The PROPERTY DOCTORS, Sydney Australia Novak Properties
NOVAK PROPERTIES CREW and PROPERTY LEGENDS in the industry share their experiences and knowledge. Hacks and tips to make you a smarter property GURU :) Learn with exclusive content, advice, insider info and HOT real estate industry PRO SECRETS. For sale, for lease, residential, commercial, buying off the plan, finance, mortgages, interest rates, first home buyer, investments - all topics covered. The untold real estate info you've been waiting for.
The PROPERTY DOCTORS, Sydney Australia Novak Properties
EP. 1366 THE PROPERTY WAITER! LONG TERM PAIN
Can buying a home really take over 200 hours? Discover the surprising reality of property procrastination that many Australian homebuyers face, and learn how you can break free from the cycle of endless searching. In this episode, we unravel the psychological traps like analysis paralysis and financial fears that delay property purchases. We also shed light on the increasing challenges first-time buyers experience today, including the burden of HECS debt and the rising age of entering the market. But fear not—by addressing these barriers early on with support from family, friends, and professionals, you can transform short-term struggles into long-term gains in property investment.
Looking to make the home buying process smoother and more efficient? We highlight the importance of early preparation and the wealth of resources and incentives available to prospective buyers. From superannuation assistance to deposit help and stamp duty exemptions, there's a trove of opportunities to ease your path to homeownership. Tap into the power of social media for educational content and start conversations with those around you to avoid missing out on these crucial advantages. Whether you're a first-time buyer or a seasoned investor, this episode equips you with the tools and confidence needed to achieve your property goals.
The Property Procrastinator. How does it happen? What is the true cost and what are some solutions that it doesn't happen to you? Stay tuned I'm the ringleader, so I'm gonna. Good morning. Short term pain for long term gain.
Speaker 2:Can I just tell you what that short term pain looks like for the average Australian? Because it is shocking. It is so bad. On average, australian homebuyers spend about nine months searching for a suitable property, reviewing approximately 300 listings and attending numerous open homes. This process can involve up to 224 hours of searching. Like come on, 224 hours of searching.
Speaker 1:I'm like come on.
Speaker 2:That's an average. That's an average and I can see it. I can see it as well. Loads of people. Because that includes couch surfing looking at property, all that stuff, yeah, analysis paralysis is what we call it. Paralysis by analysis, it happens. Call it, it's just paralysis by analysis. It happens, doesn't it? Wow? Your brain explodes and then I think you need a holiday, a time off period to rest, and then you need to hit it again and then, when you have a holiday period, time after rest, you still think about it yeah, yeah, and then you go back to the start.
Speaker 2:Pre approvals change this, that and the other. So yeah, this is a good topic. This morning, lisa sort of prompted us to bring this on air. What were you guys talking about on the weekend?
Speaker 1:I actually I had a client come in with their daughter who was 22 years of age, which had a chunky deposit put together, worked hard, has always been a hard worker, now, I think, a lawyer.
Speaker 1:And I was just saying if you can plant that, the earlier that you plant that seed and order that plant or it grows. And you know, I saw it happen with my eldest daughter where she bought when she was young and you know you sort of look back down the track sort of eight years later and it's like wow, if we didn't do that back then, you know it would have been much harder now. And just on that sorry to talk so much, but just on that this 22-year-old had been saving so well that that was actually would have been the same as her mortgage repayments. So I was like you know what you realise, life's not going to change that much. If you end up renting this place out, which she was going to after the first six months or whatever year or whatever, I said, yeah, it's gonna feel sort of they just stay at home and it's gonna feel same same it's funny, you know, like the moves keep moving on the side property or no property um, it just, yeah, it just gets budgeted in.
Speaker 2:Um, we've got sort of four key reasons. I think people just don't end up purchasing property to begin with and need to hold out and wait. Um, there's a lot of like psychological factors. It's in that it's in people's minds such a massive financial commitment that it just farts them. Yeah, um, and like, the average first time buyer is only getting older. In Sydney it's now up to sort of late 20s, early 30s. So it's, you know, it's a long, long sort of build up, a lot of preparation to put a deposit together. Um, it was, it was four years prior to 2020 and then it doubled after 2020 to eight years. So like that's a lot of yeah, that's a lot of saving a lot of time, do you know?
Speaker 1:what no one talks about with first home buyers um, they are now. They used to. They are now. They used to let. Kids like my brother and sister who are in their mid-late 50s, mid-late 50s a lot of them left at year 10 and there's two years they're out of. A lot of them didn't take on a hex debt there's 100 grand. A lot of them didn't take on a hex debt there's 100 grand. Um, a lot of them um because they did university, they did make 50 grand a year for four years. There's 200 grand. So a lot of these kids in today's day and age, on your statistics that you've done um, are a lot more well educated but they're negative 300k on the back of the numbers I just went through and that takes time to get back on the horse, you know.
