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EP8 4510TV Podcast – Caboolture Real Estate Market Update

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Scott: Hi, it’s Scott Lachmund. The 4510TV podcast series, episode eight, getting through them on the 4510 series and thank you to our listeners and viewers for tuning in. I hope you’re enjoying the series so far, a variety of topics and we’ve gone from real estate updates to health and fitness. We’ve then gone to work and life balance, episode seven, just before we spoke with JD Xavier about mindset and our mind coaching for building sustainable success. But today in the studios at Richardson and Wrench, our proud sponsor of 4510TV, we’ve got Jarrod Willis, sales consultant from Richardson Wrench Caboolture. Good morning Jarrod.

Jarrod: Good morning everyone.

Scott: Okay Jarrod, we’ve got you on because we want to do a 2019 wrap up of the real estate market in the Caboolture region and who better to talk to then you; a young, up and coming agent, 24 years of age, sold in excess of $24 million worth of real estate at the age of 24. So although you’re one of our millennials, you’re definitely getting the runs on the board, and I believe you know what you’re talking about. So let’s get on with the 2019 real estate market update for our wrap up of the year. What do you want to start us with?

Jarrod: Well, Scott, I’ve done some statistics here and it’s been a big year, a very consistent year throughout the 12 months. First I’d like to start off by saying that the start of the year was a bit of a roller coaster six months. January we had a cracking start to the year and I’ve got quite a few sales out of the way, which was good. February was a little slower, but we went into listing mode then and bought on some quality listings, had a good selling March and then started the rollercoaster again of listings in April. May we finished off the six months again with a good selling month. And it’s borders to a steady end of the 12 months into September; October being our best month for selling.

Scott: Yeah. And October, definitely a cracker, a lot of sales volumes around the area and also for Richardson and Wrench.
Jarrod, you talk about a roller coaster. Is that just a pattern that you see across all areas of real estate? There will be a high selling month and then there will be a high listing month?

Jarrod: Yeah, definitely. We get so busy with dealing with buyers and working on our current stock that we sell the current stock and we celebrate with the sales that we achieve and the next month we go into listing mode and really concentrated on prospecting and getting some more sellers in the door. And that’s where we see that. That roller coaster.

Scott: Yep. Now you’ve got a lot of numbers in front of you, possibly people watching the video, or listening to the podcast. There’s quite a flow there of sales results. Let’s talk to our viewers and listeners about some averages. So I want to know what a three-bedroom house in Morayfield is sold for in 2019 and I want to know what an acreage property is sold for in 2019.

Jarrod: Yeah, sure, no worries. So, probably in the mid tier range, we sold one a couple of months ago, 97 Peterson Road at Morayfield. It’s a three-bedroom, one-bathroom, house on two-acres and we ended up achieving 465 for that. So that’s probably a low tier actually for the two acreage size property.

Scott: Mm-hmm(affirmative).

Jarrod: Going onto the sort of lower tier, we’re selling quite a few one-bedroom, one-bathroom, small unit’s in an over-50s village along King Street in Caboolture here. So that’s a 35-metre squared small unit for $82,500. We’re seeing quite a few of those turnover this year.

Scott: Okay. So the unit market traditionally in Caboolture over maybe the last decade hasn’t been real flash, it’s been pretty stagnant. But yeah, that’s obviously an entry level for mature age person to own their own unit. I’d probably say more of an average would probably be about that 230 to 250 mark for a two-bedroom unit in Caboolture?

Jarrod: Definitely. Yep.

Scott: I mentioned… let’s talk about like a standard four, two, and two. Four bedrooms, two bathrooms, double garage, in and around Morayfield, what sort of pricing?

Jarrod: Yeah, sure. So for a four, two, and two, on around 600 square metres, the average price is around that 350 figure. We had a recent result of 15 Centre Road Morayfield, exactly the four, two, and two, 601 square metres for 356. It was a nice tidy, little investment property that we’ve now sold to a first time buyer.

Scott: Yep. And let’s touch on that. We’ll get to a couple of the biggest sales, but that average price for two and two, Morayfield all surrounds, you’re close to the shops, close to transport, close to all the amenities, that $350,000 mark, we have seen through 2019 more owner occupiers in the market. I think with global and national influences, maybe some political as well. Our investors sat on their hands this year, but the owner occupier market continued to patrol [crosstalk 00:05:29] and that again, without being class conscious, it brings a change of neighbourhoods when owners are moving into properties, renovating them, refurbishing them, dressing up the gardens, and they’ve taken a bit more pride in their homes. That has an impact on the surrounding homes?

