Property Hub - Investment Insights & Inspiration - Realty Talk: The Morello Matrix + Rental Reveal + Market Pressure Winners + Auction Winning Stand Outs

Episode Date: November 26, 2021

In the current crazy post covid climate, many investors are left wondering how, where, and when to invest. To help you with this, Andrew Morello of the first Australian Apprentice fame joins us to unpack his book The Morello Matrix. In order to lease your property quickly and achieve the highest rent with the best tenants, Lauren Robinson from Rental Results reveals how you need to market your rental property to achieve the best rent, with the best tenants in the quickest time. If you’re looking for outperforming areas to secure your next property, Arjun Paliwal from Investorkit dives into his unique Market Pressure Report to identify the winners. And to round out the show, Bushy Martin continues part 3 of our special auction-winning series on how to avoid auction shocks by standing out from the crowd.  RealtyTalk is your trusted voice in property investment and Australia’s most popular online property show.  RealtyTalk is brought to you by Realty, Australia’s leading search and social property distribution platform that helps investors like you beat the crowd, giving you the earliest access to property opportunities, listings, and insights. Check out Realty. RealtyTalk is hosted by top property investment expert, author, and founder of KnowHow Property, Bushy Martin. Find out how Bushy’s KnowHow team helps investors unlock freedom with finance and property here, and check out Bushy’s podcast Get Invested. RealtyTalk is supported by BMT, a company that helps property investors save thousands of dollars each year by maximising tax deductions from investment properties. Find out more.See omnystudio.com/listener for privacy information.

Welcome to Realty Talk, the show that brings together the country's most authoritative and respected property experts. Follow us on all the socials and subscribe for updates and exclusive offers. Realty Talk is powered by realty.com.au, connecting buyers, sellers and agents differently. Hi and welcome to Realty Talk, your trusted voice for all things property. I'm Bushy Martin from KnowHow Property Finance and we've got another great show for you to enjoy today. In the current crazy climate, many investors are left wondering how, where, and when to invest.

So to help you with this, Andrew Morello of the First Australian Apprentice Frame joins us to unpack his book, The Morello Matrix. Lauren Robinson from Rental Results then reveals how you need to market your rental property to stand out from the crowd in order to lease it quickly and achieve the highest rent with the best tenants. And if you're looking to find outperforming areas to secure your next property, Arjun Palliwell from InvestorKit dives into his unique market pressure report to identify the winners. And to round off the show, I continue part three of our special series on how to avoid auction shocks by standing out from the crowd. We've got lots of insights to share, so let's get

underway. Hi and welcome. Now, despite continuous gloom, doom and now boom reports by the mainstream media with assets of all descriptions enjoying once in 30 year growth spurts, thanks to monetary stimulus from the COVID catalyst that's actually thrown petrol on the fire to reignite asset growth, many investors are left wondering how, where and when to invest. So to put some shape around us for you, we're joined by Andrew Morello, an awarded entrepreneur, property investor, and the winner of the first Australian Apprentice, who spent a decade with Mark Burris expanding the Yellow Brick Road network before becoming the head of business development at the Entourage.

And Morello is also the author of his book, The Morello Matrix, where he shares his method to convert cash into assets, which we're going to dig into today, given its relevance to current property conditions. So welcome back to the show, Morello. Thanks, Bushy. Thanks for having me. mate uh it's an interesting time of property as it always is and and you wrote that great book uh i reckon it's about five years ago now but uh very relevant and timeless in terms of the wisdom

that you shared there so i'd love you to sort of just go through some of the key elements of the morello matrix if you want to start yeah so the the when when i formulated the the concept it wasn't just the book was the concept as well the morello matrix it is timeless because the whole idea of it was to to assist people uh first of all you know you know to you know we a big belief mark boris and myself was that we believed in in two things in helping people own their own home and retiring comfortably and both uh mark boris and and andrew morello and the morello family have always um you know since 1956 since we came off the boats from italy and the port melbourne pier have invested in australian real estate and and done very well out of it right so certainly um

I don't disagree with looking at other asset classes and I've got all my, I do have a little bit of crypto and I've got a little bit of, I've got shares and everything as well. So I think it is important, but the whole point of the Morello Matrix was that if you're not in the property game, you are missing out. And so if you're looking at it from initially where one of my passions was, and we did speak offline about this first home buying. So it takes you from first home buying, then leveraging that first home into first investment to then having a portfolio owner, and then moving and having that paradigm shift that once you own two or three properties,

you're no longer a property investor. You're actually in the business of property and treating it like that is extremely important as well. So that was where the concept came from and probably the movement to some respect I was trying to create by putting together the Morello Matrix. Yeah, no, it's a really good read

and it sums it up in really simple, easy to digest terms. But so tell us how the Morello Matrix shape your own personal property investments if you don't mind yeah so well maybe what i'll do is i'll start i'll start at each each um each category so category one was first home buyers now i i i bought my first place when i was 18 um but in saying that i was i was very lucky that i started a business my entrepreneurial background as you mentioned earlier started when i was sort of 15 16 i'm not academically educated i finished year 12 but i didn't go on and study further studies partly because my business was doing very well like my brother and sister both went to

