Real Estate Market Wrap 🗞️ 17 units DA approved. Why did no one bid?

• Why Australia is the place to be - but not if you want to be a homeowner.
• The stupidest thing Michele Bullock, Governor of the Reserve Bank of Australia has said so far 
• We have to stop defining human beings based on those who have Property vs those who have not got Property 
• I had a heckler at my auction: https://youtu.be/vB5hxg10mnE

My Clearance Rate: 7/12 SOLD

Transcript

Real Estate Ownership and Housing Issues

Speaker 1 0:00

And in case you haven't worked it out , developers don't want to touch a single thing . I had a development site today . You can build 17 units , da approved . No one wanted to touch it . A DA approved for 17 units , right ? And I think it got passed in around 2829 , right ? So , team , what is he saying to you ? Australia is the place to be , but it also is not the place to be if you want to be a homeowner of real estate , because the developers have stopped building . But mascot airport , tullum and Ring Melbourne Airport , they're just coming through the doors .

Speaker 1 0:43

So today I did 12 auctions and out of the 12 , seven sold . There was a time in the morning that I was at four out of four , but things started to go a little bit pear shaped after that . As the day went on , more properties got passed in , and that's simply a sign in the markets that I'm operating in Sydney , where there is more stock on the market than what there is by , as that hasn't been the case for quite a while . So , seven out of 12 . And what was the Standout best result today was a property in Alexandria in an area called the Golden Triangle hey , zaka , how are you ? And that's sold for great money , great money , and I can't remember it , but it's sold for about , off the top of my head , 150 to 200 more than what the owners were prepared to accept .

Speaker 1 1:43

But I thought I'd shoot this video to give you a little bit of background on Michelle Bollack . Is that a name ? Bollack's got the same surname as the actress Sandra Bollack , the new RBA governor . It was a relief bringing her into the job after having that guy for a while . But she said something dumb . She basically turned around and she said At this conference , australian households are doing quite good . Now , don't get me wrong , the conference was overseas , so I don't know . I don't know what people think , but there are a conference and the local people aren't going to hear what she said . She says oh , households in Australia doing quite good . They've actually saved a lot of money during COVID and they've been able to cope pretty well with the rate rises . I don't know what household she's referring to . I don't know what household she goes into . The households that I go into that's not necessarily the case , not all of them , but a lot of the households that I go , particularly when I'm doing auctions out West they're not doing OK , michelle Bollack . And as for your Bullock , whatever your name is . And as for your stupid , stupid question that was given to you about , sorry , the question wasn't stupid , your answer was stupid .

Speaker 1 3:05

She actually turned around and said oh no , inflation is a homegrown thing . People are spending a lot of money on hairdressers and dentists . What a ridiculous thing to say . What a ridiculous thing to say Like you go get a haircut , you get a haircut . You go get your teeth fixed up . You got to get your teeth fixed up . What do you want us to do ? Right , keep inflation down by sitting at home and letting your teeth decay and growing your hair down to your shoulders . Right ? So ridiculous thing to say .

Speaker 1 3:39

But I've got to tell you we're quite fortunate . We're quite fortunate . I'll tell you where she comes from , says Keith . We're quite fortunate because , with the third end rate rises that we've had and some are at the tipping point real estate has surprisingly done better than what expected . Having said that , I can tell you you got to Sydney , melbourne . At the moment there's a lot of stock in certain areas and property prices have definitely pulled back in the last few weeks . I'll speak to your local agent about that . Not all markets , but Sydney Melbourne , yes , but one of the reasons why we're still blessed is that this is a fact there are more millionaires migrating to Australia than any other country . In fact , I can just see that in the future we are going to be a society where , basically , you have the have and the have nots , those , hey , james those that have property and those that have not got property .

Speaker 1 4:51

And I've got to say to you , we've also got to look at changing the narrative . What a wonderful article by Alan Kohler today I can't remember which media publication . You've got to stop thinking and defining human beings on whether they own real estate , and he writes it very well . He writes it very well In the world that we live in now , financial success is a sign of luck more than a sign of anything else . Because if you think about it , if you're in an area that own real estate in Sydney you say , in the heart of the city , or you know , east , in the North , in the West , you're going to be rich , not because of your brains , but because life has panned out that you got real estate there . You might have been born there , you might have inherited real estate there , but we are now living in a world where a lot of people's financial wealth is tied up into their property , and their property is often tied up into just the circumstances of life . We need to let go of the narrative of thinking that if you own real estate or lots of real estate , you are better than a person that doesn't own real estate . End the story . And I say that because if we don't , we're going to end up having a situation where there's going to be a lot of people people that are younger in years that will feel like losers because they can't own a roof and four walls . I think the narrative's got to change and I think , in addition to that , councils have to have a good look at themselves and understand that they are an accessory to the housing problem .

Real Estate Supply and Auctioneer Dynamics

Speaker 1 6:50

Because I've got to say to you supply is the issue , supply is the issue . Real estate is purely a demand and supply equation . You want to make it easier for people demanding real estate . You increase supply high-tas . So , as Erson says , the market doesn't make any sense . It doesn't make any sense . How can it make any sense when you've got one property that sells for four million and you drive three minutes away and there's no bidders on that one ? It gets passed in at a million dollars . We've got a patchy real estate market and the reason it's no different to the block , like you said , at the block one goes for five million , one goes for three million . It's simple when people want the one thing , they'll go over the top on the one and the others won't get what they deserve based on that one .

Speaker 1 7:47

Anyway , team , love you to go watch that auction that I did in Alexandria , the one I was talking about . You know there was a heckler there that was saying put the hammer down , put the hammer down . It wasn't even registered . It wasn't even registered . Anyway , I ignored it . Price kept on going up .

Speaker 1 8:09

But I can tell you I have seen it before you don't need a great auctioneer for 70% of the properties , but you do need a good auctioneer for 30% of the properties . Which 30% ? The ones that got curveballs , the ones that got the heckler , the ones that's got a vendor that's trying to outsmart the game and stuffs up the deal . You need deal makers , not order takers .

Speaker 1 8:34

When you get a vendor that's deciding what the vendor bid's going to be at and you know what price you're going to start at , you know you're basically saying let the patient drive the diagnostic and the maintenance plan for the person that's unwell , you get the patients that are driving the treatment plan . Think about that . That's what's happening in real estate every day when you have an agent that's got low leadership , that doesn't take control . So , team , I've got to say to you I'm auctioning tomorrow . It's good to actually be COVID free this time last week . Started feeling unwell , tested positive early last week . Ladies and gentlemen , that's a wrap 7 out of 12 , more auctions tomorrow and I'm auctioning right till the 17th of December .