Australian Property Alerts Surge

February 2, 2012 1 Comment

Example buyer registration eCard

Technology has been firmly embedded in real estate marketing for many years but First National Real Estate is leading the charge when it comes to regular customer communication about homes suited to their needs.

Buyer alerts issued from First National’s Utopia cross matching system surged by 50% in 2011 with some 375,000 customers receiving SMS alerts, telling them that a property matching their wish list had just been put on the market. More than 11.8 million email alerts and property market updates were also issued.

The system is used equally by buyers and tenants and customers love the regular, instant updates.

‘Our customers tell us we are the only real estate brand that gets back to them when they take the time to tell us about their property hopes and dreams;’ says National Communications Manager, Stewart Bunn.

Customers register their details by visiting First National member websites and following the links for priority alerts.

‘It’s simple to update search criteria, as your wish list changes, and also to choose to receive market updates or not’ says Mr Bunn.

‘Plus, once you’ve bought or rented a new home, it’s easy to remove yourself from our database so we don’t bother you with updates you no longer need. Our customers just love the convenience and our members have reduced the number of days it takes to sell a home or rent a vacant investment property.’

Find out more about First National’s Utopia system by talking to a local First National member today.

 

 

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Surge In Open Home Interest

January 30, 2012 Leave a comment

SOURCE: Namoi Valley Independent

Surge in Buyers at Gunnedah Open Homes

First National Real Estate Gunnedah has reported a renewed interest in property with an influx of potential buyers to open homes displays last weekend.

“What a positive way to start the New Year” said First National principal Mike Brady.

“Brand new, great valued, fresh listings have attracted significantly improved level of genuine interest with buyers, who came out in force last weekend.” Mike Brady said the sales team had reported as many as 23 groups going through the open homes.

 

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The Lucky Country?

January 18, 2012 Leave a comment

An example of Australia's vast, undeveloped interior...

Is it just luck that only 4.9% of Australian homes are worth less than their purchase price?

First National Real Estate would argue that luck has nothing to do with it.

The latest figures from RP Data emphasise the resilience of the Australian housing market, despite the ongoing concerns of international market commentators.

According to the organisation, strong growth in home values over the recent growth cycle is why most regions have seen significant levels of equity accumulation. In fact, over the five years to September 2011, capital city home values increased by around 28%.

Although there have been recent declines, as outlined in First National’s 2012 Property Market Outlook, approximately 43% of homes are worth more than twice their original purchase price.

Capital city home values are down 3.3% from their October 2010 peak to September 2011, but taking a longer term view, that’s hardly something for Australians to fret about, especially given the dire circumstances faced by our European and US home owning colleagues who are facing losses in equity well exceeding 40%.

Australia’s property market circumstances are almost entirely unique and largely misunderstood by foreign analysts.

Firstly, the great majority of Australians dwell on the coastline, leaving our vast interior mostly ‘undeveloped’. This makes demand for available land and housing on the coastline unusually strong. This combines with a population which grows at more than 300,000 per year, while we continue to build less than 150,000 homes per year – the opposite of what was occurring in Europe and the USA prior to the GFC. In the USA, a building boom created an oversupply, financed largely through non-recourse lending.

What’s non-recourse lending?

It’s a type of finance you couldn’t dream of acquiring in Australia. Here, before a bank will lend you the necessary finances to buy a property, you must prove you have the ability to pay it back. That starts with at least having a job, unlike some of the lending practices that were prevalent in the States, prior to the GFC, that didn’t require such fundamentals of a borrower. Non-recourse lending also allows the homeowner to walk away if their home becomes worth less than they paid for it, and it then becomes the bank’s problem. Walk away in Australia and the bank will reposess your home, sell it for the best price they can, then sue you for any shortfall. So, in other words, there’s no walking or running away and the investment remains your problem. This provides a strong incentive to ‘hold on’ in times when the market isn’t rising.

The flood of property for sale in the USA is largely the result of homeowners simply handing back the keys and walking off. The cascading oversupply combines with almost zero demand, apart from the occasional foreign bargain hunter looking to take advantage, to further suppress house prices.

So, with an entirely different approach to lending, record immigration, almost zero unemployment, an under-supplied housing market, and a culture that embraces home ownership rather than renting, there’s scant chance of any form of major correction in the Australian housing market despite its current, cyclical softness.

