Property Market Outlook – Patchy But Signs of Recovery

February 10, 2011 Leave a comment

Deanne Lamprey, Principal, First National Real Estate Burnie expects the Tasmanian property market to consolidate in 2011, as waning consumer confidence due to job losses, mainly in the North West of Tasmania, and plentiful housing stocks, begin to stabilise house price growth.

“There is strong potential for growth in land prices, but this is dependent on the number of land releases in the state,” Deanne Lamprey said in First National’s 2011 Property Market Outlook released in January 2011.

“There is a steady supply at present, but building approvals are down as a result of an undersupply of builders locally.”

“There is also negative publicity on “head works” charged by the three water/sewerage authorities in Tasmania, which, if left unresolved, will definitely stifle development projects.”

According to Deanne Lamprey, vacancy rates may increase marginally by up to 1 per cent and weekly rentals upwards between 5 and 10 per cent as uncertainty of job prospects in some areas impact on confidence in purchasing, potentially placing an upward pressure on the rental market.

Movements in weekly rentals will be between 5 and 10 per cent in the main.

Any population growth for Tasmania, which has seen virtually none in the last few years, would impact the state’s property market significantly. The benefit of waving stamp duty or introducing concessions for the over 65’s age group could prove significant.

“To this end, the government should encourage tourism and more enterprise in regional areas in a bid to encourage population growth and employment opportunities,” Deanne said.

“The water/sewerage authorities need to rethink their obscene ‘head work’ charges that developers are absorbing – freeing them up to develop as they would like.”

Deanne Lamprey believes banks should be doing more to help keep the property market healthy and robust in 2011 and should consider abolishing mortgage exit fees and being more flexible with their loan products.

“Consumers would be the winners, as the major banks would need to be seen as more competitive with rates and may think twice about lifting rates above the RBA. However, there is the risk banks may try and be more creative with other consumer fees,” Deanne Lamprey said.

“They should also look at educating their customers about why they implement higher rate rises than the RBA and mortgage insurers need to be more flexible in lending requirements.”

Deanne Lamprey anticipates three additional interest rate increases which will have a negative impact on affordability as buyers’ borrowing capacity is reduced and may eat into what little equity some homeowners have – especially those who purchased in the ‘boom times’.

“Combine this with pressure on employment and we may still see a shift in values and turnover,” Deanne Lamprey said.

“Recent interest rate increases have already impacted on the property market, contributing to more of the higher priced properties coming into the market as families are looking to reduce their mortgage debts.”

Deanne Lamprey said Tasmania’s ongoing affordability will continue to prove too attractive for investors to ignore, however they may remain cautious due to future interest rate rises.

“They will however be fully aware that Tasmania is currently in the declining state of the real estate cycle,” Deanne Lamprey said.

Deanne believes widely anticipated electricity price hikes are expected to increase the number of buyers looking for energy efficient features as well as change the types of features they look for, especially in relation to heating and lighting.

Deanne Lamprey said 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.

“They should also consider reducing stamp duty and introducing stamp duty incentives for retirees, as well as rework stamp duty scales,” Deanne Lamprey said.

“These scales have remained the same for years in spite of the sharp increases in property prices over the last decade.”

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Elect for a New Lease on Property Life

August 24, 2010 3 Comments

Regardless of who wins the Federal Election later this week, now is the ideal time for those interested in investing in property to get on the bandwagon.  Strong rental yields coupled with good buying conditions are creating a perfect market for would-be investors to build their wealth through property.

There are many advantages to investing in property and at the start of a new financial year, when people’s minds are on tax, investors should look at capitalizing on the tax advantages in particular.  Property as an investment is also an excellent vehicle for generating income and capital gains and it is relatively low risk. There are a lot of ways for people to take the first step on the property investment ladder, such as buying with family, friends or work colleagues – it’s just a matter of being a little more creative and strategic in their thinking.

Investors are once again claiming the market space being vacated by first home buyers whose numbers are beginning to level out. So, now is the time to capitalize on market conditions before investor activity returns to normal levels and competition begins to heat up again. Existing home owners could consider using equity they have in their own home, or other investment properties.

 Over the last 12 months, rental yields have strengthened, vacancy rates have remained tight and there is an ongoing supply shortage in the face of strong and growing demand, especially as increasing interest rates erode housing affordability.

This general trend in the rental market is expected to continue for some time, and certainly for as long as neither party plans to do anything to effectively manage the supply versus demand equation. Regardless of the political outcome, property will remain a strong contender for the investment dollar.

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Immigration a key factor

July 29, 2010 Leave a comment

 

From today’s Burnie Advocate www.theadvocate.com.au

Politicians slashing immigration would also cut house values, a prominent real estate figure has warned.

First National Real Estate Burnie managing director Deanne Lamprey is unimpressed by Prime Minister Julia Gillard’s talk of a “sustainable population” and Liberal leader Tony Abbott’s plans to cut immigration.

