Ep 32. Welcome to 2023!
Welcome to 2023! In this episode, Michelle introduces us to a new year and what is in store for the property market.
Here’s what you’ll learn from today’s episode:
How the property market has started for the year
The new property trends for 2023
Why falsifying information and documents can be serious
What the RBA is likely to do over the coming months with the cash rate and how to manage this
Speakers in today’s episode:
Michelle May - Michelle May Buyers Agents
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Please note that any views or opinions presented in this podcast are solely those of the speakers, and do not necessarily represent those of any business. These views and opinions are general in nature, and do not take account of your personal objectives, financial situation and needs. Please consider whether it applies in your circumstances and seek professional advice wherever appropriate.
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VIEW TRANSCRIPT
Hi, and welcome to another episode of the Buy Your Side podcast, the property podcast to help you make smarter property buying decisions.
Welcome to 2023, and welcome to the first episode. I know it's February, but I've got lots to tell you. My name is Michelle May, if you didn't know already and I am the principal of Michelle May Buyers Agents here in Sydney
Whilst it's February, there is a reason for that because normally the property market doesn't really start until the end of January, but we have been so busy, my team and I have had so many enquiries and we've been looking at so many properties that I haven't had a minute to sit down and have a chat with you about what's been going on.
So my apologies for the delayed start, but let me explain to you what I have been seeing, and hopefully you can use it to your advantage when you go out to look at property.
So obviously there's been lots of articles. It never stops really about what is happening in the property market and lots of property prices have obviously come down across the country. But what we are seeing in that 10km radius of the CBD here in Sydney, is that actually good properties are still attracting fairly large numbers of people looking to buy and the property market started much earlier than usual like I said. I've been talking to agents and also seeing myself having to queue up literally outside the door with lots of people looking anxious and checking out the competition. And this has been across the board, which is interesting because I've also been looking at apartments and we all know that the apartment market works very differently to the housing market, but even with apartments, I've been seeing “the good ones”, as we like to call them, the ones that I think have great potential, a good aspect, they’re in a quality building in a quality location. I've seen lots of people queuing up, and that may have to do with, of course, the change in a stamp duty to the option of having land tax instead for those who are first home buyers. I think that's definitely been on everybody's minds, and I will be doing a podcast with James O'Brien from Shore Financial on that topic on the next episode, so watch out for that one, on how that can help you get on the ladder.
But I think it's also because there's been such a lack of stock since March of last year, and that continues to be the case. Overall, there is a shortage of about 20 to 25% compared to previous years. So that's a significant amount. So a fifth or a fourth, less properties to look at and obviously that means more people are coming through the properties that are currently for sale.
So what I would say to you is don't panic. You know, the RBAs obviously indicated that they're going to continue increasing the cash rate, and that will have an effect on interest rates also for the future. So make sure that if you are interested in buying your first property or your second or third property this year, that you work with a really good broker who will calculate those rises and that you are still comfortable when it is the worst case scenario. Because no property, like I always say, is worth eating baked beans for.
But one thing that I was asked to comment on the other day, and I wanted to share this with you is that a recent Finder survey showed that one in eight people falsified details during the home buying process. With 4% of Australians lying about their income, 4% lying about their debt, and 9% lying about their savings.
Now, can I just say, please don't do that, because ultimately even if you get the pre-approval that you are hoping to get, you're still going to have to pay it back. You're still going to have to have that mortgage repayment weekly, fortnightly, or monthly and if you're lying about income or debts then you're going to get yourself in strife very, very quickly.
Not only that, you're likely to get caught anyway. Last year in South Australia, a man was found guilty of handing in fake pay slips to banks on behalf of clients to help them secure home loans, and he received a suspended jail sentence of four years and nine months. And of course there's a very famous story in 2017 of a Melbourne-based mortgage broker who pled guilty to conspiring to defraud financial institutions by $170 million through falsified documents for home loan applications, and received a five year jail sentence.
Ah, gosh, you must be pretty committed if you are going around falsifying payslips, bank statements as well because you're going to have to go back three months because you have to always supply three months worth of bank statements to show that falsified income as well. So I don't recommend it people, I mean please make sure that if you commit to such a huge thing as a mortgage, A) make sure you find the right property that is worth buying and B) make sure that you are comfortable repaying the debt.
I'm going to go out looking at more properties today. I'm going to keep you posted, I promise there'll be more episodes coming in the coming weeks. As always, if you have any questions, if you want to discuss something that's been bugging you or you want some clarification around, there's lots of things in the real estate industry that people don't know about drop me a line at hello@buyyourside.com.au.
Follow me on TikTok I have some more information on there and obviously also on Instagram. Leave me a review, let me know what you think. I'd love to hear your thoughts. Thanks for listening to this first episode, and talk to you next time. Thank you.