 

 

 

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Head to Goulburn for exceptional investment opportunities

January 13, 2012 Leave a comment

Goulburn railway station opened 1869

Image via Wikipedia

Source: Goulburn Post, 11 January 2012

Last year was the year of accomplishment in Goulburn, and the trickle down effects on the local economy are starting to be felt.

With the dams full, the Highland Source Pipeline complete, and big retail chains like Target, Bunnings and Big W all moving in, real estate investors from across the country are looking this way and snapping up bargains.

New data has shown the local real estate sales market is booming, with the median house price up 20.5 per cent over the last three years to $265,000, and up 8pc in the last 12 months.

Demand from out-of-town investors and local buyers has been generating strong sales in the region, and is slowly driving up the median price, local real estate agents have said.

First National Real Estate one of Goulburn’s biggest residential sellers – stayed open between the Christmas Eve and New Year period to keep up with sales demand from investors and owner/occupiers alike.

First National principal Barry McEntee said there was demand for properties “right across the board,” from one-bedroom units up to three and four bedroom houses and small acreages.

December was the busiest month of the year at First National for sales, the first time this holiday month has topped the list in seven years of trading.

Mr McEntee puts part of the demand down to the fact that stamp duty concession for first home buyers expired on December 31, and the subsequent rush to snap up properties before the expiry date.

“We actually opened between Christmas and New Year, which is not something we’ve done in the past, but we felt the demand was there,” Mr McEntee said.

Barry McEntee

Mr McEntee felt the amount of Canberra buyers was starting to drop off.

“There’s been less Canberra buyers late last year in my opinion.

The Canberra market has softened a bit of late, so people who were forced to consider Goulburn in the past are now looking within Canberra.” “In 2010, about 25% of buyers were from Canberra, but now it’s more like 10-15%,” he said.

As for what’s driving the strong sales market, it all came down to affordability, Mr McEntee said.

“The big thing about Goulburn is that it’s so affordable. We were still selling houses at the end of last year from $200,000 right up to the $700,000 mark.”

The Goulburn property market has also been singled out by respected real estate analyst and owner of www.hotspotting.com.au Terry Ryder, who included Goulburn in his most recent national top 10 cheapies with prospects’ report. The only other NSW locations to make the top 10 were Dubbo, Broken Hill and the region surrounding Gunnedah.

This all bodes well for another strong year in 2012, Mr McEntee said.

“It’s been a very strong 2011 and there’s no indication that will slow down in 2012.

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Indicators Strong For Property Market Recovery in 2012

December 28, 2011 6 Comments

Media release – 28 December 2011

Indications that a property market recovery is likely in 2012 are strong, although it will be a slow and gradual process, with first home buyers beginning to stir, but not fully confident to part with their hard earned savings, and investors having already capitalised on prime market conditions.

According to First National CEO, Ray Ellis, this is the picture based on expectations of interest rates, market movements and local area member knowledge, underpinned by improving consumer sentiment as detailed in First National Real Estate’s 2012 Property Market Outlook released this week.

“Home prices bottoming out, falling interest rates and improving affordability are all working together and may prove the stimulus the market has been waiting for to get it moving again,” Mr Ellis said.

“In turn, increased interest and activity in the property market will see it strengthen further especially with investors who have already shown signs of gaining confidence at the end of 2011.”

Based on the survey findings highlighted in the Outlook, NSW should see an improving market; Victoria is showing signs of recovery, but still has a way to go, Queensland is demonstrating it has lots of potential and is finally on its way back from the devastating floods and cyclones it experienced in 2011; WA and NT will continue to be strong performers especially in resource rich areas; Tasmania is marking time but will pick up as it progresses through 2012; and South Australia will continue to be a solid performer.

All First National state chairpersons agreed buyer confidence should improve in the next 6 months, as a result of lower interest rates, improving local market conditions and a more stable global economy.

For some states, worsening global economic conditions and possible job losses have resulted in an increase in mortgage defaults and this trend may continue until more certainty and stability returns to the US, European and Chinese economies.

According to the state chairpersons, the key challenges for the Australian property market in 2012 will be focused on sustaining a strengthening consumer confidence, which are at the mercy of ongoing stability in global economies and job security; government policy and legislation (especially the introduction for the carbon tax and reduced government assistance for first home buyers); and interest rate movements.

While demand is still expected to remain relatively soft into 2012, a recent sharp rise in Westpac’s time to buy a dwelling index may be the cue for a housing upturn.

“This will, however, be dependent on ongoing interest rate cuts, job security and resulting consumer sentiment,” Mr Ellis said.

