MAKE A SPLASH THIS SUMMER WITH PROPERTY

January 4, 2013 Leave a comment

Selling in Summer

Selling a home in summer can be tricky for some but rewarding for many.  First National Real Estate Lakeshores Principal, Mark Millington says it all comes down to getting the details right.

“Pretty gardens, spectacular views and a well-presented home will only go so far, especially in a market where buyers would rather be relaxing with a cool drink instead of house-hunting in the heat,” Mark Millington said.

“It is essential home sellers price their property correctly, choose the most appropriate sale method and market it appropriately.  Real estate agents can make a lot of difference here as they have the necessary knowledge and experience to maximise the value of your property.”

Mark Millington said that when it came to pricing the property, home-owners need to consider the market and buying conditions.

“Summer is a time when buyer numbers plateau – particularly during the holiday period – but the current market conditions of low interest rates and affordable prices will prove too tempting for many to pass up,” Mark Millington said.

“So it requires real skill to set the price at a realistic level where both the buyer and seller feel comfortable that they have paid and received a fair price.”

One of the biggest dilemmas summer sellers face is whether to go to auction or sell their house through private treaty (for sale).  In making this decision, there are a number of factors that should be considered such as location, style of property, level of demand and timing of the sale.

“Private treaty sales offer the advantage of a clearly stated price. This can be powerfully attractive to buyers who sell their property just prior to Christmas and are facing settlement in early January Mark Millington said.

“When you have properly priced your property, these types of buyers can be super motivated to make strong, fair offers, with a minimum of negotiation, but it’s essential to have your price right in the first place if you’re going to do business.

‘On the other hand, auctions allow the market to determine the price and competitive bidding can push the price up. Auction also offers the seller certainty that once the reserve is reached, the property will be sold, and there is no Cooling Off Period so the sale is secure – the buyer can’t change their mind. However, the timing of an auction is crucial so it’s best to have auction campaigns completed before the holiday period gets underway.”

When it comes to auctions, Mark Millington said there are two types to be considered: in-room or on-site.

“At an on-site auction, buyers can actually touch and smell what they are buying, which can provide a stronger emotional connection to the property,” Mark Millington said.  “Also, there is an argument to be made that suggests when it comes to those final bids, and the buyer is standing in what is to be their new home if they are successful, they are more likely to go that little bit further to secure their new home.

“However, in-room auctions are not affected by the weather or other environmental factors and when the market is running hot, the enthusiasm for other properties offered by auction at the same event can positively influence the bidding on your own property.

According to Mark Millington, the soft market of recent times is showing a trend towards private sales over auctions, with sellers more inclined to take that route than what they perceive as the uncertainty of the potential outcome on auction day.

“My advice would be to discuss all the options available with a real estate agent, who will help determine which method of sale best suits your individual circumstances and the likely degree of demand for the type of property you’ll be offering the marketplace,” Mark Millington said.

“The agent is there to help weight up the benefits and costs and pro’s and con’s of each scenario and to support a seller through the sale process.  They can only do that if the seller is open and honest about their feelings and share their concerns.

“At First National, we are there to put our clients first, which is why we lead our industry.”

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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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Stamp Duty standing in the way

June 29, 2012 Leave a comment

Stamp Duty Property NSW and AustraliaSupport for the Prime Minister, Julia Gillard, has come from an unusual source today from the local member of First National Real Estate, Mark Millington, who agrees with her call for the review of state based property taxes.

“It is a rare thing for me to say I agree with the Prime Minister, but I believe she has it entirely right when she says State Government based property taxes are standing in the way of economic growth in this country,” Mark Millington said.

“As Australia’s largest independent real estate network, we do everything we can to help people with workforce and lifestyle driven mobility,” Mark Millington says “but the State Governments are not doing anything to help – a fact we have been on the record as raising on numerous occasions over the last 12 to 18 months.”

Mark Millington said research has shown that a lot of city dwellers would like to make a move to the country, but find the costs of selling and buying a home, including stamp duty, prohibitive.

“There is certainly a high level of interest in people moving within a state and possibly even between states for lifestyle reasons”,  Mark Millington said.

“The main thing standing in their way is the cost of buying and selling a home and stamp duty is a large part of that cost,” Mark Millington said. “So, on the one hand State Governments want people to move within their State and the Federal Government needs them to be able to move between states, but the State Governments’ stamp duty is one of the major costs that is stopping that happening.”

