Real Estate Sales and Property Management
October 25, 2012 1 Comment
First National Real Estate’s agents are working hard, all over Australia, dealing with renewed enthusiasm for property this spring.
Since the most recent Reserve Bank cut to official interest rates, there has been a sharp rise in consumer confidence. In fact, the number of Australians that think now is a good time to buy a home has jumped 10 per cent since March.
September 22, 2012 1 Comment
First National Real Estate Lakeshores Principal, Mark Millington agrees with comments made recently by outspoken Senator, Bill Heffernan, that Government needed to make changes to avoid overseas investors owning Australia’s assets.
“Australian governments and business need to act today to realise the value of our natural assets or investors from overseas will do it for us” Senator Bill Heffernan said, speaking recently at First National Real Estate’s Commercial and Rural Conference in Canberra.
The Senator made a passionate plea for changes to help Australians rather than overseas investors realise the value of our assets.
“By 2070 China will need to feed 50% of their population from outside the country and they are looking around the world to find investments to make that possible,” Senator Heffernan said.
“100 years ago we would never have thought a sovereign power could come and acquire assets here without an army. Now all you need is a cheque book”.
Mark Millington agreed, saying “Senator Heffernan is right. If we do not find Australian investors, then overseas investors will step in.
“The Foreign Takeovers Act is out of date and we need to make sure, if and when foreign investors come in, that they are competing on the same basis as Australian investors,” Mark Millington said.
“In a challenging market Australians are being cautious and often the only way to sell a property is to look to overseas investors. We like to get our clients a sale, but it is not in anyone’s interest to get unrealistic prices that then inflate average prices and increase rates. We firmly believe the market has bottomed out and all we need now is some confidence and then we can see Australians investing in both commercial and rural assets.”
Senator Heffernan agrees. “There will be a lot of opportunities in the future. We need to make sure everyone investing in Australia does so on the same basis and we need to be able to tax foreign investors and make sure all Australians can benefit from our potential as the market garden of Asia.”
“We in Australia are wooden headed, we think agriculture is a mature industry and it is not. We need to get the modern equivalent of soldier settlers to develop the land and develop solutions or someone will come and do it for us,” Senator Heffernan said.
- copy ends -
Issued by: First National Real Estate
For further information contact:
Mark Millington Principal, First National Real Estate Lakeshores on 0418 970 591
June 29, 2012 Leave a comment
Support 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
January 14, 2012 Leave a comment
Your property will possibly be the most valuable asset you will ever sell so it’s important to heed professional advice in order to maximise its sale price.
Selling your property is not a task undertaken everyday. When you’re selling, it’s important to be fully informed and plan each step carefully.
There is something to be learned from how home sellers have approached the often complex task of putting their home on the market, and more importantly, closing the deal.
Effective Habit #1: Be Realistic
Property is one of those rate things with no recommended retail price. What your neighbour sold their home for last year, or even last month, doesn’t matter. What you “lost” because you didn’t sell your home at the peak of the market doesn’t matter. The enemy is any other property for sale within your area and price range.
Selling a home ranks WAY up the list of “life’s most stressful moments”. But you have to understand and be realistic about your home’s value, your neighbourhood, and the real estate market you’re in. There are many factors that impact the potential sale of your home. You do not have control over current market dynamics (economy, interest rates, outlook, consumer sentiment, employment, wages) or local supply versus demand. But there are things you can control (presentation, cleanliness, street appeal, availability). Address what you can control, and understand the impact of what you can’t. Realistically.
Effective Habit #2: Be Open to Suggestions
You’ve selected a real estate agent to help you, trust their advice. After all, you wouldn’t visit a doctor and then tell them how you should be treated. Your real estate agent will be able to add real value to the process and is an essential component in selling for more. Sure, you may not be able to do everything they suggest, but at least listen and consider suggestions your agent may have for the best way to present, market and sell your home.
Effective Habit #3: Be Available
YOU don’t necessarily have to be available to buyers interested in your home, but you do need to be flexible with inspection times. In fact, you should avoid staying inside the house while a buyer inspections. Buyer’s sometimes feel they cannot openly discuss concerns with your agent in your presence. Golden opportunities may there be lost. Should it be necessary for you to remain at home, be courteous but don’t force conversation with a potential buyer. The buyer wants to inspect your home – not pay a social call. However, should you be asked questions about the home, the neighbours or the area answer them.
At times you need to be able to vacate the premises with reasonable notice – and occasionally with unreasonable notice. Your home can not be sold if potential buyers can’t view it. “No inspections on weekends” or “Inspections only between 11:00am and 1:00pm on Thursdays and Fridays” won’t cut it.
