WARM UP WINTER BUYERS

July 2, 2011 Leave a Comment

Selling your home can be nerve-racking, and with the number of days properties are on the market having lengthened this year, First National Real Estate Lakeshores has some simple tips to make sure your property stays on the boil during winter, and reduce any associated stress.

“The value of a property is mainly determined by its location, size and suitability to the buyer,” First National Real Estate Lakeshores principal Mark Millington, said.

“But there are things that a seller can do to maximise the value of the property, particularly in terms of its presentation, even if the weather is cold and things look a bit dull and gray.

“I mean, when someone wants to impress, they go all out to make themselves look and sound good, no matter what the weather is doing – it’s no different with the property you want to sell.

“It’s all about making a good impression and while it’s true that there will be fewer buyers in winter, it also means there will be less competition and less stock.”

According to Mark Millington the most important tip is to appoint a well-respected, reputable and trustworthy real estate agent.

“Agents have a duty to achieve the best price for their clients, keep their finger on the pulse of the market and keep their clients educated and informed about current market dynamics,” Mark Millington said.

“We are encouraging our agents to think creatively and strategically to shorten the number of days listings are on the market and maximise the price of their clients’ properties, including updating photography, remaining positive and upbeat, using all the leading edge marketing tools such as social media and buyer matching technologies, to make sure everything is being done to get the seller the best achievable price.

“Using an agent also offers security, acting as a barrier or deterrent to buyers who are not really serious about the property or who wish to make unrealistic offers for the property.  Most of all, many First National agents offer the additional protection of ISO 9001 Quality Assurance accreditation.”

Winter makes staging your home, the concept of showcasing its best, more important to securing top value for your property.  Mark Millington says putting in a little effort will make the world of difference.

“A well-presented house is likely to achieve its selling price more readily than an untidy, unsightly and unkempt property that has obviously not been well-cared for or maintained,” Mark Millington said.

“That’s why it’s important to make sure the owner does everything they can to make the property look good and that it is always presented in as pristine condition as possible.”

Here are a few things that Mark Millington says can be easily undertaken and are affordable:

  • Paint a few feature walls to create visual impact.  Consider using the services of an interior decorator for a quick consultation and some ideas.
  • Add a few personal touches like family photos and memorabilia around the place to give that ‘homey’ feel
  • Keep lights on during inspections to brighten the atmosphere and make sure curtains, shutters and blinds are open – letting in as much natural light as possible as well as make rooms feel much more spacious.
  • Make sure everything is clean including windows, both inside and out, and light fittings.
  • Place some flowers in vases to liven things up a bit, and even consider spraying some quality fragrance around (but not too much!)
  • Turn on heaters or light fires so that the temperature inside the home is comfortable, inviting the buyer to linger longer, especially on cold days.

Mark Millington said another key tip is that sellers should always try to keep in mind who they are selling to, just like any other product that is for sale.

“At the end of the day, the seller should put themselves in the place of the buyer, think about what would they look for and make sure their home delivers as best as it can,” Mark Millington said.

“That’s what we do here at First National Real Estate Lakeshores. We think of our clients and put them first, because that’s what we would like if we were their clients.”

For further information contact Mark Milligton, First National Real Estate Lakeshores, on 02 4359 1555.

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FIRST NATIONAL BUCKS INDUSTRY STANCE

April 22, 2011 Leave a Comment

First National Real Estate Lakeshores Principal Mark Millington, has snubbed industry representatives who have said in recent media reports that the property industry would support moves to replace stamp duties with a broadening land tax or any other tax.

“It has long been recognised that stamp duty as a tax is inefficient and a complete rort,” Mark Millington said.

“So, while First National Real Estate agrees it needs to go, it does not support the notion that it be replaced with some other tax.

“As far as we are concerned, when the GST was introduced, it was meant to phase out a number of various state and territory government taxes, duties and levies such as banking taxes and stamp duty.

