Post Election Property Chat: How Will This Affect The Market?

The 2019 federal election has come and gone with some surprising results for some. What are our thoughts on this result and how it may affect the property market moving forward.

Book a free property strategy session

0:00 – Liberal are in
1:11 – This is a plus overall for the property market
2:30 – This doesn’t mean boom times, it is still a turbulent market
5:10 – APRA are making changes to lending
8:20 – Just because interest rates are low doesn’t mean you should over leverage
9:12 – Interest rates are likely to drop but by how much is unsure
10:44 – Nothing major is happening, but these are small positive changes
12:24 – At the ground level there are some suburbs with really strong demand
14:35 – Not the time to rush in, but it could be the time for a strategic asset
16:02 – The biggest thing is we just aren’t seeing the bad news

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Transcription:

Ryan 0:00
what is it like to work with a buyer’s agent so once you actually hire a buyer’s agent in order to help you purchase a property what does it look like from then and how do they step you through actually getting to the point where you own an investment property and receiving the rental income from it so today i have with me buyer’s agent simon everingham from pumped on property to talk us through exactly how this works so hey simon how’s it going

Simon 0:25
hey good thank you how about yourself

Ryan 0:27
very good so as one of the largest buyer’s agencies in australia you guys obviously work with lots of different clients every single month every single year and he walked them through this step on a constant basis so no one better to talk to them yourself when it comes to what does it actually look like for someone working with a buyer’s agent so what we want to do here is yeah just give people an idea of what the experience would be like and you know how frequent is the contact what are they expected to do what do they need to do just to i guess kind of ease some anxiety people if they’re thinking about hiring a buyer’s agent

Simon 1:05
yeah so look we i can’t really speak for any other buyer’s agencies out there because i’ve only ever worked with pumped on property our business here so you know our our approach to working with clients helping them invest in the australian property market is very relational so it’s not necessarily a one sided relationship where we tell you what to do and you do it it’s like okay well where he you’re there you want to get to this place in the future so we will educate and guide you through the process holding your hand every single step of the way making sure that you’re confident and comfortable with every single decision that you’re making throughout that process and there’s never any expectations to make a decision unless you’re fully understand exactly what decision you’re making and why you’re making it so it’s all coming back to having the right strategy and strategically implementing that strategy in smaller steps

Ryan 2:05
yeah so i think it’s important for people to understand that when they’re working with a buyer’s agent this is still your purchasing decision it’s not their decision that agency will offer you ideas they will present you with properties and spec properties on your behalf but ultimately it’s your decision what you purchase you’re going to be putting down the money you’re going to be signing on the dotted line and so a buyer’s agent will never or should never make that decision for you they’re just helping you with that process and that all begins with strategy as i know with pantone property you guys offer free strategy sessions which we talk about all the time but it starts with a free strategy to get clear on where you’re at where you want to be financially and what’s a property investment strategy that can help you get there so you want to talk about a little bit about that free strategy session simon and then also the follow up strategy session once people decide to become customers or become clients of yours

Simon 3:03
so this is you know the first part of the process which essentially is getting the confidence to actually book in that free strategy session and talking to a professional talking to an expert about your plans and what you’re looking to do now i can’t pretend that i’m a surgeon and that i could go out there and perform heart surgery on somebody so if i needed that i would go to a doctor so what buyer’s agents can do is they can offer that expert opinion from purchasing hundreds of millions of dollars worth of property and they can overlay that experience to help share with you some ideas that may help help you to get from point a to point b which is essentially financial freedom in the future so during that initial strategy session exactly what you said it’s just an open conversation with another person where we talk about your situation we’ll talk about where do you want to be 12 months from now where you want to be further down the track in the future what sort of challenges that you’re facing at this point in time and how you can actually overcome those challenges and we’ll also get really strategic and talk about the exact property investment goals that are important to you right now and some things that you may be considering because you know a lot of people come to us and they think that they have these grand plans to maybe do some huge development but then once you start practically breaking it down it may not be the best option and it may be a little bit of overkill to actually achieve what you want to achieve so it’s kind of about looking at what you want to do and then we’ll share our opinion as to how you could maybe get there or what might be a little bit more realistic

