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Mix 106.3's Real Estate Show - 13/06/26 · The Real Estate Show

0:01
Speaker 1: Cameron Renee's real estate show on Mix one O six
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Speaker 1: point three Step into Stylish, Low Maintenance Living in Canberra's
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Speaker 1: Inner North to burg by j W Land.
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Speaker 2: Started to bring you yet another Mixed one and six
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Speaker 2: point three real estate show podcast.
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Speaker 3: Yes we are indeed thanks to JW Land and I
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Speaker 3: know Renee on Saturday, I know you were excited to
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Speaker 3: be speaking about fixed price building contracts Adam Hoble, principle
0:24
Speaker 3: and building designer at Adam Hoble Design.
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Speaker 4: Yeah, gave us some really good information, didn't.
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Speaker 2: He Yes, because you hear, you know, the term fixed
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Speaker 2: price building contract and it all you know, sounds okay,
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Speaker 2: that sounds good, but it turns out there's a bit
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Speaker 2: to discover and a few bits and pieces hidden in
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Speaker 2: the contract that might catch people out.
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Speaker 3: I know, as that conversation was happening live on air,
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Speaker 3: you had a friend as well who is building at
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Speaker 3: the moment, and she said what did she say?
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Speaker 2: She texted me saying, oh, you know, tell me about it.
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Speaker 2: With fixed price contract we've ended up having to pay
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Speaker 2: so much more than we thought we would because it
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Speaker 2: happens right.
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Speaker 4: Yeah, absolutely, so some really good information.
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Speaker 3: Keystone Terraces, We're another really special conversation that we had.
1:03
Speaker 2: Yeah, so we know that there's all sorts of different
1:05
Speaker 2: developments out there for you know, people who aren't going
1:09
Speaker 2: into a nursing home, but like different types of retirement
1:11
Speaker 2: villages and things like that. This is a really unique
1:13
Speaker 2: type of one that we've got to learn about.
1:15
Speaker 3: Yeah, these are homes designed for all all remaining.
1:19
Speaker 4: Stages of life, so they're very, very flexible.
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Speaker 2: Yeah, they are, which is really really good.
1:23
Speaker 3: Adam from ABG Developments told us all about that, and
1:27
Speaker 3: then of course how old mate Bushy.
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Speaker 2: Yes, we spoke to Bushy about all, you know, the
1:31
Speaker 2: stuff that's in the media about the property crash that's
1:34
Speaker 2: so called a great property crash, and he's sort of
1:37
Speaker 2: helped us pick apart you know, what's worth worrying about,
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Speaker 2: what isn't and what do people actually need to focus on.
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Speaker 4: Bushy Martin from Know How Property Finmance.
1:46
Speaker 3: I love his line here he says the media sees
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Speaker 3: a speed hump and calls it a sinkhole.
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Speaker 2: Yes, we do love that line. So it's always great
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Speaker 2: to chat to him about whatever.
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Speaker 3: All right, that's all ahead for you in the mix
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Speaker 3: one O six point three Real Est Show podcast again
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Speaker 3: thanks to JW Lamb.
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Speaker 4: I mixed one of six point three.
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Speaker 2: Well cam the great property crash that isn't now that
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Speaker 2: sounds like a bushy headline if theyver I've heard one right.
2:13
Speaker 2: This is our next guest We're going to chat about.
2:15
Speaker 2: You know, is property really falling off a cliff or
2:18
Speaker 2: just sobering up after the post COVID sugar rush.
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Speaker 4: Let's find out.
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Speaker 2: Bushy Martin from No How Property Finance Bushy, good morning.
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Speaker 5: Good morning guys, how are you good?
2:27
Speaker 6: Thank you?
2:28
Speaker 5: Now?
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Speaker 2: Look are the property crash headlines and it there's all
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Speaker 2: these different headlines out there. Are they fair or are
2:33
Speaker 2: they a bit overdone?
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Speaker 5: Well as usual, guys, the newsroom headlines are way overcooked,
2:40
Speaker 5: a bit like a bunning snag. Let's on the barbie
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Speaker 5: since Boxing day, guys, So yes, as long we expected. Actually,
2:45
Speaker 5: prices in some areas are actually finally calling. But cooling
2:48
Speaker 5: isn't crashing because what we're seeing is the normal property
2:52
Speaker 5: escurve of browth doing what it always does, where local
2:55
Speaker 5: areas moved for a sort of ten to fifteen yearcible
2:57
Speaker 5: as they grow strongly for two to five years, which
3:00
Speaker 5: I've just done in many parts of the country then
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Speaker 5: generally soften five to ten percent as the overstretched spring
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Speaker 5: returns that were equilibrium, and then it flattens for a
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Speaker 5: period before going.
