Property Hub - Investment Insights & Inspiration - Realty Talk - Dynamics and changes create investor doubt

Episode Date: July 25, 2024

Last week Antonia Mercorella from the REIQ gave us a great insight into the state of one of the country’s hottest investment markets right now – Queensland.   Despite the rosy outlook, the changes on multiple fronts in Queensland could be conspiring to increase costs while restricting control for many investors.  So is it time to take stock and consider investing elsewhere?   Today we consider the fear driven negative rhetoric with Kieran Kannan, the Principal of Odyssey Property Concierge.  Then Bushy is joined by Anna Glynn, an organisational coach with some practical strategies that will empower you to amplify your impact and thrive.  Subscribe for free to Realty Talk on the Property Hub channel, join our community and get more insights here: https://linktr.ee/propertyhubau Property Hub is a collaboration between Bushy Martin from KnowHow Property, Kevin Turner from Realty, Andrew Montesi from Apiro Marketing and Apiro Media, and Australia’s largest independent podcast network DM Media.See omnystudio.com/listener for privacy information.

Last week, Antonio Mercurello from the REIQ gave us a great insight into the state of one of the country's hottest investment markets right now, and that's Queensland. Despite the rosy outlook, the changes on multiple fronts in Queensland could be conspiring to increase costs while restricting control for many investors. So we asked the question, is it time to take stock and consider investing elsewhere. The most recent changes, obviously there was another round of amendments last year. You know, we had the minimum housing standards come into play.

We've had rules around pet approvals. And all of this together has kind of created this feeling amongst investors that, you know, the legislation is against them. That's Kieran Cannon. Kieran is the Principal of Odyssey Property Concierge in Brisbane. and today we take his take on the fear-driven negative rhetoric. And then Bushy is joined by Anna Glynn. Anna is an organisational coach with some practical strategies

that will empower you to amplify your impact and thrive. A great positive way to end the show. Before we start, I want to thank our supporters and content partners, Realty.com.au, BMT Tax Depreciation, Know How Property Finance, GetRareProperty and Apiro Marketing. You'll find us on all podcast players as the Property Hub. Also on the Southern Cross, Austereo Network, Hot Copper and on all social media platforms. Property deductions can save you thousands of dollars each year. To make sure you maximise deductions, you need to work with the most experienced quantity surveyor in the country.

BMT Tax Appreciation is the leading specialist in the industry. They've completed over 700,000 tax deduction schedules for residential investment and commercial properties Australia-wide. BMT guarantee to find double your fee in the first full financial year deductions. Call BMT on 1300 728 726 today for an obligation free quote. Realty Talk and your host, Bushy Martin. Now, given the deluge of dynamics and changes on multiple fronts that's being reported in Queensland, that's collectively conspiring to increase costs while restricting control for many investors. On the face of it, landlords may be thinking that it's time to sell up and for investors

to consider putting their money somewhere else. But does the fear-driven negative rhetoric actually line up with reality? Well, to dig below the surface and reveal what's really happening with property opportunity in the Sunshine State, we're joined by Kieran Cannon, the Principal of Odyssey Property Concierge in Brisbane. So welcome to Realty Talk. Kieran. Thank you for having me. Kieran, I really want to dive into this because I'd like to put some balance back into the equation, but to set the scene, can you sort of start by giving us a bit of a quick snapshot of all the new things that investor landlords have had to contend with in Queensland in recent times? Yeah, look, for sure. So you mentioned, you know, at a surface

level, it does look kind of maybe perhaps scarier than it actually is. But I mean, just last month, we saw another reform to the housing legislation. I guess the most impactful things that came out of that were the rent increases. So rent increases, previously they were applied to a tenancy. So it could only be increased every 12 months per tenancy. Now it's applied to a property. Obviously that's caused a lot of, I guess, alarm amongst investors. The other two big things, I guess, that came through were not being able to accept rent over and above the asking price so Queensland obviously you know we've seen a lot of rent bidding in the past 12 months so that's why that has come in because obviously just to level the playing field also in an effort to level the

playing field amongst tenants when they're applying is tenants can no longer offer to pay like a large lump sum up front with their application so that's been limited as well so I think that's probably the most recent changes. Obviously, there was another round of amendments last year. You know, we had the minimum housing standards come into play. We've had rules around pet approvals come into play. And all of this together has kind of created this feeling amongst investors that, you know, the legislation is against them. Yeah, one of the things that I wouldn't mind your thoughts on around this, So the limitations on landlords on how and when they can end a tenancy, how's that rolling out in practice?