Ryan 4:42
yeah so after that free strategy session people walk away with an idea of a property investment strategy that can help them achieve their goals then if they do decide to work with you i know they go through another strategy session so once they become a client what sort of stuff are you talking yeah and how’s that different the first session

Simon 5:01
so the first session is very high level it’s talking about what you could potentially do once we’ve come to the point where we’re actually where you’ve actually engaged our services is where everything really starts so your second strategy session is going to be extremely deep so what we’ll look at is your current situation again we’ll look at your goals we’ll educate you on what opportunities are out there so we spend all day every single day scouring the entire australian property market the entire brisbane property market trying to identify good opportunities great suburbs and potential properties to purchase like that’s what we spend all of our time doing so we’ll actually educate you on the entire australian property market will educate you more specifically on the market that we’re going to be focusing on and a handful of suburbs that we’re going to be focusing on what a lot of investors do when they’re getting into property investing is they look at almost the entire australian property market which is 10s of 1000s of properties at any given time which is just impossible so once you get really specific we understand exactly where we want to be in the future we can pull that back and get okay well in your budget with your property investment goals this one two or three suburbs represent value and then we’ll educate you to a point where you know that suburb better than the suburb that you grew up in and went to school in when you were a younger kid like we get so deep there’s about 200 different key performance indicators that we look at each suburb each and every property and we educate you on all of these opportunities to a point where you are so comfortable and so confident with that strategy in those suburbs that you’re ready to actually get into the market and start looking at properties

Ryan 6:55
yep so that’s really cool i will say i feel like people might be thinking how do i get one of these free strategy sessions and so if you go to onproperty com au forward slash session then you can learn more about that over there so now that you’ve educated people on the exact suburbs that you’re going to be looking at properties for them in what’s kind of their role at that point i’m guessing they need to look at getting pre approval from their mortgage broker is there other things that they need to be doing at this point in time

Simon 7:26
yeah of course so not up until after the second strategy session is it required to actually go and get a pre approval in place generally we’ll have some sort of understanding of if people are in a situation to borrow or not then once we’ve defined the strategy we’ve just sort defined the suburbs the types of property and the price point that we’re going to be going for and we know exactly what we’re what pre approval we need to ask for at that point we’ll reach out to a mortgage broker now a lot of people have their own mortgage brokers which is great but we have people that we particularly work with ourselves and for any of our clients we’re more than happy to introduce them to our team of advisors like mortgage brokers and then we’ll work through the process of getting pre approval organized which can take anywhere between two and six weeks depending on your situation and throughout that period of time will be in contact every single week drip feeding new new bits of information about that suburb like sales history data sales maps flood maps previous properties that we’ve purchased in that area opportunities like granny flats and really get you to a point where you know everything that there is to know about that suburb

Ryan 8:41
yeah and so then i’m guessing while that pre approval is happening or even after it’s happened or before it’s happened you’re also expected inspecting properties in that area and looking at those properties and providing people with reports on those properties and whether you think they’re a good opportunity is that right

Simon 8:59
that’s exactly right so we will inspect once pre approval is organized we don’t really like getting into the market and actually physically inspecting properties for clients until they’ve got that pre approval organized because we don’t like hypotheticals we like to actually be able to action something if the right property does come up so once pre approval is organized we go out there once a week and we’ll inspect a number of suitable investment properties every single week on your behalf now as we’re walking through the property we will take many many many photos copious amounts of photos so many photos we also do a full checklist it’s got about 200 different points on it which compiles all that information into about a 10 page report which we send through to you we also send you through key performance data about the suburb and we’ll organize a weekly call where we’ll discuss all of the properties that we’ve inspected for you we’ll look at the pros and cons we’ll look at how this is going to help you execute on your property investment goals and work through that process now generally that period of actually physically inspecting properties runs somewhere between three and eight weeks so it’s not something that’s going to happen overnight it’s not like we’ve got a backlog of properties here that we’re going to get oh we don’t know anything about you but this property is perfectly suitable for your situation it’s more about understanding exactly what you need to do exactly the types of properties that we need to be finding for you then going out there and finding that for you

