{"id":9430,"date":"2016-09-29T10:00:46","date_gmt":"2016-09-29T00:00:46","guid":{"rendered":"http:\/\/realestatetalk.com.au\/?p=9430"},"modified":"2016-09-29T10:00:46","modified_gmt":"2016-09-29T00:00:46","slug":"no-sign-of-a-crash-dr-shane-oliver-purple-bricks-turns-the-industry-red-with-rage","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/no-sign-of-a-crash-dr-shane-oliver-purple-bricks-turns-the-industry-red-with-rage\/","title":{"rendered":"\u201cNo sign of a crash\u201d \u2013 Dr Shane Oliver + Purple Bricks turns the industry red with rage"},"content":{"rendered":"

 
\nWe\u2019ve heard the dire warnings of a property market crash from the doomsayers, we\u2019ve heard that the Australian economy will take a big hit because of the downturn in mining and the effects of Brexit and financial crisis in Greece\u2026 but where do we actually stand? How is the Australian economy actually tracking? Dr Shane Oliver<\/strong>, Head of Investment Strategy and Economics, and Chief Economist at AMP Capital joins us to answer those questions.
\nWhile many Australians will sit on the sidelines waiting for someone to ring the bell heralding the property market has bottomed, savvy investors will be out looking for and buying investment opportunities created by the current buyers\u2019 market.\u00a0 While many unsuccessful property investors speculate emotionally, the successful investors use research and education to get their investments right.\u00a0Michael Yardney<\/strong><\/a> gives us some of the time tested rules these successful investors use to make their fortunes.
\nRarely do I see a startup company ruffle as many feathers in the real estate industry like Purple Bricks has in the last few weeks. Purple Bricks, if you have missed all the hype, is a UK based company that claims to be a full service agency offering to sell property for owners for as little as $4,500 but, as you will hear, that is a bit misleading. We caught up with that company\u2019s CEO when he was in Australia. For the first time in the 10 years or so that I have been doing this show, I make a comment about Purple Bricks after I speak with Michael Bruce<\/strong> in the show this week.
\nThis week, my feature guest is Miriam Sandkuhler<\/strong> from Property Mavens. With a background in the financial services industry, Miriam was interested in property from a young age. Starting at 23, she began building her own portfolio, but some misguided \u2018advice\u2019 from selling agents led to some very costly mistakes and this experience contributed to her becoming passionate about the advocacy side of the property industry, and ultimately led to her starting Property Mavens. I discuss that journey with Miriam.
\nIn an Australian first, a tiny home project has been approved for disadvantaged and the homeless in NSW. CEO and Co-Founder of The Tiny Homes Foundation, David Wooldridge<\/strong> joins me to discuss the initiative.
\nYou will find us at iTunes under podcasts as Real Estate Talk. Listen there for free, leave a review which helps us grow and tells us what you like and how we can improve the show. Don\u2019t forget to subscribe at the site as well \u2013even if you do get the show through iTunes – so that we can tell you about the bonus offers we make to subscribers. Your questions are welcome through the site as well.
\n <\/p>\n

Transcripts:<\/strong><\/h4>\n

Purple Bricks turns the industry red – Michael Bruce<\/h2>\n

Kevin:\u00a0\u00a0<\/b>Purplebricks, the UK-based online real estate agent that charges homeowners a flat fee to sell their property, is promising to shake the local market and save Aussies nearly $6 billion in commissions. There has been a lot of news and a lot of talk about this in the last week or so.
\nPurplebricks, of course, has launched. They launched in the UK in 2014, where they charge homeowners a flat fee \u2013 as I said \u2013 of $4500, including marketing costs, to sell their homes. Joining me to get a bit more detail on this, the CEO and co-founder, Michael Bruce, for Purplebricks.
\nMichael, thank you for your time.
\nMichael:<\/b>\u00a0 It\u2019s my absolute pleasure. Thanks for having me on.
\nKevin:<\/b>\u00a0\u00a0That\u2019s okay. The Purplebricks concept has been very successful in the UK, as I said. But attempts in Australia to run a similar concept in the past haven\u2019t really worked. Why do you think this is going to work as opposed to others? What\u2019s so different about Purplebricks?
\nMichael:\u00a0<\/b>\u00a0I think what\u2019s absolutely clear is that people have tried to do things along the journey, but they haven\u2019t done anything like Purplebricks.
\nWhat Purplebricks does is it takes great local property experts, licensed real estate agents, and gives them the tools in order to provide a first-class service for customers. They give them technology. We\u2019ve spent nearly five years now perfecting that technology, that makes them much more productive, so they can spend more time with homeowners, chatting to them in living rooms, helping and supporting them through each settlement.
\nAt the same time, it gives the homeowner a much better experience, much more transparent experience, because they\u2019re able to interact with the market. They\u2019re able to see everything that\u2019s happening 24 hours a day. They\u2019re able to get to know who\u2019s arranging viewings, what their feedback is, and when offers are coming in, the second an offer is made, it\u2019s instantly with them.
\nIn terms of all the things that traditionally, the perception of the industry has been it\u2019s not quite as transparent, not as much communication, etc. With Purplebricks, what we\u2019ve tried to do, and the reason why we\u2019ve been successful, is because we\u2019ve built a model that encapsulates all of those things and delivers them back to the homeowner but for a fraction of the cost that they would pay a traditional real estate agent.
\nKevin:<\/b>\u00a0 Of course, the Internet\u2019s made everything much more transparent \u2013 a lot more information for consumers. I\u2019d challenge you on the point there about transparency. I think one of the things that we have seen in the industry is a lot more transparency over the years. No one denies that\u2019s a good thing for consumers. But I just wonder if we\u2019re discounting, here, the amount of work that goes into selling a property.
\nYou\u2019re asking here for consumers to take a big lot of that load on. In the past, we\u2019ve seen private sale, for sale by owner, a lot of those people actually go back to a traditional agent because they simply can\u2019t handle what needs to be done.
\nMichael:\u00a0<\/b>\u00a0I don\u2019t disagree; I think you\u2019re absolutely right. The only difference is that doesn\u2019t apply to Purplebricks. When you talk about in the past, those for-sale-by-owner type propositions, they haven\u2019t worked. They didn\u2019t work in the UK. They\u2019ve been around for eight to ten years. There\u2019s only a particular type of homeowner who\u2019s willing to participate in that type of service. And they haven\u2019t seen any material growth in the UK, unlike Purplebricks.
\nPurplebricks has grown massively over the last two years because it does everything that a real estate agent does. It provides you with the whole support, the whole process, right through to settlement.