“Now, more than a decade on, we are still being burdened with stamp duty.  What’s worse, the property industry appears to be portrayed in some news articles as willing to settle for replacing the duty, instead of having it abolished altogether.”

Beyond the benefits to the property market of lowering the cost of buying, abolishing stamp duty would also serve to help the economy, by making room for the resources boom.

“Stamp duty inhibits mobility for many, which mean mining areas which are desperate for workers are finding it difficult to encourage workers to sell their homes and move to another area,” Mark Millington said.

“The government needs to look at policies that will encourage mobility rather than inhibit it.”

Mark Millington said the upcoming 2011 Federal Tax Summit presents the ideal opportunity to get blanket approval from state and federal governments to abolish this duty and there should be no further talk of ‘replacement’, but to deliver what was promised in the first place.

“Affordability is rearing its ugly head again, and governments need to stop being greedy and looking to the property industry to make up the shortfalls in inefficient spending and ‘black holes’,” Mark Millington said.

“As well as helping first home buyers enter the market, we need to keep stocks available in the upgrader and investor markets.  These people are looking at other investments because of the expenses involved in upgrading and investing in property.

“Governments even go so far as to put a stamp duty on the GST that is paid on commercial and industrial properties that are sold, which just seems ludicrous to me.”

Mark Millington is at a loss to understand why governments are resisting the move to abolish stamp duty, when so many are in agreement that it needs to go.

“A recent article said the OECD supported the rationalisation of state and government taxes particularly stamp duty on house sales, the ex-Treasurer Peter Costello said it should have been eliminated when the GST was introduced and even the Henry Review recognises the need for it to go,” Mark Millington said.

“The GST was meant to provide sufficient funding for state needs, and if they are not able to raise enough revenue through the GST they need to look at reform, rather than rorting hard-working Australians and replacing one tax for another.  We should get rid of stamp duty altogether.”

Issued by: First National Real Estate.  For further information contact Mark Millington, Principal, First National Real Estate Lakeshores, on 02 4359 1555.

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PROPERTY MARKET OUTLOOK – PATCHY BUT SIGNS OF RECOVERY

February 8, 2011 Leave a Comment

Property Market Outlook 2011Mark Millington from First National Lakeshores, expects the Lake Macquarie and Central Coast property market to strengthen in 2011, led by investors, upgraders and prices trending upwards.

“There is an undersupply of properties to purchase or rent to meet pent up demand and buyer interest,” Mr Millington said in the 2011 First National Property Market Outlook released this week.

“This will push house and apartment/strata property prices up by between 1 and 5 per cent.”

Vacancy rates are trending down and weekly rentals upwards as shortage of available accommodation and worsening housing affordability making it more difficult for first homebuyers to enter the market.

“Movements in weekly rentals will be up to 5 per cent in the main, and vacancy rates, already tight, will tighten even further by up to 1 per cent,” Mr Millington said.

According to Mr Millington, the banks should be doing more to help keep the property market healthy and robust in 2011.

“Abolishing mortgage exit fees would increase competition in the mortgage industry and give consumers the chance to change lenders for a better deal,” Mr Millington said.

“It would also mean anyone who has to sell for financial reasons will not have to try and get above market value to cover exit costs.

“The banks should also keep their moves on interest rates in line with the RBA and not move independently.”

Mr Millington believes an anticipated additional two interest rate increases will only serve to have a negative impact on affordability as buyers will have a reduced borrowing capacity.

According to Mr Millington, widely anticipated electricity price hikes are expected to increase the number of buyers looking for energy efficient features as well as the types of features they look for.

“Solar hot water and power will become the features that make a home more saleable, and there needs to be more done to educate consumers on the benefits of energy efficient features.”

Mr Millington said the state election scheduled for 2011 may impact on the market as a result of the typical uncertainty caused during the lead up.

“Either way, the government needs to do more to alleviate the lack of supply such as releasing more land, allowing more medium density developments, improving planning and approvals processes and controls, and introducing a national planning authority” Mr Millington said.

