Property Hub - Investment Insights & Inspiration - Realty Talk: Inflation Lessons and Remedies + Controlled Negotiation

Episode Date: April 28, 2023

You could be mistaken for thinking that this week’s show is a little over inflated! Veteran AMP Chief Economist Dr Shane Oliver, kicks things off by sharing inflation lessons from the 70’s, 80’s & 90’s that help us understand how best to handle inflation pressures now.  Bushy explores effective alternative ways to manage inflation with a sole reliance on interest rate movements and the resulting impacts on property values. Kevin Turner continues our special series on the art of negotiation with Cate Bakos.  This week they discuss understanding selling agent rules and how to avoid losing control of your property negotiation. RealtyTalk is part of the Property Hub podcast channel, your home for property investment insights, inspiration, and stories from Australia’s top property experts, investors, leaders, and analysts. Subscribe now to get every RealtyTalk episode delivered to you each week for free, and also get full access to Get Invested, the leading podcast for Australians who want to unlock their full ‘self, health, and wealth’ potential and get inspired by the stories of investors, founders, and entrepreneurs. Subscribe to RealtyTalk on the Property Hub channel: Apple Podcasts | Spotify | Google Podcasts | Email 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. Business and partnership enquiries: [e-mail] omnystudio.com/listener for privacy information.

Welcome to Realty Talk, the show that brings together the country's most authoritative and respected property experts. Follow us on all the socials and subscribe for updates and exclusive offers. Realty Talk is powered by realty.com.au, connecting buyers, sellers and agents differently. Welcome to this week's Realty Talk show, your property hub's trusted voice for property investment insights, inspiration and stories from Australia's top property experts, leaders and analysts. I'm Bushy Martin from KnowHow Property Finance, and this week you could be mistaken for thinking

that this week shows a little overinflated. Veteran A&P Chief Economist Dr Shane Oliver picks things off by sharing inflation lessons from the 1970s, 80s and 90s that will help us to understand how best to handle inflation pressures in the present. I then do a deep dive to explore more effective ways to manage inflation that overcome the unnecessary impacts and property values that result from our current sole reliance on interest rate movements. And to round out the show, Kevin Turner continues our special series on The Art of Negotiation, where he talks to Buyers Agent Cain Bakos about understanding selling agent rules and how to avoid losing control of your property negotiation.

Now, before we get underway, if you're enjoying the show, we really need your help. In order to continue to attract the best guests to share their insights and innovations, Could you please do yourself and the world a massive favor and take just a couple of seconds required to hit the subscribe button wherever you're listening to or watching the show because for every new subscriber, we'll donate a day's worth of life-saving water

to families in Tigray, Ethiopia. So make the world a better place by taking a couple of seconds to subscribe now. And make sure you also sign up on the realty.com.au homepage where you'll also get a free copy of my wall money book get invested just for making the effort we've got stacks to unpack so let's get on with the show 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. With high inflation and rising interest rate fears dominating nightly news and the headlines, we're constantly hearing public comments along the lines of why are we so worried about a bit of inflation? And why is the RBA inflicting so much pain?

This is where a walk back through our inflation past can be really instructive, because unfortunately, in our current instant everything myopic world of constant noise, our memories seem to have faded and what we learn from history is that we don't learn from history but if we don't learn lessons from the mistakes of our past we're bound to repeat them so today we're going to try and change that in our current times of high inflation what can we learn from similar periods in the past in terms of how best to control and manage interest rates inflation pressures and overall economic stability thankfully a revealing insight paper has recently been written on this and to unpack the details, we're joined by its author, Dr. Shane Oliver, who's also

AMP Capital's Chief Economist and Long-Term Head of Investment Strategy. So, welcome back to Realty Talk, Shane. Great to be here, Bushy, and thanks for having me. Now, I always enjoy your insights, mate. I've been following you for decades now, actually, and your insights are always on the money. But, mate, sort of jumping into the topic of the moment, as we say, you know, high inflation and its management is a subject that's much talked about, but unfortunately, very little understood. So to create some sort of historic context as relevant to our current conditions,

the 1970s, as you pointed out, is often referred to as a painful period of high inflation that had long lasting ripple effects into the 1980s and 90s. So can you start by painting a bit of a picture of what the economy and inflation were like in the 70s and what was driving conditions at that time well things were pretty messy and quite uncomfortable in fact it was a decade that encouraged a lot of nostalgia you may think of the tv series happy or american graffiti the movie happy days laverne and shirley uh that was also the decade where we started to see nostalgic radio stations you know they'd play the hits of the 50s and 60s because now we have of the 60s 70s and 80s but uh it was a period where the times were so messy