"Spruikers and spivs on the roadside of life." - Paul Keating. Honestly? REITs are suddenly spruiking to retail investors anyone would think they're trying to offload. Basic research will tell you the commercial sector is on the nose and the only thing holding up residential is the massive influx of migrants and CGT breaks. Interest rates are nosebleed high there are pressures coming not just from the cost of materials but the inevitability that high interest rates are needed to attract funds to support the banks and debt repayments. The exposure of Australia to the residential market is frightening. Bricks and mortar shops are on the nose, office space is on the nose and we get this guy. Also surely LIvewire markets can afford a second camera and autocue so the presenter is not flagrantly reading off notes that are written as if she's having a conversation when in reality she is just reading off some pages of paper. It's just so wrong! Keep it real a correction is coming and many Sophisticated Investors have bailed out and created a hole this guy is trying to fill.
Deborah I appreciate Paul's sentiments - my political hero - but funny what they say about politicians too. I dont need anyone to fill any voids, vacancy rates are low and there's no major supply. Shopping centre vacancies in many market at or near historic lows. Have you ever heard a retailers say "my rents are too low"? Seniors housing shortage, data centres, warehouses all with low vacancy. Have you stayed in a hotel lately, ridiculous room rates. Even quality office buildings are doing ok. By all means avoid b-grade office as we do. As I've said, I've managed peoples money for 30 years and I've always given it back within a short period (i cant think of anytime more than 7 days). I dont know too many other real estate investments with that liquidity. We do our best, BUT no guarantees, it's a cyclical asset class so you need to have a long term mindset. we are not a get rich quick scheme, we just try to offer a sensible investment with liquidity.
Why don't we have a discussion how this bloke and REIT is part of the housing problem? This type of investment should be illegal, especially since; and I quote "housing is simple supply and demand" 👎
not sure how we are part of the problem - we provide money for investment in real estate. The problem is not enough people are investing in the right areas, they're off putting it in crypto and NVIDIA/AI and gold and other sometimes dubious avenues.
Investing in real estate in direct competition with young people who want to buy a house to raise a family should be made illegal. Homes are not financial instruments. Commercial real estate is dead now that people are working from home and shopping online. So now residential properties are seen as the next big opportunity for these investment funds. Its wrong.
Who do people rent off, if not the investor? And if there are no rentals does that mean everyone can suddenly afford to buy? Does buying even suit everyone? So yeah, let's demonise the investor and see even less homes built. No highrise living, no apartments blocks, no units, houses, ect. The only thing to blame for high prices are banks & government. Banks lending too much and increasing the money supply. Government, never allowing market corrections, plus red/green tape stopping building, keeping supply small.
Such a stupid comment on landlords not wanting to refurbish when rent is controlled. It's opposite. We see so many sh*tty houses here in Australia because the landlords know very well that they will get the place rented and upgrading isn't logical because there is no competition.
These interviews are off the cuff, not long winded dissertations. You cant get all your points across in a short period. Can I recommend you travel to other cities eg Toronto, NY, Berlin where rent controls have resulted in slums and/or very old housing barely fit for purpose. You are correct in a tight market there is less money spent on refurb, but the OVERALL (not ALL) quality of housing is better in Australian cities and why we need competition. If we dont see supply and vacancy remains lows the stock will deteriorate. Its a complicated issue and no simple silver bullet solution.
@aparsons9710 I think you associate rent control with separate issues that led to some areas being dodgy. I lived in Berlin for a long time to see that it's not the rent control. I can give you an example of Switzerland where rent control is exteme yet no slums at all. Rent control limits the number of ghost apartments and makes short term investing rather unprofitable. There are more places for rent and owners try harder to attract tenants.
"I'm not blaming it all on immigration"...Please do. That is exactly what we should be blaming our current predicament on. Of course, we need immigration to fight demographic issues, but at the current rates it is simply unsustainable and problematic, a circumstance faced by many developed nations right now. Increasingly immigration will dictate politics going forward to the point where if you follow historical precedents it can reshape societies entirely. So, immigration deserves a huge amount of attention, blame and discussion right now. The worst situation is a refusal to talk about it or make it a partisan issue.
Supply chains are broken, people are going back to the land and growing their own fruit,vegies,meat etc which is a healthier life style and better environment to raise children
problem with REITs is if lots of people want to sell then they have to sell some of the underlying property and may stop allowing people to get their money out.