Last year, stamp duty accounted for 37% of total property related taxes in Australia and Mark Millington believes the reliance of Governments on property taxes is standing in the way of Australia’s economic growth.

“We need to stop penalizing people who have saved enough money to buy a house or who are prepared to follow job opportunities interstate.  Stamp duty is an anti-growth tax, and is a lazy way for governments to keep their budgets in check,” Mark Millington said.

Issued by: First National Real Estate Lakeshores

For further information contact:

Mark Millington, Principal, First National Real Estate Lakeshores, on 0418 970 591

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CLIFFHANGER

August 25, 2010 Leave a comment

Election Cliffhanger

Election Cliffhanger

Uncertainty surrounding the outcome of the weekend’s federal election looks like having a depressing effect on share, money and real estate markets. The Australian dollar was already falling on early morning trade as Your Industry was being written.

With the coalition releasing its housing policy just one day before the election, and there being so little housing policy debate throughout the campaign, it could be some time before a degree of normalcy returns.

That, of course, depends entirely upon a smooth resolution of the current situation.

Both Labor and the Coalition are busy courting independent MPs and the Greens in order to form a Government. With The Greens likely to hold the balance of power, it may not be long before Bob Brown’s stated intention to demand a higher mining super profits tax becomes reality. Weeks before the election, sales were reported as having fallen by as much as 18 per cent in some mining towns, even after Labor’s hurried, reparative negotiations with mining companies, so property investment in Western Australia and Queensland may suffer further.

While reports of slower sales and hesitant buyers have dominated media recently, this is typical of the winter months and is likely a reflection of the wearing off of historic low interest rates as well as historic Government incentives and stimulus. You can’t have 20 per cent capital values growth in one year and no penalty in the following, on the back of a GFC and a housing market force fed on steroids. The market has to adjust and with the additional retarding effect of a federal election, any other outcome would see the bubble brigade gaining legitimacy.

While niggling uncertainty about world financial health continues, rightly or wrongly, the perception is that low unemployment, the minerals boom and China’s economic growth offset Australia’s risks. The RBA’s decision to keep rates on hold earlier this month has also helped, enabling the market to quickly adjust to real world rates being closer to 7.5 per cent.

Headlines about lower auction clearance rates don’t necessarily accurately reflect the true state of the market. The Australian Bureau of Statistics indicated that there was a 2.3 per cent rise in May loan approvals and in July first homebuyer mortgages were up from 9.5 per cent to 11.1 per cent –indicators that don’t look too shabby at all.

The combined national rise left loans up 1.9 per cent, the first such increase in eight months – a good harbinger for spring.

Valuer Herron Todd White’s August review might have had some journalists thinking agents should be running a bath and looking for a toaster. Fundamentally, it indicated fewer properties were for sale, more were being sold by private treaty and things were taking longer to sell. Once again, a quiet market is common in winter and the quieter the market and the fewer the listings, the more likely a spring surge of listings and activity becomes.

HTW indicated a slight August fall in values in the prestige Melbourne markets and the under $600,000 segment in Brisbane was thought to be driving the overall market. Perth’s median has again fallen below $500,000 but prestige sales have been so limited that it is impossible to draw a conclusion as to what’s happening there. Darwin prestige units have stabilised but houses over $1m are thinly traded. Hobart sales are slow, but no more so than normal for this time of year. Adelaide showed some minor growth in the June quarter.

In all cases it seems quality property is moving but secondary property is taking longer to find buyers – again, unsurprising in winter. Overall, there are positive indications that once the winter chill and political impasse are history, there could well be a groundswell of vendors ready to sell on the spring market. First homebuyers are likely to make a return however investors may, depending on the political landscape, be less inclined to invest in the traditionally high return mining markets.

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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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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

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Child-proof your Home

April 7, 2010 Leave a comment

Children are always at risk of injury, but never more so than in the family home.  According to Mark Millington from First National Real Estate Lakeshores there are many simple measures that can be taken to prevent simple accidents, often with far-reaching and serious long-term effects, from occurring in the home.

“It’s a simple case of taking a critical view of objects around your home and understanding where the potentials for hazards are,” Mark Millington said.

“Take the time to get down and crawl around the home so that you can see for yourself where curious hands and adventurous spirits might roam.”

While childproofing the home is important for families, investors should also take the time to understand how child-friendly their investment property is, as it may represent a marketing point for their investment property.