\nWhat we have to be really clear on is that the process of selling a property is the same anywhere in the world. It\u2019s about getting a property onto the market. It\u2019s about presenting it in the best possible way. It\u2019s about making sure that you market it in order to engage as many people as you possibly can so that market forces does its work alongside the agent to help support that customers get the best possible price. Then once you get the best possible price, it\u2019s about supporting them through to settlement.
\nWhat we\u2019re doing is all of those things, but what we are doing is cutting out stuff that is ineffective, that doesn\u2019t help and support customers achieve those objectives. Our customers end up getting a light-bulb moment. They get a moment whereby they say, \u201cI\u2019ll get a full real estate service, a meta local property expert, a licensed real estate agent, who\u2019s promised a particular type of service, who\u2019s delivered on that service, got me the best possible price, sold my house, and assisted me through to sale.\u201d
\nThat is just fact of what real estate agents do, and that\u2019s just fact of why Purplebricks is so successful, because we do all of those things.
\nKevin:<\/b>\u00a0 Which parts will you actually be cutting out, Michael? You said there\u2019d be some parts that you\u2019ll cut out that\u2019ll be irrelevant, that\u2019ll cut back on the cost. What are those things that\u2019ll be cut out of the process?
\nMichael: \u00a0<\/b>In terms of the process, the process will be exactly the same, but it will be different in the sense that it will be instant, convenient, and transparent. For instance, it\u2019s not a matter of people trying to engage with real estate agents during office hours.
\nI understand that here in Australia, people put their mobile numbers in and things like that so that they can communicate more after hours \u2013 and that\u2019s fair and that\u2019s good \u2013 but reality is with Purplebricks, people can arrange a viewing at any time 24\/7 instantly.
\nThey\u2019re instantly requested you for feedback, chased for feedback. The second they provide that feedback, it\u2019s instantly with the seller. The second that an offer is made, that\u2019s instantly with the seller. The seller can see the offer, they can see the nature of the offer, they can see who\u2019s made the offer, and the position the person\u2019s in.
\nThey can go through the whole auction process at whatever time of day or night. They can get access to information about their marketing. They can contact and speak to someone 24 hours a day, so if they have an issue, then that issue can be quickly resolved. They get a local expert who helps them through to settlement.
\nThey\u2019re getting absolutely everything; nothing\u2019s cut out. But what we\u2019re doing is taking technology and people and delivering in a better way.
\nKevin:<\/b>\u00a0 I understand that. Michael, in terms of the local experts, you say these are licensed agents. What will be their role in that? Will they assist with negotiations? Will they assist with open homes or anything like that? Or do they very much just take a\u2026?
\nMichael:<\/b>\u00a0 They will assist with all of those things. They\u2019ll be the first port of call in terms of undertaking the appraisal. They will then undertake all the process of getting and supporting the customer onto the market. They will, if the customer so chooses, take all the viewings for the customer. They will, if the customer so wishes, negotiate with all of the offers, and they will be heavily involved in assisting and supporting the customer through the whole journey.
\nKevin:<\/b>\u00a0 Is all that done for the flat fee of $4500, or are there add-ons there dependent on what the consumer would want the agent to do?
\nMichael:<\/b>\u00a0 The only additional add-ons that we have are if you want us to undertake the viewings for you. There\u2019s an additional fee of $385. That covers you for every viewing, no matter how many there are.
\nThe reason why we offer choice for consumers in this respect is because of the thousands of homeowners we spoke to across Australia, the majority said they felt they were better equipped to do the viewings themselves. And 79.7% of people said that if they could undertake the viewing and save some money, they\u2019d like to do that. What we do is give choice: the 80% who want to save money great, and for the 20% who want to have the comfort of having that support, we\u2019ll provide that as well.
\nIn relation to negotiating offers, and all of those things, that\u2019s all part of the service. There\u2019s no additional fee there.
\nThe only other additional fee is if you want to undertake an auction, then it\u2019d be $850, but that would include the auctioneer and all of the viewing service covered, all of the open houses, everything like that. If a customer takes any of those options, they can have as many viewings as they wish, they can have as many open houses that they desire.
\nKevin:<\/b>\u00a0 Of course, I do understand what you\u2019re saying, and I can see there\u2019s a need for a model like this. The only question I would ask is the quality of the agents. I would question why good agents would be attracted to your model and have to work as hard as what you\u2019re saying to earn about one-third of what they would earn ordinarily. Isn\u2019t that then going to impact the quality of the agents you attract as these local experts?
\nMichael:\u00a0<\/b>\u00a0I\u2019ve been involved heavily in the training of these people over the last few weeks, and I have to say the quality of the people has been great. I take your point of what you say, but the reality is these people will not be earning less. These people will be earning as much, if not more, than what they would otherwise earn. They\u2019ll be far more productive.
\nWhat we do is give them the opportunity to run their own business. We don\u2019t charge them like a franchise. We give them advertising and marketing on a scale never before seen in the industry. We give them technology that makes them more productive and ensures that the promises they make their customers, they know can be delivered.
\nAnd we\u2019re saving people loads of money, so in reality, it\u2019s easy to take a look at the quality of our local experts and say, \u201cWell, they\u2019re not earning $1 million dollars\u201d, but that\u2019s a very small fraction of the market who earn that amount of money.
\nKevin:<\/b>\u00a0\u00a0Of course.
\nMichael:<\/b>\u00a0 They will be certainly earning as much, if not considerably more, in relation to others in the market, who are providing a great service for customers on a day-by-day basis.
\nKevin:\u00a0<\/b>\u00a0How does Purplebricks make money out of the transaction? Do you get a portion of that $4500 flat fee?
\nMichael:<\/b>\u00a0 Absolutely. The real estate agent will receive a proportion of the fee, and Purplebricks will receive a proportion of the fee. Obviously, we will earn revenue off other things, such as mortgages, etc., and other things that we can offer services to customers if they decide they want those.
\nKevin:<\/b>\u00a0 There you go. So, there\u2019s an insight as to how it\u2019s going to work.
\nMichael, I want to thank you very much for giving us your time, and we\u2019ll watch with interest how Purplebricks develops in Australia. Thanks very much for your time.
\nMichael:<\/b>\u00a0 It\u2019s my pleasure. Thanks for having me
\n <\/p>\n

“No signs of a crash” – Dr Shane Oliver<\/h2>\n

Kevin:\u00a0 <\/b>We hear different reports all the time \u2013 don\u2019t we \u2013 about how the property market\u2019s going. Especially after the mining downturn, we have doomsayers saying it\u2019s going to crash; others say it\u2019s not in such a bad state. A man we like to talk to all the time is Dr. Shane Oliver, who is the Head of Investment Strategy and Economics and Chief Economist at AMP Capital. He joins us.