Very informative discussion. Correct on many points. Higher density to consolidate resources is the answer, that's why State & Local govt have devised Tier One suburbs as priority along infrastructure. Tier 2 & 3 will be built after 1. If there's a demand then things will get moving.
A better breakdown is available. Do your own research on the following: The govt sector (workforce not incl military) has, in effect, economically enslaved a largely disarmed civilian (workforce) population on a gearing of 1:1.60 against(not incl entitlements package) based on av yearly income. Govt sector is heavily over represented in rental property ownership. Govt sector has the economic leverage(unfair buying power) to "outbid" private/military workforce sectors and thus unnaturally drive up housing values/costs. As an example Qld Govt marketed "community" housing projects directly to its Public Servants (and educating them on quantity surveying, neg gearing, tax offset, ABN/ACN's) knowing full well they've got the "disposable dollar" income for such. Most Nations we trade/compete with disallow this as it leads to corruption and damages balance in economies.
It is right to be cynical - please look at our +25 year investment track record, and over 15 years investing in global listed real estate. Past performance is no promise of the future but we are pleased with how we have managed our client's money over the long term, through good and bad days. Unlike other real estate related investments, we have never suspended redemptions. It's about having a long-term perspective and right now we see reason to be positive....and a few reasons to be worried too. That's the nature of investing.
@@petebeaumont253 i did say if you kill demand will solve the affordability issue, hardly a great solution. But how do you stop people wanting to live in great cities AND keep them vibrant? hence, you need thoughtful supply - including affordable and social housing - in conjunction with services and infrastructure. That's my point, that's the challenge
The bricks and mortar economy was key to the Analogue economy of last century. The future is now and it’s Digital. We are seeing capital seep out of property and into Digital property and tech.
Building costs and the cost of all goods and service have been inflated in line with the rise in the increase in total money supply. The RBA and commercial banks are to blame for dropping interest rates to near 0 levels for such a long time. Increasing the suplly of money via increased debts chasing limited available resources is the problem. When the cost of loans is next to zero of course inflation is going to come.
Some of these comments are completely ridiculous. I have owned REITS for years and the DIVS have made me a small fortune. I also sell them when they are over valued and buy when the sky is falling and the world is going to hell in a hand basket. MGR, VCX, SCG have made me a lot of wealth, I think those comments in here that don't know how a REIT works and have missed out from creating wealth and will be poor for the rest of your life is your own fault. Would I buy a used car off this guy... "NO"...and would I buy into his REIT...."NO"....but with what I have owned and still do own, I'm happy. If you are poor or have no money, so sad too bad..."ITS YOUR OWN FAULT"...so stay poor !!!
There used to be but now most peoples perception has been changed from "work hard get rich", to "borrow hard do jack and get rich". Not great for many people in the long run.
Solution End negative gearing. Prices will not come down until it happens. Supply and demand topic raised by same investors who raped housing industry. 2) affordable housing for lower income families by government schemes.
Australia is a Socialist country that has spent at least a 100 years conning the Americans that it is a Capitalist country.😂. Of course, nowadays even the Americans don’t know what Capitalism is.😂😂😂
I would suggest that is the time to buy. I find it crazy that no one was buying Perth property in 2019. Prices are now up 60% or more, but go to an open home, and everyone is climbing over each other! Some REIT's are 1/2 the values of 2019!
she should stop whatever she is doing with her hands i had to stop watching after 1.5 minutes or so, to leave the comment and then now - go watch something else.
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"Spruikers and spivs on the roadside of life." - Paul Keating.
Honestly? REITs are suddenly spruiking to retail investors anyone would think they're trying to offload.
Basic research will tell you the commercial sector is on the nose and the only thing holding up residential is the massive influx of migrants and CGT breaks. Interest rates are nosebleed high there are pressures coming not just from the cost of materials but the inevitability that high interest rates are needed to attract funds to support the banks and debt repayments. The exposure of Australia to the residential market is frightening.
Bricks and mortar shops are on the nose, office space is on the nose and we get this guy.
Also surely LIvewire markets can afford a second camera and autocue so the presenter is not flagrantly reading off notes that are written as if she's having a conversation when in reality she is just reading off some pages of paper. It's just so wrong!
Keep it real a correction is coming and many Sophisticated Investors have bailed out and created a hole this guy is trying to fill.
