PODCAST Real Estate

4510TV Podcast Real Estate Market Update

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Read the Real Estate Market Update Podcast TRANSCRIPT

Scott Lachmund: Hi, Scott Lachmund and welcome to the 4510TV podcast series. With me today for our very first episode, Robyn Lachmund, company Director of Richardson and Wrench Real Estate at Caboolture. Good morning Robyn.

Robyn Lachmund: Good morning Scott.

Scott Lachmund: Robyn, for our first podcast of 4510TV for our listeners out there, not viewers this time, listeners for podcasts. We have had a good journey with 4510TV, over five plus years now supporting and showcasing things in the Caboolture region and surrounds, content made up from our ourselves as real estate agents. Myself getting out and involved and engaging with our community, and also content received from other community organisations where we really try to showcase what they’re doing in their charities, what local events are on, and all in all just the good things happening around our wider region.
Today, you’re no stranger to being interviewed, Robyn. We’ve had you through 4510TV for our real estate market updates, but today being a recording and for our listeners, not viewers, we’re in the studios of the boardroom at Richardson and Wrench at 87 Morayfield Road, Caboolture. Robyn testing equipment and really giving this first podcast a real hot go. Saying good day to out listeners, and let’s start with a real estate market update. And today being early October, where do we sit in the real estate market?

Robyn Lachmund: Yes, thank you Scott. And it is good that we’re trying a another stream of media and information giving and sharing with our community, because as you say, it has worked very well for us with the 4510 TV. And I think in this day and age, even oldies like myself, we’re still looking for that communication and still searching for outside information with a product like real estate, that perhaps some people are not involved with in a daily basis, a monthly, yearly basis. Sometimes it may be 20 or 30 years before people change from one property to another. So I think any information that we can share is of value, and I’m quite excited to think that we’re going to be starting to do this.

Scott Lachmund: Yeah, the podcasts, as we know around the world, it’s becoming popular. It’s another stream of media, as you say, and I think it’s just accessibility of information. So, whether you’re catching a train or you’re jogging around the block at the moment, listening through podcasts is becoming popular. And so we’re in this space without further delay and without boring our first episode, let’s talk real estate. Let’s talk about the guts of real estate. As I mentioned, we’re at the start of October. We’ve seen a busy period from end of financial year, June, July through the last quarter. How do you see the local real estate market?

Robyn Lachmund: Well, our local market here is probably the best that I have seen in over 30 years. We’ve always done well in Caboolture. We’ve slowly sort of climbed with the market from interstate advice that we’re given, that Caboolture has that rarity of having plenty of land. So our builders are building, the land’s being developed. There is still job opportunities locally. But having said all that, transport back into Brisbane is so readily available to us as well. And I think that’s why this corridor of Moreton Bay has done so well and I believe we’ll continue to do well. I think we’re just now starting to see a revival of real estate in the Moreton Bay region.

Scott Lachmund: Yeah, good point. Revival, because as you know, our 25 year history in local real estate, we’ve seen the roller coasters, we’ve seen the dips and troughs in the market. And probably, let’s think a decade ago we were coming off the back of a recession or global financial crisis. We took a big dip and maybe over the last couple of years when you and I have discussed real estate market updates, we’ve talked about a recovery in the market or a repair in the market. But now we’re really coming up the hill and almost at the top of the hill where we’re enjoying good turnover, good volume of sales.
But as you say, it keeps coming back to those affordabilities, those locations, the transport corridors, everything accessible to us in the wider Caboolture region is really putting us on the map at the moment. And I hope you’re right, the next 12 months is going to be very interesting of how that plays out, because with demand and with all the affordability there is talk of, it can only be one thing that prices do eventually go up.

Robyn Lachmund: That’s right. A lot of people talking about the capacity to borrow money at the moment and the rates being so, so low. However that’s not the only thing that affects real estate. There still has to be job opportunities, there still has to be education. And we’re on the forefront of that in Moreton Bay because we’ve got quality private and public schools, colleges and schools, available to our families, and we’ve got space. And one thing that Moreton Bay has always been very, very good at is providing some open spaces. And I can see that as we look at future planning for the area, I can see that that is a trend that’s going to continue.
A lot of people complain about, “Oh, we’re getting so many houses, the streets are packed with cars. Too many people. Let’s shut the gate out on the highway, don’t let any more in.” But that’s, we shouldn’t be looking at it that way because whatever people are coming into our area, everything within the area prospers. We get better schools, we get better hospitals, we get better shopping. We still enjoy the lifestyle, that’s never going to change. From the mountains to the sea, the lifestyle isn’t going to change, but we are getting all those other things that fall in line with growth. And I think you have to go into it with open eyes and just stop for a moment one day and look around and see how blessed we are to live in this location.

