Mike Office, Anita Pudding, Salo Salo discussed on Elevate: The Official Podcast of Elite Agent Magazine
You've been in the industry for forty five years and there's not much that you haven't seen and I'm thinking James of the seventies credit squeeze some major recessions the eighty sevenstock market crash. The PA strike eighteen percent interest rates. What she k. and of course the J. AFC more recently. And so it's a real honor to be able to talk to you about how to manage your way out across because of the crisis that we're currently in the coronavirus pandemic but before we get to that. Let's talk about a few of the past events and what happened and how you manage your way through them. So could we start with the eighty sevenstock market crash? What we have is one of the well. I collect factors knowing shortcomings It caught everyone Prize we wake up on Monday. Morning and Wall Street had fallen by seven hundred something about twenty five percent of its value. I've not and adjusts sent shockwaves through the world. The difference appropriate to anything. That's happened in morosely. It was somewhat limited to DIS applies in the stock market and it was not as robust as as some of the subsequent events and the impact on the economy was lastly restricted to that but it had clear impacts on financial institutions and so on so the normal thing is. I always former these crises is. There's a knee jerk reaction knee jerk. Reaction was just self Salo Salo F- and that just Y- put pressure rod through financial markets when the dust settled and the Toca bat six months in that particular event there was less experienced people in in terms of stock markets and they was not financial advisers and saw the element of noisy and what happened was a lot of money was taken out of the stock market and then went into the real estate market. It started the boom that ran through sort of the Thailand of seven into White. And into is tonight he no? I'm but that boom actually triggered the recession. We have which happened in the early. Nineteen nineties. What looked like a one period The real estate industry and that was our member doing an auction. Managua thirty three properties absolve thirty two under the hammer was like I'm still dreaming for that one and so there was a short period. A couple years of Maka then buying we went into that that necks periods. I can't use it as a comparison or anything more recently currently but it was the first real shock that ever happened in Mercury. Yeah so let's let's just row play these for say you wake up on that Monday morning or Tuesday morning here and read the newspapers and gotten into workers you normally would. What were the sort of things you would thinking about Your Business? At the time when that economic shock head thing I remember I had an actual auction elect coming the following Saturday elderly capital and of so excited they were retiring and I know you did this money to finance say their retirement is and I had a bad either non bidders on the auction and by the end of that week. I need is lighter. There was not one bitter and just the confidence was tightly sucked out of the marketplace and so are scratching my head. What do you do? How do we create bar is now while Tillman them? Cori- and so we went through a period of just lost. We didn't know the nothing lack of before and it was the least six loss mansue. Our income was smashed but we just did not have to respond. And there's always nothing responded. There was not as they wanted to inspect properties. Are Mike Office in Psalm? Inside that it was an awful period of time lost not knowing what to do and it was on because this trickle of money sided turning up way people started to show interest in properties that it was more the market that recovered us not ask working within the marketplace. We would just sucked on by the fact that more people start to come back into the market so we was the first experience I had no competence and are had no answer of what I should do to make a difference at the time. Yeah if you could one the clock back now knowing what you know now having the experiences that you've had now what would you tell yourself now if it happened again? Look the big listen and this is command of all the subsequent events and that is that when you can come to terms with what's happened you become the most powerful person in the marketplace at the time when you understand the journey that you follow at the fundamentals of what draw at market these consumer confidence when people at confidence will find Marcellus Shale. I'm going to get a great price and you gotta get mobilize who see sell buys. The auction is now and they sale this heart going hearing leave as going up often. We think that we agent. It's not the markets created. All of that we have plied pod and waving a little bit of magic but the reality was the market. So when you understand what's going to happen and that is that price will correct. When consumer confidence is undermined prices will correct the equation between buys and sells China's from a shortage of sellers and a high number. Is it switches. Almost I've annoyed to the reverse and just like all back. Its stock back. It's the Gulf billion. Mike good when there is more supply than there is demand. Prices will trim back. And so it's quick. You can respond to that head quickly. You can get in front of your clients insight done wake the mark of the slide. Ten percent twenty percent. Let's make that move now. Let's get you out of the market if you need to sell. If you're a long-term held a terrific I'm here for the people who need some help right now and often. It's the people on the financial pressure so forever office. Now we're in. We get enough hours in the day because there was so much to do to help people in this climate and that's what I would be telling myself out the Taj. You know what's going to happen. You know you gotTa roll the play. Get out there and help people. Yeah absolutely when an event like nine eleven came on because that again that was another event that devastated consumer confidence and again all the cycle that that you've been through. How did that compare to eighty seven? The thing that happened was obviously didn't directly affect us. We WON'T ATTACK. But what nine eleven dave was. Stop the Iraq and saw wolves and they gripe fee is about way with Zach and the guy was Russia Gonna come in and start playing a role in ad and of course immediately we had always taught me of Security around the world and was disruptive but it wasn't the same financial panic it was just a period of time disruption and it goes. Well often does happen when the period of fee poces a degrading