What may happen in the property market over the next 6-12 months

Transcript
“Hello and welcome back to daily buying tips, I’m Dean Berman from Berman Buys.

Today we’re going to talk about what may happen in the property market over the next 6-12 months.

I think the government and the banks will play a leading role here.

Property is fundamentally governed by supply and demand.

Supply side issues can occur if multiple owners, are forced to sell at the same time i.e. as they cannot continue to repay their mortgages.

The government and the banks can and should step in, in my opinion to help people in financial hardship such as freezing mortgages for at least 6 months.

The people that will feel this period the hardest in my opinion are the ones in industries where social interaction and public gatherings takes place.

These can be both small business owners and their staff and supporting industries.

Industries such as hospitality, tourism, retail and entertainment.

The other sect are those who unfortunately lose their jobs or are forced to take unpaid leave.

These people will need help.

My solutions if you are in such a position and can’t afford to pay your mortgage.

Maybe rent out one or a few of your rooms for a few months.

I know this isn’t ideal, but that extra income may help in getting you through this tough period of time.

If possible, find a way to turn an unused space into a habitable room such as a garage.

Those extra few hundred dollars a week may make a massive difference to your cashflow.

Landlords need to show empathy at this time.

This isn’t just residential, but also commercial.

These are people with families, before these last 2 weeks, they were happily tracking along.

All of sudden everything has changed.

The big retail landlords such as Westfield, Vicinity, Stockland, QIC and GPT to name a few.

The bulk of your tenants will likely be struggling at this time.

Walk around the shopping centres and you will see for yourself.

Find a solution to make it fair for them.

The other aspect which can greatly affect supply is fear.

Fear, if prices go down, you want to get out before they may fall further.

This is FOMO 101 and would be regarded as the worst way to deal with such a time.

The best advice I can provide is simply, see it out.

Don’t just sell, unless you absolutely must.

Prices will come back.

You need to stay calm.

There is a chance stock levels i.e. newly listed properties may move at below average rates.

I.e. less properties will be listed.

This could also cause prices to stabilise in some areas.

The general thinking is prices will likely decline in many areas, due to sentiment though.

I think some buyers who are in secure jobs and have ample savings and borrowing capacity, will probably be watching what happens and identifying any opportunities they see.

A portion of the market may sit it out.

These might be those in uncertain employment positions.

Whichever place you fall into the market.

Remember we are all in this together.

An interesting quote to think about at this time.

Aristotle once said, “The whole, is greater than the sum of its parts.”

How to try stop being gazumped

Transcript
“Hello and welcome back to daily buying tips, I’m Dean Berman from Berman Buys.


Today we’re going to talk about what you can do try limit being Gazumped.

What is gazumping?

I look at gazumping as when you have an offer accepted on a property and are ready to exchange and all of a sudden out of nowhere someone has a better offer and has exchanged from beneath you.

Hence the term, gazumped.

Often times this offer is just higher than your offer.

Gazumping isn’t as common as it used to be in my opinion.

I feel many agents out there have some degree of ethics or morality.

Yet unfortunately a small minority, will let this happen.

I understand they are trying to do what’s best for their sellers.

However, shouldn’t there be some decency or honouring of thy word?

Here are some ways to limit being gazumped.

It comes back to speed, like a cheetah in the wild with prey in it’s midst.

Be quick to provide details for the sales advice.

These are usually your name, residential address, solicitor details.

Be quick to exchange on the contract i.e. signing and often paying the 0.25% deposit or sometimes it’s the deposit to go unconditional and a 66W.

Once the contract exchanges and enters a cooling off period or goes unconditional, you can’t be gazumped.

Try your best to get to that point as fast as you can, particularly if there is competition.”

What to do when everyone wants the property you want

Transcript
“Hello and welcome back to daily buying tips I’m Dean Berman from Berman Buys.

Today we’re going to talk about what to do when there is massive competition in the market for the property you want?

Firstly you must realise that property markets go through times of strong competition. Fuelled by factors such as low interest rates, less stringent borrowing and buyer/media confidence.

I feel like we are at a point in some markets where buyers were waiting and now are pouncing, like a hungry lion in the Savannah.

The more buyers the more competition, particularly for scarce properties. This is what ultimately causes prices to rise.

What should you do?

Understand that you will likely miss out on a number of properties before the right one falls into place. Don’t get deflated as this is simply part of the process. You need a degree of aggression when making offers. The offers need to have limited terms i.e. as close to an unconditional offer as possible. As the competition in many instances isn’t going to have conditions.

Conditions are things like the deposit amount, the settlement period, cooling off period, finance or pest and building clauses etc… It’s also very important to clearly convey your interest to the agent.

In this market it’s very common for a property to go under contract without you even knowing.

In summary, you want to generally put forward strong offers, with limited terms and be clear on your interest.

That’s a start to stay at least in line with the competition.”

Why patience is important when buying property

Transcript
“Hello and welcome back to daily buying tips, I’m Dean Berman from Berman Buys.

Today we’re going to talk about why patience is important when buying.

I often find buyers want to purchase as soon as possible.

You’ve made the decision, and you want it now.

Which is totally fine and understandable.

However, I would recommend that rushing isn’t the best idea.

Rushing is basically taking the first thing that comes along.

We are generally talking about alot of money here.

From hundreds of thousands to millions of dollars.

Sometimes you are lucky as a buyer and the perfect property comes up straight away.

Sometimes it takes a few weeks.

And sometimes a few months.

From my experience, it will eventually show itself.

Patience is important during this search timeframe.

Particularly if it takes longer than you had hoped.

I do understand often times there are time pressures from expiring rental leases.

Upsizing or downsizing from a property sale.

Or even continuing the investment journey.

My main tip would be to create an initial plan.

Then amend the plan as you go.

There will likely be one or two really important points which you should try and stick too.

I often find buyers goals change as the search continues and the market shows what properties are really worth.

Don’t get deflated.

Your property is around the corner, it just might have a few turns.”

Why it’s better to initially find out about the property

Transcript
“Hello and welcome back to daily buying tips, I’m Dean Berman from Berman Buys.

Today we’re going to talk about why it’s often better to initially find out about the property.

Than research the property.

In many instances I find it’s so easy to get caught up in the excitement of a property.

Looking at the potential.

The aesthetics.

The styling and location.

But what is often overlooked is if the property can even be purchased.

Because if you can’t purchase it, then it becomes an exercise in creativity which will end in disappointment.

If you are a buyer and want to buy a property.

Then fundamentally the success is in the buying.

This then comes down to the price you pay etc…

In regards to this.

It’s often a time consuming process to research.

It’s better to initially see if someone has made an offer.

Or even if the vendor is willing to negotiate.

Or sell before the auction.

Or the property may be under contract.

Or to realise the property you really like is well over your budget.

It can get disappointing when someone else has purchased the property you invested hours and hours into.”