Interest rates are expected to drop further with rate cuts of up to 0.5 per cent, although some say it could be as much as 75 to 100 basis points.

“Any future interest rate cuts are expected to stimulate buyer activity as confidence improves and refinancing options broaden, ultimately strengthening the property market,” Mr Ellis said.

“With the Australian housing market now affected by daily international updates and commentary, confidence can change at a moment’s notice.”

Residential markets are expected to remain initially subdued in 2012 as consumers seek to pay off debts.  However, falling house prices and interest rates should stimulate some activity, particularly among bargain hunters who have been squirreling away savings and are now cashed up.

“Our members believe the strongest growth in their regions will come primarily from upgraders, followed by investors, then retirees and lastly from first home buyers,” Mr Ellis said.

Australia’s national office market is one of the best performing commercial property subsectors –with capital value growth expectations of 2.8 per cent over the next 12 months.  It currently outperforms the residential property market and this trend is expected to continue for some time to come.

“Into 2012, the commercial property market will continue to be a mixed bag, very reliant on the area and local market conditions, but the majority of members said they expected the market to stabilise,” Mr Ellis said.

According to First National Commercial members, solar power remains the most popular energy efficient feature in a commercial property, making it more rentable.

Water recycling, the ability to open windows and motion sensor lights are also sought after energy efficient features.

“Around 75 per cent of respondents said they expected sales of commercial properties to increase in 2012, as a result of their region’s attractiveness, trading up or new jobs and increased businesses in the region,” Mr Ellis said.

Growth in commercial property markets is expected to come mainly from the heavy and light industrial sector, followed by the office market and medical industry.

Regional Australia is experiencing some of the most difficult market conditions seen.  Falling prices, non-committal buyers, unrealistic vendors and consistently negative market reporting throughout the majority of 2011 have affected confidence.

However, improving housing affordability and interest rate cuts should inject some much-needed confidence into the regional housing market.

“Over 2011, the regional property markets have been influenced by economic factors such as the strength of the Australian dollar value, commodity prices, demand for Australian products and nervousness around job security,” Mr Ellis said.

“The regional market has stagnated to some degree but this is expected to steady into 2012 as confidence slowly starts to build, eventually returning as the year progresses.”

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Issued by: First National Real Estate.  For further information or to receive a copy of the 2011 Property Market Outlook, contact Stewart Bunn, National Communications Manager, First National Real Estate, on 02 9320 2535

 

To read the complete document, click here:

http://firstnationalnews.com/2012/01/09/2012-property-market-outlook/

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Safe Decisions Can Make The Most of Your Holiday

December 16, 2011 2 Comments

Stay Safe This Holiday Season

Media Release – 16 December 2011

For people heading off on holidays, First National Real Estate’s National Communications Manager, Mr Stewart Bunn, says to be careful to make sure homes are left safe and secure and to think carefully too, if considering a holiday home purchase.

“Holidays are great times for criminals to get to work if they believe a home is empty.  It’s also a time when vacationers ponder their existence as they sit back and enjoy the relaxing lifestyle on offer in popular holiday spots,” Mr Bunn said.

“No one likes returning from their holiday to find dead plants, over stuffed mail boxes, or even worse, stolen or broken treasures from a burglary.

“But they do like to think about ways of making the holiday euphoria last longer than the few weeks away.”

Mr Bunn said with some careful planning and forward thinking, home owners can find they peace of mind they seek whether they are leaving for vacation or looking for ways to extend it.

“Anyone considering heading off for a well-deserved rest should start now to put some simple, cost effective measures in place for while they are away,” Mr Bunn said.

“Unattended homes and cars act as green lights for burglars, which is why it’s important to take as many precautions as you can to ensure you don’t return from your holiday to find you’re a victim of crime.

“Turning on security lights or alarm systems is a great place to start, but the best thing you can do is ask the assistance of a trusted friend, neighbour or family member to collect the mail each day, put out bins at collection times, park a car in the driveway or adjust curtains and blinds.

“This helps give an impression of someone still being at home and deters unfriendly and unwelcome visitors.”

According to Mr Bunn, a common trend for people on vacation is to fall in love with the holiday spot and look at purchasing in the area to either move into, or retire to, at some later stage in their lives.

“It is easy to get carried away with the relaxing lifestyle of a holiday home and many people want to either relive this time away, or adopt it as a new way of life,” Mr Bunn said.

