<\/p>\n
Again this week, we will back track and hear what some of our experts had to say at this time last year about what was ahead.\u00a0Chris Gray<\/strong> predicted that the major markets would continue to improve \u2013 correct \u2013 but was he surprised about what happened in Sydney?<\/p>\n Kevin:<\/b>\u00a0 As we seek the opinion of another one of our experts, Chris Gray from Empire buyer\u2019s agents.<\/p>\n Chris, thank you very much for your time. Just a reflection back: this time last year, we spoke, and I\u2019ll just play a very small portion of what you had to say then.<\/p>\n Chris:<\/b>\u00a0 It obviously depends where you are. There are lots of different property markets around Australia, but I think if you\u2019re in the main markets of Sydney, Melbourne, and Brisbane, then I think a lot of people are going to look back and say, \u201cThat was another great year. We maybe made 5% or 10% capital growth over the time.\u201d So we should be pretty happy.<\/p>\n Kevin:<\/b>\u00a0 Chris, I think you were pretty well spot on there. You highlighted the fact that Sydney and Melbourne were going to be two of the peak markets. Do you see that continuing this year?<\/p>\n Chris:<\/b>\u00a0 I think I do. It is a bit boring and it doesn\u2019t make a big media story and those sensationalizing headlines or anything like that. I guess most of your viewers know that my market is more the second-hand, inner-city, 5-to-15 K kind of market at the median price. I\u2019ve always generally thought it is pretty strong. A lot of the other research companies, especially people like Louis Christopher at SQM, think it\u2019s going to be a pretty good year again and thinking anywhere from 5%, 10%, or even 15% growth in some of those areas.<\/p>\n Kevin:<\/b>\u00a0 I know you say that you\u2019re a pretty boring type of investor. You\u2019ve said that to me on a couple of occasions. But it\u2019s held you in fairly good stead, hasn\u2019t it? That inner city ring and that median price range has always been pretty good for you, Chris.<\/p>\n Chris:<\/b>\u00a0 It\u2019s slow and steady wins the race in my book. It\u2019s quite often too simple for most clever people and so they don\u2019t actually follow through with things. There\u2019s actually a legal and accounting conference in Aspen and again, there are a lot of very senior people, a lot of well-paid people, and they always expect that things are going to be harder. There are lots of fund managers and people like that, trying to find the latest greatest, thing in the stock market.<\/p>\n But in the 22 to 23 years that I\u2019ve been investing, it\u2019s just basically finding something of good quality. You\u2019re not going to get it cheap. It\u2019s going to be fair priced. But just hold on and in the years, then the results follow.<\/p>\n Kevin:<\/b>\u00a0 Chris, you\u2019re in Aspen as you said, at an international conference. Are you getting much feedback about what\u2019s happening internationally with the number of changes around the world? What if any impact is there going to be on the Australian market?<\/p>\n Chris:<\/b>\u00a0 Obviously quite a few people have mentioned Trump over here, and even sitting on the ski lift you talk to the locals and they all have mixed opinions. There\u2019s obviously scaremongering going on. There are a lot of people who think that the world is still going to come to an end. But I think the main thing with property is unless interest rates really do <\/b>push up high very, very quickly, I think that for the main markets in Australia, it\u2019s still going to be pretty solid.<\/p>\n But saying that, there are some risky markets out there, and I think that there is some worry that people should be worried about, and a lot of that is the brand new properties, especially in Brisbane. A lot of people have been talking about all the cranes up there. To a lesser extent probably Melbourne and Sydney, as well.<\/p>\n The main thing is the people who buy those things quite often are speculators the, so they try and buy off the plan and try and make an instant profit with virtually no money down. And then you\u2019re getting all the foreigners. I think our Foreign Investment Review Board laws in Australia are pretty good, so foreigners can only buy brand new. Obviously, a lot of banks and APRA have cracked down on the lending to foreigners, and so a lot of people won\u2019t be able to settle on those brand new properties.<\/p>\n I think if anyone has to worry, that\u2019s where you need to worry in Australia in 2017.