First National says duty of all to abolish taxes

May 9, 2012 2 Comments

Media Release – 9 May 2012

In the light of the federal budget, which has just been handed down, First National Real Estate says the government should have delivered on the GST promise of abolishing stamp duty and that home buyers should also do their bit to support the Australian property market.

“Australia’s soft property market will continue to tread water unless major changes are made.  We need more new housing stock to come onto the market, indirect costs to be reduced, inefficient taxes such as stamp duty to be abolished – preferably all three!,” Ray Ellis, CEO, First National Real Estate said.

“And  while HECS-like schemes are commendable for assisting home buyers to pay their stamp duty obligations, it should be a matter of reducing, or better still, getting rid of stamp duty altogether and that falls on everyone’s shoulders.

“A struggling property market affects all Australians, as it is a key driver of the nation’s economy and represents a burden for all to share.  This is why home buyers should do their bit and continue to put pressure on governments to live up to their GST promises.”

Mr Ellis said property taxes are reducing home buyers’ ability to purchase new homes, whether they are first home buyers, upgraders, downsizers or investors.

“The real issue for the property market is that buyers aren’t buying and part of that reason is the exorbitant extra costs associated with buying a property,” Mr Ellis said.

“These extra purchase costs mean it is more cost efficient for home owners to consider renovating or think outside the box and look at dual occupancy type solutions.

“The excessive cost of developing vacant land has stalled the process of newly built home stocks coming onto the market, which is having a devastating impact on the market overall.”

Last year, stamp duty accounted for 37% of total property related taxes in Australia and Mr Ellis believes the reliance of Governments on property taxes to boost their coffers should have lessened over time with the introduction of the GST, but the opposite trend seems to be occurring.

“We were promised a reduction in taxes like stamp duty when the GST was introduced.  Not only has it stayed, nationally, stamp duty has risen, due mainly to increases in NSW and Victoria according to industry figures,” Mr Ellis said.

“And yet, property taxes were cut in WA and NT, and government revenues actually increased.

“What seems to be happening is that stamp duty is putting new homes beyond the reach of many, so fewer homes are selling overall, reducing revenue raised through these taxes to governments,” Mr Ellis said.

“But basic economics is at play here, if the stamp duty was lowered more homes would sell, both home owners and governments would see increased revenue.

“Consideration could also be given to abolishing stamp duty and recouping those lost taxes through a more equitable means where the whole population pays – not just those who have saved for a new home.

“Perhaps we should increase tax paid on luxury items such as tobacco or alcohol, or fast food items.”

According to Mr Ellis, making home ownership too taxing is a short-sighted and quick grab for cash by governments and should be ‘stamped out’ as soon as possible so that everyone can achieve their home ownership goals.

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For further information contact Stewart Bunn, National Communications Manager, First National Real Estate, on 0413 624 317

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Thousands to make ‘Good Move’

May 7, 2012 Leave a comment

Click here to start searching for your rural escape!

The inaugural Regional Victoria Living Expo revealed the strength of interest amongst Melburnians to move to regional centres and smaller townships throughout rural Victoria says official event partner, First National Real Estate.

More than 8000 people streamed through the doors last weekend at the Melbourne Convention & Exhibition Centre where regional centres, business and career opportunities, educational options, housing options and cultural diversity were showcased.

Speaking about the success of the event during parliamentary discussion last week, Victorian Deputy Premier, Peter Ryan said the opportunities in the regional parts of Victoria are absolutely huge.

‘I am thrilled to be able to say that at the expo all 48 of the rural municipalities were represented.

‘A number of mayors and councilors have reported back to us since the expo that they have received inquiries from a vast array of people with different forms of expertise who are now actively pursuing the prospect of being able to move into regional Victoria’ Mr Ryan said.

First National Real Estate confirms it received a significant response at its display booth where thousands of properties throughout regional Victoria were showcased, and representatives from a multitude of its regional offices were on hand to discuss the various attributes of each area.

‘Research released by Peter Ryan indicates 11 per cent of Melbourne’s metropolitan residents, around 450,000 people, are contemplating moving to regional Victoria in the next 3 years. A further 39 per cent are talking about making the move in the near future’ said First National’s communications manager, Stewart Bunn.

