20 Dec Chaos creates opportunity – Jane Slack-Smith
Market chaos brings with it opportunity. Jane Slack-Smith says that this is a time when we see wealth move from the un-educated to the educated. Are you aware of the opportunities that are there right now? We discuss them with Jane and talk about the best time to act.
Kevin: Always looking for opportunities and there are lots and lots of opportunities emerging, no matter what the market conditions are. That’s gonna be the topic of my conversation right now with the Jane Slack-Smith from Your Property Success and Investor’s Choice Mortgages. Hello, Jane.
Jane: Hey, Kevin.
Kevin: Yeah. There are opportunities everywhere aren’t they? What are some of the ones that you’d like to highlight for us as we sort of look back on 2018 and look ahead to 2019? What are you suggesting?
Jane: Look, I love this time when there’s chaos going on and there’s all these questions and people are asking, “Should we buy? Should we wait? What’s gonna happen with the Royal Commission? What’s gonna happen if labour gets in?” This confusion is where we find times of opportunity, but most excitingly, this is where we have the major transference of wealth going from the uneducated to the savvy investor. That’s what I would love to be able to take action on.
Kevin: Yeah, well all of the fundamentals are good for the property market, yet consumer confidence is down. We can see that in the low clearance rates. Probably the lowest they’ve been in a long, long time.
Jane: Once again, you look at the opportunity, we’re reading all of the news articles around this 50% clearance, that only 50% of properties are selling. I look at that from the fence that there’s 50% of people who are walking around with their properties still in their hand at the end of every weekend going, “Now I’m open to negotiation.” This puts us in the seat of being able to negotiate better deals as well.
Kevin: What are you suggesting there that we … obviously we don’t bid at auction, or wait until they pass in? Is that what you’re suggesting, Jane?
Jane: No. You know, I’m one of those people who don’t time the market. I don’t play with fancy auction techniques. I think you should buy when you’re ready to buy the best possible property that you can. However, what we are seeing is this opportunity. I think we look at Australia traditionally. We kind of check out December and January. We kind of have the run up to Christmas parties and then we have the January where we get over the Christmas parties. We don’t come back into the market til February. If we’re gonna have an election call between February and May, we really have this time of opportunity.
Jane: I think the most interesting thing here is that people are going to look at the potential of the labour of government getting in. They’re gonna look at the changes in negative gearing. They’re gonna look at the changes of capital gains tax. They’re going to actually see that if they don’t get in and grandfather these policies now, they may never be able to access them. I think we’re gonna see the market start surging again in February, March, April, unofficially, but as you said, the confidence is not there in the economy. I think there’s going to be this time where people are gonna jump back in. I would be saying to people location matters. Location is the most paramount thing about everything. You still have to have a great location. It’s not about just jumping in. I think there’s gonna be great opportunity in the next two months before everyone realises that they’re gonna have to jump into the market again.
Kevin: Yeah. Here we are, sort of the middle of December. We’re about to go to Christmas. You’re saying put your foot down on the pedal. Look for those opportunities ’cause you’re right, real estate agents start to go to sleep. They go on breaks and people actually pull their property off the market. There could be some good buying opportunities. I’ve actually sold a house, would you believe, Jane, on Christmas Eve.
Jane: I don’t doubt it. Look, we have a service where we give people an indication of where to buy, what suburbs suit them and then I’d point to buyer’s agents that’s an expert in that suburb. We had a client come through. Within three weeks, we found an opportunity for her just recently $100,000 below her buy price. The buyer’s agent was ecstatic ’cause it’s the first time in four years he could buy under a million dollars in this incredible suburb. There’s these opportunities that people can jump in quickly and get on the back of. I just think it’s … I can’t yell the message loud enough. This is the time when the wealth transference happens.
Jane: Those who take the opportunity and buy well are the ones who are gonna be great in the next few years.
Kevin: Well spoken. Very inspirational, too. Jane Slack-Smith, my guest from Your Property Success and Investor’s Choice Mortgages. Thank you for your time, Jane. We’ll talk again soon.