| Episode: | E139 |
| Show Title: | What it means when your street looks like a game of Monopoly |
| Cast: | Aaron Horne, John McGregor, & Patrick Berry |
| Show Length: | 21 minutes 15 seconds |
Join the team at the Property Pod as they are back in the studio for their latest episode discussing Pat’s recent trip to the Philippines, what it might mean when multiple houses go up for sale on the same street at the same time, & how recent interest rate rises are affecting the Property Market.
EPISODE TRANSCRIPT
Aaron Horne
I was actually walking my dog the other day and it was almost like a game of Monopoly. There were kind of three different properties really close to each other. Like the same street? Yeah, different people selling them, but like two on one side, one on the other. And I was like, What? What does this mean? Like I was trying to analyse what this means for the street.
Aaron Horne
So one side of my brain said, this means someone really bad has moved into the street and everybody wants out. But then the other side of it was like someone else is solved. They’ve got a good price that’s worked out that, Oh, maybe we can pounce on this. Can you talk about this? Because I want to know which side of my brain was right.
[intro]
Aaron Horne
All right, guys, welcome back to the Property Pod, your weekly engagement in real estate here in the Hobart marketplace. I’m your host, Aaron Horn, and it gives me great pleasure to be joined once again by both team members here at four one for Joe McGregor and Patrick Barry. How are we guys?
Patrick Berry
Fantastic. Glad to be back.
Aaron Horne
Glad to be back. Yes. Well, what we wanted to drop was you’ve been away for a little while. You people of the pod might not know, but you have been out of the country, which is pretty rare that it’s been a while since one of us has been out of the country. But yeah, you’ve been out about.
Patrick Berry
The first to be brave enough to travel overseas, but.
John McGregor
And the same country you.
Patrick Berry
Did, which is even weirder.
Aaron Horne
Actually very, very true. I’ve always hit us with your Philippines stories.
Patrick Berry
Well, for people that don’t know, we actually have four employees in the Philippines and myself in Abu actually headed over to do some training and some team bonding with them. So it’s been a great experience.
Aaron Horne
Yeah, no, look, since you’ve come back, it’s been amazing. Just kind of interacting with the crew from the Philippines who have been kind of saying like, Oh, we had the best time in our Yeah, can you run us through kind of the ins and outs of, of the whole event and, and like the whole shebang basically.
Patrick Berry
Yeah, sure. So we like I said, we have four employees in the Philippines, too, that work in our rental team and two that work in our marketing and you know, photography team aspect side of things. Yeah. And I guess what we wanted to do is really just head over and spend some time with them and you know, do a bit of training and get to know them a little bit better so that they felt a little bit more part of our team here in our office.
Aaron Horne
Yes, for sure.
Patrick Berry
So, yeah, I mean, I, we took the plunge and headed over to CLOC, which is sort of just north of Manilla. Yep. That’s where their offices are, where we hire space for them to work out of. And yeah, had four great days just sitting there going through different training. The opportunity and learning new things about each other and really having fun, I guess.
Patrick Berry
Trying to understand the differences between the Philippines and Australia. Yeah, the biggest thing we probably learnt is the language.
Aaron Horne
Okay, I love this. I love this idea that you told me when you got back of whenever we’d use slang terms, when kind of just chatting with them via you know, teams or any of the things would say slang term and they’d be going and rather than checking what it is, they’d be Google searching like Yeah.
Patrick Berry
To find out what.
John McGregor
What does the how it.
Aaron Horne
Is. What does Culber mean?
Patrick Berry
Like you smashed it today, guys. What do we break it?
Patrick Berry
Yeah.
Patrick Berry
Where we would make it, you know.
Patrick Berry
Great job. Yeah, yeah, exactly.
Patrick Berry
But then what? Abby and I also learnt when we were talking about the, you know, how we communicate in Australia, it’s actually quite a lazy language. Yeah, I was trying to explain to our team that we will take any opportunity to shorten a word.
Aaron Horne
Oh yeah, it’s a lousy way.
John McGregor
And the other thing with the Australian accent too versus the because the Philippines, they, you know, learn the American English, so you’ll hear them, you know, they’re very accentuated in their.
Aaron Horne
Oh, you sound like Tara who was on last week.
Patrick Berry
Oh wait for Texas man to come out and John in a moment.
Patrick Berry
And.
Aaron Horne
Then with no process to it can’t fix the price.
Patrick Berry
Then it’s the gimmicks of.
