Owen: Owen Davis here from Leifield Real Estate here with another interview with a buyer's agent this time Christine Rutledge. Thanks Christine.
Christine: You're welcome.
Owen: Now I wanted to have a chat to Christine today about where the market is but firstly can you tell us your experience with the property investing and what you do with your clients and what experience you had.
Christine: My husband and I we've been investors for 13 years now. We started our journey back in 2006 when we had a little one and one of our interests was property and looking at what we could do about retirement. And part of our strategy was property. I'm a former lawyer I was a lawyer for 10 years before that I was in insurance for a couple of years dealing with property claims, motor vehicle claims and CTP And then I have been a buyer's agent for the last nine years. So I've been essentially negotiating settlements and properties for the last 20 odd years.
Christine: Right. Okay. So so many many transactions. Many many transactions. just in the hundreds or would you be over the thousand mark now no no well actually when you take into account. Yeah well the conveyancing and yes. Okay.
Christine: So a lot a lot of talking in those years, and from your experience.
Christine: what are the, how many bad experiences versus good experiences have you had because a lot of people hear in the media about all of the bad experiences with being a property investor. I think as a property investor it everybody needs to have a bad experience in order to learn from it and hopefully then I can teach others about how to avoid those bad experiences.
So a lot of it comes down to making sure that you are involved with people who are experts in the industry so making sure that you've got a good broker you've got a good financial adviser, accountant so people that you can talk to and deal with property every day.
And then when it comes to buying property making sure that you have got a really good conveyancer or solicitor and a good property manager on hand.
Yes because once the property’s purchased you rely on those managers to look after your investment . . . Yes.
And we have a good property manager and we've had that experience and so often it takes a couple of times to find the right property manager. But when you do you stick with that property manager. And that's just part of the learning curve. And I think that everybody needs to go through probably some negative experiences in order to be able to then realize what are the essentials to make the property and make sure that property stays in your asset base for as long as you can.
Okay. And what is it you are working with clients at the moment for buying investment property.
So my portfolio of clients is probably the 80 70 80 percent are investors the other portion our principal place of residence although that may change most of my investors based purely on budget are up in Queensland so people with a sub 500 sub 400 budget. So a lot of them are in the surrounding areas of Brisbane so North. The Moreton Bay shire south the Logan shire and to the west in Ipswich shire they are looking at properties with a value purchase price between three and four hundred thousand dollars . Most are sort of set and forget but a lot of people are looking for that value add potential so granny flat potential or upgrading cosmetic upgrade potential most my clients but in saying that I've got a few that are looking at Central coast Wollongong.
Okay. So purely on price point not too many in Sydney you might quite get the cash flow in Sydney but those other areas mostly up in Queensland you've got the cash flow as well as huge growth potential as well.
[00:04:04] Okay. Yeah. So there was a question I was going to ask do you see the growth potential in in Brisbane south east Queensland being much greater than any other area at the moment.
[00:04:14] Just based when I'm looking for my clients I choose those areas because it's got all the factors for growth So first and foremost is that population growth. So for example Ipswich is currently around 200,000 people mark.
[00:04:28] But in the next 10 or so years it's expected to double to four hundred and fifty thousand people.
[00:04:35] So that's a major part of of the potential growth for an area. Other things such as infrastructure.
[00:04:41] So looking at what the government's spending money on so the aim to be a vision of the entire surface city people live get him to as well that goes in and out of Ipswich they've got the M1 that goes up and down the coast as well they've got train lines that are being extended as well
[00:04:58] Costco is going or being built in a suburb called Bundamba Ipswich which is you Tend to follow those big players as well as they have done a lot of their research. Yeah. Good schools. Good. Commercial areas. They're all the factors for growth so when you are looking at a property whether it's in a Smaller Budget range or a higher one you still need to look at all those factors for growth. And you mentioned you touched on a.
[00:05:24] Couple of minutes ago about doing more owner occupied purchases for clients. Is that purely because of the drop off in the investor interest and the finance issues.
[00:05:36] The investors are definitely still interested but the main barrier for entry into the investment sphere has been lending. So the last twelve months has been quite difficult and following the Royal Commission and the issues that brokers may or may not have in the next 12 months or so. Lending has definitely dropped off to those investors so I have been focusing a lot on the principal place of business actually.
[00:06:00] I've been asked a number of times over the last couple months. It is the market going to keep on dropping or have we reached the bottom bottom or does that even exist across the whole market.
[00:06:11] I think a lot of that will depend on lending. supply and demand so if you have a lot of people that want to buy if they haven't got money they won't be out there looking. So there'll be an excess supply that will have a downward pressure on price.
[00:06:24] A lot of it the drop off in the in the Sydney market has been because of people not being able to get finance and that's going to be a major factor. So it's supply and demand if they haven’t got the money they can't get out there looking at properties.
[00:06:39] OK. And so further over the next year or two in terms of where the market is going, watch this space I think, a lot of it will depend on being able to borrow.
[00:06:49] And I know that a lot of my clients that could get a lot of money before but can't get as much.
[00:06:54] We've still got that focus in those affordable areas but areas that have got good growth potential and good cash flow like in Queensland so at the moment. That market's been relatively stable it hasn't had the full effect of the royal commission and the changes in the lending over the last twelve months and that will go forward in the next 12 to 18 months as well.
[00:07:17] Okay. So from the sounds of it it seems like you have this focus about helping your clients getting into a property that's predictable in terms of cash flow and if they can get capital growth at some stage it'll happen and it's really going to happen when it happens.
[00:07:34] I want my clients to be able to sleep at night and not to stress about things and I think that's really important when it comes to property and then buying more property.
[00:07:42] If they can't sleep at night worrying about the first one then they are not going to go to the second and third so clients that are looking for something that's low risk but still got all the factors for growth and good cash flow so that they're not up for a huge shortfall. That's something that I always say to my clients. Let's have a look at that.
[00:08:01] But if they're high risk people then obviously we'll look at something that's got more growth and less cash flow. I think every client different you've got to look at their respective their budget their experience.
[00:08:12] And cater towards their individual needs. It's no one cookie cutter that fits everybody.
[00:08:18] Everybody's different. Yes you've got to cater for each client.
[00:08:22] So great Christine thanks for joining me today. You are most welcome and thank you everyone. No matter where you watching or listening to this if you have any questions for us or any comments feedback good or bad we want to hear from you. And yes our Owen Davis from Leifield Real Estate we're here for the property investor. Thanks.