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Mix 106.3's Real Estate Show - 18/07/26 · The Real Estate Show

• 0:00
  Speaker 1: Cameron Renee's real estate show on Mix one oh six
• 0:04
  Speaker 1: point three Step into Stalish Low Maintenance Living in Canberra's
• 0:08
  Speaker 1: in and North to Berg by JW.
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  Speaker 2: Land.
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  Speaker 1: Well, can we're ready and excited for another Mixed one
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  Speaker 1: or six point three real estate show podcast?
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  Speaker 3: Yeah.
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  Speaker 4: One of the really interesting conversations we had was with
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  Speaker 4: our old friend Nick Payne from Momentum Property and we
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  Speaker 4: asked the question, should you go to market with a
• 0:23
  Speaker 4: list of price all by negotiation if you've already decided
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  Speaker 4: that you're not going to use the auction method of selling.
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  Speaker 4: It was an interesting conversation, wasn't it Indeed?
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  Speaker 1: And like with many of these scenarios, there's advantages and
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  Speaker 1: you know, potential disadvantages to both. So he looked at
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  Speaker 1: both in detail and perhaps, you know, gave us some
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  Speaker 1: more food for thought.
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  Speaker 4: Interesting conversation also with Ashley Bury from the Property Council
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  Speaker 4: in regards to build rent Yes.
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  Speaker 1: And she spoke about the concept in general an event
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  Speaker 1: that they're doing on that as well.
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  Speaker 4: Okay, and then Michael Yardney, of course see of Metropol
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  Speaker 4: property strategists, had a really good, an interesting conversation talking
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  Speaker 4: about is it just the winter chill or is there
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  Speaker 4: a real property downturn?
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  Speaker 1: Yes, and we've obviously heard lots of reports about you know,
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  Speaker 1: property values falling, so he deciphered.
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  Speaker 5: That all for us.
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  Speaker 4: Okay, that was the show on Saturday, and we get
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  Speaker 4: to relive it with you right now via the podcast
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  Speaker 4: thanks to JW Land Mixed one of six point three.
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  Speaker 1: Can We've seen lots of reports right about property values
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  Speaker 1: falling in many areas, you know, recently, as we wanted
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  Speaker 1: to find out, is this just like a winter chill
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  Speaker 1: or are we heading for you know, a bigger property downturn.
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  Speaker 1: And Michael Yarney is the CEO of Metropol Property Strategist,
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  Speaker 1: has been on the show for.
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  Speaker 5: A long time.
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  Speaker 1: Michael, good morning, Good morning Ray. Now look what are
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  Speaker 1: we looking at here?
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  Speaker 2: Well, our property markets are falling, and I agree with
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  Speaker 2: you it's unlikely to be just a winter chill. The
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  Speaker 2: property markets move in cycles and for many parts of
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  Speaker 2: Australia we've had a number of strong years of growth. Look,
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  Speaker 2: I remember at our chatity at the beginning of this
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  Speaker 2: year we talked about how resilient the markets were, how
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  Speaker 2: well that climbed in twenty twenty five, but it was
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  Speaker 2: on the back of increasing confidence, and we've had three
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  Speaker 2: interest rate cuts and since then the conversation has changed.
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  Speaker 6: So we've had a number of interest rate.
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  Speaker 2: Rises, we've had the war overseas, we've had budget changes here.
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  Speaker 6: All that has just accentuated and brought on the downturn.
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  Speaker 2: This is just the cycle behaving and these downturns off
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  Speaker 2: the last nine months, twelve months and go on. But Renee,
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  Speaker 2: the markets are fragmented. Perth, Brisbane and Adelaide are still
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  Speaker 2: going up. Canbra's property values fell according to Cotality only
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  Speaker 2: zero point six percent last month, one point three percent
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  Speaker 2: in a quarter. But anyone who's got a home in
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  Speaker 2: Canberra the values have probably still up three or more
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  Speaker 2: percent than there was twelve months ago.
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  Speaker 6: Renee.
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  Speaker 4: Yeah, and so, and we've had this conversation previously, Michael,
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  Speaker 4: how much does the media, how much did the media
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  Speaker 4: be accountable for, you know, spreading these negative messages. I
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  Speaker 4: bumped into Glen Kingston from Homan Partners yesterday at the
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  Speaker 4: Curtain Shops there while I was down visiting Paul at Prohibition,
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  Speaker 4: and we had this sort of ten minute conversation and
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  Speaker 4: he was very much you know, body media and so
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  Speaker 4: it's like, well, hang on, it's not all media, but
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  Speaker 4: there are certain parts of the media that absolutely feed
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  Speaker 4: off this negativity, isn't there.
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  Speaker 6: Yes, they do.
