Reserves Seven Days Out, a Licence Lost and Housefishing in New Farm

**Kasey McDonald** (00:06)

Well, welcome to Before the Weekend, episode eighteenth. On the eleventh of September, I'm joining from Sunny Brisbane and my co host, Pete, is joining from London. How are we, Pete?

**Peter Schravemade** (00:20)

Yeah, good. I'm feeling very British and it's a it's a lovely rainy day outside. Actually we've had some great weather here in London which has been different, so I shouldn't bag it, but just I'm looking out the window right now and it's it's turned into fantastic British weather. but yeah, I'll maybe here at PropTech Connect in the UK. It's been going great. It's yeah, really big property technology conference, largely focused at commercial real estate, I guess we would call it in Australia, but yeah, it's been it's been a fun trip. Long way to go go for a proptech conference, but hey, y you know, part of a gig.

**Kasey McDonald** (00:58)

Absolutely. And look, we've had, you know, somewhat of a probably quieter week, I think we've seen across our industry, although we still do have some great things to talk about today. we of course have got our guest, Andy Reid, coming up very, very soon. I was last week at the REIQ property insider lunch. So really looking forward to sharing just some insights there.

**Peter Schravemade** (01:20)

that that was w was that last week? It was last Friday. Was it? yeah, yeah. Yeah. Yeah, great.

**Kasey McDonald** (01:24)

Yeah, was last Friday, actually. Yeah, last Friday. Yeah. Yeah. So it was great to kind of hear some things that were shared. We've obviously got some housefishing happening. So kind of interesting to dive into that around some AI contractors, of course. and unfortunately we've had a major real estate agent here in Queensland, unfortunately lose his license. So we can dive into to some of those things that have kind of come out in the industry this this week. but are we welcoming our our guest in, Andy Reid?

**Peter Schravemade** (02:03)

Yeah, we we certainly are. well Andy actually called me last week after we we were talking about the Victorian legislation, which is now live. We were saying look it's coming and it's gonna be live and he called me, he he basically said, Look, there's a couple of things I need to correct. So I I invited him on the programme. So we'll have a chat to him in just a minute and see what he's got to say about that. But for those of you don't know Andy, Andy is a auctioneer coach. obviously, you know, I I think auctioneers still qualify as a real estate agent, right? But he also runs a very successful podcast or I'm gonna call it an initiative. I think he might have moved away from the podcast. He's got a book out called Success Curious, which is you know, what has made you successful and delving into the minds of people who are successful. But the the it's taking a bit of a different twist and we might ask him about that as well while he's on the show. anyway, let's let's go to that interview. Andy Reid, welcome to Before the Weekend. I think this is your first appearance, is it not?

**Andy Reid** (03:13)

I believe so. I've been feeling a a little bit slighted if I'm being completely honest, but that's another another challenge

**Peter Schravemade** (03:17)

have you have you now?

**Andy Reid** (03:19)

at the time, I guess.

**Peter Schravemade** (03:20)

It's unlike you to feel slighted in my presence.

**Andy Reid** (03:24)

well no. well y well not not so much slighted, slightly more aroused potentially every you know, but but yeah, but no s slighted on this occasion.

**Peter Schravemade** (03:35)

Hey, before we hook into a few questions, tell us what you're doing as far as Success Curious is is coming up. I saw you put a post out, can you spill the beans on what's coming up or are you is that still under apps?

**Andy Reid** (03:45)

Yeah. No, no, no, no. I'm more than happy to share. I I've had a bit of a a thing against the way that training events are being have been put together. I think that the format's just been the same since day dot and it's boring as. And webinars are rubbish as well.

**Peter Schravemade** (04:03)

Not my training event, so.

**Andy Reid** (04:05)

No, no, definitely not your train events. So not the Reach ones, but all the other ones all the other ones, but look. But it's not so much the boring, it's just the fact that the format hasn't changed and and the world's ready to feel good again. And I I f I sort of had a ADHD moment in a studio and within twenty four hours I've roughed out a TV show. So so in studio in Tullamarine, we're gonna be launching the very first Success Curious Live, which is gonna be streamed online. we're gonna have an in a small in studio audience, but then The format's very, very different. It's like a cross between Good Morning Sunrise, Graham Norton, a little bit sort of sports cast sort of vibe. And and there's four elements to it. The you know energy identity, practicality, and optimism. And I'm not interested in hearing people talk about burnout for five hours anymore. Like we we really need to look past that now and actually look at right, we know it's hard, so what are we gonna do about it? Right. So, so that's the format of the show. And there's and I'm really excited because it j it's just providing opportunities for all of the stakeholders to get way, way more value than what they've ever had before. You know, the we're all of the the partners that are with us, you know, we're guaranteeing lots and lots of impressions and for the speakers we're providing them with full content folders with all the clips and all the bits and they're all coming onto the podcast as well. so they're gonna get loads of audio content that they can use for social proof and and for the guests, you know, it's it's a really low cost of entry and it's gonna be five hours of content that they'll be able to access forever. So they'll be able to go back, relearn,

**Peter Schravemade** (05:46)

When when

**Andy Reid** (05:47)

watch all the rest of them. And I'm and I'm s I'm really, really excited. I think it's what I'm designed to do.

**Peter Schravemade** (05:53)

Well it sound it sounds awesome. When when is this happening?

**Andy Reid** (05:57)

so the very first one is November twelfth and and we've labeled that the PM takeover because property map

**Kasey McDonald** (06:04)

Hello, yeah I didn't get an invite.

**Peter Schravemade** (06:07)

this is awkward.

**Andy Reid** (06:07)

'Cause it's not 'cause it's 'cause it's not come out yet, Doug. You guys you guys are you guys are Uber Uber exclusive. so you haven't done sent him out yet. so the I d the reason why I've hit PM first, despite, you know, I've done a lot of work in property management land, but obviously it's not my home ground as such. but at the same time at the same time I just feel that they need they they need the help in feeling good a lot more. I think they they are probably at the lowest ebb from a morale perspective. And so yeah

**Kasey McDonald** (06:43)

Yeah, it's lots going on for sure.

**Andy Reid** (06:45)

man. And I figured and I figured that, geez, the the property managers, I don't want to get on my high because at the end of the day, I'm in sales and whatnot primarily, but they they they are still an afterthought. The pressure is insane and I just feel that they need it's I don't wanna say be as cliche to say they need more love, but they need someone to actually get a grip of them and say, Right, let's stand up, let's march into battle and and hopefully the things that I'm gonna bring are are actually gonna help not just in their work, but also in their lives, right? That's the plan.

**Kasey McDonald** (07:20)

Nice.

**Peter Schravemade** (07:20)

Well, I'm definitely seeing some good property managers stand up at the moment, so there's that. But hey, let's move on. what I'll do is I'll get I'll get the links. So if you've got any promo gear we'll we'll have it at a show episode so people can go come and have a look at that. But why we actually got you on here wasn't w wasn't for Success Curious, I just saw it this week, so I thought I'd ask. But the We were talking about the the new Victorian changes that are coming October first, although have been I think they've been passed was what where we were at last week. And you called me up and said, I think you're you're slightly wrong on that. What what did what what was the what was the point? Wha what is actually happening?