“But, purchasing a holiday home should only be done after careful planning and consideration of all the factors, beyond the pleasant experience.

“A holiday home purchase comes with some financial considerations such as use or purpose of the home when the owner is not there. These matters have potential long-term impacts and tax implications.”

Holiday homes can attract capital gains tax on the difference between the purchase price and the later sale price, should the decision to sell ever arise.

“However, many holiday home owners neglect to expand their purchase cost base by adding the expenses involved with holding the property, including council rates and water bills, major extensions or repairs, strata levies, garden maintenance and interest on mortgage repayments,” Mr Bunn said.

“This can reduce the taxable component of the sale by many thousands of dollars, which is why it is important to ensure you keep all receipts for any expenditure on the house, including legal fees, stamp duty and any other costs relating to the purchase.”

Mr Bunn advises when looking to purchase a holiday home, to approach it in the same way you would any property investment and make sure it is in the right location.

“A holiday home may also double as an investment property, given it is vacant for most of the year Mr Bunn said.

“So it is important to ensure it is close to transport or employment opportunities, especially if it is in regional areas, otherwise it will be less desirable as an accommodation option for renters.”

There is a lot more holiday property advice says Mr Bunn and your local First National team can offer assistance.

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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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How many buyers are waiting for your property?

December 8, 2011 Leave a comment

First National Real Estate is the only real estate brand that lets you see how many active buyers are waiting for a home matching the description of your property.

You see, we’ve harnessed the best and the brightest to develop an Aussie-grown system that’s easy to use via First National member websites. First National Tweed Sutherland in Bendigo shows how you use the system in this TV advertisement.

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Should you rent or should you buy?

December 6, 2011 5 Comments

Is now the right time to rent or buy?

Media Release – 6 December 2011

First National Real Estate’s National Communications Manager, Mr Stewart Bunn, says current market conditions, coupled with increasing housing affordability, is causing a rental dilemma. Many renters are questioning if now is the time to stretch their budgets and commit to buying their own home.

“With lowering interest rates and falling house prices, home buying is proving almost too attractive for many renters, but serious consideration needs to be given to the person’s individual and financial situation to ensure they make the right decision,” Mr Bunn said.

“It may appear, on the surface, that purchasing a home may make more economic sense for those doing it tough, where the monthly mortgage is not too far off what they are currently paying for rent, but a closer look may reveal that incidental costs and a small change in circumstances could lead to an untenable situation.”

According to Mr Bunn, the advantages of each housing option should be weighed against the drawbacks to find the one that best suits their specific needs and situation.

“Renting offers great flexibility with the option to relocate from home to home and area to area, as the need arises, which is not the case with buying a property,” Mr Bunn said.

“If finances get tight, or the home situation changes for any reason, it is far harder to just pick up and go if you own your own home.

“Renting is also often a cheaper alternative to buying, especially in the inner city areas particularly favoured by Gen Y-ers who want that urban lifestyle close to where they work.”

While vacancy rates continue to be under pressure, the fact remains that renting may still be more affordable, with monthly rental payments usually less than a mortgage repayment for a comparable property and without the other incidental costs which can be incurred as a homeowner.

“One of the greatest financial and stress-free advantages of renting is that property maintenance costs, repairs, rates and insurance bills are the responsibility of the landlord, not the renter,” Mr Bunn said.

Despite these many advantages of renting a property, there are some disadvantages which will make buying preferable, particularly in light of escalating monthly rentals.  The most obvious one being when renting, it is not possible to put your personal stamp on a property to suit your individual style and design preferences.

“There is also the inconvenience, and in some cases pressure, of knowing your landlord has the right to inspect their property whenever they wish, with sufficient notice, potentially disturbing the renter’s privacy,” Mr Bunn said.

“But the biggest disadvantage of renting is that the property can never be paid off by the tenant, making the money lost for good, without any chance of recovering when the property is sold.”

Ultimately, this is the biggest difference and that is where advice should be sought to determine the short and long-term impact on personal net wealth and cash flow over a lifetime between renting and buying.

“Usually, the decision will be to purchase a home, but it will come down to making sure people buy well and buy right, at the best time for their own individual circumstances,” Mr Bunn said.

“This is where we at First National can really help.  We offer advice and assistance with the necessary knowledge, experience and skills to understand the market, its trends and its weaknesses and opportunities,” Mr Bunn said.

