The Real Estate Forum Podcast Series 2 Episode 10

In this latest episode of The Real Estate Forum Podcast, we are delighted to welcome a very special guest, Jade Murphy from Eleven Financial, who travelled all the way from the Gold Coast to join us in the studio.

Together, we explore the ever-changing world of real estate and finance, sharing valuable insights, industry experiences, and practical advice for buyers, sellers, investors, and property professionals alike.

This episode features some fascinating real-life stories and lessons from the industry, including:

🔹 The shocking story of a homeowner who had more than $25,000 worth of belongings stolen during an open for inspection.

🔹 How the actions of a poorly performing mortgage broker resulted in the collapse of a $1.7 million property transaction, and what buyers can do to avoid similar situations.

🔹 Current market trends, lending insights, property strategies, and much more.

Whether you're buying your first home, growing your investment portfolio, or working within the property industry, this episode is packed with valuable information and engaging discussion.

A sincere thank you to our valued sponsors for their continued support:

🔥 Adaptive Fire and Electrical
📞 1300 437 917
@adaptivefireandelectrical

💰 Jade Murphy – Eleven Financial
📞 0401 925 507
@ElevenFinancial

🏡 Sharon – Style With Us
📞 0455 023 028
@stylewithuspropertystyling

📸 Craig Holowell Photography
@craigholowellphotography

If you enjoy the podcast, please like, subscribe, and share it with your friends, family, and colleagues. Your support helps us continue bringing you the conversations that matter most in real estate.

Transcript

SPEAKER_00 0:09

Welcome back to the real estate podcast. We are the forum. And we our forum is joined by a third person who is one of our major sponsors, but has flown all the way from sunny Queensland to Friesen, Victoria. Just to join us on this podcast, Joe. Thank you very much.

SPEAKER_03 0:25

Hello, thank you for having me. Rainy Queensland at the moment.

SPEAKER_00 0:29

Bucking down rainy. We, though, you look at Brent at the moment. If you are watching online, or you can see if you if you're listening, I'll explain it to you verbally. So he's got a hoodie on, he's got some pants, and he's repping the graffiti shoes. I'm in like the suit jacket, which I don't normally wear, and then Jade is in a singlet because the jacket doesn't match her sleeveless singlet. Um doesn't match her outfit. So yeah.

SPEAKER_01 0:57

Casual Fridays for me. Not in the office today. You know what? That's right. So we record this in uh HD. In an uh, what's it called an office? And I reckon we've seen people here maybe twice. Yeah, we've recorded about 20, 30 episodes. So um a little bit of work from home set up here, I think.

SPEAKER_00 1:17

Massive news coming in from the Brent side of things. Tell us what's going on there, man.

SPEAKER_01 1:23

Um, yeah, so Kyler and I are having a baby, so pretty exciting. Exciting. Yeah, so um, yeah, I think it's it's massive, it's a massive change, and people say to me, Am I excited? And I am excited, like, but it's so far away. I try and focus on the present, and as boring as that sounds, it's gonna be exciting when it comes. But um, yeah, I'm just trying to stay where I'm at now and and yeah, take that. You're gonna be a dad. Yeah, pretty cool.

SPEAKER_03 1:51

You'll be a good dad.

SPEAKER_01 1:52

Am I ready? Am I ready to be a dad? Yeah, you are. Someone said to me the other day, they're like, they've been a part of my life for someone's like, yeah, I just can't see you being a dad. And I'm like, I don't know if that's a compliment or not.

SPEAKER_03 2:02

I think you'd be a good dad.

SPEAKER_01 2:04

And then someone else said Danny would come into the office the other day and he's like, Oh, one of our mates here we used to train with is like, he said, Oh, it's good to see Brent's actually lasted that long with a with a lady. And I'm like, Oh, copper wax that are there from center here. So, yeah, very exciting, man.

SPEAKER_00 2:19

No, it is so good. I think you will be a good dad. Um, so Kyla is very energetic like you. I think your kid will have like high degrees of ADHD. That household is gonna be crazy, but it would be a lot of fun, I reckon, your household. Yeah, I reckon you guys will be fantastic parents, and whatever it is, whether it's a boy or a girl, I reckon they will have the most fun time growing up with you and Kyla as parents.

SPEAKER_01 2:42

No, I appreciate that so much, man. It's um yeah, we try and have fun with everything we do, like work-wise as well.

SPEAKER_02 2:47

So I want my kid to have the a fun life, and yeah, that's that's life's pretty short. I think we can tee up our kids to get together in 18 years. No, I want to have a boy, man. Oh, well, we can have a gay. Love is love, yeah, exactly. So that's a bob cutter.

SPEAKER_00 3:01

I was um I was chatting to a guy from uh bobcatter obsession. Tell me you're not over that.

SPEAKER_02 3:08

Nah, well, I was until then.

SPEAKER_00 3:11

I was I caught up with a guy from Tirelgan, an agent from Tirelgan, and he he gave me a ride back from Morwell, long story. Anyway, um, chatting about his relationship, and I was like, oh, so hey, what is your partner? What did she think of all this? And he just looked at me and said, He? I'm like, Oh, I'm so sorry. No, it was Keith Williams, like a just a random independent guy.

SPEAKER_01 3:31

Is his name Jake? Yes, yeah, he follows me on socials. He's actually really nice. Jake got him, yeah. Great guy, doing really well.

SPEAKER_00 3:36

Yeah, anyway. So he wanted to catch up and just like ask a bit of questions about um his um his business and like growing the team there at Keith Williams because he's they want to expand and KPIs and that kind of jazz. Um, and I was like, yeah, sure, man, no worries. I'll um I'll catch up with you as long as you give me a ride back from Morwell to Packham, which is over an hour. Crazy thing is though, I don't know if I probably should say that on air, but I'm gonna do it anyway. I don't think Jack listens. The standard, the average down there for estate agents is a 35% split with the office.

SPEAKER_01 4:08

With the office. Wow, get area specialists out there.