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  Speaker 2: Because the headline the property market is crashing against eyeballs
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  Speaker 2: on the media sites, while our property vedus went up
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  Speaker 2: a tiny bit. Nobody really makes a lot of fuss
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  Speaker 2: about that. So I think we've got to remember it's
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  Speaker 2: not the media's job to edge you, case you. It's
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  Speaker 2: to entertain you. But it's not causing it, but it's
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  Speaker 2: definitely accentuating it with just lack of confidence. No one
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  Speaker 2: wants to catch the falling knife. If property values are
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  Speaker 2: going to drop a bit further, it let me wait
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  Speaker 2: a little while and to see what's going on.
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  Speaker 6: So it's putting people on the sidelines.
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  Speaker 5: Cam, Yeah, one hundred percent.
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  Speaker 1: And Michael, you know the latest inflation figure came in
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  Speaker 1: slightly lower at four percent. Is this a good sign?
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  Speaker 1: And what do you think the Reserve Bank is going
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  Speaker 1: to do off the bank?
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  Speaker 2: Well, yes, in headline inflation east from four point two
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  Speaker 2: to four percent in May, and it is at first
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  Speaker 2: sight that sounds encouraging, but the figure of the Reserve
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  Speaker 2: Bank looks at it that matters. Most of them actually
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  Speaker 2: went in the opposite direction. In other words, the triumps
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  Speaker 2: inflation where you cut out the outliers actually rose and
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  Speaker 2: that means that the Reserve Bank's going to have a
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  Speaker 2: difficult decision. But it doesn't meet this month in July,
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  Speaker 2: so we've got a month's reprieve and there'll be another
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  Speaker 2: set of figures coming.
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  Speaker 6: Out before their August meeting.
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  Speaker 2: But it doesn't mean that an end. It definitely shows
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  Speaker 2: that an interest rate cut isn't anywhere likely in the
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  Speaker 2: near future, and it could even mean a rise in
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  Speaker 2: interest rates every month. When we talk about that, I
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  Speaker 2: know you cringe when I suggest.
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  Speaker 4: I just held my breath, Michael.
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  Speaker 6: I don't think it's going to happen.
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  Speaker 2: I think that rates will remain steady for the balance
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  Speaker 2: of this year and probably into the second quarter of
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  Speaker 2: next year. But it's not as good news as the
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  Speaker 2: headline says. Again, the media doesn't tell the full story, came.
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  Speaker 5: Yea one hundred percent.
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  Speaker 1: People should go out and get the full picture from
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  Speaker 1: various reputable sources.
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  Speaker 5: Michael, thank you so much for your time this morning.
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  Speaker 6: My pleasure. Renee.
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  Speaker 1: She is Michael Yardney, CEO of the Metropol property strategists.
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  Speaker 5: Well, Cam, we've heard of.
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  Speaker 1: The concept of bill to rent in the Act. It's
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  Speaker 1: not a new thing and we've spoken about it on
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  Speaker 1: the show before. But there's a really interesting event coming
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  Speaker 1: up next Thursday at Hotel Realm an ACT Property Council event.
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  Speaker 1: Looking at this and Ashley Berry is the executive director there.
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  Speaker 5: Ashley, good morning, good morning.
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  Speaker 1: Now look can you give us so there's this event
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  Speaker 1: happening next week which is awesome. Can you give us
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  Speaker 1: a picture of you know what bill to rent is
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  Speaker 1: and how it works?
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  Speaker 7: Absolutely so. Bill torent is as it sounds. It's when
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  Speaker 7: a developer or an investor sets out to build homes
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  Speaker 7: and normally it's in an apartment complex. They're not intending
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  Speaker 7: to sell it. It's designed to be rented out to
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  Speaker 7: tenants for a long period of time, usually at least
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  Speaker 7: fifteen to twenty years, but it could stay built to
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  Speaker 7: rent forever. And it works because it's designed to give
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  Speaker 7: people security, a bit of certainty that they're not going
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  Speaker 7: to be kicked out because the property needs to be sold.
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  Speaker 7: It's set up in a way with property managers, great
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  Speaker 7: facilities on site, and it's a new way, a different
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  Speaker 7: way of living maybe for some. But we've got to
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  Speaker 7: remember that not everyone wants to buy a home at
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  Speaker 7: a particular point in their life, whether you know, whether
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  Speaker 7: it's because of finance or whether it's they're only here
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  Speaker 7: for a short period of time. So we need to
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  Speaker 7: look at giving people a few options.
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  Speaker 4: Okay, and so this is very much in and around
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  Speaker 4: this idea of being an important piece of the housing puzzle.
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  Speaker 4: So you've just given us one piece of the puzzle.
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  Speaker 4: What are some of the other reasons that build to
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  Speaker 4: rent is a good option, especially here in the Names Capital, well, particularly.
