7 figure Attraction Agent
Tom Panos interviews leading real estate attraction agents. These agents share their strategies for writing 7 figures year after year. Simple, powerful and effective - you can apply these tips to grow your real estate business today. For more FREE tools visit: www.tompanos.com.au
7 figure Attraction Agent
Inflation and Interest Rates│Real Estate Market Wrap 🗞️
Despite high sales, many vendors are lowering prices to match buyer expectations, particularly as the market prepares for a surge in listings.
December is the month for bargains. Don't miss out on the opportunities ahead!
Well, ladies and gentlemen, guys and girls, I have just finished my last auction for the day and pending a negotiation that John Yapman from Ray White Punchbowl is doing with a vendor and buyer on a property that got passed in and buyer on a property that got passed in. Pending on that, I'm letting you know it is 11 from 11. Pending on that and he's pretty certain it's going to happen. So I am going to be optimistic and say today's results are 11 out of 11. The highlight today was the option of the block of units in Lakemba. You can watch that online. I've actually recorded that option and that's sold.
Speaker 1:A block of six in Lakemba sold for $2,950,000. Now that's a significant figure for a block of six in Lakemba Works out that they are at $500,000 a pop. That's how you work it, by the way, with blocks of units. When I quickly do the calculation, I simply just say okay, divide it by the number of units, works out to being 500 a pop. That is good money for Lakemba. However, when a valuer values blocks of units, they don't use that methodology. They're using purely gross rents and what's interesting as a yield. And what's interesting is that this property had a very attractive figure. It was close to $180,000 a year $180,000 a year. And the reason why it was that much is that owner had a lot of tenants living in those units Obviously six units, but in each unit there were a lot of people living in there and he was maximizing the rental revenue out of it.
Speaker 1:Hi Chris, how are you going now? Out of it? Hi Chris, how are you going Now? So what does that mean? On the surface? You'll turn around and you will say that hey, the market is red hot. No, even at 11 out of 11,. I want to let you know what that number doesn't show is that vendors actually drop their prices to sell properties. And why are they dropping their prices to sell properties? Because cash is king. Why are they dropping their prices to sell properties? Because they're educated at the moment to understand.
Speaker 1:This was our last winter auction, winter auction. Next week we have our spring auctions. Spring has an abundance of listings, as reported today in the media. Both the major publishers have put reports in about listings drawing at incredible exponential rates, and what that means is that buyers are going to have a fill day September, october, november and you always look around for that bargain in December. December is the bargain month of the year. You've got lethargic stock that hasn't sold. Vendors who are tired that just say sell it. Many other buyers are at shopping centers, so December is the time you should be out there on the pavement looking for a property. By the way, that's the buyers that are walking away that bought the last property, and they were such nice people you can watch them, they're also on my video. And they were such nice people you can watch them. They're also on my video.
Speaker 1:So I'm going to say to you that today, two things happened that made me realize you've got to be patient in real estate, because the way you see the world is not the way others may see it. One of those instances was I had a vendor we had exceeded reserve. We had exceeded reserve, the figure was way above what was expected and all I did is went in to say to him during the auction great news, I'm just going to announce that we're selling. And he said would you mind putting in a vendor bid on my behalf? I said what? We're already over the number. A vendor bid on your behalf. I said why would we do that? And he goes because if I put my vendor bid in, then they will bid after it. And I said how do you know that he goes? Well, I don't know that. But if they don't, I said what are you going to do? And he goes well, if I don't, we'll go back to them and we'll tell them that they can have it at the price before the vendor bid. Do you understand what I'm going to put up with every Saturday? Think about what I just said. And I'm going to tell you I rarely do it, but I said to him that is a really stupid idea. And he goes okay, sorry.
Speaker 1:And then the second thing that got underneath my skin today skin today was watching a buyer walk in to a property. As they walk in, you know, the agent at the front with the clipboard or their ipad taking the numbers down, asked for their name and number. And this buyer says I'm not giving it to you. Actually, actually, they didn't say that. They said I prefer not to give it to you. And then the agent said yeah, but I need it. And then the buyer says can you show me where in the law it says I have to give you my details? And that really I don't know why, but it gave me the shits.
Speaker 1:So I decided to stick my nose in the business and I said because, look, the guy at the door was a young associate, as they usually have two people there, but it was the day of the auction, so there were other agents there, but they had this young person there. And I said sir, we need your details if you're going to walk inside the property. He says I'm not giving you my details. I said well, you're not walking inside the property? And he says you can't stop me, it's a public open for inspection. And I got the shits even more then. And then I said to him sir, one moment I walked in, I found the owners.
Speaker 1:I told the owners, the owners said we will do what you say. I'll say they're not giving the details. I mean they're coming into your home. I said tell him he's not welcome. I went out and I said sir, I'm sorry, we can't let you in. He goes, show me where in the legislation it says that I have to give you my details. I said look, all I'm going to say to you is the owners don't want you inside the house, that's it. They don't want you inside their house and they don't want to come inside your house. And you're not coming inside their house. Okay, so those two things.
Speaker 1:But, ladies and gentlemen, I'm letting you know yeah, I think September, october, november is going to be a lot of grind here to put a deal. I think it's going to be harder. You're going to have to grind hard to get this deal done, because there's going to be a lot of stock, there's a lot of stocks. So, to all the buyers out there, let me tell you now is a good time to get out there. These last three, four months of this calendar year is a good time.
Speaker 1:And I'm going to tell you one thing that hasn't been really spoken about too much this week is the inflation numbers came through on Wednesday. They weren't great. They weren't great and in fact, it's really interesting because you've got to get a clear definition. There's different inflation numbers. Some people use one type of inflation number and then other people use another type of inflation number where they take certain things out of those numbers. But in essence so I don't sound too confusing the inflation numbers came back at higher than what we were hoping for, which basically means it is really, really unlikely there is going to be a rate cut.
Speaker 1:So we've only got two options really on the table for this rest of the year with interest rates, and they will either stay the same way or what they will do is they will go up. And I think if they were to go up and we were going to have the extra listings on the market, you're going to have a definite buyer's market, no doubt about it, definite buyer's market. So we will have to wait till the next Reserve Bank meeting. Now I know that they don't meet every month again, so I don't have a calendar to see whether they are meeting in September. I'm not quite sure. But one thing is for sure rates aren't coming down. I know that there are vendors out there that are doing it really, really hard and we're hoping for some relief. That is not happening. It most likely will happen, but it's not happening this year for those of you that are looking to buy.
Speaker 1:So muhammad said they're meeting on the 23rd muhammad. That doesn't sound right because they normally meet on the first Tuesday of a month. But I could be wrong because they have changed the frequency of their meetings. Good evening, mel. Good evening, good to see you. He's moved from the Gold Coast to hit it with Gavin Rubenstein's team in Hunters Hill. So they are. Well, I've had another person saying the 24th, they're meeting on the 24th, so the 24th, they're meeting on the 24th, so the 24th, so in about three weeks. Anyway, ladies and gentlemen, that's the end of it. I'm going to sign off and yeah, 11 out of 11, most likely.