Effective Habit #4: Be Smart
Understand the local real estate market. Understand the home selling process. Understand the buyers’ cycle (you may not be buying, but you want to understand what your potential buyers are dealing with).
Why understand all this? KNOWELDGE IS POWER!
How do you understand all this? Let your agent help you understand it. That’s what you’re paying them for.
Effective Habit #5: Invest in a Marketing Campaign
Choosing a marketing plan that ensures your home is exposed to the maximum number of buyers is critical to achieving the best price.
YOU CAN’T SELL A SECRET! This is a well-known saying in the real estate industry. In other words, a property may be immaculate, fresh and supremely interesting but if you don’t tell ‘the world’ you will struggle to sell for more.
Let’s now look at an effective marketing campaign.
Think about it…would you like the first buyer or the best buyer.
Effective Habit #6: Balance Emotion with Logic
Selling your home and all the things involved with the transaction can be very exciting, but many times it is an extremely stressful event.
Home sellers not only have to worry about their home remaining clean and available to buyers on a daily basis but they often have other important things that they could be doing to ready themselves for their move. It is also true that most Sellers have a tremendous amount of pride in their home and want to make certain that the marketing and eventual sale price are reflective of that pride.
The moment you list your home for sale, it just becomes a house on a shelf – 1 of many. You may not like what the market tells you but it will never lie to you. If you don’t have inspections you will very likely not receive any offers. If you have inspections and still don’t get any offers you must be prepared to adjust the price. Don’t take it personally.
The best homes remain unsold due to price!
Effective Habit #7: Don’t Be Afraid to Ask Questions
This is YOUR home you are trying to sell. You need to be comfortable with what is going on. If there is anything you don’t understand, ask your Real Estate Agent for clarification. Don’t be embarrassed about things you don’t know. You don’t sell a home every day. Most real estate terms and jargon aren’t important to you 99.9% of the time. But they are important now, and often agents tend to forget we frequently speak in a foreign language. There are no stupid questions. Ask.
The Bottom Line
These “seven habits” can help you through the home selling process. There is every chance your efforts will be rewarded with more buyers and the potential for buyers competing for your home, a faster sale and a better price. You will also be able to take comfort in the knowledge that you did your absolute best to influence the value of your home and your stress levels may be greatly reduced. It may also greatly reduce the stress levels of your real estate agent as well. That’s not a bad thing. People don’t like stress so anything that can be done to alleviate a stressful situation is a good thing.
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:
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.
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.
February 24, 2011 Leave a comment
First National Real Estate Lakeshores Principal, Mark Millington, has joined the voices calling for a reform of state taxes, particularly inefficient ones like stamp duty, saying it is proving too taxing for working families to pay.
“Stamp duty has become nothing more than governments gouging money from those who can least afford to pay – working Australian families,” Mark Millington said.
“Australia has already proven to one of the most expensive property markets in the world and excessive property taxes, like stamp duty, is making it incredibly difficult for new entrants to gain access to the market or for existing home owners to upgrade.”
According to two independent studies, the Demographia International Housing Affordability Survey 2011 and the Housing Industry Association’s most recent survey, residential property in Australia has become increasingly unaffordable.
According to Mark Millington, the situation with the Australian property market is becoming untenable and needs to be addressed at a national level.
“We have a chronic shortage of supply, worsening home affordability and an increasingly tight rental market, which could all be partially addressed with a more realistic approach to property taxes, such as stamp duty,” Mark Millington said.
“In some cases, the one home and land package, could be levied three times with stamp duty. I can’t think of another situation where the one item can be taxed three times.”
“The people who come off the worst in this situation are hard-working Australian families.”
Mark Millington said that at a time when rents are soaring, vacancy rates are tight and there is a shortage of supply, there is a real potential that more Australian families will be forced onto the streets – increasing homeless rates and welfare payments and further adding economic stress to the Australian economy.
“Serious consideration needs to be given to addressing the problems with the Australian property market if there is going to be hope for future Australians to realise home ownership dreams,” Mark Millington said.
“Plus, as the Henry Review points out, transaction taxes such as stamp duties reduce economic efficiency, either by discouraging turnover or being embedded in the cost of production, which just increases the problem.
“Inefficient property taxes including stamp duty are now the biggest single non-income tax generator of cash for Australian governments and the Commonwealth needs to act to reduce the states dependence on these taxes.
“An ideal opportunity presents itself at the federal tax summit which we expect to be held in the middle of this year – let’s just hope the governments don’t find the whole matter too taxing.”
Issued by: First National Real Estate
For further information, contact Mark Millington, Principal, First National Real Estate Lakeshores, on 02 4359 1555.