‘First National has over 80 offices throughout both metropolitan and regional Victoria so our members are exceptionally well placed to share their knowledge of regional markets, housing values, growth opportunities.

‘We were not surprised that throughout the course of the weekend, over 300 people registered with First National to receive property alerts, or to start the sale of their Melbourne property so they can achieve their escape to the country.’

Since the expo, First National Real Estate has received further enquiry, nationally, from people wanting information about the various incentives and grants on offer from state governments nationwide.

‘What this reveals is the extent to which Australians are changing their views towards regional relocation’ said Mr Bunn.

‘Historically, we’ve been a nation of coast-dwellers but despite the recent softening of house prices in our capitals, the price of metropolitan living continues to trend upwards. As our population grows and the infrastructure of our cities is stretched, more Australians are contemplating the benefits of our regions.

‘As work patterns change and regional employment opportunities improve, the prospect of buying a regional property, reducing the size of your mortgage and enjoying a less stressful lifestyle appears to be very much in the minds of Australians’ said Mr Bunn.

In acknowledgement of this trend, First National Real Estate has introduced ‘Lifestyle’ and ‘Rural Specialists’ amongst its staff throughout regional Australia.

‘These regional members of our network focus on helping people in metropolitan locations make the shift to regional areas by sharing information, demystifying country property and working closely with our city members to facilitate the process’ said Mr Bunn.

The Victorian government has launched a new website, www.goodmove.vic.gov.au which aims to assist people interested in making the move to regional Victoria with all the additional information they’ll need.

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Issued by: First National Real Estate

For further information contact:

Stewart Bunn, National Communications Manager, First National Real Estate, on 0413 624 317

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Commercial outlook positive but dual speed prevails

May 2, 2012 Leave a comment

First National Real Estate was represented at the Financial Review Commercial Conference in Sydney, last month, where industry experts spoke about the generally positive outlook for the commercial sector.

2012 is the third year of recovery since the GFC and, although sentiment is still a little fragile, there is definite growth in demand, especially in Sydney and Melbourne.

However, it’s also said that foreign investment dollars would flood into the Australian commercial property market if the Australian dollar fell significantly.

Despite the current exchange rate, investors from Germany, other parts of Europe, Canada, Singapore and elsewhere in Asia are particularly active and most residential tower sites sold in Melbourne over the past year were bought by Asian developers.

International investors are more confident in the Australian economy than domestic investors; they’re still finding it difficult to source finance and lack confidence in the government.

Our local banks are vulnerable to shocks from Europe because of their dependence on wholesale capital markets. This presents a real risk to the Australian commercial real estate market. Fortunately, China-led commodities demand should continue in the short to medium term and this will shape Australia’s real estate markets.

Headwinds may be coming for the Victorian office market, which is more likely to suffer the effects of weakened traditional office occupying businesses. On the other hand, strengthening demand in resource markets is positively affecting Perth.

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Young Achiever Wins Premier’s Award

April 23, 2012 Leave a comment

CEO Ray Ellis presents Cait Clarke with her Leadership & Innovation awardMedia Release – 23 April 2012

A 25-year-old mother edged out some of the state’s most impressive youths to win the ‘First National Real Estate Leadership and Innovation’ category leading to the ‘Premier’s Young Achiever of The Year’ award in the Southern Cross Young Achiever Awards on Saturday night.

Held at Tasmania’s Wrest Point Casino before an audience of 600, The Southern Cross Young Achiever Awards were hosted by television presenter, Jo Palmer and are designed to acknowledge, encourage and promote the positive achievements of Young Tasmanians aged between 14 and 28 years of age.

Cait Clarke won the award as a result of her contribution to youth and community projects around the state as well as her efforts as a councilor in her hometown of Kentish, north of Hobart, which have been widely reported in local media.

‘Cait is the youngest person elected to a local government role, is chairman of the Kentish Youth Council, works with the social inclusion action group and is a Road Educator Volunteer (REV) mentor’ said Ray Ellis, chief executive of the 450-office strong Australasian real estate group.

First National sponsored the category of the Young Achiever Awards as part of its national programme of corporate giving, which includes support of Red Cross Emergency Services’ work preparing Australian communities for natural disasters, coordination of response, and recovery.

