1 00:00:00,120 --> 00:00:02,000 Speaker 1: Matt Hood. Welcome to Probably Insights. 2 00:00:02,120 --> 00:00:04,120 Speaker 2: Thank you Mark. Thanks, It's an honor to be here. 3 00:00:04,559 --> 00:00:07,400 Speaker 1: Mate. Where's love Wood come from? I know it's Lebanese name, 4 00:00:07,480 --> 00:00:09,840 Speaker 1: but where's where's your. 5 00:00:09,680 --> 00:00:13,720 Speaker 2: Family from Lebanese background? Yeah, I'm my parents and my 6 00:00:13,760 --> 00:00:17,320 Speaker 2: grandparents were born in Australia, so we have zero heritage 7 00:00:17,880 --> 00:00:21,120 Speaker 2: unfortunately or whatever. But yeah, they think they came here 8 00:00:21,160 --> 00:00:24,640 Speaker 2: in about eighteen ninety Oh wow. Yeah, very first Lebanese 9 00:00:24,800 --> 00:00:28,240 Speaker 2: people to come to Australia, A big deal. Would have 10 00:00:28,280 --> 00:00:28,920 Speaker 2: been a big. 11 00:00:28,760 --> 00:00:31,160 Speaker 1: Deal leaving Lebanon and arriving in Sydney. 12 00:00:31,320 --> 00:00:35,960 Speaker 2: Absolutely, and they all started with the no education, couldn't. 13 00:00:35,600 --> 00:00:37,000 Speaker 1: Speak that to learn the hard way. 14 00:00:37,080 --> 00:00:38,920 Speaker 2: A lot of them are born out in the country, 15 00:00:39,200 --> 00:00:43,440 Speaker 2: so central New South Wales in Verrel Armadale. My dad's 16 00:00:43,440 --> 00:00:44,240 Speaker 2: born into Woomba. 17 00:00:44,360 --> 00:00:45,880 Speaker 1: They're probably working on farms and stuff. 18 00:00:46,159 --> 00:00:49,559 Speaker 2: Absolutely, Yeah, rag traders and my dad actually ended up 19 00:00:49,560 --> 00:00:53,320 Speaker 2: building a footwear importing business. He ended up building one 20 00:00:53,320 --> 00:00:56,480 Speaker 2: of the biggest in Australia and sold that years ago 21 00:00:56,560 --> 00:01:01,520 Speaker 2: to Dunlop all companies. But grandparents for all fruiterers and 22 00:01:01,680 --> 00:01:03,760 Speaker 2: all that sort of stuff. So yeah, they I found 23 00:01:03,760 --> 00:01:06,120 Speaker 2: me know the story. I found my way too real estate. So, oh, 24 00:01:06,240 --> 00:01:08,160 Speaker 2: how did you get into real estate? Well, Mum and 25 00:01:08,200 --> 00:01:11,199 Speaker 2: Dad actually bought some properties when I was very young, 26 00:01:11,360 --> 00:01:14,360 Speaker 2: and they couldn't afford to manage to have an agent 27 00:01:14,440 --> 00:01:16,679 Speaker 2: managing them. So Mom used to drag me out on 28 00:01:16,720 --> 00:01:19,920 Speaker 2: Saturdays to go and find the tenants. So I'd stand 29 00:01:19,959 --> 00:01:23,360 Speaker 2: there with her, and I actually quite enjoyed talking to 30 00:01:23,400 --> 00:01:26,440 Speaker 2: protect potential tenants with her. And she said, you know, 31 00:01:26,520 --> 00:01:29,560 Speaker 2: this is actually a job. I said, what Really? If 32 00:01:29,600 --> 00:01:34,160 Speaker 2: a work experience went in real estate found somebody who 33 00:01:34,280 --> 00:01:37,920 Speaker 2: was an absolute brilliant mentor. I was young, I was seventeen, 34 00:01:38,080 --> 00:01:40,280 Speaker 2: left school and he said, look, you can really be 35 00:01:40,319 --> 00:01:42,240 Speaker 2: successful in this business. He's got to do two or 36 00:01:42,240 --> 00:01:43,640 Speaker 2: three things and don't change them. 37 00:01:43,640 --> 00:01:44,280 Speaker 1: Well were they? 38 00:01:44,800 --> 00:01:48,080 Speaker 2: One was never party on the weekend because your biggest 39 00:01:48,120 --> 00:01:51,960 Speaker 2: day Saturday. Two, don't drink, stay off the drink, stay 40 00:01:52,000 --> 00:01:56,440 Speaker 2: off the drug staff, the party stuff. It's quite funny. 41 00:01:56,520 --> 00:01:58,840 Speaker 2: I haven't had a drink since I was nineteen. Wow, 42 00:01:58,920 --> 00:02:02,040 Speaker 2: I'm fifty two. Wow, that's so very unusual in our 43 00:02:02,080 --> 00:02:05,200 Speaker 2: game social game that it is, But just something you 44 00:02:05,200 --> 00:02:07,240 Speaker 2: know that sticks with you. And he said, I'll turn 45 00:02:07,280 --> 00:02:08,840 Speaker 2: you into a very successful person. 46 00:02:09,000 --> 00:02:10,080 Speaker 1: Just follow what I do. 47 00:02:11,760 --> 00:02:15,720 Speaker 2: George Sava. Actually, George is still in the game. He's 48 00:02:16,400 --> 00:02:20,320 Speaker 2: mid seventies now, so he was around that sort of 49 00:02:21,080 --> 00:02:25,200 Speaker 2: forty ish, like late thirties forty age and he sort 50 00:02:25,240 --> 00:02:27,720 Speaker 2: of just has a small business now. But he was 51 00:02:27,840 --> 00:02:30,639 Speaker 2: very successful and I was very young, and he just 52 00:02:30,720 --> 00:02:32,720 Speaker 2: knew what to say to me, and I wanted to 53 00:02:32,720 --> 00:02:35,720 Speaker 2: be like him. He was my early mentor. And then 54 00:02:36,080 --> 00:02:39,240 Speaker 2: five years after that I ended up leaving that small 55 00:02:39,280 --> 00:02:41,919 Speaker 2: business and ran into John McGrath at an open for inspection. 56 00:02:42,120 --> 00:02:45,280 Speaker 2: The work for John for twenty years. Wow did you well, yeah, 57 00:02:45,560 --> 00:02:47,760 Speaker 2: work with him and became a head of sales there 58 00:02:48,000 --> 00:02:49,320 Speaker 2: during the James dak period. 59 00:02:49,400 --> 00:02:49,960 Speaker 1: Absolutely. 60 00:02:50,440 --> 00:02:52,440 Speaker 2: James actually was the one that reached out to me 61 00:02:52,520 --> 00:02:54,919 Speaker 2: and said you need to be working with us. He said, 62 00:02:54,919 --> 00:02:56,560 Speaker 2: I know a lot of people that you know, and 63 00:02:56,600 --> 00:02:58,320 Speaker 2: he went to school at St Mary's. I went to 64 00:02:58,320 --> 00:03:01,200 Speaker 2: school at Ramwick. Lot of his friends knew me, and 65 00:03:01,720 --> 00:03:03,240 Speaker 2: James said, you've got to come and work with us. 66 00:03:03,280 --> 00:03:05,240 Speaker 2: We're going to build a serious business. John and I 67 00:03:05,720 --> 00:03:09,000 Speaker 2: and I was like, it was not a big brand 68 00:03:09,040 --> 00:03:11,440 Speaker 2: at all. I was working for a major Richardson a 69 00:03:11,440 --> 00:03:14,120 Speaker 2: wrench and they had dominated the market. 70 00:03:14,480 --> 00:03:15,440 Speaker 1: John had this vision. 71 00:03:15,480 --> 00:03:17,320 Speaker 2: He scratched it out on a never forget on the 72 00:03:17,360 --> 00:03:20,000 Speaker 2: back of an envelope with James dak and I said, 73 00:03:20,040 --> 00:03:22,239 Speaker 2: I like it, but I don't know. I'm nervous some 74 00:03:22,280 --> 00:03:26,160 Speaker 2: I'm like twenty with someone who's been mentoring me since 75 00:03:26,160 --> 00:03:29,679 Speaker 2: I was seventeen, and James convinced me to come over, 76 00:03:29,760 --> 00:03:32,520 Speaker 2: and at the end I became a shareholder and ended 77 00:03:32,600 --> 00:03:36,080 Speaker 2: up growing that business dramatically right through to twenty sixteen, 78 00:03:37,160 --> 00:03:39,440 Speaker 2: which was great, probably twenty years best years of my 79 00:03:39,480 --> 00:03:42,760 Speaker 2: real estate life. Then journeyed off and started the agency 80 00:03:43,080 --> 00:03:43,680 Speaker 2: from scratch. 