**Andy Reid** (08:03)

Well, I i I knew that I c I kind of figured that the the information that you were working off was was gonna be from like say a couple of weeks ago, right? And it's been changing fairly regularly. So it's you know, I think the information that we you were using at the time was probably relatively accurate, but last week we had a meeting at the REIV with the consumer affairs CEO, Nicole Rich, who went through All of the bits and bobs and clarified a few things. And and there was a few things that I mean, for example, one thing around buyers, the original, the sort of original draft legislation read like read so that buyers needed to have a contract of sale in their hand for 14 days prior to being being able to make an offer. Which, and I was looking at that going, man, that's bad. But thankfully. they've put it down to a typo, literally. And so they've so it's now a case of it just the contract just needs to be available for review for the public for 14 days prior to auction, which for me is just good practice anyway, right? so

**Peter Schravemade** (09:16)

But the cr the crux of it was still setting that reserve seven days out, right?

**Andy Reid** (09:20)

Yeah, so that's obviously the headline piece of the whole thing, right? Which so the what they've also done as well is they've staggered out the the the bringing in of these of these legislation legislative changes. So on October first, the primary ones are the removal of the statement information, which is going to be replaced by a property price statement. you gotta say it's slower because it really doesn't roll off the tongue overly effectively.

**Peter Schravemade** (09:47)

Price statement, yeah. PPS.

**Andy Reid** (09:48)

PPS, which is base which is basic basically a a statement of information on steroids, essentially. So they've they've decided in their infinite wisdom to say that we need to be putting in details of each comparable sale that we use for our PPS, that any details that could potentially influence the end result of the sale. Now it's not the easiest thing to do if you didn't sell it, right? So which kind of makes it A little bit interesting. So we I I mean, myself and the REIV, Toby and the team there, who I would I I would say I'll go on record is to say you know, Toby Balazs and and the and the team at REIV, Amy Blackburn and the gang, they're doing a tremendous job under the circumstances. I honestly haven't seen a CEO be quite as proactive as Toby. And it's it's magic, man. It's it's it's brilliant what he's been he's been doing.

**Peter Schravemade** (10:42)

Well, we do have

**Kasey McDonald** (10:43)

Mm-hmm. Tanya, yeah. Yeah. Yeah.

**Peter Schravemade** (10:43)

we do have Antonia up here and she's pretty good, but y we we agree with you, Toby's just been a bore on this, he's been really good.

**Andy Reid** (10:50)

it's been Mega Man. So so in terms of the in terms of the actual reserve, so yes, seven days before the due date of either an auction or offers in by. So if it's an EOI with a date or a fixed date sale or a sell by set date, whichever brand uses, whichever terminology, there needs to be either reserve or in the case of that private sales side of things, I'm referring it more to it more as like a a will take, because reserves are automatically connected to the auction space. So yeah, that needs to be out for seven calendar days, not business days, seven calendar days. Now interestingly, there was some a very, very interesting point was raised. So obviously, as of now, if a so say for example, a reserve is set at 950 and and and someone makes an offer at 960 and the owner rejects it, the quote The the statement information, the quote range needs to reflect that rejected offer, right? So it needs to be at the bottom of whatever the revised quote is. Now, obviously, if we're going to be displaying a reserve now and someone says, right, the reserves is set 950, we want to offer 960. The very valid question was raised that, well, crap, well, if we if the owner doesn't want to take that, does that mean that we automatically have to shift the auction date? Because It has to be that same figure for seven days prior to calling the auction. So if they have to change the reserve based on an offer being rejected, it resets those seven days, right? Which can be a bit of a logistical Yeah.

**Peter Schravemade** (12:27)

Mm and then it has to go for an at least another seven days.

**Andy Reid** (12:30)

Yeah, which can be a bit of a logistical nightmare, right? However, interestingly, from the horse's mouth, if a property gets rejected based on price, then yes, that's what has to happen. But if a property gets rejected formally in writing based on process, then you're okay to keep it where it is. So we and and that actually took all of us by surprise a little bit that they came out and said that. so essentially, if the auction if the vendor makes it abundantly clear that they have no intention to sell prior to the auction, prior to running the auction, then we can reject the offer based on the fact that that is the owner's that is the owner's decision. So it's not necessarily saying that we're rejecting 960, but what we are saying is that we're rejecting it based on the fact that the owner's committed to go to auction. It might sell for 960 but at this stage we're rejecting it based on the process.

**Kasey McDonald** (13:35)

Interesting.

**Peter Schravemade** (13:35)

I'm I'm more interested yeah, I I'm I think I'm more interested in the fact that you know, like we have just seen a federal budget and the market, let's say three days before the federal budget was a completely different market to two days after the federal budget. And okay, let's say Andy Reid is an auctioneer and he's coming in two days after the federal budget, and five days before that a reserve price has been set. I I would argue that there is an an incredibly it's gonna be incredibly hard. Like I can see auctions being cancelled where major market shifting events have caused a reserve to be set seven days and the market has shifted in one. I mean, the whole the whole premise of the auctions is is to listen to market conditions on the day. And this setting a reserve price seven days before would indicate to me that somebody who doesn't understand the auction process has said, Right, we're we're gonna take the market conditions from that week and we're gonna do them here. Like it almost it almost rips apart the integrity of an auction.

**Andy Reid** (14:44)

It's really interesting. So I I actually mentioned this to to Toby and and he agreed. Essentially that one of the biggest mistakes that's fairly obvious is the fact that politicians essentially they're the the powers that be, they are essentially insinuating that they believe that it's actually the agents that set the reserve, not the owners. So that's where the biggest mistake's been made, right? Yep. That's the biggest mistake.

**Peter Schravemade** (15:04)

Yeah. That's that's what I reckon.

**Andy Reid** (15:10)

and the other the other

**Peter Schravemade** (15:08)

Yeah. Well, but they're trying to they're trying to they're trying to put in more transparency. So the complaint is coming from the fact that, you know, people are turning up to these houses and they're selling for prices above what they expect and there's there's this disappointment, right? And so they're trying to legislate away the disappointment. But it's not it's not a disappointment that's set by the agents, it's it's not a disappointment even that's set by the owner, it's the market speaking.

**Andy Reid** (15:34)

100%, man. And but and the the the the end of the day, like even with these new rules coming in, humans are humans. They will find ways round it in some way, shape, or form, if we're being completely honest, right? now having said that though, it you know, at the end of the day, they're also sort of almost half promoting that that and this is where there was a reel that did the rounds on social media where Whoever the housing minister is, she made an absolute dog's dinner of a of a of an answer to a question. Because the way that they put the rules out suggested that once it goes over that amount, it's sold, right? When even now, so even before any of this legislation change, it's not sold until the inks dry, right? So the auction is a public in a public declaration of the terms of of the of the of the price. But then it still needs to be signed up on a dotted line first. after that, right? So, yeah. So even though we will be the we'll be setting a a reserve, now the the in the in the interpretation of the legislation, I've got to be I've got to be careful how I say that. it's been suggested that the owners cannot move a reserve up once the auction starts, but they can move it down. Right. So

**Peter Schravemade** (16:57)

Yeah, of course. I mean which is which is bizarre in itself, 'cause we're doing this for transparency. You can take the reserve down, but it it's not about the transparency. That whole piece tells me it's to avoid purchase of disappointment.