SPEAKER_00 4:12

Well, they've just started coming out there, but when I was like, dude, 35%, like he's doing 100 sales a year, so he's writing one million dollars or close to it. 35% split, and he's been there for 10 years. Yeah, wow. I'm like, man, what are you doing? Like, that's crazy. He goes, all right, everyone in Chiralgan, is it 35% split? I'm like, uh-uh, uh-uh, no, wait, no, that is not happening.

SPEAKER_03 4:36

No, why wouldn't you just start your own brand down there and be independent?

SPEAKER_00 4:40

So this is what I said, and I was like, it's like you are if you are a snail on a mosaic and that mosaic and you lived your entire life this snail on this mosaic, and the mosaic is made up of squares and triangles, that's all you ever know.

SPEAKER_01 4:53

Yeah, true.

SPEAKER_00 4:53

You don't know about circles, right? That's true. So I said, this is a circle, man. This is your circle, is that agents are actually doing 50% splits, 60% splits, 70% splits. No one is doing my associates are just starting out now as agents, are on 40%. Yeah, he's been there for 10 years. Couldn't believe it. And he's like, Oh, yeah, I just thought it was a norm.

SPEAKER_01 5:12

Yeah, crazy. I thought I was getting rinsed, but I have I so we're we we're up to like 80 at the moment. You're on 80% split. Yeah. 80% split. Yeah. And you thought you're getting rinsed. No, no, there's there's different tiers to it, because we're at the end of the financial year, the last few months we've been on the higher end.

SPEAKER_00 5:29

Oh, so if you what do you start off at your 50%? Okay, then you go to 60, then you go to 70 and then you're 80. 10% increase.

SPEAKER_01 5:34

As you hit target. Yeah, but when you do 80, like like 50-50 is like you'd you're making okay money, but when you hit 80, um, it's pretty very good. So what do you have to hit to make 80? See uh 800.

SPEAKER_00 5:46

Really? That's not bad. Yeah. Um, what's you're paying for your PA? One. You pay for that? Yep. Yeah, okay.

unknown 5:53

Yeah.

SPEAKER_01 5:53

Oh, and then no, I think cutter. Yeah, well, I don't pay for cutter, so someone does. It just rocks up for free.

SPEAKER_03 6:00

You hope someone's paying you.

SPEAKER_00 6:01

Just don't say anything. Yeah, there's like a miscalculation in the books, but don't say anything. Yeah. As soon as you say he's paying for this guy, oh well, that was meant to be you. Yeah, yeah, 100%. I'm on 60%, but my PAs are paid for.

SPEAKER_01 6:13

Yeah, but you have ownership as well, too.

SPEAKER_00 6:15

I didn't.

SPEAKER_01 6:15

But you do now?

SPEAKER_00 6:16

I do I do now, but I was on I was on 50%, my PAs are paid for. Got to 60% before ownership, um, and my PAs were paid for. Umership.

SPEAKER_01 6:27

So uh bonuses you pay for? I pay for bonuses, yeah. So then they pay wages? Yep. That's awesome. And how many you got? Five.

SPEAKER_00 6:34

Four.

SPEAKER_01 6:35

Four PA.

SPEAKER_00 6:35

That's good. You're a good wicket. It's really good. Well, I think everyone's a good wicket. Um like 80% is good. Everyone but Jake. Yeah. Everyone's in a good wicket but Tarogan agents.

SPEAKER_01 6:46

He's actually a nice guy. Like, uh the reason I know him because he um interacts with social media and he's starting to pop off as well. It's amazing social media. This guy's from Tarogan, never met him in my life. He says he knows the Tarogan agent. I'm like, I know a triagon agent, and then it's the same person. Like social media is crazy. It's powerful. Yeah, yeah. Um, I I'm fed up with I'm fed up with brokers too. Not Jade, but for some stories.

SPEAKER_00 7:06

Let's just talk about okay. So we've got a bit to cover, obviously, wash up from the budget and how it's impacted everything going on. Um, but want to talk about all right, go to your story first.

SPEAKER_01 7:14

Um, no, I just like do you get it when you know someone comes and I was speaking to Jade on the way here about when a buyer actually commits to an offer and they say, Oh, you know, we spoke to our broker, we're all good to go. And then two weeks down the track, extension. Yeah. And then third week down the track, oh, everything's good, we just need another week. So you're at the four-week mark. And then today on the way here, it's been four weeks, and then it's like, can I get an extension until the ninth of June?

SPEAKER_00 7:39

So two weeks.

SPEAKER_01 7:40

Yeah, yeah, on top of the four. And um, I was nice to him, I was a little bit harsh. Joe would probably be able to come back. Was he nice?

SPEAKER_03 7:47

He was firm. He was firm.

SPEAKER_01 7:49

Um, I got what I wanted, I got my own way. So it's understandable though. Yeah, but at the end of the day, I'm thinking like these clients who have sold their house, they've got commitments elsewhere. We're now going into six weeks, and I'm just like, get your shit sorted. If your broker's shit, they're gonna cost deals. Another one this week, it was subject to finance. We organized bridging finance at the start. Then their broker said to them, no, no, no, don't do bridging finance. We'll do subject to sale. And they're like, Yeah, all right, do that. Didn't bother to ask the agent or the vendor. So we get to the approval date. He's like, no, we're subject to sale now. I said, not happening. Like we're four weeks in. Now you want to add subject to sale. Your house is worth too much, and it's like probably very hard to sell. Um, and that broker cost them the whole deal. Another deal fell over. Um, and I'm like, that's $1.7 million worth of property sales. And because his brokers advised them that they they can be subject to sale but haven't liaised with us. That buyers lost the house and sacked his broker because his broker's an idiot. Um, so I think it pays. And this isn't a plug for Jade, but it's gonna sound like one. Get yourself get yourself a good broker because they're gonna cost you so much money, dude. And like if you're emotionally invested, which these people were for this property, and now like taking it off the market, the owner's gonna stay there, which is good because he wanted to, but at the end of the day, they're missing out on that house because they didn't have the right professional in their corner. And um, yeah, what should you take advice from as well?

