slow burner markets. It ticks along with capital growth somewhere between 2% and 4%.
When it’s uncertain, you just have to be careful you’re not over-paying. Some suburbs have shown some really good growth; other suburbs have shown pretty lackluster growth. So, that’s something to watch for.
Another trend there is there have been a lot more property selling by auction in the more wealthy inner ring suburbs. Or instead of auction, they’ll also do an “offers over” or a “best offer buy a certain date.” So, it’s really important that you get local representation in that market to buy a property.
Kevin: Perth is still a bit of a mixed market, isn’t it?
Rich: Yes. Some of the valuers – like Herron Todd White – are saying that it’s pretty much at bottom of the market, but our representative there from REBAA is saying that they’re getting a lot more interest from interstate and international buyers who are wanting to buy at the very bottom of the cycle.
So, again, there are some markets there that are going to be struggling and other markets that will move forward. But they have a really hot upgrader market as well, because when prices are down, you can also then upgrade and do it quite effectively.
Obviously, you won’t get as much for your place that you’re selling, but equally on the other side, on the buyer side, you’re going to do quite well getting some really nice properties in those good suburbs on the beach side like Cottesloe or the areas along the river.
Kevin: Rich Harvey is joining me from the Real Estate Buyers Agents Association of Australia.
Tasmania, some smart money went there. It was pretty smart, too, at the time, wasn’t it?
Rich: Yes. Tassie is another bright spark, too. It’s a shining star at the moment. Really strong yields. Our representative there, Rob Zubin, recons that market is going to probably continue for another 18 months. Again, a classic case of supply versus demand imbalance, and we’ve seen a bit of a spike in prices.
I guess the thing to watch for, again, is making sure the drivers are going to be there long-term, but Tassie is a very attractive state, great lifestyle, some great tourism opportunities there, and very natural environments. I think those are the things that are attracting buyers to that market, and I think it will do quite well.
Kevin: Still very affordable, too. I guess the bottom line here is that there are opportunities in all markets, Rich, aren’t there?
Rich: That’s right. As I always say, regardless of where you’re at in the cycle, if you can identify what I call an arbitrage, where you can get in at the right price at the right time regardless of the cycle and hold it well, you’re going to do well. You can do some smart things like adding value or renovating the property as well.
But there’s no shortcut to due diligence, Kevin. It really is a matter of getting there on the ground or engaging someone to do that research for you.
Kevin: Rich Harvey from the Real Estate Buyers Agents Association of Australia. Thanks very much. A great overview there of the Australian market. Rich, thanks for your time.
Rich: My pleasure, Kevin. Any time.
Why a ‘man is not a plan’ – Ken Morrison
Kevin: Interesting to note in a blog article that I read on Your Investment Property’s website, an increasing number of women making up for what they lack in superannuation by investing in properties. This is according to analysis of data from the Australian Taxation Office by the Property Council of Australia.
Ken Morrison, who is my next guest, is quoted in that article inside Your Investment Property magazine, and Ken joins me to talk about that.
Ken, thank you for your time. Welcome to the show.
Ken: My pleasure, Ken.
Kevin: Interesting to note these figures. Let’s walk through a few of these. Nearly half – 47% – of Australians who own investment property are women. Did that surprise you, Ken?
Ken: Yes, it is surprising because as we all know, on average, women earn less than men, so you would have thought their ability to invest in property might be lower. But in fact, we’re not seeing that. We’re seeing women taking a conscious decision to invest in property despite that wage disparity.
We think they’re doing that because they’re looking to the end of their working life and realizing that they’re not going to end up with the same superannuation nest eggs as their male counterparts, so they need to actively build wealth for the future, and they’re using property to begin doing that.
Kevin: We’re seeing a lot of young women, too, before they even consider getting married, looking at investing in property. Would it be fair to say, Ken, that because of some of the constraints you just talked about and a few others will talk about, they could actually be starting behind the eight ball a little bit?
