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.”

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

FIRST HOME BUYER NUMBERS ARRESTED

March 20, 2010 Leave a comment

First Home Buyers

Searching for First Home online

The number of first home buyers in the marketplace has dropped significantly, but according to Mark Millington from First National Real Estate Lakeshores, there is still plenty of opportunity for first home buyers to realise their dreams of home ownership.

“Since October last year, market share for first home buyers has decreased from 26 per cent to 22.1 per cent currently,” Mark Millington said.

“And the potential for escalating interest rates, which have now been on hold for three consecutive months, along with government taxes and high up-front costs may make things even harder for first time buyers to save for that ever-important, yet growing in size, deposit.”

Mark Millington does have some advice to offer first home buyers, whose confidence is waning as house prices are set to continue soaring growth throughout 2010.

“First home buyers need to be more financially savvy if they are going to get into the housing market in the coming twelve months,” Mark Millington said.

“They need to be able to make sound financial decisions, based on a level of certainty around interest rates.

“This is why we recommend they seek the services of a financial advisor who can assist them to establish a savings plan and budget to track their expenses and identify areas where they can cut back on their expenditure.”

Establishing a budget is about setting realistic timeframes, estimating income and expenses accurately and then tracking and monitoring spending to identify areas where belts can be tightened.

“There are also still in place a number of government assistance schemes, such as the First Home Saver Accounts and First Home Owners Grant which can also assist greatly,” Mark Millington said.

Other hints for first home buyers include keeping an eye on the market at all times, talking to good agents about where the bargains lay in a suburb, and shopping around for good mortgage deals.

“Look for mortgage deals where you are able to pay back more than the monthly repayments, which can often reduce the term or interest payable on the mortgage significantly,” Mark Millington said.

“Or, consider switching from a standard to a basic, or no frills, home loan which can potentially cut interest rates by around 0.4 per cent, but potentially may take away the flexibility to achieve other savings such as extra repayments.”

First home buyers need to reclaim their share of the property market and take advantage of the services and incentives currently on offer.

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

SLOW AND STEADY TO WIN 2010 NSW PROPERTY RACE

March 19, 2010 Leave a comment

Property Outlook 2010Mark Millington from First National Lakeshores and First National Real Estate State Chair, expects the New South Wales property market to further strengthen over the first six months of 2010, with the potential for small increases in property prices and rentals on the back of moderate price growth over the last six months of 2009.

“House, unit and land prices in the state rose by up to 5 per cent in the last six months, due mainly to increased investor activity as a result of low interest rates and high rental yields,” Mr Millington said in First National Real Estate’s 2010 Property Outlook released this week.

“Unit and land prices rose as a result of lower levels of established homes being available for sale, forcing buyers into building new ones.

“This shortage of available homes will also drive rent increases of up to 5 per cent in the coming six months. 

“I expect prices to rise marginally over the next six months as the First Home Owners Grant Boost comes to an end and interest rates increase, and investors continuing to be drawn back to the market as the first home buyer market returns to more normal levels of activity.”

Around 1-5 per cent of the state’s sales activity in 2009 is attributable to investors and this is expected to increase by 5-10 per cent in the first half of 2010.

Mr Millington believes this ongoing trend is due to investors finding high rental yields and lower interest and vacancy rates too attractive to ignore.

“When compared directly by investors, an unstable stock market makes bricks and mortar seem a more secure option for their investment dollars,” Mr Millington said.

Sales are expected to rise as Generation X’ers continue to be lured to the state with planned new jobs and businesses.

Hot spots are considered to be the city and coastal areas where Mr Millington expects there will be consistent price growth because of lower supply of property for sale and increasing buyer demand.

Mr Millington considers the environment another major factor that could impact on the property market. 

“Up to 5 per cent of house hunters in New South Wales are looking for energy efficient features when looking to buy a new home,” Mr Millington said.

“The most popular energy efficiency features in the state are water tanks and solar hot water.”

Click here to view Property Outlook 2010.

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

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