81 00:03:43,880 --> 00:03:47,000 Speaker 1: So you're you're the original principle of the agency. You're 82 00:03:47,040 --> 00:03:49,360 Speaker 1: the franchise or hold the head franchise. That's right, it's 83 00:03:49,400 --> 00:03:51,280 Speaker 1: a company owned business. It's not actually a. 84 00:03:51,240 --> 00:03:53,760 Speaker 2: Franchise, so you own all the Yeah, we've got eight 85 00:03:53,840 --> 00:03:59,000 Speaker 2: hundred and forty staff nationally, I mean Perce, Sydney, Melbourne, Brisbane, 86 00:03:59,600 --> 00:04:03,240 Speaker 2: cam not in Adelaide yet, but we've grown rapidly. I 87 00:04:03,280 --> 00:04:05,720 Speaker 2: had some very big supporters behind us at the start 88 00:04:05,960 --> 00:04:07,320 Speaker 2: who wanted to help us grow it. 89 00:04:07,400 --> 00:04:08,680 Speaker 1: So what does that mean? 90 00:04:09,240 --> 00:04:11,440 Speaker 2: Some other investors that came in with us, people a 91 00:04:11,480 --> 00:04:14,040 Speaker 2: lot i'd met in my journey that said, listen, we 92 00:04:14,080 --> 00:04:16,400 Speaker 2: want to build a big business as well. We want 93 00:04:16,440 --> 00:04:18,400 Speaker 2: you to come and head it up with us, and 94 00:04:18,600 --> 00:04:22,080 Speaker 2: you know, we're all going together and let's build a 95 00:04:22,200 --> 00:04:26,599 Speaker 2: national business. So I'd been twenty two years with Johnny 96 00:04:26,680 --> 00:04:29,600 Speaker 2: sort of running that business in terms of the sales team. 97 00:04:29,640 --> 00:04:32,279 Speaker 2: So I was looking to quieten down a bit, not 98 00:04:32,320 --> 00:04:34,920 Speaker 2: actually keep going. These guys said, you're going to get 99 00:04:34,920 --> 00:04:37,719 Speaker 2: bored your mid forties. You want to do something small, 100 00:04:37,800 --> 00:04:38,599 Speaker 2: Let's do something big. 101 00:04:38,680 --> 00:04:41,200 Speaker 1: So here we are, and you just give us some context. 102 00:04:41,240 --> 00:04:44,839 Speaker 1: So in a reasonable get what with the agency do 103 00:04:45,600 --> 00:04:46,960 Speaker 1: in terms of sales? For example? 104 00:04:47,000 --> 00:04:49,960 Speaker 2: Okay, well about six thousand sales now we're doing, and 105 00:04:50,160 --> 00:04:53,160 Speaker 2: about one hundred and twenty odd million in commission per year. 106 00:04:53,400 --> 00:04:55,719 Speaker 1: What's it like in terms of top total sales. 107 00:04:56,560 --> 00:05:00,440 Speaker 2: By billions into the billions. I'd have to confirm that number. 108 00:05:00,800 --> 00:05:04,760 Speaker 2: But we've also got like a ten thousand properties under management. 109 00:05:04,960 --> 00:05:08,000 Speaker 2: We've grown our rent role in a very fast way. 110 00:05:08,920 --> 00:05:12,080 Speaker 2: That's something we've really focused on obviously, you know, with 111 00:05:12,120 --> 00:05:14,440 Speaker 2: a rental crisis, we've been very close to what's been 112 00:05:14,480 --> 00:05:18,359 Speaker 2: happening there with ten thousand landlords, and we're continuing to 113 00:05:18,400 --> 00:05:20,120 Speaker 2: grow that it's been one of our strategies. 114 00:05:20,400 --> 00:05:23,640 Speaker 1: Yeah, so we're acquiring, well what to be good? Then 115 00:05:25,160 --> 00:05:27,919 Speaker 1: Matt is to find out from you sort of just 116 00:05:27,920 --> 00:05:30,359 Speaker 1: get some insights thee because this is core property insight. 117 00:05:30,480 --> 00:05:32,800 Speaker 1: So yeah, not that I expect you to be an 118 00:05:32,800 --> 00:05:35,640 Speaker 1: expert in every place that you guys operating, but you'd 119 00:05:35,640 --> 00:05:39,320 Speaker 1: have a good idea about what's going on. So yeah, 120 00:05:39,880 --> 00:05:42,760 Speaker 1: we'll get numbers from core Logic or prop Track or whatever, 121 00:05:42,839 --> 00:05:45,440 Speaker 1: and they will tell us that the property market is 122 00:05:45,600 --> 00:05:50,280 Speaker 1: growing at a fairly reasonable clip, notwithstanding that we've had 123 00:05:50,279 --> 00:05:52,599 Speaker 1: a lot of rate rises and interest rates a fairly 124 00:05:52,680 --> 00:05:58,880 Speaker 1: high relative to our level of borrowings. But that's an average, 125 00:05:58,920 --> 00:06:04,040 Speaker 1: it's a national average. Now do you see in the agency, 126 00:06:04,480 --> 00:06:08,280 Speaker 1: across all your frame, across all your offices, yep? Do 127 00:06:08,360 --> 00:06:15,080 Speaker 1: you see any areas which are starting to feel the 128 00:06:15,200 --> 00:06:17,880 Speaker 1: pinch in relationship to these high interest rates being here 129 00:06:17,920 --> 00:06:20,080 Speaker 1: for so long? Absolutely? Absolutely so. 130 00:06:20,600 --> 00:06:23,600 Speaker 2: I think the top end of Sydney the last couple 131 00:06:23,640 --> 00:06:28,000 Speaker 2: of weekends what I've noticed Mark, which is quite interesting. 132 00:06:28,480 --> 00:06:31,400 Speaker 2: Twelve months ago you'd have an owner around say Lower 133 00:06:31,480 --> 00:06:33,760 Speaker 2: north Shore eacent suburbs who just go and buy something 134 00:06:33,800 --> 00:06:35,560 Speaker 2: if they saw it then put theirs on the market. 135 00:06:36,320 --> 00:06:39,680 Speaker 2: Now what we're noticing they're not taking that risk at 136 00:06:39,680 --> 00:06:40,080 Speaker 2: the moment. 137 00:06:40,360 --> 00:06:41,119 Speaker 1: They sell first. 138 00:06:41,200 --> 00:06:43,760 Speaker 2: So they're selling first, which is very unusual because that 139 00:06:43,920 --> 00:06:46,200 Speaker 2: was something that people never They don't want to move 140 00:06:46,240 --> 00:06:48,960 Speaker 2: twice and effectively if they can't find but they're not 141 00:06:49,000 --> 00:06:50,960 Speaker 2: sure what they're going to get because the market keeps 142 00:06:51,040 --> 00:06:53,119 Speaker 2: changing a bit in the last sort of ninety days 143 00:06:53,120 --> 00:06:56,000 Speaker 2: now in that sort of north of four million range, 144 00:06:56,040 --> 00:06:59,080 Speaker 2: I guess, so that's a phenomenon that's actually stopped the 145 00:06:59,120 --> 00:07:02,560 Speaker 2: clearance rates come back for that exact reason, something people 146 00:07:02,560 --> 00:07:04,839 Speaker 2: aren't discussing out there in the market. I'm watching it 147 00:07:04,880 --> 00:07:08,880 Speaker 2: happening every weekend, where usually people just go and buy 148 00:07:08,920 --> 00:07:11,200 Speaker 2: something and go, okay, let's sell ours. Of course, they 149 00:07:11,240 --> 00:07:14,160 Speaker 2: don't know what they're going to get now they're. 150 00:07:14,000 --> 00:07:15,480 Speaker 1: Selling it first. Do you mean they don't know what 151 00:07:15,480 --> 00:07:16,120 Speaker 1: price are going to get? 152 00:07:16,160 --> 00:07:19,640 Speaker 2: Price you're going to get after they purchase. So effectively, 153 00:07:19,680 --> 00:07:22,880 Speaker 2: they're selling first, which is bottlenecking the market at the 154 00:07:22,880 --> 00:07:25,360 Speaker 2: moment because there's a whole lot of new properties coming 155 00:07:25,400 --> 00:07:27,760 Speaker 2: on and people are saying, I have a crack at this, 156 00:07:27,800 --> 00:07:30,840 Speaker 2: but haven't sold mine first? Right now, that's completely different 157 00:07:30,840 --> 00:07:31,640 Speaker 2: than twelve months ago. 158 00:07:31,960 --> 00:07:35,200 Speaker 1: Yeah, So what would you put that down to then, 159 00:07:35,760 --> 00:07:37,320 Speaker 1: apart from the lack of certainty, you mean. 160 00:07:37,560 --> 00:07:39,760 Speaker 2: I think it's the it's a food chain, right, so 161 00:07:39,880 --> 00:07:42,600 Speaker 2: people buying their property that they're selling to buy that 162 00:07:42,680 --> 00:07:45,480 Speaker 2: property probably haven't