Scott Lachmund: Most definitely. Personally I’m a selling principal as well as managing the business here for Richardson and Wrench. And even yesterday I met some buyers at a property new to Caboolture, relocating from Melbourne. And they just couldn’t believe the value that they were getting in a four bedroom home on a three quarter acre block in a very nice neighbourhood, could not believe that they could purchase and secure a property of that nature under $600,000. And then I went on to explain, not only was that a good thing, but also welcome to Caboolture. As I as often say, “Welcome to Caboolture.” We have all of those attributes that you’ve just mentioned and surely they’re all positives when you’re coming from outside the region.

Robyn Lachmund: Yes. I think we don’t realise just what we’ve got here. You become complacent about being able to jump in the car and go 20 minutes to Bribie Island. And even though we don’t have daylight saving in Queensland, if you were looked yesterday afternoon, say 5:30, six o’clock, it was light, we had beautiful weather. And people finishing work, jumping in the car, going over having fish and chips on the beach. There are very, very few places that you can do that.

Scott Lachmund: Yep. Real estate related. I can talk all day and I know you can too. This is our new first attempt at the podcast series for 4510TV and I’m really excited about this opportunity. But instead of talking all day, I still want to keep these podcasts to a reasonable a time limit so people don’t get bored of us and switch off. But for today, real estate continues to be active. I think you’ll always have success if you’re selling a property, you’ll always have success if the presentation’s right, if the location’s right. And if it’s priced right, you’ll have no trouble selling in our current market.
Let’s touch on buy behaviour, because we talk about selling real estate, but the buyers out there. How can we describe by behaviour at the moment in the current market?

Robyn Lachmund: Well, in recent years there has become so much more available through media and online that a buyer can research. The buyer these days almost has the same information that we have as an agent. They can tell you what’s been selling in the neighbourhood, what the values have been. And they can almost without question, know what a property is worth before they even step in that front door and think about making an offer.

Scott Lachmund: Along that line, maybe sometimes too much information is available to a buyer.

Robyn Lachmund: Yes.

Scott Lachmund: And we do see the behaviour that someone … They do their research, they look up 123 Smith Street. They see all that history of when it’s sold, what it sold for. They then in their mind maybe think that they can come in with the experience suggesting that they would offer $20,000 less than the asking price. How do you personally combat that behaviour when someone’s offering lower than the asking price?

Robyn Lachmund: Well, it’s the same old story for years and years and years. You’ve got to compare apples with apples, and that’s very difficult. Each property, even though maybe in a street where six houses have sold in the last six months, every one of those six houses has something different about it. Has a different quality, a different value that’s attached to it. And that idea of coming in and negotiating hard, it’s wrong, it’s a perception that people have but it is not real. And if you’re serious about buying and selling real estate, you engage with an agent, you talk, you talk it through, you look at the different values in the area, and then compare your property to it and then you market it accordingly. But there is no need these days for people to come, for a buyer, to come into a property and try and knock it down 20 or 30,000.

Scott Lachmund: Because it’s not substantiated-

Robyn Lachmund: No.

Scott Lachmund: … the information available to them. Sometimes they just say, comparing those apples with apples, who knows what that variable value is in the middle, and all up to negotiation at the end of the day.

Robyn Lachmund: It is. And that’s why you have an agent.

Scott Lachmund: Correct. So along the real estate line and with the technology of podcasting, I want to call Peter Lachmund. Viewers or listeners may know him as my father, your husband, but Peter Lachmund is a pioneer locally as a businessman, business experience of 30 years. And one thing that dad or Peter has always been brilliant at is money and general financial economical information. He keeps abreast of the global market, the local market, the national market. I’m actually going to call Peter on the line, he’s not in the office today. I’m actually going to call him on the line, and I just want an update from Peter of where he sees economics and finance at the moment.
Now for our listeners, he can’t give you direct financial information or advice, but just generally speaking, I’d love dad’s take on our current economy. So let’s get him on the line.

Robyn Lachmund: And the global economy, because down the line we are affected.

