Key takeaway: Confidence, not fundamentals, is driving the property market, according to Zoran Solano, Managing Director of Hot Property Buyers Agency. Since the 12 May budget buyers have stalled, but Zoran says he is buying at 5 to 10% discounts to what he would have paid earlier in the year, for investors who can cash flow the difference.
In this episode of Geared for Growth, Mike Mortlock is joined by Zoran Solano, Managing Director of Hot Property Buyers Agency, who works on the front line representing both investors and owner-occupiers in a market that’s historically favoured sellers.
But right now, something’s changed.
Zoran shares what he’s seeing in real time, from falling buyer confidence to the surprising opportunities emerging beneath the surface. While policy changes have shaken sentiment, they’ve also created some of the best buying conditions in years… for those willing to act.
The challenge? Most aren’t.
This conversation breaks down what’s really happening across investor behaviour, rental markets, and first home buyer activity, and why confidence, not fundamentals, may be the biggest driver of the market right now.
Zoran believes it is for buyers with the capacity to act. He says vendor discounting and longer time on market have created some of the best buying opportunities in the last five years, yet many buyers are waiting for certainty. In his view it is impossible to pick the bottom of the market until prices start rising, and by then everyone jumps in. His advice is to get pre-approval, buy quality and take action.
Zoran says investors now expect higher rental yields because they have to fund the shortfall themselves, with losses accumulated and offset in the future rather than delivering a tax benefit at the end of each financial year. Broadly, he says, investors either want the purchase price to be $100,000 lower or the rent to be $100 higher. Something has to give, and he expects tenants will end up paying.
Zoran says rents are already rising and rejects the Treasury forecast, put to him by Mike, of an increase of about $2 a week. Long-term investors are selling tenanted properties without new investors replacing them, shrinking rental supply. Banks now assess serviceability on signed leases rather than rental appraisals, so a rent $100 to $150 a week below market cuts a buyer’s borrowing capacity and the price they will offer.
Quality over quantity. Rather than several cheaper entry-level properties, Zoran suggests fewer properties in premium, stable inner and middle ring suburbs, where he has seen the most consistent growth. He looks for established homes that appeal to owner occupiers, then a cosmetic renovation to improve cash flow and manufacture equity. He says clients who follow his buy and renovate approach typically spend $30,000 to $50,000 on renovations after settlement.
This is general information from the podcast, not financial advice.
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