got as much firepower as they had 163 00:07:45,640 --> 00:07:48,920 Speaker 2: twelve months ago, coming from like selling a four million 164 00:07:49,000 --> 00:07:50,560 Speaker 2: or a three million dollar house to buy a six 165 00:07:50,560 --> 00:07:52,240 Speaker 2: million dollar one and move up that way. 166 00:07:52,280 --> 00:07:53,360 Speaker 1: If you look at the. 167 00:07:53,280 --> 00:07:56,440 Speaker 2: Market sort of right around here where we're sitting effectively 168 00:07:56,800 --> 00:07:59,119 Speaker 2: and closer to the harbor. So I think the food 169 00:07:59,160 --> 00:08:02,760 Speaker 2: chains slowing down the movement up, so we've got a 170 00:08:02,760 --> 00:08:05,120 Speaker 2: bit of a bottleneck and there's more properties coming on 171 00:08:05,360 --> 00:08:07,880 Speaker 2: right now. It's going to be right, yeah, absolutely, which 172 00:08:07,880 --> 00:08:10,680 Speaker 2: talk about top end right, yeah, you say now right, 173 00:08:10,920 --> 00:08:14,240 Speaker 2: just saying general general Sydney market right now. Spring everybody 174 00:08:14,480 --> 00:08:16,720 Speaker 2: think springs usually the best time, and then. 175 00:08:16,560 --> 00:08:18,280 Speaker 1: We load up in sort of August and they sort 176 00:08:18,280 --> 00:08:21,960 Speaker 1: of start getting it ready for one spring September. 177 00:08:21,600 --> 00:08:25,200 Speaker 2: Yeah, September each weekend. Now we're seeing more auctions coming on, 178 00:08:25,320 --> 00:08:28,920 Speaker 2: right Jamian. Would I think you mentioned that on your career. Yeah, 179 00:08:29,000 --> 00:08:30,960 Speaker 2: so we're going to be seeing we're seeing a lot 180 00:08:31,000 --> 00:08:33,720 Speaker 2: more listings coming on. Core Logic are saying they're seeing 181 00:08:33,840 --> 00:08:36,920 Speaker 2: the listing auction listings going from two thousand up to 182 00:08:37,000 --> 00:08:40,120 Speaker 2: three thousand, peaking at the end of October, first week 183 00:08:40,120 --> 00:08:41,319 Speaker 2: in November, so. 184 00:08:41,280 --> 00:08:43,880 Speaker 1: That that would be people who already sort of advertising 185 00:08:44,000 --> 00:08:46,760 Speaker 1: to some extent correct list four weeks or something then 186 00:08:46,840 --> 00:08:50,080 Speaker 1: coming on. Yeah, yeah, and are and clearance rates are 187 00:08:50,240 --> 00:08:50,880 Speaker 1: how are you seeing? 188 00:08:50,960 --> 00:08:54,800 Speaker 2: Clearance rates have been steady, The biddings not aggressive anywhere 189 00:08:54,920 --> 00:08:55,600 Speaker 2: year what it was? 190 00:08:56,160 --> 00:08:57,240 Speaker 1: What do you mean by aggressive? 191 00:08:57,320 --> 00:08:59,840 Speaker 2: So well, you'd have three or four people trying to 192 00:09:00,200 --> 00:09:03,160 Speaker 2: one property each weekend, probably for a good period of time. 193 00:09:03,280 --> 00:09:05,839 Speaker 2: The last twelve months now we're seeing maybe three or 194 00:09:05,840 --> 00:09:09,440 Speaker 2: four people coming, but only one or two really having 195 00:09:09,440 --> 00:09:11,960 Speaker 2: a bid, but not really prepared to go a lot 196 00:09:12,000 --> 00:09:14,000 Speaker 2: further than they were. So they have the number, they stop, 197 00:09:14,160 --> 00:09:17,880 Speaker 2: that's it. So they're budgeting more that again probably coming 198 00:09:17,920 --> 00:09:20,439 Speaker 2: back to some of them maybe bidding still that haven't sold, 199 00:09:20,480 --> 00:09:22,520 Speaker 2: so they're not sure they're going to stop at a 200 00:09:22,520 --> 00:09:25,199 Speaker 2: limit because they sort of might have not yet put 201 00:09:25,240 --> 00:09:27,960 Speaker 2: theirs on the market, which I discussed before, but there's 202 00:09:27,960 --> 00:09:30,000 Speaker 2: a bit of that happened. There's also just interrepidation of 203 00:09:30,080 --> 00:09:31,720 Speaker 2: what's happening with the interest rates? 204 00:09:32,280 --> 00:09:34,839 Speaker 1: And do they say that to your agents? They do? 205 00:09:35,120 --> 00:09:35,520 Speaker 1: They do? 206 00:09:35,559 --> 00:09:38,000 Speaker 2: They say that, they say, we haven't sold ours is something. 207 00:09:38,040 --> 00:09:40,360 Speaker 2: That's why I thought i'd mentioned that today because it's 208 00:09:40,400 --> 00:09:43,240 Speaker 2: not really been discussed out there. They're talking about interest 209 00:09:43,320 --> 00:09:46,800 Speaker 2: rates and clearance rates, but what's the actual reason. That's 210 00:09:46,840 --> 00:09:50,680 Speaker 2: actually the reason. Yeah, shift in the shift in changing 211 00:09:50,720 --> 00:09:55,000 Speaker 2: a buyer behavior, which is will buy first, which is 212 00:09:55,040 --> 00:09:56,680 Speaker 2: something on the market, will buy it, that keeps the 213 00:09:56,679 --> 00:09:59,520 Speaker 2: clearance rates up. Then we'll sell and there's plent There 214 00:09:59,520 --> 00:10:01,439 Speaker 2: wasn't enough property coming on, so that was keeping the 215 00:10:01,480 --> 00:10:04,559 Speaker 2: clearance rates up. Now we've got this complete shift of 216 00:10:04,640 --> 00:10:07,040 Speaker 2: thinking is we're not going to buy that, look at it. 217 00:10:07,080 --> 00:10:08,680 Speaker 2: But if we're going to put ours on the market 218 00:10:08,760 --> 00:10:11,040 Speaker 2: in a month, if we get our price and that's 219 00:10:11,040 --> 00:10:14,760 Speaker 2: still there, that's cleared out. There's only so many buyers right. 220 00:10:15,040 --> 00:10:18,760 Speaker 1: Yeah, So there much buyers are becoming much more discerning, 221 00:10:19,000 --> 00:10:21,480 Speaker 1: much more decening, a lot less risk, a lot less risk, 222 00:10:21,760 --> 00:10:24,400 Speaker 1: a risk averse right now and then and therefore we'll 223 00:10:24,400 --> 00:10:28,600 Speaker 1: pay less. Absolutely, there's not a frenzy. Not a frenzy 224 00:10:28,679 --> 00:10:32,160 Speaker 1: with more competition marked too, so more listings coming on it. 225 00:10:32,280 --> 00:10:35,600 Speaker 1: Care Logics numbers two thousand actions last weekend, looking at 226 00:10:35,600 --> 00:10:39,000 Speaker 1: peaking at nearly three thousand at the end of October. 227 00:10:40,160 --> 00:10:42,360 Speaker 1: There's going to be just more properties that we're not 228 00:10:42,440 --> 00:10:46,120 Speaker 1: replacing that with probably more buyers until people can move 229 00:10:46,200 --> 00:10:49,959 Speaker 1: around and sell theirs, because there's this difference between buyers 230 00:10:50,000 --> 00:10:52,080 Speaker 1: and sellers, like there being a lot more buyers than 231 00:10:52,080 --> 00:10:56,679 Speaker 1: there have been sellers, which is the reason why any marketplace, 232 00:10:56,760 --> 00:10:59,280 Speaker 1: the asset goes up in value. You know, there's greater 233 00:10:59,360 --> 00:11:03,120 Speaker 1: demand than the supply, but all of a sudden your 234 00:11:03,360 --> 00:11:05,840 Speaker 1: I think what just sort of indicates me is that 235 00:11:05,880 --> 00:11:08,679 Speaker 1: there's been a shift, according to court logic in the 236 00:11:08,760 --> 00:11:13,480 Speaker 1: numbers of the supply number yep. So if you if 237 00:11:13,520 --> 00:11:17,120 Speaker 1: you say four thousand properties, which a mean nationally in 238 00:11:17,200 --> 00:11:20,200 Speaker 1: the end of towards end of October, is that four 239 00:11:20,200 --> 00:11:24,320 Speaker 1: thousand a week, it's four thousand, yeah, per week in 240 00:11:24,320 --> 00:11:27,600 Speaker 1: that particular week, particularly then of October. What would that 241 00:11:27,640 --> 00:11:28,880 Speaker 1: have been, say a year ago. 242 00:11:29,800 --> 00:11:32,400 Speaker 2: It was a lot that was actually quite a lot less. 243 00:11:32,760 --> 00:11:35,760 Speaker 2: So there's more people selling. I think that probably could 244 00:11:35,800 --> 00:11:38,280 Speaker 2: be a twenty percent uplift on property that's coming on 245 00:11:38,440 --> 00:11:39,800 Speaker 2: now verse last year. 246 00:11:40,440 --> 00:11:42,960 Speaker 1: So and why they, and do you ever get to 247 00:11:42,960 --> 00:11:46,840 Speaker 1: see why do your agencies? Do you record or ask 248 00:11:46,960 --> 00:11:50,520 Speaker 1: question or is it an anecdotal or even anecdotal to 249 00:11:50,559 --> 00:11:53,480 Speaker 1: answer the question? Do they? Is the reason they're selling 250 00:11:53,520 --> 00:11:56,720 Speaker 1: is because they're they want to get rid of their mortgage, 251 00:11:56,760 --> 00:11:58,600 Speaker 1: or they're downsizing, or they're trying uph sized. 