‘Leadership and innovation is what First National Real Estate is all about, as evidenced by our leading Tasmanian offices in Burnie and Hobart who have won industry awards at national level, showing many a larger mainland based estate agency what Tasmanians are capable of.

‘As a network, we support the young people of Australia who look at how to change things for the better.

‘It’s what the great state of Tasmania is crying out for; commitment to strong leadership and the ability to imagine more creative solutions to today’s challenges. People like Cait define not just where Tasmania is heading but who Australia is in the 21st century’ said Mr Ellis.

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Issued by: First National Real Estate

For further information contact:

Stewart Bunn, National Communications Manager, First National Real Estate, on 0413 624 317

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What can buyers expect in terms of capital growth in regional areas?

April 19, 2012 Leave a comment

Generally speaking, regional areas do not offer startling growth rates, however, they often have their own micro economy which may have benefited from a major business relocating from a metro area, or, as a result of tourism. Some areas also benefit from being on the path of major air, road or rail links.

Also, regional property prices don’t generally  fall as fast when market conditions turn. Prices are far less elastic. The latest housing data shows that over the past 12 months, Melbourne home values fell by 5.4 per cent whereas regional areas fell by just 2.5 per cent. Having said that, it’s important to point out to our city cousins that Melbourne’s home values are still up by 45.5 per cent since the start of 2007. Victoria’s performance, by Australian property market standards, has been outstanding in recent years so it’s not surprising we’ve seen some moderation of prices over the past 12 months.

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What sorts of benefits can you expect when moving from a metro area to a regional location?

April 18, 2012 2 Comments

As First National is official partner of the Regional Victoria Living Expo, we’ll be taking a look at some of the reasons people move to regional areas of Australia and the types of benefits they find when they’ve completed their move. With state Governments offering incentives, what’s the buzz about and what sorts of benefits can you expect if you move from a metro area to a regional centre?

We tend to find that people relocating from metro areas are firstly surprised at how much more convenient country living really is and what it offers, not just for families, but also for retirees and working couples or individuals.

People quickly discover that day-to-day activities like trips to the supermarket or doctor are remarkably less frustrating. Even if they do have to travel a few more kilometres than they did in the city, the absence of traffic congestion and snarls often makes the journey so much faster and enjoyable. Plus, parking is usually much easier and waiting times shorter. And… people are, almost always, more welcoming.

The next most common discovery is that, contrary to popular metropolitan opinion, a social life in the country can be every bit as sophisticated as that of life in the big smoke. The reality is that when you get to the country, you’ll soon discover that you’re no pioneer. Plenty of urbanites have already found their way to the regional location of your choice and have already been enjoying the lifestyle benefits for years.

Naturally, property prices are usually much more affordable in regional locations so, whereas you may feel somewhat squeezed by your metro digs, a regionally located home is likely to gain you features you could only have dreamed of in the city.

Obviously, it’s not all a bed of roses but this post is about some of the benefits. We’ll get to some of the pitfalls and things to watch out for in future posts.

So, if you’ve been dreaming about making your big move, don’t just keep watching re-runs of ‘Escape to the Country‘. If you’re in metro Melbourne, get yourself along to the Regional Victoria Living Expo (April 27-29) and, if you’re anywhere else in Australia, post your comments or questions below and First National will do its best to provide the answers.

You can also Tweet your questions to @RealEstateCast

 

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First National at home in regional Victoria

April 16, 2012 1 Comment

Media Release: 16 April 2012

First National Real Estate today announced it is official partner of the 2012 Regional Victoria Living Expo, testimony to its commitment to the communities in which its estate agents work and live.

The 2012 Regional Victoria Living Expo aims to bring regional and rural Victoria to Melbourne to showcase the business, lifestyle and cultural riches country Victoria has to offer.

“Country or rural living offers many lifestyle benefits for people and, increasingly, Melburnians are seeking those out,” First National Real Estate CEO, Mr Ray Ellis said.

“We have 83 offices throughout Victoria, with more than half, 47 in fact, located in regional areas, so it is only fitting that we support these communities by highlighting to city-dwellers their many prospects and opportunities.”

Mr Ellis said that the trend for ‘city folk’ to relocate to, or find business and investment opportunities in the country had been growing, especially in recent years, and the Expo is an ideal opportunity for them to find out all about regional Victoria and what it has to offer.