\nDoctor, thank you very much for your time.
\nDr. Oliver:\u00a0 <\/b>My pleasure, Kevin. It\u2019s great to be here.
\nKevin:\u00a0 <\/b>We\u2019ve heard those dire warnings about the market crashing, haven\u2019t we? I\u2019d be interested to get your insight as to how the Australian economy is actually going right now.
\nDr. Oliver:\u00a0 <\/b>Yes, you\u2019re right. We often hear these calls of some sort of property crash, and certainly, even an economic recession. In fact, these calls have been quite common ever since the mining boom ended about four or five years ago.
\nOf course, you can go back over a decade or so through which people have been talking about some sort of property crash, whereas at the end of the day, the market remains reasonably resilient. We occasionally get these corrections, but certainly not the crash that people have been talking about. Part of that, I guess, is because the economy has been reasonably solid.
\nI think if you\u2019re looking for a property crash, you really have to have some sort of collapse in the economy causing a big rise in unemployment such that people can\u2019t service their mortgages anymore, whereas the reality is the Australian economy has help up reasonably well over the last few years, despite the end of the mining boom.
\nUnemployment has gone higher, but it\u2019s not disastrous, and that sort of rebalancing of the economy we\u2019re seeing \u2013 mining has slowed down but other parts of the economy have picked up \u2013 has, I think, helped support household incomes, and consequently, we haven\u2019t see anything close to a property crash. In fact, the property market has remained relatively resilient.
\nKevin:\u00a0 <\/b>Are there any signs on the horizon that we could be in for tougher times?
\nDr. Oliver:\u00a0 <\/b>I think there are some signs on the horizon; you might call them clouds on the horizon. The biggest problem, I guess, is that we\u2019re seeing a lot of cranes around, across many Australian cities, in fact. After many, many years of not building enough residential property, we have seen over the last few years a big spurt in the supply of apartments hitting the market, which is probably a good thing.
\nIf we want more affordable property in Australia over a long period of time, we probably need to see more dwellings hitting the market, but there\u2019s always a danger that that property, all those apartments, will hit the market all at one time, causing a bit of indigestion.
\nI suspect we could go through a patch of softness in terms of unit prices or apartment prices, particularly in the major capital cities. So Brisbane, Sydney, Melbourne and Perth I think could be at risk of a bit of weakness on that front. But in terms of regular homes \u2013 standalone dwellings that most Australians aspire to \u2013 there\u2019s certainly not an oversupply problem. If anything, there\u2019s still an undersupply; we\u2019re still not building enough of those.
\nMy feeling is, yes, at some point in the next few years when interest rates eventually start to rise \u2013 it looks like being a fair way away; it could be 2018 perhaps \u2013 then we could go through a bit of a correction in home prices. But I think that would probably be concentrated in Sydney and Melbourne, because Sydney and Melbourne have had a very strong growth in property prices over the last four years, so they would probably be more vulnerable.
\nBut other cities, particularly Brisbane, haven\u2019t seen anywhere near the gains that Sydney and Melbourne have, so therefore, I think any decline in standalone home prices in Brisbane would be very modest if it were to occur.
\nBut really, to get to that point, you have to see higher interest rates, and we\u2019re not anywhere near that at the moment.
\nKevin:\u00a0 <\/b>Yes, the RBA we hear all the time are really focusing very much on facing some of the issues that face us as a country, and they try to protect the Australian public from financial pain. How do they go about that, and what are some of the issues they\u2019re watching?
\nDr. Oliver: \u00a0<\/b>The Reserve Bank does have a difficult task, because you\u2019re balancing across a whole bunch of competing interests, and I think that\u2019s one of the biggest issues. You can make an argument, for example, that interest rates in Australia at the moment are set too low for Sydney and Melbourne, because those two cities have seen strong economic growth and very strong house price gains, but the Reserve Bank, of course, has to set interest rates for the average of Australia, and all the other capital cities have been seeing a far more modest growth in house prices, and some of them \u2013 Perth and Darwin \u2013 have seen house prices falling, which is actually an argument for lower interest rates.
\nThe Reserve Bank has to balance this out and, of course, set interest rates for the average, and that\u2019s what they\u2019ve been doing. It\u2019s why we\u2019ve been seeing interest rates come down as the mining boom has come to an end.
\nNow, of course, they do need to manage things getting too hot in Sydney and Melbourne. They\u2019ve been trying to do that by relying on APRA. APRA is the regulator of the banks, the Australian Prudential Regulation Authority, and it has introduced measures, particularly last year, to try to slow down lending to investors.
\nThat was on the back of concerns on the part of the Reserve Bank that investment activity in some of our cities was getting too hot and needed to be slowed down, and of course, we have seen that happen. The banks have slowed their lending to investors and have also tightened their lending standards in terms of how much you can borrow against the value of the house or relative to your income.
\nI think some things have been done to cool it down a little bit, but the Reserve Bank does face a difficult balancing act, and at the end of the day, people might have different views on what the Reserve Bank is doing, but at the end of the day, they do have to manage interest rates for the average of Australia. They can\u2019t just do it for one city or one part of the country.
\nDr. Oliver:\u00a0 <\/b>I\u2019m talking to Dr. Shane Oliver from ANP Capital.
\nDoctor, in terms of growth and the state of our academy, how do we compare with other developed countries?
\nKevin:\u00a0 <\/b>That\u2019s a very important question, because we in Australia are often inclined to get a bit gloomy about things. A lot of the commentary out there seems to be gloomy. Some statistics come out, you can always find something wrong with them, and that, I think, sometimes leads to this sense, the impression that Australia is in a constant state of crisis, whereas the reality is that our economic growth rates on the most recent numbers has been 3.1%, which is bang in line with the 100-year average.
\nThat\u2019s what it\u2019s been averaging over many years \u2013 hundreds of years \u2013 and it\u2019s also far stronger than virtually all other developed countries. Of course, an emerging country like China or India will report a stronger growth rate. I think in China it\u2019s over 6%, in India it\u2019s over 7%, but they\u2019re starting from a very low base, so we shouldn\u2019t really compare ourselves to them; we should compare ourselves to the US. Most recently in the US, economic growth has been just 1.2%.
