Property industry veteran Kevin Turner says long term property investors, and those who invest in regional areas, are set to benefit in the wake of COVID-19.
Kevin a leading property market expert and one of Australia’s most recognised voices in property investment.
He spoke with Bushy Martin on the Get Invested podcast about how property continues to be a stable and reliable investment choice post-pandemic.
“Property once again has proven to be very strong, very resilient. We’ve come through some pretty bad times and property seems to always hold on. And I think this is going to be exactly the same. I believe if you’ve got confidence in property and you’re a long-term investor, then hold on, because the one thing I do know is that we’ve all got to live somewhere,” Kevin said.
“We may be able to do away with a lot of the luxuries of life, but you can’t do away with needing to have a roof over your head and having that security. So, to me, bricks and mortar is where I’ll keep my dollars.”
Kevin expects a massive shift towards regionalisation and decentralisation, meaning some of the biggest opportunities will come from Australia’s regional areas.
“With technology the way it is and with transportation being so advanced, now we’ve got wonderful opportunities to live in some of the regional areas around Australia. And I think we’re going to see a lot more diverse housing coming into some of these regional areas, which is going to give a lot more opportunity for investors,” Kevin said.
“For those who want to live in the city, we’re going to have to get used to living more in apartments. We’ve become a lot more sustainable about how we live. So, I think this has really expanded those opportunities and brought them on at a much faster pace than what would have happened if we didn’t have the coronavirus.”
“There’s a lot more really good commercial activity happening in some of the regional areas that we’re used to traditionally see in the inner-city areas. So I think it’s going to become a whole new landscape.”
Kevin also emphasises the appeal of ‘safe’ locations for property investors.
“If you look in a world environment, the areas that are considered to be safe are the areas that I think are going to attract a lot more attention,” Kevin said.
“I’m talking to countries, I’m talking to regions, and I’m talking to states as well. If you look around, you look at what are the states that have got the most stable government, got really good infrastructure happening, and a fairly good economy.”
However, both Kevin and Bushy believe long-term investing in itself is a key opportunity and can see you reap greater benefits in the future.
“I’ve been a believer for many years now about the benefits of long-term investing because you’re avoiding all the change-over costs,” Bushy said.
“As long as you’re doing your homework and you’re anticipating what type of property or where there is going to be in short supply but big demand, then it’s actually an easier ride because you can get out of the way and let the property do its work, so you can get on with what you’re good at.”
“I think we’ve got to start thinking a lot more long-term about our investments … there’s a lot more difficulty in terms of flipping. I think flipping is going to become a lot harder than it ever was before. So, I think investors are going to take much more of a long-term view as opposed to a short-term view,” Kevin added.
“I wish I had held onto all the properties that we chose to buy, do up and then flip because I’d be a lot wealthier now. And sometimes the pain of trying to hold it past four or five years comes back ten times if you can actually get through that barrier.
“But it’s short term thinking and the bait is there – you can see it if you buy well, do it, do it up, even in this market, you can still make good money. But by the time you look at all your costs in getting in and out, then you weigh it up and say,’ well, short term, that may have looked like a good deal, but long term, it was a shocker’.”
Kevin and Bushy firmly believe that property investing is not a ‘part time game’, but a ‘full time business’. So, being resilient and patient in post-pandemic times is just as important as doing your homework on different property markets.
“What I normally suggest to people is that the property cycle in your location – and they’re all out of sync and operate differently – normally takes about 15 years to flush its way through. If you go in investing in a property thinking you’re going to have it for 15 years, then it’s a fair chance you’ll go through a full cycle over that timeframe and therefore really reap the benefits,” Bushy said.
“The ones I feel sorry for are the ones who go in expecting to make money straight away, and four or five years in, it hasn’t and it won’t. And they throw their hands up. And they also haven’t put a good team around them. So, they’re trying to manage it, tenant themselves and do the maintenance themselves.
“So, they’ve created a second job for themselves in the process and then get out of it, lose money and never go back to property. I think they’re the real losers in the equation.”
Listen to the full interview here.
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