Ken: No doubt that’s the case. If you’re on average earning less than someone… And we know that women do that. There’s a pay inequity issue that seems to be hardwired into workplaces, which is tough to do something about and is, unfortunately, still persisting. So, you have that issue.
You also have women far more likely than men to take time out of their work lives to look after families, and women are more likely than men to be working part time rather than full time. You put all of that together and over a working life, they’re going to be earning considerably less.
But here we see women, despite that, making an active decision to invest in property, and that can only be because they’re looking to the future and they’re saying “A man is not a plan. I need to have my own financial plan and to be building wealth and using property as part of that.”
Kevin: I read a quote somewhere – it was only fairly recently – that men outnumbered women almost two-thirds in terms of investors, but that certainly seems to be changing.
It raises another question, too. If it’s difficult for women because of the pay structure, I wonder how difficult it is for them when it comes to borrowing, going to the bank. How do the banks look at them, Ken?
Ken: Again, you can see that will depend on their circumstance. But if you have an individual, a woman, who is earning less than their male counterpart, then they’re going to be able to borrow less than their male counterpart would be. That might also impact their decisions.
What we’re seeing in society is because particularly in Sydney and Melbourne, where house prices have really gone through the roof, more people are choosing to invest as their first step on the property ladder rather than going straight into an owner-occupied property.
That might allow them to purchase a place where they don’t have to work. They don’t have to be proximate to their location. It might be a different city where prices are cheaper and what they’re intending to do is to trade that investment property into an owner-occupied property, perhaps when they’re forming a family.
We’re seeing that with males and females, but if your ability to access a mortgage off the base of a lower income means that you’ll also be facing some of these limitations when it comes to the property market as well.
Kevin: Ken, do you have a feel for how many women are actually negatively geared compared to men?
Ken: Yes. It’s pretty similar to investment properties, so it’s 55% of negative gearers are male. It’s around 45% who are females, so just under half, as you said. Interestingly, when you look at those with salaries below $80,000, 55% of negative gearers below $80,000 are women and 45% are men, so it reverses.
It bears out what I’m saying. You would expect if you’re earning less that you would have less capacity to actually be investing in a residential property. In fact, what we’re seeing is women who are more likely to be earning less than men are actually taking an active decision to get out there and try to build their financial security through property.
It’s quite dramatic when you have 55% of those people who are negative gearing who are male, but when you look at below $80,000, that’s reversed, so it’s only 45%. There is definitely something going on for women who are really charting a course, who are deciding that they really have to build their own financial security, feel limited in the way they’re able to do that, and do see property investment as an avenue for that security.
Kevin: Very interesting. Ken, I appreciate you spending some time with us to bring us up to date on this as well. Ken Morrison is the Chief Executive of the Property Council of Australia.
Ken, thanks so much for your time.
Ken: My pleasure, Kevin.
Don’t focus just on price – Miriam Sandkuhler
Kevin: We hear lots of great advice about what properties you should buy. Is it all about location? The saying about you only make money when you buy property, not when you sell it. What about “Buying property is not all about price?” That’s what we’re going to talk about now with Miriam Sandkuhler who’s a buyer’s agent with Property Mavens.
Good day, Miriam. Nice to talk to you again.
Miriam: Hi, Kevin. Nice to talk to you, too.
Kevin: If buying property is not about price, then what is it about?
Miriam: Price is obviously a factor, but that kind of comes in at the end. That’s one of the last things that we would consider when buying a property. There are a number of things buyers or investors want addressed all the way through.
They want to make sure that they have a plan in place. They need to be clear on whether they’re investing for capital growth or whether they’re investing for cash flow, and what that property needs to do for them. So, they have to have their budget resolved as well at that time when they’re putting that plan together.
They need to understand their own personal risk profile and make sure that it matches the property type that they’re looking at and the risk associated with that property type. We know things like buying off the plan is very high risk compared to buying an established property, because obviously it’s a concept and there are many reasons that it can fall over.