Mr Millington said he expected an increase in investor activity in the next 12 months, as increasing weekly rental prices will improve investor returns.  Upgraders and investors are very active in the $600,000 to $1 million range while first homebuyers are still active in the affordable Central Coast market.

Issued by: First National Real Estate

For further information or to receive a copy of the 2011 Property Outlook, Mark Millington, Principal from First National Lakeshores, on 02 4359 1555

Filed under Market Updates

Market Ripe to Bear Fruit

August 4, 2010 1 Comment

Market Ripe to Bear Fruit

Market Ripe to Bear Fruit

Commenting on yesterday’s announcement by the RBA that it will hold interest rates at 4.5 per cent, Mark Millington, Principal, First National Real Estate Lakeshores says there are plenty of opportunities around for home buyers and sellers, given current market conditions, as long as the fundamentals are focused on.

“At times like these, homes that are properly presented, appropriately priced and well marketed will always do well, regardless of what happens with interest rates,” Mark Millington said.

“It’s a matter of making sure you get the basic factors right and plum properties should bear fruit.”

When there is relatively high business confidence, strong levels of immigration and low unemployment, the market becomes suitable for buyers. However, those seeking to sell can also make sure they take advantage of these prime conditions.

“In a slower market, there is less pressure on sellers and buyers and during the cooler months, there is less volume of stock around from which buyers can choose, so houses are more likely to sell,” Mark Millington said.

Mark Millington said currently there are growing investment returns in the property market, which should prove lucrative for the astute investor.

“Investors, in particular, can benefit greatly from the current market conditions and pick up some terrific properties that offer strong returns,” Mark Millington said.

Issued by: First National Real Estate
For further information contact Mark Millington, Principal, First National Real Estate Lakeshores on 0418 970 591.

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Property Remains a Sure Bet

July 23, 2010 Leave a Comment

Mid year property outlook 2010

Mid year property outlook 2010

As property punters across New South Wales hedge their bets both ways, First National Real Estate Lakeshores’ Principal, Mr Mark Millington is bringing some much needed clarity, predicting property prices’ growth will slow but that the market will remain buoyant despite ongoing uncertainty and increased consumer nervousness.

According to Mr Millington, property prices across all sectors of house, land and apartment/strata in the Lake Macquarie and Central Coast region rose by up to 1 – 5 per cent in the last six months, driven mostly by an increase buyer pool and lower level of available homes for sale, plus lower interest rate and government stimulus. 

The rental market has seen vacancy rates decrease marginally by no more than 1 per cent as housing affordability and immigration create more tenants than available homes – a factor which has seen rents increase by as much as 5 per cent in some cases.

For the remainder of 2010, property prices, across all sectors (house, land and apartment/strata) are expected to continue to increase by up to 5 per cent as there is a shortage of new listings and a growing buyer pool to draw from.  However, this is dependent on the RBA not increasing rates too high. 

“The last two rate rises have already impacted on buyer confidence and also housing affordability and it is hoped they have now done their job and will hold rates where they are for some months, significantly improving buyer confidence,” Mr Millington said.

Vacancy rates are expected to ease even more, decreasing by a marginal 0-1 per cent, while rents are expect to further increase by up to 5 per cent due to the ongoing shortage of available rental accommodation.

Sales should continue to increase as Generation Xers continue to seek, and take advantage of, opportunities to trade up.

The new tax by the NSW government for home owners selling property over $500,000 will have a negative impact on the market, similar to the results of the NSW vendor exit tax for investors.

Housing affordability has come to the forefront in NSW, particularly in Sydney, while other parts of NSW, such as the regional and coastal areas, enjoy lower median prices and are attracting investors and first home buyers. It is expected affordability will remain a major factor in property decision-making throughout 2010.

Property hot spots are considered regional and coastal areas that have the greatest potential for growth as capital cities become more expensive.

A highlight for the second half of 2010 will be an expected 5-10 per cent increase in investor activity in the property market, on the back of an already 1-5 per cent increase in the last six months.