252 00:11:58,800 --> 00:12:01,679 Speaker 2: What's the general It depends what market you're in. It's 253 00:12:01,679 --> 00:12:05,440 Speaker 2: a good question. We don't always get the personal reason. 254 00:12:06,280 --> 00:12:09,000 Speaker 2: I think a lot of it is the people have 255 00:12:09,040 --> 00:12:11,599 Speaker 2: paid quite a big price for some of these properties 256 00:12:12,120 --> 00:12:14,120 Speaker 2: in the last sort of three to five years, and 257 00:12:14,240 --> 00:12:17,800 Speaker 2: maybe they don't like their disposable income has been eroded, 258 00:12:18,160 --> 00:12:20,680 Speaker 2: so they're saying, look, before we have to be forced 259 00:12:20,679 --> 00:12:23,480 Speaker 2: to make a decision, we might just offload now while 260 00:12:23,480 --> 00:12:26,720 Speaker 2: the market's still pretty stable and the interest rates are 261 00:12:27,559 --> 00:12:30,560 Speaker 2: stable at least hasn't been to another couple of rises yet, 262 00:12:31,440 --> 00:12:33,360 Speaker 2: and hopefully people are thinking that might stay all the 263 00:12:33,400 --> 00:12:36,920 Speaker 2: way through to Christmas. So I forget a stable environment. 264 00:12:38,000 --> 00:12:39,760 Speaker 2: I think people are looking to offload debt. 265 00:12:39,800 --> 00:12:42,120 Speaker 1: One. I'm hearing a lot. 266 00:12:41,960 --> 00:12:46,400 Speaker 2: Of people's disposable income they had a year ago is less, 267 00:12:46,920 --> 00:12:49,720 Speaker 2: so they don't necessarily want to do it, like maybe 268 00:12:49,760 --> 00:12:53,400 Speaker 2: our forefathers and parents did it where they went out 269 00:12:53,440 --> 00:12:56,920 Speaker 2: and had picnics on Saturday and eight sayos and things 270 00:12:57,320 --> 00:12:59,719 Speaker 2: to graft to pay them. That people don't want it 271 00:12:59,720 --> 00:13:00,840 Speaker 2: to have lifestyle. 272 00:13:00,880 --> 00:13:03,559 Speaker 1: They don't to adjust their lifestyle down exactly right. 273 00:13:03,600 --> 00:13:06,080 Speaker 2: So they were used to that travel and going to 274 00:13:06,120 --> 00:13:08,000 Speaker 2: Europe and going away and all this stuff. That's all 275 00:13:08,040 --> 00:13:10,480 Speaker 2: been creamped now for a lot of people. And they're 276 00:13:10,480 --> 00:13:13,839 Speaker 2: in that sort of mortgage you know, sort of culd 277 00:13:13,840 --> 00:13:16,400 Speaker 2: the sack, I guess, and they're sort of looking. We're 278 00:13:16,400 --> 00:13:18,480 Speaker 2: in this holding pattern of bit as to what's happening. 279 00:13:18,480 --> 00:13:20,840 Speaker 2: Everyone wants to know what's happening. No one can. No 280 00:13:20,840 --> 00:13:23,040 Speaker 2: one's got a crystal ball, yes, that's for sure. 281 00:13:23,280 --> 00:13:28,959 Speaker 1: And is that a sort of thesis across all your 282 00:13:29,000 --> 00:13:32,200 Speaker 1: franchise or some areas doing a bit tougher lake as 283 00:13:32,200 --> 00:13:33,720 Speaker 1: some well parts of Melbourne doing it. 284 00:13:33,960 --> 00:13:37,679 Speaker 2: Really good question, and we're very strong in Perth. I've 285 00:13:37,679 --> 00:13:39,720 Speaker 2: got two hundred agents in Perth and I don't know 286 00:13:39,760 --> 00:13:42,840 Speaker 2: you've been speaking about that on some of your previous interviews. 287 00:13:43,040 --> 00:13:45,199 Speaker 2: Perth has a ten days on market. At the moment 288 00:13:45,360 --> 00:13:47,480 Speaker 2: we put a property on the market, it's sold within 289 00:13:47,559 --> 00:13:50,240 Speaker 2: ten days. Really there's huge demand over. 290 00:13:50,080 --> 00:13:52,040 Speaker 1: There and is that because people are moving to Perth. 291 00:13:52,160 --> 00:13:55,480 Speaker 2: That's right, and also too they remember they had the 292 00:13:55,559 --> 00:13:58,640 Speaker 2: border closed for a year further and COVID that's still 293 00:13:58,679 --> 00:14:01,679 Speaker 2: they're still getting the benefits of that. There hasn't been 294 00:14:01,760 --> 00:14:04,760 Speaker 2: much building. All the buildings come to a grinding shortage, 295 00:14:05,080 --> 00:14:08,680 Speaker 2: massive shortage ten days on market in. Interest rates haven't 296 00:14:08,720 --> 00:14:11,480 Speaker 2: affected that. You might have noticed. Did you see the 297 00:14:11,559 --> 00:14:16,400 Speaker 2: latest report Melbour purse just nudge Melbourne out of average. Yep, 298 00:14:17,120 --> 00:14:19,840 Speaker 2: So that's that's one thing. We're noticing that in our 299 00:14:19,840 --> 00:14:22,240 Speaker 2: business or two hundred agents out there every weekend, they're 300 00:14:22,280 --> 00:14:25,119 Speaker 2: selling things in ten days. They can't get enough properties. 301 00:14:25,440 --> 00:14:28,640 Speaker 2: The reverse of probably here we've got we are getting 302 00:14:28,640 --> 00:14:30,640 Speaker 2: the properties, we just don't have the buyers as much. 303 00:14:31,160 --> 00:14:34,040 Speaker 2: This is cooled off Melbourne. You see what happened. You 304 00:14:34,040 --> 00:14:35,880 Speaker 2: can see it by now. I think Melbourne's going to 305 00:14:35,920 --> 00:14:38,520 Speaker 2: be huge value for people if you've got cash and 306 00:14:38,560 --> 00:14:41,880 Speaker 2: you're putting it in. Everyone's running away from Melbourne. I 307 00:14:41,920 --> 00:14:44,280 Speaker 2: mean my strategy and business. When people are running away, 308 00:14:44,320 --> 00:14:48,760 Speaker 2: run in because there's like necessarily that's going to come 309 00:14:48,800 --> 00:14:51,880 Speaker 2: back in time. But they've got this issue with the 310 00:14:51,960 --> 00:14:54,920 Speaker 2: land tanks and investors. But Melbourne's going to come back. 311 00:14:55,160 --> 00:14:55,680 Speaker 1: We know the. 312 00:14:55,640 --> 00:14:59,120 Speaker 2: Culture there, you know, it's the second largest city. It's 313 00:14:59,160 --> 00:15:02,840 Speaker 2: going to have the uptake eventually. What's getting the trend 314 00:15:02,920 --> 00:15:05,200 Speaker 2: with us at the moment which I haven't seen this 315 00:15:05,280 --> 00:15:09,680 Speaker 2: for thirty years. Gold Coast has become now an actual destination. 316 00:15:09,720 --> 00:15:13,240 Speaker 2: It's mad not a tourist destination and bad times. Gold 317 00:15:13,240 --> 00:15:15,440 Speaker 2: Coast is always a drama. It was a drama this time, 318 00:15:15,760 --> 00:15:17,080 Speaker 2: this time of the economic cycle. 