Sale heralds Bunnings’ arrival in Alice

David Forrest (right) congratulates syndicate member Phil Danby on the sale

Media Release: 30 September 2011

First National Commercial Framptons of Alice Springs has negotiated a major industrial sale that will see the arrival of the Bunnings Hardware group in Alice Springs.

Settlement of the sale was effected this week, following negotiations that took over three years.  David Forrest, a director of First National Commercial Framptons said the lot was owned by a local syndicate who were delighted with the result which was in excess of $3,000,000.

The lot is located at the northern end of Alice Springs and has approximately 135 meters of highway frontage. Covering an area of 24,520 square metres, it was the only remaining lot of that size with substantial Stuart Highway frontage.

‘The sale took considerable persistence but the result was worth the effort’ said Mr Forrest.

‘This sale shows the confidence that major companies such as Bunnings have in Alice and the wider region and should be a lift for local industry. Contractors are already preparing quotes for demolition works and, after construction, the facility will employ around forty people’.

This major sale follows the sale of three Supermarkets by the First National Commercial Framptons team earlier this year, cementing First National Commercial Framptons position as a major player in the Commercial Industrial market in Alice Springs.

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For more information: National Communications Manager, Stewart Bunn on 1800 032 332

Should I re-paint or house wash?

Image courtesy of Emerald Exterior Cleaning (Central Coast, NSW)

One of the great ways to keep your investment property looking fresh and appealing is to arrange for a house wash once every few years.

As time passes, even good quality paintwork collects grime, mould, mildew, dust and cobwebs, making it look prematurely aged.

However, the good news is that it’s not always necessary to re-paint.

Sometimes, even the mouldiest looking paintwork can be restored to near-new condition using a professional house washing service.

Professional house washers use professional grade cleaning solutions, applied to the surface with a soft broom and cloths. A low-pressure spray is then used to rinse your home, giving a brilliant result without damaging any paintwork or woodwork.

In most cases, professionals will clean even the hardest places to access like fascias, eaves and gable ends.

Best of all, it doesn’t matter whether there are water restrictions in force where you live. Professional house washers are granted special licenses to undertake their work, year round, so even in times of drought, you can legally have your property tidied up.

Ask your First National property manager for more information about local contractors.

When you’re on a good thing, stick to it!

Call to stop dribbling on water

Murray darling murrumbidgee map

Image via Wikipedia

Media Release – 22 September 2012

The Shadow Minister for Water Security, Energy & Minerals Resources, Mitch Williams MP, has called on governments to act on water management and stop ‘talking’ around the issue.

“Arguments about the management of the River Murray system was one of the issues delaying Federation, more than 100 years ago, and those arguments are still going on.  We need action, not talk,” Mr Williams told delegates at the First National Commercial and Rural Conference, “Grow Your Footprint”, held at the InterContinental in Adelaide recently.

Mr Williams has spent most of his 14 years in parliament working hard on water issues.

“I got involved in the 1990’s when we started licensing water – and in South Australia it is still not resolved.  Every bore in the South East of South Australia has had a meter since 2006, but we still have not moved from area based to volumetric licensing,” Mr Williams said.

“Around 80% of South Australians rely on the water in the Murray Darling system to live, work and eat and with the price of water only expected to increase, this will put undue pressure on many hard working families, especially in rural areas.

“Farmers in my electorate, for example, are paying up to $100,000 per annum for water which may well see livestock farming become unprofitable, resulting in higher food prices and ultimately becoming an issue for all of us.”

First National Real Estate Chief Executive, Ray Ellis said if farmers were to exit the areas as a result of farming becoming unprofitable, the impact on property prices would be detrimental.

“Farms are crucial to the very life-blood of a rural community.  Take away that livelihood, and the flow-on effect would be to rural property prices,” Mr Ellis said.

According to Mr Williams, governments have been working since Federation to control the Murray with locks, dams and barrages, and have changed it forever.  “At a COAG meeting in 1994, we separated water and land titles so we could use water for higher economic purpose, but that separation still has not happened in Queensland,” Mr Williams said.

“In 1995, the states agreed they would take no more water out of the river, but significantly, even more water has been allocated and ground water licenses have been issued in NSW, right next to the river, and the states have been in denial that this would affect river flows.

“Water is stopped before it even gets into the river, through flood plain harvesting, and the rights of people further down the stream have been taken completely away.”

Mr Williams said the river was critical to production and the rural communities along its banks that rely on it.

