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The podcast series "Confessions of a Property Investor," hosted by Catherine Andrews, delves into various aspects of property investment in Australia. It aims to demystify the property market, offering insights and practical advice for both novice and experienced investors. The series covers a range of topics, including bank interest rates, property cycles, investment strategies, and market trends. It addresses common fears, misconceptions, and challenges faced by property investors, providing expert opinions and real-world examples. The hosts also discuss the impact of economic factors and lifestyle choices on property investment decisions. The series is designed to educate and empower investors by providing them with the knowledge and tools needed to navigate the Australian property market successfully.
(upbeat music)
Well, welcome back to this episode of Confessions of a Property Investor. I'm Catherine Andrews, managing director of Chase Wealth Australia.
And I'm Michelle White, director of qualifications.
So today, ladies and gentlemen, our topic is do not wait. The time will never be just right.
And this is essentially a comment quote statement that we hear ongoingly from potential investors, friends and family, anyone that you talk to about property investing. And they've obviously got valid their own valid reasons as to why they don't believe now is the time, to invest in property, but the time will never be just right. So, Michelle, I know that, again, Michelle White is always the first, in line when it comes to client facing, and she is the one that, deals with the fears, the initial fears. And, you know, Australians, in general, their their limitations in knowledge when it comes to the right timelines. Michelle, do you want I guess, mindset set is the first thing that we should probably talk about.
Do you wanna take us through the general mindset that you find a lot of Australians are in when comes to the right time. Yes. Look, what I find is that everyone has that fear factor within them to take that first step. It's almost like look at a family that is preparing to have a baby. Mhmm.
When is the perfect time? Mhmm. When is there a period of time that's gonna work ideally for you? And the property market can work the same sort of way. So thinking, is there something in place that I wanna achieve before I invest?
Or do I want an extra stability in this area before I invest? Because the concept of investing might appear scary and unknown without the knowledge behind it. Mhmm. And for that reason, it's really just that fear that's making their mindset put it off Mhmm. As opposed to a reality of actually knuckling down and having a look at the situation and seeing that the sooner you get into it, the more time you give yourself to be able to grow from a from an investment point of view.
Yeah. And and I guess, Michelle, what are some of the, you know, little milestones that, you know, people set for themselves that they would rather they would rather get to first prior to investing. I can give you an example. One thing that I've heard is, look, I, want to get my, promotion at work. I wanna get my pay rise in my employment first, and that's not gonna take place till November this year.
I can come back then. That's something that, to their mindset is quite valid. Yes. So then, again, like you were saying, we sat on that bigger picture. Do you wanna give us on our in our listeners some examples of what you listen at what you hear day to day?
Yes. It could be something internally like a promotion, like, wanting to see what's happening in their own life with family. Mhmm. It could be something external. Mhmm.
They might want to set themselves a goal and say, well, once I've paid my home down by an extra 5 or 10,000, then I'll have a look at it without realizing, well, actually, an investment property could help you do that. Yeah. Or I wanna see what's gonna happen with the interest rates. Oh. I wanna see where the property market's gonna turn.
The interest rates. Okay. So this is a statement that I I found, is targets at us day in, day out. And one thing I wanna say in general to all of those Australians that are worried about interest rates. As economies rebound from recessions or downturns, property values tend to rise.
Due to the increased job opportunities and consumer confidence, this usually drives the demand for property leading to price appreciation. Fact. That in my 22 years of experience in property is something that I've seen time and time again. This is the time to invest. Don't wait for those rates to start coming down.
The only limit I see there is probably serviceability. Yes. That would stop someone. So if Chase Wealth Australia tell you, you do service financially to purchase an investment property, you service. Get it done.
Don't wait. Because then, I guess, numerically, is where we start to see the, the loss that our clients probably don't realise. So, Michelle, numerically, we know that there is an appreciation in property assets every year. Mhmm. Let's work off a lot of people work off 7%.
Okay. I'm funny about that because there's a lot of areas of Australia that are operating much higher than that, and there's some areas sitting at the 3%. But let's work off 7%. 7% on a $585,000 property. Okay?
What would our clients make in the 1st year based off that 40 Probably looking about yeah. 40 to 45,000. Grand. Okay. So let's say our clients say to you, okay, Michelle.
I don't wanna do it this year because the rate is sitting at 6.8%. I'd rather wait till next year. Take our listeners through over a period of, say, 10 years, how much our clients could use on that 7% increase. So I guess the easiest way to be able to analyze it is the fact that by pushing out your start time, you're actually reducing the amount of time that you have for that property to continue appreciating in value. So it's not the $40,000 at the beginning that they're missing out on.
It's what that property is going to be worth in 10 years time and the growth that it's going to receive at that point. Mhmm. So it's let's say that property has doubled in value from, we're saying, 585 to 1 mil, even. Yeah. Even a mil.
7% on a mille is the component that they're missing out on 10 years further down the line. So they're really kicking themselves in the foot by thinking, let's just push it out and push it out. Mhmm. Because the more time you have for that property to increase in value, the higher it's going to continue to grow. And that's one thing that that I want to articulate as well through this confessional is property is a long term Yeah.
Investment. A lot of people have seen that boom that's happened in Southeast Queensland, and properties increased by, you know, some of them upward of $200,000 in a couple of years. Yes. And that's all great. Love it.
But realistically, it is a long term investment, and that's why we urge a lot of our listeners and our viewers out there and those of you that are really wondering if you should do it now. If you serve us, do it now. Michelle, anything else? I guess, where I like your input is that first point of contact. So I've just told thousands of Australians out there to do it now.
There some of them are looking at us going, what do you know? You guys are in the property industry. You guys, you know, you know, you want us to come in. It's all about sales, sale, sell. Tell them the reality of why.
Apart from what I've just said with, you know, economies that that rebound from recession and that and and what's in it for them and numerically, Talk to them about reducing that fear, how we do that. So a lot of that fear comes from lack of knowledge or the unknown. Mhmm. Being able to go through that step by step with a client, breaking down what those fears really are. Because most of the time, the fear is not what they're actually saying that it is.
Them now. Tell them. Tell them, Michelle, what you would tell them if you're sitting in their in their living room having a cup of coffee with them. In all honesty, I would tell them that we've got you. By being able to analyze your situation, being able to know what your lifestyle is like, what your goals are like, what your fears are, we will be able to hold your hand and guide you through the process and provide you with the knowledge and the evidence and the facts and the figures to put your mind at ease.
And that that's the easiest way to be able to explain it. Yeah. Especially on general terms Yeah. In particular. Yeah.
No. Absolutely. Well, thank you. Anytime. Thanks, Mish.
I love having you as a guest. It's amazing because you tend to give insight to a lot of people that haven't taken that first step. Mhmm. And, and you're the one that's out there facing a lot of this. Like I've said before, by the time they come to me, it is just numbers.
Yes. I tend not to see the emotional side of it a little bit, but not as much as you would. So well done. Thank you. Anytime.
Well, thank you all for listening, and we look forward to seeing you on our next, episode. Take care. See you. Bye.