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Real Estate Market Wrap 🗞️ Handling Divorced Sales 💍💔

• Tom Panos - Real Estate Coach & Trainer

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00:44 – How the 5% deposit scheme has seduced buyers 
02:50 – Why we might have a rate increase next year
05:24 – How the Government has made inflation worse 
08:30 – Kick Start, 10 Feb 2026
9:31 – Handling divorced listings

My Clearance Rate: 9/13 SOLD 

Tom Panos:

So the irony is that even this 5% deposit scheme that Albo fast tracked, I'm not going to blame Albo, apparently it was a policy that Morrison had earlier on. They just fast tracked it, pushes prices up, like I saw with this unit. I saw it with my own eyes, that causes a rising inflation. So what does that mean? Immigration causes inflation. So today there were 13 auctions scheduled, and out of the 13, nine have sold. And I have to say, the best result, the best result of all was the last property where I'm outside at Ashfield, and it was a two-bedroom unit. It has no parking, about 75 square meters, and it sold for around 940,000. And it had a reserve that was like about a couple of hundred grand less than that, right? So that was a big result. And that result was purely fueled by the 5% deposit scheme that Albo fast tracked, which I said during the week on a video. I said during the week on a video, I don't like that scheme. I don't like that scheme. I don't like that scheme because it encourages and it seduces buyers to come into the market maybe a tad earlier. And the reason I say it is that there's one really good thing about people that actually buy properties with a deposit of, say, 10 to 20%, and that is that they have got a track record and they have got evidence that they're disciplined at money management. And if you actually look at what happened in 2008 in the USA, and if you've got time over the weekend, watch the movie The Big Short if you haven't seen it. It's got one of the actors that's in that movie is the same actor that plays in the office, the American version of The Office. Um, hey Mike, sold nine. Wow, that's good on a hot summer's day. Listen, it was a cracker of a day in terms of heat. Like we're talking 42 degrees, right? And that's why I'm wearing I'm wearing a suit that I actually got made for very super high climate, warm climates, if I'm going to a wedding in Mekanos or something, right? Anyway, team, so I've got to say to you, nine out of 13, the last one sold, two-bedroom unit in Ashefield sold for around 9.40 with a reserve of in the mid-7s. But I've got to say to you that the rest of the marketplace, I'm not going to say it's as hot as what you're reading in the media. Far from it, right? I think what's happened in the last month or two is a lot of stock came on, number one. Number two, interest rate sentiment changed from going down to where holding. To now, there's a lot of commentators that are saying if this stubborn inflation doesn't get under 3%, and it's reported the last Wednesday of every month, the Reserve Bank is probably going to move and put interest rates up. Now, I don't have that view completely. I have a view, thanks Larissa. I have a view, good to see you, Larissa, as well. I have a view, I have a view that the marketplace won't see a rate change up or down in the first four or five months of next year. Unless we get some crazy inflation number that freaks out the reserve bank and they move. But I think we might actually get a rate increase at some point next year. And I've got to say to you that inflation is something that we're obviously going to dictate what the Reserve Bank does. So do yourself a favor, don't worry about when the Reserve Bank meets. Worry about the last Wednesday of every month because now they've got the ability to produce that number every month. It's been a two-year project now that they can do it every month. So we're going to be getting very timely inflation numbers coming in. However, I must say that I'm not going to go off and have a crack at elbow, but team. Hear me out. When you look at how inflation numbers are produced, there are about five or six things that the government does that actually makes inflation significantly worse. Let me run through and explain what it is. Because I've got to tell you, if you're ex if the government expects us as human beings to do our thing for inflation and what, not spend money, right? Well, I've got to tell you, you've also got to have a look at what you do as a government. So, number one, one of the major causes of the inflation number at the moment is, believe it or not, the policy on renewables. Because what they're doing is shifting from coal and gas at a time where we don't have the infrastructure ready is actually causing inflation to go up. Why? Because you've got increased costs, increased construction. The second thing