7 Qualities of People Who Have Amassed A Fortune 🗞️ Real Estate Market Wrap

01:00 – We're anticipating a rate cut on 18 Feb

04:08 – If you’re a prospective seller – here’s why you should sell

06:22 – 7 qualities of people I know who have amassed a fortune in real estate 

Do you believe rates will go down?

Transcript

Speaker 1: 0:00

I'm convinced that people that are into supercars and luxury cars that don't have the money have got a small penis. That's what I think, and this is going to be my last market wrap without business attire Not that I wear business attire at auctions. People tell me that I'm not a very well-dressed auctioneer, that I don't make the same effort that a lot of the younger auctioneers do with their $3,000 suits, shiny polished shoes I was trying to think of the word what do they call it when you those? I just can't think of the word. The shirts, your wrist what do you call those things? Just forgot it. You know. The tie, your shirt, those. Anyway, let's move on.

Speaker 1: 1:09

So, ladies and gentlemen, guys and girls, we had inflation numbers reported on Wednesday and I'd said on my social media last week that if those numbers were going to come in lower than what the markets were expecting which they did there's going to be a rate cut. And as of today the 1st of February 2025, let me tell you there is great anticipation that there will be a rate cut. In fact, national Australia Bank Chief Economist, alan Oster, said there will be a rate cut of a quarter of a percent. That's NAB, anz Research has said there will be a rate cut. The financial markets have factored in an 80% probability of a rate cut and let me tell you Reserve Bank Sandra Bollock, michelle Bollock, you need to do it. You need to do it now.

Speaker 1: 2:28

The pain is there, the pain is building and I can tell you that we are seeing, month in, month out now, property prices going down, which, for many people will be really happy. For many people will be really happy. The exception is for the last month. Brisbane continues to be the standout performer, whilst both Perth and Adelaide that have been going gangbusters appear to have not started to drop but, as one commentator said, they're sitting on ice, whereas the two big markets that have always driven real estate, sydney and Melbourne, continue to have negative growth. So that's only one factor, and I wouldn't you know, I wouldn't, I wouldn't be making an interest rate decision on the fact that you know that houses have gone down for a few months. No, what it's got to be is to give people a little breathing space. They are in a lot of pain, a lot of pain. I'm not talking about the small cohort of people that are debt free. I'm talking about the others. I'm talking about those that have got mortgages. But the good news is for renters there has been a slowdown in growth and there are a lot more properties available and you're not seeing the big lines of tenants lining up. You know a hundred deep to be the first in to apply for a property. But I've got to say to you that is good news and overall, good afternoon, mel, good to see you yesterday and overall I've got to say things are looking very good for tenants.

Speaker 1: 4:19

But February the 18th is a very important day. It's a very important day because it is the day that I believe there will be a rate cut and if you are a prospective seller, what you do is you sell. You sell sooner than all the other sellers have gone, because I can tell you and I talk to a lot of them there's a group of people that want to put their property on the market but they want some good news in the media and that news most likely will happen and if it doesn't, if it doesn't, it will be happening in April, and if it doesn't happen in April, it'll be happening in May. Because, be very, very certain, anthony Albanese and Chalmers, they're going to be banging very, very hard, saying to Sandra Bollock we've done what you wanted. We've got the inflation number down to the band that you wanted. Now drop the rate. Yes, you're independent, but don't forget, we appoint you and in addition to that, we've got a federal election coming up, and you know what? It's not looking good Because, right at the moment, two preferred party Libs would get in right at this moment. How things have changed in the last three or four months.

Speaker 1: 5:53

So I thought I'd actually use this time before I start giving you a market wrap when I'm out in the field, as of next Saturday, where I begin auctions again, I thought what I would do is just run through 10 people that I'm close with that smash it in slop. I want to share with you these 10 people that I know have amassed a fortune out of real estate, and one of the reasons they amassed a fortune out of real estate is they were collecting houses and units, not cars, in their younger years. When they got older and they had the money, they then bought the cars. Because I'm convinced I'm convinced good afternoon to everyone. Aaron, konstantinos Cameron, konstantinos Cameron.

