Transcript
“Hello and welcome back to weekly buying tips I’m Dean Berman from Berman Buys.
Today we’re going to talk about the 66W.
I’m not a lawyer and can’t advise on the legal side of the 66W.
However, I can give you my thoughts on the importance of the 66W as a buyer.
This important piece of paper completed by your solicitor or conveyancer waives the cooling off period.
Like all of us, sellers like guarantees.
Which is why this document is so important.
The 66W or unconditional exchange gives the seller a guarantee.
It locks you as the buyer into the purchase.
Along with your 5% or 10% deposit.
Compare this to a 5 day cooling off period.
Which typically occurs during a normal private sale.
This cooling off period gives you 5 days to decide if you want to go ahead or not.
Think about those sellers.
5 nights of disturbed sleep, wondering if you will proceed or not.
Waiting for their sales agent to call them with any updates.
The unconditional exchange means this doesn’t need to happen.
You can also think of this unconditional exchange in the same way as an auction.
When you are the highest bidder in an auction, you purchase the property.
Same goes for the unconditional exchange.
Once the 66W has been completed along with the signed contracts.
Then the property goes ‘unconditional’.
Therefore it is important to get all your research and due diligence done beforehand to ensure you are 100% happy with the purchase.
From my experience the unconditional exchange can often be the difference between your purchase and yet another one you liked that didn’t quite come off.”
Why Affordable And Expensive Property Markets Differ
Transcript
“Hello and welcome back to weekly buying tips, I’m Dean Berman from Berman Buys.
Today I’m trying to work out why a property market is affordable or expensive?
Is it just one certain point or multiple reasons.
To best start I think it’s important to answer what is a property market?
I think property has something to do with the answer.
However, I think fundamentally a property market is its people?
Its residents.
Property is a by-product of this.
Almost an afterthought.
Without residents, you don’t have a market.
Wouldn’t you agree?
For example in an extreme case.
A town with the nicest houses in the world sounds great.
But what happens if no one lives there.
Maybe there’s something stopping people living there.
Maybe an environmental incident or some phenomena.
Whatever the case, there’s no demand.
You would achieve a great ‘bargain’ i.e. free, as there’s no competition and ample supply.
But, you would be living by yourself in isolation.
I would think this is the foundation of our question.
Understand the people and you can understand the market.
To get a clearer understanding I analysed only property markets with over 2,000 residents or more in them.
I did this as the statistics could be easily manipulated by small fluctuations in a small populated area.
Which we don’t want.
I looked at the most affordable and expensive property markets in NSW, VIC and QLD.
I looked at all 3 states to try and get a clearer picture of any results that seem to replicate.
From my analysis of over 20 potential reasons.
I found 5 which stood out above all else.
As a youngster you’re generally told to study hard.
Many families buy property near schools with great reputations for this reason.
They want their children to have a great education.
After they have attended primary and secondary school, they can land up at University.
Well based on my analysis this is actually a driver of what differentiates an affordable and expensive property market.
The percentage of the population who have completed a Bachelor degree in the affordable markets are about 10% and just under 50% in the expensive markets.
This is about 5 times more.
Implying there is a higher number of residents in the expensive market with a higher education level.
We could then hypothesise due to this higher education level residents can then achieve greater heights in their career.
This actually seems to be the case.
About 30% of residents in the affordable markets were in professional or management positions compared to 60% in the expensive markets.
Implying a higher proportion of residents are using their education levels and skillsets.
Interestingly leading to higher incomes which is a key point on the topic.
You would think higher incomes would lead to higher property prices as you can afford to save a higher deposit, borrow more, repay more and invest more in the local market.
Based on my research this is actually true.
As residents have nice degrees and are working in positions of power, they tend to earn more.
Median household incomes in the affordable markets were about half of what they were in the expensive property markets.
With these greater incomes residents seem like they want to live nearer to where the action is.
i.e. near the city or where the greater job opportunities may present themselves.
This results in population density increasing dramatically.
Another pivotal point in the research.
In affordable property markets they were below 200 residents per km2 compared to over 3,000 residents per km2 in the expensive markets.
Further implying residents are living closer to each other and in more built up conditions.
Land starts becoming scarcer and the number of houses generally decline.
Resulting in higher levels of apartments compared to houses.
In affordable markets the percentage of houses in the market tends to be above 80% whilst in expensive markets this drops to under 30%.
Implying greater levels of apartments or townhouses or villas in expensive markets.
Leading to higher house prices in the expensive markets due to scarcity.
I found things like median age and unemployment rates did not paint a clear picture of which market was more expensive.
I would have thought a market with a growing population would potentially be more expensive due to more demand on limited properties, whilst a shrinking population would have the opposite effect.
This didn’t seem to be the case, possibly because supply was growing in line with the demand.
I also found vacancy rates and long-term price growth rates didn’t show anything significant relating to whether the area was affordable or expensive.
There are also other points I haven’t touched on such as a suburbs reputation, proximity to amenities, crime rates etc…
In summary the residents are the ones which dictate whether a property market will be affordable or expensive.
The underlying answer seems to stem from the education, jobs and incomes of its residents.”
The best performing waterfront property markets along the Eastern Seaboard of Australia
Transcript
“Hello and welcome back to weekly buying tips, I’m Dean Berman from Berman Buys.
Today we’re going to talk about waterfront suburbs.
With the virus easing restrictions and holiday destinations opening up.
It seems like a good time to talk about how many of these areas have performed.
We will look at 10 year growth rates.
We’ll also focus purely on houses for ease of comparison.
The Eastern seaboard will be our focus from Port Douglas in Northern Queensland, through NSW to Warrnambool in Western Victoria.
There has been some mixed results in North Queensland.