university and and are very successful in their own rights and my dad said oh what are you going to study and i said well i think i'm making more money than my brother and sister are right now anyway as an 18 year old so i thought i think i might just stick with this with this business and then i moved into the property industry as well because my brother was one of the directors at jealous craig at the time um and then ended up buying into some of those businesses and and having a career in traditional real estate. So step one of the Merlo Matrix was if you're not in real estate, let's look at how we'll get you in there. So if you are a first-time buyer and you're sitting there and a couple of, you know, two or three quick tips. Number one, you know,

and I've mentioned it in previous recordings with you is remove your ego. So if it means you've got to move back in with mum or dad for six months and save a bit of a deposit, great. Number two is look at opportunities around first-time buyer grants like Australia. We're very good with that. We love stimulating the economy by encouraging, you know, it's not just young people. I've got people that are in their 40s or 50s that have never bought a piece of real estate before. I'm like, well, you're eligible for the first home buyer grant. It's not a 20-something-year-old or 30-something-year-old. It's not age, you know, age constricting.

So if you've never bought real estate, you know, please do speak to your mortgage broker or your bank or do your research online or whatever it might be and see what you are eligible for, whether that's a stamp duty saving or a stamp duty diversion or an actual part of a deposit, right? The last part of that one is, and I didn't have this as an opportunity, but certainly if it's out there, the banks are looking very favourable around parental guarantees. So if you're a good kid, I'm not saying that in a demeaning way, if you're a good son or daughter and you've gone and got yourself a good job,

you've studied at uni now, you've got a good job, you've saved 10 15 grand 20 grand but you need an extra 30 or 40 your parents can actually guarantee just the deposit portion so a big misconception people have about parental guarantee is that you're risking mum and dad's whole house so their house that they've spent their whole life paying off and now is worth two you know 1.5 million dollars and that's all they've got they don't have much super they don't have so it's really that's their retirement package people think you're risking helping them helping you you're going to risk it it's actually not They're only actually securing against their property 50 grand.

It's the deposit. So the bank's still lending you that other 80% or that other 90%, whatever it might be. So that's a really good option one. I do want to put a disclaimer there, a couple of things. So the parents listening, you will have to seek independent legal advice about your children doing this so that they will expect,

the lenders will expect you'll have a meeting without your children being there to make sure that you are fully aware especially if you're a new australian where you don't speak english correctly they'll want you to make sure you understand there is the risk that if the child or or whoever you guarantee doesn't pay then you do need to come up with that deposit money that you've given them or that you've guaranteed them so that is one thing and then number two is have my other tip is have difficult conversations up front like you know if you think your son or daughter is a little bit flighty say to them up front or or if you are a bit of a flighty son or daughter go into it with a really clear plan i always say to people before

you go to your mom and dad ask and ask for a parental guarantee or for them to actually consider doing this go there and say you know here's my dad i've gotten rid of my uber my uber eats account i've gotten rid of my my um you know i'm instead of instead of catching ubers to work i'm catching the train i got myself a mikey card or an opal card like i've saved 20 000 already and and go to them with a plan about how you're actually going to pay that extra little bit of money off and like show them like a little business plan like two pager right and i think that should put everyone in good state so that's that's step one that's those people the next part of the roller matrix is buying your first investment property so if you've got it gone and

bought your home now and you've gone and bought something you've you've been able to now of the opportunity that you mentioned before get some equity it's a really good conversation to look at leverageability right now so if you bought something for four five hundred thousand three years ago it's probably worth eight nine hundred now you can leverage that extra bit of money so you may not have paid down a lot of the principal but that extra little bit of money might give you an opportunity to buy an investment property in a growth area right so certainly something you should be looking to do doesn't cost you anything or generally not to go and get the the place valued by a lender so go speak to your mortgage broker or your financial planner or your um or

your bank and say look i'm thinking about buying an investment property is it possible doesn't cost you anything to have a conversation right so that that was something that the morello matrix was very much about this whole chapter on leverage then the last part is you know if you have got some experience now you've got one or two investment properties and you are looking for things outside the box they are they are out there so potentially buying sites that are corner sites that you might keep the original house on the front which i'm consulted to a friend right now he's putting two units on the back in brunswick in melbourne um i've got another guy that i'm helping in sydney uh he's bought a jewel lock site you know so keeping in mind that there are

there is always a little bit more risk there but there's certainly a lot of opportunity in that market right now yeah beautifully said so given the interesting times we're in with property how can your morello matrix help property investors now as you say it yeah so the main principle of the morello matrix is number one is leverageability so do that uh number two is um understanding the market so you know one of the other big things that the marilla matrix talks about is you know sometimes being a little bit weary of what i like to call parochialism so just because you've grown up in melbourne doesn't mean melbourne's the best place to buy real estate right now just because you grew up in sydney doesn't mean sydney's probably sydney's probably