\nIn Europe, it\u2019s about 1.5%, and in Japan, it\u2019s around 0.5%, so in the great scheme of things, we\u2019re actually doing pretty well, despite the impression some might get that things are pretty gloomy. The reality is that the Australian economy has done very well, and I suspect it will continue to do so.
\nKevin:\u00a0 <\/b>Thank you very much for your time and for that insight into what\u2019s happening in Australia, Dr. Shane Oliver, I appreciate it. Thank you very much, Doctor.
\nDr. Oliver:\u00a0 <\/b>It\u2019s been my pleasure. Thanks for having me on the program.
\n <\/p>\n

Time tested rules for investing – Michael Yardney<\/h2>\n

Kevin:\u00a0 <\/b>In any market, there are always great opportunities. Many unsuccessful property investors speculate emotionally, and we\u2019ve talked about that on the show before, but the successful, strategic investors use research and education to get their investments right.
\nNow, I did say at the outset that in any market, you can always make money, but there are some rules for successful property investing. We\u2019re going to run through them with you now, along with Michael Yardney from Metropole Property Strategists.
\nHi, Michael.
\nMichael:\u00a0 <\/b>Hello, Kevin.
\nKevin:\u00a0 <\/b>I know there are ten simple rules that you\u2019ve documented for us today. Let\u2019s go through them. The first one you say is they invest, they don\u2019t speculate, which I touched on there in the introduction.
\nMichael:\u00a0 <\/b>Yes, you did. So rather than buying emotionally, like you said, or saying \u201cThat\u2019s going to happen, because that area hasn\u2019t grown for a long time; it\u2019s about to,\u201d or buying emotionally like where they want a holiday or where they want to retire, smart investors do it differently. They make educated investment decisions based on research, buying a property below its intrinsic value, one in an area where the demographics are going to drive capital growth, and where there are other growth drivers, as well.
\nKevin:\u00a0 <\/b>You say in number two that it\u2019s about the property, not so much about the attack strategy, Michael.
\nMichael:\u00a0 <\/b>That\u2019s right. A lot of people get caught up with \u201cI\u2019m going to get some depreciation, or I\u2019m going to get a rental guarantee or tax benefits or negative gearing,\u201d but at the end of the financial year, you always hear people coming quickly to us and saying \u201cI have to buy property before the end of the financial year, because I need some negative gearing.\u201d No, Kevin, it\u2019s about property; you\u2019re right.
\nKevin:\u00a0 <\/b>Number three is it\u2019s all about high-growth, low-yield investment.
\nMichael:\u00a0 <\/b>In my mind, residential real estate is a high-growth, relatively low-yield investment. I know there\u2019s an argument for cash flow, and we\u2019ve discussed this before, but in my mind, savvy investors know that the fastest way to build a substantial property portfolio is through the capital growth rather than through a couple of dollars a week cash flow.
\nKevin:\u00a0 <\/b>Land appreciates.
\nMichael:\u00a0 <\/b>Yes, that\u2019s right. That\u2019s one of the rules successful investors use. They know that the majority of the heavy lifting for the property investment is going to be the location. 80% will be the location, maybe 20% or 25% will be the property itself within that location. But not all land appreciates equally, so they also recognize that they want to buy land in the right areas, areas where there\u2019s strong demand and minimal supply.
\nEven if it\u2019s just an eighth of a block of land under a block of apartments, they recognize that they just need a high land-to asset-ratio, rather than in the regional areas where the land component, while it could be physically big, money-wise, financially it\u2019s not that big of a proportion of their investment.
\nKevin:\u00a0 <\/b>And in tandem with that, number five, you say \u2013 and you just touched on that \u2013 is about strong demand. They buy properties that will be in continuous strong demand.
\nMichael:\u00a0 <\/b>Certain properties and certain locations are going to be preferred as we move forward, and so not every property is what I call investment-grade. You can always make it an investment; all you do is you kick the landlord, the owner out and put a tenant in, but that doesn\u2019t make it investment grade.
\nYou want one that\u2019s going to be in strong demand, in my mind by owner-occupiers, because they\u2019re the ones who will push up property values around it, and also you want the sort of property that tenants are going to want to live in so that your vacancies are short.
\nKevin:\u00a0 <\/b>Yes, and that probably takes us into point number six \u2013 doesn\u2019t it \u2013 about the demographics.
\nMichael:\u00a0 <\/b>That\u2019s right. In my mind, it\u2019s the long term demographic trends \u2013 how people want to live, where people want to live \u2013 that are going to determine the type of property that will be in demand in the future. As our cities mature and as we have an older population and more one-and two-people households, I think secure, medium-density apartments and townhouses will become more of a preferred style of accommodation, as many of us swap our back yards for balconies.
\nKevin:\u00a0 <\/b>Number seven is one that I\u2019ve seen you demonstrate so well over the years, Michael \u2013 I\u2019ve known you for a number of years now \u2013 and that is the team that you build up around you.
\nMichael:\u00a0 <\/b>We\u2019re talking about the ten rules of successful property investment, and one of them is that you do need to be part of a team. You have heard me say before that if you\u2019re the smartest person in your team, you\u2019re in trouble.
\nSuccessful investors surround themselves with a good team, but they also know how to discern an advisor who\u2019s independent from a salesperson, where sometimes you get caught out thinking this person\u2019s working for you when in fact, they\u2019re not.
\nKevin:\u00a0 <\/b>Risk and reward, Michael?
\nMichael:\u00a0 <\/b>Successful investors understand where the risk lies. There are some risks you can protect yourself against, and there are others that are out of your control. We really can\u2019t control the market, we can\u2019t control the political system, we can\u2019t control whether the government is going to change negative gearing rule or superannuation, but you can be prepared for things like that by having financial buffers in place and by owning the right properties.
\nOne of the biggest risks smart investors recognize is it actually lies within themselves: the way they think, maybe what they choose not to do by procrastinating \u2013 they know that\u2019s a mistake. So risk is external and also internal, Kevin.
\nKevin:\u00a0 <\/b>And the final one \u2013 and you and I have talked about this on many occasions; it\u2019s a subject we can divide an entire interview to \u2013 is that the property market definitely moves in cycles.
\nMichael:\u00a0 <\/b>That\u2019s right, and so do investor emotions. During a boom, everyone is optimistic and expects the good times to last forever, just as we lose our confidence during a downturn. Of course, the truth is that property markets do behave cyclically, and each boom sets itself up for the next downturn \u2013 and they\u2019re the sort of conditions we\u2019re heading into currently \u2013 but similarly, each downturn paves the way for the next boom.
