In this episode, we discuss the concept of hydraulicing, which is where a vendor will sell a property at a price that is higher than what the property is actually worth based on market fundamentals.
An example of this is where a vendor would appear to sell a property at a high price, but would actually sell it to the purchaser for a much lower price. If the bank lends to the purchaser based on the higher price then it is possible for someone to purchase a property with no deposit at all. These dealings involve coordination between a valuer, a real estate agent, and in some cases even the banks.
We also mention JUNO magazine's upcoming property issue, which will be released mid-August. We currently have a special running, which is an annual subscription of 4 magazines for $20. Click here to subscribe to the magazine.
The Property Academy Podcast