Property Hub - Investment Insights & Inspiration - Realty Talk: Why verbal offers are risky + 1 plus 1 = 3 + The BIG question

Episode Date: April 7, 2023

In the midst of the continual deluge of fear-driven negative news and crippling uncertainty that’s being peddled around rising interest rates, the mortgage cliff, runaway inflation, falling property values, and the always imminent but never eventuating property crash, it’s understandable to be thinking, should I buy now or wait?  PK Gupta from Australian Property Mastery joins us to help you answer this perennial question. If you’re a property investor who’s struggling to make ends meet or a renter who’s struggling to get an affordable rental, then Ian Ugarte’s unique co-living solution may be the answer to your prayers and he joins us to reveal the details. It is tempting at times to make a verbal offer or express interest in a property but that could be opening you up to a risk of missing out or paying too much.  Today in the show Cate Bakos has the good oil on that one and if you are looking for a property right now you don’t want to miss this gem. RealtyTalk is part of the Property Hub podcast channel, your home for property investment insights, inspiration, and stories from Australia’s top property experts, investors, leaders, and analysts. Subscribe now to get every RealtyTalk episode delivered to you each week for free, and also get full access to Get Invested, the leading podcast for Australians who want to unlock their full ‘self, health, and wealth’ potential and get inspired by the stories of investors, founders, and entrepreneurs. Subscribe to RealtyTalk on the Property Hub channel: Apple Podcasts | Spotify | Google Podcasts | Email Property Hub is a collaboration between Bushy Martin from KnowHow Property, Kevin Turner from Realty, Andrew Montesi from Apiro Marketing and Apiro Media, and Australia’s largest independent podcast network DM Media. Business and partnership enquiries: [e-mail] 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. Hello once again and welcome to the show. Well, in the midst of the continual deluge of fear with negative news and crippling uncertainty that's being peddled around rising interest rates, the mortgage cliff, runaway inflation, falling property values and the always imminent but never eventuating property crash. Well it's understandable to be thinking

should I be buying now or should I wait? P.K. Gupta from Australian Property Mastery joins us to help you answer that perennial question. And if you're a property investor who's struggling to make ends meet or a renter perhaps who's struggling to get an affordable rental, then Ian Agate's unique co-living solution may just be the answer to your prayers. And he joins Bushy today in the show to reveal all the details. Hey, it's tempting, isn't it, sometimes to make or even want to make a verbal offer or perhaps express interest in a property. But you know, that could be opening you up to a risk of missing out or even worse paying too much money. Well today in the show Kate Bakos has the good oil on that one and if you're looking for a property right now

I can tell you you won't want to miss this gem. All that coming up in this week's show so let's get underway. Property deductions can save you thousands of dollars each year. To make sure you maximize deductions you need to work with the most experienced quantity surveyor in the country bmt tax depreciation is the leading specialist in the industry they've completed over 700 000 tax deduction schedules for residential investment and commercial properties australia-wide bmt guaranteed to find double your fee in the first full financial year deductions call bmt on 1-300-728-726 today for an obligation free quote Now, should you buy property now or wait?

It's a question that's constantly being asked in the midst of the continual deluge of fear-driven negative news and the crippling uncertainty that's being peddled by the mainstream media. And it feels like a day doesn't go by where the nightly news, newspaper headlines and our social media feeds aren't paralysing us

like rabbits in the spotlight as we're constantly reminded of doomsday predictions on all things property. There's the relentless, unfounded hysteria about rising interest rates, the mortgage cliff, runaway inflation, falling property values, and the always imminent but never quite eventuating property crash, along with a whole bunch of geopolitical tensions right around the world. So you can always find an excuse why now is never the right time to buy property. But is the fiction supported by the facts? Should you buy now or wait? Well, to add a

balanced perspective to this frequently asked question, we're joined by Phuket Gupta, or PK, who's an active property investor and educator as the Managing Director of Consulting by PK. He specialises in helping investors from all over Australia to buy property all over Australia by accessing a unique data-led strategy that combines high growth, high cash flow residential property alongside highly profitable property development projects to help you accelerate your passive income. So welcome back to the show, PK. Great to be back. Thanks, Bushy. Thanks, PK. Well, it's a great subject that always gets a guernsey around these sort of market conditions. So let's start by asking that age old question. Is it timing the market or