**Andy Reid** (17:13)

big time. Look, at the end of the day, it's making it's making buyers out to be victims, right? That's essentially what it is. And which is which for me is fairly ridiculous.

**Peter Schravemade** (17:18)

Yeah. Well and and and I sympath I sympathise. I do sympathise. There are a lot of people out there trying to buy a house and they find it very difficult and I understand that the auction process for them, especially if you don't understand it. And I also know y that we've got guys most recently one main case in New South Wales where who who were, you know, what we call underquoting and unconscionably underquoting to get people to turn up to the auction to try and force a sale. So Like I understand there are elements of our industry that have done this a and now they're trying to legislate that out. But the majority of of operators that I know, like yourself and you know, the the other o auctioneers that have met at the Osteros, that they they don't do they don't pull stuff like this. Most of them are professional operators, not out there as snake oil salesman trying to make a quick butt.

**Andy Reid** (18:11)

Yeah, I mean of look, it's it's always gonna be the the annoying few that spoil it for the many, right? But at the same time, it's not the end of the world by a long stretch. I know the some of you know, some of the agents that I work with that I've known for quite some time that are really, really, really good operators. I you know, the number one sort of selling director of Ray White down here in Vic, Gav Staindl, he was licking his lips when it first came out. Absolutely licking his lips. And he said, mate, if this goes through, I'm taking everything to auction. Say that now. And because the thing that's going to sort the wheat from the chaff in this regard is the fact that at the listing presentation, there are plenty of agents that will buy listings, right? They will they will overinflate vendor ex seller expectations and but say, look, but in order to get that, we need to quote it low and watch it go. Right. But then when you've got operators that know how to know how to handle a price conversation really, really well. they're already doing everything by the book anyway. So, you know, if they're if the quotes at 8 to 880, they already know that their reserve's going to be in that ballpark anyway. They're totally cool with it. They're pricing it at a level where they know that's where the owner's going to want to be. And they've got nothing to hide in that regard. So it's i it's interesting who you talk to about it. And I think in terms of How it's going to affect volumes as such. I really do believe it's a bit of a tail of two halves, where anything towards the bottom end of the pricing pyramid is I believe is probably more likely to go to auction with a slightly longer campaign because the asterisk is it's got to be unconditional. There's a lot of first-time buyers that might not be able to go unconditional, and therefore they might need a little bit longer to get valves done and whatnot. But, and then the top end of the pricing pyramid will probably drift away purely because. That 10% range, it gets more ambiguous the higher up the the pricing pyramid you go, right? So, but I think that if a first, if you're thinking about first home buyers, right? So to the point you made before, for a first home buyer to try and get into the market and try and to try and do it at auction, and they're getting disappointed all those all those times, right? What are they if they see two properties after October in Octo post-October first, and one of them's got a 10% range. With no indication as to where in that ballpark it is, and one of them's got a very, very clear target figure. Which one is going to be more attractive from a clarity perspective? It's going to be the other. Now we're talking about the perspective. The perception from a marketing perspective will be that the one that's got a clear figure, it says, right, it's going to go for that at least. Then at least no.

**Peter Schravemade** (20:55)

Yeah. But but Andy, you're you're implying that you're implying that the it's not gonna have an impact on auctions. Is that what we're hearing?

**Andy Reid** (21:03)

I'm implying that it's going to accelerate the use of auctions at one end of the market and probably decelerate it at the top end.

**Kasey McDonald** (21:11)

At the end. Okay.

**Peter Schravemade** (21:11)

What's what's the net? What's the net? Up or down?

**Andy Reid** (21:18)

if people use it properly, I'd be send I reckon it'd be going up. The consensus, so the So the

**Kasey McDonald** (21:22)

Interesting. Yeah.

**Peter Schravemade** (21:23)

Hm, it's interesting.

**Andy Reid** (21:25)

consensus was so when I was chatting to a couple of my auctioneering counterparts that are pretty prominent in the game, you know, we're talking Luke Beniciotis, Jake McIntyre, Gregdy Bryden, like players that that do a lot of auctions like myself. If If there is long and and like I said, the cave the one caveat is whether brokers and banks are going to be able to provide approvals more often and quicker. Right? If they can do that, then I I would because the other thing is, from an agent's perspective, it's actually one of the best conditioning tools we've ever been given. Potentially.

**Peter Schravemade** (22:10)

Well, maybe, maybe, but like it from from my perspective, if I had a home for sale in Victoria, number one, I I wouldn't be going to auction straight after this came in. I'd wait. I'd wait to see what the market did. That's if I if I was gonna sell, I'd wait to see is this gonna have a marked impact on the sale. I'd be looking for at least a month worth of records before I I made a decision to sell my most valued ha asset in case you might be wrong and it it impacts the price that they're getting. And then the second thing is I'd consider private pre- because it doesn't matter. Like I I I could e I could do expressions of interest, right? And we could I mean it I again, I know it's another processed auction and I know you know, in my nature I'm probably adverse to that, but I I do think there will be a Especially in October, I think there'll be a a round of people like myself that say, we're gonna wait and see and maybe it works out fine, maybe maybe it does, maybe the auction is the is the process that moves forward and then they all come back into the market. But do you do you not think that there is gonna be a bit of a a space where people are like, I don't I don't know if I wanna be the guinea pig for trialling this?

**Andy Reid** (23:23)

I've already got a load booked in. I've already got a load. Yeah, so

**Peter Schravemade** (23:26)

Hello, there you go.

**Kasey McDonald** (23:27)

Interesting. Well

**Andy Reid** (23:29)

so well I one thing I will say is that it's not strictly October one. So they're actually giving two weeks grace for the properties that were launched prior to October first. So on the third the auction weekends of the third and the tenth, they are still okay to rock and roll under the same terms that they're on now. So yeah,

**Peter Schravemade** (23:46)

Okay. So it's the ones after it's the ones after that that would tell us so there's seventeen.

**Kasey McDonald** (23:46)

The old okay. Yeah. Hmm.

**Andy Reid** (23:50)

so seventeenth, twenty fourth and be on there that that will give you the indicate. But I've already like I said, I've already got my 24th. I I mean, and here's here's one thing I will say because one thing, and I know that it's not a majority. This is a sort of a bit of a minority case, but on the 24th, for example, I've got a court audit auction. so which has to go to auction, right? But it has to go in the new

**Peter Schravemade** (24:14)

Yeah, yeah.

**Andy Reid** (24:14)

rules. And that one there is an interesting case because they've already set the reserve by the court, right?

**Peter Schravemade** (24:21)

Yeah, they have to they they

**Andy Reid** (24:22)

So

**Peter Schravemade** (24:22)

have to Yeah. But but

**Kasey McDonald** (24:23)

They'll have to, yeah.

**Peter Schravemade** (24:26)

but I'm I'm not saying that there's not going to be auctions. I'm I'm more pointing at this going, Are the auctions going to be getting the same prices that they were or is this going to be a limiting or an inhibitor on it actually moving up? Like setting the reserve from any of and I'm not an expert, I'll defer to the other guys out there that do it, but having been to a bunch of those Ostros, the was the the reserve setting the reserve is actually quite a a technical part of the auction when you watch the good auction is and the way that they do it, right?

**Andy Reid** (24:55)

Yeah, totally, man. And and and in terms of the craft of auctioneering, right? Like you know, so the biggest sort of trump card that an auctioneer has is that those three words on the market, right? And that's supposed that that's

**Peter Schravemade** (25:09)

Yes, correct, yeah.

