Duty Of All To Abolish Taxes

May 9, 2012 Leave a comment

In the light of the federal budget, which has just been handed down, First National Real Estate says the government should have delivered on the GST promise of abolishing stamp duty and that home buyers should also do their bit to support the Australian property market. 

Australia’s soft property market will continue to tread water unless major changes are made.  We need more new housing stock to come onto the market, indirect costs to be reduced, inefficient taxes such as stamp duty to be abolished – preferably all three. 

And  while HECS-like schemes are commendable for assisting home buyers to pay their stamp duty obligations, it should be a matter of reducing, or better still, getting rid of stamp duty altogether and that falls on everyone’s shoulders. 

 A struggling property market affects all Australians, as it is a key driver of the nation’s economy and represents a burden for all to share.  This is why home buyers should do their bit and continue to put pressure on governments to live up to their GST promises. 

Property taxes are reducing home buyers’ ability to purchase new homes, whether they are first home buyers, upgraders, downsizers or investors. 

Last year, stamp duty accounted for 37% of total property related taxes in Australia and the reliance of Governments on property taxes to boost their coffers should have lessened over time with the introduction of the GST, but the opposite trend seems to be occurring. 

Nationally, stamp duty has risen, due mainly to increases in NSW and Victoria according to industry figures.  And yet, property taxes were cut in WA and NT, and government revenues actually increased. 

What seems to be happening is that stamp duty is putting new homes beyond the reach of many, so fewer homes are selling overall, reducing revenue raised through these taxes to governments. 

Making home ownership too taxing is a short-sighted and quick grab for cash by governments and should be ‘stamped out’ as soon as possible so that everyone can achieve their home ownership goals.

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New Homes To Drive Property Market

March 29, 2012 2 Comments

The New Homes Building sector may provide a solution to Australia’s sluggish start to the property market for 2012, especially if associated regulatory and government taxes were reduced.

As a key barometer for the health of the domestic economy, and often a driver for first home buyer activity, the new home building sector needs more than just low interest rates to sustain improvements in conditions. Something needs to be done at the policy level.

An industry report released in February this year showed a decline of 7.3 per cent in seasonally adjusted new home sales in January, with Victoria experiencing the sharpest decline of 19.6 per cent.

The report also showed a decline in detached house sales for NSW and SA as well, which further weakened results, but strengthened the case for government action.

A real opportunity exists for governments to set the new home building agenda and look at policy reform that will reduce new home building taxes.

Up until now, both state and federal governments have relied on Victoria to prop up this segment of the Australian market, but the results show they can no longer do that. It is up to governments to show leadership and do something.

Policy reform, especially reducing taxes and costs for home building would have a multiplier effect. It would attract people in a financial position to build a new home, and have the knock on effect of increasing economic activity through jobs and sales activity.

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Trends in Property – What’s APP-ropriate

March 21, 2012 Leave a comment

Click here to download the First National Real Estate App

First National Real Estate cautions buyers and sellers to make sure they know the most app-ropriate new technologies that best suits their needs. 

Consumers crave information because it gives them power, control and improved certainty over their purchase decisions, and new technologies will make this even easier, especially the advent of Point-Know-Buy (PKB) technology. 

PKB will reshape consumers’ information expectations, search behaviour and purchasing patterns, which is why it is crucial consumers understand how it works whether they are interested in buying or selling property. 

PKB enables consumers to access information about objects they encounter in the real world while on the go, simply by pointing their smartphone or similar device at anything they are interested in. 

It effectively links images to any available information about that picture, which means a buyer can be out and about, perhaps at a display home or open house, point at a prospective piece of real estate and access any available information about it just by pointing their phone. 

First National Real Estate already uses mobile technology to its fullest advantage through various Apps which give consumers greater control. 

One of its Apps will instantly add a customer’s wish list to a database which will highlight properties that are suitable matches.  Another demonstrates to home sellers the impact on the number of potential buyers if a selling price is too high. Its mobile Apps allow agents to demonstrate, using a sliding scale, how many buyers are waiting on a database for their home, based on their asking price. 

Mobile Apps also allow First National to offer superior property management services for both landlords and tenants through an application that adds a tenant to a database at inspections and another one that enables First National to provide a much more thorough and efficient condition reporting tool for landlords.

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Should you invest in Australian property?

March 19, 2012 1 Comment

The decision to rent or buy is always a big one. The traditional strategy of buying a first house and then moving up to the ideal home as your income and equity grows is fast being replaced by the initial purchase of an investment property. However, the alternative of renting indefinitely while you save to buy is becoming equally difficult because of escalating rents and an historic squeeze on vacancies.

