Matt Ball: Property Investors Federation Advocacy Director on the life returning to the property market

A bit of life is coming back into the property market, but investors think the best is yet to come.  

The CoreLogic October Housing report has found almost a quarter of the properties bought were by people who own multiple properties.  

The Property Investors Federation says there should be a pickup mid next year as mortgage rates continue to fall.  

Advocacy Director Matt Ball told Ryan Bridge there are some bargains to be had. 

He says some investors are buying up run down homes and doing them up for a profit. 

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Episode Transcript

Speaker 1 (00:00):
Looks like investors are starting to return to the property market.
This is a new core Logic report out this morning.
It finds that in September, mortgaged multiple property owners made
up twenty two point six percent of all sales. That's
up from a record lower year ago twenty point four.
Core Logic says investors are the group to watch coming
into the new year as interest rates continue to fall.

(00:20):
Matt Balls with the Property Investors Federation. He's with us
this morning. Matt, Good morning, Good morning, Ryan. How are
you we dang good, Thank you, thanks for being with me.
This is still low by historical standards, but early signs.

Speaker 2 (00:35):
Yeah, I think this is spot on. Actually, we're noticing
similar signs as well. Your investors who have got cash,
they are going to be first off the block, and
that's the one that I'll be watching first, and then
mortgage reliant investors will be on after that. I mean,
that's not to say people aren't out the inbound looking
for bargains, and you know, some of our members are

(00:57):
out there buying the rundown properties are and making good
money out of it. You know, you get a better
return once you've done up a property. You're providing a
nice new home to people. So that's fantastic. And our investors,
our members tend to be probably slightly ahead of the market.
I would say they had access to good advice from

(01:17):
some of our older investors.

Speaker 1 (01:20):
Who is investing. I'm not imagining that this will be
our mum and dad's with one extra property going out
in force at the moment, it's your older investors with
multiple freehold properties. I would imagine.

Speaker 2 (01:35):
What we're finding is that it's actually a mix rome. Yes,
some of our older investors or more experienced investors are
cash who don't rely on mortgage are out there and
they're looking for bargains. But I can give you of
an example of a members, a single income home family
and who has been out there brought a couple of

(01:56):
properties in the last twelve months. These are pretty runs
out of properties and they've done them up and they're
now fantastic rentals and they're making that person's income. So
your argons are out there if you're prepared to put
in the time and do the hard work. So person,
I'm thinking of that all the renovations themselves.

Speaker 1 (02:16):
In terms of the interest deductibility at eighty percent, you know,
the interest rates coming down, What is the bigger factor.
It's probably interest rates presumably rates lyiring, rather than the
interest deductibility. They both help.

Speaker 2 (02:31):
Yeah, I look, they both help. I think interest deductibility
gives people confidence. That's not something that gives you a
big pile of cash. But you don't actually see any
money from that. It's just that the government doesn't extract
as much from you at the end of the year.
Interest rates going down, yet, that is going to be
a fact. But don't forget this is a lagging impact.

(02:53):
Most people aren't feeling that impact straight away. Two thirds
of mortgages are fixed, but due to rollo the next
twelve months. So it's it's over that next twelve month
period that you're going to start to see this impact.
And so I'd say you'd be looking at second half
of twenty twenty five or fourteen's really start to back up, right.

Speaker 1 (03:14):
Matt, Thank you very much for that. Matt Ball the
Property Investors Federation talking about the Newcore Logic data out
this morning, saying property investors are slowly creeping back into
the market. I suppose everybody is really as interest rates
come down. For more from earlier edition with Ryan Bridge,
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