Obviously, it’s about getting the right experts engaged at the right times. So, that’s your building and pest inspectors, your conveyancers. I speak to conveyancers a lot of the time and they hate it when someone rings them after they’d bought a property at auction and says, “Can you have a look at the contract for us?” Because then it’s too late. But it happens a shockingly regular amount of time.
They want to make sure that… Again going back to the experts, the right expert at the right time can help them maximize their return and certainly help them minimize the risks. So, there’s a reason to bring them on board.
And the thing that also leads into determining price ultimately is doing the right research. That includes looking at the right growth drivers and considering multiple growth drivers, not just one such as population growth. I need to be clear here that searching on the Internet and having a look on RealEstate.com is not research; that’s called searching. There is a distinction.
Also, just be a little bit wary of free advice. Often, free advice is sales advice that’s been disguised with a bit of smoke and mirrors and it’s not necessarily to the benefit of the investor.
Then all of that together will take them down to the point of the negotiation part of it, and that’s where things like recent sales evidence will help them form a picture of what the price of that property will be.
So really, all of those steps need to happen to get to that point ultimately where they decide what price they’re going to pay for it.
Kevin: Let’s unpack a little bit of that, because there’s some tremendous advice inside there. You mentioned about research and looking on RealEstate.com.au and Domain. And I agree with you: it’s not research; that’s just searching.
Are you a believer in getting your feet on the ground, or would you actually consider buying a property with a team and doing it remotely?
Miriam: No, I’d never not view a property. There are so many things that hide and don’t show, and my experience in buying real estate is that photos can make the property look amazing and when you get there in reality it’s not that good. Or sometimes they can under-represent the property. It can look crappy online, but when you get there it’s actually a lot better.
So, there’s a massive risk in doing that. And in all reality, come on, if you’re spending hundreds of thousands of dollars, don’t tell me you can’t afford $200 or $300 or $400 to go check it out and see what it looks like. I just think that’s a really foolish way to go. I’d never do that.
Kevin: And building the team, you mentioned getting the right team members in at the right time. That’s all part of that planning process, because really what it comes down to, Miriam – and you just laid out for us a beautiful plan – is you have to have a plan or a strategy. You can’t just wake up one morning and decide you want to buy an investment property.
Miriam: That’s right. Often if some prospective clients ring me, I ask them, “Are you investing for capital growth or cashflow?” and they sit there and go, “I want both.” But that’s sitting on the fence, and it’s not a clear strategy in terms of how many properties they need to buy, what their timeframes are, how much equity they need to achieve, what income does it have to deliver for them? It’s more complex than that.
And typically, people who are accustomed to buying property because they’ve been listening to selling agents for decades over-simplify the process and dumb it down and spread myths like “All properties double every seven years and everyone gets rich out of property,” and it’s just not true.
It’s really a case of understanding it’s far more complex and there are lots more steps involved in the process to actually buy well. And it’s actually much easier to get it wrong than it is to get it right.
Kevin: That’s a great saying, too, and it’s very true: much easier to get it wrong than it is to get it right.
Miriam Sandkuhler from PropertyMavens.com.au always makes a lot of sense. Thank you for your time, Miriam.
Miriam: You’re very welcome, Kevin. Thank you.
How to work with the agent – Josh Masters
Kevin: In today’s market – I guess in any market – you really have to be on the top of your game if you want to be a successful property investor. When you’re approaching agents, how should you go about it? There are some different ways, depending, I guess, on whether it’s a buyer or a seller’s market.
Let’s talk to a man who does this quite often. He’s a buyer’s agent. In fact, he’s Sydney’s best buyer’s agent, Josh Masters, who we’ve spoken to in the show before.
Josh, thanks for joining us again. How are you?
Josh: My pleasure, Kevin. I’m very well.
Kevin: Good. How would you suggest someone go about buying a property in this market? Is it good enough just to test the waters with a verbal offer?
Josh: I don’t think so, but it’s an excellent question. One of the first things I tell clients or prospective buyers when they’re going out into the marketplace is really get a gauge on the market. Is it a buyer’s market? Is it a seller’s market?