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Speaker 7: Through a next growth spurts.
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Speaker 5: So that's not an asas that's normal, properly breathing, and
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Speaker 5: as you've said, rene, following these sort of post COVID
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Speaker 5: sugar rush many locations have actually had years of growth
3:19
Speaker 5: rate forward by cheap money load loostings, fomo and stimulus
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Speaker 5: on steroids. So we've actually seen in the areas like
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Speaker 5: perth Adelaide Brisbane grow roughly ninety two one hundred and
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Speaker 5: ten percent in value since twenty nineteen, which is around
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Speaker 5: ten to twelve percent a year and well above the
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Speaker 5: long term marverage and the high sixtes to seven percent range.
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Speaker 5: So this isn't the cliff. It's the market catching its
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Speaker 5: breadth out to sprinting in workboots. But as usual, a
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Speaker 5: lot of the media sees a speed bump and calls
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Speaker 5: it a sink whole.
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Speaker 4: Yes, and it is true.
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Speaker 3: We try so hard here not to do stuff like
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Speaker 3: that on this particular show, but you know others do.
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Speaker 3: Of course, That's how they get the clicks and get
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Speaker 3: the headlines and the views and everything. So mate, we've
3:55
Speaker 3: heard you say before that there's no such thing as
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Speaker 3: the property market. You have said that on our show before.
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Speaker 3: What do you actually mean by that?
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Speaker 5: Yeah, Well, saying the property market is like saying the
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Speaker 5: weather in Australia can because it can.
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Speaker 6: Be sunny and dar and frosty and camera.
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Speaker 5: And blowing a dog of a chain in Hobart. And
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Speaker 5: there's around eleven million homes across the country and every
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Speaker 5: one of them is different in different streets, suburbs, states,
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Speaker 5: price points and economies, so even two homes in the
4:22
Speaker 5: same street perform differently.
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Speaker 6: So there's no like to like you, which means.
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Speaker 5: There's no such thing as a property market. And constant
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Speaker 5: media reference to market medians might sound useful for broad direction,
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Speaker 5: but they're not a map. They're more like a foggy
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Speaker 5: windscreen with the wipers on holiday. And that's why smart
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Speaker 5: property players don't bind the markets. Meetings or headlines say
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Speaker 5: buy local homework and unique property opportunities guys.
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Speaker 2: Okay, And so ultimately, at the end of the day, Bushey,
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Speaker 2: what should listeners do when the head start, When the
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Speaker 2: headlines start yelling and we're hearing all these crazy words
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Speaker 2: and alarmist things.
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Speaker 5: Yeah, well, first they don't yield back, and then pull
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Speaker 5: out your calculator and separate the weather from the climate.
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Speaker 5: Because property there is the short term headlines rates or
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Speaker 5: oil shocks, budget noise and nervous nelly's and mediate pajamas, guys,
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Speaker 5: whereas the long term underlying property climate is supply demand, jobs,
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Speaker 5: income and scarcity. And underneath all of that noise, we
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Speaker 5: still have a massive housing shortage. Supplies load demand sticking.
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Speaker 5: Families still need more homes than we've got. So don't
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Speaker 5: panic because of national headlines. Because property isn't broken on
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Speaker 5: a crashing. The frost just fading, and when the froth clears,
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Speaker 5: the fundamentals finally get get hurt. So smart property pliers
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Speaker 5: don't panic when price growth eases. They breathe, They check
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Speaker 5: the numbers, They secure the right asset while everyone else
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Speaker 5: is doom scrolling in their dressing gowns, guys, So bring along.
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Speaker 2: Yeah, doom scrolling in their dressing gowns. There's plenty of
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Speaker 2: that that goes on. Bushy love chatting to you and
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Speaker 2: all your analogies. So good, Thank you so much for
5:45
Speaker 2: your time this morning.
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Speaker 6: Yeah, awesome, guys, love being on the show. We'll have
5:48
Speaker 6: a great weekend.
5:49
Speaker 2: Cheers. Thank you. Bushy Martin from No How Property Finance.
5:52
Speaker 2: What was the first one? Like a snag too long?