not the best place to buy right because it's grossly overvalued right so so melbourne does have some opportunity i've got people from sydney right now looking at that western corridor in melbourne anywhere from you're calling that you know let's call it tarn eat all the way up to geelong that whole path and the other thing is now because a lot of people are working from home you're seeing that up to that um uh surf coast i've got a mind blank of the the correct vernacular but you know that torquay region what's actually happened is that a lot of you know that's booming but there's a there's a gap between like the west let's call it point cork or tarn eat that was like a new upcoming area and then you've got Torquay that's done really really well there's a whole

bunch of land in between there right so like maybe if you're from Sydney and you think I want to spend you know five six seven hundred thousand dollars on an investment property maybe you're looking there rather than you're looking in in western Sydney and that's going to be near the airport and it has boomed as well so Morella Matrix is all about sort of leveraging existing opportunities whether that's first home and leveraging mum or dad or leveraging you know government stimulus. The next thing the Marilla Matrix is about is then leveraging your existing portfolio. So it doesn't cost you anything to go back to the banks and get it revalued and get an understanding of how big or what your opportunity is or what you need to do to get all your ducks

in a row. And then the last part of the Marilla Matrix is all about moving, getting a paradigm shift and moving into the concept that you are in the business of real estate. Now, once you own four five six seven eight properties uh it's very important for you to start treating it like a uh like like a business right you should be a basic spreadsheet but you shouldn't be relying just on a wee amount if something comes up you need to have some money put away in a contingency if you know there was a storm in melbourne a few weeks ago right and uh you know i probably could have gone through insurance but because i've got contacts now look i've built the other thing that up the the um matrix talks about you're building your a team you know i literally got a text

message this morning from a friend of mine that i'm assisting in consulting in buying there she's like have you got a building inspector for me because my one's fully booked and we want to bid on something on uh on saturday and i'm like yeah i do so you know you then start to build what i call your 18 the a team you include people like mortgage broker financial planners it includes then building inspectors and pest inspectors it includes property managers property managers you know it includes real estate agency become friends with like there's a lot of stock on that that's getting moved right now off market that's a thing that's happened again you know like people are going you know i keep missing out on my respect to the agent tell them what you're looking for

and there's a lot of just deals getting done directly agents gone you know i've got this coming up owner says they want 950 you know and you know if you pay the 950 then we're not going market and if you've got the pre-approval you're ready to go then there's an opportunity for you to leverage that yes but i know beautifully said mate and uh taking that borderless approach is also as you say lifting your sights so you're not looking in your backyard but yeah there's 15 odd thousand suburbs across the country that have all offering great opportunities to invest take off the blinkers and get the right team to help you find the best yeah and adelaide like where you where you were originally like i have heard some massive

opportunities in adelaide recently you know like in norwood is an area that's always done well but there's like three or four suburbs that are but norwood and a very close friend of mine just helped her purchase um something literally in one of the suburbs next door um starts with them probably kensington or one of those areas in close close there yeah directly next door to norwood and it was literally like you're literally 600 meters away from the border of norwood and and it was like 300 grand less for the single fund and i was like did that they're the sort of opportunities you want to be looking for and understanding that you know it is um here's a good concept for everyone that's in the moral of the matrix as well is that the value of property

is often affected by their osmosis of property just by by it's very much the the gentrification and the geography of a particular um suburb you can be picking up certain opportunities off it you know and like a prime example here that I know really really well was like East Keilor right like growing up not in some arrogant way but like people from Moonee Pines Essendon you know Askavale Kensington weren't interested in East Keilor but now East Keilor is like considered Essendon North, Essendon West like I think that I'm pretty sure there's a campaign from someone you know somewhere at a council level to try and rezone it as Essendon West so and they did that in Footscray and Seddon as well like Seddon was like in like the 90s it was you know terrible

area to be in like there was you know it was probably I think at one point they called Footscray like the the hub for heroin trade in australia now try and buy in footscray or west footscray or sedan or yarrable um you know it's become a very much a epicenter for same-sex couples like we saw in redfern in sydney and you know you know i'm saying this with absolute love and but like same-sex couples are great for an area because they have you know traditionally they take a lot of pride in their properties totally a lot of pride in their communities so like all these little shitty houses that were for sale for nothing in West Footscray and Seddon because it was known as a as a druggie area and then you've got this you know community of dual income earners

no kids traditionally buying in those areas spending a lot of money on their properties doing major renovations over capitalizing but it has lifted the whole values of the property so like I was there when it when it happened I started my property career in that area when I was 18 19 going back 15 20 years ago and i saw it happen where properties went from in in like a very short period from 300 000 to um to 700 000 in a two-year period you know so so to think outside the box um going to with an open heart and open mind especially if you're property investing you're not living there right that's the other thing you know i keep saying to people like you There's an area here in Melbourne called Jakarta, right?

