Real Estate Market Wrap 🗞️ Why property prices are still predicted to go up

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03:41 – Vendors rejected offers, then sold at lower figures 

04:02 – Be a chameleon 

05:55 – Two weeks until AREC25, which ones am I looking forward to

 

My Clearance Rate: 9/13 SOLD

Episode Transcript

Speaker 1 (00:00):
It's not bad.
There's a view out there withsome of the buyers They've been
reading that rates are comingdown.
There are banks forecastingthat there will be a 1% drop,
either done in quarter percentdrops, or maybe a quarter drop
in May, and then another quarter, maybe the following month, and

(00:23):
then another quarter, maybe thefollowing month, and maybe
we're going to have a drop ofaround half a percent in one
month.
There are some people sayingthat we might have a half a
percent in May.
But there is a feeling now thatEaster's out of the way, anzac
Day's out of the way, theelection's out of the way, and
I'm letting you know greetings,aaron.
And I'm letting you know thereis a feeling out there that we

(00:47):
are about to have rate cuts andthat's given buyers a little bit
of anxiety.
I think thinking will there bea lot more buyers out there when
rates drop?
So that's where we're at,ladies and gentlemen, and I've
got to tell you that I had to doa presentation this week.

(01:07):
That included talking to abroad group of people, including
developers, and I sat down andI did a very quick analysis of
Labor's policies on property.
Now that we know that they'regoing to be in government for at
least another three years.
And they've got a number ofinitiatives there One where you

(01:28):
go in there and they'll buy aproperty with you.
They're prepared to be a 30%shareholder in a property with
you to first home buyers.
If it's a brand new property,they'll come in as a 40%
business partner, or if it's anexisting property established

(01:51):
property it'll be 30%.
They've got various schemesinvolved that allow you to buy a
property and that's the biggestone of all.
The biggest initiative theyhave is that you can buy a
property with only a 5% depositand that will mean that you
won't have to get mortgageinsurance under that scheme.
And there's a heap of otherinitiatives.

(02:11):
But when you add up all thoseinitiatives, you still end up
having a shortage of propertiesand that means prices will
continue to go up.
In fact, if we were to look atthe numbers on a run rate as of

(02:33):
now, there is a target of 1.2million homes that need to be
built.
But based on this current runrate, they're going to end up
being short by $400,000 to$500,000.
And I'm not going to sit thereand point my finger and say
governments are incompetent andthat's why they're behind.

(02:54):
I'm going to say to you.
They also have the same issuesthat everyone has at the moment
in the real estate game, andthat is high material costs,
difficult to define, labour,labour shortages, planning
delays, the list goes on.
I think we've got to accept thesooner you can actually own a

(03:20):
piece of real estate in the coreparts of Australia, the safer
you'll be, and that's why I'msaying to people I wouldn't
worry about paying 5 or 10 or 15or 20 extra.
If you really want thatproperty, have to say that I've

(03:43):
seen a few instances of ownersin the last few weeks that have
rejected offers and then havesold those properties at lower
figures.
It actually happened today on aproperty that I was involved in
.
So, ladies and gentlemen, andI've got to tell you one of the
things you've got to always bedoing, and I am right now.
I've got a tell you one of thethings you've got to always be
doing, and I am right now.
I've got a very strong Indiancommunity at this last property

(04:07):
and one of the buyers was hereand they actually saw me auction
a property in Newtown last weekand they said you change your
approach, hey, mel, how are yougoing?
You change your approach whenyou're in Newtown.
I've got to tell you I changemy approach in every area.
I start in the inner westNewtown, chippendale, darlington
in the mornings and thereyou've got a strong professional

(04:31):
community in a city Some peopleused to call those people
yuppies very strong gaycommunity.
So I've got plenty of vendors,often who are in same-sex
relationships, less kids in thatarea, less family-oriented,
lots of two individualhouseholds and in that

(04:54):
marketplace the auctions aredifferent.
And then I'll move into an arealike Asheville where you've got
a strong Asian community andthings are different there.
Then I'll go to Greenacre andit'll be a strong Arabic
community and what I'll have todo there is you know, joke, you
know, speak a few words, theirlanguage, build rapport.
Then you'll come out to placeslike Campbelltown where you've

(05:17):
got Barry and Shazza and theworld's different.
I'm not saying you change yourpersonality, but what you do is
you adjust, you adjust.
So I'm just going to finish offon this point.
There are some areas I go to.
I used to laugh.
I used to go to some areas andthere were more relatives than

(05:39):
bidders.
You know, the ones where youget the Greeks, italians.
They've got 100 relatives atthe auction and only two bidders
.
One final thing I want to saybefore I leave to all the real
estate agents out there twoweeks to ARIC, two weeks to the
great conference that we haveevery year.

(06:00):
Again, I'll be hosting it, likeI have for the last couple of
decades.
There's some great speakers.
Maurizio is the one that I'mlooking forward to.
Maurizio, amazing agent in NewYork, and he's one of the
keynote speakers.
Robin Banks, of course, kamalaHarris.

(06:21):
We've got some of the greatestreal estate talent in Australia
speaking as well, people thatare out there in the field doing
it.
So I looked at the flights.
There's flights still available.
You can return to the GoldCoast from Sydney, melbourne for
a couple of hundred bucks.
So that's the 20, I think 20,.

(06:43):
It's two weeks from now andthat's where I'll be heading,
but I will work that day.
Anyway, ladies and gentlemen,and a big congratulations to the
Bulldogs.
I've been told they have had amiraculous comeback.
Well done, and on that pointI'm going to say goodnight.
I'm going in there and see whatwe can do about this deal.