Scott Lachmund: We’re just giving him a call. So, let’s just get him to pick up.

Peter Lachmund: Peter Lachmund.

Scott Lachmund: Hi Peter. Scott and Robyn Lachmund from Richardson and Wrench Real Estate, and also podcasting for the first series on 4510TV. How are you going, Peter?

Peter Lachmund: Well, congratulations.

Scott Lachmund: Thank you.

Peter Lachmund: Very good, thank you.

Scott Lachmund: Technology is with us, so we want to get you in on this triangle conversation. And what I’ve just pre-framed with our listeners is that you’re a legend and you’re a beautiful man, but you’re a person that studies economics. You keep abreast with financial information both globally-

Peter Lachmund: Situations, yes.

Scott Lachmund: … nationally and locally. I’ve already pre-framed with our listeners. We can’t give financial advice, but I want your personal take on where we sit with our local economy, our national economy, and what’s happening globally. What’s your take and what would you suggest to our listeners today of where the current status quo is?

Peter Lachmund: Scott, the sky is not falling in like a lot of the pundits would like to think. Bad news sells, everyone wants to listen to bed news unfortunately. But the good news is, as an economy, I think Australia is a very strong economy. There’s a lot of things that we can’t influence in any way, shape or form with the overseas economy. Talking regarding China and USA with the spat that they’ve been having for quite some time. There’s going to be a general election in the US next year and I would suggest there’ll be a lot of political moves to fix up that spat, for use of a more stronger, words between the China and USA, which is going to influence the whole world. Simple as that.
But we here in Australia, I think we’re still insulated. We went through the two oh oh seven GFC problem and we came out of that relatively unscathed compared to the rest of the world. And at the moment with our political leaders doing what they are doing to try and increase the economy, the RBA with the dropping of their interest rates I firmly by probably March next year we’ll be sitting at 0.25% basis points. I can’t see a big difference in the economy at the moment with the dropping of those interest rates. Biggest problem we have is our CPR where the Reserve Bank was looking at 2.5 and the World Bank was looking at 2.5 for [inaudible 00:14:53] the next 12 months. They dropped that to about 1.7, which isn’t a good point but we here in Australia, I think we’re doing pretty well despite that.

Scott Lachmund: So, when you quote that Peter, those figures of the basis points, et cetera. The whole idea from what I understand economics, they drop the interest rates, they drop the basis rate so that it encourages more spending. So if people have got that extra $20, $50 in their wallet, they’re going to spend that retail, goods, otherwise, and that’s what that money available can do.
With all the talk about the banks and everything that’s happened in the last 12 months with Royal Commission, et cetera, banks were put on the back foot. They have then come out in the last month or so offering discounted rights and, “Come and do business with us again.” But I don’t think that’s a true representation, because I know through our real estate business we’ve got buyers looking to purchase property that believe they’re in a strong position to borrow, where they’ve got savings, a deposit. But then they go to the bank and they’re still jumping through hoops. What’s your comment on that?

Peter Lachmund: Look, the Royal Commission was great, it made the banks wake up a bit. But that hasn’t passed on. The 75 basis points have been reduced by the RBA, obviously haven’t been passed on the banks. I think the banks had a profit taking on that scenario. If you’re looking at your normal 75% drop, we’re probably getting somewhere in that 55 basis points as far as consumers are concerned. But what we’re finding, Scott, like our business in our area is going from strength to strength. And we’re lucky in as much that we still got affordable housing in this area and we still got people that are prepared to switch banks or brokers to get that best deal.
And every other day on the TV the economist are coming out and saying, “Look, if you’re not getting a certain low interest rates, change banks or change broker or change building society.” I think that’s a very good scenario because of late there’s plenty of good buys in the marketplace, not only just in our area, but all areas. And I think people that are buying at the moment are making a smart move, and that’s not a real estate agent speaking. I just kind of see things changing in the foreseeable future, that’s all.

Scott Lachmund: Yeah. Lovely. So prior to getting you on the line, Robyn and I discussed and we always are excited about the affordability of our region and why-

Peter Lachmund: Absolutely.

Scott Lachmund: … we’re so busy with our volume of activity. You know where we sit as a business compared to fellow agencies nationally.

Peter Lachmund: Yes.

Scott Lachmund: It’s something that we celebrated a bit.

Peter Lachmund: Well, at the moment it …

Scott Lachmund: Yeah.