John McGregor
There’s no cure for a price. The price cannot prosecute. They’re like, Nah, that’s not it.
Aaron Horne
But I think I was close.
Patrick Berry
To moving on.
John McGregor
We so we must keep on going at the and with the tech it the Australian language and then Tasmania and even more because the the Tasmanian accent is like very we don’t even pronounce are ls there’s like school there’s not school. So even.
Patrick Berry
Then it gets I didn’t know this one made it up and.
John McGregor
Um so then I found too when you chatting with him, if you speaking fast as we often do, and then all the words like build into one, you could just see this blank look on their face. Well, they’re like, well.
Aaron Horne
So now you’ve just I know you mentioned Pat like as you were there that the English that was kind of being discussed in the office was kind of a half hybrid of it’s easier than translating. Yeah. So this was just even amongst the staff.
Patrick Berry
Members, you’ve experienced it, but they’ll speak half English, half Filipino and Z words is easier to use English than it is to do. Yes.
John McGregor
Filipinos played the two languages. Yeah, yeah.
Patrick Berry
And I didn’t notice it for the first day. But then Renz pointed it out the second time we were in a bus heading off. And after that, I couldn’t stop hearing it. Everywhere I went, I was like, Oh yeah, they are.
John McGregor
Just always in English words, just pop. And you weren’t even really noticing.
Patrick Berry
And then all of a sudden you realise that you kind of can guess what these conversations are about based on the four words.
Patrick Berry
I can hear.
Patrick Berry
So it was an awesome experience. Our team, if they’re listening, you guys are amazing. You do a fantastic job for us. And yeah, it was just a really good opportunity to to better understand a bit more of their culture and you know, what they do each day for work and yeah, and I guess also allowing us to give them a bit more guidance as to what we need out of them as well for the jobs here in Australia they do for us.
John McGregor
Well, I know when you’re chatting about it and you just found that how quickly you could move to solution so much faster than it was just even with the Skype call. Yeah. And then, you know, basically seeing it from their perspective too that what we couldn’t see that they were learning.
Patrick Berry
Scott what our 2001 job I know.
John McGregor
Back to like the telephones with a screen on it there’s a dial up.
Aaron Horne
This is the guy who started real estate when.
Patrick Berry
When.
Aaron Horne
Carrier pigeons was still a thing. That’s electronic mails on the way.
John McGregor
Even they were passing on the message. You’re right. The problem really is that it’s kind of like.
Patrick Berry
You got to they they got.
Aaron Horne
There they.
John McGregor
Purpose silly stuff that.
Aaron Horne
Shows off the speaking of exciting things in real estate you’ve got some really interesting listings going on at the moment. Like we’ve been out shooting some really unique properties. Like yesterday we had a bit of fun with it. You were down to just virtual to talk through some of your listings at the moment, just kind of, I know we have free advertising for a full list of listings.
John McGregor
I think one of the things that’s been exciting for me is to actually really start re-engaging with video marketing and being a lot more creative about it. Again, I mean, many years ago, I mean, we when remember when we first first started doing video marketing, like you had hired actors to, you know, try and sell this like a high rise in Hobart and we’re, you know, doing all crazy stuff before.
John McGregor
But that sort of went by the wayside as you just sort of, you know, give great, great tide of ideas, I guess. But one thing we did, the one that got them started at Dodges Variance really sort of because the owners had spent all this time it’s at 7/75 Avenue is that we said to the owners, look, guys, if you could make this feel like an Airbnb properties advertised, it’ll be amazing and hats off to them.
John McGregor
They absolutely work their butts off. And now with that, when you walk into the home and when we did the video, we, you know, perched up on the bench and just because I said to him, look, well it’s probably your favourite position this house and sit right here on the bench because what their favourite memories is in this little galley kitchen is it.
John McGregor
Either one of them would be taking the turns to be, you know, washing or preparing the meals while the other one’s just sipping coffee. Yeah. And throughout this whole house, this every little spot did it perfect for entertaining. And when we were creating this, creating the marketing material, we, you know, get it to show that it is obviously a dodgy fairy shack, but it’s now a home.
Aaron Horne
And it’s almost just jumping in. It’s almost like a TARDIS because from the outside you’re like, Oh yeah, stocks down to the shack like that. So just fairy Shack that’s been here for a while. Someone’s built it and lived it as a shack. But as soon as you open that front door, it’s, you know, this styled beautifully, like the hanging door’s, and that’s like walking robes in a shack and all these crazy features that you’re like, Oh, I didn’t anticipate that it was.
