Ep.268: Mindset Matters: Navigating Property Investment, with Simon Pressley

In this week’s episode of the Geared for Growth podcast, host Mike Mortlock is joined once again by Australia’s leading property analyst and Managing Director of Propertyology, Simon Pressley. They dive into the role of mindset in property investing and explore how the right mindset can be developed. 

Simon and Mike discuss common pitfalls investors encounter in their approach to property. Simon draws a comparison between the property and share markets, emphasising that while there are distinct differences, property should be regarded as a financial instrument and managed accordingly. 

Reflecting on early 2020, Simon shares how he recognized, despite widespread concerns, that the property market was unlikely to experience a major crash due to COVID. He highlights the key indicators that signalled the subsequent property price surge and challenges the popular belief that population growth is a primary driver of demand. 

In light of discussions around negative gearing and capital gains tax reforms, Mike asks Simon whether investment property sales benefit the market. Simon uses historical evidence to highlight the ongoing need for rental properties and emphasises the critical role of private landlords in the current market. 

This episode offers an insightful behind-the-scenes look at the mindset of a savvy investor and underscores the importance of a logical and systematic approach to property investment. 

Here at MCG, we are committed to creating a forum and education series for property owners and investors. We do depreciation differently and offer a set rate for Replacement Cost Estimate reports. A first in the industry. Join our clients saving more on their tax today  https://www.mcgqs.com.au/ 

In this week’s episode of the Geared for Growth podcast, host Mike Mortlock is joined once again by Australia’s leading property analyst and Managing Director of Propertyology, Simon Pressley. They dive into the role of mindset in property investing and explore how the right mindset can be developed. 

• The importance of having the right mindset before making decisions 

• The reason there are no wild swings in the property market 

• What property values really depend on (hint: it’s not population growth!) 

• Why property investors need to think more like share holders 

• How to tell if a property expert knows what they are talking about 

• The key to having a really good mindset 

• Why investors selling down property is a bad thing for the market 

“What we need to understand with property markets is that whilst there are a number of things that influence property that also influence shares it is not an index, you cannot buy the property index but you can buy an index on the stock market for example so property prices don’t have these wild fluctuations that stock markets can have” 2:39 

“I just felt there was an opportunity for us to demonstrate some leadership in this country and say this is why you don’t need to be worried about the value of your home or the value of investments” 7:39  

“Property investors need to do the same thing, disregard where you live or whether you would live in it ’cause that’s actually not the purpose. The purpose is a financial outcome so get an understanding of what influences financial outcomes and focus on those things“ 9:25 

“Always beware of the natural human tendency, I’ve got it, you’ve got it, all humans have it to evaluate properties through the lens of ‘would I live in that city, how would I feel living in that city’ ” 11:01 

“It’s not about population growth, it’s actually about a transaction occurring” 21:10 

“If an investor sells a property, that should concern the Australian public if that’s happening en masse because that’s one less property in the rental pool” 26:30 

Are you a fan of The Geared for Growth podcast? If the ideas and tips we share in each episode are inspiring you to become a more knowledgeable property investor, subscribe to the show and leave your honest review to let us know!