**Andy Reid** (25:11)

supposed to be the thing that's set that's that's to set the torch that set the torch alight, right? Now yeah, but interests are

**Peter Schravemade** (25:16)

And it just takes all the magic out of it, right? 'Cause you're gonna you're gonna

**Kasey McDonald** (25:18)

Yeah. That

**Peter Schravemade** (25:20)

know.

**Kasey McDonald** (25:20)

that's was a question I was gonna ask you, like on a Saturday. Do you you won't say those words anymore or will you? 'Cause is that how you're gonna start the auction now?

**Andy Reid** (25:27)

Well, this is the interesting thing, right? So so so case, I've I've been in the lab with this, right? I've been in the lab sort of work, you know, feeling out the mechanics and the emotions and the pressure points and all that sort of stuff. Couple of really interesting, cool things potentially that could come out of this, right? So, yes, there's a figure there and everybody sees the figure, and you know, so we haven't got that sort of mystery of whether it's on the market or not, right? Which is which, you know, can be a bit of an issue. but From a pure from a pure craft perspective, and we're going to come on to demographics in a minute because that's something that we've not acknowledged yet, and it needs to be acknowledged. But from a pure craft perspective, one thing that I'm going to start bringing in, right, is as well as as well as counting the auction up, I'm actually also going to count it down at the same time. Right? So can you imagine the potential fun that we could have when as we get closer to the mark that you say another ten K would only put us ten K away. My word, we're only we're only five K away from having this thing on the market, gang. Who's gonna be the one to set it a light? You could really play with that if you counted it down towards the like the the gap, as well as counting the actual original auction up, which I think it'd be really, really cool. So and there's

**Peter Schravemade** (26:47)

Yeah, I I I see I see that. I see that, mate, but I think the elephant in the room is still are auctions going to be able to achieve like one of the reasons people take it there is that you have the potential to che achieve a much higher price on the day if it's sculpted correctly. And when you remove one of your key indicators from it, I I mean w none of us are gonna know route now, right? We're not gonna know now.

**Andy Reid** (27:06)

I'd I'd actually No, no, but one thing but this that sort of segues me into the the demographic point that really needs to be made that Melbourne has that Melbourne has got a bit of a not a unique feature but it is it is much more nuanced than a lot of other parts of Australia which is we're working with you know there are certain cultural demographics that we work with predominantly that a lot of the time They won't even do a damn thing until they know that it's on the market. But then if well you know, for example, but if they see that they if they can see where the figure is, where they know if it's going to be on the market, if it's going to be on the market there at the very at the most, right? So if anything, it's gonna come down. But if they know that that's where the on the market figure's gonna be, it might be harder to get them going. But if you get them going and they s and then they see social proof within that demographic, They will all start to go hammer and tongue way earlier potentially, right? Because of the fact that they can see where the figure is. And and and

**Peter Schravemade** (28:10)

I got I got one more question for you, mate, 'cause we've got to wind this up. But if is is it is it possible to just start from the reserve?

**Andy Reid** (28:20)

Hundred percent. I would actually I've actually been thinking about what a a clever black. I've done it, I've done it.

**Peter Schravemade** (28:23)

'Cause 'cause could you could you just lead with

**Kasey McDonald** (28:26)

Yeah. Yeah. We're on the market and here's the price.

**Peter Schravemade** (28:26)

that and go we w could you just lead with that and cut out the preamble? Yep.

**Andy Reid** (28:28)

I've done it. I've actually already done it.

**Peter Schravemade** (28:31)

We all know the reserve is X. Here's the reserve, let's go. Like

**Andy Reid** (28:37)

Yeah, I've I've I've already done it on a number of occasions where we've had an offer that's triggered the reserve and we've just gone right, we're starting there, we're off, we're rocking and rolling, crack on. so yeah, that's that's absolutely a thing. And I've been thinking about it from a buyer agent's perspective, a buyer advocate's perspective. One really, really good strategy if it's a keenly if it's a keenly attended auction, what an amazing strategy it would be to see the reserve at 850 and just banging a very quick.

**Peter Schravemade** (29:05)

Yeah, we

**Andy Reid** (29:05)

opening poly at eight sixty and try and shut off any momentum from getting built, that'd be a really cool play for them, right? Really cool play.

**Peter Schravemade** (29:15)

Well, I'll tell you what, I'll tell you what we'll do. We'll we'll call in after I think it's going to be three weeks past October, so we might hit you up in November and see how things are going. I'll have a look at the the numbers on the sales price, see if there's been any changes in let n not auction clearance rates particularly, although that might tell us if people are shying away from auctions. or no the actual number of auctions that are there, not the clearance rates. But I might

**Andy Reid** (29:39)

Bowie. Hm.

**Peter Schravemade** (29:41)

I might have a look. More at the prices and see percentage wise as to whether the dollar figure that it's selling for is dropping. And I mean that's very hard. That's gonna have to be something that you look at over a sustained period of time. But I appreciate you coming on the show and talking us through this. And I wish you the best with Success Curious Live. That sounds really cool, and we're gonna put all of the the details in here. And no, brother, it's great to see you until Yeah

**Kasey McDonald** (30:05)

Looking forward to getting my invitation.

**Andy Reid** (30:08)

You will get an invitation, Kasey. You will. You will. I mean I I I mean it had

**Peter Schravemade** (30:12)

I think I'm out of it.

**Andy Reid** (30:13)

nothing to do with the fact that I hadn't been invited on here yet and I was thinking, right, screw them. but

**Kasey McDonald** (30:19)

No, I'm not inviting them until they invite me.

**Andy Reid** (30:23)

Not that I'm ch not that I'm like proud or childish or anything like that, right?

**Peter Schravemade** (30:26)

No, no, I could never see that. It's good to see you, brother. I don't know when we're catching up next. I will be down there before the end of the year, so maybe we can get a sneaky water or pint. I think you only drink water these days, so we'll get that in before Christmas. And no, mate, I wish you all the best. I hope it goes well for you guys down there. And as as per usual, you know, despite asking the questions today, I'm just I'm just interested in in the in their the the property profession. I think we should really be upholding that and I'm kinda sick of people legislating to try and make it you know, try and get a vote or try and make it so that these conditions are different for whatever reason it may be. But thanks for coming on, mate.

**Andy Reid** (31:06)

it's yeah, no, it's an absolute pleasure in all sincerity and and yeah, if they wanted transparency, then they probably should have brought transparency in on both ends of the ledger. We're still the only state that hasn't got registration admitters. Just nuts. So

**Peter Schravemade** (31:20)

Yeah. Yeah, well we didn't get into why why this doesn't happen in Queensland, but we won't do that today. It's good to see you, mate. Have a good one.

**Kasey McDonald** (31:25)

Yeah. Yeah. Thanks, Andy.

**Andy Reid** (31:29)

Yeah, take care, gang. Thanks for having me on.

**Kasey McDonald** (31:31)

Thank you.

**Peter Schravemade** (31:33)

Big thank you to Andy Reid. He's always larger than life. Great to have him on the show. he seems a bit he seems a bit slighted about the fact that we didn't have him on beforehand, Kasey, but rectified that.