And once again, it's known as a bit of a Bronx-y area, but there's a freeway entrance on Pascoville Road right next to Jakarta, like literally right there. You can be on the freeway into the city in like maybe 17 minutes and you're riding the CBD. If you go that side on the other side of town, you're going to be paying $1.2, $1.3 million on the same distance on the other side of the city.

So I'm like, Jakarta, yeah, it's a bit Bronx-y, But at some point, just by sheer its osmosis and geography, it's going to make it worth something. You know what I mean? Yeah, absolutely. Would I want to go live in Jakarta? I'm not being mean to anyone from Jakarta. I probably wouldn't go live there.

But would I go buy a potential three-unit site corner block that I can just rent out for now for $350, $400 a week on an old weatherboard, get some plans and permits for three townhouses later on, do a development, I'd probably clear half a million, $12 million. 100%. now let's face it to me mate and and you uh property are just money boxes in the shape of a house correct and the focus is on the money box and the other important point there that you make

is that you don't buy property in an area based on what things are like now you put on your future glasses you look at what's this area going to look like in 10 years when all that gentrification uh filters through and the ripple effect from other suburbs starts to lift lift the uh the values, mate. So mate, always love the gold that you share, mate. Really appreciate your timeless advice again today, Morello. And thanks again for your time on the show today. Thanks for having me, Bushy. Thanks a lot, guys. Awesome, mate. So if you want to convert cash into assets and play the property game to win, complete the toolbox with the lessons from the Morello Matrix. And if you want to take your life and your business to the next level as either an entrepreneur or an

intrapreneur, check out Morello and the Entourage. They're Australia's largest training institution for entrepreneurs and business owners. And myself and my good wife have graduated from that a few years ago and it's made a massive difference to our performance since. So thank you for that, Morello. And for all of us, there'll be going to be more shortly here on Realty Talk. Successful property investment is a game of finance.

Do you have the right team and the right game plan? Realty Talk is brought to you by Know How Property. More than mortgage brokers, bushy martin and his team of investment architects set you up with a sustainable strategy structured to lower your costs tax risk and stress while increasing your capacity for growth know-how has helped over 1900 homeowners and investors secure more than 800 million dollars in property wealth. So get set to live more, work less and live your legacy. Want to know how to invest in your freedom? Visit knowhowproperty.com.au. Welcome. Now, regardless of how tight rental

vacancies are, when it comes to the crunch and getting your investment property leased as fast as possible at the highest achievable rate and attracting the best available tenants, how you market your rental property to stand out from the crowd will have a big impact on your success so to discuss how to do this we join by leading independent property manager lauren robertson from rental results who's also the author of her great book rented so welcome back to the show laura oh thanks so much bushy it's a pleasure great to see you and you just shared with me a minute ago that uh you're about to add to the family so uh yes i'm very appreciative of you coming on board and we all wish you were the best in health yourself and uh and then you

baby when it comes. Yep, excellent. Terrific Lauren. Now getting into the subject of marketing your property, let's start off with what mistakes that you see landlords making when marketing their rental properties. Yeah, I think there's a couple of mistakes I typically see and it comes back to not understanding the demographic of tenant that's likely to, that your property is likely to appeal to. And I think also underestimating the value of presenting the property online in a way that's going to be really appealing so we've all seen those photos online where it's been taken by you know a dodgy camera or an iphone and it has it just really does not appeal to the widest market so i think really don't underestimate the power of professional photography 2d 3d floor plans

really what you know in this day and age we're doing 360 degree virtual tours especially with you know often you know restrictions come into place where tenants are unable to make the inspection. So it's really important to treat the marketing of your investment property as you would a sales property. So yeah. Yeah, it sounds good. Well, you've sort of started to touch on some of the options that they need to be looking at already. But let's dive in then to how investors can successfully market their rental properties. Yeah, I guess the first tip to make sure the property stands out online is to have really good photography. So engaging the services of a professional photographer and making sure the best features of the property are highlighted

so that in with it with the right angles best lighting so it really encourages the largest pool of potential tenants to be coming along to the inspections. Secondly would be adding the floor plans so ideally 2D, 3D floor plans so tenants can really get a feel for what the layout of the property is like, how large the bedrooms are and whether that's going to suit their own personal needs and then also a 360 degree virtual tour so that's really important too the interactive tours that give tenants a great idea of what they're going to be walking into before actually turning up to an inspection they're quite fun to to utilize as well and then also making sure that you understand the demographic which I spoke about before but it's also you know if your property is

a position near a school it's a house um you know it's likely to appeal to a family um and also knowing that you know lots of families have pets so whether it's got a fully fenced yard for children or pets is really um appealing so i'm really making sure that the ad's written well to attract the largest pool of people yeah a bit of an art form there but those uh things you've mentioned like the 3d walkthroughs and whatnot are they uh and the 3d floor plans are they they expensive to orchestrate lauren um i mean we in in our office we do the 360 degree virtual tours ourself and we've found them a really great value add um not only do we do them for the marketing initially but also they form part of the entry condition report and vacate inspections

as well so that no surface gets left um unturned the other thing um i guess with the photography 2d 3d floor plans and even the matterport tours or the virtual tours a lot of companies ease days offer a package for that so you know realistically you'd be looking at under $500 to get everything marketed and presenting really well online. Yeah brilliant and if you get good quality photos and good quality production then it's not a one-hit cost because potentially you can reuse some of that moving forward if you have a changeover. Yes definitely. Yeah brilliant okay and so you've covered most of that are there any other innovative or non-traditional ways that investors can market their property to separate theirs from the rest of the pack Lauren?

