{"id":20663,"date":"2018-03-29T01:00:24","date_gmt":"2018-03-28T14:00:24","guid":{"rendered":"https:\/\/realestatetalk.com.au\/?p=20663"},"modified":"2018-03-29T01:00:24","modified_gmt":"2018-03-28T14:00:24","slug":"the-real-facts-about-the-market-michael-beresford","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/the-real-facts-about-the-market-michael-beresford\/","title":{"rendered":"The real facts about the market \u2013 Michael Beresford"},"content":{"rendered":"

We are seeing a lot of negative press at present. One of those is that the property values are going to collapse. Is there any foundation to that?\u00a0 Michael Beresford<\/strong> from Open Corp is an investor and has some strong views.
\nTranscript:<\/strong>
\nKevin:\u00a0\u00a0<\/strong>Recently I caught up with Michael Beresford from OpenCorp and had a good conversation with him. There\u2019s a video currently on the site, on RET, and we\u2019re sending it out as a special broadcast for you next week as well. So, tune into that.
\nIt\u2019s a video where I talk to Michael about lots of things, about whether or not the property market\u2019s going to collapse, how he\u2019d help a young couple maybe earning $100,000 and renting to get into their first property, what\u2019s the ideal path forward for those who wish to get on to the property ladder, and what are the telltale signs of a trustworthy operator in the field?
\nIt\u2019s about a 10- to -15-minute video, well worth watching. Here\u2019s a small portion taken from that where I talk to Michael about the current state of the market.
\nMichael, one of the things that I did want to ask you about is we\u2019re seeing a lot of negative press. One of those is that the property values are going to collapse. Is there any foundation to that?
\nMichael:\u00a0\u00a0<\/strong>Have you got two hours, Kevin? Look, being serious, I\u2019ll try and distill it down to a few key points for the listeners here today. The first is if we think about what drives price growth \u2013 and vice versa price collapses \u2013 in anything, it\u2019s the simple notion of supply and demand.
\nSo, there are definite steps that investors can be taking to mitigate those risks and maximize their chance of obtaining high-performance properties. The best way to do that is to invest in the major capital cities, because we have the most amount of people, the most amount of jobs, and the least amount of land supply.
\nWe have a bit of a saying here in the office that \u201cGet rich quick equals lose money fast.\u201d Properties in mining towns are a property example of that. Bitcoin is an example of that. I\u2019m amazed on a daily basis that people would be putting significant amounts of money into this hype-driven investment and following the pack when we have a proven performer here in property that they choose not to invest in.
\nAnd the only difference is that one can make you a return overnight but can lose you a lot of money in the process, and the other one just takes a bit of patience and focus over the long-term to be able to get results.
\nWith respect to the negative press in the articles, I\u2019d just encourage people to take everything with a grain of salt and understand the motivations of anyone they\u2019re obtaining information from. Whether it be a company like OpenCorp, whether it be the media, the newspaper, the nightly news, all of those media outlets are aiming to play to your emotions.
\nIt\u2019ll be boom one day, it\u2019ll be bust the next day. And to use a Sydney example, I read recently that the median house price has come down 0.5% and all the headlines are \u201cCrash, the boom is over, doom and gloom, property prices dropping,\u201d etc.
\nNow, if I said to you five years ago that you could invest in something that went up 79.5% in a five-year period, I\u2019m sure you\u2019d be pretty happy, right? It\u2019s gone up 80%, it comes back 0.5%, but that\u2019s what the media outlets talk about. It\u2019s heightened emotion through boom or bust.
\nThe property market, first of all, there\u2019s not one property market in Australia. The property market within capital cities is even different, far less the different property types and geographical locations. So, that\u2019s the first thing to remember: there\u2019s not one size fits all.
\nAnd really, the second part is that the fundamentals of property don\u2019t change overnight. The population growth data and the government strategy around jobs and so on does not change from 4:30 p.m. on a Tuesday to 10:00 a.m. on a Wednesday.
\nKevin:\u00a0\u00a0<\/strong>I want to pick up on that point you made about Bitcoin, because I think that highlights where a lot of investors go wrong, and that is that they look for this quick fix, this quick buck. And even the media play to this. When we talk about boom and bust, the point you made there about the Sydney market dropping 0.5% yet there\u2019s \u201cThe market is going to crash.\u201d
\nIt\u2019s almost as if we expect there to be a boom-and-bust market when the property market over the long term is really quite stable.