\nI think one really just has to make the most of the opportunities and recognize that every year, something going to come out of the blue despite all your best homework, all your best research. There will be an X factor, sometimes on the upside \u2013 like this continuing lower interest rate environment and the long cycle we\u2019re in \u2013 or sometimes on the downside like some of the economic, political, and finance changes that are affecting us, as well.
\nKevin:\u00a0 <\/b>Indeed. Michael, thank you so much for your time, great talking to you. We\u2019ll catch you again next week.
\nMichael:\u00a0 <\/b>Thanks, Kevin.
\n <\/p>\n

Recovering from misguided advice – Miriam Sandkuhler<\/h2>\n

Kevin:<\/b>\u00a0 We\u2019re going to go on a bit of a personal journey with my next guest and talk about her experiences with property because we learn so much from doing that, but as well as that, what Miriam Sandkuhler from Property Mavens has learned along the way from working with the number of people she works with.
\nMiriam, welcome to the show. Thank you for your time.
\nMiriam:<\/b>\u00a0 Hi Kevin. You\u2019re very welcome. Thanks for having me
\nKevin:<\/b>\u00a0 Let\u2019s talk about you and your personal journey. When did property become such an important thing to you?
\nMiriam:<\/b>\u00a0 For me, it would have been about 26 years ago.
\nKevin:<\/b>\u00a0 Come on, you\u2019re not even that old.
\nMiriam:<\/b>\u00a0 Thank you. I was quite young and actually looking to purchase my first property. I was really venturing into a marketplace where I had no mentors or advisors on whom I could lean to help me go through that process. As such, I learned some really tough life lessons along the way.
\nKevin:<\/b>\u00a0 Was it because there weren\u2019t many mentors around in those days?
\nMiriam:<\/b>\u00a0 Absolutely. Buyer advocacy didn\u2019t exist as a service to protect and educate the buyer. The market for decades \u2013 as we know \u2013 has been run by real estate agents, where they\u2019ve educated consumers how to buy the property that they want to sell them in the way they want them to buy it. So it\u2019s been heavily influenced by one side of the camp.
\nBack then, there was certainly no one representing the buyer who was in a position to advise me, and I didn\u2019t have a family background where I could fall back on anyone there, either.
\nKevin:<\/b>\u00a0 Yes. Well, that changed, didn\u2019t it, about 15 or 20 odd years ago when the Internet came along? That changed everything.
\nMiriam:<\/b>\u00a0 Yes, definitely. And certainly more so in the last probably five to eight years in particular with buyer advocacy around the country. That\u2019s been a bit of a slow, steady increase, but more and more, there are more licensed agents out there. And there are also people who are unlicensed and are probably operating illegally doing it, as well, so you have to be very careful who you engage. But yes, they\u2019re slowly leveling the playing field.
\nKevin:\u00a0 <\/b>Yes, we\u2019ll talk about that in our chat, as well. Tell me about your first purchase. Where was that and how successful was it?
\nMiriam:<\/b>\u00a0 My first purchase was in St. Kilda. I bought a little one bedroom apartment off Grey Street, which was a bit of a seedy area at the time, and it was in a company share structure. Back then, I was quite fortunate; I had a fairly substantial deposit and getting some finance wasn\u2019t an issue for me for that particular property type, whereas nowadays, people would have much more of a challenge.
\nAt the time, I was tossing up between a house that needed some renovation in Port Melbourne on a decent chunk of land or a little apartment that was freshly refurbished but in the heart of St. Kilda. I went with the apartment, not understanding the concept of land value, and that was my first investment.
\nKevin:<\/b>\u00a0 That property type in a company like, it probably would have looked very attractive because of the price, as well.
\nMiriam:<\/b>\u00a0 The price back then, we\u2019re talking $112,000 for the apartment and what would have roughly been $130,000 for the house in Port Melbourne. The apartment nowadays with the oversupply that\u2019s happened in St. Kilda would have dropped back in price, I\u2019d roughly say, to maybe the $500,000 mark, whereas the house in Port Melbourne would easily be around that $900,000 to $1 million mark.
\nAgain, it was just not understanding the dynamics of what to look for when investing, and I was a bit scared. I didn\u2019t like the idea of taking on a renovation. I knew nothing about it. So I went for the easy option.
\nKevin:<\/b>\u00a0 And do you still own that property, the one in St. Kilda?
\nMiriam:<\/b>\u00a0 No. I managed to get rid of that a couple of years later. I used that money to invest in what I would call an investment-grade property in West St. Kilda, and then one of the biggest mistakes I made later on is I took some free advice from a friend of mine who was a selling agent who instead of convincing me to keep it because it was a good asset and I should have bought my ex-partner out, he convinced me to sell it and he was going to put me in something better, which of course didn\u2019t transpire. And here I am today talking to you professionally as a buyer\u2019s agent.
\nKevin:<\/b>\u00a0 That\u2019s the value of free advice, isn\u2019t it?
\nMiriam:<\/b>\u00a0 Yes. You make big mistakes. I had a couple of goes at it, again taking the wrong advice from the wrong people who had their own vested interests. That\u2019s probably one of the toughest lessons: free advice often isn\u2019t good advice and it is biased, and you ultimately do pay a price down the track, and in my case, poor asset performance or buying the right property but then under poor advice, selling it.
\nKevin:<\/b>\u00a0 Of course, you learn those lessons along the way. That sale that you were talked into there, is that what prompted you to start Property Mavens?
\nMiriam:<\/b>\u00a0 Yes, it wasn\u2019t actually long after that. Probably maybe five years later, I ended up getting into real estate sales. I had a financial services background, so I sold what was called managed investment real estate.
\nThen from there I got into buyer advocacy and actually working for the consumer, because I learnt very quickly that the nature of what I was selling didn\u2019t perform like all the marketing materials and product disclosure statements suggested. I did more research and got a better understanding of the dynamics and the fundamentals of what enables property to grow in value and what differentiates them.
\nThen a few years later, I set up my own business \u2013 Property Mavens \u2013 and then not long after that wrote my bestselling book Property Prosperity<\/i> as a way to educate consumers on how to go about buying property and what to look for, what to be wary of, the questions to ask, who to trust, who to maybe not trust, and how to go about investing safely and strategically.
\nKevin:<\/b>\u00a0 The book Property Prosperity,<\/i> have you been tempted to write a second one or an update of that one?