The expected increased activity is due mainly to finance markets becoming more volatile and consumer confidence being affected, investors will return to property for security, with a housing shortage that appears unable to change quickly, ensuring real estate holding values or increasing in value.

Interest rates are expected to continue to increase further by the end of 2010, by between 1-1.5 per cent, further impacting on the Lake Macquarie and Central Coast property market and adding to housing affordability concerns.

The environment is continuing to be a factor for consideration by homebuyers, with the most popular ‘green’ features being water tanks and solar hot water.

According to Mr Millington, the Government needs to take greater control of the supply versus demand issue for the Australian property market.

“They need to consider a holistic approach to the issue and look at a number of factors, such as releasing more land; overhauling the planning process and introducing a national planning authority; and introducing incentives for more medium density developments,” Mr Millington said.

There is a strong trend developing for Gen Xers and Baby Boomers opting to stay in their homes, rather than sell, making it harder for Gen Yers to get into the property market.

To view the full report for the Australian property market mid year update click here.

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HOME OWNERSHIP STILL WITHIN GRASP

June 21, 2010 Leave a Comment

First Home Buyers

Home Ownership Still Within Grasp

Home owners and buyers are once again feeling the pinch to keep their dreams of home ownership alive as housing affordability returns to the property market agenda.  But, First National Lakeshores Principal, Mark Millington says it’s a matter of rethinking options and developing creative strategies.

Impending future rate rises, along with tightening lending conditions and increasing mortgage stress concerns have started to take their toll on home buyers’ ability to own their own home.  According to Mark Millington home buyers need to take action on an individual level to tear down the wall of housing affordability in any way they can.

Recent research has found a decline in the number of home loans with a high loan-to-value ratio (LVR) of 95 per cent or above.  LVR refers to the amount of money borrowed for a property, compared to what the property is worth.

Mark Millington says while lending criteria has toughened in recent months, there are still lenders willing to negotiate a better deal around a number of factors such as fees or rates or the actual LVR itself.

“Lending institutions need to be willing to negotiate and be a little more flexible,” Mark Millington said.  “And there are plenty of lenders out there who are willing to do just that, if home buyers are willing to shop around a little and do a bit of homework themselves.  It’s up to the individual to take matters into their own hands and ask.

“But they need to have the facts that support their case as well.”

Some key tips for overcoming housing affordability concerns include:

  • Time your purchase for when there is a lull in the market, such as winter, when the market generally slows and lower demand can potentially tip the balance in favour of buyers.
  • Calculate what you can afford to spend, factoring in any interest rate increases, probably 2 per cent higher than current levels.  Match this to your list of preferred suburbs and concentrate on properties that are genuinely within your range.
  • Be flexible and adjust expectations as required.  You may dream of buying a home in a particular area, but consider a smaller home, or even a unit or apartment, with a view to upgrading later.  Alternatively, consider an area a suburb or two removed from your where you would like to live.
  • Start a disciplined saving strategy immediately.  Set realistic savings goals and set up an achievable budget for household expenditure.

Mark Millington also had some sage advice for home owners currently experiencing mortgage stress.

“Home owners can consider extending the life of the mortgage,” Mark Millington said.

“In recent years, all the focus has been on how quickly a family can pay back the mortgage and then move another rung up the ladder.

“Obviously, that is the most desirable situation, but times are changing and it may be more useful to focus instead on how to get into the market in a way that is financially manageable.

“But whatever they do, they should seek the services of a qualified, reputable and trustworthy financial advisor.”

Filed under Market Updates, Media Releases Tagged with , , , ,

Residential Market Slows

June 2, 2010 Leave a Comment

For the last year, strong demand has led to high auction clearance rates and marked growth in residential real estateProperty Outlook 2010 values nationally. However, it’s now official – clearance rates have slumped after the compounding effect of six interest rate increases since October, tightening lending criteria and a worsening European financial crisis.

