Real Estate Market Wrap 🗞️ How Trump's tariffs affect Australian Real Estate

00:00 – How Trump's tariffs affect Australian Real Estate

04:19 – What IS and ISN’T Underquoting. Why “Quote em low & watch em go!” is stupid 

06:35 – My Clearance Rate: 9/11 SOLD. The market has been significantly better since the rate cut

07:21 – If I was a first-home buyer, here’s why I would invest in Queensland 

09:16 – Kamala Harris & Steven Bartlett are speaking at AREC (Conference). My Real Estate Gym members get the best-value tickets! 

10:12 – 4 out of the 9 properties I auctioned today came from LocalAgentFinder*

*I am a brand ambassador for LocalAgentFinder

Transcript

Understanding Tariffs Simply Explained

Tom Panos 0:00

So I just want you to picture what a tariff what Donald Trump has done right and I know that most of you should understand this right , but I'm just going to spell it out in a nice easy way what Donald Trump has done is saying that if someone goes and buys a car , say , from China , but they're in America , and let's assume the car is $100,000 . When they put a tariff of 25% , that car now is $125,000 . So the buyer of that car , instead of paying $100,000 , pays $125,000 . So on first impression , first glance , the person that loses is the person that lives in America that buys that car . However , tariffs are actually used in a way to discourage people to buy that car , because they'll say , while you buy that car for $125,000 , when you can buy this car that's been built in America for $120,000 . And you see , if they didn't put that tariff , that

Tariffs' Impact on Real Estate

Tom Panos 1:21

Chinese car would be cheaper . Tariff , that Chinese car would be cheaper . So why does the government actually use tariffs ? Well , number one , to raise money for the country . They're getting 25% . Number two that money . Apart from helping the country , there's another thing it does by bringing a tariff in . It means that that buyer that was going to go buy that car that was made in China now says oh no , well , that's more expensive or the value is not there when you have the 25% tariff . So what I'll do is I'll buy a car from an American manufacturer . And when I buy a car from a manufacturer I'll be better off because I don't have to pay that 25% . So that country then wins out as well , because more jobs are created , because more people need more of those cars in America . And then there's a third reason why governments use tariffs because they're negotiation tools . You see , let's assume that there's some issue in two years time and they're negotiating , donald Trump can say well , if you do that , donald Trump can say well , if you do that , I'll reduce the tariff , I'll take it down from 25% to 10% , or if you do this , I'll take the tariff off completely . So it's used as negotiation power . And how do you work out a tariff ? Tariffs are worked out in one of three ways . One way is that it's a percentage , like 25% . Another way , it is part percentage , part flat fee , or it can be a straight out flat fee . So there are plenty of ways that it can be done .

Tom Panos 3:24

Paul , don't understand what this got anything to do about real estate . Well , maybe you should hang on . Maybe you should hang on Because if you can understand the macro picture , you'll understand that real estate does not work in isolation . It works in combination with the rest of the economy . Ladies and gentlemen , that's what it does . So I can tell you that I had a buyer , and I'm just going to answer the question . I'm outside a property here in Yaguna and the guy was going to make a bit of 2.2 , but he told me that he's lost X amount of money in the share market in the last couple of weeks . And then he you know , obviously the share market's been extremely volatile and the whole world has been volatile because of Trump and his tariffs . So , to answer your question , whoever asked it , that's why I'm mentioning it there , ladies and gentlemen , and I can mention it because I want to .

Clarifying Underquoting vs Competition

Tom Panos 4:19

In addition to that , ladies and gentlemen , let me just also give an explanation to underquoting , because I think sometimes people get confused the difference between what underquoting is and what a great result is . So if a real estate agent goes to a vendor to list their property and says to them your house is worth a million dollars , and then goes out into the marketplace and tells buyers , you can buy this for $800 , come to the auction . They come to the auction and the whole time the owner wanted a million dollars . The agent is saying $800,000 . And , hypothetically , let's assume , on the day he decides to put in a vendor bid of , say , $960,000 , that's black and white . That is under-quoting , quoted low , and some agents use the term quote them low , watch them go . Stupid thing to say , stupid thing to say . So let me tell you what under quoting is not . When an agent is being quoting a million dollars on a property that they told the owner a million dollars and then at auction it goes crazy and sells for $1.2 million , that is not underquoting . That is a property that has sold $200,000 more than the reserve , $200,000 more than what the owner wanted . It had competition , people got carried away and that is not underquoting . So what happens in real estate ? Is that underquoting or is it just competition ? Well , it's a combination of both . There are some properties that are underquoted , there are some properties that are quoted correctly ,