319 00:15:17,360 --> 00:15:21,200 Speaker 1: People would be putting probabies on the market Leffrons and 320 00:15:21,240 --> 00:15:22,920 Speaker 1: the Gold Coast and they'd be running for the hills. 321 00:15:23,000 --> 00:15:26,160 Speaker 2: It has the massive highst and has massive loads right now. 322 00:15:26,320 --> 00:15:28,360 Speaker 2: My age, I've got eight agents on the ground there 323 00:15:28,360 --> 00:15:30,760 Speaker 2: and they're all telling me buyers are coming from Melbourne 324 00:15:30,760 --> 00:15:32,600 Speaker 2: and Sydney and they're not going back. 325 00:15:33,160 --> 00:15:34,520 Speaker 1: Yeah, so we haven't seen it. 326 00:15:34,560 --> 00:15:37,320 Speaker 2: That's not just coming up having an ice cream, finding 327 00:15:37,360 --> 00:15:39,560 Speaker 2: a nice place, buying it for a holiday, then game 328 00:15:39,640 --> 00:15:41,600 Speaker 2: back what they've been doing for the last thirty years. 329 00:15:41,840 --> 00:15:45,320 Speaker 2: It's now a destination. So that's for forcing a lot 330 00:15:45,320 --> 00:15:49,440 Speaker 2: of people to uplift the all the shops and there's 331 00:15:49,440 --> 00:15:53,000 Speaker 2: a whole lot of infrastructure being built there. Brisbane's brilliant 332 00:15:53,040 --> 00:15:56,360 Speaker 2: at the moment for us everything the clearance rates are 333 00:15:56,400 --> 00:15:59,840 Speaker 2: holding up very strong there, even Sunshine Coast who got 334 00:15:59,840 --> 00:16:04,320 Speaker 2: agents right up there, all getting benefits of the southern migration. 335 00:16:05,240 --> 00:16:08,120 Speaker 2: So there are some markets that are probably defying a bit. 336 00:16:08,600 --> 00:16:10,720 Speaker 2: Sydney Melbourne probably copying. 337 00:16:10,440 --> 00:16:12,280 Speaker 1: It a bit at the moment. It is probably holding 338 00:16:12,360 --> 00:16:15,479 Speaker 1: its own absolutely, but it's not doing brilliantly. 339 00:16:15,600 --> 00:16:20,120 Speaker 2: It's not doing brilliantly. But Melbourne's struggling exactly, Melbourne struggling. 340 00:16:20,760 --> 00:16:23,640 Speaker 2: Tasmania who look at some very small market, but it's 341 00:16:23,720 --> 00:16:26,720 Speaker 2: it's sort of getting the back end backwash of Melbourne 342 00:16:26,760 --> 00:16:27,080 Speaker 2: as well. 343 00:16:27,400 --> 00:16:29,520 Speaker 1: Everyone has lost a bit of its COVID luster too, 344 00:16:29,680 --> 00:16:32,600 Speaker 1: like you know, oh should a bit again. Tasmania is 345 00:16:32,680 --> 00:16:34,400 Speaker 1: nice and clean and I can get away from COVID. 346 00:16:34,800 --> 00:16:37,240 Speaker 1: And people did some ridiculous I mean, I have heard 347 00:16:37,280 --> 00:16:40,360 Speaker 1: of some crazy buying down there from people in all 348 00:16:40,360 --> 00:16:42,000 Speaker 1: the states. Unbelievable. Mark. 349 00:16:42,040 --> 00:16:45,200 Speaker 2: There's another phenomena wanted to share to people listening they 350 00:16:45,240 --> 00:16:47,360 Speaker 2: may not have looked at, which I've only con sayly 351 00:16:47,360 --> 00:16:49,000 Speaker 2: because of my length of time, I've been able to 352 00:16:49,040 --> 00:16:53,160 Speaker 2: say I've never seen the interest rates so low and 353 00:16:53,200 --> 00:16:56,680 Speaker 2: the rental market so tight. What used to happen. We 354 00:16:56,800 --> 00:16:58,840 Speaker 2: used to as soon as we'd see the rental as 355 00:16:58,840 --> 00:17:00,880 Speaker 2: soon as we'd see the interest rates go down, all 356 00:17:00,880 --> 00:17:03,200 Speaker 2: the first home buyers are charging out of their rendue 357 00:17:03,240 --> 00:17:08,000 Speaker 2: properties deposit rate, So you know the interest rates previously 358 00:17:08,080 --> 00:17:10,440 Speaker 2: when they were, when they were coming down before, or 359 00:17:10,480 --> 00:17:13,159 Speaker 2: they are at this sort of level. We'd never see 360 00:17:13,400 --> 00:17:16,040 Speaker 2: interest rates at this level. And then also the rental 361 00:17:16,080 --> 00:17:19,240 Speaker 2: markets so tight, we'd see people like first home buyers 362 00:17:19,240 --> 00:17:21,960 Speaker 2: have gone out of the market, which are usually the tenants. 363 00:17:22,720 --> 00:17:24,879 Speaker 2: So now we've got a situation. We've got low interest 364 00:17:24,960 --> 00:17:29,040 Speaker 2: rates and we've got no vacancy. I've never seen that 365 00:17:29,080 --> 00:17:31,880 Speaker 2: since I've been in real estate. Usually low interest rates, 366 00:17:31,920 --> 00:17:34,680 Speaker 2: first time buyers charge out, they all the rental properties 367 00:17:34,840 --> 00:17:38,520 Speaker 2: come empty, and then you have a high vacancy rate. 368 00:17:38,680 --> 00:17:43,159 Speaker 2: Right now, we've got low interest rates and very relatively speaking, 369 00:17:43,160 --> 00:17:47,320 Speaker 2: low relatively speaking, what we've had. I feel if you're 370 00:17:47,400 --> 00:17:50,040 Speaker 2: charted over the last year, let's say twenty five years, 371 00:17:50,040 --> 00:17:50,360 Speaker 2: that I. 372 00:17:50,280 --> 00:17:52,600 Speaker 1: Can remember them, so they're not they're not low relative 373 00:17:52,600 --> 00:17:54,440 Speaker 1: to what they were during COVID because they were two 374 00:17:54,480 --> 00:17:59,359 Speaker 1: percent relatively speaking, low, their average, their average, their long 375 00:17:59,440 --> 00:18:02,359 Speaker 1: term average, which and the reason why people switch from 376 00:18:02,560 --> 00:18:04,560 Speaker 1: renting is because it was actually probably too by to 377 00:18:04,560 --> 00:18:07,720 Speaker 1: borrow and buy. Then it was to recorrect. 378 00:18:08,280 --> 00:18:11,439 Speaker 2: So when does this we talk about the rental crisis, 379 00:18:11,800 --> 00:18:15,720 Speaker 2: how they it's a first home buyers potentially that would 380 00:18:15,720 --> 00:18:18,520 Speaker 2: move from being a tenant to they've got to get 381 00:18:18,520 --> 00:18:22,680 Speaker 2: the first home buyers moving again. And obviously property there's 382 00:18:22,720 --> 00:18:25,800 Speaker 2: not enough property being built as well now because the 383 00:18:26,680 --> 00:18:29,919 Speaker 2: building industry is going through being copying it left right 384 00:18:29,960 --> 00:18:33,760 Speaker 2: and seeing those builders not building, not developers not taking risks, 385 00:18:34,320 --> 00:18:36,560 Speaker 2: builders not sure if they're going to be in business 386 00:18:36,640 --> 00:18:39,720 Speaker 2: in twelve months, can't get the staff cost of all 387 00:18:39,720 --> 00:18:42,160 Speaker 2: the materials going through the roof. So we just don't 388 00:18:42,200 --> 00:18:45,840 Speaker 2: have enough property out there for these people to get 389 00:18:46,240 --> 00:18:47,680 Speaker 2: involved in the buy first home. 390 00:18:47,880 --> 00:18:55,480 Speaker 1: So Matam, if you were you know, like they two questions. 