“It can often be daunting for someone looking to purchase a property in the country to find the right area offering the right mix of business, lifestyle, cultural and recreational living,” Mr Ellis said.

“It can also be nerve-racking to make their decision when they are not sure of the area or where the growth opportunities lie.  This is why an Expo like this has been sorely needed for some time.

“Our members are very excited by the Expo because it provides a real opportunity for them to reinforce their commitment to their communities and gives them a chance to show off what they can do for their customers.”

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For more information concerning the expo, visit http://www.rdv.vic.gov.au/expo

For further information contact Stewart Bunn, National Communications Manager, First National Real Estate, on 0413 624 317

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Toddler drownings, the unfortunate truth

April 13, 2012 Leave a comment

Each year, toddlers continue to drown in backyard pools so safety must always be a First National property manager’s primary concern.

The unfortunate truth is that drowning can happen at any property if appropriate precautions aren’t taken. Royal Life Saving – the national body for water safety in Australia – campaigns hard to get all households to check their pools to ensure safety. They also send the message to local councils that pools need to be checked to ensure compliance with safety standards.

There’s no doubt, with the degree of public distress at each drowning, backyard checks and adherence to the Australian standards for pool safety will become a bigger issue over time.

Where a rental property has a pool, the managing agent holds some responsibility for the safety of the pool and the tenants. Obviously property managers cannot ensure toddler supervision, or that tenants don’t prop the pool gate open, so keeping pool safety top-of-mind is crucial.

However, agents do bear responsibility for ensuring the tenant is informed about pool safety and supervision, and that the pool surroundings and equipment meet minimum standards.

First National encourages Landlords to talk to its Property Managers, to make sure they understand the requirements and their legal responsibilities when they own and investment property with a swimming pool.

We also talk to our tenants, ensuring they understand their responsibilities with their pool. We provide clear documentation concerning what they are expected to do and what the safety requirements are.

Our property managers also regularly turn to pool professionals, such as PoolWerx, to ensure they’re fully aware of changing Australian safety standards. We recommend Poolwerx to all consumers as they can quickly let you know if your pool doesn’t meet the necessary safety criteria.

Taking action to ensure your pool is safe is vital to reducing the risk of a tragedy. By taking action today to ensure your pool is well maintained and safe, you are actively helping to reduce the incidence of drownings.

Visit www.homepoolsafety.com.au for further information and checklists or contact at First National property manager for advice.

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Online scammers, a real threat for renters

April 10, 2012 Leave a comment

Media Release – 10 April 2012

First National Real Estate says the web was a great place to find rental properties or student accommodation, but warns renters to watch out for online scammers.

“Prospective tenants keen to find accommodation in the current tight rental market are increasingly being targeted by dishonest people seeking to take advantage of their circumstances,” First National Real Estate CEO, Mr Ray Ellis, said.

“Rents are escalating, vacancy rates are low and many people who rent often are forced to do so, either because they are still studying or are simply unable to afford to purchase a property outright.

“This makes it especially disconcerting that they would fall prey to greedy scammers who want to feed off others like parasites.”

There are a number of common scams in the market according to First National, but they can easily be avoided.

“Scammers pose as landlords using community websites and say you can’t meet with them to view the property for various reasons. Often they say they are overseas, then demand a payment to secure the keys to inspect a rental property that is always underpriced and seems too good to be true, which usually means it is,” Mr Ellis said.

“They ask that the money be sent via money transfer, even though you have yet to set eyes on the property in person, let alone view or inspect it.

“Once the money is sent out of Australia by wire transfer, it’s gone and so is the property and the scammer.”

Mr Ellis said there were some simple rules to follow to avoid being taken advantage of, the first one being to use the services of a reputable third party such as a real estate agency.

“Going through an agency means you are dealing directly with the landlord’s official representative. If you can’t rent from a real estate agency and must deal with the landlord online, make sure you do not pay any money to gain access to the property for an inspection, and, make certain the landlord intends to comply with your state’s rental legislation. If you’re unsure about anything, contact and agent or the Real Estate Institute of your state’.

