Welcome back to another episode of Talk Property to Me! I'm your host, Aaron Downie, and alongside me is my co-host, Brad East. In this episode, we dive into a comprehensive wrap-up of the property market for 2024, discussing the performance of major capital cities and regional centres across Australia over the past year.

We kick things off by addressing the financial landscape, noting that the cash rate has remained unchanged at 4.3% since November 2023. This stability has led to a rather uneventful year in terms of interest rates, yet we highlight some remarkable growth in property values, particularly in Perth, which saw an impressive increase of up to 30%. We also discuss the significant drop in inflation and the recent decision by the Reserve Bank of Australia (RBA) to split its board into two separate entities—one focusing on monetary policy and the other on government spending. This change aims to create a more balanced approach to managing inflation without penalizing homeowners.

As we delve deeper into the property market, we analyse the annual growth rates across various cities. Sydney experienced modest growth at 3.3%, while Melbourne faced a decline of 2.3%. In contrast, Brisbane thrived with a 12.1% increase, and Adelaide saw a remarkable 14% growth. Perth's performance was particularly noteworthy, with a total growth of 21%. We also touch on the performance of regional areas, highlighting significant growth in places like Townsville and the York Peninsula.

Throughout the episode, we emphasize the impact of affordability on property values, noting that more affordable cities and regions have outperformed their pricier counterparts. We also discuss the trend of units performing better than houses due to affordability issues.

As we wrap up our analysis, we reflect on the overall market dynamics, noting that while interest rates have remained stable, the property market has shown resilience and growth in various areas. We conclude by teasing our next episode, where we will share our predictions for 2025, and encourage our listeners to engage with us on social media for a chance to win a $250 gift card in our holiday giveaway.

Join us as we unpack these insights and more, and don't forget to subscribe to stay updated on our future episodes! Happy New Year, and we look forward to another exciting season ahead!

Thank you for tuning in, and we look forward to seeing you in our next episode!

• 00:00:00 - Introduction and Giveaway Announcement
• Welcome back to Talk Property to Me, introduction of hosts and details about a $250 gift card giveaway.
• 00:01:00 - Finance Wrap-Up for 2024
• Discussion on the stability of interest rates and inflation trends over the past year.
• 00:02:43 - Interest Rates and Market Impact
• Analysis of fixed and variable interest rates, and their implications for homeowners.
• 00:04:02 - Home Value Indexes Overview
• Review of annual growth rates in major cities and regional areas across Australia.
• 00:06:25 - Top Performing Suburbs and Regions
• Highlighting specific suburbs and regional areas that experienced significant growth.
• 00:08:02 - Key Takeaways from 2024
• Summary of the overall market performance and factors influencing property prices.
• 00:09:23 - Looking Ahead to 2025
• Teaser for the next episode focusing on predictions for the upcoming year.

ABOUT THE HOSTS

BRAD EAST

Brad East is the Managing Director of Wisebuy Home Loans. Brad is an award-winning mortgage broker and has helped thousands of clients gain finance to purchase properties. Wisebuy Home Loans is the go-to mortgage brokerage for clients wanting out-of-the-box applications approved.

Website → https://wisebuygroup.com.au 

LinkedIn → https://www.linkedin.com/in/newcastlemortgagebroker/ 

Instagram → https://www.instagram.com/bradeast_mortgagebroker/ 

Facebook → https://www.facebook.com/bradeastofficial

AARON DOWNIE

Joining the podcast in 2024, Aaron Downie is a seasoned property investor and director of Mackenzie Buyers Agency. Aaron’s deep understanding of the property market and investment strategies provides listeners with invaluable insights.

Website: https://www.mackenziepropertygroup.com.au/

Linkedin: https://www.linkedin.com/in/aaron-downie-1b2749134/

Welcome back to another episode of Talk Property To Me! I'm your host, Brad East, alongside my co-host, Aaron Downie. In today's episode, we dive into a crucial topic for anyone looking to invest in real estate: the five worst properties you can buy in Australia right now.

We kick off the discussion by highlighting the pitfalls of high-density apartments, particularly in inner-city areas like Brisbane and Melbourne. With an oversupply of units, high strata fees, and low rental yields, we emphasize the importance of opting for boutique properties that cater to a broader audience.

Next, we explore the issue of overdeveloped regional areas, using examples like Ballarat and Rockhampton. These cookie-cutter housing estates often lack the fundamental qualities of location and scarcity, which are vital for a good return on investment. We also touch on the risks associated with single-industry economies, where the population growth fails to keep pace with the number of new dwellings.

Our third point addresses flood-prone properties. We discuss the significant financial burden of high insurance premiums and the potential for natural disasters to wreak havoc on investments. We share real-life examples of areas that have been severely affected by flooding, underscoring the importance of thorough research before making a purchase.

Moving on, we tackle the topic of off-the-plan purchases. While this may have been a viable option in the past, the current market conditions and the instability of builders and developers make it a risky endeavour. We advise listeners to conduct extensive research on developers and to be cautious about locking in prices that may not reflect future market conditions.

Finally, we discuss properties in declining regional towns, such as Muscwellbrook. These areas often suffer from economic reliance on single industries, leading to oversupply and stagnation. We highlight the trend of population migration towards coastal areas, making these declining towns less attractive for investment.

As a bonus tip, we caution against cheap homes in high-crime areas. While the allure of high rental yields may be tempting, the risks associated with such investments can lead to significant financial losses. We stress the importance of investing wisely and not letting ego drive property decisions.