SPEAKER_03 9:20

Do you and I I think as an agent, like you would attest to this that there's many times where you've called me and said, This has fallen over. I need you to help resuscitate a deal. And sometimes I can't get it done, but you would rather hear today, this can't be done, move on, rather than grant another two-week extension, lose another two weeks of two weeks of your vendors time when you could sell it to someone else.

SPEAKER_01 9:45

Yeah, and we that's all we need. And I said to this guy the other day, I said, dude, like he's all he kept on saying to me, I'm not wasting time, I'm not wasting time. I said, Mark, that's fair enough. Like you can tell me that every day of the week, but it's I can't tell my client that he's not wasting our time. So let's just go ahead. Like, I need definitive answers. Like, it's it's yes, it's gonna go ahead, or no, it's not. Because correct me if I'm wrong, but if you're a broker, you know if it's gonna turn to shit or if it's gonna work.

SPEAKER_03 10:10

You know if it's a good deal or if it's a hairy deal.

SPEAKER_00 10:13

Yeah.

SPEAKER_03 10:14

From the first conversation.

SPEAKER_00 10:15

But you'd like to know that a dicey, like, oh it's 50-50 chance. And you tell the owners, look, it's a gamble. We could look at it if we've got nothing else. But then you're having that conversation with the owner.

SPEAKER_01 10:25

And it can the pressure that we have, it's like every day the the owners on our back update, update, update. I'm like, I actually can't give you an update, like because the extension's been granted, and I can't call this broker every day. Because the broker will tell me what I want to hear. I had another one that went for eight weeks, man. And like, do you experience it a lot? Yeah. And how do you deal with it with an owner?

SPEAKER_00 10:46

I just say it's no, I just after after four weeks, I'm saying nah, let's just move on. Yeah, so just cut it, yeah. Just cut the ties, move on. If you they like it so much, they can go unconditional.

SPEAKER_01 10:54

Yeah, that's what while I said that to him on the way. I said just go unconditional, get your finance approved before settlement. Which, if you're so confident with it, put your money where your mouth is.

SPEAKER_00 11:02

Let's talk about the budget because I think uh obviously everyone knows what's happened with the budget, like negative gearing, capital gains tax, Brent, you got your head around it. Yeah, yeah, yeah. The what's the impact been for you?

SPEAKER_01 11:17

Um, so with it, well, I'll go into negative gearing first. How much percent of houses directly are negatively geared?

SPEAKER_00 11:23

Uh so Ray White stats, 48%.

SPEAKER_01 11:25

So we had a different start. I think it was either 13 or 21%. Uh I don't have the exact start on top of my head, Australia-wide. Yep. Um, and that's been grandfathered, right? So that's just going to cut off investors straight away. Yeah. Or most investors, yeah. Unless you've got a positively geared asset, right? Um, so I think as she's taking investors out the market, yeah. I'm lucky I deal in a market that maybe we deal with one to two out of ten property sales that is to an investor. So it hasn't affected that too much. Um, a lot of first home buyers are there as well. Um and then you've got when they take investors out of the market, uh, rents are obviously going to increase um for new investors. Maybe in a year or two years' time, we're gonna start seeing the rents increase. Um, and they're trying to target that for first home buyers to get into the market. But if their rents are increasing and you're a first home buyer, you're gonna be paying more for rent. And it's ultimately gonna make it harder to save for your next asset, right? Or your first asset. That that's my opinion on it.

SPEAKER_00 12:23

Yeah, so the stats that I've had, so um we in our area investors make up about 20%, 22% of the marketplace. The uh two weeks since the budget was announced, we have had 105 open for inspections. So that's your midweeks, your Saturdays, Sundays open for inspections, 105 open for inspections. Um sorry, 55 open for inspections, 105 buyers that have attended those inspections.

SPEAKER_01 12:51

So it's that 1.8, 1.9.

SPEAKER_00 12:53

Yeah, so sometimes you get none, sometimes you get five, whatever. Um so 55 open for inspections, 105 buys in the last two weeks of those, four were investors.

SPEAKER_03 13:04

Wow.

SPEAKER_00 13:05

Yeah, four were investors. So that is a stark drop away from the 20%, which you're saying one and what maybe one 10, 2 and 10. Yeah, yeah, yeah. That's we would have expected to see if we've got 105 people coming through, at least 20 of those being investors. We've had four.

SPEAKER_03 13:26

Yeah, that's interesting.

SPEAKER_01 13:27

But your market is was heavily dominated by investors, or what would you say?

SPEAKER_00 13:31

No, it's still very first home buyer. I feel like a lot of the the outer areas, whether it's Sydney, Brisbane, Melbourne, um, are first home buyers and investors. But uh they're gone. They're gone. So what I'm actually doing, I have no idea how that's gonna work. Um, me and my team were flying to Sydney on Sunday. Yep. We have booked back-to-back to back to back to back meetings with a lot of buyers' agents, with investors who are looking to purchase in Metro Melbourne. Um, we're gonna try and sell our stock to them to see if we can get a sale done or over the line, but at the very least, find out what is going on with these investors that were just so this Jake guy again from Churalgum, he goes, Gav, for the eight 18 months, I'll list a property, I put it in my WhatsApp chat to buy as agents, five hours later, it was sold. Yeah, it's crazy, man. And he goes, now nothing, nothing. So where have all these people gone? Is it is it simply because negatively geared properties is now like you can't do it, and so it's turned off everyone? Is that what's happened?

SPEAKER_03 14:31

I don't know. In in my opinion, I think that there's been a lot of noise, right? And I think that people stop or sometimes pause when there's lots of noise and uncertainty. And all we hear over and over in the news is this is going to be bad for investors, which it's not good. Basically, anyone that wants to get ahead is getting pushed back in the budget that's been announced. But I think like anything, it will be accepted in a couple of weeks to, you know, a month's a couple of months' time, it'll be accepted. And those people that are wanting to still grow wealth through property and build wealth through property will realize that it's just something that has to be accepted, sort of thing. It's definitely going to be a problem that their borrowing capacity is going to reduce because we can't use negative gearing to tax right. Yeah, to to boost that borrowing capacity, and that drops the figures by about 20%. So it's a substantial reduction. Um but yeah, I don't know. I I think that it's a pause.

