Property without the mortgage? Andrew Parsons on REITs and real assets

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**Owen Rask** (1:29)
There's a lot going on in property right now, whether it's tax, interest rates, inflation, property prices, there's just a lot going on. So who better to get in than someone that's seen a few market cycles, someone that's been investing in property or in the industry for probably 30 years. In today's episode, we're going to hear from Andrew Parsons, who's the Chief Investment Officer and a founding member of Resolution Capital. Andrew's speciality is investment property, but on a global scale, he invests in real estate investment trusts and all across the board, is really interested in what we call real assets. These are the things that you can touch and feel. The things that actually provide tend to be more predictable styles of income and long-term capital appreciation. In this episode, we talk about Australia's love affair with property, in particular, resi property or residential property. But then we take a broader lens and we look at, what's the difference between that and commercial property? And then, what's the difference between that and global commercial property? Is there any major risk right now in property that we should be aware of? We cover all that and we conclude with kind of breaking it down to what it means to your portfolio. Andrew is a very well-spoken and articulate investor, and I'm very pleased to have him on this episode of the podcast. I hope you enjoy the show.
Hey there, here's a quick note. This podcast contains general financial information only. That means it's not specific to you, your needs, goals, or financial objectives. So don't act on the information until you've spoken to your financial planner. You'll find our full disclosure, disclaimer, and link to our financial services guide in the show notes. Andrew, thank you for taking some time to join me. Thanks, Owen. I know you're a pretty busy fellow. You've got the business, the funds, there's so much going on in the world right now.
I should say credit to you. You've got an amazing business and the team over there is just wonderful.
I want to start by talking a little bit about something that people love, which is Australian Residential Property.
Who would have thought we could start there on a finance-related podcast, right? But I want to talk about that because there's been a lot of change recently, but people love property in Australia.
The thing is, whenever we flip that from residential property to commercial property, sometimes people are a bit out of water. They think they lose track of what we're buying, the merits and so on and so forth. So I want to ask you a broad question. When people think about listed property, so on the exchange and real assets, what are they misunderstanding?

**Andrew Parsons** (3:57)
Great. So nice easy question to start. I scared you and asked me a question about, did I want to marry a lector or a bonk elbow? So I'm happy to go with a simple question.
So look, residential property, everybody, as you said, is familiar with. And clearly, the government's concerned about the over allocation to residential.
That has occurred in the last, call it 20 years. Look, just by starting off, I'm not a Rezzy Basher. We've done something right here. And these are, if you have a list just of late, Australian cities feature very prominently in the best, most livable cities in the world. I think the last survey I saw of one of them was three or four of the cities of Australia were in the top 10 I think it was three. So look, we can understand why people have invested in residential. It's nice. It's familiar.