John McGregor
Yeah, that’s the thing is like it’s got all the things that you want to make the quality of life for your home better, but that never happens in a shack. So and then of course they’ve coupled it with you know, obviously was priced it well so the second we went, the second log, we already had people ready to inspect anyway.
John McGregor
But straight away there was, you know, three enquiries of people wanting to get in beforehand. And there’s a few, there’s a couple to sell on the street already. They had to open homes and they re advertising their open homes because obviously they were unsuccessful. And we’re really excited because it seems because all those people that we know of, there’s one couple that called us and said, look, we’ve been waiting for like over a year for something like this to come along because images vary.
John McGregor
You’ve got these different price brackets where 5 to 600, you’ve got these shacks sort of converted. Yeah. And then jumps in new homes. It’s sort of 657 plus. And then you’ve got the, you know, the incredible properties that, you know, it’s selling well in excess of $4 million. So this one, it is with all the work that they invested to make it feel like it’s just something you just want to come home and never leave has just, you know, transformed into an amazing property that’s going to get you.
John McGregor
We’re looking in we can tell that’s going to get a hell of a lot of activity, which is fine.
Patrick Berry
I’ve stayed in a lot of Airbnbs around the world. John And you said it had walk in wardrobes like the double bedrooms in some of their stayed inside.
Patrick Berry
You know depending on how you feel you might have five or six bedrooms. You couldn’t be in this place. Yeah, yeah.
Aaron Horne
When you’ve thrown out there that there’s a few others in the street. We didn’t talk about that, we talk about this, but I was actually walking my dog the other day and it was almost like a game of Monopoly. There was kind of three different properties really close to each other. Like the same street. Yeah, different people selling them, but like two on one side, one on the other.
Aaron Horne
And I was like, What? What does this mean? Like I was trying to analyse what does this mean for the street? So one side of my brain said This means someone really bad has moved into the street and everybody wants out. But then the other side of it was like someone else’s is they’ve got a good price. It’s worked out that, oh, maybe we can pounce on this.
Aaron Horne
Can you talk to this? Because I want to know which side of my brain was right.
Patrick Berry
I love this because Paringa, we’ve got two in the street for sale at the moment. Sons have got one and we also sold one in the street recently.
John McGregor
So that’s another. Right. And so one of the very.
Patrick Berry
The first five in the one street that have all sold within what, 3 to 4 month period.
John McGregor
And another one in Glenorchy was Victor Place. Look, we started it with two properties and then those three other properties had come up another like four or five within six months.
Aaron Horne
All right. So yeah, did bad people move in and it made people want to move out or was it the other side? Like, what would be the reason why there’s a mass exodus from a street or a mass influx of houses for sale?
Patrick Berry
I think you always find that if one house has a really good, successful outcome, it tends to make other people start to think like, I’m the reason why a lot of our agents in the office do the just lit just sold brochures. You know, I just sold this house for 50,000 more than what the owner wanted. And then, you know, owner gets that in their letterbox and then that just starts the thinking process.
Patrick Berry
All of a sudden you’re on realestate.com.au with my if I sold that for that, my house is going to be this.
Aaron Horne
Yep, for.
John McGregor
Sure. It’s just like, well, now I can get that. That means I can get this.
Patrick Berry
Yeah. So I think nine times out of ten, it’s probably the result of someone successfully having a good result in the street and that triggering other people to realise they could do the same. However, I would assume as well sometimes.
Aaron Horne
The some sometimes is one side of my brain was right for a little bit of it like it was. Yeah. If you kind of hear some chainsaws going off or.
Patrick Berry
Something, I reckon if you’re a purchaser buying in that straight and you’ve got that concern, you can probably tell just by looking down the street and saying how to present it. Oh, it’s like if you go down the street and say it’s manicured lawn, manicured lawn, manicured lawn sticks and a pile of rubbish manicured.
Patrick Berry
Lawn manicured lawns. That house is the one that you everyone’s trying to get away from.
Aaron Horne
This tries to be on to another because I’m not looking to sell. But down my street there’s basically manicured lawn, manicured lawn and then there’s, you know, no, I’m the guy.
Patrick Berry
I’m the guy that’s a great job.
Aaron Horne
But there is a guy who look, he has been working on his garden. But look, here’s an example of it. You know, the Fogo bins that the council gave you? Yeah, that’s his letterbox.