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  Speaker 7: Here in Canberra. And it's a shame that it hasn't
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  Speaker 7: taken off because we should be the exemplary, you know,
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  Speaker 7: we should be exemplary from a built to rent perspective.
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  Speaker 7: We've got high medium incomes. We've got people who might
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  Speaker 7: move here for two to three years, you know, whether
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  Speaker 7: it's for a grad program or a posting, and they
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  Speaker 7: don't want to buy because unfortunately they're not staying here permanently.
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  Speaker 7: As much as we'd love to keep everyone, there is
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  Speaker 7: that high turnovers. So we need to have something on
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  Speaker 7: offer give them security, gives them good amenity in a
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  Speaker 7: good location when they want something that's secure and they
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  Speaker 7: can lock up and head home or head somewhere else
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  Speaker 7: on the weekend. It's a really important piece.
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  Speaker 5: And why hasn't it taken off.
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  Speaker 7: There's a few tax issues, there's a few government legislative
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  Speaker 7: issues that we're working through that at the moment, it
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  Speaker 7: just doesn't make financial sense for it to be done
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  Speaker 7: at scale, and so we need to you know, part
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  Speaker 7: of this event is about how do we unlock those
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  Speaker 7: tax investment settings so that we can deliver this because
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  Speaker 7: it can really help drive good, well located homes, you know,
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  Speaker 7: two three bedrooms, a good mix and get people maybe
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  Speaker 7: out of rental stress or into a home in the
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  Speaker 7: area that they'd love.
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  Speaker 1: Do you think there's lots of people in Canberra that
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  Speaker 1: would be keen like, is there high demand for this
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  Speaker 1: kind of housing in Canberra?
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  Speaker 7: I absolutely think there is. I know when I moved
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  Speaker 7: to Canberra a little over ten years ago, this would
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  Speaker 7: have been perfect for me, young professional moving and wanting
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  Speaker 7: a high level of amenity. You know a lot of
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  Speaker 7: the good examples have We've got coffee shops at the bottom,
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  Speaker 7: they've got gyms, they've got community spaces as well, and
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  Speaker 7: that's really important. We still need to have that community
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  Speaker 7: and have that connection and that's something that Build to
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  Speaker 7: Rent can do really well. Because it's one owner, they're
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  Speaker 7: controlling it.
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  Speaker 4: All Okay, all right, Well you've given us a really
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  Speaker 4: good taste of what to expect in this of conversations
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  Speaker 4: and presentations on Thursday night at the event, and we
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  Speaker 4: know we can go to the Property Council website for
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  Speaker 4: all of those details to log on and register.
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  Speaker 6: Ashley, thank you so much for joining us this morning.
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  Speaker 7: Thanks Cam, Thanks Renee.
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  Speaker 5: Thank you.
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  Speaker 1: Ashley Burry, the executive director of the Property Council Act
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  Speaker 1: and Capital Region.
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  Speaker 5: Well, Cam, the next question we're about to ask.
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  Speaker 1: I'm sure our guests will have been asked this question
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  Speaker 1: many times, probably on a weekly basis, and it's a.
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  Speaker 4: Game changer, right, This could be worth thousands, it could
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  Speaker 4: be worth tens of thousands of dollars.
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  Speaker 5: Yes.
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  Speaker 6: In the result, yep. As to which way.
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  Speaker 1: You go totally and so you obviously if you're selling
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  Speaker 1: your home selling via octional private treaty. If you decide
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  Speaker 1: to go via private treaty, a question that then comes
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  Speaker 1: up is do you go with like a listed price
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  Speaker 1: from the outset or you know how some of them
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  Speaker 1: say by negotiation do you put that in? And Nick
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  Speaker 1: Payin is from momentum property joins us. Now, Nick, good morning,
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  Speaker 1: you going good?
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  Speaker 3: Now?
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  Speaker 1: Look in this scenario, which I'm sure is one that
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  Speaker 1: pops up for you all all the time, what are
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  Speaker 1: some of the things that you should take into account
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  Speaker 1: when making this decision?
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  Speaker 3: I think it's yeah, property is a really big one, Renee,
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  Speaker 3: Like I think, not every property is the same, So
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  Speaker 3: you know, you've really got to take into account some
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  Speaker 3: of the features your home will have, and also just
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  Speaker 3: your appetite for risk and I guess the information you
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  Speaker 3: want before making a decision to sell.
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  Speaker 4: Okay, And so is this a decision that you have
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  Speaker 4: to speak to people with about pretty often?
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  Speaker 6: Is this one that comes up all the time.
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  Speaker 3: All the time, camp all the time. So obviously, like
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  Speaker 3: Renee said before action or private treaty, we're probably a
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  Speaker 3: predominantly auction business, but we do talk about private treaty
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  Speaker 3: all the time with people, and those are the options
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  Speaker 3: with private treaty with a price or without price, And
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  Speaker 3: a lot of that time it means by negotiation, So
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  Speaker 3: talking people through what.