\nMiriam:<\/b> Funny you should say that; I\u2019m actually looking at doing that right now as we speak. I\u2019m in the process of mapping out \u2013 taking some specific content out of that and expanding it. Whereas Property Prosperity<\/i> was designed really to help people safely and strategically buy property, this next book will be drilling down to some of the more DIY details of how to actually go about aspects of it.
\nKevin:<\/b>\u00a0 So you\u2019re taking it to another level in that case?
\nMiriam:<\/b>\u00a0 Yes, definitely.
\nKevin:<\/b>\u00a0 Tell me about Property Mavens. Who is your ideal client?
\nMiriam:<\/b>\u00a0 Generally, I\u2019m working with people between 35 and 50. They often want to invest. It might be their first investment property, or it might be their second or third. Often I\u2019ll have financial planners and accountants refer their clients to me for self-managed super fund investing, which is far more complex investing in property in a super fund than outside of it. And they have anything from budgets between $500,000 and $1.5 million.
\nI\u2019ll sit down with them and help them develop investment strategies, and then I\u2019ll go into the marketplace and source and negotiate on that property for them.
\nKevin:<\/b>\u00a0 What\u2019s the most common question they ask you when they first come to you?
\nMiriam:<\/b>\u00a0 It\u2019s not so much a question; it\u2019s really the position that they\u2019re in. They don\u2019t know what to buy, where to buy it, or how to go about it. There\u2019s so much conflicting information in the marketplace, and it\u2019s conflicting because people have their own agendas as to what they\u2019re trying to sell. People are selling strategies, and often those strategies lead to a product or a property that they\u2019re trying to sell you as part of that particular strategy.
\nIt\u2019s generally confusion, and they need help and they need someone who knows what they\u2019re doing and understands growth drivers and understands research and negotiation and pricing, because underquoting is still a big problem in Victoria. That\u2019s where they\u2019re seeking my assistance and I\u2019m able to go out and get them investment-grade property.
\nKevin:<\/b>\u00a0 What\u2019s the most common mistake you see investors make?
\nMiriam:<\/b>\u00a0 Definitely, I think the free advice thing. They attend seminars, they go to coaching organizations or investment clubs and they become part of a group, and there\u2019s a bit of a \u201cLet\u2019s all do this together\u201d motivational component to it and they get sucked down that rabbit hole. But inevitably they\u2019re educated to often buy the property that those real estate agents or property spruikers or developers actually want to sell them.
\nAgain, it\u2019s the free advice and not understanding that it\u2019s biased. It can often be detrimental if they don\u2019t get independent advice or do their own independent research.
\nKevin:<\/b>\u00a0 What sort of mentors should people be looking for, and when should the alarm bells go off?
\nMiriam:<\/b>\u00a0 I think they should be wary from the beginning. They always want to get their own independent solicitors to look over contracts. They always want to get advice from their accountant or their financial planner first around structuring and what entity you buy it in.
\nThere are a lot of these self-managed super fund one-stop shops out there that are putting people in super funds who just shouldn\u2019t be, so always seek advice independently of whoever is trying to promote a particular property or structure to you because in a lot of instances, they\u2019re not allowed to legally give that financial advice, either.
\nDefinitely you want your independent building and pest inspectors, you want to obviously engage your own property managers, as well, but if you need help with some element of the buying process, whether it\u2019s just bidding at auction or negotiation side or assessing if it\u2019s a good property, then that\u2019s when you can bring in a buyer\u2019s agent, as well.
\nKevin:<\/b>\u00a0 You mentioned earlier that the first property you purchased was that apartment in St. Kilda. Would you buy apartments, or are you all about house and land?
\nMiriam:<\/b>\u00a0 No, it\u2019s not about apartments or house and land; it\u2019s about buying for land value as a percentage of the purchase price. Regardless of what the actual property type is, I\u2019m always looking to buy 50% to 70% land value. That way, it\u2019s the land that goes up in value, not the building. That way, there\u2019s potential to manufacture equity by doing a cosmetic renovation or an update, usually because the property is a bit older, and that gives you the best opportunity to get the best growth and to maximize your return on that property.
\nKevin:<\/b>\u00a0 Let\u2019s have a look at regional and cap city markets now. The regional markets have had a bit of a caning. We\u2019re hearing some bad stories around Australia about some of those regional markets. Do you steer clear of those, or are there exceptions?
\nMiriam:<\/b>\u00a0 Yes, there are exceptions. I do buy in regional markets, and I\u2019m always looking for the growth drivers within that particular area. I have some minimums. They need to be a regional center that has a minimum population of 90,000. There needs to be employment opportunities there. There needs to be fantastic public transport.
\nIn the case of Victoria, if I\u2019m looking in and around somewhere like Geelong or Ballarat, you obviously have to have easy access to Melbourne and usually within an hour on the train to Melbourne because that\u2019s a source of employment for a lot of people.
\nThen you\u2019re looking at affordability and you\u2019re looking at local amenities, as well \u2013 schools, shopping, education, hospitals, those sorts of things.
\nIf it ticks a number of boxes, then absolutely I will buy there. And it also depends on a client\u2019s strategy. If they have a cash-flow strategy versus a capital-growth strategy or if they only have $350,000 to spend, then those regional centers may afford them to get into the market and get an income-producing property but not compromising too much on capital growth at the same time.
\nKevin:<\/b>\u00a0 Do you suggest people get their feet on the ground, physically have a look at the property, or can they buy it sight unseen?
\nMiriam:<\/b>\u00a0 Never<\/i> buy a property sight unseen ever. I\u2019ve done enough inspections of enough properties to absolutely without doubt never recommend anyone do that. That is a massive risk, and why would you do that when you\u2019re spending hundreds of thousands of dollars?
\nKevin:<\/b>\u00a0 Okay. Thank you for answering that one so succinctly.
\nLet me ask you then a question about first-home buyers. What advice would you give \u2013 or maybe you are giving it to \u2013 your kids, or for someone who has got children about getting into property? What advice would you give them?
\nMiriam:\u00a0 <\/b>That\u2019s pretty broad, Kevin. Save as much as you possibly can as quickly as possible and be as strategic as you can. If you need to partner up with a friend or family member to get into the market, then consider that, but make sure you have a partnership agreement in place that explains what\u2019s going to happen if and when you decide to split and go your separate ways down the track.
\nI would definitely look at getting into the market at a price point that will give you a good asset, and so if someone can\u2019t afford to buy their own home at $600,000 but they have enough to buy a good little cash-flow property with capital growth at $300,000 or $350,000, then consider those options because it\u2019s more important to be in the market and benefit from income and capital growth than not be in the market at all.