October 9, 2010 Leave a comment
Super Massive Comp
Throughout October, First National Real Estate is offering the chance for one lucky individual or family to update their home with $25,000 worth of brand new furniture and energy efficient appliances.
All entrants have to do is visit the First National Real Estate website, firstnational.com.au, follow the prompts, answer a couple of simple questions and submit their entry form to be in the running for the $25,000 home furnishings voucher.
‘Lots of First Home Buyers bought homes last year as a result of the stimulus package and many more Australian families are putting off the replacement of old, inefficient appliances. So, we thought we’d give one lucky family or individual a helping hand’ says Mark Millington, principal of First National Lakeshores.
First National Real Estate adopted an energy efficiency stance in 2009, providing its national network of offices with an Energy Efficiency Kit to assist its agents to reduce energy consumption in their offices and their customers’ homes.
‘An important part of the kit is a booklet printed on recycled paper that shows Australian homeowners and tenants how to lower their home’s energy bills’ says Mark Millington.
‘The book was so popular, our office soon ran out of copies but customers can still download a copy, or see all our energy efficiency and sustainability advice, by visiting firstnational.com.au/energyefficient’.
The website, booklets and brochures help people choose, and better use, more efficient appliances, solve design problems in older homes, and create more sustainable Australian native gardens.
To enter the competition, participants should visit www.lakeshores.com.au and follow the links to the Super Massive $25,000 Giveaway.
‘You can enter as many times as you like between 1 October 2010 and 31 October 2010. It’s that simple, there’s no skill required and all entrants have an equal chance to win’ says Mark Millington
March 22, 2010 5 Comments
Does Australia face a property bubble
For sometime, elements of the media have suggested Australian housing values are over-inflated and face the risk of a speculative housing bubble bursting. This theme arises in some European and US based reports, where an incomplete understanding of the Australian property market’s unique dynamics is evident. Australian media is not devoid of such reports, although they are far less prevalent.
Of course, there are reasons for concern. Many of the market’s indicators do underline the fact that things are getting hotter. Housing prices have been rising strongly this year, on the back of modest gains even last year. Auction clearance rates started strongly in 2010 and pre-auction sales are well up. The number of properties being sold has risen. Rents continue to rise, although slightly slower than expected, and vacancy rates are at their lowest point in the past twenty years.
Balancing the rapidly heating market though is a sharp drop in home loan approvals. To an extent, this is an expected result of the removal of the First Home Owners Grant Boost. With many having rushed to beat the phase out in December, there’s a natural adjustment occurring. However, this is also partly attributable to tightened credit conditions.
The set of fundamentals driving the Australian property market differ, though, from most international markets right now. Firstly, Australians are chiefly coastal dwellers. This is in total contrast to the European and United States property markets. We have a limited number of population centers and these attract the vast majority of our population, as a result of employment and lifestyle conditions.
Our political structure of Federal and State governance leads to another unique factor. The Federal Government has determined a policy whereby levels of immigration are set at their highest since WWII, generating significant demand for housing. This collides with an environment of under supply and a demonstrated State Government incapability to plan for appropriate land release and building approval processes.
Australia’s banks are more heavily regulated than those of other countries and the concept of ‘non-recourse’ lending that, in part, led to the sub-prime mortgage crisis in the United States, is simply not a feature of our marketplace. The economy has performed strongly and continues to do so as employment posts some of the strongest gains on record in recent times.
Banks, however, remain reluctant to resume lending for apartment developments and this is another factor constraining supply. As predicted in First National Real Estate’s Property Outlook 2010, investors have noticed the opportunity for capital gain in such an environment and this is where the Reserve Bank of Australia (RBA) observes some risk of speculation creating a bubble.
Research shows that basic variable interest rate movements of the past ten years have averaged 6.6 per cent. The last few RBA board meetings have all discussed the need for interest rates to return to ‘normal levels’ if the economy still shows signs of expansion. According to finance brokers Smartline, Australia is now only 0.60 per cent from the medium term average, as the chart above shows. RBA boss Glenn Stevens’ estimate is that it will take one or two 0.25 per cent increases in official interest rates to return to ‘normal’.
New home sales made an encouraging start to 2010, with sales of newly constructed homes jumping 10.1 per cent in January. Sales of new apartments also rose, but only by 4.1 per cent, following a 14.5 per cent rise in December 2009. However, while sales were up in January, building approvals fell 7 per cent so supply remains the never-ending challenge critical to avoiding a bubble.
One simple factor is clear. If State and Federal Governments cannot coordinate, at all levels, to solve land supply constraints, high levels of taxation on new housing, and, structural barriers, the strangulation of dwelling supply will leave the RBA with one option only to minimise the chance of a bubble bursting – suppressing demand by lifting rates further still.