timing the market, which is more important? It's such a common question. And I remember like maybe seven, eight years ago when I used to hear podcasts, not necessarily this one, but some others and every single property educator buys agent, anyone who was trying to sell you something will always answer this question the same way that it's not timing the matter that market that matters, but it's rather time in the market. And initially I used to think, yeah, that it makes sense, right? Cause we have to hold these properties over the longterm. The longer we hold them, the more dividends we reap, right? The more benefit we get. But then as I listened to more and more podcasts and kind of started building my own portfolio, I started to

realize that that's actually not necessarily true. And it might be self-serving for people like me who are trying to sell stuff to say it's all about time in the market, not timing the market. Because clearly, let's say you bought in May last year, 2022 in Sydney, or let's say Brisbane or Melbourne to some extent, you'd have lost money. Now, of course, there's always markets within markets, but let's just say on average, you would have lost money. So where's that adage gone? Time in the market. No, you'd rather time the market, right? No, of course it's really difficult to time the market perfectly. No one can really have a crystal ball and say the 29th of August is going to be the bottom of the Australian property market or the top for that matter. But my philosophy

to be clear is that both are equally important. Time in the market is very, very important. Flipping property in Australia, look, there might be many people more intelligent than me. They can do it. But for me, it's a mugs game. The transaction costs in Australia are so hard that to consistently predictably make money by flipping properties, at least I can't do it, right? I'll be honest.

So, you know, that's difficult. You need time in the market, at least seven years, if not more, right? But timing the market is just as important, right? And of course, we can't get it down to the second, the hour, the day, maybe not even the month, but we can get that pretty accurate, not at the national level, but at a suburb level. Okay, so this is the difference. There's always markets that are rising at the same time, those that are plateauing at

the same time that are dropping. So I'll give you an example right now. You know, obviously, Sydney, you can almost pick any market, it's going down within Sydney, you go to Perth, and you've got locations like Marewa, you've got locations like even lower socioeconomic areas like Seville Grove that have gone up $50,000 literally in the last two months, according to CoreLogic. You've got places like Rockingham, which is very popular amongst a lot of investors that are rising at the moment. And we can predict these things based on data. It's not perfect. We can't tell you that's going to go up by 13.75%. But we can say that this

suburb will dramatically outperform this other suburb at this moment in time based on data. So to conclude, both are important. If we take some very high level statistics, we've never had downturn, never had a downturn in Australia property that has lasted for more than six quarters. The average downturn has lasted for about three quarters. The six quarters one was starting in 2017. So if we say that this current downturn is bigger than the last one, which according to the stats, it's already breached it.

So it is bigger. And let's say it's a little bit more than six quarters, then we'd see the national property market bottom around September, October of this year, 2023. But of course, there's markets that are rising right now. So it's hard to say what the bottom is because we can't buy Australia, you can only buy one suburb. Totally agree. And I think the real danger in any discussion around this is the whole idea of a property market and relying on median prices to make those decisions, PK. We won't dive into that right now, but it's a misnomer right there because every property in every street in every area is generally different from every other one of the 11 million properties

around the country. So we're making decisions based on medians and broad areas, I think is fought with danger. But in the context of what you're saying there, the combination of timing the market and timing the market, if you can combine those two, then you're minimising your risk. So I want to now look at the sort of negative side of the overarching question we're looking at here and ask you when's it a good idea not to buy property yeah i don't think this question really ever gets asked or answered properly so i'll try my best uh bushy i don't think it's honestly a good idea to buy property if you cannot afford to have interest rates and by interest rates i mean your average variable lending rate from your bank not the official

cash rate the the lending rate at six or seven percent that's the long-term average so i remember like two years ago when we were emergency quantitative easing settings, I was still advising my clients, guys, this is hugely positive cashflow, but make sure you do your household budgeting because if lending rates ever go to 7%, it was wildly unforeseen two years ago, but we're almost there now, right? You need to be able to hold these properties. You should never have to sell it. You might want to sell a property. You should never have to sell it due to cashflow reasons. So if you can't afford it at that higher interest rate, might not be a good idea to buy it in the first place. And for a lot of people that rules out

Sydney and Melbourne property altogether, because average property costs about 20 grand to hold in those areas. So that's the first reason. The second reason why you may not want to buy a property right now is that you only want to buy in your backyard or only want to buy in a particular location. Like I live on the Gold Coast, let's say my mindset was I only want to buy in Queensland, I only want to buy in the Gold Coast, I only want to buy in Brisbane. Right now in the property market, there's not too many properties that are rising in the Gold Coast, there's not too many properties that are rising or suburbs that are rising in Brisbane. So if I really just wanted to buy in Brisbane for sentimental reasons, or let's say because I'm already capped out with

land tax on every other single state and territory, then it might be prudent for me to say, okay, well, let me just assess the market from the sidelines, six months, 12 months, I can't time the bottom of the market perfectly anyway. So if I start to see some green shoots in the ground, that might be my opportunity. So I don't lose money in the first six months. We always want to make money in the short term so that future growth compounds on the initial growth. That's terribly important in terms of property equity mathematics.

