[Podcast] Why I never believe the property naysayers (and you shouldn’t either)

Today I’m going to share two interesting topics with you.

First, I’m going to explain to you why I don’t believe the current round of property naysayers and I hope by the end of today show you won’t believe them either.

Then I’m going to be chatting with leading artificial intelligence expert Dr Catriona Wallace who has been recognized by the Australian Financial Review as the Most Influential Woman in Business & Entrepreneurship.

Dr Wallace predicts robots will be a key part of business teams by 2030.

You probably listen to this podcast because you want to understand more about property investment, success, and money, so what does artificial intelligence have to do with all this?

Well, by the end of today’s show, you’ll find out.

Why I never believe the property naysayers

Remember in early 2020, when media headlines were awash with ‘doom and gloom’ predictions about Australian property prices?

Several predictions, forecasts, and financial modelling papers were released, and the information contained within them was not good news.

Well, the property market didn’t collapse – did it?

The value of almost every property in Australia increased considerably, some by as much as 30%, and over $2 trillion was added to the total value of the residential property market in 2021 last year alone!

If property prices didn’t crash, what were all these predictions about, then?

First, it’s important to understand that some of these forecasts were not coming from “dodgy” sources.

No, it was the opposite: research reports and studies were being released then by all sorts of reputable industry groups and organizations, from economists and major banks to the Reserve Bank of Australia.

But just because a prediction, forecast, or economic modelling report is coming from a well-known or trusted source doesn't mean they're always going to be correct.

What they are doing is taking a set of data and then they’re using their expertise and analysis to make a forecast, which is really nothing more than an exposition about what could happen.

Another example of financial “experts” getting it wrong related to JobKeeper and all the other financial boosts the government provided, which either ended or were wound back around September 2020.

Many predicted we would fall off an economic cliff and the economy would be decimated come September 30th, 2020.

Well, we didn’t fall off that cliff, just like we didn’t fall off the cliff that so many nervous Nelly’s suggested would happen when several investors’ interest-only loans reverted to principal and interest.

And they're at it again, aren't they?

Again, we are in "interesting times" - booming inflation, rising interest rates, worry about our economic stability and the media is once again full of pessimistic predictions, some from the same people who made the ones I've just quoted.

The banks are predicting property values might fall 10% to 15% in 2023 and one prominent commentator is suggesting a 30% fall in Australia's housing markets is on the cards.

When that feeling of uncertainty enters the picture, I think it’s important to focus on the facts.

Sure, selected segments of the property market have significantly fallen in value for a period, but the "Australian property market" as a whole has never experienced that kind of fall.

And considering the current state of the economy, our financial health, and undersupplied nature of our housing markets, there's no credible reason to suggest a fall of this magnitude should happen now.

AI expert predicts robots will be a key part of business teams by 2030

Artificial intelligence today is properly known as narrow AI in that it is designed to perform narrow tasks.

This includes things like only facial recognition or only internet searches or only driving a car.

While currently, AI may outperform humans at whatever its specific task is, like playing chess or solving equations, what’s ahead for Artificial Intelligence?

That’s what I’m going to discuss today with my guest Dr Catriona Wallace.

We know there’s a shortage of skilled labour in Australia, and while on the one hand, we are hoping this will be assisted by increased migration, maybe there’s another answer?

My guest today, leading artificial intelligence expert Dr Catriona Wallace predicts AI-powered ‘robot’ colleagues will be a key part of business teams by 2030, helping to combat skills shortages, as Australia undergoes a significant post-pandemic digital transformation.

Dr Wallace has been recognized by the Australian Financial Review as the Most Influential Woman in Business & Entrepreneurship and is an expert in the field of Artificial Intelligence and is an Adjunct Professor, and a founder of one of the first Artificial Intelligence companies to list on the Australian Securities Exchange.

The emergence of ‘machine mates’ (human-AI teams)

• AI will move from tools to teammates, with widespread virtual assistants helping people complete everyday tasks and work.
• Digital employees will be considered intelligent, valuable co-workers, and by 2025, machines will spend more time completing work than humans.
• Organisations will engage employees and customers more effectively with an AI-first approach.
• Perceptions of AI will move from ‘tools’ to ‘teammates’. The automation of routine tasks will give people more fulfilment at home and work.
• AI will enable employees to be understood and treated in a similar way to customers.
• Leaders will increase productivity and well-being by spreading work more evenly between humans and technology.

I’m sure you’ve seen science fiction movies where robots with AI take over the world. How should we think about ethics and responsible AI?

AI ethics will move from an academic discussion to business strategy.

Employees and customers will choose to work with brands that demonstrate ethics, accessibility, and fairness.

How has the pandemic and the work-from-home revolution changed things?

• The pandemic provided employees and customers with time to better understand themselves and their personal priorities.
• It also shaped new attitudes to technology, with two distinct tribes emerging depending on how much and when people see tech as useful.
• This is rapidly translating into increased demands for personalized experiences, setting new standards to attract and retain customers and talent.
• Investment in policies, security, and both digital and analog processes, will help information and skills flow across physical and digital borders.

Links and Resources:

Michael Yardney

Dr. Catriona Wallace

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Some of our favourite quotes from the show:

“There was no denying, at that stage, 2020 was a very confusing time, one that tested the resolve of many experienced investors.” – Michael Yardney

“In other words, we’re in a multi-speed property market. But this is more normal than the type of market we experienced last year, where almost every property increased in value at the same time.” –Michael Yardney

“What I am saying is there’s no property crash in sight.” – Michael Yardney

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