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.

Filed under Market Opinion Tagged with , , , , , , ,

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?

Filed under Competitions Tagged with , , , , , , , , , , ,

First National Supports Rates Decision

February 9, 2012 1 Comment

First National Real Estate says RBA’s decision to keep interest rates on hold is the right one because the market needs stability to counter ongoing consumer nervousness and tension.

The network’s members have reported drops in listing volumes for the second month in a row, which, in part, reflects home owners waiting for selling conditions to improve before they put their properties on the market but also reflects seasonal factors.

While the market remains slow in much of Australia, decreases in housing availability will begin to place upward pressure on prices as it increases competition, ultimately reducing the number of days it takes to sell a home.

Home buying opportunities, even with the rates remaining steady, were still considered plentiful as interest rates are still relatively low and home prices are at their most affordable for quite a number of years – which all bodes well for a property market looking for signs of stability and recovery.

Any rate decreases could have further added to consumer nervousness, which is still suffering from uncertainty around global economies and impacts of rising living costs, especially with the advent of the carbon tax.

At the same time, an increase now could result in reduced affordability, something first home buyers in particular can ill-afford at a time when some of the government assistance schemes are being cut back or dropped altogether.

Home buyers are encouraged to negotiate better rates with mortgage lenders including the Big 4 banks who are all on record as saying they are willing to discuss rates with home buyers in order to retain their share of the market, giving buyers a real position of power.

A calm approach is exactly what is needed right now to allow the property market to catch its breath and stabilise activity, so it can prepare for the next wave of influencing factors. This falls right into the hands of home buyers who should be able to secure the best deals they have for many years.

Filed under Market Opinion Tagged with , , , , , , , ,

Burnie Property Outlook 2012

January 15, 2012 1 Comment

The Burnie property market will be bolstered by renewed interest in 2012, as home buyers stop marking time, after waiting through 2011 for prime buying conditions to arrive.

In the last six months, the market has been falling due to a lack of confidence in the economy and with state government policies, but this is expected to steady in 2012.

With current economic uncertainty, state budget cuts and rising unemployment dampening confidence, house sales and new housing construction will remain slow, with prices generally remaining flat.

It is expected that extended selling periods will be seen and that values will remain under pressure until the region’s economic prospects improve.

The key challenges facing the region’s property market in 2012 will be ongoing low consumer confidence due to State Government budget cuts to health, education and police.  Stamp duty concessions for first homebuyers ceased in the middle of 2011 and this will continue to impact on first homebuyers entering the market, as they will need to save a larger deposit.

The government also announced in the budget, that spikes in property land taxes will be smoothed out with a reduction in the valuation cycle from 6 years to 3 years.  Cost of living increases, such as rising water/sewerage charges and electricity prices, will continue to negate any gains made from high affordability levels.

Market Conditions

Buyer confidence will improve in 2012 on the back of decreasing sentiment in the last half of 2011.  Confidence has been at the mercy of local market conditions and into 2012, interest rates will be more of a key influencing factor.

Residential Market

Property Prices

Property prices in Burnie are expected to remain relatively flat across all sectors although there is potential for some upward movement of below 1 per cent, depending on what happens with interest rates.

A large choice of available properties for purchase in the local Burnie area will continue to ease pressure on prices.

Land prices may be sensitive to any decline in building approvals and an oversupply of land in some areas.

Rental Market

2012 could see an easing in rental vacancies, of up to 1 per cent, and moderating rental growth.

Rental markets in areas where job losses are being experienced may experience further easing of rental prices and some price drops in weekly rents will be due to people leaving areas in search of employment. This could lead to an oversupply of rental properties.

So, weekly rental prices will remain relatively flat in those regions, with the potential of some decreases of up to 1 per cent. 

Growth

Any increases in investor activity are expected to be up to 5 per cent in the main, as economic uncertainty continues to play a role in investment behaviour and purchase decisions.  Any potential increases will only be if investors are able to purchase positively geared properties.

The upgrader segment is expected to produce the strongest growth in 2012, as buyers seize the opportunity to capitalise on greater affordability and the possibility of lower interest rates, which are expected to further decrease by between 0.5 and 0.75 per cent.

While interest rate cuts may increase activity slightly in Burnie, the real benefit will be any relief it provides to home owners who are facing large increases in their day-to-day living expenses.

Changing Market Conditions

The introduction of the carbon tax is expected to further reduce confidence in the state economy and the government that runs it.

Commercial Property Market

Tasmania is currently outperforming all other major office markets and it will continue to set the pace until at least the first half of 2012.

Filed under Market Opinion Tagged with , , , , , , , , , ,

What’s the best way to combat mould in your home?

November 17, 2011 Leave a comment

Unsightly, unhealthy and unwelcome...
Unsightly, unhealthy and unwelcome…

Mould spores are always present in the air around us which is why it is so important to keep your home properly ventilated.

As simple plants belonging to the fungi group, these tiny aviators need moisture in the air and are always on the lookout for a nice enclosed area in your home where ventilation is poor. That’s why cupboards and wardrobes often present the ideal moisture and temperature combination for mould and mildew to thrive.

To combat mould, you need to reduce moisture levels, consider insulation and increase ventilation.

Ideally, start by opening the windows to create cross ventilation regularly. This is the most energy efficient and inexpensive approach. Too cold? Alright, but open the windows just a little. Remember, the important thing is to keep air moving.