So those are my two reasons of why you probably shouldn't buy a property right now. Yeah, and points very well made. again around that because the locational exercise and the affordability piece is something that I find very few investors spend any time really looking at. And I mean, looking at the true actual weekly holding costs for property, because if it's not affordable once every cost involved in purchasing and then holding the property is concerned, you're not going to last the distance. So very well said. Now let's turn to the future a little bit, because I'd love to get your thoughts on will the market actually bottom out in 2023 given all the media hype okay let me just put my

my uh my crystal ball out let's let's gaze into that like i said just a second ago i think as well if we go by history now history doesn't repeat itself but it does have a tendency to cause or create patterns that eventuate in the future average down cycle in the australian property market nationally for what it's worth is three quarters in 2017 we had the longest one for six quarters upswings go much steeper much harder much longer than downturn so that's good news but if we take history the current property market is likely to bottom out around september october time if history repeats itself now of course we know that interest rates have risen at a record gradient you know it's never risen this much this fast so is that likely to happen is the 2017

you know length of downturn likely to happen again probably not like if i was a betting man which i'm not i would say that this downturn would last a little bit longer let's say into the the rest of the year maybe till november december but i think everyone needs to consider what medians really are everyone needs to consider what property data at the aggregate national level really is and what it really is is basically just sydney and melbourne because the weighted index there's so many more properties that sell for so much more in sydney and melbourne and so therefore the national property market is a reflection of what's going on in those big two capital cities the reality is that the market will likely bottom out earlier in places like adelaide

in fact north adelaide is not even dropping yet okay so everyone every suburb every lga every you know area has its own cycle perth is rising so the question of when will perth bottom i mean it's not dropping so you can't really predict when it will bottom if it's something's not dropping so that that's kind of my thoughts at a national level at a local level um i don't know if that's helpful but i think it's useful and helpful for people to start to think this way even if they can't get to a perfect answer i totally agree and i think the other thing to recognize as you sort of touched on in relation to interest rates is that yes they've risen pretty rapidly but we're only getting back to what the long-term average is we're not even quite there yet so we've been

in this artificial zone and while it's been a while people tend to forget what the the true conditions are and exactly the same applies to property what we're seeing in the softening property is actually very normal for for an old crusty guy like myself who's been in the industry for a long time what I expected exactly what we're seeing now there's no surprise or shock about it it's just a normal part of the the overall movement of property conditions that vary around the country. So extremely well said. The big question, obviously, that everyone's going to be looking at here though, PK, is where are the best opportunities to invest right now? Yeah, sure. I might tackle this from a commercial versus resi, and then let's go into the resis. I don't like to use this word,

but hotspots for want of a better term. So I think commercial property is really becoming very popular because there's a lot of content online for people to become educated about it and what have you. My contention or my argument with commercial property is that the markets typically price it on a yield spread versus the average variable lending rate or interest rates. Now, there's a lot of yield compression that has occurred. In other words, yields have come down, cap rates have come down, prices have gone up in commercial property, and they haven't really reverted themselves just yet. Now, unlike residential, where yield can be terrible, like 2%, let's say in Sydney, but capital growth fantastic, doesn't quite work like that in

commercial. The capital growth or the yield compression or vice versa is almost in direct correlation with interest rates. So with interest rates rising, you'd expect yields to rise. You can get a CBA term deposit at 4%, risk-free asset. Now, the average yield for commercial property, blue chip commercial property, I would argue in Sydney, Melbourne is actually under 4%. So that doesn't make any sense because there needs to be a yield premium, even with Perth commercial, Brisbane commercial, Adelaide commercial, that yield premium means that yields or cap rates need to rise and therefore valuations need to sink. So for what it's worth, always exceptions to any rule and markets where there are markets,