Join us as we unpack these critical insights and provide you with the knowledge to avoid common pitfalls in property investment. If you enjoy our discussion, don't forget to hit the like button, subscribe, and leave a comment with any topics you'd like us to cover in future episodes.

Thank you for tuning in, and we look forward to seeing you in our next episode!

• 00:00:00 - Introduction to the Worst Properties in Australia
• 00:00:20 - High-Density Apartments: Too Much Supply
• 00:01:12 - Overdeveloped Regional Areas: Missing Fundamentals
• 00:02:21 - Flood Prone Properties: A Risky Investment
• 00:04:04 - Off the Plan Purchases: Proceed with Caution
• 00:05:27 - Declining Regional Towns: Economic Vulnerability
• 00:06:33 - Bonus Tips: Avoiding Cheap Homes in High Crime Areas
• 00:07:03 - Conclusion and Call to Action

ABOUT THE HOSTS

BRAD EAST

Brad East is the Managing Director of Wisebuy Home Loans. Brad is an award-winning mortgage broker and has helped thousands of clients gain finance to purchase properties. Wisebuy Home Loans is the go-to mortgage brokerage for clients wanting out-of-the-box applications approved.

Website → https://wisebuygroup.com.au 

LinkedIn → https://www.linkedin.com/in/newcastlemortgagebroker/ 

Instagram → https://www.instagram.com/bradeast_mortgagebroker/ 

Facebook → https://www.facebook.com/bradeastofficial

AARON DOWNIE

Joining the podcast in 2024, Aaron Downie is a seasoned property investor and director of Mackenzie Buyers Agency. Aaron’s deep understanding of the property market and investment strategies provides listeners with invaluable insights.

Website: https://www.mackenziepropertygroup.com.au/

Linkedin: https://www.linkedin.com/in/aaron-downie-1b2749134/

Welcome back to another episode of Talk Property To Me! I'm your host, Brad East, alongside my co-host, Aaron Downie. In this episode, we dive deep into the concept of property cycles, a topic that frequently comes up in our discussions with listeners and clients alike.

We start by defining what a property cycle is and introduce the four main stages: boom, peak, decline, and recovery. We explain how these stages are often visualized through the property clock, a tool popularized by organizations like Herron Todd White, which provides insights into various markets.

As we explore each stage, we discuss the characteristics that define them. The boom phase is marked by high demand and rising prices, while the peak indicates a potential oversupply and plateauing prices. We also touch on the decline phase, where prices soften and demand decreases, and finally, the recovery phase, where prices stabilize and begin to rise again.

A significant part of our conversation focuses on the driving factors behind these cycles, including economic conditions, interest rates, employment levels, and government policies. We highlight how owner-occupiers play a crucial role in driving market demand, especially during boom periods, and how their emotional purchasing decisions can significantly impact property values.

We also reflect on the unique circumstances surrounding the COVID-19 pandemic, which led to a rapid shift in the property market. The influx of government stimulus, low-interest rates, and changes in consumer behaviour created a perfect storm for a property boom, which we analyse in detail.

As we navigate through the current state of the property market, we discuss how to identify which part of the cycle different areas are in, using Sydney as a case study. We emphasize the importance of localized market analysis, as property cycles can vary significantly even within the same city.

Throughout the episode, we share practical tips for different types of buyers—investors, home buyers, and sellers—on how to approach the market based on their unique circumstances. We caution against trying to time the market perfectly, stressing that long-term growth and personal lifestyle needs should take precedence over short-term fluctuations.

In conclusion, we reiterate that understanding property cycles is valuable, but it should not be the sole focus for new investors. Instead, we encourage listeners to look at long-term growth factors and local market dynamics to make informed decisions.

Thank you for tuning in! If you enjoyed this episode, please subscribe and leave us a comment with any topics you'd like us to cover in future episodes. We look forward to seeing you next time!

• 00:00:00 - Introduction to Property Cycles
• 00:00:11 - Understanding the Property Cycle
• 00:00:33 - The Property Clock and Its Importance
• 00:00:55 - Stages of the Property Cycle
• 00:01:17 - Boom Phase Explained
• 00:01:29 - Peak Phase Characteristics
• 00:01:43 - Decline Phase Overview
• 00:02:02 - Recovery Phase Insights
• 00:02:13 - Defining Boom vs. Peak
• 00:03:19 - Factors Driving Property Cycles
• 00:03:48 - Government Policies and Economic Conditions
• 00:04:10 - Impact of Immigration on Property Demand
• 00:04:52 - Cheap Money and Its Effects
• 00:05:10 - Consumer Spending and Savings During COVID
• 00:05:37 - Accessing Superannuation for Property Purchases
• 00:06:19 - Cancelled Weddings and Property Purchases
• 00:07:11 - Supply and Demand Dynamics
• 00:08:16 - Current State of Sydney's Property Market
• 00:10:02 - Key Indicators of Property Cycle Stages
• 00:10:25 - Identifying a Boom Market
• 00:11:45 - Understanding the Peak Phase
• 00:12:42 - Characteristics of the Decline Phase
• 00:13:16 - Consumer Confidence and Its Impact
• 00:14:14 - Renewed Buyer Interest in the Market
• 00:15:25 - The Fast-Paced Market Dynamics
• 00:16:33 - Future Predictions for Interest Rates
• 00:17:48 - Historical Context of Interest Rates
• 00:18:31 - Tools for Tracking Property Cycles
• 00:19:29 - Common Mistakes in Timing the Market
• 00:20:53 - Long-Term Growth vs. Timing the Market
• 00:22:11 - Importance of Local Variations
• 00:23:54 - Aging Population and Cash Purchases
• 00:25:31 - Tips for Different Types of Buyers
• 00:26:04 - Selling Strategies in Different Market Conditions
• 00:27:08 - Recap of Property Cycle Stages
• 00:28:02 - Long-Term Growth Focus
• 00:28:21 - Conclusion and Call to Action