Next, check what’s going on with insulation. Insulation prevents heat loss from walls and ceilings, thereby keeping a room warmer. When the walls and ceiling are warmer, moisture is less likely to condense on these surfaces, so your home is kept dryer.

Alternatively, another common method is to use an electric dehumidifyer. Most hardware and department stores can recommend the appropriately sized unit for your affected room.

Other areas that mould and mildew really enjoy are closets and the clothes they contain. As moulds grow they cause considerable damage. Mildew secretes an enzyme that decomposes organic matter and uses it for growth and reproduction. It often leaves a musty odour in clothes and causes unsightly black stains and rot.

One well-tested and successful method is to place a small low wattage electric light globe, say between 40 and 60 watts. The dry heat prevents mildew and mould growth although this can be expensive.

Many people prefer to buy chemical dehumidifyers such as ‘Damp Rid’ and ‘Closet Camel’ at the supermarket or hardware store. These small plastic buckets contain refillable mineral salts that absorb moisture, collecting it below in a small reservoir that you need to empty periodically.

Filed under Real Estate Tips Tagged with , , , , , , , , , , , , ,

Warm Up Winter Buyers

June 28, 2011 Leave a comment

Selling your home is nerve-racking at best but there are some things a seller can do to maximise the value of their property, even when the weather is cold and things look a bit dull and gray.

The most important tip is to appoint a well-respected, reputable and trustworthy real estate agent because they 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 on current market trends.  

Agents are encouraged to think creatively and strategically to shorten the number of days properties are on the market and maximize the price of the property, including updating photography, being positive and upbeat, using all the marketing tools such as social media and networks, and making sure the seller sets the right price. 

Here are a few things sellers can easily undertake and afford to present their properties in the best possible light: 

  • Paint a few feature walls to create visual impact.  Consider using the services of an interior decorator for a quick consultation and some ideas.
  • Add a few personal touches like family photos and memorabilia around the place to give that ‘homey’ feel
  • Keep lights on during inspections to add an interesting touch and make sure curtains, shutters and blinds are open – letting in as much natural light as possible as well as make rooms feel much more spacious.
  • Make sure everything is clean including windows, both inside and out and light fittings.
  • Place some flowers in vases to liven things up a bit, and even consider spraying some perfume around (but not too much!)
  • Turn on heaters so that the temperature inside the home is comfortable, inviting the buyer to linger longer, especially on cold days. 

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, sellers 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. That’s what First National Real Estate does – they think of their clients and put them first, because that’s what they would like if they were clients.

Filed under Real Estate Tips Tagged with , , , , , , , , , , , , ,

First National Real Estate – Everybody Everyday

June 9, 2011 Leave a comment

Filed under First National Burnie News Tagged with , , , , ,

First National Bucks Industry Stance

April 21, 2011 Leave a comment

First National Real Estate CEO, Ray Ellis, disagrees that stamp duties should be replaced with a broadening land tax or any other tax – saying it should just be abolished. 

It has long been recognised that stamp duty as a tax is inefficient and a complete rort, so, while it is obvious it needs to go, it should not be replaced with some other tax. 

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. 

More than a decade on, we are still being burdened with stamp duty and it seems the industry is now being portrayed in the media as willing to settle for replacing the duty, instead of having it abolished altogether. 

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. 

A recent article said the OECD supported the rationalisation of state and government taxes, particularly stamp duty on house sales. 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. 

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.  Get rid of stamp duty altogether.

Filed under Market Opinion Tagged with , , , , , , , ,

First National Says Stamp Duty Too Taxing

February 24, 2011 Leave a comment

A reform of state taxes is being called for by First National, particularly inefficient ones like stamp duty which is proving too taxing for working families to pay.

Stamp duty is nothing more than governments gouging money from those who can least afford to pay – working Australian families.

We are already proven to be 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.

The situation with the Australian property market is becoming untenable and needs to be addressed at a national level.

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.

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.

Filed under Market Opinion Tagged with , , , , ,

First National Foundation Australian Floods Appeal

January 11, 2011 Leave a comment

First National Foundation Floods Appeal

First National Real Estate has launched a fundraising appeal through the First National Foundation, pledging that all funds raised will go to Australian Red Cross Emergency Services in support of people affected by the Queensland and Western Australian floods.

First National Foundation is committed to the support of Australian Red Cross Emergency Services and, through the fundraising efforts of First National Real Estate agents nationally, has already donated over $1 million towards the preparation of Australian communities for natural disasters such as those currently being experienced.

Funds donated provide real assistance on the ground such as helping Red Cross Emergency Services to coordinate the National Registration and Enquiry System that assists families, friends and relatives to locate each other.

3,919 people have already used the NRIS system currently being operated by Red Cross in Queensland. Red Cross is also assisting with recovery in Bundaberg, Dalby, Warwick, Chinchilla, Emerald and is on standby to provide additional support where necessary.

Red Cross is also distributing practical resources and useful tips to help Queenslanders and begin cleaning up after floods. The ‘Cleaning Up After Flooding’ booklet helps households start the process, both practically and emotionally, but with a firm eye on safety.

Donations can be made to First National Foundation’s Australian Floods Appeal by visiting http://bit.ly/eMz3LQ

Issued by: First National Real Estate

For further information contact National Communications Manager, Stewart Bunn from First National Real Estate on 1800 032 332

Filed under First National Burnie News Tagged with , , , , , , , , , , ,

← Older posts

Follow

Get every new post delivered to your Inbox.