Deborah I appreciate Paul's sentiments - my political hero - but funny what they say about politicians too. I dont need anyone to fill any voids, vacancy rates are low and there's no major supply. Shopping centre vacancies in many market at or near historic lows. Have you ever heard a retailers say "my rents are too low"? Seniors housing shortage, data centres, warehouses all with low vacancy. Have you stayed in a hotel lately, ridiculous room rates. Even quality office buildings are doing ok. By all means avoid b-grade office as we do. As I've said, I've managed peoples money for 30 years and I've always given it back within a short period (i cant think of anytime more than 7 days). I dont know too many other real estate investments with that liquidity. We do our best, BUT no guarantees, it's a cyclical asset class so you need to have a long term mindset. we are not a get rich quick scheme, we just try to offer a sensible investment with liquidity.
they are off loading --happening worldwide
Interest rates are at long term average level .
Why don't we have a discussion how this bloke and REIT is part of the housing problem? This type of investment should be illegal, especially since; and I quote "housing is simple supply and demand" 👎
The gall of them is unbelievable.
Most REIT's are not resi - think shopping centre not house.
not sure how we are part of the problem - we provide money for investment in real estate. The problem is not enough people are investing in the right areas, they're off putting it in crypto and NVIDIA/AI and gold and other sometimes dubious avenues.
REIT buy commercial not residential lol… read a book.
Can you explain how reits and people investing in property is the problem? I genuinely want to know.
If property keeps going up and wages don’t… we will have a big problem on our hands.
Right now, at a maintenance hangar in Brisbane, for Australia's largest airline, that problem is here now. We simply cant get 'competent' staff.
Have a look along your nearest suburban creek for the growing tent cities.
Investing in real estate in direct competition with young people who want to buy a house to raise a family should be made illegal.
Homes are not financial instruments. Commercial real estate is dead now that people are working from home and shopping online.
So now residential properties are seen as the next big opportunity for these investment funds.
Its wrong.
💯 agree. I've been saying this for years but most people don't want to hear it
@@GD-ev7lb Too many big egos with zero brains or empathy.
Who do people rent off, if not the investor? And if there are no rentals does that mean everyone can suddenly afford to buy?
Does buying even suit everyone?
So yeah, let's demonise the investor and see even less homes built. No highrise living, no apartments blocks, no units, houses, ect.
The only thing to blame for high prices are banks & government.
Banks lending too much and increasing the money supply. Government, never allowing market corrections, plus red/green tape stopping building, keeping supply small.
Such a stupid comment on landlords not wanting to refurbish when rent is controlled. It's opposite. We see so many sh*tty houses here in Australia because the landlords know very well that they will get the place rented and upgrading isn't logical because there is no competition.
These interviews are off the cuff, not long winded dissertations. You cant get all your points across in a short period. Can I recommend you travel to other cities eg Toronto, NY, Berlin where rent controls have resulted in slums and/or very old housing barely fit for purpose. You are correct in a tight market there is less money spent on refurb, but the OVERALL (not ALL) quality of housing is better in Australian cities and why we need competition. If we dont see supply and vacancy remains lows the stock will deteriorate. Its a complicated issue and no simple silver bullet solution.
@aparsons9710 I think you associate rent control with separate issues that led to some areas being dodgy. I lived in Berlin for a long time to see that it's not the rent control. I can give you an example of Switzerland where rent control is exteme yet no slums at all. Rent control limits the number of ghost apartments and makes short term investing rather unprofitable. There are more places for rent and owners try harder to attract tenants.
@@MaZ-tg7chprice controls create shortages.
"I'm not blaming it all on immigration"...Please do. That is exactly what we should be blaming our current predicament on. Of course, we need immigration to fight demographic issues, but at the current rates it is simply unsustainable and problematic, a circumstance faced by many developed nations right now. Increasingly immigration will dictate politics going forward to the point where if you follow historical precedents it can reshape societies entirely. So, immigration deserves a huge amount of attention, blame and discussion right now. The worst situation is a refusal to talk about it or make it a partisan issue.
1000% snowflakes get unhappy though
Supply chains are broken, people are going back to the land and growing their own fruit,vegies,meat etc which is a healthier life style and better environment to raise children
problem with REITs is if lots of people want to sell then they have to sell some of the underlying property and may stop allowing people to get their money out.
Property now has become less attractive, especially when Labor is in damage control..vic ..
Very informative discussion. Correct on many points. Higher density to consolidate resources is the answer, that's why State & Local govt have devised Tier One suburbs as priority along infrastructure. Tier 2 & 3 will be built after 1. If there's a demand then things will get moving.
