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Real Estate Market Wrap 🗞️ The FOMO intensity has eased

• Tom Panos - Real Estate Coach & Trainer

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  • 00:16 – The intensity of FOMO in the market has eased
  • 01:40 – Warning: If you’re borrowing 95% for your loan repayments
  • 04:00 – Only 20% of properties include video
  • 04:19 – What type of properties are going off in this market
  • 04:45 – Why you should not hold an auction on December 20
  • 06:09 – Why non-registered buyers keep asking this question
  • 06:45 – The blueprint for auction regulations in NSW
  • 07:42 – The December advantage
  • 08:16 – Black Belt 2026


My Clearance Rate: 9/10 SOLD

SPEAKER_00:

But I'm warning any person that's borrowing 95% needs to understand that they're signing up for a big loan repayment, not for this year, not for next year, for quite a long time. We've come to a bit of a reality check. There was high levels of fear of missing out over the last month. And I'm not saying that it's still not there, but it's not there in the last week at the same intensity, because the narrative of interest rates has changed significantly. We were led to believe that we were going to have a rate cut on Melbourne Cup Day. That did not happen. And what's also interesting is that the commentary that the Reserve Bank gave when they announced there was no rate cut on Tuesday was that there probably won't be a rate cut for some time. And when you interview bankers, not Uber drivers, plumbers, or librarians who all have an opinion, but bankers who are the most senior people in the institutions, they're actually saying that most likely a rate cut no sooner than the middle of next year. This is not a bad thing because I was seeing a little bit of a frenzy happening. And that's been fueled by the amount of buyers that are taking advantage of the 5% deposit scheme that allows you to borrow 95%. But I'm warning any person that's borrowing 95% needs to understand that they're signing up for a big loan repayment, not for this year, not for next year, for quite a long time. And you don't want to fall into the trap that a lot of the 95% borrowers did back in 2007. Back in 2007, I've got to tell you, watch the movie The Big Short. If you've got a bit of spare time over the next week, watch the movie Big Short. And it is all about what actually happened when you lend irresponsibly. And I'm not saying we're lending irresponsibly here, but I believe that borrowing 95% on a principal place of residence is high risk if you don't have amazing income. Because when rates do go up, and they will, they will go up, you're gonna be in a position of having 95% loan at a higher loan repayment than now. So what I'm saying is get comfortable with your current position because you don't want to be in a situation in the years to come where rates go up, loan repayments go up uncontrollably high, and then people are stuck. And I'm gonna tell you, um, John Doris saying next rate cut may actually up, not down. Well, look, I don't believe anything anymore. I don't believe anything anymore because ten days ago they said that there was gonna be a rate cut on Melbourne Cup. Now, five days after that, just five days after that, oh no, that's not happening because inflation came in. October 29 was the date that they released inflation numbers, and they came in at higher than the two to three percent bandwidth. Now I've got to tell you, just accept it. Interest rates going up, down is just gonna be an ongoing thing. Oh, they're gonna say, oh, we got the inflation numbers. What's the data saying? No one knows. No one knows. So what you do is you do not make a decision based on interest rates. You make a decision based on your life. That's what you do. Now, I've got to also say to you, I find it really interesting that only 20% of properties have videos. This was confirmed to me yesterday by realestate.com on their portal. That's got to change. We are a video first industry now, 20% of properties. But today's auction results, nine out of ten. What's going off cheapest, what's sort of a little bit hit and miss, a little bit bipolar if you like, the dearer ones. Um and I have to say to you that to me, we're gonna have a run right through to the 13th of December. I probably will not be working on the 20th of December, and I would recommend if you're an owner that hasn't got your act together, that you can't get your property auctioned by the 13th or the 14th of December, do not auction towards the end of this year. I'm telling you, even if your real estate agent says do it on the 20th, I don't think so. I think most people are at Westfield, are at the beach, are nursing hangovers from Christmas parties, are doing family stuff, they're busy, and I think that you will have less buyers at your property if you do it on the 20th. But I will say that do the smart thing, and if you're not doing it on the 20th, do it, you know, launch very early in January before everyone else launches. You know what happens. Like people are