Yeah, I think also, like, there's a couple of things. So when it comes to knowing your demographic, it's also knowing what that particular tenants are going to be looking for in a rental property. So if it's a, you know, for example, I've got a rental property myself in St. Lucia near the University of Queensland, tenants in that property typically don't, they're not necessarily needing, you know, a dishwasher and those sorts of things, because the demographic is students. whereas if it was a family that's sort of a non-negotiable deal breaker for a lot of families especially if they're both working so I think it's really understanding who is actually going to be renting this property and then what do they want in that property so there's a couple of ways to find out so obviously speaking to a local property manager and asking them you know what what's the demographic and who's likely to rent this property but also getting the feedback after the inspections from tenants to ask them, was there anything additional that you'd like to see in this property that would make it more appealing to you? And I think, you know, definitely things

like storage, making sure that, you know, it just has all those features and additional things that people look for, like car parking, storage, accessibility, safe, secure, those types of things. But when it also, when it comes to marketing the property online, it's also making sure that's available in all the portals that tenants are looking at so you know like the major ones like your realestate.com your domains but also we spoke earlier about facebook um local facebook groups and there's a lot of other alternatives available for um tenants who are looking for rental properties too yeah i love it yeah that's certainly yeah a lot more opportunity than what there ever used to be and i guess covid has forced us to be a little bit more creative

about doing a lot more of that virtually and online. So that's really interesting and I really thank you for those very timely reminders, Lauren. And thanks again for your time on the show today. No, thank you, Bushy. Well, if you're looking to successfully market your rental property,

remember the old adage that good marketing makes the property look great, but great marketing makes the tenant feel great. And the best way to do that is to grab a copy of Lauren's book, Rented, and engage an independent property management specialist like Lauren and her team at Rental Results. More to come here on Realty Talk.

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find residential investors almost $9,000 in first full financial year deductions. Call BMT on 1300 728 726 today for an obligation free quote. Hi and welcome. Now, Australian housing values are rising at the fastest annual pace since June 1989, according to recent CoreLogic figures, with Australian housing values across the nation rising an average of over 20% in the last year, but some areas are outperforming others. To drill down on this, a new market pressure report by data-driven buyers agency InvestiKit

predicts pressure will remain intense over the next 12 months in the north coast regions of New South Wales. It's going to continue to outperform our capital cities. So to discuss these findings, we're joined by the author of this report, Arjun Palliwell, who's the head of research and founder of data-driven buyers agency Investor Kit. So welcome back to Realty Talk, Arjun. Great to be back on, my friend. Absolutely. Now, mate, how has the New South Wales North Coast market performed as a whole over the last 12 months? It's had phenomenal movements and the markets across the coastline heading from, you know, Port Macquarie or Central Coast in the closest area to sydney going all the way up to your byron's bay and double digits um was the

weakest performing market so to just uh you know think of how much that has to be it's quite substantial yeah brilliant so word i love the concept of this the market pressure you talk about so take us through this concept of market pressure and and what factors buyers should be looking to when making a purchase? Yeah, so I guess the idea of analysing pressure, it came from taking a step back and realising that when you look at years or decades of data, capital growth is not something that's just perfectly trotting along and occurring every single year to a similar percentage and all property markets are just boring. That doesn't happen. What tends to happen is that most gains, when they are substantial, are quite condensed, whether it be over a two,

three or four year mark. There are a few markets that tend to go beyond the four year mark of one really strong run. But most commonly, it's that two and a half to four and a half year mark that we see when looking at the last two or three decades of property data. And so when you think of the periods that are likely to go through this high pressure, it actually is the periods of greatest capital growth and so you know as an investor timing this can be difficult but once you're in and you're at the highest point of pressure you can say that the growth is likely to be the greatest so even if you did miss a little bit but entered in when pressure was so high there are greater chances for you to you know start off the right foot when investing in property

yeah i love it i mean the example i often use is if you imagine an s curve where the the upward slope of the curve is that sort of three three to five year time of high growth and then you'll see a plateau for quite an extensive time and then you'll see another spurt of growth over that time it's certainly in alignment with what you're seeing and that certainly lines up with how individual areas have performed over the last 30 years or so Arjun so yeah really good read of it so in the context of that then which region performed the best and has the strong future potential and investment potential, as you say it? So the region that performed the best may actually not be too surprising to many when they think of the North Coast. It's the

