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Relocations drive exponential growth

Relocations drive exponential growth
First National Real Estate

First National Real Estate will continue its support of the Regional Victoria Living Expo, which it believes will be bigger and better than in 2012.

“Last year, the first Expo attracted crowds of more than 8,000 people over the weekend, and based on the feedback we have been receiving this year, we think even more people will visit the event,” First National Real Estate Chief Executive, Mr Ray Ellis said.

“We received many follow-up calls last year from Melburnians seeking to relocate to regional Victoria, and we were able to assist quite a few to successfully relocate over that time.”

Take Carrum Downs couple, Peter and Jenny, who inspected a property in Hamilton Park through First National Garry Nash in Wangaratta. They attended the Expo where they met Principal Garry Nash and talked about their situation and aspirations for a stress-free lifestyle.

“I helped Peter and Jenny list their Carrum Downs property with my colleagues at First National Finning in Cranbourne, and then assisted them to purchase a regional block of land in Eldorado in north-east Victoria,” Mr Nash said.

“It's a similar story with another couple, John & Julie, from Mordialloc who have now listed their home with First National Phillips Nicholson and I am helping them with their search for a rural property around Wangaratta.

“That's the benefit of events like the Regional Victoria Living Expo. It affords home buyers and sellers the opportunity to do all their research under the one roof in a simple, more streamlined process.”

According to Mr Ellis, regional cities across Victoria are currently experiencing price growth twice as fast compared to five years ago.

“The growth rate for prices in regional cities including Ballarat, Bendigo, Geelong, Horsham, Latrobe, Mildura, Shepparton, Wangaratta, Warrnambool and Wodonga jumped from 0.8 per cent between 1991 and 2006 to 1.6 per cent between 2006 and 2011,” Mr Ellis said.

“And if we achieve the type of response at this year's Expo as we did last year, more Australians will look to relocate, bringing even further gains to property prices in regional areas.

“We received in excess of 300 registrations over the course of the weekend last year, and following the Expo received further enquiry, nationally, from people wanting information about the various incentives and grants on offer from state governments nationwide. The beauty of the First National network is that we have independent owners happy to work together and help clients all across the country. So as Australians change their views towards regional relocation, we can help.

“As our population grows and the infrastructure of our cities is stretched, more Australians are contemplating the benefits of our regions.”

That seems to be the case for a couple who bought a property in Drouin through Anthony Clark of First National Clark in Warragul.

“I have worked with this couple since Expo last year and while they are not making the move from Melbourne immediately, it won't be long before they are enjoying a new lifestyle in the Gippsland region,” Mr Clark said.

The Regional Victoria Living Expo sponsored by First National Real Estate returns to the Melbourne Convention & Exhibition Centre from 19-21 April 2013, showcasing the outstanding opportunities available in regional and rural Victoria.

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Issued by: First National Real Estate

First National says 'unsocial' hours a necessity

First National says 'unsocial' hours a necessity
First National Real Estate

ederal Legislation currently being considered could cost the Australian economy millions of dollars in lost productivity if implemented in the real estate industry according to First National Real Estate, Chief Executive, Mr Ray Ellis.

The Fair Work Amendment Bill 2013 (the Bill), which is currently being considered by the Senate Education, Employment and Workplace Relations Committee, proposes among other things: the need to provide additional remuneration for employees working overtime; unsocial, irregular or unpredictable hours; working on weekends or public holidays; or working shifts.

“ The Fair Work Amendment Bill 2013 operates on the basis that everyone should or wants to work during the day, during the week. While in many industries this is true, it is not true of the real estate industry. Its impact would be devastating, not just to the industry, but to the economy as a whole” Mr Ellis said.

Most real estate businesses work their staff in rosters so they can cover the necessary night and weekend work needed to provide their services to the public. “Staff are attracted to the industry because it favours entrepreneurship, it rewards those ready to work hard. Everyone employed by a good employer knows the hours before they sign an agreement,” argues Mr Ellis, “this is a law protecting people who want to work regular hours and within rigid guidelines and regulations and does nothing for those who choose to work flexibly and think outside the square”.

But the real cost of this type of legislation would be felt in the economy at large, and paid by the average citizen. The first and most obvious cost will be increased wages which will need to be paid for by increases in fees. “Housing affordability is a major issue in this country but this legislation would see an immediate increase in agency fees. This will slow down housing sales at a time when we can ill afford it,” Mr Ellis said.

The hidden cost will be in the number of agencies who will alter or reduce their working hours in order to avoid the extra cost. The vast majority of property transactions in this country are individuals making private transactions, so they need to inspect, sign a lease, buy and sell properties in their own time.

“Imagine if everyone who inspected a house or negotiated a sale or purchase had to do so during standard working hours,” said Mr Ellis, “the housing sector would grind to a halt but also every other business would find people asking for time off to go and talk to the real estate agent, it would be a nightmare. The economy needs real estate agents to work nights and weekends so that everyone else does not have to,” Mr Ellis said. “This is an industry that thrives on flexibility and entrepreneurship, these are not people attracted by the ordinary working week and Australia does not need to pay for it.”