SPEAKER_01 15:43

We had we had a client, one of our advocates from Sydney, she's bought about seven office. She had a client overnight drop two, two hundred thousand dollars in borrowing capacity um because of negative hearing.

SPEAKER_00 15:56

Yeah, wow. So I think that's um that's powerful stuff. We are gonna go to a small break. We'll be back um with a few more things right after this.

SPEAKER_01 16:03

All right, we're back and we've got our sponsors as always. We have Sharon from Style with Us. And I get so nervous saying that because I I don't want to stuff it up because it's such a I sometimes I say styled with us, but it is style with us and she's amazing. Um her socials are popping off too. I've seen a heap of agents jump on there as well, which is awesome. Uh, we have Douglas from Adaptive Fire and Electrical. Did he do your stuff? No, it was not for me, it's for a client, but the client hasn't got back to me. Oh wow. So poor Douglas will get him some uh business soon. And we've got a new sponsor, Craig Hollowell Photography. If you need photos. Yeah, if you need photos done. Um, he works with some of Ray White's best agents. You know, he's a really, really good agent. Good photographer, and uh, I'm all right, but not compared to you boys. Uh, and then we have obviously the lovely Jade Murphy from 11 Financial. And I will say it again: get a good broker because they'll piss an agent off like me, or they'll make your life really good and set you up financially as well. So, yeah, that's our sponsors.

SPEAKER_00 17:04

I might just get a dodgy broker just so I can piss you off more. Yeah, one of my favorite pastimes, actually.

SPEAKER_01 17:09

Yeah, buy a house off me and I'll hunt you down.

SPEAKER_00 17:12

You're just like one of those guys where you can poke and prod and then he just starts snapping that.

SPEAKER_01 17:17

I made oh god, dude, this actually is a really segue to a funny story. I had a broker the other day, this finance was for like eight weeks, and I'm like, dude, just like let's park it, move on with our lives. And I'm like, just when did you submit this application? Because it was four weeks into it, and he's like, the 23rd. And I said, Oh, so three days ago. And he's like, Yeah, and I said, Why? And he's like, Oh, what's going on? He lost his shit. He's like, Oh, F and find out where you live, I'll come down from F and Sydney and kick your head in rah-rah. And I'm just like, for one, you're not gonna do anything, and for two, don't talk to people like that because it makes you look like a dickhead. All right, this the conversation ended, and then he's apologizing to me and saying, Oh, you know, like my wife's sick and stuff like that. Like, dude, you don't throw your wife under the bus and say she's sick. Like, you don't just have a goal at people threatening that you're gonna kick their head in from Sydney.

SPEAKER_03 18:11

That's so shame.

SPEAKER_01 18:12

Yeah, he was a psycho. But finance got approved. I cancelled the deal four weeks later, paid the deposit.

SPEAKER_00 18:17

So nice work, man. I want to talk a bit about security. Uh, I've always kind of thought, uh, so when I was first starting out, right? So my when I was doing rentals, this is about 14 years ago, um, I had a an open for inspection, popped off, 40 odd groups come through. Um, then I found out a couple of days later that during the inspection, um, an iPod and a wedding ring were stolen. And I was like, oh man, like I felt so bad, I felt so guilty. Um, so then from then on, I'm like, well, I'm not gonna check people in unless I know them, I'm gonna ask for ID. Um, but the amount of times that I will attend an open for inspection, and it's just one agent is chilling out the front, just taking names, like head on in or getting an ID, but not even really looking at it, just like checking the address to see where they live, find out where their next business is coming from. Um, and then literally they'll stand at the front of the house while the the buyer walks through and just does their own thing. And I've always thought that was bizarre. Like, if I was homeless or I needed someone to steal money, that's what I'd do. So then anyway, a a client of a client of mine just the other day had $25,000 stolen from them and opened for inspection.

SPEAKER_03 19:26

That's insane.

SPEAKER_02 19:26

In Pacadome?

SPEAKER_01 19:28

In Packy. God, that the reach for living in Packadel. Yeah. 25 grand worth of stuff.

SPEAKER_00 19:35

Just gone, just disappeared. And the the thing is, the insurance doesn't cover it. So they're contracted. Really? Because it's the same like with a scam. Like if you transfer money to another BSB an account, that's you putting money into so they've let this person into their house, the insurance doesn't cover it.

SPEAKER_03 19:52

It's like if you leave your car, um, your keys in the car and the car gets stolen.

SPEAKER_00 19:56

Yep, yep. But in this sense, it's like inviting the the buyer into, sorry, the person that steals your car into your car, yeah, gives them the keys and says, see, so the insurance doesn't cover it. I don't know if the the the estate agent's insurance covers it either. I'm not so sure what what that is. But either way, she's 25 grand out of pocket now for at least for the short term, maybe longer.

SPEAKER_03 20:17

Do you guys have conversations with your vendors before open for inspections and say we recommend that you put valuables away?

SPEAKER_00 20:25

Yes, so we do, but then if you put like, for example, jewelry, like Jade, where are you putting your jewelry? If you're putting it away, probably top drawer of your in a safe. In a safe. Who has a safe in the top drawer of like your bedside cabinet is probably where most people put stuff up? Like if you have knickknacks, iPhones, whatever, top drawer, like you're putting it away. But and on top of this, like we I like to have two people at my inspections, one checking in, I'll be in like in the house selling. Um, but if someone goes into a bedroom, I'm not following them in around the house the whole time.

SPEAKER_01 20:58

Yeah, that's why my opens are safe. I only get about one to two buyers to come through. So process of elimination pretty good. Um low market means high grade security. But I think like when I first started, it was very high in uh checking the IDs. But if I'm being completely honest, I've dropped that off heaps. Yeah, but a lot of buyers actually come to me and say, Do you need an ID? Yeah. Um, so it's obviously around the market, people are still doing it. So I'm gonna start doing it more thoroughly now based on that. Uh is the client angry at the agent? Dunno, possibly. I'll be back.