ABOUT THE HOSTS

BRAD EAST

Brad East is the Managing Director of Wisebuy Home Loans. Brad is an award-winning mortgage broker and has helped thousands of clients gain finance to purchase properties. Wisebuy Home Loans is the go-to mortgage brokerage for clients wanting out-of-the-box applications approved.

Website → https://wisebuygroup.com.au 

LinkedIn → https://www.linkedin.com/in/newcastlemortgagebroker/ 

Instagram → https://www.instagram.com/bradeast_mortgagebroker/ 

Facebook → https://www.facebook.com/bradeastofficial

AARON DOWNIE

Joining the podcast in 2024, Aaron Downie is a seasoned property investor and director of Mackenzie Buyers Agency. Aaron’s deep understanding of the property market and investment strategies provides listeners with invaluable insights.

Website: https://www.mackenziepropertygroup.com.au/

Linkedin: https://www.linkedin.com/in/aaron-downie-1b2749134/

In this episode of Talk Property To Me, I, Brad East, am joined by Cameron Smith from Waterford Financial Planners to discuss a compelling case study on how to significantly boost your retirement savings through strategic financial planning. We dive into the details of how a couple, currently aged 48, can potentially retire with an additional $1.5 million by making informed decisions about their superannuation.

We start by examining the couple's current financial situation, which includes a combined super balance of just over $650,000 and a principal residence valued at $1.5 million. The discussion centres around two primary options: leaving their super in a traditional industry fund versus establishing a self-managed super fund (SMSF). Cameron explains the setup process for an SMSF, highlighting the initial costs and the long-term benefits that can outweigh these expenses.

Throughout the episode, we emphasize the importance of understanding the potential growth of investments. Using conservative projections, we illustrate how the couple could see their super balance grow to approximately $3.5 million if they remain in an industry fund. In contrast, by setting up an SMSF and investing in property and shares, they could see their total net assets soar to around $5.1 million by the time they reach 65.

We also discuss the mechanics of self-managed super funds, including the limited recourse borrowing arrangement (LRBA) that protects the fund's other assets in case of default on the property loan. Cameron provides insights into the types of contributions that can be made to the SMSF, including employer contributions and concessional contributions, and how these can be leveraged to maximize retirement savings.

Additionally, we touch on the importance of compliance and the regulations surrounding SMSFs, including what cannot be done with the fund, such as using it for personal expenses or renting to related parties. Cameron shares valuable tips for business owners on how they can utilize their SMSF to purchase commercial properties and lease them back to their businesses.

As we wrap up the episode, we reinforce the message that taking action now can lead to substantial financial benefits in the future. The compounding growth of investments over time is a critical factor in building wealth for retirement, and we encourage listeners to consider their options carefully.

For anyone interested in learning more about self-managed super funds or financial planning strategies, I invite you to reach out to Cameron Smith at Waterford Financial Planners. His contact details will be available in the show notes.

Thank you for tuning in, and as always, if you have topics you'd like us to cover in future episodes, feel free to share your suggestions!

• 00:00:00 - Introduction to Retirement Planning
• 00:01:00 - Self-Managed Super Funds Explained
• 00:02:30 - Cost vs. Benefit of SMSFs
• 00:03:30 - Minimum Requirements for SMSFs
• 00:04:30 - Member Balances and Splitting Super
• 00:05:30 - Case Study Overview
• 00:06:00 - Industry Fund vs. SMSF Comparison
• 00:08:00 - Growth Projections for SMSF
• 00:09:00 - No Additional Contributions Needed
• 00:10:00 - Lending Perspective on SMSFs
• 00:11:00 - Types of Contributions to Super
• 00:12:00 - Using Unused Contribution Caps
• 00:13:00 - Accessing Funds and Compliance
• 00:14:00 - Restrictions on SMSF Usage
• 00:15:00 - Commercial Property Strategies
• 00:16:00 - Conclusion and Key Takeaways

ABOUT THE HOSTS

BRAD EAST

Brad East is the Managing Director of Wisebuy Home Loans. Brad is an award-winning mortgage broker and has helped thousands of clients gain finance to purchase properties. Wisebuy Home Loans is the go-to mortgage brokerage for clients wanting out-of-the-box applications approved.

Website → https://wisebuygroup.com.au 

LinkedIn → https://www.linkedin.com/in/newcastlemortgagebroker/ 

Instagram → https://www.instagram.com/bradeast_mortgagebroker/ 

Facebook → https://www.facebook.com/bradeastofficial

AARON DOWNIE

Joining the podcast in 2024, Aaron Downie is a seasoned property investor and director of Mackenzie Buyers Agency. Aaron’s deep understanding of the property market and investment strategies provides listeners with invaluable insights.