Mr Ellis is the first independent director to be appointed to the Board of the Real Estate Institute of Australia.

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Issued by: First National Real Estate

For further information contact: Stewart Bunn, National Communications Manager, First National Real Estate, on 0413 624 317

First National's 3 tips to stave off winter bill chills

First National's 3 tips to stave off winter bill chills
First National Real Estate

Gas and electricity prices are on the rise, fuelling the flames of discontent for many home owners. With the onset of winter, First National Real Estate offers advice that will warm the cockles of homeowners' hearts, while keeping 'bill chills' at bay.

“Recent inflation figures show electricity prices have increased by over 16 per cent a year and gas has risen around 11 per cent a year,” First National Real Estate CEO, Mr Ray Ellis said.

“And power usage increases as the warm days of summer turn cooler over the winter months.

“But there are some simple steps that can be taken to keep the family warm and cosy in winter, without costing the earth.”

In winter, a typical Australian household consumes around 2700 kWh of energy, an increase of about 7 per cent over other seasons and, for every one degree increase in home temperature in winter, energy use increases by 15 per cent. So it is prudent to look for ways to reduce consumption and avoid the shock of rising energy bills.

According to Mr Ellis, 'conserve, seal and deal' are three principles to remember when looking to reduce energy bills.

CONSERVE energy use by turning down thermostats on heaters by one or two degrees and maintain room temperatures between 18 and 21 degrees. Each degree lower can decrease heating costs by up to 10 per cent. Energy use can also be lowered if lights are turned off when rooms are empty, compact fluorescent lamps are installed (which use around 80 per cent less energy than incandescent bulbs and last around 10 times longer) and appliances such as computers and televisions are turned off at the wall whenever possible. Standby power can account for up to 10 per cent of total power bills.

SEAL up any air leaks around the home, which can raise energy bills by allowing heat to escape outside. Install draught seals and weather stripping around doors and windows and repair faulty seals. Insulation will also help retain heat during winter - homes insulated to the recommended levels can potentially save 5 to 25 per cent on heating and cooling costs.

DEAL - look at using or installing energy efficient appliances where practical. Great deals are offered towards the end of the financial year or before the weather fully turns. Using major appliances, such as washing machines, dishwashers or dryers at bed-time and other low energy use times of the day will also produce better deals on power bills.

“Australian cities are consistently being featured among the most expensive cities in the world to live, but that doesn't mean home owners shouldn't be vigilant in looking for ways to make their lives more affordable,” Mr Ellis said.

First National Real Estate joins Red Cross Calling

First National Real Estate joins Red Cross Calling
First National Real Estate

March heralds a significant event on the fundraising calendar, the Red Cross Calling appeal which, this year, will be joined by Australia's premier real estate network, First National Real Estate.

Through its philanthropic arm, First National Foundation, First National members will open their doors and hearts, and ask local communities to do the same.

“Red Cross works tirelessly to improve the lives of vulnerable people by mobilizing the power of humanity, which it has been doing for 60 years through this campaign,” First National Real Estate, Chief Executive, Mr Ray Ellis said.

“As members of the many communities that have benefited from these efforts, we feel privileged to be able to give back in any way we can.

“Participating members of the network will be actively promoting the Red Cross Calling appeal and all monies raised will go straight into the humanitarian organisation's coffers, so they can continue the great work they do on an everyday basis.”

To date, First National Foundation has contributed more than $1.2 million to the worthy work of Red Cross. Through its activities during Red Cross Calling, the network hopes to significantly increase that figure.

“It is terrific to be involved in a campaign where we get back as much as we give,” Mr Ellis said.

“I know our members enjoy the spirit of giving and the social returns they get go beyond the tangible.

“Nothing is more gratifying than the satisfaction you achieve from knowing you are helping someone in their time of need, and that includes Red Cross.”

Extend, build or subdivide and conquer

Extend, build or subdivide and conquer
First National Real Estate

A solution to housing affordability may rest with the humble home extension, age-old granny flat, or dual occupancy says First National Real. It's just a matter of which will best suit each home owner's individual circumstances.

“A combination of increasing demand, the ongoing shortage of supply, an aging population and a slow but gradually improving property market is forcing many home owners to consider any option that provides flexible working solutions to house their families ,” First National Real Estate CEO, Mr Ray Ellis said.

“The best of these is granny flats. You can extend or subdivide, depending on the problem needing to be addressed.”

Mr Ellis said, “Granny flats are ideal for those needing a space of their own, like elderly parents or Gen Y children who are still at home.

“If rented out, they can also represent a great source of additional income in these challenging economic times,” Mr Ellis said.

“Plus, if the granny flat provides extra space, greater flexibility and more living areas to a dwelling, it's likely to add appeal and value in most markets, just as an extension will.

“But to assure added value, any extension or granny flat should be designed in keeping with the home.”

Mr Ellis said, there was also another option for maximising the financial potential of a home, which is often overlooked, but may prove especially beneficial for asset rich, but cash poor landowners.