\nMichael:\u00a0\u00a0<\/strong>Yes, it is. And one of the things that I get very passionate about \u2013 so much so that in our presentations, I dedicate a good five-minute section to what we call white noise. And white noise are those distractions that can impact an investor\u2019s ability to achieve their goals over the long-term.
\nThe big one is social media as well. The way that I describe it to our clients and the people we talk to is that social media is opinion-based and it\u2019s instant, and those two things are the polar opposite to what it takes to be successful with this investment game.
\nYou need to have focus and you need to follow a process and you need to be patient. And remember that the reason why it can be a daunting process to undertake is because it\u2019s something different to what the majority of people are doing. There\u2019s not safety in numbers. Only 10% of Australians invest in property outside of their own home.
\nYes, it takes a bit of a thick skin, especially in the early days, but I\u2019ve read just a couple of days ago that Harry Dent \u2013 the U.S. demographer \u2013 is out in Australia. I was reading paragraph two of this article and I said, \u201cHarry Dent must be about to launch a new book,\u201d and she said, \u201cWhat do you mean?\u201d I said, \u201cWell, I\u2019m reading this crap about how Australia\u2019s property market is going to crash, and he only ever has something to say when he\u2019s promoting a new book.\u201d Lo and behold, in paragraph five, Harry Dent has got a new book.
\nSome people call that genius, but when you\u2019ve been doing this a while, you see the patterns and these things tend to unfold .But the reason why I get so passionate about it is that Harry Dent had a lot to say around the negativity and the potential market crash in the Australian market in 2012, and I\u2019m sure anyone who owns property in Sydney and\/or Melbourne since 2012 is glad they didn\u2019t listen to him.
\nYou\u2019re right; it is a long-term, stable beast underpinned by the supply-and-demand equation that is working in our favor and the government\u2019s commitment to population growth. Again it\u2019s not get rich quick, but I think we\u2019re in for a stable and high-performing ride over the medium- to long-term as always.
\nKevin:\u00a0\u00a0<\/strong>Those sorts of people are never held accountable for those claims. We very rarely go back and check on what Harry Dent said, and if we did, we\u2019d find that even though the fact they promote that he is a guru and he picks all these things, we\u2019d find that he doesn\u2019t really pick them at all. He might pick them in certain markets, but certainly not in our market.
\nAnyway, don\u2019t get me started on Harry Dent. It\u2019s not one of my favorite subjects.
\nMichael:\u00a0\u00a0<\/strong>You and me both.
\nKevin:\u00a0\u00a0<\/strong>Thank you very much for your time, and I look forward to catching up again soon.
\nMichael:\u00a0\u00a0<\/strong>Thanks, Kevin. Enjoyed the chat. Cheers.
\nKevin:\u00a0\u00a0<\/strong>That\u2019s just a small portion of the 10-to 15-minute video that you can see on the site now. Just go to RET and have a look for that special video. You\u2019ll find it on my channel, my chat with Michael Beresford from OpenCorp.<\/p>\n","protected":false},"excerpt":{"rendered":"

We are seeing a lot of negative press at present. One of those is that the property values are going to collapse. Is there any foundation to that?\u00a0 Michael Beresford from Open Corp is an investor and has some strong views. Transcript: Kevin:\u00a0\u00a0Recently I caught…<\/p>\n","protected":false},"author":176692471,"featured_media":20664,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[34,10,11,13,36,22,25],"tags":[101],"class_list":["post-20663","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance-topic","category-kevin-turner-sponsored-channels","category-kevin-update","category-latest-story","category-property-investment-topic","category-research-topic","category-sponsored-channels","tag-podcast"],"yoast_head":"\nThe real facts about the market \u2013 Michael Beresford - Realty Talk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/channels.realty.com.au\/realtytalk\/the-real-facts-about-the-market-michael-beresford\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The real facts about the market \u2013 Michael Beresford - Realty Talk\" \/>\n<meta property=\"og:description\" content=\"We are seeing a lot of negative press at present. 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