Richard Branson said in his book, Business Unstripped, that the greatest level of entrepreneurialism he has experienced was in the places where people have nothing. It is from these meagre roots that people find a way, not only to survive, but to achieve great things in their marketplace. We in Australia are far from impoverished or from meagre roots, but we feel that anything other than a perfect economy is something to be depressed about.

The property industry is in a state of flux; there is much to be concerned about and much that can upturn what we have experienced in the past.

• In 2017, the Commonwealth Government amended the Corporations Act 2001 to affect the obligations of financial advisors. This will impinge upon the financial advisors ability to provide advice in relation to investments. They will be required to show a duty of care and due diligence and almost places to high a risk upon a financial planner to provide advice.

• State Governments have hampered international trade by creating a 12% levy on stamp duty for all overseas buyers. In a marketplace where between 5 and 10% of business comes externally to Australia, this is a negative outcome to the industry.

• The marketplace has slowed down and the journalists have loved advertising the difficulties.

• The Property, Stock and Business Agents Act 2002 will be amended to reform the real estate industry. It is designed to be the largest and most radical reform since 1941. The Commonwealth Government is intending to reform mortgage brokers.

• We have a banking Royal Commission and report to follow. The banks have reacted to the Royal Commission by curtailing lending. The State Government has suffered an $8 billion deficit because of properties not being able to settle.

• We have two elections this year. One of those elections will entail a government coming to power which wants to promote the removal of negative gearing.

Yes, there is probably more. Moreover, there is good reason to be concerned and this will lead to many people being depressed about the market. It is true, what was before will not be in the future.

History has shown that difficulties lead to positive outcomes. One should ask themselves where we would be without the first and second world war in relation to sonar, telecommunications, air flight etc. The greatest inventions were made during recessions, not in periods of growth.

This is a year where those who are innovative, entrepreneurial, adaptable, organised and have the ability to develop community that will make the difference. If you hope it will stay the same, 2019 will not be a happy time. If you are a person who can adapt, innovate etc, the world is your oyster.

The property market always adapts and finds a way to recover. This is because of its adaptability and the people within it who will innovate and create new mechanisms to make it work. Leverage is already working with people who have started this innovative approach to business and the property market. Leverage looks forward to the newcomers, the innovators, the disruptors and those who need to adapt their business to cope with a rapidly changing business. Things like e-conveyancing which commences on 1 July 2019, change the marketplace, but will make it more efficient and more accessible for those outside the market. Will the banks stop lending forever? Absolutely not! If they do, they don’t have a business!

2019 should start the age of the entrepreneur. Those with an entrepreneurial spirit and intellect will not only be the ones to survive but the ones that thrive. These difficult times should not be seen as a problem but an opportunity. It is those who can see and grasp those opportunities who will be the ones who continue to grow. As Napoleon Hill said in his book, Think and Grow Rich, “whatever the mind can conceive and believe, it can achieve”.

 

This article was written by Bailey Compton, Principal Solicitor & Director at Leverage Group.

To get in touch with Bailey, please email info@leveragegroup.com.au or call 1300 438 538