Real Estate Market Wrap 🗞️ The Real Story Behind Inflation

How a property in Redfern could sell in just 45 seconds? 

And, we take a hard, unfiltered look at the Reserve Bank's recent stance on interest rates and inflation. Are they really addressing the root causes, or just putting a spin on the narrative? We challenge the conventional wisdom that blames consumers for inflation and spotlight the real culprits - government spending, skyrocketing rents, and health services. Brace yourself for a passionate, eye-opening discussion that calls for a more honest conversation about the true factors impacting our economy. 

This episode is a must-listen for anyone who wants to cut through the noise and get to the heart of the matter.

Transcript

Speaker 1: 0:00

I want to let you know that today I did nine auctions. Out of the nine, eight of those sold. The highlight of my day was the first auction, which you can see on Facebook, instagram and TikTok, and that is the unit in Redfern that I believe has to be one of the fastest auctions ever. It's definitely my fastest. It got sold in 45 seconds with one bid and if you watch it, real estate agents that are intelligent agents would understand. This deal was put together before the auction even took place. And that is what great real estate people do. When you don't have many buyers registered, you actually familiarize the buyer and the seller with the situation, so there are no surprises. And then you actually put the deal together before the auction. And I don't say you formally put it together, but your negotiations are that you're transparent and you say listen, you're the only person registered here, right? That gets trust with people. What's this rubbish, rubbish that goes on, where you try and create an optical illusion that there's hundreds of people out there when there's only one? You'll get trust. We sat there, told the buyer, buyer's representative, there's you, there's no one else, right, and the deal was put together. So team.

Speaker 1: 1:29

The other thing I want to touch on today is and I haven't commented on the Reserve Bank. I haven't commented on the Reserve Bank because I've just been reading and reading the commentary and I've been reading a lot of the comments that people have on articles Team. Let's be very, very clear the Reserve Bank and the Australian government underestimate the intelligence of the average Australian right. They underestimate this dribble, this absolute rubbish to absolutely go off and say we're letting you know that we're probably going to have to keep rates up at this level for a prolonged period of time because we want to get into that medium zone of the 2% to 3% band and we think that that's going to take us to the start of 2026, because inflation it's very stubborn. It's very stubborn and people have just not stopped spending. Get real, I see people having half an omelette sharing it between them. They have stopped spending. You know who hasn't stopped spending? The government, they're spending. You know what are the drivers of inflation? Rent. People have to rent. That's not spending. They've got to live somewhere. You know what? Another big driver of inflation is Health services. What do you want them to do? Don't get sick, so we can get inflation to go down. Oh, spare me, spare me. I have to say to you don't insult people.

Speaker 1: 3:18

The inflation is being driven by things, not people out there in the western suburbs spending money on food. You know what it is. It's the rich people, right, and why. Good luck to them, nothing against it. They're happy, they've got money in the bank. When interest rates go up, they get more interest in the funds that they've got in their term deposits. They spend business class travel, nice restaurants. Good luck to everyone that has that. But please, the Reserve Bank should not treat, or the Australian government should not treat, people as if they're dumb to say, oh, we need to keep the rates up there because inflation is very stubborn and they're the ones that are driving it. No, the Labor government, who's in government at the moment, is spending big and they're driving inflation.

Speaker 1: 4:22

The other drivers of inflation, as I said to you, are property and rents, and you know what. What are you going to say to people? Listen, don't rent, go, sit in the gutter so we can get inflation down. Or health services. Listen, don't spend any money on you know treatments, medications, doctors. Don't spend any money because that's driving inflation up.

Speaker 1: 4:45

And you know what I've got to tell you Lying, lying. I'm not saying you know, someone lied to me during the week. Someone lied to me during the week that I was very close to, and the problem with lying is this All of a sudden, the thing you believed about that person is no longer there. And that's terrible, because you have this benchmark, this position, this concept of what that person was, and you believe that and you believed it for weeks, months and years, and for me, for decades, and then and years and for me for decades, and then, all of a sudden, this belief that you had has been shattered and I've got to tell you this is what's happening with the Australian public. Many people feel they were deceived during COVID. Many people feel they were deceived when our old Reserve Bank boss said rates aren't going up, and they went up 13 times. Do you see how people lose trust?