**Kasey McDonald** (31:42)

Yeah, I know. I think he was very upset about that.

**Peter Schravemade** (31:47)

He's a he's a how should I put it? He's I was gonna say a whore for a stage, but you know, that's probably the wrong terminology. You get what I mean. Let's move on. So the probably I I don't know if it's the lead story, but it's probably a reminder notice this week about AUSTRAC issuing section 167 notices in late August. We're in September now, but I'm guessing this this is all about AUSTRAC starting to send out notifications to real estate agents who perhaps haven't enrolled, right?

**Kasey McDonald** (32:23)

Yeah, I think the figures that I saw which was you know, closer to the end of August were around forty percent still hadn't enrolled. Yeah. Yeah.

**Peter Schravemade** (32:31)

Yep. And they've been that but they're giving leeway. It's probably just a reminder that if you haven't enrolled, maybe you should put your finger out and enrol. you know, that would that would be that would be awesome. let's move on to I think I think this is the biggest story around the country at the moment and it's it's well worth talking about. and split feelings, polarized A polarizing story, this one. this is the one out of Brisbane at the moment. I I guess it's quite public, so we we can name the agent in this in this instance. It's Bulimba agent, McGrath agent, is it Tony O'Doherty? Yeah, so I

**Kasey McDonald** (33:11)

Yes. Yes. Tony O'Doherty, yes. Yeah.

**Peter Schravemade** (33:14)

as I understand it, he's he's quite a successful agent in his own right, is he not?

**Kasey McDonald** (33:20)

Yeah, absolutely. definitely a a million dollar agent, if not more, within that marketplace and also the director of that McGrath office.

**Peter Schravemade** (33:32)

Yeah, right. And so the the story goes, if you haven't been following, he out of the blue, he had his license suspended what, this week? Was it it was this week, right?

**Kasey McDonald** (33:47)

Yeah, I think it's happened over the last couple of weeks. It's only been the fact that this week it's really come to the forefront through the media. but I think this occurred a couple of weeks ago. but yeah, has now come to the forefront of a full cancellation of his real estate licence.

**Peter Schravemade** (34:04)

Hm. And I think he's been pretty upfront. Like I've signed I cited an email going around that he sent out to his mailing list, I guess, which is explaining what has gone on. from if if you're not following the story, my understanding is that back when he was twenty three in Ireland, he got into an altercation in a bar and he he committed assault, from what I can understand. I believe he paid the f the fine. I think things move forward, but it wasn't until twenty twenty five that he was charged. And when I read the Irish accounts of this, they're suggesting that he might have he might have thought it was done and dusted back when he was twenty three. Like this is this is thirteen years ago, is it not? Yeah, it's thirteen years. So it's progressed thirteen

**Kasey McDonald** (34:59)

Y yes, yes.

**Peter Schravemade** (35:01)

years, and now he Now he's for s for whatever reason, w this bit is unclear to us as to what has triggered the charge. The Irish are saying that that he we are un unable to charge him because he wasn't in the country, but there was no arrest warrant issued. But but something has triggered the fact that this charge has come out of the blue in December twenty twenty five, where he's been suspended to two years in prison, fully suspended because the court is actually saying he's had a clean record since and the civil claim was settled a long time ago from what I understand. So I I don't know if he's been blindsided and there's so many feelings around this story, right?

**Kasey McDonald** (35:43)

Mm-hmm. Yeah, definitely. I think I think it's not clear as to how it you know came about. There's obviously speculation as to maybe how it all came, but he's only just pleaded guilty via video back in November 2025, which is then that's why the sentence has obviously only come into play. And of course, as then a part of the licensing regulations. So whether that's been that's then occurred and then he's gone to renew his license. I'm not too sure how even that. you know, that kind of piece has occurred. It's not been shared, but then the OFT, you know, cancelled it. He is appealing it, you know, in in kind of that piece of I I haven't had that serious offense for such a long time. And yes, it's only just now come to the forefront. but he is appealing it. So I guess we'll just wait to see whether or not the appeal is awarded and what that actually means, I guess for him and him being the director and principal of that office, I guess, and being the licensee, and not holding a licence anymore, he would need to appoint a new licensee. So there's some changes that would be certainly happening within that Bulimba office now as well.

**Peter Schravemade** (36:53)

Well, I would s I would say they've got they've already got someone in in that position.

**Kasey McDonald** (36:55)

Yeah. So

**Peter Schravemade** (36:57)

But the the key thing is in order to be a real estate agent you need to be a fit and proper person and a and a criminal conviction it basically r sweeps through that and goes where you're not a you're not a fit and proper person and that there's a time frame for that to have expired in order for you to be there. But I I guess I guess his point there's there's two things here. So his point is it happened thirteen years ago. even though the charges were just recently laid. and I I understand that I there's a part of me that feels sorry for him in this scenario because I I think he has demonstrated that he has changed his life, I I I'm assuming, and has gotten on with things and now is an upstanding member of society and that, you know, that time frame ha has probably elapsed, but because of the technicality, well his you know, his departure from from Ireland I would imagine, to come and work here and for whatever reason that's triggered it and the court case has come to an end. yeah, I like that that side of it I feel sorry, but th the we have we have that law in for a reason though.

**Kasey McDonald** (38:06)

Mm-hmm. Yeah, absolutely. I I think there's like five or six things, right, as to what they look at as a part of those criminal checks. and I guess they've appi a positioned this in terms of from an assault perspective that that falls under one of those categories. yeah, I I guess, you know, in this situation, here everyone or in any situation, everyone has a right to appeal what you know, the sentence they've been awarded and what's occurred here. So yeah, I guess it'll be interesting to see what does play out. but you know, look, the guys they will have appointed a new licensee, I can only imagine, but there's just other operational things that they then would be going through within that office, you know, what's on form sixes, which is the authorities to act, you know, the name on the door, you know, just all of those different things and and that have to be operationally changed and thought about as a as a part of this decision.

**Peter Schravemade** (39:01)

But is this not is this not the age old debate? So we you know, I I I had a friend who committed a heinous crime years ago and had served his time in prison in another nation and came came here and was really setting his himself back on the straight and narrow when a bunch of people from the the city that he used to be in overseas found out where he was living and basically assassinated him, sent through the details of his crime, which were extraordinarily bad. Like I'm not making light of that at all. I I'm not defending that crime one bit. but part of me says, look, he's been sentenced, he's done his time. At what stage as a society do we do we move on and we forgive that person and and move forward? And this is what McGrath's really saying. They're saying look, there's a thirteen year gap. It's just a technicality. Well, I I'm I'm I don't want to use just the technicality. There's a victim here. over in Ireland who got punched in the head and had a fractured skull. So the the details of that aren't aren't wonderful. But at what point do we do we move on as a society and say, look, you know, Tony's actually changed his life around and is an upstanding member of society and can we forgive that? And unfortunately, I don't I don't think there's going to be much flexibility in this instance. I don't think that they can pardon him on this and say, okay, we're going to let let this go because of the precedent that that would set for people who are actually not a fit and proper person. Like can you imagine, you know, somebody who has done something and and it's fresh going into real estate and and and I d I just I don't I don't think there's much hope that he's going to get through at this stage, but I don't know. What are your thoughts?

