Owen: Hi. Owen Davis here again from Leifield Real
Estate here with Tim Nimmo from I4 property who is a buyer’s agent and he works
with us referring property management to us across the eastern seaboard with
Sydney, Melbourne and Brisbane. Tim, tell us a bit about your story of property
investing and how you got started in the industry.
Tim: Look I started as a tradesman so I was an electrician
many many years ago since I’m in mid 40s now. I become a tradesman at 19 and at
19 I bought up my first property. In Epping(Owen: That’s Epping in Sydney) And
I was fortunate enough to find a sub dividable block and I didn’t really know
what I was doing and I stumbled across this opportunity and I was able to
subdivide that block and made some good money out of that property. So that
gave me the taste at age 19 i wanted to
get involved to property and investing and so after that I just went on each year
to build and develop my portfolio.
Owen: And how had you go from there to now becoming a
buyer’s agent and helping other buyers on property. And is it mainly investment
properties or help people with owner occupied purchases as well.
Tim: Yeah investment is really our forte. We prefer
investment because that’s my experience and what my business partners
experience. But we will help the owner occupier. Look I think what happened
with us is because we did so many transactions ourselves both personally and we
learnt so much and you learn from your mistakes. And so now I guess we have
learned from all that over the last 15 20 years. So okay When a buyer comes to
us and we are buyers agents. We know you can jump on basically our shoulders
and we can kind of help you
steer through that maze of property investing. Because as things are
right now the market place where if you’re a Sydney sider, which I am. Every second day in the paper there
is a negative story out there about property, don’t buy the market is coming
back But in fact there
is over a hundred areas I know of that are growing outside of Sydney so there are opportunities to invest
today and interest rates are at the lowest levels, so there is an opportunity.
Owen: Now I know you do a mix with your investor
clients a mix of brand new as well as existing properties. Why do you deal with
a mix and what is the difference?
point of view with working with clients help them to work out what they should
Tim: Yeah it comes down we find a personal
preference. When you buy
established properties there’s obviously inherent risk because the
property is old and there’s going to be things you have to improve and change.
However we find that you can negotiate much better with an established property.
So our mix at the moment is about 50 50, 50% will buy brand new and 50% buy
established property. I have a client right now
Dave and Dave has a self-managed super that is just set up he has a
borrowing capacity smaller amount and so that he limited his ability to be able
to buy new. So we’re finding him an established property right now. So again it does depend on the client’s
desire, his needs and what the market is doing because you don’t want to
buy in a market with these hundreds and hundreds or thousands of units or
hundreds and hundreds of brand new estates in one area because it could be an
oversupply of brand new.
Owen: Actually we were just talking with a mortgage
broker who works closely with Tim and his clients. What has the impact of the
credit environment in the last 12 months with what APRA started a couple of
years ago and now. The banking royal commission is
having the effect on the credit market. How have you found that has influenced
your decision about what people are buying.
Tim:Yeah. Okay. Well I think what’s happened is it’s created a negativity in the
minds of investors as they think it’s a disaster. It’s bad out there but
in fact we’ve seen second tier lenders or nonbank lenders growing 10 percent
just in the last quarter. So money
is still readily available. I think it’s the person say in Sydney who
their house was worth 1.5 a year ago might have dropped down to 1.3. So if
you’re tapping into the equity of your existing home that could be a bit of a
challenge. You might not be able to borrow as much as you first thought.
Owen: All right.
And were now we’re halfway through January and the New Year 2019.
have you seen a
change in the market in either just before Christmas or in these first couple
of weeks to the new year and what do you see thats happening. What are you
talking to your clients about at the moment
Tim: with clients right now we are talking to them
and showing them the opportunities that are growing but there’s probably two
major factors we’re looking at this quarter. We have. The royal commission
findings and basically they’re laying down the law about what’s happening in
the banking industry at the end of February. So that’s one big thing. We’ve
also got a state election. We have a federal election over the next six months.
So when these things happen people can kind of put the brakes on sometimes what
I say to my clients this is good because when people are sitting back you can step forward into
opportunity. So right now I’m finding I am able to negotiate even more
and greater amounts that I could in the past because some people are gun shy.
And so that means that seller may only have one person wanting to buy it so all
of a sudden we can negotiate further. So right now it’s actually become a
buyer’s market in a lot of places in Australia.
Owen: All right well thanks Tim that’s great insights
from you and look forward to continuing to work with you into the future. And
if that was good for everyone who’s watching and listening please give us some
feedback good or bad.
We enjoy it all but if you’ve got any
other questions or topics that you might like to talk about please let us know
Here at Leifield Real Estate which is for the property investor.
Owen and Tim: Thanks!