Prime Minister watches First National with interest

August 9, 2011 Leave a comment

Julia Gillard Picture

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Prime real estate Prime Minister Julia Gillard may be watching with interest what becomes of a campaign to sell an Altona home abutting her back fence and on a similar size block.

The property, at 4 Delmont Avenue, includes three bedrooms, two living areas, an established garden and double garage.

Like Gillard’s house in Medford Street, 4 Delmont Avenue is on a standard-sized Melbourne suburban block of 614 square metres. It is up for private sale, with price expectations of between $550,000 and $600,000.

Ms Gillard paid $140,000 for her home in 1998, the year she was elected to the House of Representatives.

Scott Murdoch, from First National Real Estate Barwon McEwan Tribe in Altona, is marketing the Delmont Avenue home.

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Volunteer Agent Register Launched To Assist With Floods Recovery

January 13, 2011 Leave a comment

Media Release – 13 January 2011

2.45pm

First National Real Estate has launched an internal National Volunteers Register for its 400 plus office network to assist its flood affected members to deal with the anticipated deluge of assistance sought by tenants living in rental properties.

‘As the Queensland floodwaters begin to recede, real estate agents will be swamped with calls for assistance from thousands of tenants living in rental properties damaged or destroyed by rising water,’ First National Chief Executive Ray Ellis said.

‘As well as responding to the needs of our customers, we will also be grappling with the dislocation caused to own businesses, either as a direct result of flood damage to computers and records, or as a result of the same sorts of staffing issues that will affect many Queensland businesses in the days and weeks to come.’

The network also launched a national Australian Floods Appeal last week, using its First National Foundation which supports Red Cross Emergency Services.

The purpose of the National Volunteers Register is to identify which other members within First National’s network are able to contribute resources in support of recovery efforts in the hardest hit offices such as Dalby, Toowoomba, Toowong, Oxley, Ipswich, Gracemere, and many Brisbane suburban offices.

‘We anticipate that once our tenants are able to return to their homes, our property managers in flood affected regions will come under extraordinary pressure’ Ray Ellis said.

‘Some of our property managers will face astronomical challenges finding trades people to help with the enormous clean up and repair tasks. There may also be additional challenges posed by issues of electrical safety, structural stability, health threats or problems such as insurance companies who may refuse to pay claims as a result of rising water damage’.

Using the register, First National will be able to direct the expertise of property managers and estate agents in unaffected offices to where it will be of greatest help to customers in expediting their recovery.

Given that some First National offices are currently dealing with power outages, equipment losses, or staff are simply cut off from their place of work, First National Real Estate has provided a 24-hour emergency hotline for tenants in flood damaged properties who cannot reach their local First National member.

Tenants seeking help should contact Network Property Manager, Dahlene Qama, on 1800 032 332.

‘We’re doing everything we can think of to support our agents in the process of supporting our customers’ said Ray Ellis.

‘The camaraderie shown by the members and staff of our network has been exceptional throughout this crisis. Our flood affected agents have received calls of support from our real estate agents nationally and our call for donations to the First National Foundation’s Australian Floods Appeal is rapidly raising funds.

‘While there are multiple organisations now fund raising, First National Foundation has pledged to give all the funds it raises in this appeal to Red Cross Emergency Services so the money gets straight to where it is most effective, the response and recovery efforts’ Ray Ellis said.

The First National Foundation Australian Floods Appeal has raised over $18,000 in the past 24 hours but the network is calling for more donations in support of Red Cross Emergency Services.

Donations can be made to First National Foundation’s Australian Floods Appeal by visiting www.firstnationalrealestate.com.au

- copy ends -

Issued by: First National Real Estate

For further information contact National Communications Manager, Stewart Bunn from First National Real Estate on 1800 032 332 or 0413 624 317

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What next for development policy?

August 16, 2010 1 Comment

PM Julia Gillard and Opposition Leader Tony Abbott

This Saturday Australians go to the polls to elect a new Federal Government. However, whereas the pre-election debate in 2007 included policies to increase housing supply and affordability, there has been scant focus on housing in 2010 by either Gillard or Abbott, something quite remarkable considering community concern about the cost of living.

While the Kevin 07 election message was about sympathy for family mortgage or rental payments, and policies aimed at increasing supply, house prices and rents have simply increased throughout the current Government’s term.

The doubling of the first home-buyers’ grant to $14,000 helped 250,000 households and individuals into the housing market. However, it pushed up prices and average first home loans also increased from $230,000 to $290,000. So, many households now have increased debt burdens with 11 per cent of income now going on interest bills. While this may be down from 14 per cent before the GFC, it’s actually double that of a decade ago.

Renters remain ‘stressed’ with almost 170,000 lower-income households paying more than half their income in rent.

Labor’s National Rental Affordability scheme has run at a slower pace than anticipated with investors complaining about an excessively bureaucratic approval process. Superannuation funds have also given the scheme a wide berth.

The commitment to build 20,000 affordable homes has similarly faltered, with new construction of low-income apartments being stymied by ‘not in my back yard’ community groups. Accusations have been made that the scheme undermines the ability of local Governments to create and plan decent communities because of poor design and lack of parking.

