And what would you do in my situation regarding: the agent?
My Clearance Rate: 4/6 SOLD
Speaker 1:
But the big news during the week is what everyone that had been hoping for a rate cut to come soon ain't coming soon that there might be rates going up again due to the new data showing that inflation is far from being controlled Actually the opposite. So all of a sudden, after months of having an acceptance that's the end of the rate rises, a few conversations about the latest data suggesting there could be rate rises before there's rate drops. Regardless if there's rate rises or not, one thing is for sure the vendors that were hoping that there would be a rate drop coming very soon. It ain't happening. It ain't happening. The second thing I want to touch on today is units. I believe that they are the hidden gem opportunity in our marketplace, and the reason I say it is that the gap, if you look at the data between a house and a unit now in a unit now, has really widened, and when that happens, all of a sudden units become good value again.
Speaker 1:
But this time there's a double whammy. Not only has the gap got bigger, but in addition to that, we have had developers stopping the supply of new stock. They're not building it. Developers don't want to participate unless they buy the land at a bargain price, and the reason why is building materials have gone through the roof. They also have governments which, whether it's the DA or changes to a DA, it's just blowing out, and time is money for developers. They're not using cash to finance their developers. They go to the bank and borrow money. So when they're borrowing money and now they're borrowing money at a much higher rate than they were previously so they've also got to take into account how long they're going to borrow the money. For Now you're hearing stories that councils and government authorities are delaying the process, which means that it's costing a hell of a lot of interest for a developer to go into a project. So, yeah, they're not building them, which means that if you're going to own a unit, you're going to have less of them being built, which means it's probably good for those that buy one now.
Speaker 1:
Now, blocks of units they've always been my favorite investment and that's what uh have been, uh, what I've invested in, uh, the last few times I've been buying real estate, and I have to say to you I think they're great investments. Blocks of units are great. If you buy a block of four, you'll get it at residential rates, but you'll get a lot of competitive bidding because everyone wants the smaller blocks. If you buy a block of more than four, you pay commercial rates, but you'll probably pick them up at a better return. Thanks, geordie.
Speaker 1:
Now last thing I want to touch on is a story I put up there on Instagram. So I get a client who is not a client, he's actually someone that works in real estate that I had a run in. I thought what they did was not very nice and I just stopped doing business with them and cut a long story short out of the blue, after having not spoken to them for a very long time. I get a phone call Hi, how are you, tom? Unexpected nice, if you know what I mean. So you know, like the emails that you get from people that you haven't heard for ages, I hope you're well, anyway. So he's really nice.
Speaker 1:
And then he tries to book an auction and I said to him why don't you use your normal auctioneer? He goes I want to use you. I said no problems. And then he told me can you do it on the 1st of June? I said no, I'm booked out. Can you do the 8th of June? I said I don't think it's a good idea. I said you know, long weekend. So I said I'm probably not going to work that weekend. He said okay, well, can you? Yeah, let's make it happen. And I said why don't you? Just, you know, if you can't pick the days you want, just go use another auctioneer. I said I'll even give you a couple of recommendations, because every week I give auctions away to other auctioneers.
Speaker 1:
Anyway, long and short of it is, as a conversation evolves, it works out. He's listed the property the owners have requested me, and he says yes, I work with Tom Sign here, signs up an authority and then tries to book an auction with me, and then I can't do it. And the conversation goes like this Well, can we try and make it happen? I said I'm going to, I'm trying, I'm trying. And I said but I just find it interesting that you really want to make it happen, and when I haven't spoken to you for ages, why don't you get another auctioneer?
Speaker 1:
I said, could it be possible that when you signed up the listing, you told the owners that you were going to use me because they asked for you? They asked for me. And he goes that's right. And I said don't you think it would have been an intelligent thing to do to contact me and ask me if I'm available on that day and time for your vendors? Or could it be possible that you actually thought to yourself I better sign this up and work out the details afterwards?
Speaker 1:
And anyway, he goes listen, will you help me? I said I need time to think about it because I don't even know how I'm going to help you. For a start, because those two days there, but I might be able to do a weeknight one, but I'll said I'll come back to you night one, uh, but I'll said I'll come back to you. But here's the interesting thing there's a thing called karma and it's pronounced as ha ha, ha, f you. And of course I didn't say that to him. But doesn't it go to show you that the will goes around? The will goes around you, the will goes around. You don't burn your bridges with people, because no one wants to deal with a smart ass.