A better breakdown is available. Do your own research on the following: The govt sector (workforce not incl military) has, in effect, economically enslaved a largely disarmed civilian (workforce) population on a gearing of 1:1.60 against(not incl entitlements package) based on av yearly income. Govt sector is heavily over represented in rental property ownership. Govt sector has the economic leverage(unfair buying power) to "outbid" private/military workforce sectors and thus unnaturally drive up housing values/costs. As an example Qld Govt marketed "community" housing projects directly to its Public Servants (and educating them on quantity surveying, neg gearing, tax offset, ABN/ACN's) knowing full well they've got the "disposable dollar" income for such. Most Nations we trade/compete with disallow this as it leads to corruption and damages balance in economies.
This bloke in this video simply spooking for people to buy his units. This is a commercial it is not information.
It is right to be cynical - please look at our +25 year investment track record, and over 15 years investing in global listed real estate. Past performance is no promise of the future but we are pleased with how we have managed our client's money over the long term, through good and bad days. Unlike other real estate related investments, we have never suspended redemptions. It's about having a long-term perspective and right now we see reason to be positive....and a few reasons to be worried too. That's the nature of investing.
As a reits investor, i would say this is the best interview i hv seen. Thank you for organising it！
Supply? cmon lets be honest.
Always talk about supply because it's that never ending issue. Never talk about demand the thing that can make supply irrelevant
@@petebeaumont253 i did say if you kill demand will solve the affordability issue, hardly a great solution. But how do you stop people wanting to live in great cities AND keep them vibrant? hence, you need thoughtful supply - including affordable and social housing - in conjunction with services and infrastructure. That's my point, that's the challenge
The bricks and mortar economy was key to the Analogue economy of last century. The future is now and it’s Digital. We are seeing capital seep out of property and into Digital property and tech.
Building costs and the cost of all goods and service have been inflated in line with the rise in the increase in total money supply.
The RBA and commercial banks are to blame for dropping interest rates to near 0 levels for such a long time. Increasing the suplly of money via increased debts chasing limited available resources is the problem.
When the cost of loans is next to zero of course inflation is going to come.
Some of these comments are completely ridiculous.
I have owned REITS for years and the DIVS have made me a small fortune. I also sell them when they are over valued and buy when the sky is falling and the world is going to hell in a hand basket. MGR, VCX, SCG have made me a lot of wealth, I think those comments in here that don't know how a REIT works and have missed out from creating wealth and will be poor for the rest of your life is your own fault. Would I buy a used car off this guy... "NO"...and would I buy into his REIT...."NO"....but with what I have owned and still do own, I'm happy. If you are poor or have no money, so sad too bad..."ITS YOUR OWN FAULT"...so stay poor !!!
Huge funds buy houses, so basically, people rent houses that their super paid for.
Australians by and large want this.......there is no other engine of growth!
There used to be but now most peoples perception has been changed from "work hard get rich", to "borrow hard do jack and get rich". Not great for many people in the long run.
correct......wages not going up, share market is controlled, where else to put spare money....
good discussion . waiting for the reit sector prices to bottom. then good buying
So in a nut shell " you buy housing shares from companys like blackrock " ?
Solution
End negative gearing.
Prices will not come down until it happens.
Supply and demand topic raised by same investors who raped housing industry.
2) affordable housing for lower income families by government schemes.
Australia is a Socialist country that has spent at least a 100 years conning the Americans that it is a Capitalist country.😂.
Of course, nowadays even the Americans don’t know what Capitalism is.😂😂😂
Who's paying this guy to talk up REITs? So obvious. They are in the toilet for a reason.
I would suggest that is the time to buy.
I find it crazy that no one was buying Perth property in 2019.
Prices are now up 60% or more, but go to an open home, and everyone is climbing over each other!
Some REIT's are 1/2 the values of 2019!
Can the title be considered clickbait😅
Some good thoughts there.
Bring on The FAVELAS!!
No, blame immigration. What is the benefit of high immigration?
120 seconds & I've heard enough 🙅♂️
trickle down economics also knowen as a golden shower
An old bald white guy doesn’t want urban sprawl. Tell me what is new 😏
Lol
she should stop whatever she is doing with her hands i had to stop watching after 1.5 minutes or so, to leave the comment and then now - go watch something else.
High tax country ! Most northern european countries arent better for home ownership
Why do people start their conversations with ,to be honest ,freaks me out .😂
I share your sentiment, I have been critical of this language when used by others.... and then I did it!