According to Mr Ellis, the other simple ways to avoid a rental scam are to:-

  • Never wire money
  • Always meet the landlord or property manager in person before signing any rental documents
  • Even if you are overseas, contact a reputable third party, such as a friend or an agent if you don’t know of anyone in the area, and ask them to view the property on your behalf
  • Never give out bank account information or personal details, especially over the phone or online
  • Do a web search of the landlord’s name to see if there is any other available information on the person.

Mr Ellis advised potential renters to watch out for properties where:

  • the rental amount is unusually low, compared to similar properties in the same area
  • the landlord is unable to show you the property
  • they request payment via wiring, cashier’s check, money order, escrow service, Western Union or MoneyGram,
  • rental applications or reference checks are not requested, and
  • email is from a free email provider such as yahoo, gmail, Hotmail, etc.

“Another dead giveaway is a lot of spelling mistakes in their email communications, the grammar is not good, or, there is an excessive use of capitalisation,” Mr Ellis said.

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For further information contact Stewart Bunn, National Communications Manager, First National Real Estate, on 0413 624 317

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Flat market, ‘strongest since March 2011′

April 2, 2012 1 Comment

With March quarter sales results now quantified, capital city home values have effectively stood still since 31 November 2011. This is the strongest result since March 2011 when values increased by 0.7 per cent, according to RP Data.

Sydney’s housing market has been the ‘primary growth driver’ nationally because home values lifted 1.1 per cent over the quarter.

However, prices fell in many other capital cities, dragged the national average back to zero for the quarter. Adelaide experienced the hardest fall – homes there are now worth 1.5 per cent less than in the final quarter of 2011.

Resources rich states had a bumper quarter with Perth, Darwin and Brisbane’s home prices all increasing in value – 1.4%, 1.1% and 0.8% respectively.

Down 4.4% past 12 months

What this all adds up to is continuing softness in the national marketplace and a fall in overall capital city values of 4.4 per cent in the past 12 months.

So, how did each of our capital cities perform in the past 12 months?

  • Hobart prices fell 7.3%
  • Brisbane prices fell 6.1%
  • Adelaide prices fell 5.7%
  • Melbourne prices fell 5.4% (But they’re still up 45.5% since 2007)
  • Canberra prices fell 0.3%
  • Sydney prices fell 3.2%

And what about the regions?

For the rest of each state, dwelling values fell by an average of 2.5 per cent.

So, Canberra, where times are never really bad and people are always confident about their employment status, turned out to be the star performer with values down just 0.3 per cent over the year.

Affordability up, FHBs coming back

According to Ben Skilbeck, managing director of Rismark International, a number of factors point toward an improvement in market conditions in recent months.

As a result of these falls in values, the price of buying a home is now below the decade average. Also, more people are preparing to buy a property.

The ABS reports that home loan approvals continue to lift as well. They’re now at their highest levels since November 2009, and, the value of all approved loans is higher.

As a share of all approved loans, first homebuyers are back at levels not seen in two years.

Investors reap rewards

Although capital city rental housing yields have only improved modestly from 3.6 per cent to 4.1 per cent, apartment yields are ahead – increasing from 4.4 to 4.8 per cent over the same period.

However, hold onto your seat if you’ve invested in Darwin, Perth or Brisbane. These three cities have bounced back from recent lows, improving by 22, 21 and 18 per cent respectively.

Sales volumes fall

The number of properties for sale continues to fall.

Having peaked late last year, the number of days it takes to sell a home should now begin to fall and, as buyers have fewer properties to choose from, negotiations will more often lead to successful outcomes.

Arrears down

Australians are paying down mortgages at the fastest rates since the peak of the GFC.

The Reserve Bank reports mortgage arrears have fallen from 0.7 per cent to 0.6 per cent, comparably low by international standards.

Nearly 50 per cent of owner-occupiers are ahead of schedule with their repayments. In the December quarter, total excess payments were running at twice the minimum – up 80 per cent from last year’s March quarter.

Much of these payments have come from salary bonuses or sale of shares. Households have typically injecting an extra 3 per cent of disposable income into home loans since the GFC.

For First National’s complete 2012 market outlook, see 2012 Property Market Outlook.

SOURCES:

RP Data-Rismark March Hedonic Daily Home Value Index

Sydney Morning Herald

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