**Kasey McDonald** (40:46)

No. Yeah, look, I tend to agree with you. And I I guess it's quite challenging for the fact that it happened in twenty thirteen. And if it was heard then in the courts at that point in time, being now for the fact that he's turned things around, character, his life, you know, all of that, if he was going for that real estate license now and applying for it, it would ask that question, but it has that time limit on it, right? Which means that they wouldn't then be searching back so many years. But because that was only heard in the courts a year ago, it's what obviously has kind of brought this to the forefront. So y and

**Peter Schravemade** (41:20)

Mm. Triggered it. Yeah.

**Kasey McDonald** (41:23)

and triggered it. Yeah. So yeah, look, it it's it's an interesting one, but I tend to agree that if they do, if it if he does win an appeal, what precedent is that setting? you know, what does that mean for everyone else who's maybe had their licenses suspended and or cancelled for similar situations? and they've tried to appeal and they haven't and they haven't won. So yeah. interesting to see how this plays out.

**Peter Schravemade** (41:47)

Yeah, and I'd I'd say, full credit to McGrath here. I really like the fact that they're standing behind him. They're obviously you know, they're obviously

**Kasey McDonald** (41:53)

Yeah, absolutely.

**Peter Schravemade** (41:54)

aware they're obviously aware of the the crime in the past and that's saying we don't believe he's that man today. So well done to the to the franchise for backing him on that. And you know, to him, I'm actually wishing him the best. I I'm sure he, you know, is I it it says all through the thing that he's he's remorseful for his crime. So I don't I don't know what the outcome's gonna be, but I wish the best for him and his family if he's got one. So yeah. Watch this space. We'll see what happens there. I'm sure that's this is gonna play out over the next couple of weeks. Now, this next article is one in my wheelhouse. I feel like I feel like I spent the Yeah.

**Kasey McDonald** (42:27)

It is. But one thing I want to ask you though, right? Because it's like it is in your wheelhouse. But this is when I first saw the headline, this is what the headline says. Housefishing in New Farm. And this is me. yeah? Housefishing. Okay. They're on the back and they're like, you know, fishing out of their back into the into the Brisbane River, right? As an example. Not at all what that actually means. So Pete, maybe could we start there with please explain to us what does housefishing mean?

**Peter Schravemade** (42:57)

Well, I used to be I used to be referred to as the catfisher of real estate. Everyone's familiar with the term catfishing. And it wasn't because I you know, I sent through an ugly picture and turned up as the ruggedly handsome man I am. It was largely it was largely because we edited the imager imagery like a in my time at BoxBrownie that was what we did and for the the better part of that nation nationwide and internationally I was considered to be an expert in Photography, copyright, image editing, ethical marketing, ethical marketing, and that's the key today. That's what we're going to be talking about today. So, you know, I've had a look at this. If you haven't had a look, the story is housefishing in New Farm refers to the fact that somebody has felt catfished by photos that have been put up for a for for a sale. Is it it's it is for sale. No, it's for rent. It was for rent.

**Kasey McDonald** (43:49)

Mm-hmm. No, for rent. Was for rent.

**Peter Schravemade** (43:52)

And you can go and have a look if if it's still up there at the moment, or might it be taken down? It's twenty-two Mark Street in New Farm. so this thing it has all the trimmings of it, but if you look at it, there are cardinal errors in what they have done. So the number one thing that we used to get asked when we were selling BoxBrownie around the world, and you you were with me for some of this, is like, you know, where do you stand on ethics? And the reality was most of the real estate agents I met around the world. didn't actually know where they stood. they they were not aware of what photo editing went on and where the line was drawn as to, you know, so should we take the power lines out in front of our house as a great example? Well, no, I d I don't think you should. I think you should present it as is. But is it then ethical to remove the power lines and then put a disclaimer? Well, no, it's not, because you probably can't take those power lines out, right?

**Kasey McDonald** (44:47)

Mm-hmm. Power lines are. Yeah, yeah.

**Peter Schravemade** (44:49)

Yep, let's let's go to a tree. There's a tree out the front of the house on your property and it's obscuring the street, you know, the street appeal of the property. Can you take that tree out, disclose that we've removed it, and then put it forward? Well, yes, you could say this is a potential add on, here is a quote for removing that tree. This is something that you can do. I'm disclosing to you here's the before picture with the tree obscuring the property, and here's the after. That you haven't breached any ethical conduct because you're actually not misrepresenting the property you're selling on potential. And so a lot of that a lot of that it was highly technical. So here in Queensland where grass grows really quickly, we could repair or replace grass because truly a buyer can come in and within two weeks they could have a wonderful lawn again if they really wanted to. can we remove a grey sky? Well yes. Especially in Queensland where it presents the property better. Like these are the things that came on. But let me go to Arizona or Las Vegas you know, Las Vegas and Nevada, where it's in the middle of the desert. Can we replace grass in those images? No. They can't grow any. Most of them have synthetic grass. So, you know, there there are things there are things that you can or you know you can do to present the property in its best light. Now this particular instance and hopefully by now you've gone and looked it up on your phone. It definitely overstepped the mark on multiple occasions and and it was all AI. This is not a human editor that's been done and and this is a great this is a great example of where you can absolutely come a cropper using AI and not paying attention to the edits that are there. Like I th I'm sure you would agree with me, the picture presented is immeasurably better than the house itself, right?

**Kasey McDonald** (46:37)

Mm-hmm. Yes, definitely. Absolutely. Yeah. So the, so it was, there

**Peter Schravemade** (46:40)

Yeah. So somebody

**Kasey McDonald** (46:42)

was no disclaimer, right? There was, so, you know, to your point before that and that was a really good point to raise, is that it's that kind of before and after and the disclaimer that explains that. And this is this is what it is with the tree, right? So it's surreal, and here is what it is without it. And there's a disclaimer to show that we have then removed that tree out so we can show you what the potential could be if you were to do that. But in terms of how this was generated, there was no disclaimer whatsoever. no renovation mentioned, but in terms of what was represented was completely different.

**Peter Schravemade** (47:19)

Yeah, I'd I'd go even further than that. There like there are parts where the artificial intelligence has stretched walls, which is not physically possible, but AI doesn't know that. there's parts where you know, like it has taken out power power plugs from a wall and things like that. 'Cause the AI doesn't know that. That's it thinks it's decluttering. so when I had a look at this, there there are a thousand I actually don't think they could get around this this one with a disclaimer. I know We're kind of saying you should disclose that it's been AI generated, but in this particular instance I just think this is flat out misrepresentation of that property. I think it's a cartoon or a a CGI animation of what it could look like. And

**Kasey McDonald** (47:57)

Absolutely agree. Mm-hmm. Mm-hmm.

**Peter Schravemade** (48:01)

I I actually don't think a disclo a disclosure on this unless it said you're looking at a ho this is not the real house, you should come and inspect it yourself. I don't I don't I th I think this is a lay-down misère. They've absolutely cocked this one up. They've just got it wrong. So Yeah, I don't I don't I don't know a way around that. Mm.

**Kasey McDonald** (48:18)

Yeah, I think the challenge being a rental as well, right? Like with with that, let's just say, and you know, I'm not saying that this has happened, but it can, is that there's obviously an opportunity now where renters maybe don't need to physically inspect the property. There are other means. and that if s if a tenant in this situation did do that, w applied, was accepted, you know, paid

**Peter Schravemade** (48:41)

You'd be disappointed. Yeah.