“Country towns throughout the state depend on the irrigation generated by the river.  A holistic approach is required; one which considers the issues of communities further upstream and downstream and where a mutual understanding of the issues for each other can be reached,” Mr Williams said.

“We have missed many opportunities to do something about this. The drought concentrated the ideas of the Australian people and then Howard offered $6 billion to build new infrastructure to use less water with projects like subsoil irrigation which can double productivity or halve water usage.

“Hardly any of that money has been spent. Rudd also promised the samein 2007 saying it was a priority but four years later nothing has changed.

“We are still waiting for outcomes from the Murray Darling Basin Authority and we are all just hoping they get it right.

Mr Williams outlined for the conference delegates a few of the competing interests that need to be considered in managing our water resources including increasing water costs being paid by water consumers.

“Our dilemma is more about the management of our water resources rather than a scarcity of water.

“In the city of Adelaide the annual consumption of water is approximately 200 gigalitres.  Currently approximately 160 gigalitres per year runs into the sea as stormwater from this urban environment.  The technology has been proven to recover, clean up and reuse much of this water resource.

“There are vast aquifers beneath metropolitan Adelaide where such water could be stored for future use.  Currently some metropolitan councils are doing just this providing water for parks and gardens and industrial use.

“Alternatively the Adelaide Desalination plant will provide the most expensive water in Adelaide, as a result of indecisiveness and inefficient business practices, the cost of which will be borne, once again, by the consumer.”

Mr Williams said water management will continue to pose a difficult problem for rural areas as long as governments continue to mull it over, instead of making a decision and taking action.

“Action is what we need now, not more talking.  I think we need to stop being ‘precious’ with ourselves, and start doing something for our most precious resource.”

For further information contact National Communications Manager, Stewart Bunn on 1800 032 332

Property sales under the hammer

Media Release – 20 September 2012

In a property market which is currently slow, as a result of buyer uncertainty, auctions are proving a way of getting property to move.  Properties that go to auction are spending 40% less days on the market and First National Real Estate’s corporate auctioneer said he expects this trend to continue.

“Even though there is uncertainty about the market, the future, carbon tax and so on, there are often no real concrete reasons why properties are not selling” corporate auctioneer Mike McCaffery said.

“We are seeing this in every state across the country, where auctions are moving properties faster than other sales methods”.

“We encourage vendors to go to auction for a number of reasons,” Ray Ellis, Chief Executive of First National Real Estate said,

“For the vendor, it provides a set date when they will know the result of the sale.  For the buyer who might be thinking about a property and are considering their options, an auction actually helps them make a decision.”

“In many ways an auction is a mini version of the market,” Mr McCaffery said.

“On the day, both the vendor and buyer can see what the interest is and the price people are prepared to pay.  An auction says this is the day, this is the time, make a decision.  It makes people certain one way or the other.”

“If property owners really want to sell their property, we tell them to go to auction, we know they will get a result on the day,” Mr Ellis said. “We know the market, we know the buyers, and we can bring those buyers to the auction and get a result”.

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For further information contact National Communications Manager, Stewart Bunn on 1800 032 332

The State of Play

Amid gloomy economic conditions globally and a generally subdued housing market, First National Real Estate believes encouraging signs have emerged in the Australian housing market.

The September Westpac Melbourne Institute Index of Consumer Sentiment is now at its highest level in two years. The survey that tracks responses on ‘whether now is a good time to buy a dwelling’ jumped a healthy 15.1% in September, following a gain of 8.1% from August to September.

Anxious households clearly drew comfort from the concrete evidence of an improved outlook for interest rates when major banks lowered fixed-rate mortgage rates in August. Strong recovery in economic growth in the June quarter attracted wide media coverage and this is likely to have also boosted spirits.

First Home Buyers expected to make a return

FHBs are expected to re-appear towards the end of this year, led by buyers in NSW trying to beat the December 31 deadline for the end of Stamp Duty concessions. One mortgage originator says loan enquiries from FHBs are up 15% nationwide and 30% in NSW last month, on the back of interest rate stability for the past 10 months.

Buyers market? Yes, no, maybe…

Buyers’ agents nationwide report a property market ripe for the picking. However, that’s not consistently true.

In Sydney, good value remains as elusive as always while in Melbourne, investors have the run of the market.

A fundamental supply shortage exists in key areas of Sydney and this is exerting underlying pressure on prices. However, properties that would previously have attracted five to eight bidders are today attracting less than four. Still, First National’s auction clearance rate has lifted in recent weeks, according to Corporate Auctioneer, Michael McCaffery.