\nThere are always options available; you just have to be flexible. I don\u2019t know about you, but I know I grew up and I didn\u2019t have a new car until I was in my 30s and I had second-hand furniture until I was in my 30s. So it\u2019s about sacrifice, and if you\u2019re not prepared to sacrifice, then I guess you\u2019re going to miss out.
\nKevin:<\/b>\u00a0 You mentioned there about going into a partnership with people to get into property. That\u2019s a great piece of advice you gave, too, about the entry agreement: make sure that that\u2019s in place. You always have to plan for your exit.
\nMiriam:<\/b>\u00a0 Absolutely. It\u2019s like business or marriage: it could all turn to muck at some point in time, and it\u2019s easier to have that split agreement arranged at the beginning rather than down the track when there\u2019s emotion involved.
\nThe other thing, too, if you are going to partner up with someone, whether it\u2019s just to buy a little asset \u2013 not so much \u201cset and forget \u2013 that\u2019s going to sit there and bubble away or if it\u2019s going to be a development site or whatever the case may be, you want to make sure that your risk profiles are aligned. I you\u2019re all going to get into developing, you all need to have the same risk profile. That way you\u2019re all going to be able to equally sleep at night.
\nWhere I find challenges is where someone has a low risk profile and the other person has a high-risk profile, and one person is constantly distressed because they\u2019re investing in a strategy that doesn\u2019t match their risk profile. That\u2019s the first thing.
\nThen you want to look at risk appetite. You might want to do one whereas the other person might want to buy three or four or five properties. They are the sorts of things you want to talk about up front.
\nAnd as I said, if you do actually buy a property and before you do, you want your partnership agreement in place as to what\u2019s going to happen if one of you needs to sell, has to sell, wants to sell \u2013 how you\u2019re going to go about that and what the terms of that agreement are going to be.
\nKevin:<\/b>\u00a0 You said that about \u201cset and forget.\u201d There is a difference between that and the \u201cbuy and hold\u201d strategy. Do you buy and hold, or are you a flipper?
\nMiriam:<\/b>\u00a0 No, I\u2019m not a flipper. I\u2019m a \u201cbuy and hold\u201d girl. Property is very much something that historically has grown in value substantially over time, and so you do need to give yourself time for a property to increase in value. Those people who flip usually have to follow a property cycle, and they have to be very well educated around where the markets and cycles are because that\u2019s quite a risky strategy. So there is a difference between the two.
\nKevin:<\/b>\u00a0 Set and forget \u2013 there is a difference between that and buy and hold. If you\u2019re buying and holding \u2013 which you are \u2013 how often do you reassess your portfolio?
\nMiriam:<\/b>\u00a0 Personally, I look at it every year. I don\u2019t necessarily feel that properties are all set and forget. The reason is that markets change and growth drivers change, government policy changes, local council planning changes, and with each of those changes, they can work for you or they can work against you.
\nIf you buy a property and think, \u201cWell, I don\u2019t need to worry about it for 20 years,\u201d and then after that 20-year period, you realize you\u2019ve not made any money, that\u2019s usually a consequence of not having kept an eye on it, not doing a regular review, and not understanding the growth drivers that will impact its ability to grow or maybe not grow in value.
\nKevin:<\/b>\u00a0 What\u2019s the worst investment you\u2019ve ever made, or have you already told us about it?
\nMiriam:<\/b>\u00a0 No, my worst investment was that I participated in buying some managed investment scheme real estate, which was a holiday or resort style property attached to a resort. Probably one of the higher risk things that you can do and also with very limited resale opportunity.
\nIt was after that investment that I went, \u201cYes, hang on. This isn\u2019t working. What\u2019s going on?\u201d And I got into learning a lot more, getting some more qualifications, and then going into the buyer advocacy side and specializing in buying clients high-performing investment-grade property.
\nKevin:<\/b>\u00a0 What\u2019s the best investment you\u2019ve made?
\nMiriam:<\/b>\u00a0 Gosh. I\u2019d probably say my own home actually at the moment. I bought incredibly well. I bought off market, I bought below market value, I had every clause under the sun in my favor, and it resulted in me getting a $20,000 rebate from the vendor at settlement. It\u2019s in an extremely highly sought-after area with a ridiculously high cost-per-square-meter land value, and it\u2019s doing incredibly well.
\nKevin:<\/b>\u00a0 Is it one you\u2019ll continue to live in as a principal place of residence, or will it become an investment, do you think?
\nMiriam:<\/b>\u00a0 No, I\u2019ll hold onto it until I\u2019m ready to sell and upgrade. Providing I can stay in the area, then I\u2019ll do that at that point in time. But at the moment, I\u2019m just giving it a bit of a refresh, doing some landscaping, doing a bit on the interiors, and smartening it up.
\nKevin:<\/b>\u00a0 Miriam, it\u2019s been great talking to you. Thank you for spending so much time with us. The book Property Prosperity<\/i> is out now. What\u2019s the new book going to be called, do you know? Have you got a name for it?
\nMiriam:<\/b>\u00a0 I\u2019m still testing names, so I haven\u2019t quite got there yet. I\u2019m literally just at the stage where I\u2019m about to start writing it. It\u2019s a little bit soon, but as soon as I know, you\u2019ll be the first person to know.
\nKevin:<\/b>\u00a0 Thank you, and we\u2019d love to hear about it, so you let us know when it\u2019s ready.
\nMiriam:<\/b>\u00a0 Will do. Thanks so much, Kevin.
\nKevin:<\/b>\u00a0 It\u2019s lovely talking to you.
\nMiriam Sandkuhler from Property Mavens has been my guest, we\u2019ll catch up with Miriam when she\u2019s written her book, maybe even sooner.
\nThanks, Miriam. Talk to you again soon.
\nMiriam:<\/b>\u00a0 Thanks, Kevin. Bye.
\n <\/p>\n

Tiny houses for homeless – David Wooldridge<\/h2>\n

Kevin:<\/b>\u00a0 In an Australian first, a Tiny Homes Project has been approved for disadvantaged and homeless people in New South Wales. The CEO and co-founder of the Tiny Homes Foundation, David Wooldridge, joins me.
\nDavid, good morning. Thanks for your time.
\nDavid:<\/b>\u00a0 Good morning, Kevin.
\nKevin:<\/b>\u00a0 It\u2019s a pretty exciting project, I guess, on many levels. Tell us why it\u2019s such an important undertaking.