Eight weeks ago, Melbourne was riding the crest of the demand wave with a clearance rate of 85.3 per cent. That’s now fallen to 69.4 percent. Similarly, Sydney was enjoying a clearance rate of 73.7 per cent but that’s now just 63 per cent. However, while these are the nation’s two largest auction markets, they’re only a small proportion of all dwelling transactions nationally. Still, the traditionally weaker auction markets of Perth, Adelaide and Brisbane have eased as well.

In contrast though, the total number of auctions taking place has remained very strong and measures released yesterday by RP Data indicate that although prices growth has slowed, home values are up nationally by an average of 0.2 per cent in the month of April and 2.4 per cent for the quarter. Of concern though is the change in direction for both Brisbane and Perth values, with the former dropping 0.5 per cent and the latter 0.6 per cent in the April quarter. Could this be the beginning of a downward trend?

The Government’s planned imposition of a Super Profits tax on mining companies is affecting confidence as it attempts to position the tax as a battle between big business mining and average Australians. With several future mining projects either now on hold or cancelled, it may still be too early to be sure whether this is having direct effect but both Western Australia and Queensland have shown anecdotal evidence of cooling consumer sentiment and, as the above figures confirm, a slide in prices.

Last week, the International Monetary Fund (IMF) and the Organisation for Economic Co-operation and Development (OECD) contributed conflicting commentary on Australia’s housing position. The IMF suggested that its analysis of housing slumps since 1970 shows home prices will fall much further and for much longer. In a report in The Australian, its economist Prakash Loungani said previous slumps had lasted on average for 18 quarters, with prices dropping 22 per cent. The current housing slump has lasted only 14 quarters and prices have dropped just 15 per cent.

Prices have dropped 15 per cent? Not according to Australian data. Taking the opposing view, The OECD was more upbeat, even though it predicted at least four more rate rises, and most likely five in the year ahead. It suggests the RBA will finish the year with a cash rate of 5.1 per cent by December and push on to 5.7 per cent by next June.

This is completely at odds with Australian financial markets, which are anticipating a tightening of only 0.25 per cent over the next year. Yet, despite the OECD’s gloomy interest rate outlook, it still expects demand for Australian real estate to remain strong, ‘bolstered by immigration’ and above average economic growth – exceeding 3 per cent. New South Wales is paying the price for the State Government’s introduction of a new property tax which is making new construction less attractive for developers. Brisbane also appears to have fallen out of favour, with big residential developers pinning hopes of future profits on Melbourne, Perth and Adelaide.

Stockland have recast their product to the affordable end of the market and will be relying on the ‘boom market in Melbourne’. Its recent investor update says that 50 per cent of all jobs created in the past 12 months were created in Victoria and that the state has been more successful than any other in tapping the population surge driven by migrants from China and India. Billionaire developer Lang Walker is firmly focused on Adelaide as well as Melbourne, and most other developers are following in his footsteps.

The RBA Board met to yesterday determine what action to take with interest rates for June. The weakening market indicators and falling Australian dollar led to a hold in the official cash rate.

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Landlords under threat in NSW

May 1, 2010 2 Comments

LANDLORDS WILL HAVE LESS SAY IN WHO LIVES IN THEIR INVESTMENT PROPERTY, AND WHAT COSMETIC CHANGES TENANTS CAN MAKE TO IT, UNDER SWEEPING CHANGES TO NSW RESIDENTIAL TENANCY LAWS. FIXED-TERM LEASES WILL ALSO BECOME A THING OF THE PAST.

In November 2009, the NSW Government released the Residential Tenancies Bill 2009, which proposes some of the most radical changes in decades to the control and management of hundreds of thousands of rental properties in NSW.

Just a few examples of the changes proposed are detailed below.

Sub-letting

Under the proposed reforms, a landlord’s right to decide who inhabits their property may be able to be challenged.

The concept of permitting sub-letting without the consent of the landlord, and for there to potentially be an increasing stream of sub-tenants, will simply open a Pandora’s Box of issues for landlords.