Melbourne’s lackluster performance is allowing investors to pick the eyes out of the market. Three and four bedroom houses in Flemington, Carlton North and other inner suburbs are showing very good value. One bedroom apartments in Coburg, Clifton Hill and West Brunswick are, in some cases, $50,000 cheaper than they were last year.

South Australia is particularly price sensitive after a 12 year Bull Run has come to an abrupt end. Properties in the $500,000 to $1,200,000 are considered to have the potential to fall between 10% and 15% from the boom values of October 2010, but owners are holding despite considerable ‘mortgage stress’.

Perth has yet to reach the bottom of its adjustment and recovery is anticipated in 2012. There are between 16,000 and 17,000 properties on the market, well over the equilibrium figure of 13,000. Long-term strong performing suburbs like Leederville and Subiaco may see a 5% to 10% correction. Opportunities are tipped in suburbs a kilometer from Perth’s CBD where re-zoning is about to unlock re-development opportunities. Suburbs such as Padbury, Craigie, Heathridge, Joondalup and Greenwood offer good value buying and renting.

Tasmanian prices have fallen, but only in the media, and the REIT has taken the Hobart Mercury to task over the publication of out of date ‘mainland’ data, and, the Southern Cross TV network over predictions of a return to 2001 values. Institute figures show a 7% rise in the median price over the past 2 years and, in recent weeks, an increase in the number of sales and quality properties being listed. With one in seven property purchases being made by mainland or overseas buyers, demonstrable interest remains in Tasmanian property investment.

The Westpac-Melbourne Institute is indicating highly favourable buying conditions in Queensland – prices in key investment areas have fallen 7% to 10% on last year’s prices. Predictions of a 35% fall in the values of Brisbane properties haven’t materialised but there are 18% more properties on the market than in the same quarter last year. The biggest drop in values has been seen in outer Brisbane suburbs such as Caboolture, Ipswich and Beenleigh – 15%. The Gold Coast has suffered more than other areas and is being targeted by bargain hunters. ABS figures show a rise of 16% in financing of investment dwellings for the June quarter, but active buyers are still well below long-term averages in Queensland.

First National agents rally to aid flood-ravaged club

Oxley Bowls Club

Source: South West News

Oxley Bowls Club in Brisbane has been given another donation to assist with flood recovery.

First National Real Estate Oxley principal Geoff Hawker handed club president Lindsay Hill a $5000 donation from the First National Foundation and Australian Lions Foundation earlier this month.

Mr Hawker said money raised came from members across Australia.

“We all worked here on the ground to help during the floods and now it’s great to be able to give some financial assistance as well,” he said. “It is great how our network can pull together to support people on the other side of the country.” Mr Hill said the donation would be used to purchase new scoreboards.

“We’ve just about got the kitchen completed, a new office and we’re putting new vanities in the lady’s toilets,” Mr Hill said.

“We’ve got new floodlights on the greens so are looking at starting our barefoot bowling again soon.”

First National Real Estate established a National Volunteers Register for its 400-plus office network to assist flood-affected members to deal with the deluge of assistance sought by tenants living in rental properties.

Super time to invest

Adelaide InterContinental

Media Release 8 September 2011

First National Commercial and Rural agents today heard from a superannuation specialist at the InterContinental Adelaide that superannuation funds represent an enormous opportunity for the property sector.

“Self managed superannuation funds (SMSF) are currently the largest sector of the entire superannuation industry and represent real opportunities for property investors” said Patrick Naulty, Director of Th!nkSuper.

In September 2007, the ATO changed superannuation rules to allow for super fund borrowing for investment acquisition purposes.  Since then there has been an exponential increase in the amount of property owned by superannuation funds.

Direct residential and commercial property held within SMSFs over the past 12 months has increased to 15.4% – this percentage represents more than $8.1 billion in property acquisition through SMSFs over the past 12 months alone.

With more and more Australians establishing their own Self Managed Superannuation Fund, there is clearly a significant flow-on effect within the property market.

“Due to the tax concessions afforded to superannuation funds, it is often a far better option to borrow and purchase a property within an SMSF than outside of super,” said Mr Naulty.

First National CEO, Ray Ellis said this offered investors enormous opportunities.

“The market is offering great value at the moment, but people are nervous about increasing their personal debt,” Mr Ellis said.

“Using their superannuation makes sense and can give people a chance to be active in the management of their retirement and investments.”

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