but for my money, residential is a better bet than commercial right now. And we've talked about the markets and cycles and locations and residential, but where I would be investing right now, the best opportunities are where the affordability lies. And the affordability lies most still in Queensland, in South Australia, and in WA. Now, WA, Queensland, you have to be very cautious that you're not overexerting yourself into a mining-led economy. But there are areas within Perth, let's say, that aren't exclusively reliant on commodity prices. Same with Townsville, for example. 10 years ago, that was a mining town, no doubt about it. It's no longer a mining town. A place like even Rockhampton or Bundaberg are no longer one

industry town. So they present opportunities where incomes are very high, where property prices are very affordable. And the data, the balance between demand and supply is very strong. Same with northern parts of Adelaide, even a place like Gawler. Not that I'm saying to go out and buy there, but prices are increasing there. So these are amongst the best opportunities in Australia right now, not trying to time the bottom of a Sydney market and spending $30,000 a year to try to hold that property. Yeah, extremely well said. And I think the important distinction for those listening and watching today in relation to the commercial exercise is that it's become a bit of a flavour of the month. There's a lot more interesting and a lot more information there.

But people do need to realise that the hurdle rates in terms of the equity contribution to commercial are generally significantly higher than what they are in resi. So you just need to bear that in mind. And on the residential front, the key, given that we've just been through this situation where just about every property in every area as a result of the COVID stimulus and the petrol that's been thrown on the fire is actually increasing in value, then we need to be looking at forward indicators rather than lagging indicators as far as ongoing growth is concerned, if you're looking for capital growth. So the sort of return and focus on quality

is now more important than it's ever been. So some really good thoughts there, PK. Look, as always, I want to thank you for these very timely observations and your insights again. And thanks again for your generous time on the show today. Appreciate it, Bushy.

Very grateful. Thanks, PK. Well, yet again, let's remind ourselves that the best time to purchase property is actually every time you can afford to because it's never about when but it's always about what where and how and in our current environment of fear and uncertainty it's good to remind ourselves of the sage words of the world's greatest living investor Warren Buffett

who wisely says be fearful when others are being greedy and be greedy when others are being fearful because in the wonderful world of Australian property with nearly 11 million properties spread across over 15,000 different suburbs and locations where there's a will there's always a way. As long as we continue to live in properties, there's always property opportunities. So if PK's approach has resonated with you and you'd like to find out more, check out consultingbypk.com.au where you can explore his property investment accelerator course, or feel free to watch his very informative Australian property mastery with PK Gupta videos on YouTube, or you can join his Facebook community of the same name. Keep watching and listening to your property hub's trusted voice

for all things property here on Realty Talk. KnowHow has helped over 1,900 homeowners and investors secure more than $800 million 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. Are you a property investor who's struggling to make ends meet as the cost of interest rates and just about everything else continues to rise rapidly? Or on the flip side, are you a renter who's struggling to find and secure a rental that you can actually afford? Well, if you're in either of these camps, then it's cold comfort to hear that you're not alone, because there's thousands of hardworking Aussies that are in

exactly the same boat. But what if there's a new and better way that creates a win-win for everyone? Well, that's exactly what we're going to reveal today, as we're joined by leading property expert, educator and changemaker Ian Igarte who drives the Australian Housing Initiative and Invita Co-Living in his role as Australia's leading micro apartment rooming house and boarding house specialist. So welcome back to the show Ian. Hi thanks for having me Matt. Great to see you again mate. As I sort of alluded to in my intro what are the challenges being experienced in traditional residential rental properties? And as importantly, why is that the case? Cash flow is probably the biggest problem for investors in rental properties right now.

The ownership of those properties, a lot in the last, however, last five years when interest rates were the lowest they've ever been, which made property quite affordable. And people had interest rates were very low. They were getting positive geared properties out of properties of generally aren't positively good and they didn't have to chip any funds in. And all of a sudden, we're now at a place where those same properties after some interest rate hikes have got them to a place where they just can't afford to keep these properties and they're drawing into either a reverse mortgage or using cash, which is ultimately not a good outcome because foreclosures will happen and that'll affect the property market in a very big way. Absolutely. And if you're living

on baked beans and dog food while you're holding on to properties and not enjoying life, you're not likely to sustain it for very long either. So even those who aren't in the catastrophic position are still going to be struggling. So given that context then, mate, what's a solution that you've pioneered? Yeah, I pioneered a solution.

