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. 1392 You Will Never Buy...Here's Why
The elusive path to property ownership leaves many potential buyers frozen with uncertainty. What's the second most common question mortgage brokers hear? Surprisingly, it's "What should I buy?"—revealing a critical gap in the market where buyers lack trusted guidance.
Sydney's property landscape is notoriously complex and expensive, creating a challenging environment where many delay purchasing while waiting for the "perfect" property. This podcast tackles this hesitation head-on with a powerful message: gradual improvement trumps delayed perfection every time. With Sydney property values historically doubling every decade, the mathematics is compelling—you simply cannot save for a deposit as quickly as property values rise.
We explore practical strategies that transform "I can't buy" into "I can start now." From little-known developer programs offering 10% deposit rebates to positively-geared properties at the $600k mark that cost nothing out of pocket, there are pathways into property that many overlook. The concept of "bunny hopping" your purchase—starting with any suitable property rather than your dream home—creates a stepping stone approach that leverages growth over time. While your first purchase might not be on the northern beaches or your preferred location, it serves as the crucial first rung on the property ladder.
Got friends or family who believe property ownership is beyond reach? Challenge us to show them how possible it really is. The race to property ownership has already begun—you've got to be in it to win it. What small step could you take today that future you will thank you for?
okay, we did some formal training yesterday. You will not buy, and here is why we learned the tips and tricks for buyers and how to help them in in buying. Stay tuned, I'm the ringleader, so let's go. It must be overwhelming. Morning, morning, morning. How are you?
Speaker 2:Good, good, good. Do you want to elaborate a little bit more on this?
Speaker 1:uh, this title we've got for this morning yeah, well, you know what it first time buyers, or buyers in general, professional tenants um, I was really, really surprised. We were with our referral partner, mortgage broker Zach, who we do. You know most of the people will ask us who do we use for finance? We send them to Zach and I asked him about when he's talking to buyers what are the top three questions? There were some obvious ones how much can I borrow was number one. But the number two question that he got asked that he said, was what do I buy? And I was like why would people be asking a mortgage broker what do I buy?
Speaker 2:yeah, that's a great question there so it must be.
Speaker 1:You know, if it's such a strong question that people are asking the wrong person, it's obviously a really valid question out there with people and I could, I could only imagine that people are just like I'm not gonna buy, um, because, and there is no one there that they can trust, there's no one there that they can go to as a buyer to say, hold my hand and take me through the process, like, are you going to go to an open house and say that to an agent? No, so it must be really, really hard out there for buyers.
Speaker 2:Yeah, definitely. It seems like there is something missing in between. That little part of education meets practicality and obviously you know a lot of the time there's not that the idea behind a real estate agent is an education first, I think, the perception of the public. So you're definitely right in saying that there is a gap there.
Speaker 1:I love that because I think you're right. The perception of a real estate agent is someone who swings the doors open at an open and you know that negotiates the deal. I think, as a buyer, probably that is the perception. But you know where do you go when you're a buyer, like you know. Do you go to your uncle and say, hey, unc, and I think you feel like you're going to get stripped. Do you know what I mean? Like it's you can go. You know some of the people that are in Queensland do exceptional buyer motivating or buyer training, but they're acutely focused on one building in Queensland or they're a land and house builder in Queensland. But where are the guys around Sydney that are actually going to give you a balanced, non-obligation, unbiased view? Very hard to find, very hard to find.
Speaker 2:Yeah, it really is hard to find that spot in the market and there isn't enough of that stepping stone, Obviously, with Sydney's housing market it's quite complex and obviously one of the most expensive cities in the world, so it's not your usual, you know. Lived in this area going to buy the block a couple of streets away, generally a lot of the time. Now it's going to be a journey of upgrading that asset along the way and eventually landing in a spot and home that you call your forever home so question is it better, um to buy nothing and wait for something and upgrade later?
Speaker 2:Definitely buy something and upgrade later.
Speaker 2:The ability to open up what's possible as an investor, as a buyer, once owning property and picking the right property, just unlocks a whole new lot of potential for the future.