Cosmetic changes

The proposed changes also provide that a landlord must not unreasonably withhold consent “to a fixture, or to an alteration, addition or renovation that is of a minor or cosmetic nature”. There is no definition of what is“minor or cosmetic” in the Bill.

 What is minor or cosmetic to a tenant may not be what is minor or cosmetic to a landlord. In addition, a minor or cosmetic change made by one tenant will not necessarily suit the next tenant. Such changes may also result in damage that is irreversible.

Landlords must retain the right to say ‘no’.

Fixed-term tenancies

Another proposed change will result in fixed-term tenancies becoming a thing of the past. Tenants will be able to break a lease, during the fixed term, without any special ground by giving just 14 days notice to the landlord and paying a break fee.

This single, dramatic change to current practice has the greatest potential of any of the proposed changes to utterly destroy landlord confidence.

What is the point of a landlord entering into a fixed-term tenancy that is unable to be enforced?

A need for appropriate reform

The stated objective of the reforms to “fairly balance the rights and obligations of tenants and landlords” is laudable. There is clearly a pressing need for reform in some areas of the residential tenancies regime.

However the changes proposed will instead substantially shift the balance of power further in favour of tenants.

In a market where many landlords are already only deriving a marginal return, measures such as those proposed may well be the straw that breaks the camel’s back.

The way forward – your voice is important

The changes proposed in the Residential Tenancies Bill are set to significantly affect your rights as a landlord.

If you do not agree with the proposed changes, you should contact your local Member of Parliament as a matter of urgency and make them aware of your concerns. It is your MP who will ultimately vote for or against these changes. Contact details for your local MP are attached.

We would also encourage you to register your opinion at http://www.reinsw.com.au/rtafeedback

Down load a copy of this article and a list of local MP’s: PMChapter_RTAflyer_FINAL[1]

Source: REI NSW

Filed under Market Updates, Media Releases Tagged with , , , , ,

FIRST NATIONAL SAYS NATIONAL PLANNING NEEDED

May 1, 2010 Leave a Comment

First National Real Estate CEO, Ray Ellis, supports the call from the Australian Local Government Association for a national planning authority but says Australia’s problems with its planning processes go far beyond the single issue of coastal climate change planning and require a major overhaul.

“It’s very myopic to just consider this one issue in isolation of what is happening in other areas of the property market around this country,” Mr Ellis said.

“In Queensland, they are working off two year old planning approvals, while NSW planning approvals have dropped dramatically in recent times.

“And, while Victoria has just posted strong planning approval figures for some years, this is a result of a minister wielding a big stick rather than systemic structural changes.”

Mr Ellis agreed that the confusion created by inconsistent sea level rise predictions makes planning and development increasingly difficult on coastal regions, but more importantly have the potential to impact negatively on the property market in general.

“Home owners and other property market pundits need certainty around property prices so that they can make decisions based on facts and consistent information,” Mr Ellis said.

“It’s all well and good to say that the responsibility for planning rests with state and local government, but ultimately, a consistent, unified and national approach needs to be considered in the property market.

“This is unsustainable and I can’t think of any other industry that would operate with this level of uncertainty and confusion.”

Filed under Market Updates, Media Releases, Opinion Tagged with , , ,

Property Outlook Videos 2010

April 7, 2010 Leave a Comment

We shared with you recently a copy of the 2010 Property Outlook for Australia which includes a specific section on each state especially the Queensland Property Outlook for 2010.

For those who would rather watch a video rather than read a report here are some quick video reports on the property outlook for right around Australia.

National Property Outlook 2010 

NSW Property Outlook 2010

Queensland Property Outlook 2010

Victorian Property Outlook 2010

Tasmanian Property Outlook 2010

South Australian Property Outlook 2010

Western Australian Property Outlook 2010

Northern Teritory Property Outlook 2010

To read the full report download your copy here.

Filed under Interviews, Market Updates Tagged with , , , , , , , , , ,

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