SPEAKER_00 21:29

You can't be not so sure.

SPEAKER_01 21:30

You know, some people will be. Everyone, like everyone has a great littlest excuse to be mad on an agent.

SPEAKER_00 21:35

Bang, I hate them. I was uh I did a video about actually the budget on my socials, and I copped it. I copped it. I had jerk, flog, real estate idiot. I had a four letter word starting with C, has a U, has a T. It was my favorite one. It was cute. I thought that was pretty good. That was a good joke. You like that one?

SPEAKER_03 21:57

Yeah, people love to rip in on social media. I like it.

SPEAKER_01 22:01

I had the best one the other day. Someone's like, Did you get AI to write this script? And I'm like, If I if I did get AI, like thanks for the compliment, it would probably be a little bit more well structured. Articulate. Yeah. And then he shut up, and you know, that got more likes than he's. So I'm like, oh, that's good. Yeah, that's awesome. Um, and the one thing I want to talk about a little bit as well. You you say you've got like 1.8 or two, so I call it two people coming through your opens. Is that affecting the selling prices? Have you seen the market drop back any percentages? Yeah.

SPEAKER_00 22:30

Five. I wouldn't say five, but I'd probably say it's on the way to it. Yeah. Yeah. I don't think we have swings of five percent drops. Like I do think that there is, I think there is a baseline price for the market. Um, and then people will pay overs sometimes, and then people assume that that's the market, but really the the the market was probably something a little bit less than that. So when it does drop away a little bit, people go, oh, it's 10% drop or whatever from this overinflated price to what it is now. But really, I think the market's probably the true market somewhere in between it. Yeah, so I don't think the falls and rises are necessarily that great out here at least. But yeah, I definitely feel like this dropped a bit, Brent.

SPEAKER_01 23:10

Did you say? Yeah, I I agree with you as well. And it's every market is so different. Like you look at the Melbourne stats. I think I looked the other day, I think it was 5% growth since 2020. I could be wrong there, but it was somewhere like that. But did you call me and tell me how much my property is growing the other day? Or was that something?

SPEAKER_03 23:27

No, that was me.

SPEAKER_01 23:27

Why why did you tell me that? Why did I why I don't know?

SPEAKER_03 23:30

Um because when we were talking about getting money out of it, getting money out of it. And so I just ran a quick valuation and it increased quite a lot.

SPEAKER_01 23:38

And that's what that's what made me think is like you see the Melbourne market as a whole, five percent over six years, call it. Um, then some suburbs like 16% in since February last year. Like it's just about like I don't know, I just bought a house that I liked in a good like a location I like. So I think sometimes it's luck.

SPEAKER_03 23:56

It's markets within a market, right?

SPEAKER_00 23:58

Oh yeah, for sure. So again, go back to this chural one. So for people listening, don't want to chural is like way out in the country um in Gippsland. So the the sub $500,000 properties have gone up in the space of a couple of years by like 35-40 percent. Crazy. But then the properties in the same town that are above 700 have barely moved. So all these bottom end properties have just roared in price, and then the the people in the nicer homes in the same town are like great, I can see here that Tiralgan has gone up 30%, 35% in two years. That means mine's gone up, but it actually hasn't. So you're right, it's a market within a market sometimes, Jade.

SPEAKER_03 24:38

Yeah, 100%.

SPEAKER_01 24:39

And like buy buy where a buyer advocate's buying. That is great advice. They come to a market, Cranberis, for example, they inflated that market in six months by like crazy Frankston Seaford, um, Frankston South as well.

SPEAKER_03 24:53

Look at Ballarat.

SPEAKER_01 24:54

Yeah, Ballarat, yep. Buyer advocates literally get heaps of people to buy, they don't care because it's not their money, and then that market just jumps up to the next tier.

SPEAKER_00 25:01

So I would disagree vehemently with what you just said though. Okay. I would sell where the buyers agents are buying because what for Cranberne East, for example, I feel like that's the kind of market that did become inflated. Yeah. So if you are now trying to sell in Cranberne East, you've got this expectation, well, this is what sold three weeks ago, four weeks ago. You're not getting that now, are you? Yeah, 100%. So I think you sell where the buyers' agents are going because they all just seem to like congregate into the same places.

SPEAKER_01 25:27

Yeah, yeah, 100%. I do know what uh like blows my mind a little bit as well. I had a client this week was interested in this house and wanted to buy it. And following you up, following him up, he's like, Oh, it's in a potential flood area or like quite north in a new development, right? And I said, No worries, he was doing his due diligence. And I said, uh, what due diligence are you doing? Because I might be able to cut through the fat and just give you the answer that you want. It's like, I want to know what the home insurance is. I'm like, easy. Call my client, what's your home insurance? Sends me the certificate of what his insurance is. It was like maybe a thousand bucks for a $1.1 million dollar home. That's cheap, that's standard, right? Send it to him, said mate, there you go, standard insurance. Crickets, like, dude, like if you're gonna give me a problem to what you're not gonna buy, I'll give you a solution. Just say, Brent, I'm not interested. Yeah, I don't have to bother my client or waste my time too.

SPEAKER_00 26:19

So then what do you do?

SPEAKER_01 26:20

Boy, he messaged me yesterday saying I need to do further research. I will come back to you, I need to see the house again. And then I spoke to Dash, another agent on the phone, and he spoke about the same client, and he said he's coming back tomorrow to be open. So and he said he's gonna lowball me. So he actually said that. Yeah, I'm very good friends with Dash, this other agent. So yeah, cool. Oh good, good, good. Interesting. Um, but yeah, I don't know. Some buyers just come out, come up with some crazy stuff. A lot of people are putting contracts section two to twos through Chat GPT too. Yes, there's a lot of that, and getting chat GP to chat GPT to negotiate for them. Uh bro, this is gonna make you laugh. So Kyla's house, yeah. What is it? It's built 2021. Yeah, we had an offer, we had an offer come in subject to all asbestos being removed from the property. I literally like Natalie come in like hysterically laughing. I'm like, dude, it's 2021, there's gonna be no asbestos. I said to the buyer in person, I'm like, dude, like there's no asbestos here. It's like, yeah, yeah, I just need it as a condition. And um, I felt I felt I just got an invitation.

