What’s the best way to handle utility connections when you move?

February 23, 2012 Leave a Comment

Did you know that the average time it takes to disconnect the average home’s utilities and reconnect them at your new address is nearly six hours?

Who has that sort of spare time when they’re in the middle of moving?

It would be great if it were only the water, electricity and gas you had to contend with. However, these days there’s usually also the phone, pay TV and Internet that all need to be disconnected and then re-connected. That means dealing with tedious call centres, waiting in time-consuming queues, and usually having to put up with providers trying to upsell you to different products from the one’s you’re using.

First National agents recognise that you need help and we have the ideal solution. One phone call to Direct Connect will see all your utilities transferred to your new address expertly and efficiently.

Direct Connect will even let you know if there’s a better deal for you if you want them to. They keep you informed and you can spend your valuable time looking after the unpacking, the kids and getting set up.

Just ask your First National property manager for the details.

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Men are from the garage; Women the kitchen…

February 17, 2012 Leave a Comment

Women believe they put more importance on the kitchen when hunting for a home compared to men, First National Real Estate’s survey of women and property shows.

As well, women feel the bathroom and the size and number of bedrooms are a higher priority for them than men when buying a home. Women are also more likely to rate proximity to friends and family as extremely or very important. But expect men to be checking whether a home has a garage or a workshop – more men than women say these would be a priority when buying a home:

The survey, of 1,207 Australians (603 male and 604 female), looked at key factors influencing home purchase decisions as well as differences between men and women. Respondents were asked to rate the importance of a range of features that would influence their selection of a home. Overall:

  • 73 per cent said having a garage would be extremely or very important;
  • 71 per cent said the quality of the kitchen; the home having water saving systems or equipment, such as a grey water recycling system or rain water tank, was considered extremely or very important by 67 per cent of respondents;
  • 65 per cent said the quality of the bathroom; and
  • 56 per cent said a low maintenance garden or courtyard.
  • At the bottom of the list were: the home having good potential to improve or renovate (38 per cent), proximity to friends and family (36 per cent) and the home having a security alarm system (31 per cent).

But when couples were asked what things they believe they would prioritise more than their partner, clear gender differences emerged.

  • Far more women (28 per cent) placed a greater emphasis on the kitchen than men (three per cent);
  • Women also said they would place a greater emphasis on the bathroom – 17 per cent compared to two per cent of men);
  • 10 per cent of men said the garage or the size of the garage would be a priority, compared to four per cent of women and the same number nominated a shed or a workshop, compared to only one per cent of women;
  • 43 per cent of women compared to only 28 per cent of men said proximity to friends and family is an extremely or very important factor and 46 per cent said proximity to where people in the household work was extremely or very important, compared to 36 per cent of men;
  • Women seem more environmentally aware than men – 72 per cent said water saving systems would be an important feature, compared to 63 per cent of men.

And despite becoming an important buying power in the property market, some women say they are still discriminated against. Thirty four per cent of female home owners said they had experienced gender discrimination from tradespeople around the home and 25 per cent said they had experienced it from real estate agents. Only 11 per cent said they had been discriminated against by their mortgage lender.

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Should you invest in Australian property?

February 14, 2012 Leave a Comment

Consider these statistics...

The decision to rent or buy is always a big one. The traditional strategy of buying a first house and then moving up to the ideal home as your income and equity grows is fast being replaced by the initial purchase of an investment property. However, the alternative of renting indefinitely while you save to buy is becoming equally difficult because of escalating rents and an historic squeeze on vacancies.

If you’ve wondered whether you’re ahead by renting or better off buying, consider these statistics.

  • The median net wealth of a renting household is $55,265 whereas homeowners have nine times as much – $487,183
  • Renters comprise 28.7 per cent of the nation’s households but have only 6.3 per cent of the nation’s wealth
  • Australians who own their home are worth 13 times more than renters – $734,394

So, despite arguments to the contrary that emerge from time to time, real estate ownership has made the average Australian second only to Swiss residents as the wealthiest in the world.

So how do you take the step from renting to buying your first home?

  1. Approach the market with a sound five-year plan. Get into the market, pay down the mortgage, and establish equity in the home as a basis for long-term financial security and flexibility.
  2. Budget for extras. As well as a solid deposit, have money set aside to cover insurance, routine maintenance costs and to meet mortgage payments for several months if something goes wrong.
  3. Don’t worry about the market. Your focus should be on building a deposit while looking for the property that matches your lifestyle and budget.
  4. Compromise. Your perfect home is likely to be out of reach for now, so focus on hunting down a property that has solid real estate attributes – good location, off-street parking, security, quality finishes and proximity to restaurants and transport. Choose something that will suit your needs for the next five years or so while you build up equity and prepare for the next phase of home ownership.