Are you seeing any issues surrounding that in terms of the way landlords are thinking about it or the way that's impacting on things generally? Look, we haven't seen any material impact, to be honest. The changes around ending a tenancy, so sending a notice to leave, those haven't actually come into play yet. So there is talk about changing the grounds that you can issue a notice to leave to a tenant. So at the moment, one of the grounds that you can issue is just being end of a fixed term tenancy. Now, obviously, tenancy advocate groups, they're trying to even have that removed, which I

do think that will potentially pose a problem. But for now, you know, if people are on a fixed term lease, there is very little you can do to end that lease, which is good because it does, you know, it does give tenants the security and also landlords can plan. Yeah, no, 100%. Oh, well, it's certainly been painted fairly negatively, but I guess on the flip side of that, and I guess I'm talking here potentially about aspiring investors who might be going, well, I'm not too sure about Queensland now, given everything I'm hearing. But on the flip side of that, I wouldn't mind you sharing the details of some of the predicted growth that Queensland is going

to continue to enjoy and some of the positive drivers that are going to continue to support this in the times ahead if you could? Look, I am born and bred Brisbane, so I will sell it. But, I mean, the data shows, well, I mean, the projected data, I guess, is that Queensland is going to see about a 25% population increase over the next 15 years, which that's substantial growth.

i mean uh we've got uh the olympics coming we've got the the the health precinct in hurston there's something like 17 billion dollars going into that the infrastructure coming into brisbane and the surrounding suburbs is phenomenal i mean 15 years ago 20 years ago people would have considered brisbane kind of almost a back um you know a bit of a country town but now like our our museums our galleries our cultural institutions they are all on par with the other states like you're familiar with mal's last answer like he he was the director of the queensland ballet for 10 years and they exported shows internationally like all of this is contributing to really put queensland on the map from an international perspective and i guess the the proposed or the

the expected growth is all a part of that collectively yeah and i will say i know i think that Brisbane and South East Queensland in particular has really benefited from this exodus to lifestyle because, you know, it's a much more affordable place to live than the likes of Melbourne and Sydney. The COVID catalyst has really added some pressure to that equation on the positive side. And relatively speaking, if you look at the values

of properties and whatnot in and around Queensland, they're a fraction of what you're seeing in the other eastern states. So there's some pretty strong reasons, given the climate and all the other livability factors that go with that part of the world, that I can see why the projections are around that 25% growth in the population in the short to medium term.

So I guess the old exercise and the existing landlords and aspiring investors who are looking at Queensland, and there's been a lot of them in recent times, how can investor landlords best take advantage of the benefits that Queensland is offering while limiting and minimizing any of the downside restrictions that have been emerging look to be honest these these restrictions uh with the new legislation I don't think that they're that big a deal if you are well across like if you're self-managing your investment property or if you have an agent if if you're across the legislation and how it practically

applies. Yes, there's a few scenarios, a few scenarios where you may be negatively impacted by these. But for the most part, I don't see it as being detrimental. What I see as being really positive is this predicted population growth. By all accounts, building cannot keep up with the population growth. So that is going to continue putting the pressure on the rental market, which means vacancy rates will be low prices are going to continue to increase which i mean depending on whose seat you're in not a good place but um from an investor's point of view i don't see how this can go badly i mean if you if you look at sort of inner inner cities like tenerife where our office is over the past 12 months it's seen phenomenal capital growth but then obviously

the yield on you know if you're buying in tenerife for an investment property your yield is going to be you know minimal but i mean it either way if you go for capital growth if you go for yield it's it's it's on the up in my opinion yeah well all the drivers from infrastructure to industry growth to income growth is all pointing in that very clear direction and there's opportunities for investors as you say they're either looking for growth that's affordable from the yield or cash flow investors who are at the other end of the journey looking to add to their ongoing incomes plenty of opportunity there and I guess you the ultimate question I was going to ask and you pretty much asked it answered it already but just I guess bring this to a nice

summary yeah Kieran is Queensland still a good place to invest or should investors be looking elsewhere and if so on each side why? I think that Queensland is perfect for an investment property I mean if you're if you're looking to kind of buy a property as an investment have tenants in there for many years, that sort of thing, then perfect. I mean, I think perhaps the days of flipping are gone, just with material costs being ridiculous. But something like, let me look here. I've got my stats here.

Queensland does have the highest number of renters out of Australia. So if you look at that, you look at that with the population growth, work it out, it's going to be a good investment. Yeah, no, extremely well said. Really good reinforcement there. And I just want to really thank you for restoring some balance in this argument in relation to the Queensland property investment opportunity.