5:54
Speaker 2: There's been left on the barbie since Boxing Day? The
5:56
Speaker 2: Bunnings barbecue, the Bunning's bus, which of course doesn't happen
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Speaker 2: in Bunnings in the local area. No, no, no, no,
6:01
Speaker 2: no no. This morning, we're keen to learn about the
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Speaker 2: Keystone Terraces. Now, we often talk about new developments and
6:08
Speaker 2: things like that happen around Canberra. This one is pretty
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Speaker 2: unique and we're really keen to learn more about it
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Speaker 2: this morning, and Adam from ABG Developments is the one
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Speaker 2: to tell us about it. Adam, how are you?
6:19
Speaker 7: Yeah, very well, Thanks.
6:20
Speaker 2: That's good, Thank you so much for joining us. Now, look,
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Speaker 2: tell us about the Keystone Terraces and what you've created here.
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Speaker 6: Yeah.
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Speaker 7: Well, we've created some lovely, high quality townhouses that got
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Speaker 7: wide grids eight meters wide, and high quality fixtures and
6:38
Speaker 7: finishes and things like that. But really what we've created
6:41
Speaker 7: is a solution for people to age in place and
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Speaker 7: to have a home that's fit for purpose and of
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Speaker 7: no matter what life throws that you.
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Speaker 3: Yeah, and so there's a lot more talk about this
6:55
Speaker 3: in twenty twenty six, and there will be more as
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Speaker 3: we go along. Why is it important that these sorts
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Speaker 3: of designs are now being spoken about now actually coming
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Speaker 3: to fruition.
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Speaker 4: Why is this important?
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Speaker 7: Well, not everyone. In my experience, I've built hundreds of
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Speaker 7: retirement living homes, some in Canberra, some in your South Wales,
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Speaker 7: and those products are designed for people to kind of
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Speaker 7: age in place and make sure they've got the solutions
7:21
Speaker 7: in place. But we don't generally do it in normal
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Speaker 7: residential and so yeah, our kind of mission, if you like,
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Speaker 7: has been to do that and so that people can
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Speaker 7: own their own homes. So we really kind of see
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Speaker 7: it as an alternative to what you would get in
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Speaker 7: a retirement living but it's a normal home, okay.
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Speaker 3: And so what are some of the inclusions. How do
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Speaker 3: we age in place?
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Speaker 7: Well, our front six units there have lips in them,
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Speaker 7: they've got wide doors throughout, they've got no lips or steps,
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Speaker 7: they've got larger bathrooms, they've got opens and microwaves that
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Speaker 7: correct heights, not under benches. So all these kind of
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Speaker 7: functional things that make living and being cared for in
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Speaker 7: place possible.
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Speaker 2: Yes, and it make such a difference to people's every day,
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Speaker 2: you know, lives and living Adam, can you share some
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Speaker 2: of the feedback you've got so far and some of
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Speaker 2: the chats you've had with people who've come through.
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Speaker 7: Yeah, I think lots of people that are in that
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Speaker 7: phase of kind of considering the home the big home
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Speaker 7: is no longer manageable, can't do the gardens. But the
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Speaker 7: idea of lots of the conversations go to just the
8:31
Speaker 7: extent of the adventure of moving, you know, and not
8:35
Speaker 7: being able and fit for that. So a lot of
8:38
Speaker 7: our discussions do go there with people. And so we
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Speaker 7: put together kind of a little moving team to help people,
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Speaker 7: and we've done that for two of our purchases already,
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Speaker 7: so just helping them. We've got a little team that
8:48
Speaker 7: helps them declutter, pack and then organize the moving, and
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Speaker 7: they helped them unpack. So it makes it very possible
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Speaker 7: to do to undertake.
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Speaker 2: And even that in itself makes such a massive difference
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Speaker 2: because just that factor alone, that the overwhelming idea of
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Speaker 2: moving prevents people from doing it.
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Speaker 7: Yeah, that's right, and actually finding people who care enough
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Speaker 7: to help them actually in that journey because like we've
9:14
Speaker 7: had now two families that we've helped completely in that
9:18
Speaker 7: in that way, and first off, there's just a skepticism
9:21
Speaker 7: that a developer might do that. And so but we've
9:24
Speaker 7: put a little team together and you know, we've been
9:27
Speaker 7: to their homes and help help them actually go on
9:29
Speaker 7: this journey. And I think that's you know, I think
9:32
Speaker 7: partly that there's there's a lack of community help around people.
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Speaker 7: So but we're but we are doing that for people.
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Speaker 3: You said that you've built hundreds of retirement villages and
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Speaker 3: those sorts of structures in your time. This must be
9:44
Speaker 3: super exciting for you because it is different.