SPEAKER_00 27:19

Is that a chat GPT thing? Because I've had that a few contracts too, like um, all asbestos removed. I'm like, what are you talking about, man? I'm like, well, whatever, I'll put it in. Like, there's no if that's what the hill that you want to die on is fine. That's I'm okay with that.

SPEAKER_01 27:30

I had asbestos removed from my house on Wednesday, 400 bucks. Like the whole bathroom, 400 to get it removed. Why'd you get it removed? It's actually a good building. I've demolished it. So, but um, yeah, it's not that expensive anyway.

SPEAKER_00 27:42

Are you seeing that, Jay's? Like you responded.

SPEAKER_03 27:45

I've never seen that.

SPEAKER_00 27:46

No, no, like the chat GPT contract's been reviewed at that kind of jazz.

SPEAKER_03 27:50

Yeah, I've got a lot of clients that will say, we're running the section 32 through Chat GPT before we put in an offer, and I'll always say, I recommend getting a conveyancer to go through it if you're wanting to do due due diligence.

SPEAKER_01 28:02

They're probably doing it now too.

SPEAKER_03 28:03

I get yeah, maybe I get a lot of clients that will ask questions about finance and they'll say, Chat GPT told me this, or and Chat GPT isn't always correct, right?

SPEAKER_04 28:16

Oh yeah.

SPEAKER_03 28:18

Um, so yeah, I it's such a great tool, but I think when we have consumers becoming so reliant on it being an accurate source of information, it definitely makes our job a little bit harder.

SPEAKER_00 28:29

Yeah. Can I say something as it also as a word of advice for agents that are listening out there at the moment, if you take anything out of this podcast, um the amount of call-ins I get now from people using Chat GPT to determine which agent should go where, if you you should be, if you're an agent, update your bio in your own website, the company website, realestate.com, domain.com, and find something that sets you out as a number one agent for a certain thing. Because if you don't have like top agent in your in your bio or number one agent for this or like best agent for that, then you are gonna get left out. So I've actually instructed the guys at work to have whether it be the best agent in the Heritage Springs estate of Packenham, um, or it might be like number one agent for days on market kind of thing. Because when people search the keywords into Chat GPT, all it's doing is just searching through these pre-published articles and and and bios. And so our agents at the moment are getting heaps of call-ins because simply their write-ups have uh manipulated the system.

SPEAKER_01 29:38

Yeah, that's awesome. I'm actually going to put my bio through ChatGPT and say, create words in there to make it make you recommend me to things as well. And another thing about chat GPT.

SPEAKER_00 29:48

I'm gonna look up you right now. So what so are you Cranbern?

SPEAKER_01 29:50

Yeah.

SPEAKER_00 29:51

I'm gonna look up chat. You keep talking, I'm gonna type this.

SPEAKER_01 29:53

I wouldn't come up in Crambern. If you've done Lang Lang or somewhere, it would I'd probably come up. But the one thing about ChatGPT too, like if you have a subscription, go into your profile. And Gab, if you haven't done this, do this as well. Go on your icon and set up your ChatGPT bot so it knows you. So you can do uh Gavin Steinle, real estate agent, and put all what you're about, and then when they're typing responses back to you, they know who you are, they know you're an agent as well, and you can put all your preferences in there as well, like uh add emojis, don't add emojis, make it more professional, make it more um charismatic and stuff like that. I done it the other day, and now it's just like flows so well. Um, and if you're not like AI, I I use it every day, like probably 20 to 30 times a day, I reckon. But I don't copy and paste the messages because when you do like that double hyphen, yeah, I just read it. I'm like, man, like that's got no like uh that doesn't mean anything because you just credibility. Credibility, yeah. Um, and I write in there, make it sound like a person, not like an AI bot as well.

SPEAKER_03 30:54

I've started using Claude. I'm gonna start using Claude.

SPEAKER_00 30:56

Yeah, cool. I've heard some good things about Claude. Top performing agents in Cranberne, Paul Ringary, team Anita and Harpreet. Yeah, maybe Darren Saxon, yeah, Joe Mooney, Matt DeWan.

SPEAKER_01 31:11

Yeah, yeah.

SPEAKER_00 31:12

So it's it's funny though, the the some of the articles that it's referencing is Rate My Agent, YPA Estate Agents, Mooney and Co estate agents. So like, and it it's the it's it's literally just talking about agents that rank themselves as the number one agent. So ChatGP, or this is um Gemini, um is picking that out. You're not in there.

SPEAKER_01 31:36

Uh yeah, no.

SPEAKER_00 31:37

So I reckon if you change your description, I will, you would be in there. I'm not sure.

SPEAKER_03 31:40

So you would write more even in Cranberne than some of those.

SPEAKER_00 31:43

Some of these guys, yeah, 100% you are.

SPEAKER_01 31:44

Not being artistical, but we I know we sell more houses than everyone there as well. Yeah, we um but it's interesting because if you're a consumer, let me type Lang Lang. That's wrong. Like if you think about it, if so number one for sure, but it would be hard deep, I reckon, from area species. 100% it would be number one. So um they got that wrong there. So if you do officer, does it come up as Gabriel?

SPEAKER_00 32:04

I've just typed Lang Lang or Liz Lang. Best agent to sell on Lang Lang, Shawnee Weeks, Stacy Woodfield, yeah, Matt DeWan, Alex and Scott. So that's no mention of you.

SPEAKER_01 32:15

So that's crazy. So we're the number one buy 17 sales for Langlang in 12 months. Um, so I've definitely got to get on top of that.

SPEAKER_00 32:21

So that's yeah, that's mentally don't become that in Langlang. So if I type in officer, so I've kind of just like hijacked this conversation now. No, that's okay. Um, but I'd I I should be there because I've made sure that the guys, including myself, are updating these bios.

SPEAKER_03 32:34

The pressure's on.