“Despite some government assistance packages for both renters and buyers being abolished or having become obsolete, such as the First Home Owners’ Grant Boost and the National Affordability Rental Assistance Scheme, it is important to remember there are still incentives for potential home buyers and renters to take advantage of, including state government financial assistance packages.

“So home buyers and renters need to learn to make the most of the services we have available, to ensure they make the most of their finances over the long term.  There are many creative ways in which to save for that first purchase whilst renting and we can help explain all the options available.”

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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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First National Commercial sets record for Darwin

December 2, 2011 Leave a comment

Jacana House, Darwin - $58.75 million

MEDIA RELEASE: 2 December 2011

First National Commercial O’Donoghues has set a new record for Darwin CBD commercial sales with the sale of Jacana House for $58,750,000.

The nine-story 39 Wood Street building was built and owned by successful local development company, Gwello Developments. Uniquely, it has a 5 Green Stars rating for design, 5.5 stars for Nabers energy efficiency and is the leading green office space in the Northern Territory. A raft of Federal Government departments as well as listed companies currently calls the building home.

First National Commercial O’Donoghues says that Jacana House was not for sale but, due to strong investment demand, the agency approached the owner with a solid offer.

‘Our residential and commercial business maintains close contact with buyers nationally and we’re not short of investors who are very interested in Darwin opportunities’ says First National Commercial O’Donoghues principal, Jeremy O’Donoghue.

A transport logistics investor, formerly from Darwin, seized the opportunity to secure the ‘A’ grade and environmentally friendly office building through First National Commercial O’Donoghues because no other suitable commercial properties were listed for sale.

‘Jacana House is the only commercial high-rise in Darwin with such a strong energy efficiency rating and it will soon have the ‘As Built Green Star’ rating as well,’ says Mr O’Donoghue.

‘It is an extremely energy efficient building. An enormous amount of thought and effort has gone into the design and construction, which incorporates the requirements of the Green Building Council of Australia.

‘The buyer was seeking a solid, long-term investment with blue chip tenants so we were very comfortable recommending Jacana House as a potential target’.

The Darwin property market is expected to provide exceptional returns for investors for the next few years and commercial property investment may well be leading the pack. Major new projects are coming on line in early 2012.

‘Consumer confidence has hit a 12 month high and is expected to strengthen further as a result of the recent drop in interest rates, the US Presidential visit and the range of projects about to commence. This sale represents clear confirmation of the considerable confidence investors have in Darwin’s future projects.’ says Mr O’Donoghue.

Issued by: First National Commercial O’Donoghues

For further information:

Principal, Jeremy O’Donoghue on (08) 8942 8942 or 0407 080 067

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Still the lucky country

December 1, 2011 1 Comment

Chief Executive, Ray Ellis

As the property market moves toward its summer hiatus, First National would like to wish you happy and safe holidays as well as a Merry Christmas.

With the housing market correction having slowed in September and interest rates fallen, Australian confidence has risen to a six-month high.

Capital city dwelling values have fallen just 0.2%, the smallest decline since February, and economists are tipping rates could fall further yet. So what’s next for 2012?

We’re working on our 2012 Property Market Outlook right now, so ask your First National member for a copy in January and we’ll give you the views of a network of experts comprising 450 offices Australia-wide.

Although 2011 was a year in which Australians felt considerable gloom and uncertainty about the future, we really do have much to be grateful for.

While interest rate movements, property price statistics and auction clearance rates are reported in excruciating detail, then analysed in depth by the 24 hour media cycle, home owners have much to be satisfied with when it comes to their property holdings and their performance.

Credit Suisse’s Global Wealth Report recently ranked Australians as the wealthiest people in the world. The reason? Our average wealth now rests at $403,000 and our median at $225,000.

The median is indicative of how the middle class is placed, and, as we have comparatively high levels of home ownership on the world stage, our wealth distribution is relatively equitable. In the United States, by comparison, median wealth is $53,000. Coincidentally, the median wealth of an Australian rental household is pretty close to that of the US – $55,265.

Australians who own their home outright are worth an average $737,394 and there have never been more government incentives and bonuses to help you get your foot on the property ownership ladder.

So, it’s not hard to see why the ‘Great Australian Dream’ still includes buying and work towards ownership of your home.

Plus, with historically low interest rates and enviably low unemployment rates, we really are the land of opportunity. It puts all our worry about small movements in interest rates and slight reductions in house prices in perspective doesn’t it?

Swim between the flags!

 

Ray Ellis

Chief Executive

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