Peter Lachmund: Well, in the Caboolture area and everyone says Caboolture area lower socioeconomic area, this, that and the other. I think that’s a lot of rubbish myself. At the 2018, 19 awards we at Trevor Hall took out number one position for most number of sales for the year against all the national competition. I think we had Sue at number four and [Cheree 00:18:17] at number 10, which we had three people in the top 10 for number of transactions.

Scott Lachmund: Plus myself at number seven, don’t forget.

Peter Lachmund: We’re also … I beg your pardon?

Scott Lachmund: Plus myself at number seven, don’t forget.

Peter Lachmund: Well, you tell enough people that, Scotty. But seriously though, for a region like us with a number two nationally as an office. And I think we just missed out on number 10, we were running 11th for value. This last quarter, just going through the figures this last quarter, once again Trevor is number one in a number of sales, and Sue and now Linda are in the top 10 for a number of sales. And we’re now, I believe, we’re running it at number eight for value, which for an area like Caboolture is terrific. I’m just, like the last three months in sales, we’ve done in excess of 43 sales. We’ve done excess of $18 million in the last three months, which brings us into that scenario where we are in the top 10 as far as nationally concerned, as far as income and also a number of sales.
So for Caboolture that’s pretty good. Probably our peak is from 2018 to 2019, overall of business increased by 9.64%. Everyone’s saying how tough it is in real estate, et cetera. We’ve been here 25 years, we’ve got 23, 24 staff now. So and next Monday we’re putting two more staff members on in our property management division, which is going from strength to strength. So as far as negativity in the marketplace and prices and all the rest of it, we can only go on what we see in our own office here. And the business that is coming in our doors and we’re increasing not only profit-wise, finance-wise, but [inaudible 00:20:06]-wise. And I kind of [inaudible 00:20:08] that a good future for us in many years to come, the way things are going, especially with the growth that’s happening around here.
But getting back to worldwide, I think a lot of people don’t appreciate just how lucky we are to live in this country with everything that we have here. Yeah, we have the good, the bad, the ugly and it’s on the TV every day. But boy, we are so well positioned in the world economy that I don’t think anyone should be taking this comments from overseas or locally and putting that into their own lifestyle.

Scott Lachmund: Yep. Spot on.

Peter Lachmund: So that sums it up.

Scott Lachmund: Peter Lachmund, General Manager at Richardson’s Caboolture. Thank you for your comments.

Peter Lachmund: Thank you.

Scott Lachmund: I wanted to get that economic point of view and probably two main factors there, our affordability is continuing.

Peter Lachmund: Absolutely.

Scott Lachmund: Local business is strong, and borrowing money, if you come up against a hurdle, simply look at the competition. There’s lots of availability of lending out there and maybe it might-

Peter Lachmund: Absolutely.

Scott Lachmund: … maybe it might mean getting away from the major forum and seeking an independent broker that has access to multiple lending situations. That’s good advice, Peter. Thank you very much.

Peter Lachmund: Okay, son. Thank you.

Scott Lachmund: Okay. We’ll let Peter go there and back to Robyn in our little studio that we’ve created for our first podcast series on 4510TV. Any final comments there of what Peter’s commentated on, Robyn?

Robyn Lachmund: No, we’re fortunate as a family and a business, Scott, that we’ve got your dad keeping an eye on the figures, and he can go back 25 years and tell you month by month what the sales have been. And that’s his strengths and that’s why he’s in that position. And then has left to you and I to encourage the sales people to go ahead, and we’ve certainly done that. And and from your point of view, moving up to Principal of the office that you can now lead that sales team successfully into the future for us.

Scott Lachmund: All righty. Our first podcast, 4510TV podcast series, episode one. Robyn Lachman, Director of Richardson and Wrench, and myself, Principal Licensee of Richardson and Wrench, our family business, 87 Morayfield Road. Any information I’d suggest stay tuned because the podcast series is here. And our next episode we’re going to be talking to Karen George, Property Management Director and get the uptake on where the rental side of real estate sits at the moment. And we’ll also have a special guest, Julie Murray, our Business Development Manager for rentals and property management. We’ll get her take on what’s happening on the ground in respect to tendencies and applications.
So all in all, for our listeners, thank you for tuning into our first episode and stay tuned. We’ll be back on the airways.

Robyn Lachmund: Thank you, Scott.