Our guest today: Andrew Mirams from Intuitive Finance.
Kevin: Let’s continue to have a look at what’s happening with the market in 2016 as we launch the shows for this year and we say a happy new year to Andrew Mirams from Intuitive Finance. Hi, Andrew.
Andrew: Thanks, Kevin. Happy new year to you and all the listeners.
Kevin: Have a nice Christmas?
Andrew: Yes, it was fantastic. Thank you.
Kevin: Good. Good on you, mate. Now, get that crystal ball out. I know you’ve been polishing it overnight for me. Let’s have a look at what you think is going to happen to the national market firstly, and then let’s have a look at maybe even Victoria.
Andrew: Yes, absolutely. I think with the changes late in 2015, and we saw probably a little bit of heat come out of the market, I think we’re still going to be in for a pretty good year in terms of our property market. Now, that’s going to be very segmented as we’ve seen already across 2015, and I think that will continue.
I guess the things that underlie that continue to be interest rates – and we saw late last year, the bank starting to put up some interest rates – consumer confidence, how well people think about themselves, and what their employment status is, and things like that.
Then, I guess, on a more macro thing, it’s the economy, things like that and then the economies within the economy, very state-based – like what’s happened in WA, South Australia – and the changing labor market probably is going to dictate a lot of things that will happen through 2016, I think.
Kevin: Yes, that was highlighted, wasn’t it, the two states? We spoke to Damian Collins just a few moments ago on the show about WA and how impacted that was in 2015. Do you think we’re likely to see an improvement in WA and in Queensland this year?
Andrew: I think that probably the continuation of the mining change and the employment factors and things like that is going to dictate their markets, as it will up and down the eastern seaboard. Melbourne and Sydney have enjoyed a couple of years of pretty good markets – obviously, Sydney has had a couple of great years.
Melbourne still appears to be really strong, and that’s underpinned by our population growth and employment, which still seems to be quite strong in our state. It seems to be similar in Sydney, and the markets seem to be still okay there. I think that probably Brisbane might be something where some money starts to go because people look at fundamentals and think based on a yield, it appears to be undervalued and there might be some opportunities in Brisbane in 2016.
Kevin: What advice would you have for someone wanting to start a portfolio this year?
Andrew: I think that the key is, Kevin – and will have all heard this all the time – “Is now the right time?” If you want to be a property investor and a successful property investor, it’s not a matter of timing in the market; it’s a matter of time in the market. That’s really the key.
You have to look at your fundamentals. You have to have a plan. You have to get your right people around you and set up with a proper strategy about what you’re going to buy, when, how soon, how many, and what your ability to do that is.
Trying to stock pick or market watch is just dangerous. It’s a bit of a folly, I think, and while some people, probably the [3:11 inaudible] ones, are the ones that fluke it and get it right at the outset, they become a little bit naïve.
But it’s really spending time in the market is the real key to anyone starting. Trying to stock pick where the markets are going to be and what they might do is too difficult; you’re better to get in. Property investment is a long-term strategy – as we all know – so the sooner you start, the better you’ll be off with those compounding effects.
Kevin: Indeed. Andrew Mirams from Intuitive Finance. You can catch up with Andrew and all of his thoughts, too, on our website, RealEstateTalk.com.au. Andrew has his own channel there, and a great website he has, too, Intuitive Finance.
Andrew, thanks for your time.
Andrew: My pleasure, Kevin. Thank you.