SPEAKER_00 32:35

Well, okay, AI mode. Best agent of selling over, blah blah blah blah. Top performing agents, Gavin Steindel. Liza, Liza Hickey, um Paddy Psing, and then Such and Patel. I've never even heard of him.

SPEAKER_03 32:48

Um I hope he's not listening.

SPEAKER_00 32:50

So then if I go if I go Packenham, there should be some Ray White ones. Anyway, so that that if there's nothing else, like and even from a mortgage broker perspective, like AI is what people are using. You gotta be.

SPEAKER_01 33:03

I'm gonna get on to Claude.

SPEAKER_03 33:05

Yeah, Claude is a whole nother level.

SPEAKER_01 33:08

I feel like I've got so many things in my life I need to do. And same, but I think that's just life.

SPEAKER_00 33:13

Yep, so three agents, uh Gavin Steiner, Ron Marshall Marshall, Callum Donders, three Ray White agents comes up and best agent to sell and pack them.

SPEAKER_01 33:21

Talking about Cullum, um, has he got a third assistant on the way or here? Second. Yeah, so third, sorry, third in the team now. Like three team members. He's just gone from strength to strength. Yeah, yeah. It's actually crazy to see like his from where he was from, where he's come from, no, no disrespect to them, to what they're doing now. Like if you get yourself a good leader like Gav and a good team structure and a big franchise like Ray White, like he's what double, triple his business.

SPEAKER_03 33:46

He actually shared one of my Instagram posts not that long ago. I've never spoken to him before, but did he?

SPEAKER_01 33:51

Yeah, trying to slide into your DMs. You want to come work with me?

SPEAKER_03 33:53

I don't think so.

SPEAKER_01 33:54

Me, nah. Why not? I don't want to work for myself.

SPEAKER_02 33:57

I don't even want to work in general. Nah. That's a lie. You're a dad soon now, man. Yeah, I gotta start working. Yeah, start pulling your finger out. No more hoodies on a Friday. I went for an hour and a half walk this morning. Yeah.

SPEAKER_00 34:10

Um we're gonna um wrap this up shortly. Um, small break. We're coming back with the conspiracy theories.

SPEAKER_02 34:17

Stay tuned.

SPEAKER_00 34:19

We are in the conspiracy theory, as for those watching, you'd think, what the hell are we wearing? Well, these are our tinfoil hats because the segment is tinfoil or truth. We actually need to get like a song for tinfoil of truth. Uh the question is interesting question, especially given the budget two weeks ago, is the Western economy set up to make the rich get richer and the poor get poorer? Fire away affirmative.

SPEAKER_01 34:50

Yes.

SPEAKER_03 34:51

I think yes.

SPEAKER_01 34:52

Okay, well, tell me what.

SPEAKER_02 34:53

Wait, are you the judge or you're gonna I'm gonna say that negative? Okay. So no.

SPEAKER_03 34:58

You're gonna say no.

SPEAKER_02 34:59

Well, we have to have to have some kind of debate. Okay.

SPEAKER_03 35:01

Well, do you know what?

SPEAKER_00 35:02

I think I think and then stop.

SPEAKER_03 35:09

I think therefore I know. No, we're gonna start going down a rabbit hole.

SPEAKER_00 35:13

But that's the idea. This is the whole rabbit holes, more rabbit holes are needed.

SPEAKER_03 35:17

I truly believe that it is set up to make people more and more reliant on the government because the more we rely on the government, the more control they have. And however, the rich will get richer because I I think people with that attitude are just going to keep moving forward anyway.

SPEAKER_00 35:40

I um Brent, you're pretty keen about this one. What's your thoughts?

SPEAKER_01 35:43

Well, you look at negative gearing, and you know, Dean said something who owns O'Brien the other day. He said when I was a young investor, I bought properties and I was able to buy properties based on them being negatively geared and getting the tax benefits and the tax breaks from that. Andrew in our office is 27 years old, has an investment property, it's negatively geared like crazy, and he's gonna continue to get those tax benefits. So, what it actually does, if those people who have had all these properties negatively geared now, it's grandfathered, so it's not gonna affect them at all. But a new investor, like if I'm investing, you know, or someone else is investing, they're not gonna get the tax breaks that the people are who have all these properties as well. I also read a thing yesterday, a company had $73 billion worth of revenue. I think it was BHB Bulletin, um, the mining company, and they had a I think it was six or seven hundred million dollar fuel excise last year. Like that's crazy. Like, why do they need a fuel um discount um when they're making $73 billion in in revenue? You call that say 10-15% profit. That's close to $10 billion worth of profit. Um, and they're getting, you know, tax breaks.

SPEAKER_03 36:46

Yeah, I think a lot of the changes have been uh marketed as we're helping the first home buyer get into the market. But the thing is, it's really not helping the first home buyer get into the market. I can tell you now, on the Gold Coast, a first home buyer, if they're buying by themselves, unless they have a very high income, they're not buying because for an average apartment, you're not getting anything for under $850,000 to $900,000. Um, so people who might be wanting to get into the property market, they want to buy an investment, right? That's sometimes their only option. Now we've taken away negative gear, which further reduces their borrowing capacity. Is it really helping them? The the one thing that well.

SPEAKER_00 37:32

Well, I'm gonna say something because uh you guys have been on the affirmative. Let me speak for the negative. Um, I put this to you then. So, as a first home buyer, never in the history of property have there been so many incentives to help first home buyers get into the market. So, one, you've got all these grants, obviously reductions in stamp duty costs. You've also then got the fact that you can buy into the market now for 2% deposit. Never has it happened before. And and on top of that, we can already see in the last couple of weeks we're talking about the market coming back. So if the government truly is trying to make this a rich get richer, poor get poorer, why would they be deflating the market and helping first home buyers to generate to come into the market?

SPEAKER_03 38:17

But is it helping first home buyers? Because really there isn't much around here, let's say, or around your capital cities that you can get for under that 600,000 mark. So I feel majority of your first home buyers, they're paying stamp duty anyway.

SPEAKER_01 38:33

I think as well that they've the government have got themselves into this position where they need to give these first home buyers all these incentives to be able to actually take take part in a in a property.