If you’ve wondered whether you’re ahead by renting or better off buying, consider these statistics.

  • The median net wealth of a renting household is $55,265 whereas homeowners have nine times as much – $487,183
  • Renters comprise 28.7 per cent of the nation’s households but have only 6.3 per cent of the nation’s wealth
  • Australians who own their home are worth 13 times more than renters – $734,394

So, despite arguments to the contrary that emerge from time to time, real estate ownership has made the average Australian second only to Swiss residents as the wealthiest in the world.

So how do you take the step from renting to buying your first home?

  1. Approach the market with a sound five-year plan. Get into the market, pay down the mortgage, and establish equity in the home as a basis for long-term financial security and flexibility.
  2. Budget for extras. As well as a solid deposit, have money set aside to cover insurance, routine maintenance costs and to meet mortgage payments for several months if something goes wrong.
  3. Don’t worry about the market. Your focus should be on building a deposit while looking for the property that matches your lifestyle and budget.
  4. Compromise. Your perfect home is likely to be out of reach for now, so focus on hunting down a property that has solid real estate attributes – good location, off-street parking, security, quality finishes and proximity to restaurants and transport. Choose something that will suit your needs for the next five years or so while you build up equity and prepare for the next phase of home ownership.

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Do I really need Landlord insurance?

March 13, 2012 Leave a comment

Not all tenants are bad, but you do need to make sure you are covered should something go wrong. While most tenants take good care of the proper they are leasing, those that don’t may intentionally cause extensive damage. Intentional damage is not covered by many standard home insurance policies nor is the failure to pay rent.

The valuable common features of a Landlord Insurance policy include:

• Malicious or intentional damage to the property by the tenant or their guests
• Theft by the tenant or their guests
• Loss of rent if the tenant defaults on their payments
• Liability, including for a claim against you by the tenant, and
• Legal expenses incurred in taking action against a tenant.

It’s important to remember that not all landlord protection policies are the same. Some, for instance, are designed to be used in addition to a typical home and contents or strata title policy while others are more comprehensive.

Some policies allow cover for the contents of the property. This is particularly important if you rent a partially or fully furnished property. Speak to your First National Burnie Property Manager and they will be able to help you find the right policy.

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Is it worth making your property more energy efficient?

March 12, 2012 1 Comment

Do you want to make your home more environmentally friendly but are not sure where to start, or whether it’s even worthwhile?

Green credentials are now a stronger selling point for a property than ever before and there’s little doubt buyers are motivated by green investments you may have made in your home. Even just small eco-improvements around your home will benefit the environment and increase your home’s value.

Making such changes is one of the easiest ways you can boost your asking price or make your property more appealing. As well as reducing your impact on the environment, you’ll save money on utility bills.

Although you may feel overwhelmed by the deluge of information about climate change, energy issues and savings, to the point that you don’t quite know where to start, there are many ways to make positive changes for a minimal cost in terms of dollars and time.

First National Real Estate Burnie’s 10 tips for creating a greener household include:

  1. Install a triple A-rated showerhead and a dual flush toilet to cut your water usage. If you rent your home, consider adding a 1.25 litre PET bottle filled with water to your toilet cistern to reduce the tank’s capacity.
  2. Replace standard globes with energy efficient (compact fluorescent) light bulbs.
  3. Install a water tank to use rainwater on the garden. In some homes, this can halve water usage and deliver a greener, more attractive garden during summer.
  4. Have your home’s insulation checked – walls and ceilings may need a top-up. Good insulation can save up to 55 per cent of heating and cooling costs.
  5. Repair the trim around windows and doors to prevent drafts and heat loss.
  6. When replacing old or cracked windows use double-glazed glass. It provides better insulation for heat and noise, while acting as a deterrent to burglars due to its strength.
  7. Use solar powered outdoor lights to illuminate your pathways and garden at night.
  8. Install ceiling fans. They’re far more energy efficient than air conditioners but will provide a cooling air-flow on hot summer days.
  9. Think long-term and plant deciduous trees in areas that let the sun in during winter and provide shade in summer.
  10. Start a compost heap to minimise waste sent to landfill, and provide your garden with a great source of nutrients.

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Tenant’s insurance, is it important?

March 7, 2012 Leave a comment

You might not be aware but if you’re planning on leasing a property and sharing it with friends, don’t expect your insurance company to be all that thrilled with the prospect of covering your prized collection of DVDs. You see, although two’s company, three’s a crowd from an insurer’s perspective.