Jarrod: Yeah, definitely. Definitely.

Scott: Let’s go to the big boys mate. Some big sales through 2019. Tell us one of them.

Jarrod: Sure. So, talking about some bigger acreage properties. I’m talking about the three-quarter, owner-occupied markets. Some quality large properties with multiple living areas. The pool, the sheds, the works burger; 5 Gheko Ridge, Elimbah, $738,000. That’s four-bed, two-baths with a 10 car garage. And that was just on three quarters of an acre. So just over 3000 square metres.

Scott: And what was that, the 730…

Jarrod: 738, yeah.

Scott: Okay. So probably that top end, based in Elimbah, that would be the top end price for a three-quarter acre property in and around Elimbah?

Jarrod: Yeah, I’d say it caps off around that 750 mark. Yeah.

Scott: Another big one?

Jarrod: Honestly, Sue would be very happy for us to mention this sale of hers; 115 to 153 Saint Road, Caboolture. The house was four-bed, two-bath with a two-car garage, but it also had some bigger sheds. But the land sale was 40 acres, so quite a big size and $1,300,000 was the end result there.

Scott: Wow. 1.3 million further 16 Hector’s [crosstalk 00:07:02] on 40 acres.

Jarrod: Certainly helps the averages.

Scott: Yeah, it does. Right. It does and a great result for Sue Dewar, a senior sales consultant and a licenced agent at Richardson and Wrench, one of our biggest sales for the year.
When we talk about the volume of sales, again, a lot of this property data that Jarrod’s mentioning is pertained to our office Richardson and Wrench Caboolture, and our viewers and listeners would know that I’m the principal and licensee of the company, but also, the host of 4510TV.
We’ve seen a lot of value, but our viewers and listeners can also jump online, to the major websites, real and, they can find out a lot of information these days. Even just Googling an address, for example, 123 Smith Street.
It’s amazing the amount of information the general public is exposed to, so it’s no secret that we can share some of our public details of the business we’re doing because the general public can Google it anyway.

Jarrod: It’s public knowledge, yeah.

Scott: Let’s talk about that public knowledge. That amount of information, if you’re looking to buy or sell in the local market, what would you suggest people do?

Jarrod: Look, buyers are so educated, as you said, they’ll Google the address, they’ll see what it lasts all for 12 months ago. And if we’re going to an appraisal of a property where the sellers may have sold just over 12 months ago and perhaps they’re wanting an extra 50 grand for what they paid for it. We need to be educated ourselves, as the buyers will be, to justify why it’s worth that extra 50 grand or what work has been done to the property.

Scott: Yeah. Good point. Because we come across it as agents and a buyer will come to the property, maybe the open home on Saturday it’s very popular throughout the year. We’ve had good attendance every Saturday through this year that people come to us and they’ll say, Oh, what are they asking? And we’ll say maybe 3 or 350 for example. And they’ll go, well, they paid 320 for it 12 months ago. Why is it worth 350 today?
What would you say about that? Maybe there’s been improvements, maybe there’s been air conditioner…

Jarrod: Yeah, sure. Look, it could have been an investment property before these guys purchased the property and they’ve put some love into the home. They’ve done the gardens, they’ve done curtains, and you know the presentation is 10 times better than when they purchased the property. That always makes a big difference.

Scott: And maybe some of those lower prices, what we call a forced sale. Explain what a forced sale is.

Jarrod: They could have picked the property up well and purchased well and there could have been some stress there with the seller situation and yeah, they’re able to purchase well.

Scott: Yep. Would you say for the Caboolture area coming into the end of 2019, a lot of people are taking a summary or a snapshot of the last decade being 10 years. If we looked at Caboolture real estate and surrounds over the last 10 years, there hasn’t been a lot of growth. We’ve had some roller coasters and my mum, Robyn Lachmund, often says, we’ve repaired from those roller coasters, but we just haven’t seen that exponential growth of houses going up 10, 20, or 50 grand. It stayed pretty similar hasn’t it?

Jarrod: Yeah, it has. And as you said, we’ve definitely repaired in that 10 years time and seeing values back to where they left off in that 10 year period.

