In episode 16 of the Property Investing Journey, Mike is joined by Simon Pressley in part 1 of this two part episode on the Dos and Don’ts of selecting growth locations. Making his encore performance as a follow up to his foundational episode 4 of Geared for Growth, Simon brings his energy and considerable knowledge and experience to shed some light on the often-asked question “where should I invest?”
As Managing Director of Propertyology and 3-time Australia’s Buyer’s Agent of the year, Simon is well versed in the property economics of Australian capital cities and each of 177 regional cities and towns. In this podcast Simon tackles the arguably meatier topic of what NOT to do when looking to invest in property.
The old adage of not placing all your eggs in one basket is one that Simon believes is a critical tactic for successful property investment. Too often investors become over-confident in their property knowledge by virtue of the fact that they own their own homes. But there’s a difference between knowing your neighbourhood and knowing the property market. By taking emotion out of the equation and looking further afield than hometowns, Simon believes investors can do much better.
Mike and Simon also discuss why population growth is not correlated to property prices and why capital cities are not always the best road to healthy capital returns. With straight to the point conversation and a clearly articulated list of Don’ts, this podcast is critical listening for anybody with an interest in property investment.
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As Managing Director of Propertyology and 3-time Australia’s Buyer’s Agent of the year, Simon is well versed in the property economics of Australian capital cities and each of 177 regional cities and towns. In this podcast Simon tackles the arguably meatier topic of what NOT to do when looking to invest in property. With straight to the point conversation and a clearly articulated list of Don’ts, this podcast is critical listening for anybody with an interest in property investment.
What we cover in this episode
- The science of property markets
- A pragmatic approach to property investment
- The “Don’ts” of selecting growth locations
- Don’t put all your eggs in one basket
- Don’t get absorbed in the “bricks and mortar”
- Don’t confuse “knowing your neighbourhood” with “knowing your property market”
- Don’t place importance on whether you would live in the location
- Don’t be fooled into thinking capital cities equal capital growth
- Don’t be fooled into thinking it’s all about population growth
- Don’t confuse reading with research
- Don’t be fooled that bank reports or economics degrees equal property market expertise
- Don’t invest in apartments
- Don’t get caught up in the metric-of-the-moment
- The objective of property investment
- Capital cities vs Regional Australia
- The fallacy of population growth and it’s relation to property prices
- Simon’s views on why apartments make bad investments
“Investing is a discretionary action. It’s not something that anyone has to do. There’s no law that says we have to do it and sadly most people never do it. But for those who do it, the objective is to invest whatever amount into an asset, in the hope that that asset is worth a lot more in years to come.“ Simon 1:14
“Most property investors, whilst they don’t realise it, know more about the share market than they do about property markets“ Simon 2:06
“I studied Australian real estate history and realised there is zero correlation between population growth rates and property prices“ Simon 15:35
“What demand is, is not population growth. We all have demand for housing. And where the economists of the world always stuff the equation up is, they think that housing demand is a measurement of population growth rate…Demand is a measure of buyer activity, not population growth“ Simon 20:13
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