I didn't really pioneer it. It's been around for, you know, day dot. The old style of boarding house, rooming house set up has been around since the you know the last couple hundred years what I did was I brought it to the market in a way that would actually allow people to use it in a modern concept way so rather than having shared areas and shared bathrooms what we brought to the market was a co-living property that is that gives everyone in the house their own space and they just share one communal area so every person will have their own bathroom their own kitchenette their own sitting area their own

bedroom. They share the common kitchen, which no one ever uses, and the laundry for the possibility of washing their clothes, obviously. So the solution here is that we convert those properties to something that firstly gives the people that live in it a saving of one third to one half of their normal weekly rent. The people that own the properties are now getting double or triple the rent that was coming in before. And what we're doing is creating more front doors because we turn one front door into four front doors which then frees up family homes for those families living so we add to the extra housing that's required in the marketplace right now um there's also another solution bushy the negative gearing and that's sell um so it's never a good one to take

especially when you've made a loss for a while and you're holding on waiting to a point where you can get then sell it you know um especially with older house and land packages which you know haven't quite grown in values since the day they bought it and, you know, it hurts to hold. Absolutely. Well, let's drill in there a little bit if we can, Ian, and get you to sort of unpack how co-living works. Yeah, look, there's a few states in the, quite a few states in Australia that have policies that are unknown and unused and unknown. We've had policies that existed in the past and like Kerry Packer has always said or always did say every time they bring in a law they should get rid of law but they don't do that in Australia they just bring in more stuff so

there's these policies sitting in the background that people may not be aware of that have been around for quite a while plus new policies have come to the marketplace so I myself have advised the New South Wales state government the Queensland government councils all around Australia including in Victoria and the new policies are being written in a way because it makes sense right you know we said in the last episode you know where does practical and pragmatic come into this because this is really practical pragmatic and no one take you know none of the politicians whatever take that they are slowly converting it's taken me quite a while but you know I can sit with a minister and explain and you know the New South Wales government

uh they i sat with the you know the chief of staff of housing planning um women youth indigenous and they all said what's the what's the downfall what's the what's the negative tell me what the bad things are and i go there's nothing it's everyone wins out of this so if you can take a an existing house or purpose build a new home and create co-living within it what you're now doing is creating a solution for each property to have its own components and be adaptable as well because it can be used for co-living, can be used for a young couple to rent out rooms to pay down their mortgage, can be used by the family entirely, can be used as standard co-living, can be used as NDIS, can be used as a house and granny flat sectioned and then

it can also be used for that downsizer or what I call an uplifer because every time the kids leave home they celebrate and go back to what it was when they were a married couple, young, married couple, old, living in the same space with a caravan in the driveway and then still renting out and having income. So the versatility and adaptability of what you can do with these properties is huge. Absolutely massive. And as you say, it's really the ultimate in the sort of trend that's been emerging over the last decade or so, and that's the collaborative consumption exercise where you're making much better use of existing assets, rather than necessarily having to create new ones all the time. So I can't see too many holes in that at all. But are there any,

you touched on this already, but are there any risks and limitations of co-living? And are there situations when co-living isn't the right approach? So we found that there isn't an area in Australia that doesn't have the ability to take the extra income that comes from it. The down, the risk is people not doing this correctly. So that is that someone hears this talk, goes off and says, oh, look, they're just talking about share housing. I'll just put all these people in a house. I'll put them in individual leases and then I'll be good. Well, the risk there is you've done something illegally. You don't have the right building classification. Your requirement of insurance on the property is there, but you're

not insured because you don't have the correct insurance. So if something has to be paid out, it won't be. And then the biggest aspect and the biggest risk to all of this is that if you don't get it managed right, you're going to really not enjoy the whole experience. We've become experts in managing these styles of properties because you don't have a huge amount of problems when you set them up right. I have far less problems in our co-living properties than what we do in our standard rental properties. And that's because the management's important and piecing together there's rules that you know make sure that people are doing the right thing um so you know all of wa all of victoria all of south australia all of queensland um you can do

this uh tasmania is still a council application but those states that i just mentioned mentioned are a private certification process new south wales state government we're doing a pilot at the moment um they took my advice and um shelved it and said well we just want to be safe let's run a pilot and see if it works um so you still need to go to council in new south wales to get the approval uh but otherwise the risk is really quite low we've got a negative vacancy rate across the country for all our properties yeah it's uh amazing you've got a bit of uh a few points on the board now with the the time that you've been doing this mate and given the uh environment that we're now in and we continue to move into with the uh you know there's something like 500 000