<\/p>\n Kevin:<\/b>\u00a0 Are you seeing some of that coming into effect right now in terms of what APRA has done and with some of that new product, as well?<\/p>\n Chris:<\/b>\u00a0 Even in the last 6 to 12 months, we have had clients where they\u2019d bought off the plan before [3:55 inaudible]<\/b> 6 or 12 months ago. And even the local agents up there, when the properties are settled, they say, \u201cLet\u2019s dump it now, because you might drop $30,000 or $40,000 now but if you hang onto it you might be dropping $50,000 or $100,000 later on.\u201d I think that has been good advice for those clients.<\/p>\n Now, I\u2019m not an advocate of selling, but if you listen to all the stories \u2013 and most people are pretty consistent on these kinds of things\u2026 The CBD markets have always been scary anyway because there\u2019s almost no limit to supply because you can keep building higher and higher towers and there\u2019s a limit of how many Australians actually want to live in a CBD. I think if you\u2019ve got into some of that stuff and are maybe looking at it and thinking maybe take your losses\u2026<\/p>\n But look, there are always exceptions to the rules. There are always people who will buy off the plan and they\u2019ll make a lot of money. There\u2019s never a \u201cone size fits all\u201d with any of this stuff.<\/p>\n Kevin:<\/b>\u00a0 Just before I let you get back to your conference or skiing or whatever it is you\u2019re doing there, Chris\u2026 Are you getting a chance to do any skiing by the way?<\/p>\n Chris:<\/b>\u00a0 I manage to get a few runs in during the day. The conference is in the evening. But the body is not the same as it was when I started investing back when I was 22.<\/p>\n Kevin:<\/b>\u00a0 Yes, we all know that feeling, Chris.<\/p>\n Chris, before I let you go, crystal ball for me: this time next year what do you think we\u2019re going to say about 2017?<\/p>\n Chris:<\/b>\u00a0 I think we\u2019re going to have exactly the same conversation. The people who have bought in Sydney, Melbourne, and a bit of the Brisbane in the second hand market, I think they\u2019re going to be pretty happy. Whether we get 5%, 10%, or 15%, who knows?<\/p>\n Perth is obviously a bit of a mixture. Obviously it\u2019s mainly around one industry sector, so I think that\u2019ll be a bit tougher. And then the rest of Australia, I\u2019ll leave to the local experts. But I think if you bought good-quality property for the median price so that lots of people couldn\u2019t afford to rent it or to buy it, I think you\u2019re in pretty solid ground.<\/p>\n I guess the only worry I have is the banks. I think the banks will still tighten lending criteria, which squeezes a lot of people. But as long as they\u2019re not doing anything too drastic, I think it will be a pretty happy year for a lot of people.<\/p>\n Kevin:\u00a0 <\/b>Chris, are you back on Sky again this year?<\/p>\n Chris:<\/b>\u00a0 Yes. We\u2019re back. The show actually started last week while I was [6:12 inaudible]<\/b> and I\u2019ll be missing next week\u2019s, but I\u2019m back on from I think about the third Monday in the month.<\/p>\n Kevin:<\/b>\u00a0 Beautiful. Always great talking to you, Chris.<\/p>\n Chris:<\/b>\u00a0 I think all the other guests will have the same feelings as me \u2013 that they\u2019re pretty positive, as well.<\/p>\n Kevin:<\/b>\u00a0 Always great talking to you. Thank you.<\/p>\n You can contact Chris. Your website, Chris, is YourEmpire.com.au.<\/p>\n Chris:<\/b>\u00a0 Wonderful. Thanks a lot.<\/p>\n Kevin:<\/b>\u00a0 Chris Gray has been my guest. Thanks, Chris. Talk to you again soon. Enjoy that skiing, mate.<\/p>\n Chris:<\/b>\u00a0 Will do.<\/p>\n","protected":false},"excerpt":{"rendered":" Again this week, we will back track and hear what some of our experts had to say at this time last year about what was ahead.\u00a0Chris Gray predicted that the major markets would continue to improve \u2013 correct \u2013 but was he surprised about…<\/p>\n","protected":false},"author":176692473,"featured_media":10320,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_wpcom_ai_launchpad_first_post":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[10,11,13,36,17,22,25,27],"tags":[101],"class_list":["post-25326","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-kevin-turner-sponsored-channels","category-kevin-update","category-latest-story","category-property-investment-topic","category-property-investment","category-research-topic","category-sponsored-channels","category-trends-topic","tag-podcast"],"yoast_head":"\n<\/h4>\n
Transcript:<\/strong><\/h4>\n