Website: https://www.mackenziepropertygroup.com.au/

Linkedin: https://www.linkedin.com/in/aaron-downie-1b2749134/

Welcome back to another episode of Talk Property To Me! I'm your host, Brad East, and alongside my co-host Aaron Downie, we dive deep into the vibrant property market of Newcastle, exploring its historical evolution and future potential for investors.

In this episode, we discuss whether Newcastle is still a viable investment opportunity as we look ahead to 2025. We start by unpacking the historical context of Newcastle, which has transitioned from an industrial hub, known as the "Steel City," to a gentrified urban area with significant growth potential. We highlight the transformation of key areas like the Honeysuckle Precinct, which has evolved from a derelict industrial site to a thriving waterfront community.

We analyse the cyclical nature of Newcastle's property market, noting how past economic events, such as the GFC and COVID-19, have influenced buyer confidence and market dynamics. Despite recent high interest rates cooling the market, we observe that certain properties are still trading quickly, particularly in the sub-million dollar range, while others linger on the market longer.

As we look to the future, we discuss the impressive population growth forecast for Newcastle, projected at around 21% over the next two decades, which is above the New South Wales average. This growth is supported by substantial infrastructure investments, including upgrades to Newcastle Airport, the extension of the M1 motorway, and the development of a clean energy precinct at the Port of Newcastle. These projects are expected to create thousands of jobs and boost the local economy, making Newcastle an attractive place to live and invest.

We also touch on the ongoing redevelopment of the East End and Honeysuckle areas, which are becoming increasingly desirable for both residents and investors. With a focus on specific suburbs, we share our top recommendations for investment, including Lambton, New Lambton Heights, and Rankin Park, which are all positioned for significant growth due to their proximity to key amenities like hospitals and universities.

Throughout the episode, we emphasise the importance of understanding the nuances of the property market, including the need for situational awareness when selecting properties. We conclude by inviting listeners to reach out for personalised advice on navigating the Newcastle property landscape.

Join us as we explore the exciting opportunities that Newcastle has to offer for both first-time buyers and seasoned investors. Whether you're looking to buy, sell, or simply learn more about the market, this episode is packed with valuable insights and expert recommendations. Don't miss it!

• 00:00:00 - Introduction to Newcastle's Property Market
• 00:00:24 - Historical Overview of Newcastle
• 00:01:01 - Transition from Industrial to Gentrified City
• 00:02:19 - Sustaining Growth in Newcastle
• 00:03:31 - Impact of Economic Events on the Market
• 00:04:03 - Revitalization of Waterfront Areas
• 00:05:21 - Post-COVID Market Dynamics
• 00:06:27 - Current Buyer’s Market Analysis
• 00:07:23 - Future Market Predictions for 2025
• 00:09:13 - Population Growth and Infrastructure Investment
• 00:10:13 - Long-Term Population Forecast
• 00:11:50 - Major Infrastructure Developments
• 00:12:59 - Newcastle Airport Upgrades
• 00:13:43 - M1 Motorway Extension
• 00:14:52 - Port of Newcastle Developments
• 00:16:00 - John Hunter Hospital Investments
• 00:19:02 - University Expansion and Its Impact
• 00:20:13 - East End Redevelopment
• 00:22:43 - Top Suburbs for Investment
• 00:24:25 - Key Suburbs: New Lambton and Rankin Park
• 00:26:12 - Emerging Areas: Tighes Hill and Mayfield East
• 00:27:25 - Importance of Property Type and Strategy
• 00:28:15 - Future Topics and Conclusion

ABOUT THE HOSTS

BRAD EAST

Brad East is the Managing Director of Wisebuy Home Loans. Brad is an award-winning mortgage broker and has helped thousands of clients gain finance to purchase properties. Wisebuy Home Loans is the go-to mortgage brokerage for clients wanting out-of-the-box applications approved.

Website → https://wisebuygroup.com.au 

LinkedIn → https://www.linkedin.com/in/newcastlemortgagebroker/ 

Instagram → https://www.instagram.com/bradeast_mortgagebroker/ 

Facebook → https://www.facebook.com/bradeastofficial

AARON DOWNIE

Joining the podcast in 2024, Aaron Downie is a seasoned property investor and director of Mackenzie Buyers Agency. Aaron’s deep understanding of the property market and investment strategies provides listeners with invaluable insights.

Website: https://www.mackenziepropertygroup.com.au/

Linkedin: https://www.linkedin.com/in/aaron-downie-1b2749134/

Welcome back to another episode of Talk Property To Me! I'm your host, Brad East, alongside my co-host, Aaron Downie. In today's episode, we dive into a topic that resonates with many: the five common mistakes that first home buyers often make.

We kick things off by discussing the pitfalls of taking too much advice from family and friends, particularly parents. While they may have good intentions, their experiences from decades ago may not apply to today's competitive market. We share a cautionary tale about a client whose father's advice led to a significant financial loss during a property auction. This highlights the importance of trusting professionals in the industry, such as mortgage brokers and buyer's agents, who can provide tailored advice based on current market conditions.

Next, we address the tendency of first home buyers to overextend themselves financially in an attempt to keep up with their peers. We emphasise the importance of understanding your own financial situation and making decisions based on your long-term goals rather than ego or status. We encourage listeners to take the slow and steady approach, focusing on affordability and potential for future equity growth.

Moving on, we discuss the critical mistake of not obtaining an independent pest and building report. We stress the importance of hiring qualified inspectors to ensure that buyers are fully aware of any potential issues with a property, rather than relying on reports provided by real estate agents, which may not be thorough.