Byron Bay region. Now, we classify it with a slightly different name. Our name is Richmond Valley-Coastal. This is using a data categorization known as Statistical Area 3, SA3. And the purpose of using this data is to be able to cluster locations together just to get a little bit better sample size. So that was by far the most expensive and the highest growing. So it was definitely driven on that higher end up the coastline. However, my bet for where I feel the strongest 12 months ahead is likely to be between the markets of Port Macquarie and Coffs Harbour. I feel those markets not only offer a very strong last 12 months of performance, But they offer the sweet spot for all types of buyers to be involved, whether it be investors who are looking for a healthy yield whilst being attracted to these coastal markets, or be, you know, renters and owner occupiers making that transition.

So I feel that it's very balanced between attracting owner occupiers with the lifestyle it offers and how they're really developing into some bigger cities, as well as those who are investors who want to capture the coastal piece, but without really losing a lot of rents. Yeah, awesome. That's pretty exciting. So what do you predict the next 12 months will look like for the New South Wales North Coast? Well, we used a few indicators, and these indicators are predominantly what demonstrate that pressure. Vendor discounting, vacancy rates, rents, yields, sales volumes, listings volumes, the speed of sale, days on market, and price movements. And using these were essentially in the summarized statement saying, are vendors selling property faster? Are less listings coming on to keep supply tight? Are more volumes of transactions occurring to again, keep supply tight and confidence high? our vendors giving away less discounts and able to you know sell it without having to cut back price and they can be a little greedy and our rents coming through at rapid take up and not many rental properties at the market with i guess landlords having more confidence to increase their rents so a combination of all of that is how we we create you know i guess call it pressure

and so the fact that pressure is very high in all of these locations i am expecting double digit growth to continue for 2022. A little bit contrary to many of the banks who obviously came late to the party with the 2021 predictions of the 20% plus, who are now forecasting sort of 4% to 8% across whichever banks you see for 2022. I'm predicting that these locations in particular still reach double digit gains. Now, there are some that I feel outperform. I do think Port Macquarie and Coffs Harbour are markets that will definitely go towards beyond the double digits by a fairly easy mark, not just your 10 or 11%. And so our thinking here is that we're looking to a very strong 2022 and lifestyle decisions don't just immediately shut off. People are bringing

forward retirement plans is the most sort of common thing that we're hearing. And also people are just expanding to newer ways of working. Now, new ways of working sure can be changed between how companies want their employees to come in or not come in but bringing forward retirement plans are targets that people have a great other side to look forward to so they're going to be people on missions to make you know these things come true and I don't feel that slowing down any minute totally agree and I think the regional exodus for lifestyle and that that the space and the safety security as long as the technology uh supports there uh via you know easy and quick internet access with with that big movement towards much more working from home uh those

sorts of locations that combine all those lifestyle amenities uh i don't see this as a short fat i think this is we've now triggered something of covert that's exacerbated a an overall trend that was there so i think it's a fantastic read of the situation and i love the way that the data and the level of detail you go into uh you're not just making this as a as a statement or a gut feeling it's actually supported by hard evidence so i really want to thank you for the quite eye-opening update you've given us arjun and thanks for your generous time on the show today appreciate it bushy thanks arjun well there's some very insightful opportunities here so if you want to hone in on future outperforming areas get

yourself a copy of the full Investor Kit report now by going to investorkit.com.au forward slash white paper forward slash New South Wales north coast market pressure review more market leading insights to come here on Realty Talk. Hi and welcome. In the current seller's market with limited properties for sale being feverishly pursued by herds of hungry cash tap buyers, the high majority of properties are being sold at auction in order to achieve the highest price. So in order to equip you with the knowledge and the skills to improve your chances of buying a property under auction conditions, this week we continue our special auction winning series that brings together and draws on a collection of advice from industry

leaders, buyers, specialists, and auctioneers like Bryce Holdaway, Rich Harvey, Kate Bakos, Damien Cooley, Justin Nickerson, Lauren Stanley, and others, along with my own experience gleaned over the last 35 years. Well, it's now auction day, so how do you make sure that you stand out from the crowd. In the run-up to the big day, and as discussed over the last couple of bush bites on auction preparation, you've attended a lot of auctions for similar properties, especially with the auctioneer that's going to be selling the property that you're interested in. You've preset your dream price, your fair price, and your walk-away price limits while avoiding round or even numbers. And you've organized a full finance approval with a comfortable buffer. You've also

completed a professional independent building and pest inspection, and your conveyancer has reviewed the property contract and you've negotiated and agreed any condition variations in writing in advance. This pre-auction preparation combination will ensure that you're fully prepared, calm, comfortable and confident on auction day as auction performance is all about feeling and projecting confidence. And then on the day in the lead up to the bidding war, you've adopted a confident success mindset, you expect the unexpected, you understand the auction process and jargon, you've registered early, you're remaining calm at all times and you've engaged a professional buyers agent to represent you to eliminate your emotion as your