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Tenant’s insurance, is it important?

February 8, 2012 Leave a Comment

Talk to First National about contents insurance

You might not be aware but if you’re planning on leasing a property and sharing it with friends, don’t expect your insurance company to be all that thrilled with the prospect of covering your prized collection of DVDs. You see, although two’s company, three’s a crowd from an insurer’s perspective.

Evidently the actuaries who spend their lives crunching numbers and managing risk have worked out that while more may be merrier, the security of your personal belongings is statistically reduced.

So, what to do when the insurance company says no? Talk to your First National property manager of course! He or she will put you in contact with First National’s insurance alliance partner who has a policy that’s perfectly designed for you and your buddies. Your contents can be covered for a down to earth, reasonable premium that won’t break the bank.

That’s what we’re about at First National. We put you first.

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Renting With Pets, Think Again…

February 3, 2012 Leave a Comment

You own an investment property and you’re wondering whether you should consider applications from tenants with pets.

Conventional wisdom and maybe even your property manager’s advice suggests you might want to think twice about that. Obviously there’s the potential for damaged carpet as a result of small accidents, marked walls or garden damage. But is that really any different from the normal wear and tear of renting to people without pets?

New research suggests perhaps not.

Responsible pet owners typically work hard to ensure their pets don’t annoy neighbours and don’t do damage to their rental property. They know that one black mark against their name means it may be much more difficult to rent in future, or worse, they may have to surrender their pet to be euthanised, if they can’t find a suitable property.

The research also shows that tenants with pets pay and average $25 to $35 dollars more per week for their property.

Naturally, as with all rental applicants, good pet references are essential. Your property manager may also ask that your tenants sign an annexure to their lease, clearly spelling out expectations and requirements such as having carpets steam cleaned when the property is vacated.

As a landlord, the choice remains yours but allowing your property manager to consider applications from prospective tenants with good references expands your pool of potential customers. Anecdotal evidence also suggests tenants with pets rent for longer periods, reducing the wear and tear that occurs when people move in and out, and, lifting your annual net return.

First National Real Estate offers a ‘Pet Friendly Rental Search’ on its national and member websites. Prospective tenants simply tick the ‘Pet Friendly’ box when searching for property to instantly separate properties that are an option for them.

Even though vacancy rates are at very low levels and many landlords experience no difficulty finding good tenants for their properties, renting to a responsible tenant with a pet may see your investment leased for a longer period, at a higher rate, and that’s well worth thinking twice about!

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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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Years of Service Earns Australia Day Honours for Network Founding Member

January 30, 2012 1 Comment

Norm Abbey, A First National Real Estate founding member

A founding member of the First National Real Estate network, Mr Norm Abbey was awarded a Medal of the Order of Australia (OAM) at the 2012 Australia Day honours. Norm Abbey received his citation for service to people with disabilities, particularly through Shannon Park Foundation.

As the founding and inaugural president of the parents and friends committee, Norm Abbey was instrumental in buying land to build Shannon Park Centre.

He was also an active fundraising auxiliary member, twice heading campaigns for $150,000.

Mr Abbey became involved after son Peter was diagnosed with cerebral palsy at 18 months.

“I always felt I had to put something back into the community. We received a lot of support with Peter and wanted to repay that.”

First National Real Estate N.H Abbey was established by Norm Abbey in early 1973. The office has provided a first class and professional Real Estate service to the townships of Portarlington, Indented Head, St Leonards & the Bellarine Peninsula over this period.

Norm retired in late 2004 and handed the business over to his son Craig who has maintained the integrity and honest professionalism that N.H. Abbey First National Real Estate has become known for along with brother Dennis Abbey Leesa Scorgie (Norm’s daughter) and Tracey Abbey (Craig’s wife) the Portarlington office is a family affair.

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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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Queensland Pimp Your Home Renovation Winners Announced

January 11, 2012 Leave a Comment

Our winners are off to Bunnings...

Media Release 11 January 2012

First National Real Estate office name today announced the final four winners of First National’s Queensland ‘Pimp Your Property Home Renovation Giveaway’ competition.

Stephen Tillston of Nerang, Kira Hammond of Nundah and Vicki Nunn of Gladstone are each winners of $500 Bunnings Hardware voucher packs. Nathan Griffiths of Currumbin Waters won the major prize of $10,000 in Bunnings Hardware vouchers.

‘The competition, which ran for the latter half of 2011, has helped 13 Queensland families to make improvements around their homes or recover from damage caused by last summer’s weather events’ said Ray Ellis, Chief Executive of First National Real Estate.

‘Our member offices throughout Queensland were delighted to offer the opportunity for their local communities to win a share of the prize pool and remind our customers that First National will be offering an even more exciting competition for them to enter, later this year’.

 

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