Speaker 2:Yeah yeah, yeah, absolutely so. I guess that fear of making a mistake's a big one. There's a fear of commitment which will get in a bit more, but just also people just waiting for the perfect property yeah, so what were the four things? Number one psychological factors. Number two financial concerns. Number three market conditions. Number four lifestyle and personal circumstances.
Speaker 1:Yeah, and look, I think all of those things do get overcome. You end up wrestling those things to the ground and um and buying the property. But it's how long that is that how long it takes to do that? You know what I mean, because the longer that it actually takes, the harder it actually gets um and everyone gets there at the end. But it's like if you just psychologically whip it into shape early, um, you know there's huge benefits. I also think we're a very proud bunch and I think asking for help from the bank of mum and dad or from family and friends for advice, from brokers or solicitors for advice, I always find the annoying kid that's full of questions, that's 16 and 17, ends up getting what they want, purely because they're just always asking for help and people do and will help, whereas often, if the challenge is going on in your brain, no one can help you because it's going on in your brain. So, know, no one can help you because it's going on in your brain. So you were one of those annoying kids, billy.
Speaker 2:Still am, but that's true. It's hard to sort of say no to the help when you've got the answer and you know you're passionate about something you want to help. And it doesn't always mean financial help, you know, just because it's the bank of mum and dad. It might just be, you know, using their home as a guarantor against the loan, just to begin with. So it's the first 20.
Speaker 1:What alone you know to have such key figures in you, around you, backing you doesn't have to be with money, but it can be with, you know, go billy, or you know go kid, or you know, when you got those people backing you because you're asking them for help, they will back you. It doesn't mean money.
Speaker 2:You're right, yeah, so that's the prep work and that really sets you ahead. I think and don't feel like a burden. Brokers and solicitors they want to talk to new people as new potential clients. They want to give you the numbers to help you and that's what you need.
Speaker 1:You know what also happens. When you ask people around you, they kick you up the ass every time they see you. Yeah, true, so what? So what happens is they're like how's that property purchasing going again? I still haven't done it, yet they will. They will hold you accountable for years after you first mentioned it to them for help and, believe it or not, that kicks you along.
Speaker 2:So that's probably my biggest recommendation If you're in this property waiting mode, first of all, make sure you've got a really good team around you, and it could be someone like a broker, someone like a solicitor, and then maybe just someone who can give you the moral support. Could be mum and dad, could be someone else Yep, that's my probably biggest piece of advice.
Speaker 1:Actually you've got a book. You've written a book on this.
Speaker 2:Yeah, we're going to actually edit it a little over the next three or four weeks just because it's some legislation change. But I'll send you the copy out. It's got all the numbers. Yeah, so if you do FHB first home buyer, no, yeah.
Speaker 1:so if you do FHB, first home buyer, no, yeah, try that one. That book can still help. There's lots of information there. Sms 0460 11111 with the letters FHB. I'll do the phone number again, phone number 0460 11 one and sms the letters fhb will send you a copy of the book. That book has got so many good things in there, it's a cracker.
Speaker 2:yeah, it's a lot of gold um, yeah and cool, just give us a call. Anyone in the office would love to help. Flavio thinks one big failure in education is financial education building assets rather than spending money on liabilities. But yeah, absolutely, I think a lot of people don't come out of school with that need to start working.
Speaker 1:I would gobble that up. If school did a short course on that in high school, I would gobble it up. I know at the age of 15, 16, 17, I would have consumed that course happily.
Speaker 2:Yeah, any other piece of advice?
Speaker 1:I think the earlier the better, and I think ask friends and family, just bring us up first. Start bring us up, have a chat. There's plenty of educational stuff that we're running on our socials. Yeah, I it, get in early, uh, ask, ask people around you that you love for help uh, including us and then follow and then watch some of the content that's out there, um, that you know agents are putting out and that'll educate you a lot a lot.
Speaker 2:Yeah, you've got to get informed, because if you're missing some of these incentives um too late or you just don't know about them, it's going to make life a lot. Yeah, you've got to get informed, because if you're missing some of these incentives too late or you just don't know about them, it's going to make life a lot harder.
Speaker 1:There's some superannuation help there, there's deposit help and there's no stamp duty help you will not believe the amount of incentives that are out there that buyers don't know about, guys. So you get educated on that ready to do it. Billy, I'll get you to end off for me, because my buttons are missing on my screen. Guys have a beautiful Monday.
Speaker 2:Thanks, billy Bob yeah, if you need a hand, yeah old man in the I.