We also touch on the dangers of copying others' strategies without considering personal circumstances. Each buyer's situation is unique, and it's essential to align property purchases with individual goals, whether that means buying a home to live in or pursuing a rent-vesting strategy.

Finally, we tackle the common misconception that waiting for market conditions to improve or trying to save more money will lead to better opportunities. We illustrate this with a real-life example of a first home buyer who hesitated to purchase a property within his budget, only to find that market prices were rising faster than he could save. We encourage listeners to act when they are ready, as capital growth can often outpace savings.

Throughout the episode, we provide valuable insights and practical advice for first home buyers, urging them to make informed decisions based on their unique circumstances. If you have any topics you'd like us to cover in future episodes, feel free to reach out in the comments or send us a message. Thanks for tuning in, and we look forward to seeing you next time!

• 00:00:00 - Introduction to Common Mistakes for First Home Buyers
• 00:00:12 - Mistake #1: Over Reliance on Family Advice
• 00:04:26 - Mistake #2: Keeping Up with Friends and Overextending Financially
• 00:06:36 - Mistake #3: Skipping Pest and Building Inspections
• 00:10:10 - Mistake #4: Copying Others' Strategies
• 00:12:03 - Mistake #5: Waiting for Better Market Conditions
• 00:16:01 - Conclusion and Call for Topics

ABOUT THE HOSTS

BRAD EAST

Brad East is the Managing Director of Wisebuy Home Loans. Brad is an award-winning mortgage broker and has helped thousands of clients gain finance to purchase properties. Wisebuy Home Loans is the go-to mortgage brokerage for clients wanting out-of-the-box applications approved.

Website → https://wisebuygroup.com.au 

LinkedIn → https://www.linkedin.com/in/newcastlemortgagebroker/ 

Instagram → https://www.instagram.com/bradeast_mortgagebroker/ 

Facebook → https://www.facebook.com/bradeastofficial

AARON DOWNIE

Joining the podcast in 2024, Aaron Downie is a seasoned property investor and director of Mackenzie Buyers Agency. Aaron’s deep understanding of the property market and investment strategies provides listeners with invaluable insights.

Website: https://www.mackenziepropertygroup.com.au/

Linkedin: https://www.linkedin.com/in/aaron-downie-1b2749134/

Welcome back to another episode of Talk Property to Me! I'm your host, Brad East, alongside my co-host, Aaron Downey. In this episode, we dive deep into one of the most crucial aspects of purchasing a property: submitting offers and negotiating with real estate agents.

We kick off the discussion by emphasising the importance of making a successful offer, which can potentially save you thousands of dollars. We explore the different types of property sales, including private treaties, auctions, and expressions of interest, and how each type influences the negotiation process.

1. Understanding Different Sales Types
2. We explain what a private treaty is and how it can vary from agent to agent. Some agents may accept offers as they come, while others might run a campaign before negotiating.
3. We discuss the auction process, including pre-auction offers and the conditions that come with them.
4. Expressions of interest are also covered, highlighting their use in the current market and the implications for buyers.
5. The Role of Real Estate Agents
6. We delve into how agents qualify buyers and the tactics they use to gauge interest and drive prices up.
7. The concept of "anchoring" is introduced, where agents set a psychological benchmark price to influence buyer perceptions.
8. Negotiation Strategies
9. We share effective negotiation techniques, such as understanding the seller's motivations and using favourable terms to craft your offer.
10. The importance of being prepared with due diligence, including pest and building inspections, is emphasised to strengthen your position.
11. Psychological Tactics
12. We discuss the psychological aspects of negotiation, including the power of silence and the willingness to walk away.
13. The episode highlights how emotional responses can be manipulated by agents and how buyers can maintain control.
14. Real-Life Scenarios
15. Aaron shares his personal experience of buying a property, illustrating the tactics used by agents and how he navigated the process.
16. We also touch on the concept of artificial scarcity and how it can affect buyer decisions.
17. Final Tips for Buyers
18. We conclude with actionable advice for listeners, encouraging them to understand the market, know the seller's needs, and remain calm during negotiations.

Throughout the episode, we stress that real estate agents are not your friends; they work for the seller. Understanding this dynamic is crucial for any buyer looking to navigate the property market successfully.

Join us for this insightful discussion, and don't forget to like, share, and subscribe to our podcast. If you have any topics you'd like us to cover in future episodes, feel free to reach out in our Facebook group. Thanks for tuning in, and we look forward to catching you in the next episode!

00:00:00 - Introduction to Offers and Negotiations

Welcome back to Talk Property to Me. Discussion on the importance of submitting offers and negotiating with agents.

00:00:10 - Types of Sales: Private Treaty, Auctions, and Expressions of Interest

Overview of different sales methods and their implications for making offers.

00:00:37 - The Role of Real Estate Agents in Negotiation

How agents qualify buyers and the importance of the initial interaction.

00:01:10 - Understanding Private Treaty Sales

Explanation of private treaty sales and how offers are handled.

00:02:14 - Negotiation Starts Early

The significance of the first meeting with the agent and how it sets the stage for negotiations.

00:03:17 - Anchoring Tactics in Real Estate

Discussion on the anchoring tactic and how it influences buyer perception.

00:04:36 - Psychology of Pricing and Discounts

How pricing strategies can create a sense of urgency and perceived value.