\nDavid:<\/b>\u00a0 It\u2019s important because of the scale of homelessness that\u2019s in Australia at the moment. By all reports, there are over 100,000 people homeless at any given point in time in Australia. Given the resources and the wealth and the capacity and the lifestyle that most of us enjoy, it\u2019s just a problem that shouldn\u2019t exist.
\nKevin:<\/b>\u00a0 Tell us about the project itself. How is it being formed, and how many people will you be able to help?
\nDavid:<\/b>\u00a0 Initially, we\u2019re only going to be able to help four, so it\u2019s tiny not only in size of the dwellings but in terms of numbers that we can help. But it\u2019s really just a case of one step at a time.
\nThe project is sited in Gosford on the Central Coast, which is an hour north of Sydney, and it\u2019s next to a pretty large hospital, about 500 meters away from the main railway station and commercial center there.
\nIt\u2019s on a 500 square meter rough sized block of land, and we\u2019re going to put 14-square-meter homes there that\u2019ll be self-contained in terms of having their own kitchen, their own bathroom, their own sleeping and living area, a little outside deck, their own little garden and yard space, but they\u2019ll have a shared laundry and a shared communications, TV, Internet room, and some community veggie gardens.
\nKevin:<\/b>\u00a0 Are you providing this to them free of charge?
\nDavid:<\/b>\u00a0 No. These will be provided through state government-registered housing providers. They\u2019ll actually sub-license the homes from us, and then they\u2019ll actually source and put tenants in there and charge them according to the scale of how they set rents.
\nKevin:<\/b>\u00a0 And the land itself, I think you said 500 square meters of land. Is that right?
\nDavid:<\/b>\u00a0 It\u2019s between 500 and 600 square meters.
\nKevin:<\/b>\u00a0 Are you the owner of the land?
\nDavid:<\/b>\u00a0 No. Council has given us use of the land for $1 for a couple of years to just test out this model.
\nKevin:\u00a0 <\/b>So you\u2019re actually putting the homes on the site. Is that your role in it?
\nDavid:<\/b>\u00a0 We\u2019re building the homes in conjunction with TAFE Outreach and a skills generator who are a registered training provider and do work for the dole programs. We\u2019re really linking a Housing First strategy together with training, and hopefully as this thing scales up, we\u2019ll put together social venture businesses that can create real, sustainable, long-term employment opportunities for many of the residents.
\nKevin:<\/b>\u00a0 We\u2019ve done a number of stories on Tiny houses, most of them focusing on sustainability and affordability of the homes themselves. Are these things a top priority in this project also?
\nDavid:<\/b>\u00a0 Well, yes and no. Obviously, the most important thing is to alleviate homelessness. The benefit of Tiny is that if something costs you less than presumably for whatever resources and funding you have available, you can build more of them. That\u2019s one aspect of it.
\nBut the purpose is not to do them for the cheapest possible cost, but because of the collaboration that we have with all of the different partnering organizations and the support\u2019s been overwhelmingly favorable. We have a lot of pro bono free\/subsidized support for everything from building materials right through labor and the internal shipment of the Tiny homes themselves.
\nKevin:<\/b>\u00a0 It\u2019s a great exercise, David. It sounds to me as if you\u2019re doing this to help people get back on their feet. Are these Tiny houses a bit of a hand up for these people? How long will they stay in them?
\nDavid:<\/b>\u00a0 That\u2019s a really good question, Kevin. They\u2019ll stay in them as long as they need to stay in them. Our view is that we would hope that they\u2019re transitional and that as people do get their lives sorted out and work through whatever issues have been predominant in leading them into homelessness in the first place, that they\u2019ll be able to use these as a stepping stone and then move on to whatever other form of housing works for where they want to head in life.
\nOne of the things we\u2019re most excited about is that \u2013 and again this is a bit of an Australian first in many respects \u2013 is that we\u2019re going to attach an equity participation scheme to these. The old adage is that rent money is dead money, so what we want to do is we want to say, \u201cOkay, whatever the rental we receive from the housing provider for these Tiny homes, whatever is not used in the actual repayment on an interest-free basis of the cost, which is circa $30,000 per home, or for the ongoing maintenance of the property itself, then that money would be set aside and be counted as if it were equity towards the tenants.\u201d
\nThen if they need to move on and pay a rental bond or buy some white goods as they move into another form of housing accommodation down the track, then they can come and apply for that money to be released for their benefit. I think that\u2019s a pretty revolutionary concept.
\nKevin:<\/b>\u00a0 Fantastic. It\u2019s clear to me in all of these things that you need council support. We spoke to the Mayor of Byron Bay a few weeks ago. He\u2019s considering a similar plan for his local community. Are you looking for other councils around Australia to adopt these types of projects?
\nDavid:<\/b>\u00a0 Absolutely, we will be. We\u2019re not trying to set up the next biggest charity and solve homelessness all by ourselves. I think it\u2019s too big a problem. Our solution is part of it and not the only solution. There are many other great ideas and concepts out there. And it doesn\u2019t necessarily have to come through us. That\u2019s why we\u2019re making everything that we\u2019re doing available as an open-source model.
\nSo all of our plans, our learnings, our documents, etc., over time, we\u2019ll release all of those so that other people who have the same capacity to bring into play all of their collaborative partners \u2013 including councils \u2013 that they can actually replicate this anywhere in Australia or indeed the world.
\nKevin:<\/b>\u00a0 All power to you, mate. Well done, and it\u2019s a privilege talking to you. I really appreciate you giving us your time this morning.
\nI\u2019ve been talking to the CEO and co-founder of Tiny Homes Foundation, David Wooldridge.
\nDavid, thank you so much for your time.
\nDavid:<\/b>\u00a0 No problem. Thank you, Kevin.<\/p>\n","protected":false},"excerpt":{"rendered":"

  We\u2019ve heard the dire warnings of a property market crash from the doomsayers, we\u2019ve heard that the Australian economy will take a big hit because of the downturn in mining and the effects of Brexit and financial crisis in Greece\u2026 but where do we…<\/p>\n","protected":false},"author":176692471,"featured_media":9431,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[10,11,13,24],"tags":[101],"class_list":["post-9430","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-kevin-turner-sponsored-channels","category-kevin-update","category-latest-story","category-shows","tag-podcast"],"yoast_head":"\n\u201cNo sign of a crash\u201d \u2013 Dr Shane Oliver + Purple Bricks turns the industry red with rage - 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\/no-sign-of-a-crash-dr-shane-oliver-purple-bricks-turns-the-industry-red-with-rage\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"\u201cNo sign of a crash\u201d \u2013 Dr Shane Oliver + Purple Bricks turns the industry red with rage - 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