“The Prime Minister’s refusal to outline what she sees as a sustainable population is causing uncertainty for the property market, which is substantially underpinned by the highest levels of immigration since World War 2,” she said.

“She doesn’t want to debate the overall size of the population, nor birth rates, and she said `this isn’t about immigration’.

“However, her broad statement that she does not want a `Big Australia’ means if she supports personal choice on birth rates, there’s really only one place she can go; cut immigration.”

Ms Lamprey said any substantial cut would see businesses seeking labour suffer and a fall in demand for housing.

“That, in turn, would likely lead to a much slower market and, ultimately, falling home values.

` … one of the major advantages that helped our country avoid the 40% collapse in home values in the UK and USA during the (global financial crisis) was our solid immigration intake.”

Mr Abbott wants to cap immigration under 170,000 a year. It hit 300,000 two years ago.

Ms Lamprey said he was the “lesser of two evils”.

“At least he’s stating his intent.

“But what no-one is talking about is the fact that government is one of the major barriers to increasing supply of housing.”

“Ineffectual planning and approvals processes are the major barriers to increasing supply, so it is governments that will continue to drive the market into the future.”

Ms Lamprey was also scathing about what she described as “scaremongering real estate analysts” who predicted a housing bubble burst or affordability crisis amid claims Australia had the world’s most overpriced property.

“The reality is that we probably have one of the best buyers’ markets at the moment and houses at some of the most affordable levels in decades.”

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First National Promotes A Will To Succeed

April 21, 2010 Leave a comment

First National Real Estate Burnie, Deanne Lamprey says under the recently introduced Intestacy Laws millions of Australians risk cheating their loved ones out of a fortune in property, if they neglect to implement the right type of asset protection. 

“Around 5 million Australians are currently without a will which means if they are part of a blended or molded family, the intended inheritors may find themselves out in the cold due to recent amendments to the Success Amendment (Intestacy) Bill 2009,” Deanne said. 

The legislative changes were driven by changes in our society, where families have become more complex, due mainly to the high number of divorces, second marriages and new de-factor relationships. 

Simply breaking up an estate on someone’s death and distributing it among surviving family does not necessarily provide the best outcomes for the family. 

Under the new legislation, spouses or partners of people who have not made Wills, will receive 100 per cent of their estate upon death and children will not benefit. 

So, in today’s increasing numbers of blended and molded families, this does not bode well for a lot of people and has the potential to leave a lot of distraught, unhappy family members behind, potentially resulting in hugely expensive and protracted court cases where no-one comes out a winner.

Having worked in the area for a number of years First National Real Estate Burnie,  has forged strong relationships with local financial planners who are able to help their clients with appropriate advice and support to ensure they have a Will to Succeed, where their legacy is left to the people they want.

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Child Proof Your Home

April 6, 2010 Leave a comment

Children are always at risk of injury, but never more so than in the family home.  According to Deanne Lamprey from First National Real Estate Burnie 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,” Deanne Lamprey 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 are 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,” Deanne Lamprey 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 toxic or poisons and lollies or biscuits.”

Download a copy of the Childproofing The Home from our website.

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Property Management a Billion Dollar Business

March 30, 2010 Leave a comment

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.” 

“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,” Deanne Lamprey 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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Deanne Goes to Texas Part 4

March 21, 2010 Leave a comment

1st session on the Monday was with David Nour, author of Relationship Economics and The Entrepreneur’s Guide to Raising Capital. He shared his insights on the art and science of building business through social networking. He spoke on the social media sites such as Facebook, Twitter and a few more and emphasized if used correctly, they can open incredible opportunities for business building and strengthening relationships with our clients. The top 5 social media sites are:

1. Facebook
2. Twitter
3. Linked In
4. Youtube
5. Slideshare.net

A selection of workshops were next on the agenda. I chose to sit in on “Poke, Buzz and Tweet: Social networking that Pays. Email marketing and automated telephone systems move over, there’s a new way to build client loyalty and gain business. With more than 1 in 5 people accessing Facebook alone in a given month, social networking has become a serious marketing medium. The old adage, “it’s not what you know, it’s who you know” has gone digital.

This session was about viral eMarketing tools such as blogging, social networking, podcasting and YouTube which are undeniably hot right now in the Unites States, and we have had access to for some time but are becoming more popular in Australia amongst real estate agents.

2.0 tools are all the rage in the U.S at the moment: TIP: Once a day update your status on Facebook. Write on 3 people’s wall daily.

For the second session I thought the topic “Great Recruiters Use proven Tools” was a good idea – we’re don’t always get it right when recruiting new salespeople. Unfortunately no relevance to me whatsoever.

Funny talking to people and when they ask “where are you from” and I reply with Australia (dare not mention Tasmania I would have confused them more) they have assumed that I have relocated here! When they realize I am only visiting they reply with “I have heard Australia is a great place, must visit some time!”

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