Kevin Turner and Chris Tate believe people need to do their research and stick to their decisions to make the most of the opportunities emerging post-pandemic.
Australia’s leading investment veterans Kevin Turner (property) and Chris Tate (equities) told KnowHow founder Bushy Martin on the Get Invested podcast there are ‘pockets of opportunities’ everywhere and the property market is proving to be ‘very resilient’.
“We’ve seen a resilience coming out in people that I could never even have imagined,” Kevin said.
“There’s good coming out of everything. And I think the technology that’s emerged through this crisis, particularly in the property industry, has absolutely staggered me.
“Our ability to get much more accurate information to make investors, property buyers and sellers a lot more aware of what’s going on has really advanced the profile of investors quite enormously.
“I’m really encouraged by the number of young people who are taking a different stance when they’re looking at property. Our first time buyers now are not necessarily all buying with their heart. They’re getting a great understanding about the principles of property investing.”
For Kevin, the biggest influence upon investor, buyer and seller confidence in the property market is their consumption of negative media commentary.
“There was some criticism just recently about how success rates are falling. That’s not what I’m seeing at all. In fact, I’m seeing really good confidence,” he said.
“And where we found the lack of confidence was in all the negative press, really scaring a lot of sellers who were thinking, ‘well, now is not a good time to be selling’. And I think the really smart ones actually seized on the opportunity … and they actually will have won on that situation.”
Bushy and Kevin said it is all about supply and demand.
“It’s a demand supply equation. You’ve got limited supply, but you’ve got people that need houses or need rental properties. Then that’s going to put upward pressure, and it has created this ceiling,” said Bushy.
Kevin added: “I was disappointed just this morning to read the number of so-called experts around Australia who are saying this is not a good time to be selling your house. That’s not the evidence that I’m seeing at all, because all of my instincts say when listings are low and when buyer demand is not so much high, but normal and maybe reasonable, that is a good time to sell.”
But if you’re an investor, buyer or seller who still feels anxiety in these times, Chris Tate says that you need to learn to get comfortable with being uncomfortable.
“The unfortunate thing, I think, for people who are planning and using this time now to plan for the time when it ends, is that a lot of them are making the mistake that 2021 will be a repeat of 2020, not 2018 or 2019. They don’t understand that a crisis always ends if we put it into historical context,” Chris said.
“The game continues to play, irrespective of your feelings or your anxieties. And you have to get used to being uncomfortable. Making any sort of large investment decision is an exercise in discomfort.”
Chris, Kevin and Bushy all share a similar outlook when it comes to having confidence and successfully investing. They said it is important to mould traditional investment principles around your strategy and goals, and playing the long-term game.
“It’s matching your own risk, profile and personality to the opportunities that occur at a certain time, at a certain place. And it does change with time. So you really do need to bring those three together,” Bushy said.
Kevin said: “If you buy into a program where someone has said ‘these are the secrets to investing in property’, it may work for some people, but it’s not going to work for everyone. You’ve got to work out what is your formula? What’s going to work for you and what will you stick with?”
“Quite often many people will go in and try something for five minutes, decide it doesn’t work, and then go looking for the next big, bright, shiny toy. You’ve got to take responsibility. You’ve almost got to build your own platform.”
To execute these steps, Chris said you should engage in research, seek raw and unfiltered information and use common sense.
“People actually know a lot more about investing in terms of its raw components then actually let on because they seem to forget that common sense applies to all forms of investing. So, you need to start getting used to getting your information from raw sources…. it sounds something that’s too hard for people. But it’s not,” Chris said.
Finally, Kevin emphasised that no matter what decision you make heading into the post-pandemic world, you need to have the confidence to stick to it.
“You’ve got to take your own advice. You know, you’ve got to listen to what people say, but then you’ve got to make up your own decision. You cannot abdicate that responsibility. You might want to delegate some of it to some of the experts. But at the end of the day, you are going to have to make the decisions yourself about where you invest and back yourself into them,” he said.
“And when you make a decision to do something, stick with it. Don’t be swayed because you’re going to hear varying views all the time. Do your homework. Make your decision. Stick to it.”
Listen to the full interview here.
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