auditorium but a degree of renewal stats to happen and that wasn't particularly long before we started to say things pick up again after that but it was an immediate shock to the system that the things that I found challenging things. Like say the pilot stripe which was back in the early nineties. Way What we have. Now Klein's on flying and that hasn't been nine months the city all week in the Gold Coast was heavily dependent on tourism and so it took all of Bosnia why we also had the eighty percent interest rates and we had a very lives on board properties. Here's investments that had to get out and so we got this glut of sellers and those things ran for a long time and then heard lots of people in the hip pockets stuff in the hip pockets that has the effect and the other common thing of length rule of these is. It always goes deep a guys longer than we imagine. We liked to hang on hype and thank all this. What's happening now? This'll be either probably in Israel. Six months dawn another consequences of the effects of it wisely. And it's about getting that reality that this is not a bad living in hope it will go deeper and longer than we imagined. Yeah interesting has what's going on now with the current virus pandemic say compared to the GMC and she thousand eight. Which is another cycle. That you've been through so this is like it's fascinating listening to someone who's painter the mall pretty much the affect US guide to measure the effect on this so now he can take surely wig on a lot more cells. I think of a lady that was running I. I was coffee shop at the Brisbane. International Airport. Donnie ZIPPO business alphabet. Nine months full all of this hit based pilot three hundred thousand dollars in equipment and so and it goes eight. Poets was shut down. Put OFF FORTY. Five staff still has the dance. All the leases that she had on the premises bib will never got back into business again. That is going to have a lagging effect on her. She'll take I just recovered. There'd be businesses lot that they'll never come back into business and side one employ the same volume of people in south. So this thing. We're going to see people who are going to are still out of the bank for that all that equipment. Anita sell something heimdal investment properties. So we're GONNA see is significantly more for sellers. Probably we just saw. Last week was a Jemmy invest robberies completely on incumbent with tomatoes completely on income. But but I'm going to sell it because I nine my business. And he was in the travel industry. I nine business will need the financial injection. So we gotta say a lot more of these type of problems coming on the market. And I know that we're gonNA find love the boys going. Ooh I can smell blood in the water. I'm I'm now hurry to sell and I was. GonNa Pie to me for that property. I'll probably offer about one point to now say what they say. So this'll be brought up multiple affected and potentially much deep up the difference. Is this cushioning effect. That the governor's put in place. What happened after the collapse of Lehman Brothers? Is that within four. Or five months thanks wherein taking properties off paypal and we had this lot of mortgage recyles inside you just saw the pipeline full of mortgage which buys even fatal of more of the blood in the While the markets on the white album and so was this knee jerk reaction by banks that caused this Ahmadis law. Now we have cushioning in place but this is Anita Pudding back. What's likely to happen for a lot of people or a job paper? What happens after job? Kepa passes by business. Hasn't picked up two more people. If business hasn't picked up I can afford the rent. Still and solid side. We're pushing some of this down the right of it. There's no talk about debt forgiveness yet so this is the difference is with put a Kushner Rian which will give people a little bit of breathing. Spice little thinking spice but the inevitable is still down the track. It's still going to catch up with us. Dan The track. And which is why. I say it's GonNa last longer because we wanted the worst but now we'll see the cumulative effect later on it is interesting because with the cushioning effect that you're talking about with the banks. I mean we've never seen interest rates so low at the moment and you just talked about that time when interest rates were eighteen percent. And you know you can. You can see how interests would kill people back then like I can vaguely remember it now. I've dated myself again fit. I mean interestingly. What you're saying is is exactly how it could play out so the banks have stepped up because I had a bit of. They gave themselves a bit of a bad name through the Royal Commission so they've stepped up and said we'll just pay the interest and the interest is minimal. But that doesn't mean it's going away anyway. I think the Wolcott if anything is to. What extent can the Government Cape throwing money at people a hundred thirty billion dollars? People lives number people in jobs for six months. But what happens after that? Can I rescue the moment? You know we've got ten SAGANA and be looked after or what about the landlords is going to be some support for them? It's not a bottomless pit of money. That the government can keep trying this inside some stage. We're GONNA start facing realities in their own individual world and just leave that they will be more sailors than boys to have. Long second lasts while. I'm not spending speculating. It because all now is I'm here to help people to die. Whatever the circumstances are and I'll give them the very best opportunity of getting the very best price in this marketplace. They probably knock. I'd be in a lab to shake my hand at the moment. But even if they could they probably wouldn't shake my hand insight withdrew changer. It's not like we've experienced in recent times where all of backslapping and Raji goes a marvelous. What a fantastic result. I'm lawyers say much of that but now year nine months from now that many of our clients again guy thank you. You gave me great advice or go through this thing. I I wasn't having the price but it's show better than I would have got if I wanted another twelve months knowing plice having a contextual understanding about what's happening in the marketplace gives you a much more powerful position to have good conversations with cells. And they gotTA BE. Opportunity football is that we re positioning pricing. And you want to capitalize on that you want to get in the capitalize on that and they'll be baugh this whenever you get the price Roy. Vise coming we saw that what ten days ago? Two ago with the Stock Market Salsa Salt and they bang its value all by.