is, as soon as the government starts getting rid of the red tape involved with construction and approvals for developers, you're gonna end up getting rents not go up as high. Rents are also a contributor to inflation. You see, housing costs are one of the biggest drivers of inflation. So the irony is that even this 5% deposit scheme that Albo fast tracked, I'm not going to blame Albo, apparently it was a policy that Morrison had earlier on, they just fast-tracked it, pushes prices up, like I saw with this unit. I saw it with my own eyes, that causes a rising inflation. So what does that mean? Immigration causes inflation. Because when you get more migrants come in, it pushes rents and pushes prices up. And then that's coupled by red tape of governments. So essentially, what we're seeing is the things that are driving inflation significantly, the things that are driving inflation significantly is government decisions and spending. Now, I'm gonna finish off because this day at 9 out of 14, it has been a mammoth day, and I am sweating and hot from it. I want to go out go home and have a have a shower. Da says, why don't they bring overseas companies to speed up the building of houses? Well, Da, that's 50% of the equation. The other 50% is to get the things then approved. But anyway, I want to let all the real estate agents know on the 10th of February, the real estate gym has got a kick start. The real estate gym has got a kickstart. We've got some amazing speakers speaking. I've got a panel of three or four agents that are under 30 that are each doing a hundred deals a year, including Ellie from Peter Diamond TD's office, Liam Cromity from Love, Monique from McGrar out West, Chris Christian from Wollongong, the agency. In addition to that, I've got Ollie Lavers from Gav Rubinstein's office. I've got John McGrath. Um I've got who else have we got? Dib Chiriak. And then the guy writes around seven, eight million dollars, I think, in fees. And that is for my real estate gym members at $39 a ticket for our February 10th Kickstarter at Sydney Olympic Park. It's three quarters of a day. I'm really looking forward to seeing you there. And I'm also going to let you know, today I had a very, very sad auction. Right? It was a divorce, and it was terrible because watching the kids, who obviously were devastated that the house was the final nail in the coffin on their going separate ways. It was devastating watching the kids cry. But I want to make reference to when you are a real estate agent handling a divorce listing. I want to talk about that before I leave. Because I've got to tell you there are things that you need to do when you're managing a listing as an agent of people that are getting divorced. I want you to know that people are very emotional. Often one of them wants to break up less than the other one, and the house is the tool that they're using in their negotiation. And I'm just going to give you a bit of a bullet point plan on how to handle divorce listings. Number one, you've got to make sure that you communicate with each person separately. Separately. Because I've got to tell you, I've been in the business long enough to know when you do these joint conference calls that they get emotive and um you'll find that they end up becoming a fighting match. My advice is you do things separately. Number one. The second thing is stay in your lane. You're an agent. You are not a counselor. You're not there to actually do some life coaching to these people. Because what you're going to do is you're going to move away from your role and you're going to go into emotions. And emotions are already hot. You need to actually be a buffer, not actually trigger more emotions. The next thing is talk facts. That's all you do. You talk facts because the minute you move away from facts, you allow one of the parties to actually create a fight. And then you get nowhere. The next thing is set the rules of engagement nice and early. For divorces, when you list them, you set the rules nice and early. Example, you'll say, I'm letting you know that you'll each be receiving a report every Tuesday afternoon. This will be followed by a Zoom call to you at 11 o'clock and to the other party at 11:30, giving you an update. The next thing is make sure that what you do is all your instructions and everything you do are in writing because it's very easy when every when uh when there's a divorce happening and their emotions are high, it's really easy where people twist words. So my advice to you is that you do everything in writing. And the last thing is, I've got to tell you, I'm very sad about what happened today. I'm really, really sad about it because at one stage the girl was the little girl was uncontrollable. And I mean the reason I can relate to it is I myself have got two daughters, right? Um, so uh I was visualizing myself in that situation.