And I really want to thank you for taking the time to share all of this with us here on the show today, Kieran. Thanks for having me. Successful property investment is a game of finance. Do you have the right team and the right game plan? Realty Talk is brought to you by Know How Property. More than mortgage brokers, Bushy Martin and his team of investment architects set you up with a sustainable strategy structured to lower your costs, tax, risk and stress while increasing your capacity for growth. KnowHow has helped over 1,900 homeowners and investors secure more than $800 million in property wealth.

So get set to live more, work less and live your legacy. Want to know how to invest in your freedom? Visit knowhowproperty.com.au This is Realty Talk powered by realty.com.au Now it's often said that the only certainties in life are death and taxes. But as time marches on in our world of exponential change that's been turbocharged by technology and its latest proponent AI, it's clear that the only certainty is increasing uncertainty.

So how do we continue to thrive in work, life and property as these complex dynamics continue to escalate? Well, to equip you and your teams with the skills and approaches required to better manage the pressures of the surging seas of change we're joined by Anna Glynn, an organisational coach and author specialising in positive psychology who translates cutting-edge research into practical strategies that empower you to actually amplify your impact and then thrive.

And she's recently released her book, Strong, that leads you to better engagement, resilience, wellbeing and performance. So welcome to Realty Talk, Anna. Thank you very much for having me. I'm looking forward to being here. Likewise, a really good subject given the times we're in, but I guess just to set the scene, can you paint us a bit of a picture of the current and future challenges that we're likely to experience and actually need to face, particularly in the world of property,

if you can. Well, I couldn't agree more with you, Bushy, than in addition to taxes and debt, I think what one of life's certainties is that we're going to face uncertainty. Bit of a mouthful there. Even if we look back sort of four years ago, nothing or no one could have predicted that global pandemic that we all face and are still facing. So I think back to that time, And I remember the buzzword at the moment was VUCA. Remember, we're living in that VUCA world. So if it was VUCA before, I keep saying to people, it's kind of VUCA squared now.

Who knows how we actually define this period, and maybe that will come later on. I was even running a workshop the other day, and someone said to me, I'm really just looking forward to the day when things just settle down. Now, she was in for a bit of a shock with my response, let me tell you, when I said, no, no, I don't think that's going to happen.

you need to get better prepared. So pretty much everyone I'm speaking to at the moment or certainly this year, you know, business leaders, sales managers, architects, techies, tradies, financial advisors, like you name it, everyone is facing similar challenges, which is really interesting. First off, what I'm hearing across the board is that our demands have increased. Okay, so even if we're thinking about our workplaces, there's more demands on us, or if we're thinking about things like compliance and regulatory changes, there seems to be so much more being pushed down on us from above. Also, what people are telling me is that customers' expectations have increased. So many are shopping around, they're wanting more for less, and they're taking time or longer time to actually engage or, you know, potentially, you know, sign contracts and that sort of thing. So that whole sort of customer engagement process is taking a lot more effort and a lot more time.

On top of that, people are saying to me, I don't feel like I have the resources to actually do my job. Now, that's thinking about things like people, obviously, as one resource, but also it might be, you know, time or actual products or platforms that we might use. Now, I know you also spoke about things like, you know, technology, obviously, AI is coming in and being thought of as a bit of a disruptor in terms of what it's going to do to our jobs and, you know, things like, you know, efficiencies, et cetera. So that's a lot of the, I guess, generic challenges that I'm seeing across industries, countries, roles, you name it. They seem to be pretty consistent. I think when it comes to property specifically, first and foremost, we are facing these volatile markets. You know, certainly in the industry, we're seeing things like building companies collapsing, which is so unfortunate. but that of course means that projects go on hold or they pause or they they are you know

stopped altogether obviously we have things like the cost of living pressures that is a big challenge and then things like you know international students not quite returning to the same levels as they were prior i think we need to adjust the fact that the market that we're in is actually perhaps our new normal so maybe the last couple of years we got a bit too used to the good times, you know, interest rates being lower and everyone was sort of out there investing and buying. And perhaps we've forgotten a little bit of what the market actually used to be like. And I think that's where we're starting to actually come back and adjust and go, well, this is the new normal. Now, in spite of all that, I still think there is, you know, it's not just doom and

gloom. There is plenty of opportunities that we can find in those challenges. So if people are sort of staying up at night thinking, oh, I'm not sure how I'm going to succeed or how I'm going to achieve what I set out. I think there's still lots that we have in terms of, you know, good opportunities that we can find in these markets as well, despite those uncertainties. Yeah, 100%. And certainly, property is pretty much acted in reverse to what a lot of people are expecting, because in a lot of areas it's continuing to charge along very strongly. But I think the fact that we live in a world now that's always on and there's almost a paradox of choice.