Ryan 10:35
yeah and so i think it’s important for people to understand a couple of things there one is that there is that wait time for pre approval so after you’ve started working with a buyer’s agent if you need to get that pre approval there may be a wait time of two to six weeks as simon said it’s not going to happen overnight so you just need to be prepared for that

Simon 10:54
it’s not a white period either like we maximize that time to the best that we possibly can by sharing with you heaps of data about the australian property market the brisbane property market the suburbs that we’re focusing on the types of property that we’re focusing on key performance indicators that successful investors look at so you know you’re starting to get more and more educated so that when we are ready to physically start inspecting properties and that pre approval is together you know you’ve got the competence you’ve got the knowledge you’ve got the skills that you need and you’ve

Ryan 11:26
got the education there to make ultimately you need to make the decision as to whether or not this property is right for you and you think it’s going to move you towards your goals and as you’re saying i really liked what you’re saying there because i have been on the road with you guys a lot i’m coming up next week which i’m really excited to hit the road with you again but i have been on i’ve been on inspections with you and with ads and with crystal and you do you look for particular properties with clients in mind they’re like brian can you feel a walkthrough of this property for this particular client and then you know when we talk about the properties afterwards you’re like yeah this i think this property suits this client’s needs this is what they’re after i’m going to give them a call this afternoon after they’ve had time to look through the report and then sometimes offers will be made on that day or later that week for those properties but i really do like how you’re working with the clients in mind and when an opportunity comes up that really suits them you guys are on to that

Simon 12:23
yeah so we never actually present the same property to two different clients either it’s very specific as a business we actually only work with seven new people each month at the moment so that gives us the capacity to make sure that strategies and suburbs and properties don’t overlap so okay we’ve gone through the process we’ve been inspecting properties now for a few weeks and the perfect opportunity comes out we’ve got a house in your budget in the right suburb in the right pocket of that suburb that is you know priced extremely well so at this point in time we’re ready were confident to put an offer on that property so we’ll share with you lots of recent sales history data we’ll you know have conversations with the agent around where their expectations are and what the sellers are hoping to sell that property for so we can get an understanding about where we can start the negotiations and then once you put forward the first offer will actually take care of the negotiations with the agent for you now we’ve worked with almost 500 people now so that’s 500 properties that we’ve successfully negotiated on there’s also number of properties that we’ve negotiated on and maybe missed out on because one thing that we make sure we never do is pay over market value for a property so we’re always trying our very best to make some money on the way in there but sometimes the property is so good and so well priced that you may be able to pick it up at the exact right price as well

Ryan 13:56
yeah and i think it’s important for people to understand there and this is something i talked about with ben in a previous video is that when the negotiation process is happening you’re negotiating on behalf of the buyer but the buyer and the client is actually making the decision as to what to offer so when there’s a renegotiation coming back you’re then calling back the client and then discussing it with them and then ultimately making the negotiation decisions the buyer’s agent isn’t doing that on your behalf so i think that’s important for people to understand as well that they’re not going to get caught up in as well when and someone’s making decisions for them at every point along the negotiation pathway it’s up to them what they do