biggest risk and you've prepared yourself to avoid the seven deadly sins of auction. You won't talk to your partner during the bidding, you won't phone a friend, you won't let your body language give you away, you won't bring the whole family along, you won't overdress, you won't be rude to the auctioneer, you won't make silly bids, and you won't bid against yourself. In addition, you won't fall for the auctioneer's traps, and you've made sure that you'd left your competitive ego in the car. I'm now going to give you a peek behind the curtain at some of the psychology and specific behaviours that you can adopt to make the difference between a wasted day and you owning a good property at a good price. The following auction approaches are taken from a chapter

of the Insider's Guide to Saving Thousands at Auction by Patrick Bright. Now, Bright says that they won't guarantee you win every auction you attend, but having a thorough understanding of the auction process will certainly help you to give you a better chance of winning well at auction. And here's what he says.

It's important to start with the realisation that there are two types of auctions. Auctions where the pressure's on the buyers due to buyer competition, which is certainly the case in the current hotly contested FOMO-driven seller's markets. And then there are auctions where the pressure is on the vendor due to insufficient competition above the reserve price.

So to adopt the right auction strategy, you want to start by getting a handle on which category the auction you're about to bid on actually falls into. And remember that every auction is different. In attending many auctions over the years, I can assure you that no two auctions are the same. Sure, you have a similar playing field. However, the players, being the buyers, the referee, and the lines people, being namely the auctioneer and the selling agents, are all different every time.

You have to adjust your approach to suit the circumstances. In this regard, some of the factors that can influence the auction dynamics include things like how motivated the vendor is to sell, what the selling agent has said to potential buyers, how much the property has been under-quoted by the selling agent, the number of bidders and their price expectations, the location of the auction, whether it be on-site, in auction rooms or online and external conditions. For example, a recent interest rate rise, recent media coverage of the property market, the time of year, etc. Now with this backdrop, when bidding at auction you need

to rely on your experience and your intuition. You can only predict your competition to a point but if you understand the game and human psychology well enough you can gain the upper hand you've got to read the environment decide what tactics are most suitable do you want to set the tone for the auction or do you want to sit back and watch and then come to the last minute if you've never bid at auction before take consolation in the fact that other bidders are probably inexperienced as well but unlike you they may have not listened to this bush bite well at least you'd hope they happen anyway. So the first step to gauge all of this is to arrive early. On auction day it's a good idea to arrive early by at least 30 to 60 minutes so you can expect the property

for the last time, register bid and most importantly get a sense of your competition. You also need to arrive at the auction early to choose the best vantage point and as importantly determine how many bidders are registered. For example if there's 20 odd bidders you might decide to open with a strong bid to knock people out, where an opening bid above the advertised price range can immediately shrink the bidding pool. You should also work out where you'll stand for the auction and stake your claim on your spot before anyone else does. Choose a place up front and obvious, just to one side, where you can be seen clearly by the auctioneer when placing a bid and also where you can see who else is bidding. In this regard, you need to take centre stage or close to it.

As Buyer's Agent Rich Harvey says, when he bids on behalf of someone, he likes to take pole position in the room or on site. Stand somewhere that you can see the auctioneer, but also everybody you're going to be competing against. Don't stand at the back or in a corner where no one can see you. Show that you mean business. The more visible you are, the more commanding of the auction process you can be. So positioning is critical. Remember to stand at the front just to the side of the auctioneer so that you can clearly see you and you can see them, and you have clear vision of all the other bidders so you can read their body language. So I reiterate that you need to be visible. Contrary to popular belief, hiding behind a column and popping the paddle out to bid

isn't going to win you auctions. Part of winning is confidence, so be visible in the centre and show your confidence to the auctioneer. Next, you need to get your tongue wagging. When it comes to auctions, silence is deadly. Not just failing to bid when you should, but also engaging with the auctioneer. This follows on from standing in a prime position, so make sure you're somewhere that you can banter with the auctioneer. Telling jokes, engaging conversation, it shows you know the process and you get to have a bit of fun on as you go along. Make yourself known, speak clearly and don't be afraid to heckle the auctioneer in a nice, friendly way.

Next, remember to stick to your limit. The first and most important auction tactic, well, it's actually more like a rule, is to set your limit before the auction and never go over it. This is the only tactic that applies in all situations. I've seen buyers remorse after many auctions. A little while after the hammer has fallen,

the buyer's thinking, damn, I've paid too much. I shouldn't have done that. If you blow your limit, your dream property could become your nightmare liability as you struggle to make mortgage repayments that are more than you've actually budgeted for and can afford. So set your limit after you've done some solid research and don't go over it ever. And lock in your worst stretch limit in advance, which is your absolute walkaway maximum price, and then aggressively bid to that point and no higher. Remember, it's like someone sprinting headlong to the edge of a cliff. Next, control your emotions.