We've almost had too much choice and too much data that we're constantly bombarding ourselves with, whether it's in our phones or our iPads, the PC screens, you name it. So given all of that, how can we pressure-proof ourselves to actually better handle these changes and the volatility and the increasing demands that you mentioned? Well, I think we all need the tools to actually be able to cope well with the change and handle the pressure because the adversities,

as we said, we will face them in our life. Like that's just normal, whether that's in our work or certainly in our personal lives. Lucky for us, thanks to research and some incredibly smart people around the world, they've actually uncovered some of the strategies that can help us cope well with those challenges, but also be at our best as well despite them. So firstly, what I see as really important as part of those tools is understanding ourselves. So being really self-aware. And this is actually thinking about, well, what are the

resources that I already have, things like our strengths, that I can actually draw upon to help me overcome my challenges. So what are the things that are already innate to me? How can I also use something like my mindset to help me focus on the right things? So focus on the things that I can control as opposed to what I can't. So each of us already comes with a whole lot of different resources that we can actually draw upon during these difficult times. So firstly, we want to use those. The second one is that we want to draw on the resources of people around us. So what about our connections to other people? Our relationships are so important to us. So they are absolutely there to help us during tough times, because quite frankly, we wouldn't have survived, you know,

centuries and centuries ago if we were on our own. So we've always, as a human species, relied on other people but here we actually want to be thinking about the quality of our relationships not just the quantity so when we have really great relationships of a high quality around us these are people that support us but we also support them as well and when we're thinking about this in our work context we might be thinking about our peers but then also it does extend to our clients and our other stakeholders that we deal with as well these relationships can bring us a range of really, really good benefits. And then finally, what I think is also really important at this time is connection to our purpose. So if we understand the why behind

something that we're doing, and particularly during tough times, this actually gives us that ability to persist and adapt even in really complex environments. Because our purpose is almost like the northern star. It's our shining light that actually can help us navigate that turbulence. So I believe those three things are really important and can help sort of pressure proof us. So it's thinking about using them to get through those tough times, but also emerge from those challenges stronger and more developed as a result of going through them as well. So the next challenge, we're better equipped to actually deal with it. Yeah, and nicely said.

And I think the interesting thing is that I think the overall level of noise around challenge has increased. So there's almost a constant undertone of challenge, whether it's actually tough times or not, given the speed and the pace and the volume of activity that we need to cope with through all of our senses now, I think reading between the lines of what you're saying, we really need to start living with much clearer intent and curate our experience so that we decide actively who we let in so that we can actually

protect ourselves but then feel better about the world as a consequence. So some great thoughts there. So sort of extrapolating from that, what do you see that separates those that merely survive the times from those that go on to thrive in these quite hyper-uncertain circumstances then, Anna? I think there's some pretty telling signs that can differentiate

those survivors from the thrivers. Again, if we think back to kind of, you know, four years ago, that global pandemic, maybe with the benefit of hindsight, each of us could actually think and consider, well, who do we reckon is going to do well out of this and who's actually not going to do so so well and I think that comes down to our experiences of how people think and how they act and how they feel and how they show up and that obviously has a big impact on them you know what they achieve the same goes for people that pick up the phone after the 19th time so they've had 19 knockbacks

from clients or whoever it might be. But there is a group of people that believe that that 20th phone call will be the one where they make that sale. So they pick the phone up. Now that is very different from the group of people that do exist and are out there where they get to the 19th phone call and they think, oh my goodness, there's no use. It's never going to happen. I've got a bad product or service. There is no point in me actually picking up the phone call. So they don't get the sale and they don't achieve the same outcome. So this notion or what I'm sort of alluding to here definitely comes down to our resilience, but I think it's closely related to its cousin, which is optimism. Now, optimists at a high level, when we think about it, yes,

they think differently, okay? But because of the way they think, they actually act differently and they feel differently yeah so yes they think the future will be better but they actually try harder in making it so and this is what differs them from perhaps those pessimists that are out there so when we have observed and lots of research has been done on the difference between optimists and pessimists what they've found is that yes from a thinking perspective they're positive about the future. But more so than that, what they do is they focus on what they can control as opposed to what they can't. So this is going back to that locus of control from people like Julian Rotter and obviously Stephen Covey. On top of that, they also see challenges as opportunities