9:46
Speaker 4: It's different.
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Speaker 3: It shouldn't be different, but it is different, isn't it.
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Speaker 4: It is?
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Speaker 7: It is. And we had I had a man through
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Speaker 7: two weeks ago and in wheelchair and we got to
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Speaker 7: every room on and it's a three level terrists actually
9:58
Speaker 7: three stories and there's two bedrooms up the top, and
10:03
Speaker 7: we got through every room together and he just said,
10:06
Speaker 7: I can't do this normally. I can't go into a
10:08
Speaker 7: new home and just navigate through. So now not at
10:12
Speaker 7: once in that place, but perhaps you know, we may
10:15
Speaker 7: get there. But Avid Dwelling that's designed for that. It's
10:19
Speaker 7: really what our you know, is what our calling has been.
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Speaker 2: Yeah, one hundred percent. Well, Adam, it is life changing stuff,
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Speaker 2: it actually is. And thank you so much for sharing
10:27
Speaker 2: that with us. People can jump online just google Keystone
10:30
Speaker 2: Terraces high Property and they can have a look at
10:32
Speaker 2: that there. But thank you so much for sharing that with.
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Speaker 4: Us today, No worries, Thanks for having me.
10:38
Speaker 2: That's Adam from ABG Developments there talking about the Keystone
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Speaker 2: Terraces can well can fixed price building contracts? That sounds
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Speaker 2: you know, pretty good on the surface.
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Speaker 4: Right does it? Does it?
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Speaker 1: Though?
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Speaker 6: Well?
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Speaker 2: I think and we're going to learn about this in
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Speaker 2: just a sec there. There's a bit to dig down on,
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Speaker 2: a bit to investigate here, because I think there's a
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Speaker 2: few little hidden bits and pieces that might catch home
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Speaker 2: and is out too.
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Speaker 3: Many time I hear fixed price anything, Yes, warning signs exactly.
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Speaker 2: Adam Hoble, Principal building designer, Adam Hoble Design and author
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Speaker 2: of the book Nail It is going to tell us
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Speaker 2: all about that, Adam. Good morning, Good morning guys.
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Speaker 6: How are you good?
11:16
Speaker 5: Now?
11:16
Speaker 2: Look, we do hear it often fixed price contract. Is
11:21
Speaker 2: that reassuring or not?
11:25
Speaker 6: Well, very good question, very good question. The idea of
11:29
Speaker 6: a fixed price contract sounds great, no doubt about that,
11:32
Speaker 6: and that's why homeowners love the idea of them. But
11:35
Speaker 6: the understands there is no they're not They're not really
11:40
Speaker 6: as assuring or reassuring as they might sound. Of a
11:43
Speaker 6: ninety percent of residential building projects in Australia use fixed
11:48
Speaker 6: price contracts, and almost none of them are truly fixed.
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Speaker 6: There are clauses written into these contracts, they're perfectly legal,
11:57
Speaker 6: perfectly standard, that mean the final cost and end up
12:00
Speaker 6: a lot more than what you signed up for.
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Speaker 3: So what are some of the things that are hiding
12:05
Speaker 3: inside one of these things?
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Speaker 4: What should we be looking for?
12:09
Speaker 6: Look, there's a couple of very simple little terms that
12:14
Speaker 6: are really important to understand. On cost items and provisional sums.
12:21
Speaker 6: You'll see them written as PC and PS in the contract,
12:25
Speaker 6: and both fall into the broader terminology of allowances. A
12:29
Speaker 6: PC item is basically a placeholder for something in the
12:34
Speaker 6: build that you haven't chosen yet, things like your caps,
12:37
Speaker 6: toilet appliances, flow tiles. So the builder puts an allowance
12:41
Speaker 6: in the contract, and if you end up choosing something
12:44
Speaker 6: that costs more than the allowance, which is very easy
12:47
Speaker 6: to do when you're standing in the bathroom showroom. That
12:50
Speaker 6: difference gets added to your bill an end of a contract.
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Speaker 6: The builder can also charge a margin of up to
12:55
Speaker 6: twenty percent on top of that difference.
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Speaker 2: And look, I imagine correct me if I'm wrong, Adam, but
13:00
Speaker 2: I imagine that those that allowance that they allow for,
13:03
Speaker 2: you know, for taps and all those sorts of things,
13:05
Speaker 2: would would would that more often than not be for
13:08
Speaker 2: kind of the real basic, you know, standard kind of
13:11
Speaker 2: the risk.