SPEAKER_03 38:44

And is it incentive when the incentive has made the property market grow so rapidly?

SPEAKER_00 38:53

Well, that's what I'm saying that because the market is actually now retreating. So there's a very real argument that the government is actually trying to help these first home buyers by putting less stimulus and pushing the brakes on the prices that have been growing out of control for years and years and years to give the first home buyers. I actually feel now that first home buyers or you know the people that need a crack are in the best position now than what they have been in the last five years.

SPEAKER_01 39:21

Well, off topic or different topic. Uh what I was going to say about negative gearing before, it only ever lasts a couple of years based on historical data. In what sense? Like in government changes, they'll just change it back. Well, possibly. Yeah, hopefully. Labor, liberal, sorry.

SPEAKER_00 39:36

Um my but my truth, like my feeling though, is that this this this predicaments worse than economy does help the rich get rich. In fact, so today I went to look at a car wash, right? Sorry, are you agreeing with us now? I am.

SPEAKER_03 39:51

I I was thinking, surely you don't disagree.

SPEAKER_01 39:53

I'm sure you don't fall whatever that is.

SPEAKER_00 39:55

So I went to look at a car wash today um out in Gippsland, and I'm looking at this going, the numbers are really good for this, are really good for this. And I'm thinking, not only will I make money on this, but this is one that I'm not gonna have to fork out money to cover the mortgage for because the numbers are just that good.

SPEAKER_01 40:15

Positively geared?

SPEAKER_00 40:16

Positively geared, like really good cash flow. And then my one of my business partners was like, well, why doesn't everyone do this? The thing is, you're gonna have to have $1.6 to $1.7 million to buy this, right? So the only the people that can buy this are the people that can afford to spend $1.6 to 1.7. So, for example, if I go ahead and buy that, um, I'm one of the very few that can afford that kind of thing. I'm gonna make more money as a result. I can then use that equity to buy more stuff and then so on and so forth. The rich get richer.

SPEAKER_01 40:49

Leverage.

SPEAKER_00 40:50

If if you were someone who was like, cool, I really want to make this work, I want to buy this car wash, no matter how hard you work over the next 12 months, now any jobs you hold, you are not gonna be able to afford to buy this car wash.

SPEAKER_01 41:02

100%.

SPEAKER_00 41:03

How do you come across a car wash for sale? No, I just find random shit. People send me stuff all the time.

SPEAKER_01 41:07

REA commercial?

SPEAKER_00 41:10

I don't even know. Someone called me up and said something about a car wash, jumped on Google and found this car wash. And it's like it's been sitting there and it needs some work. Like it's run down, it's down its luck. But it's the numbers are so good, are so good. But even if you were in, say, the top 50% threshold of earners in this country, you still couldn't earn like one point if you were earning $200,000, right, Jade? Could you afford to buy $1.7 million property with a 30% deposit?

SPEAKER_03 41:42

Yeah.

SPEAKER_00 41:42

You can?

SPEAKER_03 41:43

Yeah.

SPEAKER_00 41:44

Okay, well, forget that. Got no idea what you're doing.

SPEAKER_01 41:46

Because basically bought a a car a block of land with a garden host on there.

SPEAKER_00 41:51

But so the the thing is it needs a minimum 30% deposit. Yeah, and not a lot of people have that. That's yeah, that's a tough thing. So 450. Yeah, 450k. So the rich can afford that, and then as a result, the richer get richer and the the divide will will increase. I actually think yeah, that this this budget we talked about how the the people that will probably suffer the most are the renters, the tenants.

SPEAKER_01 42:12

Personal question, you don't have to answer this. Will you just take cash out of other properties or you've got the funds out of the route?

SPEAKER_00 42:16

Yeah, I'll just take the cash out of the other properties.

SPEAKER_01 42:18

Yeah, that's yeah, I thought that's what we've been talking about. Like we can get up to a huge amount of money with no with no with no documents. Yeah.

SPEAKER_03 42:25

Like no evidence document, no construction documents. You still need documents.

SPEAKER_01 42:29

I just pull my bathroom apart, take a photo, yeah, and then I've renovated that for a million bucks.

SPEAKER_00 42:34

Yeah. Yeah, easy. So anyway, um, that's a conspiracy theory. Look, I think we're gonna wrap this up, guys. Thank you very much for staying to the end of this. If you've got any comments on our conspiracy theory or anything that was spoken about over the last hour and a half, Brent's about to say something.

SPEAKER_01 42:49

I just want to say congratulations to one of our long-term uh supporters, uh, Greg Bryden. I think was it number one auctioneer in Australia? Yeah, or no, I think Australasia, whatever that means. Um, but Australia. So he's Australia and a lot of. I think I think he's gone for that a fair few times and uh not never come out on crack. But um huge trophy. Yeah, Greg's producing. Greg is uh yeah, doing very well. Got a lot of kids coming to the trophy's like the size of the Stanley Cup. Yeah, and he's he's um he's coming in, he's coming on next week. We've got three massive guests next week. Like we got someone from where are they from the parliament or some shit? Yeah, from the parliament.

SPEAKER_00 43:23

Um the shadow housing minister, and then we have uh yeah, exactly. Well when Brent says it sounds from Parliament or shit. From Hensey?

SPEAKER_02 43:32

Yeah, Shadow House.

SPEAKER_03 43:32

I hope you don't introduce him like that.

SPEAKER_02 43:36

Maybe I'll sit down. Here comes a guy from Parliament or some shit.

SPEAKER_01 43:40

And then we have uh we have Frank from um Fresh Start Advisory. He runs a massive uh buy advocate company and he's got over 45 staff there. Uh caught up with him last week and he's got so much knowledge around what buyers are doing and where they're buying. And um sounds like a youth rehab center. Yeah, fresh start. Advisor. Kind of does he. Maybe that's where I met a few of his workers, so um maybe that's where he's got a few got a few of them from. No, they're actually lovely. So yeah, massive, massive week on the 11th of June, I think, somewhere around there. So yes, thanks so much for watching, and um, yeah, we'll see ya next week.

unknown 44:16

Bye.