{"id":10691,"date":"2017-03-12T07:00:59","date_gmt":"2017-03-11T20:00:59","guid":{"rendered":"http:\/\/realestatetalk.com.au\/?p=10691"},"modified":"2017-03-12T07:00:59","modified_gmt":"2017-03-11T20:00:59","slug":"when-ugly-suburbs-change-and-competeing-with-other-buyers-charles-tarbey-and-meighan-hetherington","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/when-ugly-suburbs-change-and-competeing-with-other-buyers-charles-tarbey-and-meighan-hetherington\/","title":{"rendered":"When 'ugly suburbs' change and competeing with other buyers – Charles Tarbey and Meighan Hetherington"},"content":{"rendered":"

We catch up with the head of Century 21 \u2013 Charles Tarbey<\/b> \u2013 about the suburbs that are sometimes called the ugly ducklings but have the potential to be swans.\u00a0 He tells us where they are and buyer\u2019s agent Meighan Hetherington<\/b> is along to share some wisdom about buying well and what happens with competing offers on a property.
\nTranscripts:<\/strong>
\nKevin:<\/b>\u00a0 My next guest is Charles Tarbey, CEO and chairman of Century 21 in Australasia.
\nCharles, I want to talk to you about some of the suburbs around Australia that, well, were pretty cruddy but they\u2019re now very, very much in flavor. You must see a lot of this. When I talk about these types of suburbs, I think of places like Paddington in Brisbane, Paddington in Sydney, even New Farm in Brisbane that weren\u2019t so desirable. In fact, my Mom used to tell me that New Farm was one area that you\u2019d never walk into. But, boy, hasn\u2019t that changed?
\nCharles:<\/b>\u00a0 Kevin, New Farm was a spot that I had to be careful of, as well. My sister had a home in Darra, going back all those years ago \u2013 Darra\/Goodna \u2013 and if you think about the areas around there now and you look at all the different developments that have gone on, it\u2019s just incredible.
\nKevin:<\/b>\u00a0 It\u2019s great the way they\u2019re gentrified some of these areas. Are there any areas that you know, because you get around Australia quite a lot, that are going through that process right now?
\nCharles:<\/b>\u00a0 Yes, absolutely. I had some people visit the other day and they were looking at buying investment property and so on and had their dollars out and talked about buying something for $1 million or $1.5 million in Sydney. I said, \u201cLook, you know, you can still buy properties\u2026\u201d
\nPeople talk about Mount Druitt in Sydney, and Mount Druitt had its first million-dollar sale of a home last year, last January. It was all Commission homes. But people are moving in from overseas, and they think these areas are fantastic compared to the lifestyle ahead. So they come in and they do the same thing.
\nI said to these people, \u201cLook, right in the middle of Sydney, in between the M4 and the M7 freeway are places like Hebersham, Dharrak, that are not far from Mount Druitt where you can still buy a home in Sydney for mid $500,000s,\u201d and 10 kilometers north \u2013 not even that \u2013 people are paying $2 million dollars for homes.
\nI think a lot of people avoid these areas because they hear all these bad reports, but for me, that\u2019s an indication of change, and if I were out there actively investing in residential, that\u2019s where I\u2019d be looking now. I\u2019d being buying two or three homes if I could alongside of each other in anticipation of potential medium density in the future.
\nPeople, again, are investing very heavily. South West Queensland has got a massive amount of profiling in the New South Wales market. Every time you turn the radio on, Kevin, they\u2019re talking real estate, they\u2019re talking about investing in South East Queensland. I think that you have areas of Queensland, southwest of Queensland, that still have a lot of upside.
\nI think you even have areas further south when you go past Ipswich and some of those areas there that people seem to have forgotten. All you ever hear about is flooding or other issues, and again, for me, that\u2019s definitely a green light, not a red light.
\nKevin:<\/b>\u00a0 Good on you. Charles Tarbey there from Century 21. It\u2019s always great to have you on the show, mate.
\nCharles:<\/b>\u00a0 Thank you, mate.
\nKevin:<\/b>\u00a0 You talk about dodgy practices and sometimes with agents, and it brings to mind if you\u2019re a buyer and you\u2019re interested in a property, then you\u2019re told by the agent someone else is interested and, in fact, they\u2019ve made an offer and that you\u2019ve got to be in competition with them. It\u2019s called multiple offers. I do want to talk about that, and I\u2019m going to discuss it with a buyer\u2019s agent, Meighan Hetherington from Property Pursuit.
\nBut just before I do that Meighan \u2013 welcome to the show \u2013 I just want to ask you about some of the tips that you have for buyers who may be going out and buying this weekend. What are some of your tip \u2013 whether they\u2019re buying at auction or by private treaty?
\nMeighan:<\/b>\u00a0 I bet there\u2019s a whole heap of people who would like to stop going to open houses on a hot Saturday, and the only way to do that is, of course, is to buy, but you don\u2019t want to be that person \u2013 that wounded bull \u2013 who commits to a purchase that\u2019s not quite right.