13:12
Speaker 5: Yeah.
13:12
Speaker 6: So this is this is where I guess we really
13:14
Speaker 6: encourage our clients to be informed and kind of guide
13:19
Speaker 6: that process to actually understand what what is the reasonable
13:22
Speaker 6: cost of a toilet? You know, if the builders putting
13:25
Speaker 6: in an allowance of three hundred dollars for a toilet, then
13:28
Speaker 6: he's kind of allowing a really basic entry level toilet.
13:31
Speaker 6: So there are things you need to be aware of.
13:33
Speaker 2: Okay, So when I'm after my brass lovely you know
13:37
Speaker 2: tap that I want to get, I should just be
13:40
Speaker 2: wary to put some extra cash aside.
13:41
Speaker 6: Hut exactly. So that are there are things that we
13:43
Speaker 6: can can control and guide to make sure that you
13:46
Speaker 6: know there are no surprises working.
13:48
Speaker 3: Yeah, I mean it sort of sounds reasonable though, doesn't
13:51
Speaker 3: it Like a builda will put in the X amount,
13:54
Speaker 3: but if you want more then you just have to.
13:56
Speaker 2: Know about special defancy stuff.
13:58
Speaker 6: Yeah, yeah, it is. It's it's reasonable a builder can't.
14:03
Speaker 6: I mean, the other other term that we need to
14:06
Speaker 6: be careful of is provisional some. So we've got this
14:09
Speaker 6: idea of a PC and a PS prime cost and
14:12
Speaker 6: provisional sum. With provisional some is the items that there's
14:16
Speaker 6: labor and material involved in, so things like kitchen joinery.
14:21
Speaker 6: A builder can't know for sure how much you're going
14:24
Speaker 6: to spend on your kitchen because it hasn't yet been designed.
14:27
Speaker 6: So it's perfectly reasonable to use provisional sums, but they
14:30
Speaker 6: need to be done very transparently and very clearly, and
14:33
Speaker 6: the client really needs to make sure that they have
14:36
Speaker 6: an understanding of kind of what that.
14:37
Speaker 7: Money's like with to buy.
14:39
Speaker 2: Yeah, absolutely, Adam, Just quickly, how do we sort of
14:41
Speaker 2: avoid falling into these traps?
14:44
Speaker 6: Yeah, are two important things that you got to get
14:47
Speaker 6: right first before we go anywhere near builder or builders.
14:52
Speaker 6: You've got to make sure you've got your design and
14:53
Speaker 6: documentation sort of properly. The more detail in your drawings
14:56
Speaker 6: and specifications, the lesser and there is for vagueness and
15:01
Speaker 6: educated guesses in the quote. As we said, the builders
15:04
Speaker 6: can only really price what they are given, so if
15:06
Speaker 6: it's not in the documentation, it's going to get missed
15:09
Speaker 6: or it becomes a guess. And second, when you do
15:12
Speaker 6: get quotes, look really carefully at how many provisional sums
15:17
Speaker 6: and prime costs are in the quote, and ask the
15:19
Speaker 6: builder to explain each one, so you're looking for calculated estimates,
15:23
Speaker 6: not cold, wild random guesses. A well prepared quote should
15:28
Speaker 6: have as few provisional sums as possible, especially for things
15:31
Speaker 6: that should reasonably be expected to be quoted as fixed costs.
15:34
Speaker 6: And that's a big part of what we do, making
15:37
Speaker 6: sure our clients are really well prepared to get quotes
15:39
Speaker 6: that are thorough and accurate and not exposed to those blowouts.
15:43
Speaker 3: Prime costs, provisional sums renee. When you see those words.
15:47
Speaker 2: Ask the questions as.
15:48
Speaker 4: The questions exactly got on.
15:50
Speaker 2: Guys, that's been so interesting and informative. Thank you so
15:53
Speaker 2: much for your time.
15:54
Speaker 6: You're welcome, guys, have a great weekend.
15:56
Speaker 2: Sheers Adam Hobal principal building designer Adam Hobile Design. That's
15:59
Speaker 2: really interesting, isn't it?
16:00
Speaker 4: Cam sure is well.
16:02
Speaker 3: Those are the interviews we most enjoyed in last week's
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Speaker 3: Mix one O six point three real Estate Show. If
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Speaker 3: you love hearing about the latest trends, or you're just
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Speaker 3: up for a sticky beak, be sure to drop by
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Speaker 3: for a listen this Saturday between nine and ten Cam
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Speaker 3: and
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