to learn or to grow in some way. So again, that's talking to that sort of growth mindset. So because of that way that they think, then what happens from the way that they act is that we find they're really action orientated. So they're not sort of just sitting back and waiting for problems to come at them. They are going at them head on. They're also not afraid to ask for help or find more information if they don't know the answers. So they're actually very much out on the front foot trying to gather the information that they need. And what my other favorite part of optimists is they typically use humour to help them through those difficult times. So it's not a way of sort of, you know, not accepting of the circumstances. It's actually a really healthy

strategy to overcome those difficult times as well. And it helps other people. So then because of the way they've acted from a feeling perspective, they are more positive and they are more grateful. So they're very aware of what they have versus what they don't have. And they typically have better energy. So although it's quite simple, I think this mindset is a big differentiator that actually separates those survivors from those thrivers, because there's a lot of depth that actually sits behind it. But maybe as I've been going through, some of your listeners might be thinking, you know what, that does explain a bit more about the people around me or why I'm different to others and perhaps why me or someone else tends to achieve different

things in life. Because interestingly, optimists have been shown to, yes, have better resilience, but they're actually, they tend to do better from a performance perspective. They have better wellbeing. They live longer, they're healthier. They also have better success in things like sports and academics, and certainly in certain jobs as well. So yes, it might be a mindset, but it has a big impact on a whole range of other things as well. Yeah, beautifully said, because I've always said that what we think about is what we bring about. So if we're thinking positive, we're going to attract positive, we'll attract positive people, which will attract positive outcomes because it becomes a solution focused exercise. If you're

thinking negatively, then you're going to attract exactly the same thing and bring more problems into your existence as a result of that. So a very subtle but very significant shift in thinking, if you're prepared to back yourself in in that regard, can have amazing impacts. And I guess that leads beautifully into the last question I want to touch on, Anna, and that is how can property investors and property professionals take advantage of all of this? Good one. Well, I think firstly, we all need to consider, well, what is it that we need to survive and thrive? Because it might look slightly different for each of us. Yes, research tells us a lot about what we might need, but we kind of have to be our own guinea pigs as well. So firstly, I like to ask

people, well, how are they going? Like, where are they currently at? Are they in survival mode or are they actually doing quite well despite the current circumstances? Because we use that information to then determine, well, what exactly is it that I need? Okay. Because what you need when you're in survival mode versus what you need when you're in thriving mode is going to be different. So we need to consider that first and foremost. But then I think, again, it's about coming down or thinking about, well, what is the tool set I have? Like, do I have the resources to achieve my goals, meet my challenges and be the best I can be? What's the mindset that I have? Am I going in there, as you said, with that positive mindset or am I thinking a bit negatively

and what are those beliefs that I have? We need to realize that a lot of the things that we do need, the good news is that they can be learned and they can be strengthened. So sometimes these things we're not born with some of them we are or we're naturally inclined um to have them but some of them do require work um and even though i always say you know they're not um they're not rocket science intuitively they make a lot of sense even though they are based on science but the problem is we unfortunately belong to workplaces or systems or communities or cultures that actually stifle some of these elements. So they make it really hard for us to focus on them

or be successful in some rounds because they discourage them or they make it more challenging for us to occur. So these are the things that we absolutely have to be intentional about and focus on. And unfortunately, when we are stressed out and we're feeling the pressure, we often default back to maybe some more of those negative types of behaviours to try and get us through.

but they don't really get us anywhere. So we have to be intentional. We have to take the time and the effort to really focus on those things that are going to set us up to not only survive, but also thrive during those challenging times. Yeah, very well said. There's a lot of gold in there

if people actually take the time to get self-aware about where they're at and what they're doing and make some shifts and change some habits that are going to lean towards that sort of optimistic outlook on life. It's amazing what's going to happen. We see it a lot in property where people will talk themselves out of buying property because there's always a reason not to. You don't have to look very hard to convince yourself that it's not the right thing to do,

but those that actually take the plunge, if you look at it year in, year out, those that have taken the action have reaped the rewards. Those who procrastinate and sit on the sidelines are always saying, if only, if only I did this, if only I did that. So I look, I really want to thank you for all of these really practical insights, Anna. And they're clearly going to be in increasing demand as the years unfold. So we really appreciate you joining us here on the Property Hub and sharing all this with us today. So thank you. My pleasure. Thanks for having me, Bushy.

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