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

• Tom Panos - Real Estate Coach & Trainer

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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

Tom Panos:

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 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:

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.

Tom Panos:

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, 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:

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:

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:

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:

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

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:

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 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:

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.