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  Speaker 6: It actually means.
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  Speaker 3: And what kind of process you run with each of
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  Speaker 3: them is really important. And so yeah, we deal with
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  Speaker 3: this probably daily.
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  Speaker 5: Okay, what is the riskier of the two, Well.
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  Speaker 3: It depends if we talking about risk in time or
• 11:00
  Speaker 3: maybe lost opportunity. But they both work. They both work
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  Speaker 3: really well. It's just having the understanding of what they are. Obviously,
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  Speaker 3: no price means that we're trying to encourage offers. We're
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  Speaker 3: trying to get as many people through the door as
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  Speaker 3: possible and get feedback from the buying public as to
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  Speaker 3: what they think the house might be worth. And generally
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  Speaker 3: that would be the first tactic to move them to
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  Speaker 3: a private treaty with a price on it.
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  Speaker 4: Okay, and so let's have a look Thet's break that
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  Speaker 4: down a little further. When we're thinking about a list
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  Speaker 4: of price, what are some of the advantages of going
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  Speaker 4: to market with a list of price?
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  Speaker 6: I think the.
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  Speaker 3: Biggest advantage CAMP is the fact that it's just clarity
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  Speaker 3: for buyers straight away. If you're putting a price out there,
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  Speaker 3: especially without a plus, just a flat listed price, it
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  Speaker 3: gives a lot of clarity to the buyers. It also
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  Speaker 3: gives them something to use as a litmus test. I
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  Speaker 3: suppose as to what they see value of the house.
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  Speaker 3: And so generally, if your priced really well, you will
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  Speaker 3: get a bunch of people through the house and you'll
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  Speaker 3: get offers made relatively quickly on it.
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  Speaker 1: Yeah and okay, so what about buy negotiation. What are
• 11:59
  Speaker 1: the advantages of doing that?
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  Speaker 3: So I think that one RENEE is more so about
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  Speaker 3: trying to get information.
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  Speaker 6: So, like I said.
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  Speaker 3: Before, we're trying to encourage offers and feedback from the public.
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  Speaker 3: And it might be really good if you've got a
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  Speaker 3: bit of a unique property where it's got views, or
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  Speaker 3: maybe it's in a really cool street or something it's
• 12:15
  Speaker 3: a little bit of a quirk and you can't quite
• 12:17
  Speaker 3: price it right, or if there's not a lot of
• 12:19
  Speaker 3: information to get the actual listed price right. So by
• 12:23
  Speaker 3: negotiation encourages a lot of feedback and then you can,
• 12:26
  Speaker 3: I guess, if you get an offer that's a miles
• 12:30
  Speaker 3: above where everyone else thinks, you can sell the property
• 12:32
  Speaker 3: that way, or you can use it for a couple
• 12:34
  Speaker 3: of weeks to ascertain where you should probably list the price.
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  Speaker 5: And that's what I was going to ask you.
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  Speaker 1: Does that happen often where people start off with by
• 12:40
  Speaker 1: negotiation for a week or two and then move to
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  Speaker 1: a listed price.
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  Speaker 5: How often does that happen?
• 12:45
  Speaker 2: Yeah?
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  Speaker 3: Absolutely, and I think that's the right way to do it.
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  Speaker 3: I know that there's some different different methodologies out there,
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  Speaker 3: but I know that that's how I've predominantly used it
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  Speaker 3: in my career, is that it's good for the first
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  Speaker 3: maybe two or three weeks, much like an auction really,
• 12:59
  Speaker 3: except we just and have the stress and the date
• 13:02
  Speaker 3: of the auction coming up to try and force the decision. Yeah.
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  Speaker 1: Okay, well, really interesting and no doubt a situation people
• 13:09
  Speaker 1: listening currently or have certainly found themselves in at some
• 13:12
  Speaker 1: stage or will in the future.
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  Speaker 5: Nick, that was great. Thank you so much for sharing
• 13:16
  Speaker 5: all that with us.
• 13:17
  Speaker 3: No worry. Thanks guys.
• 13:18
  Speaker 1: Cheers are Nick Paine, who's a director and agent at
• 13:21
  Speaker 1: Momentum Property.
• 13:22
  Speaker 4: Well those are the interviews we most enjoyed in last
• 13:25
  Speaker 4: week's Mix one O six point three real Estate Show.
• 13:28
  Speaker 4: If you love hearing about the latest trends, or you're
• 13:30
  Speaker 4: just up for a sticky beak, be sure to drop
• 13:32
  Speaker 4: by for a listen this Saturday between nine and ten
• 13:36
  Speaker 4: Cham and Renee's
• 13:36
  Speaker 5: Real Estate Show on Mix one O six point three