391 00:18:55,760 --> 00:18:58,280 Speaker 1: First one, if you're a young person, you couldn't afford 392 00:18:58,320 --> 00:19:00,720 Speaker 1: to buy in Sydney because as we power and South fragments, 393 00:19:00,720 --> 00:19:03,320 Speaker 1: so you kin'd of live by anywhere in Sitny Okay 394 00:19:05,600 --> 00:19:07,840 Speaker 1: and you won't. But but you had like maybe one 395 00:19:07,880 --> 00:19:10,440 Speaker 1: hundred grand deposit and you could borrow five hundred grand, 396 00:19:11,440 --> 00:19:16,840 Speaker 1: where would you encourage that individual to go and invest 397 00:19:16,880 --> 00:19:20,280 Speaker 1: their money in property. I'm talking about invest I definitely 398 00:19:20,640 --> 00:19:23,840 Speaker 1: definitely think you've got to be looking at Queensland and 399 00:19:23,840 --> 00:19:26,200 Speaker 1: would you would you direct them in would you say, listen, 400 00:19:26,600 --> 00:19:29,200 Speaker 1: go and buy a house in Morton Bay or something 401 00:19:29,240 --> 00:19:30,760 Speaker 1: like that. Words you can buy a house, et cetera 402 00:19:30,800 --> 00:19:32,680 Speaker 1: on a grand or would you say buy a unit 403 00:19:32,680 --> 00:19:33,320 Speaker 1: in the Gold Coast. 404 00:19:33,359 --> 00:19:35,639 Speaker 2: I think the outskirts of the Gold Coast are great value, 405 00:19:35,720 --> 00:19:38,800 Speaker 2: you know, like Ellen fail around that part of like 406 00:19:38,840 --> 00:19:40,680 Speaker 2: on the way to Brisbane, on the way to Brisbane, 407 00:19:41,000 --> 00:19:43,320 Speaker 2: that's great value because it's still right near the coast. 408 00:19:43,720 --> 00:19:46,280 Speaker 2: The Brisbane with the Olympics has got to be that 409 00:19:46,359 --> 00:19:48,320 Speaker 2: has to have Yeah, and that's got to be an 410 00:19:48,320 --> 00:19:51,960 Speaker 2: elents so far away, but it'll come around like that. Yeah, 411 00:19:52,040 --> 00:19:54,720 Speaker 2: it has to be a value. Like the rental market 412 00:19:54,760 --> 00:19:57,679 Speaker 2: in Brisbane right now is very strong. It's only going 413 00:19:57,760 --> 00:20:00,879 Speaker 2: to get stronger. And think about it. The again, not 414 00:20:00,960 --> 00:20:02,879 Speaker 2: a lot of building going on there as well as 415 00:20:02,960 --> 00:20:05,960 Speaker 2: much as nowhere near what there was even the Gold Coast. 416 00:20:06,000 --> 00:20:07,919 Speaker 2: So I looked at the there the other day. The 417 00:20:08,000 --> 00:20:12,440 Speaker 2: cranes in the skies have all disappeared. You know, there's 418 00:20:12,440 --> 00:20:15,239 Speaker 2: still not enough nowhere near, so they're not replenishing this. 419 00:20:15,600 --> 00:20:19,159 Speaker 2: And because it's becoming a destination now Brisbane as well, 420 00:20:19,720 --> 00:20:22,680 Speaker 2: it's intriguing what's happening. I'll be putting my money over there. 421 00:20:22,680 --> 00:20:26,040 Speaker 2: I mean, PERSONO of you. But I think if they've 422 00:20:26,040 --> 00:20:30,960 Speaker 2: got East Coast, you know people predominant on the East Coast, 423 00:20:31,000 --> 00:20:33,120 Speaker 2: it's probably just a bit too far away. But if 424 00:20:33,119 --> 00:20:36,520 Speaker 2: you had some extra cash, definitely Perth and so rental 425 00:20:36,560 --> 00:20:38,919 Speaker 2: markets really strong, strong, very strong. 426 00:20:39,000 --> 00:20:44,879 Speaker 1: And if you were then talking to say an older 427 00:20:44,880 --> 00:20:47,200 Speaker 1: person who's maybe just retired and they've got like a 428 00:20:47,280 --> 00:20:51,720 Speaker 1: couple of million there, super you answer the younger person question, 429 00:20:52,240 --> 00:20:54,760 Speaker 1: would you say to that, let's say they can afford 430 00:20:54,800 --> 00:20:59,080 Speaker 1: to spend two or three million dollars would be would 431 00:20:59,119 --> 00:21:01,880 Speaker 1: you be suggesting they go count of cyclical and look 432 00:21:01,920 --> 00:21:03,960 Speaker 1: at some parts of Melbourne? Would you say, again, go 433 00:21:04,040 --> 00:21:04,479 Speaker 1: to Brisbane. 434 00:21:04,560 --> 00:21:07,520 Speaker 2: Absolutely, I'd definitely be going to If I was that 435 00:21:07,800 --> 00:21:11,040 Speaker 2: older generation of that sort of established money, I'd be 436 00:21:11,080 --> 00:21:14,119 Speaker 2: definitely looking at it. I think in Sydney too. In 437 00:21:14,160 --> 00:21:18,520 Speaker 2: the next I reckon between now and sort of March 438 00:21:18,680 --> 00:21:21,159 Speaker 2: or Easter, let's say, between now and East I think 439 00:21:21,240 --> 00:21:23,760 Speaker 2: the market's going to be some good buying in Sydney 440 00:21:23,800 --> 00:21:25,680 Speaker 2: as well as well as Melbourne. 441 00:21:26,000 --> 00:21:31,160 Speaker 1: You reckon, Yeah, So therefore perhaps would you would would 442 00:21:31,200 --> 00:21:35,520 Speaker 1: you then say, well, ditch Melbourne because Melbourne's got that 443 00:21:35,520 --> 00:21:39,760 Speaker 1: five percent Sorry, it's got that Lanax work starts at 444 00:21:39,760 --> 00:21:44,480 Speaker 1: fifty grand, which is crazy. Would you probably say to 445 00:21:44,480 --> 00:21:47,800 Speaker 1: them maybe on that basis, invested money in Sydney and 446 00:21:48,240 --> 00:21:49,480 Speaker 1: would just say house or unit? 447 00:21:49,840 --> 00:21:52,879 Speaker 2: I think, Look, apartments are all if you're going to 448 00:21:52,880 --> 00:21:54,680 Speaker 2: rent them. If you could get a block of four 449 00:21:54,840 --> 00:21:57,320 Speaker 2: or something like that, about by a whole block, yeah, 450 00:21:57,359 --> 00:21:59,119 Speaker 2: like if it depends how much and where you're going 451 00:21:59,160 --> 00:22:01,879 Speaker 2: to buy what part. If you could get two million, 452 00:22:01,920 --> 00:22:05,040 Speaker 2: I'd be looking at probably an apartment of some nature. Yeah, 453 00:22:05,119 --> 00:22:07,040 Speaker 2: it's always going to be a bit way and go. 454 00:22:07,000 --> 00:22:09,600 Speaker 1: Out near the you know, we're just just it's funny 455 00:22:09,640 --> 00:22:11,200 Speaker 1: because I had someone ask me this question the other day. 456 00:22:12,119 --> 00:22:16,080 Speaker 1: Would just say, what's a really good area that's can 457 00:22:16,119 --> 00:22:18,840 Speaker 1: you You might not about to wealth here, but is 458 00:22:18,840 --> 00:22:22,080 Speaker 1: is there an area that's performing really well around for example, 459 00:22:24,080 --> 00:22:26,920 Speaker 1: the ac or Stadium around that sort of Homebush area. 460 00:22:27,359 --> 00:22:32,000 Speaker 2: Look, there's an around that market anywhere around there, Like 461 00:22:32,240 --> 00:22:35,399 Speaker 2: as soon as you go north to west of Stratfield. 462 00:22:35,440 --> 00:22:37,960 Speaker 2: I guess right out to that, there's a plenty of 463 00:22:38,000 --> 00:22:40,879 Speaker 2: opportunity out there. There's a lot of apartments that the 464 00:22:40,960 --> 00:22:45,119 Speaker 2: rental markets strong. The transport infrastructure is brilliant, So. 465 00:22:45,080 --> 00:22:47,960 Speaker 1: We assume they're going to have a direct train from 466 00:22:48,000 --> 00:22:52,520 Speaker 1: Martin from Martin Place or from uh uh we just 467 00:22:52,560 --> 00:22:56,320 Speaker 1: cross over from my office there in Chiffley to straight 468 00:22:56,359 --> 00:22:57,600 Speaker 1: to the straight to the stadium. 469 00:22:57,640 --> 00:23:00,840 Speaker 2: Well, it's you know what we're around that you've been 470 00:23:00,840 --> 00:23:03,679 Speaker 2: around that paramouta square, what they've been out there, and 471 00:23:03,720 --> 00:23:05,919 Speaker 2: there's where all the money is coming. So anywhere I 472 00:23:05,920 --> 00:23:08,520 Speaker 2: guess within a one to three k radius of there, 473 00:23:09,000 --> 00:23:09,840 Speaker 2: you can't go wrong. 