new migrants coming into the country on either temporary visas or permanent visas. And with the housing shortage we have, what a great way to utilise underused assets at this point to solve a problem without having to spend too much money doing it. I agree totally. There's 13 and a half million bedrooms empty every night. Let's use those better. Absolutely. Well, I really want to thank you again for sharing your groundbreaking initiatives, Ian, and thanks again for your time on the show today. Thanks, Bushy. Well, it's often said that the definition of insanity is continuing to do the same thing over and over while expecting different results so if you're an investor or potential investor who's serious about making a positive difference by reshaping

housing so it's affordable for all again so that you can do good and do well then reach out to Ian and his co-living team at invita.com.au keep watching the property hubs royalty talk your trusted voice for all things property. As one of Australia's most outstanding buyers agents, Kate Bakos has a wealth of knowledge and experience when it comes to helping families secure their dream home or the perfect property to add to their investment portfolio. So who better to talk to about successful negotiation? And this time I talked to Kate about an expression of interest. Is it the same as making an offer? That's up next. Property depreciation is the natural wear and tear of a building and its assets.

Property investors can claim depreciation as a tax deduction each financial year. Depreciation is a non-cash deduction. This means you don't need to spend any money in order to claim it. On average, BMT tax depreciation find residential investors almost $9,000 in first full financial year deductions. Call BMT on 1-300-728-726 today for an obligation free quote. So what does happen when you want to make an expression of interest? How different is that as a buyer if you're looking at buying a property than actually making an offer? Kate Bakos As a buyer's agent, you've probably dealt with this on many occasions where buyers have probably said to you, Kate, I just feel them out. Let's just see if this is the kind of figure they'd

take. How seriously do you take that? I don't like this approach. However, sometimes talking to the agent before you're about to document an offer and just getting a bit of a feel for where the vendor's expectations are and what terms are important to them, it can be a nice way to get the conversation started. But if a buyer is handling the conversation with an agent themselves, I really strongly recommend that they don't put forward a verbal offer or an expression, as you've alluded to, because a vendor can't take that as seriously as an offer that's in writing. It's not binding at all anyway. Not at all. On anyone. That's right. Now, the issue is, there's lots of issues associated with doing it this way. Firstly, if the buyer changes their

mind or they haven't completed all of their due diligence, they're throwing around offers and then they realize that they've either gone in too high or too low or whatever, they've already put a foot forward. Now, if they've gone in too high or they were wanting to retract the offer or go for another property or go for a lower price, that can leave a really bad taste in the agent's mouth because they will likely have been talking to their vendor. So you've got a vendor that's feeling let down, they might be annoyed with the agent and the agent won't feel that they've got a lot of trust in that buyer if this happens again and again.

So I strongly recommend that all offers are in writing and it gives the agent something solid to put in front of the vendor to get them to really consider it. I always find you've got a much better chance of a less pleasing offer being accepted when it's in writing an accompanied buyer check than an expression that's thrown out there. Yeah, lots of dangers in making a verbal offer. You might think, you know, you're doing the right thing,

but why are you really exposing yourself to, you know, not being gazumped? But in a sense, yes, because you're giving the seller the information about what could potentially be your best offer. They can then use that against you. So, yeah, if you're really serious, you know, my advice would be through your buyer's agent like Kate to actually make a formal offer in writing. That's right.

and you can have a little bit of time pressure there if you need to sometimes i do have to say to agents here's the offer it's in good faith it's all in writing however i can't wait for very long we can't wait until tomorrow there's another property that we're keen to to look at as our plan b if this one isn't falling into place for us and how much time do you need i always ask the client the agent how long will you need to talk to your vendor and come back to me when when can Can I expect to hear from you? So give them enough time. But if you have to timestamp something,

then you can do that with a written offer. Okay, next time we're going to talk about auctions and whether or not you should be making an offer prior to auction. I know that depends a lot on the market itself, but Kate will give us her inside knowledge on that in a moment. My guest is Kate Bakos, who's a buyer's agent out of Melbourne, and she's our guest on this series. Kate, I'll look forward to talking to you next time.

See you next time. And that's another wrap. And before we go, make sure you don't miss another episode of your trusted voice for all things property by subscribing to the Property Hub on your favourite podcast player now, where you'll also enjoy the Get Invested podcast delivered to you each and every week. Thanks again to Realty.com.au, BMT Tax Depreciation,

Appiro Marketing, DM Media and Southern Crosshouse Stereo for their ongoing support. I'm Bushy Martin from KnowHow Property Finance, and along with Kevin Turner and the entire Property Hub Realty Talk team, we thank you for getting invested in yourself by investing in us and we 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

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