Biz of Property Ep. 4 | Bounce Back

Date

November 13, 2021

With COVID restrictions lifting and international borders reopening once again, the property market is bouncing back to life. We have seen a very resilient property market during COVID, but there are also many mixed signals. To make sense of it all and help plan the next steps in your property journey, today we discuss current market trends and emerging opportunities.

Biz of Property explores all things property and real estate with Brady Yoshia and the Brady Marcs team. New episodes will air fortnightly on Ticker News Fridays at 9:45am, or on-demand via the Ticker and Brady Marcs websites.

Transcript

Mike Loder: COVID-19. Heard it? Well it turns out it’s been a pain for the property market for some time. But how is property managed to keep up and even exceed expectations? Biz of Property starts right now.

ML: Hello, and welcome back to Biz of Property presented by Brady Marcs Buyers Advisory where each week we will dive into the latest news and trends on the property market and answer the questions you need to know for your property journey. And it’s my pleasure to introduce my guests for today. And we’ve got Brady Yoshia and Jordan Parle from Brady Marcs Advisory thank you both for joining me on the show today. Now, before we get started, remember everyone Brady Marcs Buyers Advisory are committed to putting buyers at the center of what they do. Being highly experienced property professionals, they create a bespoke customer experience tailored to each individual’s needs. Whether bidding at auction, negotiating, or full service source and buy, Brady Marcs takes the stress out of finding your perfect property match. And you can of course learn more over at bradymarcs.com.au. And remember, whilst Brady Marcs Buyers Advisory is the presenting sponsor of today’s program, the opinions and statements expressed in the following shows are of course, our own. Alright, let’s get to our topic of discussion for today, and with COVID restrictions, lifting and international borders reopening once again, thank goodness, the property market is bouncing back to life. We have seen a very resilient property market during COVID. But there are also many mixed signals we’ve received. So to make sense of it all and and to help plan our next steps in our journey. Today we discuss current market trends and emerging opportunities that we may expect to see. So Brady, I’ll start with you. Let’s unpack that bounce back to life I mentioned. What trends have you been seeing through the pandemic for buyers and sellers alike?

Brady Yoshia: Very high auction clearance rates, strong growth overall across Australia, lots of off-market opportunities, huge buyer demand, and very low stock levels on-market, and more and more people moving to regional areas for lifestyle changes.

ML: What opportunities does that present? And what are we seeing at the present moment, I suppose.

BY: So the borders are opening, the rental market is bouncing back. With international students coming back in early 2022. There’s going to be higher demand for rental properties in the CBD and surrounding areas. People are traveling for business, more and more Airbnb accommodation is required. A very interesting question that travelers are asking at the moment when booking hotel accommodation is they asking that particular hotel if it was used as a quarantine hotel or not?

ML: Which is very fair, because I suppose there’s a few things to consider when jumping back into into the world now that COVID sort of petering out a little bit but Jordan, I’ll go to you now – what trends have you witnessed in the recent months in relation to what Brady’s just touched on?

Jordan Parle: So we’ve seen a significant trend in the rental market as from our investment clients, there’s been quite a high price drive this time, you know, lockdown last time, I think you’re a little bit scared and apprehensive. Whereas realize now lock downs, you know, they just aren’t the scariest thing in the world. Lots of families have sold recently they looked to upsize. But you know, unfortunately been priced out of the market because stocks so low. They’re really been caught short. And we’ve seen a really big upturn in large family homes, hit the rental market and achieved record prices, really low vacancy rates. It has been a tight market you know, all around Sydney due to lockdown. But with international students returning next year, I think we’ll definitely see you know, those inner city areas around Parramatta, those rentals really, you know, be leased out quite quickly. With tourists returning from overseas next year to short term rentals should increase as well.

ML: Right. It isn’t always easy getting into the market. So what are the challenges that you’re seeing for clients at the moment? What are some of the the obstacles I suppose that we need to overcome when getting involved?

BY: So the markets are moving at a very fast pace, shorter campaigns, auction dates and bring what being brought forward. Traditionally, you would see an auction campaign run for about four to six weeks. What we’re currently seeing is around two to three weeks. We recently bought for a gorgeous young couple, first home buyers, who were extremely frustrated, disillusioned, never thought that’d be able to buy a property. However, within a few weeks coming on board with us, we found them a lovely apartment in an area which they hadn’t explored. One of the main things they wanted to do was to avoid going to auction and we managed to secure that property prior to auction, which was a fabulous outcome for them.