**Kasey McDonald** (48:43)

you know, rent and bond and then you kind of walked in on that day to see something completely different. yeah, you would be disappointed. But more importantly, I guess from a legislation standpoint, you know, does that what grounds does that actually give that renter in terms of being able to exit the tenancy and knowing that it's been fully misrepresented in that case?

**Peter Schravemade** (49:01)

Yeah, I think they've got every right. I think they would let them out. But you know, I should point back to the the Property Occupations Act here in Queensland. false and misleading representations selling or leasing is up to five hundred and forty penalty units. I I actually think they'll probably get that. False representations about land. Yeah, like th they could go up to fifty min they won't do that. But the these guys are gonna get sanctioned for sure. And probably should, because I I actually think this In this particular instance, I think it goes above you have a stupidity and an ignorance clause. like ignorance is one thing. I didn't realise I removed the power plug on the wall. It's not material. They have edited every single image in a way that totally misrepresents this property, and I I actually think there needs to be a sanction. to send a warning to people that they shouldn't be doing this, I don't I don't think I don't think this was ignorance. Yeah.

**Kasey McDonald** (49:56)

Mm-hmm. I mean, look, it's great that we can use, you know, Chat GPT to see what we all would have looked like in the 80s and as an example, but I think to actually use it to represent an entire property in full is not something that we should be utilizing AI for.

**Peter Schravemade** (50:15)

Yeah. Yep. Let's move on. but if you get a chance, go and have a look at that property, it'll give you a good laugh. but you might actually have to find the

**Kasey McDonald** (50:20)

Hmm. Yeah, absolutely.

**Peter Schravemade** (50:22)

news article because I don't know if the property's still up or not. I didn't see that today, but I did see the before and afters. this one's a a a story about I guess i emplo employment and how employment works in the office, right, Kasey?

**Kasey McDonald** (50:37)

Yeah, came across an email that was you know sent through from Realgate Legal, formerly O*NO Legal, talking through around contractors and I guess what that kind of means from an employee status from the conjunctional arrangements. So the the article talks through Revenue New South Wales, really kind of diving into this. more importantly around you know tax implications, payroll, payroll tax, you know, commission splits, all of those things in terms of how much you've got that particular, I guess, employee or contractor actually set up correctly. So yeah, it it it the article sort of reads through the ex exemptions and I'll just read through a couple of what they need. So the services for a contractor needed under 180 days a year. So selling is a year is all year round. A contractor worked 90 days or fewer, so every call and inspection counts, and works for for other unrelated agencies, so they don't, engages two or more people, so there must be genuine business staff and systems, and obviously utilizing those systems, and then section 47 around the anti-avoidance. So even a valid exemption can be set aside. Where the arrangement has the effect of reducing payroll tax. So we might put the link in just so that everyone can actually have a bit of a read. also pop onto the Realgate legal website just to get yourself familiar for those listening in New South Wales. But Revenue New South Wales are kind of coming down a little hard on what does an internal conjunction actually mean? how many are out there? You know, so it's not just sales, it's looking at your BDMs on commission as well. So so, you know, principles out there, make sure you're having a look at how what this actually means for your business right now.

**Peter Schravemade** (52:34)

Yeah, and to explain it to people who may not understand the way that that works. An internal conjunction is when you have an agreement with your probably your principal that you are going to conjunct on a sale. external conjunctions are obviously where and I've I've I did in my entire career in real estate, I did two conjunctions ever. that were so hard external conjunctions, they were so hard to put together. That's where I work for one agency and somebody else works for another and they go, Hey I notice you're listing this property, I have a buyer for it. Let's do a conjunction and we agree on a a split of commission and one goes one way and the other. Well, yeah, an internal one is where a licensed agent works inside an agency and within its brand there is a conjunction between I'm guessing them and either the office owner, but I suppose it could also be them and another salesperson in the office. And it's really the the talking point here. Is Revenue New South Wales has said in writing that most commission only contractors under one brand are employees for payroll tax. Whereas I think they at the moment there's a lot of agents operating that who who think they're a a subcontractor, but they should actually be y that that's exact th

**Kasey McDonald** (53:47)

Mm-hmm. And potentially exempt from the payroll tax piece. I think that's what that's what Revenue New South Wales are. Yeah, yeah.

**Peter Schravemade** (53:53)

yep, that's exactly it. And so more than anything this is excellent because your employer and yourself have structured your your arrangement there, especially if you're in New South Wales because I think that's a bit of a warning sign. you wouldn't want to get be getting stung because it'll have massive implications for you, not just for taxation purposes, but you know, think of things like workers comp and whatever else. Like if yeah, and and on and on from that. You went to the REIQ lunch last week. have you got what what was what was coming out of that? Like so the two there were a couple of guests with David Janetzki, the Queensland Treasurer. and then there was then there was Kehoe, was it not? It was John Kehoe, yeah, from yeah. I I

**Kasey McDonald** (54:41)

Mm-hmm. John Kehoe. Yes, the economic economics editor of the AFR. Yeah.

**Peter Schravemade** (54:47)

and you s you said it was a g a pretty good day. I know those things can be hectic because they you know, sometimes Well, we all love good economists, but

**Kasey McDonald** (54:58)

no, well actually to be fair, actually, David, the Queensland Treasurer as well, you know, for for being a numbers guy, awesome personality, he resonated incredibly like he sa it was actually just

**Peter Schravemade** (55:09)

He's he's he

**Kasey McDonald** (55:13)

you know a down-to-earth, good bloke.

**Peter Schravemade** (55:15)

Yeah, it's not.

**Kasey McDonald** (55:16)

and the way in which he related to the room, I thought was Really gray. Like it's kind of it just wasn't this kind of numbers talk, like you're sitting there talking to an accountant sometimes. yeah, right.

**Peter Schravemade** (55:26)

W when was the last time you when was the last time you saw a treasurer who used humor? Like

**Kasey McDonald** (55:32)

Yeah, I know that's what I mean. Like it was just and he was having he, you know, he was having jokes and banter and you know, so it was just really nice to see, to be fair. and which obviously made what he was sharing a lot easier to listen to, to be fair. So but yes, look, obviously just, you know, I I think it's a kind of a waiting and seeing game in terms of a few things that he's shared. you know, he's he kind of shared that he's been chatting to You know, two of the big four CEOs around some loan applications and approvals. They sort of indicated specifically in Queensland that they are down. and he's he did use the word uncertainty quite a bit within his fireside chat with Antonia. So you know, look, I don't think kind of what he shared was anything that we all didn't know, but it was just really great to hear some of the numbers and what they are seeing. or I guess specifically here in Queensland based on the overall federal budget that was announced.

**Peter Schravemade** (56:33)

Well, yeah, I think I think that was the that was the the large takeaway when you were talking about this to me is that his comments on how that was bought in and how much foresight they had of it and you know, it sounded it sounded like it was pretty much Jim Chalmers came in and said, We're gonna do this in the federal budget. it's not up for discussion. We we're actually gonna do it, you deal with it, right? Was that is was that the take?

**Kasey McDonald** (56:55)

Yeah, look, look, basically that was my take out of what he shared. And he didn't say those, you know, exact words, but absolutely in terms of how he explained it, that's my interpretation of I believe as to what's happened here. so yeah, it'd be interesting to see if anyone else

**Peter Schravemade** (57:10)

Yeah, specify.