00:05:57 - Current Market Dynamics

Analysis of buyer behaviour in the current market and the impact of supply and demand.

00:07:50 - Crafting Offers Beyond Price

Importance of terms and conditions in making a compelling offer.

00:09:18 - Understanding Auction Processes

Details on how auctions work and the significance of unconditional offers.

00:10:45 - Expression of Interest Explained

What expressions of interest mean in the current market context.

00:12:22 - Best and Final Offers

Discussion on the concept of best and final offers and the potential pitfalls.

00:13:51 - The Importance of Silence in Negotiation

How silence can be a powerful tool in negotiations with agents.

00:15:16 - Recognizing Artificial Scarcity

Understanding how agents create a sense of urgency and scarcity.

00:17:08 - The Role of Research in Offers

The necessity of thorough research before making an offer.

00:19:04 - Walking Away as a Strategy

The power of being willing to walk away from a deal.

00:20:38 - Emotional Control in Negotiations

The importance of maintaining emotional distance during negotiations.

00:22:44 - Summary of Key Negotiation Tactics

Recap of the main tactics discussed for effective negotiation.

00:24:15 - Top Tips for Buyers in the Current Market

Final advice for buyers on navigating the current real estate landscape.

00:26:03 - Watch Out for Common Tactics

Identifying tactics to be wary of during the buying process.

00:28:05 - Communicating with Conveyancers

The benefits of direct communication with conveyancers over agents.

00:29:12 - Final Thoughts on Real Estate Agents

Understanding the role of agents and the importance of buyer representation.

00:32:05 - Conclusion and Call to Action

Wrap-up of the episode and encouragement to engage with the podcast.

ABOUT THE HOSTS

BRAD EAST

Brad East is the Managing Director of Wisebuy Home Loans. Brad is an award-winning mortgage broker and has helped thousands of clients gain finance to purchase properties. Wisebuy Home Loans is the go-to mortgage brokerage for clients wanting out-of-the-box applications approved.

Website → https://wisebuygroup.com.au 

LinkedIn → https://www.linkedin.com/in/newcastlemortgagebroker/ 

Instagram → https://www.instagram.com/bradeast_mortgagebroker/ 

Facebook → https://www.facebook.com/bradeastofficial

AARON DOWNIE

Joining the podcast in 2024, Aaron Downie is a seasoned property investor and director of Mackenzie Buyers Agency. Aaron’s deep understanding of the property market and investment strategies provides listeners with invaluable insights.

Website: https://www.mackenziepropertygroup.com.au/

Linkedin: https://www.linkedin.com/in/aaron-downie-1b2749134/

Welcome back to another episode of Talk Property To Me! I'm your host, Brad East, alongside my co-host, Aaron Downie. In this episode, we dive deep into the essential steps for first home buyers, providing a comprehensive guide to navigate the often overwhelming process of purchasing your first property.

We kick off the discussion by addressing the most significant hurdle for first-time buyers: saving for a deposit. We explore the common misconceptions surrounding deposit amounts, particularly the traditional 20% benchmark, and introduce the concept of Lenders Mortgage Insurance (LMI). We explain how LMI protects the bank rather than the borrower and discuss the implications of needing to save a substantial deposit versus a smaller one.

Next, we highlight the government initiatives available to assist first home buyers, such as the First Home Loan Deposit Scheme, which allows buyers to purchase with as little as a 5% deposit without incurring LMI. We clarify the eligibility criteria for this scheme and compare it to the shared equity scheme proposed by the Labor government. Additionally, we touch on the First Home Super Saver Scheme, although we note that it’s not as commonly utilised.

As we move forward, we emphasise the importance of understanding all costs associated with buying a home, including stamp duty, legal fees, and inspection costs. We break down the specifics of stamp duty exemptions for first home buyers in New South Wales and discuss how these costs can significantly impact the total amount needed to enter the market.

We also provide practical tips for saving more effectively, such as setting up separate bank accounts to manage living expenses and savings. We share personal anecdotes about investment apps that can help buyers accumulate savings over time.

Transitioning into the finance side of things, we discuss the importance of obtaining pre-approval for a loan and the difference between pre-approval and formal approval. We stress the need for potential buyers to consult with a mortgage broker to understand their borrowing capacity and to prepare for the application process.

In the latter part of the episode, we shift our focus to the property search itself. We discuss how to conduct market research, the significance of understanding your budget, and the factors to consider when choosing a location. We provide insights into the psychology of pricing in real estate and how to interpret guide prices versus sold prices.

Finally, we walk listeners through the process of making an offer, the importance of understanding contracts, and the nuances of auction versus private treaty sales. We emphasise the need for buyers to be well-prepared and informed to make strong offers and navigate the settlement process smoothly.

Throughout the episode, we aim to empower first home buyers with the knowledge and tools they need to make informed decisions in their property journey. Whether you're just starting to save or are ready to make an offer, this episode is packed with valuable insights to help you succeed in the competitive real estate market.

Join us as we break down the complexities of buying your first home and provide you with the confidence to take the next steps in your property journey!