ML: Fantastic. So I suppose my next question is what are some words of wisdom you could provide people who may be worried about trying to overcome those challenges? And from that story, you’ve had a success, but how do we get to that point and what’s some advice you give.

BY: Do your homework, do your research, don’t hesitate move as quickly as possible. And of course, engage professional help.

ML: Okay, very short and sharp. I like that. Jordan, are there any unique opportunities that you are seeing emerge? At the moment? We’ve obviously seen the pandemic ride that wave, but what are the unique things that people sort of seeing arise out of this one?

JP: I’d say that anything, you know, leading up to Christmas, we’ll probably see a lot of off-market campaigns. You know, there is currently quite a lot of stuff on the market, you know, since we came out of lockdown, you know, there was, especially when we attend open homes, again, there’s been an influx of stock hot the market, but I’ve been chatting with a few vendors, and quite a few selling agents. And, you know, if there is a property that’s, you know, been ready to sell now, they might run off-mighty campaign between now and the end of the year. You know, if it doesn’t sell, then they could launch into a full campaign in the first quarter of next year. So there are definitely some opportunities here and there now from now until Christmas, but they might also not necessarily be easy to access. We’ll see a bit of a lull in real estate, you know, between Christmas and January, there is always a bit of a lull. People go on holiday, Agents will be away. You know, we haven’t really had any holidays for the last 12 months. So I think everybody does need a break, and we’ll probably see real estate resumed back in action about mid January next year.

ML: Jordan, how does that holiday period affect what you guys get up to in terms of when does things come back to life, I suppose is my question early next year?

JP: Yeah, look, I’d say, like everybody, you know, Christmas holidays is quite important. And you know, real estate agents tend to break as well. But I’d say that kind of mid to late January, things will come back to life. And that first call is gonna be very important for the industry next year, it’s going to be interesting to see what happens.

ML: What advice do you have for people looking to make a change in this current property climate? We talked about moving to regional areas and such on a previous episode. But is there anything else that you’ve seen recently.

BY: So there is no one-size-fits-all solution, everybody’s property journey is different. So you’ve got to consider your whole property journey. Understand what your goals are, long term. If possible, buy and sell in the same market. Plan ahead. Be prepared, understand what your limits are. So get your finances in place, and don’t have FOMO. What’s right for one buy is not necessarily right for another buyer. Everybody’s journey is different.

ML: And I imagine that FOMO can lead to people making mistakes if they’re not careful. Jordan, can you just expand a little bit on that as well? And what advice maybe you’ve seen?

JP: Yeah, look, I think we’ve seen a lot of a lot of buyers really just buy property for the sake of buying you know, it’s been quite manic, the last, you know, few months, especially throughout lockdown. So I think people seem to take their time and you know, as Brady said research effectively and ensure that you’re buying the property for the right reasons, and it fits your brief really well.

ML: The advice, being nimble, but not being you know, overzealous, I suppose. Okay, so finally, what I’ve got here is let’s take away let’s do some takeaways from today’s episode, we talked a bit about advice, and I wanted to pinpoint some useful tips for buying a resilient rental property based on what we’ve touched on in the episode. So Brady, can you give us some advice here for people who want that rental gem.

BY: So the property needs to be attractive to multiple demographics; proximity to lifestyle, amenities; location for future grow; look at the condition of the property, see if it needs some work to be done initially, so work out your costs associated with that property; and always be aware of the yields.

ML: Okay, Jordan, can you expand on that as well, in terms of buying a resilient rental property because that’s going to be an important one moving into next year, as we said,

JP: It is, I think, you know, international students are gonna make a big difference next year, once they can return and I think any of those inner city suburbs that have seen that, you know, dramatic decrease in rental prices, they’re gonna be the areas I think in the next two years that will really pick up again, I think around those areas, close to universities and transport is where it’s where there’s gonna be some good buying.

ML: Great ideas in there today. Jordan and Brady, thank you so much for joining me on the Biz of Property program for today and and for unpacking what we can expect to see in the property market moving forward.

BY: Thank you. Great to see you.

ML: Easy done. Alright, that’s it for today’s discussion from the property space. I’d like to thank my guests and to you our audience for joining me today. And don’t forget you can head over to tickeroriginals.co for more chats, tips and updates from property crypto, cybersecurity and gaming and so much more. I’m Mike Loder and I’ll see you again soon. Stay safe out there.

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