\nKevin:<\/b>\u00a0 But what do you do? You\u2019ve been looking for months, you find the place you like, and say hypothetically, it\u2019s listed at $550,000. I get people who will call me and say, \u201cLook, this thing is listed at $550,000. We think we\u2019d pay $540,000 for it.\u201d And I think, \u201cWell, for goodness sake, for $10,000, if you\u2019re going to own it for 20 years, buy it.\u201d
\nMeighan:<\/b>\u00a0 I think it depends on your timeframe and the reasons for purchasing. Investors very much have to be very sharp on their purchasing, but they also have to realize that in a rising market, every six months is going to cost them more money. So it\u2019s putting that head on of what are the compromises that I\u2019m prepared to make to get into a property that are going to be right for me as an owner-occupier, as a homebuyer?
\nSome people try to have a very long-term view of what they\u2019re going to do with a property, when in reality, we turn over properties about every five to seven years. So having a realistic expectation about how long you\u2019re going to be there and what your life is going to be like while you\u2019re there is a way to help you get across the line of not expecting everything to be perfect on the property for the rest of your life.
\nI think when you find something that looks right, it feels right, and do your research, be prepared to commit to making an offer and make that offer subject to all the right things that will protect you as a buyer. A discussion with the solicitor is going to help you get your conditions right and protect you.
\nBut on the flipside of that, we\u2019re still seeing properties selling with multiple offers of five or six offers on the first day, so you need to be very careful that you\u2019re not being too smart about your offer and not getting yourself in the position to be the buyer.
\nWhat I mean by that is if you think a property is worth $540,000 and there\u2019s a good chance that someone else is going to pay $545,000, would you really want to miss out on that property for $5000 or have conditions that are unattractive to the owner that would make you look like an option that they don\u2019t want to take on?
\nKevin: <\/b>\u00a0Multiple offers, it\u2019s always a difficult situation. Agents don\u2019t like it.
\nMeighan:<\/b>\u00a0 The response from the buyers is very uncomfortable.
\nKevin:<\/b>\u00a0 Very, very uncomfortable.
\nMeighan:<\/b>\u00a0 And I think some buyers think that agents are leading them on a little bit and playing them off against each other.
\nWe actually get agents to sign a multiple offer declaration just in the same way as a buyer has to sign a multiple offer declaration. It\u2019s very important, I think because the trust is established on both sides of the fence.
\nKevin: <\/b>\u00a0Isn\u2019t that an indication, though, that you don\u2019t trust them, that you\u2019re asking him to sign that?
\nMeighan:<\/b>\u00a0 No, it\u2019s an indication that they\u2019re asking for a buyer to acknowledge there\u2019s a multiple offer, and we\u2019re asking for the agent to acknowledge that there\u2019s a multiple offer.
\nKevin.<\/b>\u00a0 Okay. That\u2019s fair enough. Yes.
\nMeighan:<\/b>\u00a0 So if a buyer thinks that they\u2019re being misled, let\u2019s remove that. Let\u2019s just make it a non-issue, and with that declaration, I think that\u2019s a good way to remove that doubt.
\nKevin:<\/b>\u00a0 So you get the agent to sign a declaration and then you get your buyer to sign a declaration saying that they understand that they\u2019re in competition?
\nMeighan:<\/b>\u00a0 Yes.
\nKevin:<\/b>\u00a0 Is it that their first offer may be their only offer?
\nMeighan:<\/b>\u00a0 That\u2019s usually the way the multiple offer works, and what we encourage people to think about when they\u2019re putting that number together is I say to them, \u201cIf I ring you and I say that the property went for $545,000 and you missed out, how would you feel?\u201d
\nKevin: <\/b>\u00a0Yes, how would you feel? Yes. That\u2019s right.
\nMeighan: <\/b>\u00a0\u201cWork backwards and arrive at the number where you go \u2018I would\u2019ve have paid it.\u2019\u201d
\nKevin:<\/b>\u00a0 And then you\u2019re comfortable, aren\u2019t you? You\u2019re comfortable to walk away.
\nMeighan:<\/b>\u00a0 Then you know.
\nKevin:<\/b>\u00a0 Meighan Hetherington is from Property Pursuit. You can find them quite easy at that website. Thank you so much for your time.
\nMeighan:<\/b>\u00a0 Thanks for having me, Kevin.
\nKevin:<\/b>\u00a0 It\u2019s been great having you here.
\nMeighan:<\/b>\u00a0 I\u2019ve really enjoyed it.
\n <\/p>\n","protected":false},"excerpt":{"rendered":"

We catch up with the head of Century 21 \u2013 Charles Tarbey \u2013 about the suburbs that are sometimes called the ugly ducklings but have the potential to be swans.\u00a0 He tells us where they are and buyer\u2019s agent Meighan Hetherington is along to share…<\/p>\n","protected":false},"author":176692471,"featured_media":10693,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[32,10,11,13,36,22,23,25],"tags":[70,101],"class_list":["post-10691","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buying-a-property-topic","category-kevin-turner-sponsored-channels","category-kevin-update","category-latest-story","category-property-investment-topic","category-research-topic","category-selling-a-property-topic","category-sponsored-channels","tag-featured","tag-podcast"],"yoast_head":"\nWhen 'ugly suburbs' change and competeing with other buyers - 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