• 00:00:00 - Introduction to First Home Buyers 101
• 00:01:06 - The Challenge of Saving a Deposit
• 00:01:17 - Understanding Lenders Mortgage Insurance (LMI)
• 00:02:10 - Government Schemes: First Home Loan Deposit Scheme
• 00:04:14 - Eligibility for Government Schemes
• 00:05:37 - First Home Super Saver Scheme
• 00:06:33 - Additional Costs Beyond the Deposit
• 00:07:04 - Stamp Duty Exemptions for First Home Buyers
• 00:08:00 - Legal Fees and Other Costs
• 00:09:03 - Inspection Costs and Their Importance
• 00:09:36 - First Home Owners Grant Overview
• 00:10:51 - Strategies for Saving More
• 00:11:26 - Investment Apps and Budgeting Tips
• 00:12:57 - Guarantor Loans Explained
• 00:13:54 - The Importance of Pre-Approval
• 00:15:39 - Understanding Borrowing Capacity
• 00:19:25 - Credit Scores and Their Impact
• 00:21:00 - Managing Credit Inquiries
• 00:23:12 - Types of Home Loans: Fixed vs. Variable
• 00:25:32 - Offset Accounts vs. Redraw Facilities
• 00:27:51 - Finalising the Finance Side
• 00:28:11 - Researching the Property Market
• 00:30:07 - Understanding Market Dynamics
• 00:31:04 - Analysing Days on Market
• 00:32:02 - Making Strong Offers
• 00:34:35 - Navigating the Offer Process
• 00:36:06 - Understanding Contracts and Cooling Off Periods
• 00:38:01 - Auction vs. Private Treaty Purchases
• 00:39:54 - Vendor Considerations in Offers
• 00:40:21 - Final Steps After Offer Acceptance
• 00:42:57 - Settlement Day Expectations
• 00:45:02 - Conclusion and Advice for First Home Buyers

ABOUT THE HOSTS

BRAD EAST

Brad East is the Managing Director of Wisebuy Home Loans. Brad is an award-winning mortgage broker and has helped thousands of clients gain finance to purchase properties. Wisebuy Home Loans is the go-to mortgage brokerage for clients wanting out-of-the-box applications approved.

Website → https://wisebuygroup.com.au 

LinkedIn → https://www.linkedin.com/in/newcastlemortgagebroker/ 

Instagram → https://www.instagram.com/bradeast_mortgagebroker/ 

Facebook → https://www.facebook.com/bradeastofficial

AARON DOWNIE

Joining the podcast in 2024, Aaron Downie is a seasoned property investor and director of Mackenzie Buyers Agency. Aaron’s deep understanding of the property market and investment strategies provides listeners with invaluable insights.

Website: https://www.mackenziepropertygroup.com.au/

Linkedin: https://www.linkedin.com/in/aaron-downie-1b2749134/

In this episode of Talk Property To Me, hosts Brad East and Thomas Hook from Walkom Real Estate delve into the current state and future predictions of property prices in Australia, with a particular focus on Newcastle, New South Wales.

We kick off the discussion by addressing the pressing issue of housing shortages in Australia, exacerbated by soaring immigration rates. With the Australian government granting 1.1 million new visas in 2023, we highlight the stark contrast between this surge in demand and the 8.1% drop in housing approvals during the same period. This imbalance raises significant concerns about the future of housing availability.

Thomas shares some eye-opening statistics regarding construction costs, which have skyrocketed by 30% since early 2021. We explore the reasons behind these rising costs, including supply chain disruptions and a tight labour market, which have made it increasingly difficult for builders to meet the growing demand for housing. The conversation touches on the impact of government infrastructure projects that are diverting labour away from residential construction, further complicating the situation.

As we analyse the current real estate landscape, we discuss the challenges faced by potential homebuyers and investors. With rental vacancy rates hovering around 1% nationwide, we reflect on the difficulties renters are experiencing in finding suitable properties. We also examine the high expectations of vendors in the current market, leading to longer days on market for listings.

Throughout the episode, we consider innovative solutions being implemented in countries like Japan and Sweden, particularly the rise of prefab housing as a potential answer to the housing crisis. We discuss how these models could be adapted to the Australian context, especially in light of our unique land availability issues.

Finally, we wrap up the episode by discussing the local market dynamics in Newcastle, noting the increase in listings but a decrease in buyer urgency. We speculate on the potential for a market rebound if interest rates drop, which could reignite buyer activity and influence property prices.

As always, we encourage our listeners to engage with us by leaving comments or questions, and we welcome suggestions for future topics. Join us for this insightful discussion as we navigate the complexities of the Australian property market and its future trajectory.

• 00:00:00 - Introduction and Overview
• 00:01:12 - Current Housing Shortage
• 00:01:54 - Rising Construction Costs
• 00:03:12 - Supply Chain Disruptions
• 00:05:03 - Immigration vs. Housing Approvals
• 00:06:26 - Rental Market Pressures
• 00:08:18 - Need for Regional Development
• 00:09:49 - Pandemic's Long-Term Effects
• 00:12:52 - Builder Liquidations
• 00:14:57 - Government Initiatives for Housing Affordability
• 00:16:22 - Delays in Council Approvals
• 00:18:45 - Prefab Housing Solutions
• 00:20:02 - Local Market Trends
• 00:22:52 - Impact of Interest Rates on Buyer Behaviour
• 00:24:49 - Conclusion and Call to Action

ABOUT THE HOSTS

BRAD EAST

Brad East is the Managing Director of Wisebuy Home Loans. Brad is an award-winning mortgage broker and has helped thousands of clients gain finance to purchase properties. Wisebuy Home Loans is the go-to mortgage brokerage for clients wanting out-of-the-box applications approved.