Scott: And it’s sometimes hard. Someone might say, well, I bought this house 10 years ago for $350,000, why isn’t it worth $400,000 now? And I think that’s where our information and professionalism comes in. We say, well, there’s been dips and troughs. However, thankfully you’re back to where you started from. And nine times out of 10 that’s better than taking a loss.

Jarrod: In the bigger picture, we haven’t gone backwards.

Scott: Haven’t gone backwards in the big picture.
Jarrod, let’s look at the crystal ball mate. The year 2020, I’m not going to make the joke of having 2020 vision, although I just did. It’s a favourite.

Jarrod: Haven’t heard that one before.

Scott: Yeah, it’s a favourite of ours. But having that 2020 vision, I mentioned at the start of the podcast, you’re a millennial, so you’re in that bracket, the 24 year old. Where do you see real estate in the region over the next 12 months?

Jarrod: Oh, I see it still listing strong and consistent sales. We’ve got a good team here and good backing behind us. So there’s no reason that we can’t continue to go along these averages that we’ve talked about today. So…

Scott: And for our consumers buying, selling, renting, we’re sort of predicting status quo over the next 12 months, yeah?

Jarrod: Yeah, yeah, definitely.

Scott: Okay. Any information you’d like to add?
We’ve done a bit of a wrap up and for our listeners, or we’ve even got the video rolling today, so it’s a bit of shared platform, videos so people can see your moustache, as well as the podcast for listening.

Jarrod: Probably the biggest growth in the area.

Scott: Yeah. Well played, the biggest growth in the area. Your moustache, but, let’s be serious for a second. Why did you grow it? And tell us a bit about the funds you’ve raised.

Jarrod: Sure. So Movember’s always been a pretty serious fundraising event for myself over the previous years. I’ve always shaved the moustache and started again. But I’ve finally got it to the growth that I was happy with and the girlfriend was happy with, so didn’t shave this year.
But, this year, instead decided to do a 60 kilometre run over the month of November, which was tough. For those who know me, know that I’m not a runner, but it was good. So yeah, split up that 60 K’s over the month of November and got out there, put the headphones in and got it done. And the 60 kilometres represents the 60 lives lost of men across the world due to suicide.

Scott: On a daily basis.

Jarrod: Yeah. Daily basis. So it’s a very serious issue and something that not everyone talks about as much as they should. So yeah [crosstalk 00:13:15].

Scott: Well part of giving back to the community, and I’m proud that you step up each year and you do that for Movember. And [inaudible 00:13:24] let’s see what it looks like next year.
In all seriousness, our viewers and listeners 4510TV, it has been episode eight of our podcast series. Jarrod Willis, sales consultant at Richardson and Wrench Caboolture. Myself, a licensee and principal of the same company. It’s been a good year, so we’ll take this opportunity to thank our valued clients for their business with our family.
But for the general listener, the real estate marketing, Caboolture and surrounds, we see things continuing on a steady pace over the next 12 months. I think that’s a fair prediction. We didn’t touch on interest rates. Let’s flick your page, let’s finalise on that. I was going to say goodbye, but we forgot to talk about money. Run us through what happened with money this year mate.

Jarrod: Okay. So, quite a few changes this year with the interest rates. In May into June, we went down a quarter of a percent from 1.5 to 1.25, the following month we went down another quarter of a percent, down to 1%. It stayed steady for two months. And then in October we went down a final quarter of a percent to a 2.75.

Scott: So, that’s the official cash rate. We talk about .75%, and what that has done in turn, I guess in the last six months, it’s made lending very affordable to own your own home and interest rates have seen maybe some fixed rates, principal and interest as low as 3.9, almost 4%, which is quite cheap money. So there’s signal there. I don’t know if I’m brave enough to forecast what the interest rates are going to do in 2020 but I’d say from an investor myself, I’d suggest the reserve bank stay steady so our economy keeps on at a steady rate and hopefully that encourages investment into retail spending. If there’s a little money left over in the pocket of the family each month, hopefully that turns the cycles around.
But if it does stay steady, I think it means good affordability for still entering our real estate market, which we hope that continues. But all in all, it’s been a big busy 2019 and for our viewers, listeners, thanks for tuning in and how about we catch up in the year 2020, next decade? Let’s catch up and talk about all things real estate through our podcast series.
Thanks Jarrod for your time.

Jarrod: Thanks for having me. Cheers.