I think a lot of people look at the marketplace and they think, “Oh, I’ll just use a bit of negotiation, a bit of hard line tactics,” and they’re quickly surprised when it’s actually in the seller’s favor, that they’re not really getting the traction that they thought they would, and they’re not actually getting taken seriously by any of the vendors and quickly get walked over.
Kevin: What are some of the warning signs for a buyer that they’re not being taken seriously, Josh?
Josh: Unfortunately, I actually had a prospective buyer call me yesterday. They contacted me and said, “We approached a sales agent and offered them what they were asking as a price guide, and they laughed at us.” I thought, “Well, what a terrible experience,” but it is so true, because typically, the agents will under-quote a property by a standard 10%.
It’s almost industry standard these days that they’ll be about 10% under that asking price, and having that reaction from an agent quickly tells you that you’re not even in the ballpark.
Kevin: What should someone do in a situation like that? Obviously, buyers who aren’t skilled or as skilled as you are, should they actually offer more? What sort of dialogue should they use with the agent?
Josh: That’s an excellent question. This person actually knew me personally, so he gave me a call and I could help them out. But normally, I would go back to the agent and say, “I’m not very experienced.” I would actually put my cards on the table. Tell them honestly, “We’re really trying for these properties but we seem to be missing out. Can you give us a little bit of a hand of what this vendor’s expectations are?”
He might give you an over-inflated price or might blow it out of the water for you, but at least you get a little bit of feedback and you can actually say this is where you really should be playing. In the future, if you go for any other properties, rather than waste everybody’s time, maybe go in at a higher level and you’ll quickly get a gauge on whether that’s appropriate or not.
Kevin: I quite often think that testing the waters with verbal offers can be a very big mistake. You show your hand to start with and you’re not indicating that you’re serious.
Josh: I agree.
Kevin: Let’s talk for a moment about serious offers. What would you class as a serious offer?
Josh: Kevin, the first thing I would actually do – and we do this for every property we purchase regardless of size or amount – is get an independent valuation done. A lot of people attach valuations to bank valuations. Obviously, the banks engage their own valuers, but you can do yours as well.
Rather than taking things on a hunch, you can actually get a professional opinion, get a list of comparable sales that say “Based on the market today, this is what we think this property is worth.” And this is a professional, independent opinion.
You can take that opinion and then say “This is our line in the sand, and this is where we can go forward from here and gauge our offer.”
Kevin: The thing I love about what you’ve just said, too, Josh, is that the listing agent is going to know that you’re getting a valuation done. They’ll then know how serious you really are, too. It’s a good message to send.
Josh: That’s right. If a valuation goes over the expectations of the asking price, then I don’t tell them what our valuation is. But if it goes under, I actually take it back to the agent and say, “I know you’re asking $750,000, but our valuation has come in at $700,000 and this is where we think a fair price would be.”
I give them the valuation because the agent can then take it back to their vendor and say, “The market is getting this response.” The agent is just trying to do their job as well. “The market is getting this response and they’ve had a valuation done. There is some serious background research into this. Maybe we should consider bringing our expectations back a little bit.” Sometimes that can help.
Kevin: Indeed, it can. Very good advice, too, from Josh Masters there. If you want to contact Josh, of course, you can through his website, JoshMasters.com.au. Josh, I look forward to catching up with you again real soon.
Josh: My pleasure, Kevin. Thanks for having me.
Like-minded people band together – Matt Jones
Kevin: You’ve heard us talk in the show before about the opportunities that lay before property investors – the old saying that you’ll make your money out of investing in property when you buy, not necessarily when you sell.
My next guest is Matt Jones, who is from PropertyResourceShop.com, who also runs a number of networking groups of investors who get together to share ideas.
This has probably been one of the learnings as well from all of this, Matt, isn’t it? The opportunities that lie in front of us: you have to make sure that you actually secure the property at the right price.
Matt: Absolutely, Kevin. I find a lot of people jump in a little bit too early, or some don’t take action at all. I find one of the key things for investors is just to be surrounded by good people.