John McGregor
I just it’s I.
Aaron Horne
Using that as his letterbox, just as an example. He does walk down the street. He’s a really nice guy. The other day, everybody was out mowing the lawn like it was spring. Nice day, everyone’s mowing along the things over. And we took Jack along the road for a bike ride and he’s like, Oh, daddy, everybody, my, my. Yeah, they’re going for it, right?
Aaron Horne
And we looked over and we’re like, Well, shall I go on my.
Patrick Berry
My, yeah.
Aaron Horne
But okay, consider I’m going to sell it my brain. I’m like, Would it be rude to go up to all my house and just say, Hey, Cuppa, do I like your lawn?
John McGregor
No, I honestly, we’ve done it. We’ve all we’ve all of, you know, paved the way. It’s been like a neighbour that’s, you know, a real nightmare as it was paid 50 bucks. Just look, you just disappear for one hour while we do the showings, and then then they go away and they come back, and it’s no issue. And yet we’ve done it by the money.
John McGregor
No one care so long as you can show it, so long as there’s something in it for them or they don’t want to do the work. And we had one. It will rain recently where the tenants were lovely, but they just the lawn was a nightmare. So our owners went and did it for it. Yeah.
Patrick Berry
I love that you’ve just openly admitted to bribing someone to leave so you can.
Patrick Berry
Manipulate someone else to buy a house. Yeah.
Aaron Horne
This is the. This is the.
Patrick Berry
Way car salesman has to present the property at its best. If that means that.
John McGregor
Person is.
Patrick Berry
No say.
Aaron Horne
Is this going to come up? The mercury. The southern president of the aria admits to bribery.
Patrick Berry
It’s not even bribery.
John McGregor
It’s just asking for a favour.
Patrick Berry
No, I see what you’re saying, John. You’re like at the end of the day. Well, we all guy’s a great example. He’s a harmless, perfect person, but maybe he just doesn’t have the time to get around to do his lawns.
Aaron Horne
Oh, yeah. Look, and it’s literally that idea. Like, it’s not really going to change my house. But if someone was driving along and looked down the street and you’re examples of, Oh, maybe this isn’t as good as I thought, it was like tidy it up. And yeah, by the best house on the worst street or whatever, the worst street on the best house.
Patrick Berry
I always hate that everyone thinks the tenants don’t have time to maintain properties as well. And like I said, the tenants don’t look after it. I’ve recently become a tenant and I think it’s a curse.
Patrick Berry
My lawn is up to my knee place to wait, to go ahead and do it. I’m like, I feel sorry for these tenants on one of them and when I’m exactly beside.
Aaron Horne
It could have something to do that. You’re in the Philippines the following week you were doing BMX like.
Patrick Berry
Not.
Aaron Horne
But I would say it’s daylight savings.
Patrick Berry
To you can’t mow the lawn.
John McGregor
If you rate your home. You get lawns like grown 25% faster. That’s that’s that’s the rule. That’s the road.
Patrick Berry
I don’t understand it. It just.
Patrick Berry
Grows and you can’t control.
Patrick Berry
It. It’s impossible job.
Aaron Horne
All right. That gives me a good segway. On to the last thing I want to talk about. So speaking of things growing at exponential rate, it seems like the interest rate rises are still coming with anticipating maybe one more this year I think is kind of the.
John McGregor
Vibe seems to be the case.
Aaron Horne
It seems that investors maybe have kind of just moved saw it in the market. It’s opened up to first time buyers. Is that kind of why some of your more unique properties are coming up in that it’s kind of targeted at not your investor, but kind of home occupiers?
John McGregor
Well, maybe the example with the, you know, the few sorts of houses that are all the same are coming up and waiting a little bit longer. Might be a bit more of a telling tale because we there’s a property we’ve got coming up that’s going to be we’ve got a contract 650. But there’s another another lot of the time because this is an off-market opportunity.
John McGregor
They’re looking at interest around about 630 and 640 and this is his first time. And then all of a sudden, like in between being able to get the stuff organised, another big hike and he had to get finance again and his position changed that he couldn’t offer no more than 600. Yeah. So what we’ve seen with these interest rates then is the those that really don’t have huge deposits, you know, available to them as it’s really had a hearty like a real impact on their actual borrowing capacity because just the repayments have risen.
