7 figure Attraction Agent

I AM WARNING THE PRIME MINISTER! Don’t touch negative gearing

• Tom Panos - Real Estate Coach & Trainer

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Real Estate Market Wrap.

Let's have a look at the facts:  

  • There are 8.5 million properties in Australia are investment properties, housing around one-third of the population
  • Nearly 50% own just one property 
  • The profile of a typical investor is someone earning less than $100K a year; it’s the school teachers, firemen, plumbers, nurses
  • If the Government mucks around with negative gearing, those 8.5 million investment properties will be affected.
  • We’ve got to look at Underquoting Laws. Ironically, it's the fair agents that quote the right figures that aren't getting buyers coming to the property. And agents who underquote get 8-10 people to an OFI and end up getting the property sold. 
  • We have an oversupply of listings across Australia and it’s the killer to capital growth.


My Clearance Rate: 12/16 Properties SOLD

Speaker 1:

Eight and a half million properties, house tenants, people who have to pay rent to be under a roof. That's 8.5. Now, I don't know what the population is in Australia, but I'm going to make the assumption it's somewhere around 25 million, right? One third of Australians are being housed in these investment properties. You understand, they're the numbers. And I'm going to give you another interesting statistic that, out of all those properties, 49% of investors own one property 49,. Thank you so much. All Good Real Estate. There's a 27 million population in Australia, which basically means roughly those 8.5 million investment properties that put tenants in there are housing a third of Aussies. Right, that's what the numbers are. Let me tell you, 49% of investors own just one property. 49% of investors just own one property. They're not people that are driving around with Lamborghinis or Rolls Royces collecting rent of 30 properties. You know what they are. They are school teachers that are trying to create financial security for their family. So they invested in one investment property and they put a tenant in there. They're firemen that are out there protecting the community but trying to get some financial security for their family, their plumbers, their school teachers. That are the investors in Australia. In fact, 2.5 million of the properties are owned by individuals, whereas only 255,000 are owned in trusts and 75,000 in companies.

Speaker 1:

So what is the profile of an investor in Australia? It is someone earning less than 100 grand a year. These are facts. But guess what? During the week which you all know about the Albo government, and before you go off and say here's another liberal puppet, listen, I come from a Labour-based family. All Greeks voted for Whitlam. I was brought up in a low socioeconomic area with a family that was in the bottom 5% in terms of income. Factory worker right Out there, lakemba, belmore. I have voted for Labour more than I have voted for Liberal, but I've got to tell you that's a circus in there. Because you have decided this week and you're running for cover.

Speaker 1:

Because when the Prime Minister, anthony Albanese, was asked hey, why are you looking at negative gearing? Why are you doing profiles and looking at various modeling of negative gearing? This was a policy that lost you the unlosable election in 2019. Because you wanted to muck around with so many people who earn less than a hundred grand a year, who are housing tenants, and you know what you're going to do. If you muck around with negative gearing, my friend, those 8.5 million investment properties come off the market.

Speaker 1:

Investors are your friend, government. Do you understand that? Investors are your friend? Investors are your friend. But no, what are you doing? You're having a look at how do we go off, how do we go off and actually make more money? Listen, I wish, have I got? I have, I've got my notes down here six billion dollars last year collected. Six billion dollars, collected in stamp duty from investors, 4.5 billion in council taxes. But you're still not happy. How do we actually get more of these people? They're your friends and you know what, when you were asked on wednesday, you actually wouldn't deny it.

Speaker 1:

But on Thursday, when you realized the heat was on, what did you say? Oh, it wasn't me. You know people in my government, my staff. They're always working on modeling and looking at various policies. Well, I've got to tell you, if you didn't know, you're incompetent. And if you did know, you're a liar. And it's on record now across every media outlet that if you backflip, you've said we're not touching it. If you backflip, you're a liar. But I'm going to take your word and say that you weren't aware of it, mr Albanese, that you weren't aware of it. And if you weren't aware of it. That's even worse as far as I'm concerned, because it basically means that you don't know what's going on in that joint. That would be like having a real estate office and having the principal, the CEO, being asked hey, are you thinking of leaving this franchise and becoming that franchise? Are you thinking of leaving Ray White and becoming LJ Hooker? Are you thinking about leaving LJ Hooker and becoming an independent office? Oh no, I've just. You know, there's always people in my office looking at the various models out there and you'd have the property manager or someone else. There's some junior looking at various options. That's what it would be like. Spare me. I've got to say to you it is an absolute disgrace.

Speaker 1:

You lost the election in 2019, which was unlosable and I've got to say to you don't do the same thing again. The numbers are very clear 8.5 million investment properties. Can't you see what's happening in Melbourne with the other guy there? He's forced every investor to put their properties on the market. You see what's happening in Melbourne? They're out of the joint there. They're all heading to Queensland, right, that's where they're heading to. They're not going to go to Melbourne. Some people are also leaving Melbourne now, going to Adelaide. Anyway, you can tell I'm fired up.