scrolling on their phone on Boxing Day. They are just, you know, they've had their turkey, they've had a few drinks on Christmas Day, uh, they're sitting back on the sofa watching the Boxing Day cricket, and they're scrolling and they're making new year decisions, and there are no properties on the market then. So if you're on there, even as a vendor, as a soft launch, not doing inspections, right? I've got to tell you, you're gonna get eyeballs on your property, and you've got to stand out to win out because it is an attention game, and you'll get more attention where there are less properties on the market. That's what I would be doing. In addition to that, I've got to say to you, I had a, you know, I had a buyer today, he asked me two, three times, is the property on the market, right? And he wasn't registered, right? I asked him afterwards, and I, you know, when I'm leaving, I said, Man, you asked me a few times, I go, like, like, why are you asking? And he says, Oh, I was just curious, right? Um, isn't it weird? You often get people that are the loudest that actually are the ones that actually do nothing. Happens all the time. Anyway, Tene, a couple of other things before we finish off. In the next week, to all the consumers, buyers, sellers, and real estate agents, I have put together a blueprint to auctions in New South Wales, covering all the rules and helping real estate agents still run successful auctions without breaking the law. I've given information to buyers and sellers to make sure that they don't get manipulated in the process. I've basically put together the call it the Idiot's Guide to Auctions for Buyers, Sellers, and actually real estate agents. I'm gonna put it up on my social media. It'll probably be on tompanos.com.au. I think it's a seven-module course that explains everything. So, one other thing I want to let you know before I finish off here today, and that is if you're a buyer, take advantage of December. December is known as a month that you can actually get yourself a good opportunity. There's residual stock, fatigue stock, people want to bring closure to it. There's a lot of listings, people want to go away Christmas knowing that their property is sold, so you're more likely to get an offer accepted that wouldn't get accepted before December. Your vendors that you're pitching offers to are probably more motivated to take an offer. So that's what I would be doing. And I'm pleased to let you know that in my training and education business, we are launching Black Belt 2026. I have had a lot of real estate agents say, Tom, we want a course that can help us be accountable and get to one and two million in fees. And I studied the best format around the world, and I've come up with a system that's gonna create transformation. It's gonna create change, and I'm so looking forward to it. It involves us having every quarter we go into lockdown in a room, small group of people, and we do that every quarter. Every month you've got one of my coaches that is gonna keep you accountable with one-on-ones. I will actually meet up with you virtually once a month. However, I'm only gonna have a small group of people because for me to be in a room with you, it needs to be a small group of people. So we're only doing one agent per postcode. And I'm also letting you know Johnny McGrath has been kind enough to actually allow us to do a full one day, me and him in the room, and you're gonna get a tour of the best McGrath EBUs, and that's on the 24th of March. I will make sure that in the comments below we have the link that you can actually apply. You can't enrol. We need to approve you. Well, I need to approve you because I'm only gonna have people that are like-minded, got good ethics, and most importantly, want to get to pinnacle level where they are in the top 1% of the industry. Black Belt is now taking nominations for me to interview. Please go to the link. That's what you do. And I've got to tell you, I'm gonna have another drink of this because I've got to tell you, it's been an absolute scorcher here. Today it went up to uh 36, 37 in my car. And in fact, I was talking about these water bottles, right, that I see a lot of people carrying around. This is my daughter's one of my daughter's water bottles, Frank Green. I just picked it up. I've got to tell you, just go to Bunnings or go to Wooly's. Don't have to pay 70 bucks for a trendy water bottle that's got his brand logo, this Frank guy, whoever he is, because I've got to tell you, you know what happened today? I opened up this thing here, right? And this thing came flying. All these liquids came, saturated me. And this also happened during the week on a flight from Brisbane to Sydney on Wednesday. So, you know what? Your 65,$70 water bottle, you know what? Go to Bunnings, pay 15 bucks and get your normal water bottle. Or this one here, here from Woolies, 10 bucks, get a straw. It's worked like gold for years. I'm gonna give this water bottle back to my daughter, and I'm not gonna take it back again. She can keep her Frank Grief water bottle.