474 00:23:09,920 --> 00:23:10,399 Speaker 1: Mark. You know. 475 00:23:10,840 --> 00:23:15,439 Speaker 2: The other market that's defied, the completely defied all market 476 00:23:15,480 --> 00:23:17,760 Speaker 2: conditions right now is the inner west of Sydney. 477 00:23:18,600 --> 00:23:21,000 Speaker 1: What is that camberdown? What are we doing? 478 00:23:21,280 --> 00:23:24,600 Speaker 2: So let's say new Town stand more Pedsham Saint Peter's. 479 00:23:24,640 --> 00:23:27,240 Speaker 2: Alexandria is probably one of the hottest markets in the city. 480 00:23:27,280 --> 00:23:29,359 Speaker 2: I've got one of our top agents in that market. 481 00:23:29,800 --> 00:23:32,600 Speaker 1: There are most departments. So are they terraces terraces? 482 00:23:32,640 --> 00:23:35,000 Speaker 2: Yeah, in Alexandria, Yeah, one and a half to sort 483 00:23:35,000 --> 00:23:38,080 Speaker 2: of one point seven good value Classter City and and Dale, 484 00:23:38,240 --> 00:23:42,280 Speaker 2: those type of markets, they have continued to defy the 485 00:23:42,880 --> 00:23:46,119 Speaker 2: even parts of get out to Concord even that. But 486 00:23:46,160 --> 00:23:48,200 Speaker 2: I'm saying that in a ring, you know, like A 487 00:23:48,400 --> 00:23:52,040 Speaker 2: and Dale and peters stand More, Petersham New Town. Every 488 00:23:52,080 --> 00:23:55,680 Speaker 2: time we get a piece of property there, glebes another 489 00:23:55,680 --> 00:23:59,560 Speaker 2: one Alexandra. I'm singling that out because it's just seems 490 00:23:59,600 --> 00:24:00,520 Speaker 2: to be hot there. 491 00:24:00,520 --> 00:24:02,400 Speaker 1: Can you get can you get houses still they can? Yeah? 492 00:24:02,440 --> 00:24:06,359 Speaker 2: Yeah, terraces like yeah attached and their rental market there. 493 00:24:07,440 --> 00:24:10,879 Speaker 2: If you were to talk to our rental team about 494 00:24:10,880 --> 00:24:13,639 Speaker 2: what's hot, they'll say, get me something in Alexandra. I 495 00:24:13,640 --> 00:24:16,000 Speaker 2: can rend it like that. And it just seems to be. 496 00:24:16,320 --> 00:24:18,920 Speaker 2: It's just right next to the city. It's it's right 497 00:24:18,960 --> 00:24:22,360 Speaker 2: next to the airport. It's got its trendy. It's now. 498 00:24:22,359 --> 00:24:25,000 Speaker 2: When I started thirty years ago, and real estate factories 499 00:24:27,160 --> 00:24:30,280 Speaker 2: gleeb Alexandria. I remember the agents used to say. When 500 00:24:30,320 --> 00:24:32,520 Speaker 2: I was the older agents, when I was a junior, 501 00:24:32,560 --> 00:24:34,879 Speaker 2: Burgher would say, oh you can take that, Maddie. I 502 00:24:34,880 --> 00:24:36,119 Speaker 2: don't want to go to Alexandria. 503 00:24:36,600 --> 00:24:40,160 Speaker 1: Yeah, yeah, well it was. It was. It was because 504 00:24:40,160 --> 00:24:41,800 Speaker 1: a lot of factories and stuff. Yeah, that's right. It's 505 00:24:41,840 --> 00:24:45,400 Speaker 1: all been converted out in new Town's Red Hot. Nearly 506 00:24:45,440 --> 00:24:47,120 Speaker 1: a little bit expensive though, I think. 507 00:24:47,400 --> 00:24:50,879 Speaker 2: It is, but it's just fired the like it doesn't 508 00:24:50,920 --> 00:24:55,440 Speaker 2: seem to be. It's very resilient to market to economic conditions, 509 00:24:55,880 --> 00:25:00,000 Speaker 2: where probably as more resilience to some of the beachside harvest. 510 00:25:00,040 --> 00:25:03,280 Speaker 1: Yeah. Yeah, it's actually because it's affordable. It is. 511 00:25:03,359 --> 00:25:06,280 Speaker 2: Well we say it's affordable, but you know, you get 512 00:25:06,280 --> 00:25:08,639 Speaker 2: buyers going then they can't believe the prices that are 513 00:25:08,680 --> 00:25:11,080 Speaker 2: getting now. So it's just you know, like what you're 514 00:25:11,080 --> 00:25:13,400 Speaker 2: getting for what you're paying. You know, would you say 515 00:25:13,400 --> 00:25:15,240 Speaker 2: you get good value there because you can buy a 516 00:25:15,320 --> 00:25:17,400 Speaker 2: house there, you know, like a terrorist house. 517 00:25:17,640 --> 00:25:20,480 Speaker 1: Look, you do get good value there. 518 00:25:20,520 --> 00:25:22,920 Speaker 2: But we've just because you know, we've seen the meteoric 519 00:25:23,080 --> 00:25:25,960 Speaker 2: rise of the prices there and the rental market. A 520 00:25:26,000 --> 00:25:29,679 Speaker 2: rental market for a good property is on par with 521 00:25:29,840 --> 00:25:34,520 Speaker 2: say a beachside Kuji Bronti Tamara. For a one bedroom 522 00:25:34,560 --> 00:25:37,359 Speaker 2: apartment or a two bedroom apartment, you're going to be 523 00:25:37,440 --> 00:25:40,159 Speaker 2: nearly squaring off against a beach side in terms of 524 00:25:40,240 --> 00:25:44,640 Speaker 2: demand of price, price, the rental yield relative to the 525 00:25:44,760 --> 00:25:47,400 Speaker 2: corest But the actual amount of money you're paying per 526 00:25:47,480 --> 00:25:50,119 Speaker 2: week is very similar yet insane. 527 00:25:50,400 --> 00:25:51,600 Speaker 1: What about terrorist houses? 528 00:25:52,040 --> 00:25:55,520 Speaker 2: Terrorist houses are not as popular as to rent because 529 00:25:55,600 --> 00:25:59,160 Speaker 2: different market looks. But the apartment market is on par 530 00:25:59,280 --> 00:26:01,200 Speaker 2: with beach side. Wow, phenomenal. 531 00:26:02,240 --> 00:26:08,080 Speaker 1: So you're doing about the Meritans exactly a merit or 532 00:26:09,160 --> 00:26:12,320 Speaker 1: you know around that great Green Square area and Infinity 533 00:26:13,240 --> 00:26:15,320 Speaker 1: you'll be paying eight hundred bucks for a one bedroom 534 00:26:15,400 --> 00:26:19,960 Speaker 1: unit there, one bedroom yep, serious per week. You had 535 00:26:20,000 --> 00:26:21,160 Speaker 1: never thought that was possible. 536 00:26:21,320 --> 00:26:24,560 Speaker 2: And what the terrorists are getting like, you know, they're 537 00:26:24,560 --> 00:26:28,960 Speaker 2: getting twelve buying it for you buy one there for 538 00:26:29,040 --> 00:26:32,640 Speaker 2: about probably in one of those buildings about seven fifty. 539 00:26:32,600 --> 00:26:33,960 Speaker 1: So it's about a five percent year. 540 00:26:36,000 --> 00:26:39,200 Speaker 2: Compared to similar thing the beach side, you'd be paying 541 00:26:39,200 --> 00:26:41,760 Speaker 2: probably up closer to a million bucks and you're still 542 00:26:41,800 --> 00:26:45,639 Speaker 2: only get on exactly like a percent less less and 543 00:26:45,760 --> 00:26:48,000 Speaker 2: red hot to rent it mark red hot. 544 00:26:48,080 --> 00:26:51,600 Speaker 1: So the year is better and is a capital sitting 545 00:26:51,600 --> 00:26:52,280 Speaker 1: and that stuff too. 546 00:26:53,160 --> 00:26:55,480 Speaker 2: Yeah, will there will be the overheads a probably a 547 00:26:55,680 --> 00:26:58,280 Speaker 2: bit higher there because the bigger buildings and things, and 548 00:26:58,320 --> 00:27:01,240 Speaker 2: they're not you know but giving a tools and gyms exactly, 549 00:27:01,320 --> 00:27:04,760 Speaker 2: so the overheads are a bit more, you know, a 550 00:27:04,800 --> 00:27:08,720 Speaker 2: bit more tougher to work with, but that you for 551 00:27:08,840 --> 00:27:11,400 Speaker 2: a turn and not if you wanted to have an investment. 552 00:27:11,400 --> 00:27:14,760 Speaker 2: It's always changing in there and done, locked and loaded, 553 00:27:14,840 --> 00:27:18,040 Speaker 2: put it away, forget it. Yeah it'll go up pro rata. 554 00:27:18,240 --> 00:27:21,359 Speaker 1: Yeah yeah, somebody, but you'll you'll someone to paid off 555 00:27:21,520 --> 00:27:23,960 Speaker 1: because you're only putting ten percent and you're borrowing ninety 556 00:27:23,960 --> 00:27:24,280 Speaker 1: from that. 557 00:27:25,880 --> 00:27:28,600 Speaker 2: Pays a ninety In some of the beachside suburbs I worked. 