You need to control your emotions at auctions because emotions can actually cost you money. The number one auction mistake you'll pay with interest is getting carried away and paying too much for the property. That's a mistake that you could end up regretting for a very long time. But it can be hard to stop yourself blowing your limit when the home of your dreams

is about to slip through your fingers. The trick is to stay a little detached. If you're too attached to the property, it's easy to get carried away. Try to remain philosophical. Remind yourself that you're not likely to win every auction and there's always more than one property out there that's going to meet your needs.

And again, expect the unexpected because auction bids can jump very quickly. Or as I keep saying, engage a professional buyer's agent to do the bidding for you. Next, you need to watch body language. Once you've got your paddle on your hand, stand in a position that allows you to keep an eye on the competition.

According to renowned auctioneer Damien Cooley, non-verbal cues offer valuable glimpses into rival buyers' behaviour. One of the biggest mistakes that buyers make is that they don't watch their competition. If you've got a bidding sequence that's going something like $800,000, $810,000, $820,000, and it slows down, and a buyer tries to go $825,000 as they've got their mum and dad with them and they're all looking at each other and having a conversation, that's a very good indicator

that the buyer is close to reaching their limit and they're discussing with the family whether they're out or whether they should go another $5,000. In the event that such a buyer comes back with a desperation bid of $5,000, Cooley recommends immediately placing a high bid, a signal of intent that he likens to a knockout blow. So pay close attention to body language. Understanding how bidders' behaviour at auction can reveal when a buyer is actually breaching their limit. Couples are guilty of some of the biggest tells, which can include having a discussion mid-auction, making a phone call if the other partner isn't present, or even making eye contact with each other. So basing your maximum bid on due diligence rather than emotions,

having confidence in your decision and being prepared to walk away are the keys to controlling these signs. If you go to the auction with conviction it'll show on your body language and your competitors can read it too. Cooley says that reading the body language of the competition allows buyers to know when to deliver that knockout bid. If they look at each other that's a sign that they've come to the auction with a preconceived number and they're either at that number or they're very close to it. That's the point where you as a buyer should increase your increments. It might take that buyer 30 seconds or a minute to make the bid and they're hoping that you're not going to bid again. If you're able to crush their hopes immediately with a counter bid

it sends a message to them that they're not going to buy the property. So buyers body language as they gather for an auction often reveals the players and the pretenders. You can tell who's nervous, who's aggressive, or who's ready to go. So to summarise where you're at so far in the auction process, you've attended lots of auctions for similar properties, especially with the auctioneer that's going to be selling the property you're interested in. You've pre-set your dream price, your fair price, and your walkaway price limits, while avoiding round or even numbers. And you've organised a full finance pre-approval with a comfortable buffer. You've also completed a professional independent building and pest inspection, and your conveyance has reviewed

the property contract and you've negotiated and agreed any condition variations in writing in advance. And then on the day in the lead up to the bidding war, you've adopted a confidence success mindset. You go and expect in the unexpected. You understand the auction process and jargon fully. You've arrived early and registered early. You're remaining calm at all times. And if you're smart, you've engaged a professional advisor to represent you to eliminate your emotion as your biggest risk. And you've prepared yourself to avoid the seven deadly don't sins of auctions that I've discussed previously. To adopt the right auction strategy, you want to start by getting a handle on whether the auction pressure is on the buyers due to high competition

or whether the seller is under pressure. As the dynamics and power balance are different with every auction and you need to adjust your approach to suit the circumstances. To assist with this, you've arrived an hour early you've sized up your competition and chosen the best prominent vantage point up the front close to center stage that's just to the side of the auctioneer so you can banter with them and establish your confidence while also reading the play and watching your competition's body language then remember to stick to your predefined walk away limit and never go over it and control your emotions at all times by staying detached also be mindful of your own body language which needs to exude quiet confidence and pay close attention to the body language of

the auctioneer and the other bidders looking for signs of nervous glances and anxious chatter that indicates your competition is at or near their bidding limit so that you can consider delivering a quick confident knockout counter bid to crush their hopes. This pre-bidding preparation will ensure that you're fully prepared, calm, comfortable and confident on the auction day because auction performance is all about feeling and projecting confidence. In the next installment of our auction winning series, we'll start unpacking some very specific bidding tactic options.

So keep an eye out for that one. That's more food for thought. I'm Bushy Martin from Know How Property Finance. Stay tuned for more. Well, that brings us to the end of this week's show. A big thanks to our special guests, Andrew Morello, Lauren Robertson and Arjun Palliwell. And a reminder that you can see all of our shows at realty.com.au. And while you're there, make sure you check out one of Australia's

most extensive range of properties for sale from over 7,000 agents nationally. Thanks again to realty.com.au and BMT Tax Depreciation for their ongoing support. I'm Bushy Martin from KnowHow Property Finance and I'll look forward to seeing you again next week. Miss something in this week's show or want to catch up on past shows? Do it anytime at realty.com.au where we connect buyers, sellers and agents differently.