Speaker 1: 7:23

I'm convinced that people that are into supercars and luxury cars that don't have the money have got a small penis. That's what I think. That's what I think they're looking for something to actually make them feel better, make them feel stronger, get the attention. I've got to tell you life's going to be a lot better when you don't care about the attention. But I'm going to share with you the 10 qualities or five or a few qualities that I've noticed of these people. One owns 80 properties. One's got a revenue coming out of his properties after debt of $4 million, and the others, all you know, have property portfolios of at least $15 to $20 million.

Speaker 1: 8:09

So what I've noticed about them and I've known it for a while is they've got great market knowledge. Number one They've got great market knowledge to the point they're not actually even real estate agents, but they've got an RP data subscription. They pay for it. Happydata subscription they pay for it. Number two they don't earn a fortune in their jobs or in the jobs they had, but they were really financially disciplined, right, they didn't fall for the crap. Hey, pull out the champagne, shout everyone. You know life's good. They didn't have that.

Speaker 1: 8:52

What they did is they had a balance between enjoying the present and also being focused on the future, which brings me to the next quality I notice of these. They are very future-centred people, not present-centred people, and that is an important quality. Being a real estate investor, I've got to tell you yes, aaron, you make money while you sleep. That is a really important quality, because people that I know that are present-centered people always are focused on being happy now. People that I know that are future-centered people understand that there's a price to pay now for a reward later. Thank you, konstantinos. So I've got to say to you and it's not just property this future-centred person versus present-centred person. It's in every area of life health and fitness. A future-focused person is focused on doing things that's going to make their new, them be healthier in the future. A present focused person does not care and will eat the Krispy Kreme, will drink the booze, will take the substances because they want to feel good now in the present, not in the future. Good now in the present, not in the future.

Speaker 1: 10:33

The next quality I've noticed about these property gurus is that they have taken calculated risks. They have taken risks, but they didn't go off and take stupid risks, like going into an area they have no idea about having some fast-talking salesperson suck them in into buying a lemon. Nah, they take risks, but they take calculated risks and what they'll do is that they won't buy all of the same properties, because they'll diversify their portfolio. Next, all of the same properties, because they'll diversify their portfolio. Next, I notice this group of property people I've told you about. You know what I noticed about them. They've got good negotiation skills. When they're negotiating with agents, they make the agent believe they're not paying one cent more, when in fact they pay a hundred grand more. That's what I notice about it.

Speaker 1: 11:38

They out-negotiate people that are supposed to be great negotiators real estate agents and they do it also because they've learned if you get too attached to the deal, you'll make an emotional decision. If you have a philosophy, which is, look at this level, it works for me, but if not, I've got a plan B they don't become attached to the deal. So being over-emotional is not a good trait if you're in property. Let me go on to the next one. The next one is that they are action oriented and they execute. You know what losers do? They say the stuff. You know what winners do? They do the stuff. They're decisive when they see a good deal.

Speaker 1: 12:39

And the last quality I notice about them is that they're relentless with their due diligence and they've got a team behind them being an accountant, their mortgage broker, their lawyer. That is there and they see them as very important people in the whole process Because a lot of the times you're going to be calling that lawyer on the weekend to make a change to the contract, because the deal's got to be done at four o'clock on a Saturday. The broker needs to give you, with high confidence, the chance of you getting that deal, because it's going to be a race to sign a contract and that's why you need to have your crew, your pit crew, just like you know, in race car driving, the crew there have to be amazing. So, ladies and gentlemen, I'm letting you know right at the moment, if you're a renter, if you're a buyer, it's not a bad period for you, it's a good season and I am letting you know that as rates go down. Thank you, george, thank you for that when rates go down.

Speaker 1: 13:59

He was commenting on my father. He said he saw my dad on Friday. Great man, he's a great man. He's nearly 90 years of age and I wish he didn't have to bury my brother. His son would have been a lot better end to his life, not have to. You know experience that, however, he's doing just fine. John Dyer says Rates come down, houses go up, inflation will rise again. Rates should stay on hold. Thank you, you know what I'd love you to do. I'd love you to put in the comments below and I want to look at those comments on the february the 19th what do you reckon our rate's going to go down on february the 18th? Looking forward to seeing you reporting you at a grassroots level in sydney at auctions next saturday. Tom panel signing off.