558 00:27:28,720 --> 00:27:30,960 Speaker 2: I'm born and bred in Couldgie, so I've walked worked 559 00:27:30,960 --> 00:27:33,600 Speaker 2: around that market my whole life. It's seasonal. It's not 560 00:27:33,640 --> 00:27:36,560 Speaker 2: as great in come July. The tenants are moving out 561 00:27:36,560 --> 00:27:38,439 Speaker 2: away from there a lot of the time, and then 562 00:27:39,160 --> 00:27:41,960 Speaker 2: come back around sort of September and it gets warm again. 563 00:27:42,840 --> 00:27:45,040 Speaker 2: But that market has a very consistent I was saying 564 00:27:45,119 --> 00:27:47,240 Speaker 2: that Inner West has been very consistent. 565 00:27:47,560 --> 00:27:50,679 Speaker 1: And is there equivalent to that in Brisbane for example, this. 566 00:27:50,640 --> 00:27:54,879 Speaker 2: New farm area, yeah one that Yeah, that's just a 567 00:27:54,920 --> 00:27:58,440 Speaker 2: solid as a rock. I've noticed our agents in that 568 00:27:58,480 --> 00:28:01,560 Speaker 2: part of town. They've just got solid, solid business. The 569 00:28:01,600 --> 00:28:05,400 Speaker 2: properties list, they sell, they rent everything, movers. The other 570 00:28:05,440 --> 00:28:07,800 Speaker 2: part that's read HET's burly around the Gold Coast. I 571 00:28:07,840 --> 00:28:09,520 Speaker 2: don't know if you've isolated that one. 572 00:28:09,560 --> 00:28:12,440 Speaker 1: Have you. I put a ring around that Burly again. 573 00:28:12,560 --> 00:28:15,320 Speaker 2: I mean it's moved right away from not so much 574 00:28:15,520 --> 00:28:18,280 Speaker 2: right away, but that it's sort of just crept up 575 00:28:18,480 --> 00:28:19,800 Speaker 2: that Burly market and it's. 576 00:28:19,720 --> 00:28:22,640 Speaker 1: Not as high. Rose is not as high. No, it's 577 00:28:22,680 --> 00:28:23,960 Speaker 1: sort of a bit low. And they've got all the 578 00:28:23,960 --> 00:28:26,520 Speaker 1: beautiful pine trees and it's sort of nicer. 579 00:28:26,800 --> 00:28:28,960 Speaker 2: It's a real estate market that popped up out of 580 00:28:29,000 --> 00:28:31,639 Speaker 2: the blue that I don't think anyone really picked it 581 00:28:31,680 --> 00:28:33,600 Speaker 2: as a just sort of because it was all up 582 00:28:33,600 --> 00:28:36,639 Speaker 2: around Sorrento and the Gold Coast back end that part there, 583 00:28:36,920 --> 00:28:38,960 Speaker 2: and it's moved right down to between. 584 00:28:39,480 --> 00:28:41,400 Speaker 1: Well, the good thing about there is at Burley is 585 00:28:41,400 --> 00:28:43,720 Speaker 1: closer to the airport. You don't get caught up in 586 00:28:43,760 --> 00:28:46,280 Speaker 1: all that bloody traffic and sot of that. Like you know, 587 00:28:46,600 --> 00:28:48,360 Speaker 1: there's a lot of people got to go to the airport. 588 00:28:48,160 --> 00:28:52,440 Speaker 2: And they built some really nice restaurants and clubs and 589 00:28:52,960 --> 00:28:53,680 Speaker 2: night clubs and things. 590 00:28:53,800 --> 00:28:55,960 Speaker 1: It's quite nice there too. Yeah, the beach is nice there. 591 00:28:56,000 --> 00:28:58,240 Speaker 1: That's very interesting and final question for you, Matt, like 592 00:28:58,920 --> 00:29:01,600 Speaker 1: where wouldn't you invest? Where would you apart from Melbourne 593 00:29:02,240 --> 00:29:04,280 Speaker 1: or maybe you would investment, but yeah, what sort of 594 00:29:04,320 --> 00:29:08,200 Speaker 1: things people should not not be doing? So, you know, 595 00:29:08,240 --> 00:29:10,320 Speaker 1: because where there's an alternative. 596 00:29:10,000 --> 00:29:14,120 Speaker 2: I think one thing where there's too many properties doesn't 597 00:29:14,160 --> 00:29:17,560 Speaker 2: matter that this comment applies to anywhere around Australia. If 598 00:29:17,560 --> 00:29:19,920 Speaker 2: you're in a building where there's way too many similar 599 00:29:19,960 --> 00:29:23,160 Speaker 2: looking properties, they tend not to grow in value too much. 600 00:29:23,720 --> 00:29:26,240 Speaker 2: So I've got, you know, like two hundred apartments and 601 00:29:26,280 --> 00:29:30,240 Speaker 2: they're all the similar, look, similar feel. They tend to struggle, 602 00:29:30,600 --> 00:29:33,320 Speaker 2: So it doesn't matter where what part of Australia you're in. 603 00:29:33,760 --> 00:29:36,600 Speaker 2: That's a rule for my VIP clients have always said 604 00:29:36,640 --> 00:29:42,800 Speaker 2: them stay away from. I don't mind buildings that are large, 605 00:29:42,880 --> 00:29:45,560 Speaker 2: but they're not building anymore, and there's not another one 606 00:29:45,600 --> 00:29:47,320 Speaker 2: of them near it. There's a whole lot of high 607 00:29:47,400 --> 00:29:49,680 Speaker 2: rises in a row next to each other and they're 608 00:29:49,720 --> 00:29:53,080 Speaker 2: all similar apartments. Those ones tend to not really grow 609 00:29:53,120 --> 00:29:55,120 Speaker 2: in capital gain much market all. 610 00:29:55,280 --> 00:29:57,400 Speaker 1: They might have big demand for rental, but they're not 611 00:29:57,400 --> 00:29:58,640 Speaker 1: going to grow much exactly. 612 00:29:58,640 --> 00:30:00,560 Speaker 2: And somebody sells one because they have to get rid 613 00:30:00,560 --> 00:30:02,520 Speaker 2: of it, and then it resets the price for everything else. 614 00:30:02,600 --> 00:30:02,800 Speaker 1: Yeah. 615 00:30:02,840 --> 00:30:05,240 Speaker 2: Yeah, the value is an as their price and because 616 00:30:05,240 --> 00:30:06,760 Speaker 2: it's not something unique. 617 00:30:06,960 --> 00:30:08,640 Speaker 1: So I always say just look. 618 00:30:08,520 --> 00:30:12,040 Speaker 2: For anything it's a bit unique, because that's always going 619 00:30:12,120 --> 00:30:13,520 Speaker 2: to be. If there's not a dozen of them, it's 620 00:30:13,520 --> 00:30:15,600 Speaker 2: always going to be holding its value. 621 00:30:15,920 --> 00:30:19,719 Speaker 1: Great advice. And let me just say to you come 622 00:30:19,760 --> 00:30:21,320 Speaker 1: with lots of raps from lots of people told me 623 00:30:21,360 --> 00:30:25,120 Speaker 1: to get you on. But congratulations on what you built 624 00:30:25,120 --> 00:30:30,400 Speaker 1: the agency, and thanks very much for your generosity today 625 00:30:30,400 --> 00:30:35,040 Speaker 1: by telling us what you a lot of hearing and 626 00:30:35,120 --> 00:30:39,640 Speaker 1: seeing and executing and transacting every day. Thanks for that audience. 627 00:30:39,680 --> 00:30:42,040 Speaker 2: If I can just say too, I followed your journey too, 628 00:30:42,160 --> 00:30:44,800 Speaker 2: so you're on the other side giving the wraps out, 629 00:30:44,840 --> 00:30:48,200 Speaker 2: but you've I've followed you from Wizard days when I 630 00:30:48,240 --> 00:30:51,120 Speaker 2: was kicking off and we're probably similar vintage. But I 631 00:30:51,160 --> 00:30:54,800 Speaker 2: saw your build like phenomenal businesses and watched your brow. 632 00:30:54,680 --> 00:30:55,240 Speaker 1: The whole way. 633 00:30:55,320 --> 00:30:57,480 Speaker 2: So it's an honor for me to be here today 634 00:30:57,480 --> 00:31:00,440 Speaker 2: too to be interviewed by appreciate it. 635 00:31:00,480 --> 00:31:02,120 Speaker 1: Thanks Matte go on your mate. Thank you