We can see Port Douglas and Cairns with average growth around 30%.
But not the greatest results in Townsville, Mackay and Gladstone with fairly negative figures.
Highs of 70% growth in Noosa Heads were some of the highlights in the Sunshine Coast.
And alright results in Mooloolaba and Shelly Beach, upwards of 40%.
In the Moreton Bay and Redland regions, results were average in areas like Deception Bay, Victoria Point and Redland Bay around 10% growth.
In the Brisbane region, results were mixed, but improved compared to the surrounding regions in areas like Bulimba, New Farm, St Lucia, Indooroopilly and Yeronga.
On the Gold Coast results were largely average in areas like Southport and Mermaid Beach around 30%.
As we enter NSW results start to pick up.
Strong results in Northern NSW like Byron Bay, Lennox Head with growth around 90% and 48% respectively.
Really strong results around Forster (48%) and Blueys Beach with growth over 153%.
The Sydney region and surrounds generally experienced strong growth.
Nelson Bay, Bar Beach, Terrigal, Umina Beach, Manly (87%), Mosman, Bondi (82%), Kurnell (82%), Austinmer, Shellharbour, Kiama and Huskisson (72%) all had growth above 50%.
Batemans Bay and Tura Beach performed averagely with ground above 35%.
We now enter Victoria with most suburbs surpassing 50% over the last 10 years.
Areas like Inverloch (49%), Mornington (67%), Frankston (64%), St Kilda (106%), Point Cook (47%), Geelong (67%) and Torquay (57%).
Many of these suburbs are in line with many of Sydney regions results.
We finish in Warrnambool with average growth just above 20%.
What can we learn from these figures?
Basically NSW and VIC have largely outperformed QLD in the past 10 years.
Each suburb will have differing factors personally affecting the performance, which is really down to supply and demand.
We can assume the poor performing North QLD suburbs have had impacts from various economic and demographic factors.
I would hypothesise industries like mining, agriculture and tourism to name a few have affected demand and subsequent supply.
It’s interesting to note that many of the best performing suburbs have a strong reputation and desirability factor.
Areas like Noosa Heads, Byron Bay, Bar Beach by Newcastle, Manly, Bondi, St Kilda and Torquay.”
Summary of locations on the map in the video.
Port Douglas 35.5%
Cairns North 29%
South Townsville -10.2%
Mackay -2.9%
Gladstone -5.8%
Rainbow Beach 11%
Noosa Heads 70.6%
Mooloolaba 40.7%
Buddina 34.8%
Shelly Beach 50.9%
Deception Bay 10.9%
Brighton 33.6%
Bulimba 56.7%
New Farm 50.6%
St Lucia 38.7%
Indooroopilly 39.3%
Yeronga 23.5%
Lota 28.3%
Victoria Point 10.8%
Redland Bay 11.7%
Southport 25.6%
Surfers Paradise 3.5%
Mermaid Beach 31.4%
Byron Bay 94.3%
Lennox Head 49.2%
Coffs Harbour 38.3%
Port Macquarie 41.4%
Forster 48%
Blueys Beach 158.5%
Nelson Bay 53.1%
Bar Beach 145.4%
Terrigal 55.4%
Umina Beach 72.1%
Manly 87.7%
Mosman 59.8%
Bondi 82.6%
Kurnell 82.2%
Austinmer 63.8%
Shellharbour 55.1%
Kiama 59.3%
Huskisson 72.6%
Batemans Bay 37.8%
Tura Beach 46.5%
Golden Beach 107.2%
Inverloch 49.5%
Mornington 67.1%
Frankston 64.4%
St Kilda 106.4%
Point Cook 47.2%
Geelong 67.2%
Torquay 57.6%
Warrnambool 23%
Transcript
“Hello and welcome back to weekly buying tips, I’m Dean Berman from Berman Buys.
Today we’re going to talk about the different types of first home buyers.
In my opinion there are 5 types of first home buyers.
The first being the one who needs a property asap i.e. the timeline first home buyer.
These are often determined by a changing employment situation and borrowing capacity, ending rental leases, changing moving arrangements or an incentive such as a government grant.
The second being the investor. The one who wants to make the most prudent choice with their first property.
These buyers usually rent where they want to live and invest in locations they can afford in and also believe will provide solid long-term growth and limited rental vacancy.
The third buyer is the owner occupier.
Usually needing to upsize or downsize due to changing family numbers either growing or shrinking. Often times the amenity, lifestyle, work proximity and schooling will have a much more significant impact on decisions, resulting in a more emotional process.
The fourth buyer is the overseas Australian citizen or PR, who wants a base in Australia in the future whilst also providing a rental benefit until such time.
They are a mixture of investor and owner occupier.
The fifth type of first home buyer is the buyer who has never considered purchasing but may have just inherited a sum of money or had a sudden change of fortune to enable ownership.
These buyers will probably look to occupy their very own space for the first time, but some choose to let the money work for them in an investment capacity.
Sometimes first home buyers fuse multiple sections together such as purchasing with the desire to buy a property in a timely manner, whilst keeping an eye on future potential because of changing circumstances.
So we understand the 5 different types of first home buyers.
If I could give three pieces of advice for first home buyers.
These would be.
1) If you plan on living in the property for a long time, sometimes it may make more sense to buy something you love and will enhance your life, rather than just buy it because it makes financial sense. i.e. the happiness versus money debate.
2) A property can be changed internally, in an almost infinite amount of ways. The location cannot be changed.
3) If you are deciding to buy an investment now as your first home or save to buy your first residence, consider what you can get for both now and into the future and whether it will place yourself in a better position. i.e. trying to build up a greater deposit through investing or waiting 5 or 10 years to hopefully afford the dream property.”