Speaker 1:

I can't remember the last time I auctioned 16 properties. It's been a long time. It has been a long day and it's been a difficult day because fear of missing out has left the market. Fear of missing out has left the market and I'll go as far as saying thank you so much. 120 to 60 to the Lions, much 120 to 60 to the lions, and I don't know whether that's a full-time score, but I can tell you, even if it's not, sydney swans will not be winning the grand final. So I have to say to you 16 auctions, and what's happened in this marketplace is there is so many listings, there is so many listings, there is so many listings. By the way, I am auctioning from Sundays, moving forward Sunday auctions right till Christmas time, because there is so much stock. So, susan, I'll have to talk to you offline afterwards. We are doing Sunday auctions. So today, 16 auctions, 12 sold out of 16.

Speaker 1:

But auctions, what made it stressful today is all the auctions are going longer. No one wants to start an auction. Bids are small increments, buyers are walking away in droves because they have others to pick from and I've always said oversupply of listings is the killer to capital growth and I've had two vendors, particularly one vendor that was 30 grand short. I begged them to take it. It was in their best interest. They said to me you only want me to take it so you can get your fee. I told them I've got my fee, whether this sells or doesn't sell.

Speaker 1:

I am telling you that as stock piles up in October and November, it is going to be even more challenging for a vendor, and I know that real estate agents that are listening to this right now are going to hate what I'm about to say. But I think that right now, unless a vendor really wants to sell now, if they're just testing the market or if they're just actually an opportunistic vendor that is happy to sell now or happy to sell in the new year, you might want to look at just listing now but not launching, because you are going to be amongst so many sellers that you're not going to give yourself the best chance of getting the best price. Give yourself the best chance of getting the best price. I mean, I can tell you now, even the gold market in Australia, which is Perth, is beginning to show signs, beginning to show signs of buyers moving to a buyer market 100%. We're seeing days on market even in Perth, which has been the hottest market in Australia for all year. It is showing signs of buyers getting cagey.

Speaker 1:

Some of the other things that happened today. Number one I had a vendor tell me this morning I need you to start at this figure and no less. And I said great. Then I went on to say what if we don't start at that figure because they're not offering it? I said do you want me to put a vendor bid? No, we don't want to put in a vendor bid. Thank you, taney. Absentee tax hit hard here. Yes, and you know what else I've got to say to you. Anyway, listen, I'm fired up. It actually caused me a lot of stress reading all those articles, thinking to myself you know, that's a circus there. They're running it like a Greek milk bar in the 60s, but it's 2024.

Speaker 1:

I've got to say to you a vendor said to me start at this number. I said if we don't get a start, should I put the vendor bid in? No, I don't want a vendor bid in. I want you to start at that number. I said but what if the buyers won't start at that number? I don't care, I'm not taking anything less than that as a starting bid. I said then we've got to use a vendor bid. They said no and I said so. Explain to me, mr and mrs vendor, if you want me to start at a million dollars and no one's offering a million dollars and you don't want me to put in a vendor bid of a million dollars, how do we start at a million dollars? How do we start? What do you want us to do? Do you want us to shoot an airplane down from the sky and get a person and say we got you. Now here's a gun in your head. You're paying a million dollars.

Speaker 1:

The next thing I've got to tell you is we've got to look at these underquoting laws. I don't know what the solution is, but I've got to tell you some of the bad agents that, under quote, have now spoiled it for the good agents. Because what's happening is if a buyer asks you what's this going to go for and an agent says it's going to go for 1.2. What happens is the buyer automatically thinks in their head oh, they're just saying that it'll probably go for 1.3, 1.4. So, guess what, they don't come to the auction. And then what actually happens? The less people you got at the auction, the worst result you've got. So, ironically, it's the fair agents that quote the right figures now that aren't getting buyers coming to the property, and agents that under quote end up getting eight or 10 people there and get the result the owners want. So they've got to look at that.

Speaker 1:

The other thing I've got to tell you is yes, I have said it before and I'm going to say it again, I said it at the start of this it's always better to sell in isolation and not in the competition of thousands of other sellers, and that's what you're doing at the moment. But if you've got to sell, you've got to sell, and that's for the real estate agents. That's for the real estate agents out there who have decided to jump on this off-market thing sending out. I mean, I'm getting it myself. I'm getting these emails that they send out to 87,000 people on their database saying off-market. How's it off-market if you've actually got a signboard up and you're saying off-market? How's it off-market if you've emailed 47,000 people? So, team, get real. People are not stupid. Anyway, team, thank you so much. I'm fired up, it's getting dark, I'm leaving and all I can say to you is Albo, you can't go back on your word. On Thursday you said it. You said it on Channel 9 Live TV. We are not touching negative gearing. You're on notice.