John McGregor
Yeah, yeah. This won’t give them as much money. And especially in markets with Kanjorski where you’ve got the average price ranging between five and 600,000, that’s the pocket of people that have the five and 10% deposits where there’s you know, it’s really had a huge impact on their capacity to borrow. And what the with that thing is that the for the investors as well that it might have other otherwise been excited by a you know a general residential home that’s still got a bit of potential or the first time buyer at the time they’re looking at those in a very different very different way now because like, well, okay, I still got to do all
John McGregor
the little renovations I need to do bring it up to a standard. And it’s cost me, you know, twice as much to hold than it once did. So with the ones the reason why we want to we want our clients to go, you know, we need more than ever to present your property at its absolute finest so that people can know that they don’t have any more nothing else to invest in their property, to enjoy it and where even their clients.
John McGregor
With that video where I was running down the street yesterday, it took us, what, 4 hours to film this damn thing, man.
Aaron Horne
I got sunburn, I got home, and Sarah was like, on the top of your head. Looks a bit shiny. And I said, our john was putting sunscreen on. But yeah, I was silly not to.
Patrick Berry
Even with all I could imagine. Then John was.
Patrick Berry
Putting sunscreen on you, was putting it on me. I don’t know why the sun is they.
John McGregor
But we needed them to spend the time painting in the floors in the kitchen because it’s a huge home that’s getting listed. And at the same token, two had gone to market in it’s state where it was, it would have been would have been a roof, would have been a really hard time for us to move on the markets because of everyone a little bit more cautious about what they’re going to be paying because of the fear of missing, out, gone.
John McGregor
And they’re mindful that, okay, if I pay a premium now, I’ve still got more to invest. Well, it’s going to affect me in a much larger way than it did. You know, 18 months ago.
Patrick Berry
Well, finishing up just to try to wrap up on this, what I was thinking was your point there about people wanting to buy homes that are done, finished, ready to go. You know, some people out there in the current, you know, circumstances with the way cost of living is so expensive would probably struggle to do some of that work.
Patrick Berry
Of course, it’s probably worth noting as well, if you are one of those people that you know, you do know that you’ve got to spend a little bit of money to paint it out or put a new carpet in or whatever it may be. And we can help as well through our campaign agent. Certainly, yeah. So we can actually help you guys with up to $25,000 for renovation work so that you can get the home ready for sale on an interest free loan from our suppliers and campaign agent.
Patrick Berry
So, you know, if you’re out there, anything you need, well, that’s all good, John, but I don’t have the money to spend. Maybe we can help with that as well to help get the house ready.
John McGregor
And it’s always that’s it. That’s enough. Like it always ends up being enough for your average home to get that done. You can wrap it up between, you know, ten and 20 and, you know, you reduce your time market, you get the high priced, you’ve got a much larger, you know, pool of interest and that goes for any market.
John McGregor
So that’s why it’s really cool to be. We had also that yeah.
Aaron Horne
No, I love that’s actually called the only thing I’m disappointed about the place that I was once we left, Aaron told me that this was the infamous house that had the stripper pole in it. Oh, yeah. And it was removed. And I was just like, What are we doing running down the street when this house used to have a stripper pole?
John McGregor
I just wondered if it was still there, could it would have out in a whole market the idea just completely.
Aaron Horne
Oh yeah.
John McGregor
You know and so then it would have been running in high heels and they would have made it worse.
Patrick Berry
Yeah.
Aaron Horne
Speaking of hiring actors, we could have got Caitlin Delaney at a pole fitness thing that she could have come and put a class on for the two.
John McGregor
You it amazing.
Aaron Horne
All right, so look, my next time you got to the pole before it’s removed.
Patrick Berry
Just let.
Aaron Horne
The media so I’m not.
John McGregor
Yeah, just this quick attempt to get out.
Aaron Horne
Awesome. Well, Pat, so good to have you back. Welcome back into the office. I know you had a great time over there and yeah, very appreciative from the staff over that Nino, Daryl, Renz, and Queen seem to have a blast there. I know before going there they were worried about meeting their Aussie bosses, but afterwards, they were like, oh no, we’re fine.
John McGregor
Did they take you for a karaoke session?
Patrick Berry
No, but we had some interesting food and drinks here in the middle of it.
Aaron Horne
Awesome guys. Thanks, John. Good luck with your listings upcoming with that uniqueness. And we will all be back next week with more probably, but.
Patrick Berry
Go see you guys.
Aaron Horne
Bye.
[extro]