Simon 14:34
that that’s exactly right and that’s why we like to say this as a partnership not a one sided relationship where your voice is important to us and we value your opinion what we want to do is facilitate you making the right decision but essentially the decision is going to be yours now let’s say we get that property we’ve secured it at a great price we’re all really excited it’s under contract generally how for 30 days or more for settlement and throughout that period of time you need to do your additional due diligence you also need to get your finances in place as well so that when that property settles you can actually pay for it so at that point what we’ll do is we’ll introduce you to a building and pest inspector if you if you need to so you can get them to look through the property and make sure that it’s structurally sound and there’s no pest issues associated with the property we’ll also get a solicitor now same thing some people have their own solicitors some people need an introduction to a property specialist we can do that as well introduce you to a solicitor who do some additional checks additional due diligence on the property like flood searches title checks all of these different background things that need to be checked if we’re satisfied by that we’ll say at the due diligence clause when that’s due that we’re all happy with this property we are ready to proceed with settlement so then we work through until settlement occurs and generally what we want to do as well before settlement occurs is get an introduction to a local property manager somebody that can look after that property they can come around to the property do a bit of a rental appraisal for you maybe even start marketing that property as soon as settlement occurred so you can minimize the amount of vacancy that you have on your property

Ryan 16:24
yeah and so you basically hold their hand all the way through settlement until they actually settle on that property and own it and hopefully get a tenant in there as well

Simon 16:33
yeah exactly so we’ll hold your hand through every single step of the way once we’ve settled on the property and you’ve got some tenants in there generally what we’d like to do is a recap strategy session where we’ll you know go back on the process and go okay like how is this property linking to my longer term goals what is my next step what do i need to do moving forward and something that we offer for all of our clients as well is access to my personal phone to ben’s personal phone to crystal’s personal phone to adams personal phone plus all of our calendars so that if at any point both now and also in the future you want to reach out and get a bit of an update on the australian property market an update on your portfolio or an update on what your plans are to do next we offer also offer that ongoing support and mentoring for anything property related as well so it’s not just you know purchase a property and then we’re done it’s like we want to work with great people that value property investing and want a long term relationship

Ryan 17:36
yeah and for a lot of people one property purchase is a great start and a massive milestone huge step in the right direction so for most people one property is not going to get them towards their property investment goals it’s a great step it’s a huge milestone big giant leap in the direction that they want to go but most people end up wanting to purchase more than one property or they might want to build a granny flat on that property and so then i know you guys do annual checkups as well and next step so with the second property people can then go and do it themselves or i know a lot of clients actually hire you over and over and over again i’ve seen some clients help get your help to purchase you know four or five properties for their portfolio so there’s definitely the option of then working with pumped on property again but i hope that this gives everyone an outline of what it’s like to work with a buyer’s agent and so if you are on the fence if you’re thinking about whether to do it yourself or whether to work with a buyer’s agent you can really see the process see how they help you and what they do and that this will help you decide on whether this is right for you and you want a buyer’s agents help whether you go with pumped on property or someone else that’s completely up to you or if you want to go ahead and do it yourself so if you do want to engage with pumped on property if you do want to get access to that free strategy session get on the phone and talk about where you’re at what your goals are and how you can potentially invest to get there and simon ben and the team over pumped on property are offering you a free strategy session so if you want to get access to that free strategy session go to onproperty com au forward slash session you can learn more about that over there and you can book a time in the calendar that actually suits you

Simon 19:14
yeah so i just wanted to add on to that as well right i don’t want people to think that there’s any expectations from that free strategy session it is really just to share some information talk to an expert and get some ideas about what you could potentially do so we’re not expecting to work with every single person that we work with all’s we want for people is for them to walk away a little bit more educated a little bit more with a bit more understanding of the australian property market so that they don’t make the wrong decisions now if you see a value alignment there and if you see the value in our business we would obviously love to work with some people but at the same time there’s no expectations from that initial strategy session it’s really just to share the knowledge that we have to to use so that you can make the right decisions

Ryan 20:02
yeah and at the same time you guys only work with a limited amount of people as well so you want to find people that are the right fit so you’re working out if it’s the right fit at the same time but yeah it’s great that people then walk away with they can walk away with a strategy they can walk away with their next steps whether they decide to work with you or not they can go out and do it themselves or hire another buyer’s agent if they want it’s completely up to them so yeah again check out that free strategy session you’d be interested at onproperty com au forward slash session thank you so much simon for just walking us through this i think this is going to help a lot of people i wish you the absolute best in your financial freedom journey and until next time stay positive

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