That comes in two parts: firstly, having the right team around you, a good accountant, mortgage broker, people who can advise you, but then also having the support, other investors around you who can really lift you up and help you with referrals and contacts and just learning from each other. That’s pretty much what we do at the networking groups.
Kevin: What was behind putting these together? Was this more for your own benefit, or did you see a need in the market?
Matt: It was very much kind of a selfish thing, I guess, in the beginning. When I started out in property, I did a mentorship that was based in Melbourne and I was in Brisbane at the time. So I just took the Brisbane contingency of that group. We just went out to dinner and had a chat, and I figured we could all learn off each other and leverage off each other.
Ten grew to 20, to 30, to 50, and 100. There are a couple thousand in there now. It has just grown and evolved organically. It was never supposed to be anything this big, but definitely, I’m finding there is this niche in the market where people want to be around other people and support each other. You don’t always have that in your own family or friends, those sort of networks, so it’s important to have those active investors who are doing the same thing as you or are on the same path around you.
Kevin: Have you seen the situation where someone may have come into your network group who had some fixed ideas on what they were going to do, they’re obviously on the wrong track, and through the momentum of the group, they were able to swing that around?
Matt: Yes. Most people who come in, it’s you don’t know what you don’t know. And there is such a broad skill range that comes to the group. Some people are brand-new who just read a book and want to start investing, others have done a couple of deals, and there’s a professional contingency, as well.
I find that people come in, they hear some of the content and talk to other everyday investors, and they realize how many options there are out there to make it work for themselves. It just brings confidence, I think, with each other, knowing that others are doing the same thing and just having a crack themselves – everyday investors still with a full-time job, wanting to maybe get out of the rat race, and just being able to implement some simple strategies they can take away from the night.
Kevin: One of the dynamic things I’ve seen with great people in any industry – and it does relate to the property industry, as well – is that they never stop learning, Matt. You’ve probably seen this in your own group where people have come along and you think probably their net worth is extremely high, they know it all anyway, but you never stop learning, do you?
Matt: Absolutely right, Kevin. I have a number of different mentors for different parts of my life, and it’s just something I accepted years ago. It’s cliché, but it’s about the journey. You’re always going to learn. You’re always going to have a bit of fear, something that you don’t know, and as long as you stay open to those learnings, you really do become more sophisticated in what you’re trying to do.
Kevin: We have a lot of listeners to this show who are probably first-time investors and are maybe going to take that first step. What would be your advice to them? What are the three key things you’d tell them to get started, Matt?
Matt: Three key things: I like to say to people who come on to the meetings, just take your time, three to six months, focusing on a few things and firstly, getting a good grip on the people around you, which I’ve already covered – having that support group and building that team because you can’t do it by yourself.
You need a good accountant, a good mortgage broker, a good solicitor, an account planner if you’re doing development, so getting that team in place. That takes some time, but you can leverage off the groups to do that.
The second thing is you can really get to know your area. I find there are deals in every suburb, and it’s more about knowing what’s going on in your area. I often invest close to home because it’s easier and just getting to know every property that’s on the market, everything that’s sold, what the market wants, and getting really clear on what that is so that you know it better than the agents so that when a deal comes along, you’re really aware of it.
The third thing would be education. A lot of people tend to abdicate, I suppose, or they don’t have the time to get in there. But really, the best way to become a good investor is to educate yourself.
There are many different levels you can go. It could be as simple as just going to the library and getting a book or buying a $30 book, or spending a bit of time and coming along to groups like mine – there are plenty of them over in Australia – or actually paying a bit of money and getting a mentor, someone to hold your hand along the way.
Either way, you need to be doing some sort of ongoing education to continue to grow as an investor.
Kevin: Very good words of advice, Matt. It’s been great talking to you. I love your work, and congratulations on what you’re doing with your network groups as well.
If you want to contact Matt and find out a little bit more: Matt Jones, you’ll find him at PropertyResourceShop.com and his e-mail address is email@example.com.
Matt, thank you very much for your time.
Matt: My pleasure, Kevin. Great to be here.