Injuries are the leading cause of death in Australian children aged one to fourteen, accounting for nearly half of all deaths in this age group.  More children die from injury than of cancer, asthma and infectious diseases combined.

Unintentional injuries make up around 95 per cent of all child injury deaths, with young children under the age of five years most at risk of unintentional injury.

“The most common place for young children to be injured is in their own home, so ensuring the safety of our homes should be paramount for parents to keep their children safe,” Mark Millington said.

“There are so many things that are precariously balanced, just waiting to be pulled down, knocked over, bumped into or climbed on.

“And as the child becomes more mobile and dexterous, they love to put things in their mouths and they don’t discriminate between toxics or poisons and lollies or biscuits.”

First National Lakeshores has produced a Tip Sheet to assist parents, and investors, create a safe environment in the home for children to thrive and grow.  A version can be downloaded from the First National Lakeshores website www.lakeshores.com.au or click here.

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Property Management a billion dollar business

March 31, 2010 Leave a comment

Agent on Rental Inspection

Property Management a billion dollar business

Property Managers and business owners from across the country who met in Sydney this week heard that property management is the unsung hero of the property industry. 

“We had 140 property managers in the room and between them we estimated the market value of the properties under management to be more than $2.6 billion dollars,” said First National Board member and Tasmanian State Chair Deanne Lamprey. 

“Each of our property managers are looking after millions of dollars worth of assets, they play a very important role in the real estate industry, economy and the community”.

First National Real Estate CEO, Ray Ellis, agreed.  

“All the data and analysis focus on the sales side of the property industry,” Mr Ellis said.

“When people work hard to put away money for an investment, they want to make sure that asset is looked after so they earn good returns and the value of their investment will continue to grow in the future.  

“In real estate, the people who look after those assets are property managers.

“With our housing stock in such short supply and vacancy rates tight across the country, effective property management is a vital part of our economy.

“Without good property management, the value of Australia’s housing stock would deteriorate in condition and then in value.”

Mark Millington, Principal from First National Real Estate Lakeshores said they were surprised by the value of assets under management. 

“It is very easy in a real estate business to focus on sales, but that side of the business is often very short term and easily affected by changes in interest rates, market sentiment and local developments,” Mark said. 

“Property Management is the business that tends to remain steady regardless of whether sales are up or down.  Looking after the assets of the community is important work that is often under valued.”

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CAN RENTING BE BETTER THAN BUYING?

March 26, 2010 Leave a comment

Current market conditions, coupled with growing concerns over housing affordability, are causing uncertainty for home buyers who are wondering whether they should continue to rent or commit to buying their own home.

Mark Millington, Principal from First National Real Estate Lakeshores says it all comes down to what suits the individual’s personal and financial situation best.

“With property prices and interest rates continuing to increase, mortgage repayments are beginning to be beyond the reach of many young Australians,” Mark said.

“But they shouldn’t panic.  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.

“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 the housing supply and demand equation will continue to put pressure on vacancy rates, the fact remains that monthly rental payments will usually be less than a mortgage repayment for a comparable property.

“One of the greatest advantages of renting is that maintenance costs, repairs, rates and insurance bills are the responsibility of the property owner, and not the renter,” Mark said.

Despite these many advantages of renting a property, there are some disadvantages which will make buying preferable.  The most obvious one being that when you rent, you can never really put your own personal stamp on the property or make it reflect your individual style and design preferences.

“There is also the inconvenience, and in some cases pressure, of knowing your landlord can inspect the property whenever he/she wishes (providing they give sufficient notice) invading your privacy and peace of mind,” Mark said.

“But the biggest disadvantage is that you will never pay the property off, as you do with your own home.  You will always have to pay rent and therefore the money is lost for good, without any chance of recuperating it in the sale of a property.”

Ultimately, this is where the biggest difference is between renting and buying.  An individual needs to consider which will make the greatest impact on their personal net wealth and cashflow over their lifetime. 

“Usually, this will be purchasing a home, but it will come down to making sure you buy well and that you buy right,” Mark said.

“This is where the advice and assistance of a real estate agent comes into its own.  We have the necessary knowledge, experience and skills to understand the market, its trends and its weaknesses and opportunities and it is what we pride ourselves on. Despite the end of the boost to the First Home Owners Grant, it’s important to remember that the First Home Owners Grant still exists as well as many additional state Government financial incentives.

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

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