Speaker 2:So, obviously, having a certain amount of money sitting in an account, you know you're only going to expose yourself to a roughly, you know, 4% to 5% best case scenario as an interest rate, whereas we find generally picking the right suburb, you could be hitting growth targets well above that margin and and with things like off the plan as well, um, you're not necessarily putting down a 20 deposit, you're putting down a 10 margin over over two years. So you're essentially exposing yourself to two years worth of growth with only ten percent of the funds put down, um or 5%. Big, big, big difference and a big leap ahead. So I think it's an important thing. This will be an important thing moving forward for the younger generations, and that's going to be, you know, playing that game of value adds, increasing and evolving your asset and your portfolio until you know you're in a position where you can buy something you want. Yeah.
Speaker 1:The CEO, one of the famous CEOs of Toyota is saying is gradual improvement is better than delayed perfection. I can't tell you how many buyers out there are seeking perfection and they're happy to delay for perfection. They're happy to delay 10 or 15 years for perfection, for perfection. And our suggestion today, the big thing out of today, is and I've said this in the saying you will never buy it. Here's why it's the whole perfection concept. So you will never be able to save your deposit as fast as the property generally, as fast as the property value goes up. So if you're considering property values in Sydney, the last 100 years have doubled every 10 years. That's an exceptional amount of savings for a deposit you're going to have to. The way you're going to have to do it is getting into a property, some property, any property and get on the bandwagon and get that cycle going. That's the trick.
Speaker 2:Exactly right, and it's one of those things the sooner you get in, the sooner you reap the rewards of being involved in such a task. So I think it's quite an important one, and people should be looking to not just your A and B, but A, B, C, D. What are your options? And take away the emotional aspect and focus on the numbers. You know, if the numbers work out, your money's making your money, it's working for you. Well, you're only going to be closer to that goal, that end goal, where you know you're having that emotional buy and picking something that you really love, want to live in yourself. So that would be my pick on it, Mark.
Speaker 1:So we had some members of our sales team had some formal training yesterday on bunny hopping your purchase and how to get in when you actually don't have much at all, when you are, in your mind, not eligible to buy a property, when you are in your mind, I cannot buy a property. We had some formal training on how we can help buyers out there and the tips and tricks that we can give these buyers. The tips and tricks that we can give these buyers so much so that I went home last night and then, um, and my, my daughter, jade was, was picking my brain on uh, you know how, how do people buy a second property, you know, with terms of cash flow and deposits and stuff like that. Um, and I'm just I thought to myself later there's, there's people that actually get to 50 and I actually haven't asked these questions.
Speaker 1:So where do you ask these questions? Who do you ask? You ask your accountant, do you ask your real estate agent? Which real estate agent? So it's interesting. I wanted to poke everyone today to ask these questions and to think that they can, if they can, so much so that even yesterday I was thinking you know how I've got? We've got these tenants that have been refused on properties, and some of these guys have amazing incomes and have amazing deposits and no property ownership and if you ask them they will say I'd like to own a property. And where do you go for that?
Speaker 2:It is a big thing and I think we're hoping to fill that void in and around the northern beaches and Sydney itself, and I think we're going to start reaching out to these people and approaching them in a way that, hey, we're here to help, here to educate, not to sell you something specifically. But, yeah, focus on that bit of the education and relationship building.
Speaker 1:Well, guys, if you've got any friends or family that want to get into a property and they can't, throw the challenge down to us and we'll see if we can. We've got properties where the developer can rebate back the 10% deposit on settlement. We've got properties that are sitting at 600 grand, that are positively geared, which means you actually won't have to pay a cent out of your pocket. So you know it is possible. Now, some of these properties are not going to be on the northern beaches where you want to be potentially. They're not going to be where you want to be potentially, but they will segue you in in a period of five or ten years, into your dream property where you want to be. So get on that property wagon 100.
Speaker 2:Don't miss out. Start the race. You've got to be in it to win it boom.
Speaker 1:Have a great day, see everyone. Thanks, josh.