Queensland's Appeal for First Homebuyers

Tom Panos 6:30

except two or three people get over emotional and they go for it as great for some properties and patchy for others . But overall I would probably say a marketplace that is significantly better since the rate cut and I believe that we have another Reserve Bank meeting coming up very soon , I think in the next week or two .

Tom Panos 7:10

Hey , johnny Caglionotis , good luck with your team . The Bulldogs are playing . I think they're playing tomorrow or they might even be playing today , but I want to let you know that I got asked today by someone if I was a first home buyer and I didn't care about anywhere to invest , where would I invest ? And I'll tell you what . The answer I gave him was Queensland . That's where I would go .

Tom Panos 7:42

A few reasons . Reason number one no stamp duty for first home buyers . Reason number two as of March . Reason number two I think that market is going to benefit a lot out of the Olympic Games . Reason number three come March 3 , now that we know that we've got an election day , on that day , if the coalition were to win and don't take that me saying you should vote for the coalition , because I don't even know who I'm voting for Hi , johnny , we'll talk about land tax in a moment , but I've got to say to you , if people get access to the superannuation , that's 50 grand , and then , in addition to that , if they don't have to pay stamp duty , brisbane looks like a beautiful marketplace to invest in and also lots of other parts of Queensland , and I got to hand it .

Tom Panos 8:44

I got to hand it to that government . They're having a go to win the popularity contest with home buyers . Mate , that guy there I don't even know who the Premier of Queensland is , but I'm going to tell you they're the opposite to the old Premier of Victoria . They want people to go there . What the old Premier , dictator Dan , wanted , he wanted people . Well , I don't know . I was about to say he wanted people to leave the state . I think he just wanted people to stay inside their houses for two years .

Tom Panos 9:16

In addition to that , ladies and gentlemen , I'm going to finish off here because I want to go watch Sydney

Real Estate Marketing Tools & Opportunities

Tom Panos 9:21

FC play , but I want to let everyone know , particularly the real estate fraternity Arik Brocha is coming out . Arik started posting speakers there . Kamala Harris she is live . She's coming in , and I know that there have been a lot of people that have thought that she has been a strange choice . Have been a lot of people that have thought that she has been a strange choice . Most people are actually delighted to have someone in the actual room of that calibre , but for me , the guy that I'm really pumped to see is Stephen Bartlett , that podcaster and author of the Diary of a CEO . So that's on the 25th and the 26th of May . Good to see you . Michael has a photos .

Tom Panos 10:09

And apart from that , ladies and gentlemen , oh , by the way , I've got to tell you I had four properties today that were leads that had come from local agent finder . I really don't know why more real estate agents are not actually using that . They'll go out . Today , john , there was , I think , nine out of 11 sold .

Tom Panos 10:37

Local agent finder has got two things I love about Number one they've got a tool called the prospecting tool . When someone goes onto their website to actually suss out real estate agents and doesn't take the next step , local AgentFinder has got a tool that they're able to sell you and they get so many leads in every suburb every month of those people . They won't give you the exact person , but they'll say it's amongst these 25 homes and that's done on a subscription basis and it's one agent per

Final Thoughts on Market Outlook

Tom Panos 11:10

area . Yes , morris , I do see a rate coming out . I'm not quite sure if it's going to happen next week , but so in addition to that , ladies and gentlemen , I've got to say oh , I just had a mental blank on what I was talking about .

Tom Panos 11:24

I was talking about local agent finder . But I've got to tell you any real estate agent that wants to get more listings , I've got to tell you . Get onto local agent finder . And the thing that I love about their model is that every listing that they refer you in their normal product , you know you might have to pay 20% I think it maxed up to five grand but 20% of something or sorry , 80% , you got to pay 20% . So you get 80% . 80% of something is better than you know 0% of nothing .