The opposition has not released its policy but according to its spokesman Gary Humphries, ‘there isn’t likely to be a great deal of reorganisation, as in wholesale ousting of programmes. There will certainly be a refocusing of some of them, but the changes won’t be massive.’

Julia Gillard’s initiative to help councils clear the way for development with a $200 million regional building fund looks like a step in the right direction, however the money is simply being shifted from the rental affordability scheme.

What’s entirely absent from the 2010 election debate is what First National Real Estate and many industry lobby groups have called for – the need to reform planning laws to help private developers increase housing stock.

The Housing Industry Association (HIA) held a one-day summit in Sydney last week, the outcome being statements that the supply of new housing was being negatively affected by inequitable infrastructure funding models. It believes the lack of planning and approval coordination and the requirement for developers to fund community infrastructure to win approval makes the cost of development unaffordable.

Gary Humphries admits that local and state governments have been a key part of the problem with supply and intimates that the opposition would offer policies to remove the stumbling blocks. Detail, however, is lacking. Meanwhile, the current government has commenced an inquiry into local and state planning laws through the Council of Australian Governments (COAG).

Either way, neither major party appears to offer new policies related to supply and affordability with Labor offering yet another ‘review’ and Liberal, a suggested but yet to be announced policy to remove obstacles to development.

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Immigration a key factor

July 29, 2010 Leave a comment

Director Deanne Lamprey appears in The Burnie Advocate

From today’s Burnie Advocate www.theadvocate.com.au

Politicians slashing immigration would also cut house values, a prominent real estate figure has warned.

First National Real Estate Burnie managing director Deanne Lamprey is unimpressed by Prime Minister Julia Gillard’s talk of a “sustainable population” and Liberal leader Tony Abbott’s plans to cut immigration.

“The Prime Minister’s refusal to outline what she sees as a sustainable population is causing uncertainty for the property market, which is substantially underpinned by the highest levels of immigration since World War 2,” she said.

“She doesn’t want to debate the overall size of the population, nor birth rates, and she said `this isn’t about immigration’.

“However, her broad statement that she does not want a `Big Australia’ means if she supports personal choice on birth rates, there’s really only one place she can go; cut immigration.”

Ms Lamprey said any substantial cut would see businesses seeking labour suffer and a fall in demand for housing.

“That, in turn, would likely lead to a much slower market and, ultimately, falling home values.

` …one of the major advantages that helped our country avoid the 40% collapse in home values in the UK and USA during the (global financial crisis) was our solid immigration intake.”

Mr Abbott wants to cap immigration under 170,000 a year. It hit 300,000 two years ago.

Ms Lamprey said he was the “lesser of two evils”.

“At least he’s stating his intent.

“But what no-one is talking about is the fact that government is one of the major barriers to increasing supply of housing.”

“Ineffectual planning and approvals processes are the major barriers to increasing supply, so it is governments that will continue to drive the market into the future.”

Ms Lamprey was also scathing about what she described as “scaremongering real estate analysts” who predicted a housing bubble burst or affordability crisis amid claims Australia had the world’s most overpriced property.

“The reality is that we probably have one of the best buyers’ markets at the moment and houses at some of the most affordable levels in decades.”

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Analysis or scaremongering?

July 23, 2010 1 Comment

Chief Executive Officer - Ray Ellis

First National Real Estate CEO, Ray Ellis, is calling for scaremongering real estate analysts to be held accountable, after predicting a ‘housing bubble burst’ or ‘affordability crisis’, amidst claims Australia has the most overpriced property in the world.

“These types of claims are incredibly frustrating when you know they are based on a lack of understanding of the complexities and dynamics of the Australian property market,” Mr Ellis said.

“The reality is that we probably have one of the best buyers’ markets at the moment and houses at some of the most affordable levels in decades. Strong population growth is driving demand, and a crucial undersupply of stock is putting a floor under house prices.”

According to Mr Ellis, the market is already softening, with the slowing of house price increases creating some real opportunities for bargain hunters, first time buyers and investors.

“In our recent 2010 Property Outlook Mid-Year Update, we highlighted Australia’s leading mortgage aggregator’s figures which show almost 40 per cent of loans drawn in April were to investors – the highest number recorded,” Mr Ellis said.

While it is true that immigration levels, the highest since World War II, are generating significant demand for housing, much of this debate is overheated by the political agenda.

“But what no one is talking about is the fact that Government is one of the major barriers to increasing supply of housing. Ineffectual planning and approvals processes are the major barriers to increasing supply, so it is Governments that will continue to drive the market into the future,” Mr Ellis said.

“Compounding all this is the Prime Minister’s comments that she no longer supports a ‘Big Australia’, but a ‘Sustainable Australia’ which can only beg the question ‘does that mean you are going to lower immigration levels’, which will impact significantly on the Australian property market.

“When it comes to price trends, they correlate more with the level of public confidence than the level of interest rates, which can have a positive influence on confidence as they are a sign of an improving economy.

“Price growth revived late last year, along with confidence, as emphasis shifted to news of recovery, falling rates of unemployment and a resurgent resources sector, all factors unique to the Australian market

Mr Ellis said while he supported ‘free speech’, analysts needed to be responsible and look at all sides of the story when making pronouncements about the property market.

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