Website → https://wisebuygroup.com.au 

LinkedIn → https://www.linkedin.com/in/newcastlemortgagebroker/ 

Instagram → https://www.instagram.com/bradeast_mortgagebroker/ 

Facebook → https://www.facebook.com/bradeastofficial

AARON DOWNIE

Joining the podcast in 2024, Aaron Downie is a seasoned property investor and director of Mackenzie Buyers Agency. Aaron’s deep understanding of the property market and investment strategies provides listeners with invaluable insights.

Website: https://www.mackenziepropertygroup.com.au/

Linkedin: https://www.linkedin.com/in/aaron-downie-1b2749134/

Welcome back to another episode of Talk Property To Me! I'm your host, Brad East, alongside my co-host, Aaron Downie. In this episode, we dive deep into the Top 10 Rules of Property Investing, a compilation of essential guidelines we've gathered from our years of experience in the industry. These rules are designed to be non-negotiable principles that can significantly enhance your success in property investing.

We kick off the discussion with Rule #1: Location. We emphasize the importance of choosing the right location for your investment property, highlighting that not all locations are created equal. We discuss factors such as population growth, future development, and economic activity that can influence property values. We also touch on the idea of investing in familiar markets, like Newcastle, and the potential benefits of working with a buyer's agent if you're looking to expand your portfolio quickly.

Next, we move to Rule #2: Power of Leverage. We explain how leveraging equity can amplify your wealth, allowing you to invest in properties worth significantly more than your initial deposit. We also discuss the implications of Loan-to-Value Ratios (LVR) and how they can affect your cash flow.

In Rule #3: Balance of Cash Flow and Growth, we stress the importance of diversifying your property types to achieve a mix of high yields and capital growth. We provide strategies for increasing cash flow, such as adding granny flats or investing in different suburbs.

Rule #4: Know Your Numbers is crucial for any investor. We urge listeners to avoid guesswork and instead rely on detailed calculations of income, expenses, and potential returns. We highlight the importance of understanding all costs associated with property investment, including management fees and exit costs.

Moving on to Rule #5: Time in the Market, we discuss the significance of long-term investment over trying to time the market perfectly. We share insights on how compounding growth can lead to substantial wealth over time.

In Rule #6: Speculation, we caution against relying on media headlines and speculation when making investment decisions. Instead, we recommend using reliable data sources and tools to inform your choices.

Rule #7: Exit Strategy is another vital aspect we cover. We emphasize the need to have a clear plan for how you will exit your investment, whether through selling, pulling equity, or converting the property into your principal residence.

Rule #8: Diversification encourages investors to consider different asset types and locations. We discuss the merits of investing in apartments versus houses and the importance of understanding market demand.

In Rule #9: Using the Tax System to Your Advantage, we delve into strategies like negative gearing and depreciation. We stress the importance of working with a knowledgeable accountant to maximize your tax benefits.

Finally, we wrap up with Rule #10: Build a Professional Network. We highlight the necessity of surrounding yourself with experienced professionals, such as accountants, mortgage brokers, and buyer's agents, to support your investment journey.

Join us as we unpack these rules in detail, providing you with the insights and knowledge you need to navigate the property investment landscape successfully. Don't forget to subscribe, like, and share your thoughts with us! We look forward to catching you in the next episode, where we may explore property cycles or delve deeper into gearing and tax advantages. Thank you for listening!

• 00:00:00 - Introduction to Property Investing Rules
• 00:00:10 - Rule 1: Location Matters
• 00:01:00 - Understanding Location Dynamics
• 00:02:20 - Rule 2: Power of Leverage
• 00:04:01 - Rule 3: Balance of Cash Flow and Growth
• 00:05:22 - Diversifying Property Types for Cash Flow
• 00:06:31 - Rule 4: Know Your Numbers
• 00:07:12 - Importance of Detailed Financial Analysis
• 00:09:21 - Rule 5: Time in the Market
• 00:10:23 - Rule 6: Avoid Speculation
• 00:11:56 - Using Reliable Data Sources
• 00:12:20 - Rule 7: Exit Strategy Planning
• 00:13:32 - Rule 8: Diversification in Investments
• 00:14:50 - Rule 9: Utilizing the Tax System
• 00:16:20 - Understanding Negative Gearing and Deductions
• 00:17:32 - Rule 10: Building a Professional Network
• 00:18:20 - Choosing the Right Professionals
• 00:20:17 - Final Thoughts and Next Episode Preview

ABOUT THE HOSTS

BRAD EAST

Brad East is the Managing Director of Wisebuy Home Loans. Brad is an award-winning mortgage broker and has helped thousands of clients gain finance to purchase properties. Wisebuy Home Loans is the go-to mortgage brokerage for clients wanting out-of-the-box applications approved.

Website → https://wisebuygroup.com.au 

LinkedIn → https://www.linkedin.com/in/newcastlemortgagebroker/ 

Instagram → https://www.instagram.com/bradeast_mortgagebroker/ 

Facebook → https://www.facebook.com/bradeastofficial

AARON DOWNIE

Joining the podcast in 2024, Aaron Downie is a seasoned property investor and director of Mackenzie Buyers Agency. Aaron’s deep understanding of the property market and investment strategies provides listeners with invaluable insights.

Website: https://www.mackenziepropertygroup.com.au/

Linkedin: https://www.linkedin.com/in/aaron-downie-1b2749134/