**Kasey McDonald** (57:11)

kind of took that. But he yeah, he specifically has said that let's just say there are definitely policies and reforms that have been put into play that Queensland. in particular, do not agree with, don't agree with. so he did make that statement very, very clear. Yeah.

**Peter Schravemade** (57:28)

Yeah, he but I think the big one was he's on he's on record as having said he's not paying for Jim Chalmers budget, right?

**Kasey McDonald** (57:36)

Correct. Correct.

**Peter Schravemade** (57:38)

Yeah, and that that's that's a that's a telling thing, you know, like I mean I I know Queensland's a bit of a thorn in their side at the moment 'cause it's one of the only LNP governments that are that are there, sort of so y you know, and that the whole guns debate, I know they wanted they wanted Queensland to come alongside them in the gun regulation and and Crisafulli basically said, Look, we don't we don't think those will work so yeah, it seems to be they're just a bit of a we just Maybe we're just the rednecks up from up north. I don't know. Yeah.

**Kasey McDonald** (58:10)

Yeah, maybe. I don't know. Yeah. but look, to be fair, John Kehoe was absolutely brilliant. and you know, as a part of his presentation, he certainly had some slides and things that represented you know, what he was also sharing. he he he shared a couple of things around the kind of rise in investors' mortgage rates. I think it's gone up sixty basis points. for for investors' mortgages. So he sort of shared around some numbers on those for investors. He also shared that transactions are down about fifteen percent. Loan applications down are about fifteen to twenty percent. and and that that that information was coming from Nerida Conisbee, one of the economists, who I think she is Ray Ray White is Nerida Ray White. I'm not sure if Nerida I think I think is Nerida Ray Ray White or a domain?

**Peter Schravemade** (59:04)

Ye I I d I don't know. I no, I'm not I'm not sure.

**Kasey McDonald** (59:08)

I think, I think apologies. Apologies if I've got that wrong, Nerida, or if you are listening today. but yeah, I sorry if I've I've it said where you're from incorrectly. But yeah, he also obviously positioned that the treasurer made that statement very early days around adding $2 a week extra to rent. and what that's going to to kind of look like. even in terms of where the trend is going, it we're already on a plus six above that. And it's trending definitely towards the $40 a week mark for renters. And then I did actually see today come out that Chalmers has remodeled his own budget and has now reforecasted to say that sorry, it's not going to be $2 a week. It's now $10 a week. So you know, four months down the track he's gone, yeah, I'm going to change my mind again and go from two to $10. But in terms of where that, you know, that line is moving, it's already heading towards forty dollars a week. So, but the interesting thing was, I think, out of all of that is that he had a little giggle and sort of said, Hey guys, remember when I was here in 2024 and we were chatting on some of the same things and where things were going. And I showed you this slide and it had five points on it, and it had this is what's forecasting to come. And it was all of the tax reforms that have come into play, including trust. self-managed trusts, you know, investors, tax changes, interest rates, exactly what has occurred right now in budget for us. John shared with us in 2024 here in Queensland to expect it to come. So quite interesting, you know, that it obviously was already kind of shared. And of course the the Labour government came to market. through the polls to get more voters without actually disclosing that some of these things were already on the cards. and then they backtracked, right? and you know, gave us all false promises really. But yeah, just really yeah, it was really great to kind of hear exactly what is being said, I guess, inside those s four walls of parliament to the to as much as obviously John can can share publicly, of course. but yeah, really, really great, really, really great lunch. Yeah.

**Peter Schravemade** (1:01:24)

Yeah. Yeah, they always are. Yeah, and well done to the team at the REIQ for putting that on. Hey, I've got one more for you, Kasey, just before we go. And it's a bit of a flashback to episode sixteen. I'm sure you can remember we were talking about there are a couple of states that were looking at rent caps. Well this one's from over in the west, where rent they were It was an article actually, I think it was in the West Australia rag there where a lady had come out and she'd put three pieces of evidence for San San Francisco and Stockholm talking about comparing them with Perth. Well, I mean what a champion. They're very similar. But and then yes I and and I I believe we had our our mate Rob Mandanici, who had come out immediately and said that's th this is ridiculous, like you can't compare us with that. That's it's not gonna but yeah, they're talking about putting a a a cap on what a home costs to rent. the they're obviously dealing with the supply and demand issues again and i there's just more n noise this week. People coming out saying that would be a really, really bad idea and here are all the reasons for it. So, you know, it's a watch this base. That article was was two weeks ago, so old news, but obviously the the conversation is still brooding over there and I know I know that we were are pretty much on the front foot in saying, look, we don't agree with that article. We don't think it's it's yeah, yeah. So we'll we'll watch that space and we'll keep on going. But that's really all we've got for you today on Before the Weekend. It's been really great to join you again, Kasey, or albeit later today. And I apologise to our listeners who who are expecting this to come out by lunch today. It's my fault. I did wake up at three AM in the morning so I could get this done. So there's my commitment to the cause. But you know, it's good to good to have you all on the show. for Friday, the eleventh of September. Kasey, what have you got on for the weekend? Anything interesting?

**Kasey McDonald** (1:03:19)

Yes, actually heading down to Sydney for the PM/ONE conference, which is kicking off on Sunday. So really excited for that and catching up with all my, you know, PM BDM fans and of course all the other suppliers in the industry that we love hanging out with. So yeah.

**Peter Schravemade** (1:03:36)

Yeah, yep, yep. And I'm I'm off tomorrow. I fly from London to Colorado, going to a gathering of all of the reach companies from around the globe. We put it together, so I'll be hanging with a bunch of tech nerds next week. Looking forward to that as well. But I am actually looking forward to Yeah.

**Kasey McDonald** (1:03:50)

Mm-hmm. Well, I'm looking forward to your update, right? Because I know that you won the pitch. Hey. I know that you won the pitch. So I'm interested to hear what happens over in Colorado.

**Peter Schravemade** (1:04:00)

Yeah, yeah, yeah. Well yeah, the pitch is one thing, but getting together a a group of nerds in one room, it's like hurting cats. But it'll be fun. It'll be fun. Hey, if you're if you're out on

**Kasey McDonald** (1:04:11)

you'll come back with some new butte tech thing, right? Hopefully. Yeah. Yeah.

**Peter Schravemade** (1:04:15)

Hope so I hope so. I hope there are gadgets there. if you're if you're heading out on the weekend, we wish you the very best for selling, leasing, whatever it is that you may be doing. And thanks again for listening to us. If you're new to the program, you can find us on all the majors. but if you start at beforetheweekend.com, that would be great. We're always on the lookout for people to come on the show. So hello at beforetheweekend.com if that's of interest to you. but Kasey, great to see you. Thank you for having me again. Although it's it's probably it's probably thank you for thank you for tolerating me again. Let's go with that.

**Kasey McDonald** (1:04:51)

No, always tolerate your Pete. yeah, no, to everyone listening, have a fabulous rest of your Friday. Enjoy your weekend. Go and crack that beer, open that bottle of wine, whatever, you know, i is your drink of choice. safe travels, Pete. and we'll see everyone or you'll listen to us next Friday on before the weekend. And that's a wrap.

**Peter Schravemade** (1:05:15)

Show.