Evidently the actuaries who spend their lives crunching numbers and managing risk have worked out that while more may be merrier, the security of your personal belongings is statistically reduced.

So, what to do when the insurance company says no? Talk to your First National Burnie property manager of course! They will put you in contact with First National’s insurance alliance partner who has a policy that’s perfectly designed for you and your buddies. Your contents can be covered for a down to earth, reasonable premium that won’t break the bank.

That’s what we’re about at First National Burnie, We put you first.

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Renting the family home; Should it be treated differently?

March 6, 2012 Leave a comment

We’re all emotionally attached to the family home so making the decision to rent it out can be fraught with difficulty for some. Letting go can sometimes be a hard thing to do but homeowners across the board need to treat their home just as they would an investment bought specifically for rental purposes.

Even though it’s your private residence, you’re now the landlord so you should consider having the property professionally cleaned to set the standard as well as future expectations for the incoming tenant.

Landlords who demonstrate their personal high standard of cleanliness usually find their tenants respect the property, returning it in the same condition when they leave.

This also applies to the condition of the interior and exterior of the home. Setting a high standard of living and comfort can make all the difference because the longer a tenant stays, the less wear & tear on the property.

Your Property Manager can put you in contact with professional cleaners and qualified tradespeople and can even arrange quotes in most cases.

Ultimately, renting your family home shouldn’t cause any great concern. Properly prepared and presented, then managed carefully by First National Real Estate Burnie, you can expect to attract tenants who’ll care for it as much as you do.

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Men are from the garage, Women the kitchen…

March 5, 2012 Leave a comment

Women believe they put more importance on the kitchen when hunting for a home compared to men, First National Real Estate’s survey of women and property shows.

As well, women feel the bathroom and the size and number of bedrooms are a higher priority for them than men when buying a home. Women are also more likely to rate proximity to friends and family as extremely or very important. But expect men to be checking whether a home has a garage or a workshop – more men than women say these would be a priority when buying a home:

The survey, of 1,207 Australians (603 male and 604 female), looked at key factors influencing home purchase decisions as well as differences between men and women. Respondents were asked to rate the importance of a range of features that would influence their selection of a home. Overall:

  • 73 per cent said having a garage would be extremely or very important;
  • 71 per cent said the quality of the kitchen; the home having water saving systems or equipment, such as a grey water recycling system or rain water tank, was considered extremely or very important by 67 per cent of respondents;
  • 65 per cent said the quality of the bathroom; and
  • 56 per cent said a low maintenance garden or courtyard.
  • At the bottom of the list were: the home having good potential to improve or renovate (38 per cent), proximity to friends and family (36 per cent) and the home having a security alarm system (31 per cent).

But when couples were asked what things they believe they would prioritise more than their partner, clear gender differences emerged.

  • Far more women (28 per cent) placed a greater emphasis on the kitchen than men (three per cent);
  • Women also said they would place a greater emphasis on the bathroom – 17 per cent compared to two per cent of men);
  • 10 per cent of men said the garage or the size of the garage would be a priority, compared to four per cent of women and the same number nominated a shed or a workshop, compared to only one per cent of women;
  • 43 per cent of women compared to only 28 per cent of men said proximity to friends and family is an extremely or very important factor and 46 per cent said proximity to where people in the household work was extremely or very important, compared to 36 per cent of men;
  • Women seem more environmentally aware than men – 72 per cent said water saving systems would be an important feature, compared to 63 per cent of men.

And despite becoming an important buying power in the property market, some women say they are still discriminated against. Thirty four per cent of female home owners said they had experienced gender discrimination from tradespeople around the home and 25 per cent said they had experienced it from real estate agents. Only 11 per cent said they had been discriminated against by their mortgage lender.

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The $50,000 Cash Drop Has Landed…

March 1, 2012 Leave a comment

Would you like to win a share of $50,000 in First National’s $50,000 Cash Drop competition?

Just buy or sell a property through First National Real Burnie, rent a home from us, or allow us to manage your investment property and we’ll automatically enter you for a chance to win one of five $10,000 cash prizes.

The competition starts on 1 March 2012 and runs until 31 August 2012.  Head to our website for full details, terms and conditions.

Apart from the fact you might win $10,000, there are plenty of other reasons to consider doing business with us.

First National Real Estate is Australia’s leading network. Our systems, marketing techniques, quality assurance and professional development programmes have been designed to maximise your advantage when it comes to selling your property.

We offer industry leading buyer-matching technologies to reduce the amount of time it takes to sell. Our websites are unrivalled and we employ one of Australia’s most effective strategies to attract more online views of your property.

Shouldn’t you be dealing with First National?

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