“Dual living, or dual occupancy through subdividing the existing dwelling or land, offers a host of advantages not afforded through an extension or granny flat. However, this option needs to take into account a number of additional considerations,” Mr Ellis said.

“It means going through the planning application process and is more expensive, but the end result is a separately titled, saleable asset.”

Whichever option is chosen, Mr Ellis cautions homeowners to seek the advice of an accredited builder, or local council, before proceeding. Regulations regarding construction and occupancy vary in each state and from council to council.

“Authorities are able to advise on the various aspects and rules that apply to the size and positioning of the building on the land, as well as title registrations and rates payments,” Mr Ellis said.

“Advice should also be sought from a financial advisor for tax implications of building, and real estate agents for advice on renting a second dwelling as well as any value it may add to the overall property.”

First National's Victorian & Tasmanian GEM Awards winners sparkle

First National's Victorian & Tasmanian GEM Awards winners sparkle
First National Real Estate

First National Real Estate's Victorian and Tasmanian members were presented with their General Excellence and Marketing (GEM) Awards on Saturday night, in a fun filled evening featuring a Carnivale theme, at Melbourne's Grand Hyatt hotel.

The gala evening celebrated the best of the state's real estate performances over the past year which, according to First National Real Estate Victorian Chairman, Garry Nash has not been without significant challenges for the profession.

“Last year continued to be a slow market for property on the back of the previous two years which were fraught with economic turmoil and natural disasters, but our members showed their mettle, meeting conditions head on with fortitude and optimism,” Mr Nash said.

“They continued to put their clients first and now, with the market slowly starting to turn, they are beginning to see the results of their hard work and effort.

“These Awards are a recognition of that hard work, and tireless spirit to ensure they do their best at all times.”

On the night the Top 10 Offices in the state were named and included:

First National Real Estate Tweed Sutherland, Bendigo - Vic/Tas Office of the Year
First National Real Estate Collie & Tierney, Mildura
First National Real Estate King & Heath, Bairnsdale
First National Real Estate Garry Nash, Wangaratta
First National Real Estate Clark, Warragul
First National Real Estate Waverley City, Glen Waverley
First National Real Estate Dawes & Milne, Frankston
First National Real Estate Neilson Partners, Berwick
First National Real Estate Treeby, Ringwood
First National Real Estate Westwood, Werribee

Melbourne CBD agency, First National Real Estate City Residential won the Property Management Team of the Year Award.

Individuals were also recognised with the Top 10 Salespeople being:

Sarah Carey, First National Real Estate Carey, Lara
Matt Leonard, First National Real Estate Tweed Sutherland, Bendigo
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Rob Westwood, First National Real Estate Westwood, Werribee
Andrew Milne, First National Real Estate Dawes & Milne, Frankston
Frank Barrett, First National Real Estate, Finning, Cranbourne
Andrew Kerr, First National Real Estate Neil Kerr, Cobram
Darryn O'Keefe, First National Real Estate Tweed Sutherland, Bendigo
Joan Carter, First National Real Estate King & Heath, Paynesville
Shufang Zhao, First National Real Estate Waverley City, Glen Waverley
Jamie Maynard, First National Real Estate Wodonga

Vanessa deGregorio of First National Real Estate Neilson Partners, Narre Warren was named Property Manager of the Year. Susan Bussell, from First National Real Estate O'Meara Kennedy, Yarrawonga and Jonathon O'Donoghue from First National Real Estate O'Donoghues, Hawthorn East were named Property Manager Rookie of the Year and Sales Rookie of the Year, respectively.

Mr Nash said the First National Awards are an important event as they present an opportunity for members to come together and share their thoughts and views on the industry and events that affect them, such as the recent disasters across Australia.

“During trying times like the recent floods, cyclones and bushfires, our members band together and help each other and their clients where they can, but it is often only through these types of social networking events that they are able to come face to face with each other,” Mr Nash said.

“It is this spirit of “we are all in it together” that sets us apart from our competitors, which is why we continue to support our communities with fundraising and sponsorship opportunities and events.”
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Members at the Crowne Plaza Coogee Bay

First National Real Estate's New South Wales and ACT members were presented with their General Excellence and Marketing (GEM) Awards on Saturday night, in a fun filled evening featuring a Carnivale theme, at Sydney's Crowne Plaza Coogee Beach.

The gala evening celebrated the best of the state's real estate performances over the past year which, according to State Chairman, Mark Millington has not been without significant challenges for the profession.

“They continued to put their clients first and now, with the market slowly starting to turn, they are beginning to see the results of their hard work and effort.

“These Awards are a recognition of that hard work, and tireless spirit to ensure they do their best at all times.”

On the night the Top 10 Offices in the state were named and included:

First National Real Estate Byron Bay - NSW/ACT Office of the Year
First National Real Estate Port Macquarie
First National Real Estate Coffs Coast, Coffs Harbour Jetty
First National Real Estate Walsh & Sullivan, Baulkham Hills
First National Real Estate Rydalmere
First National Real Estate Daystar, Padstow
First National Real Estate Carlingford
First National Real Estate Epping Central, Epping
First National Real Estate O'Connor, Wollongong
First National Real Estate Wal Murray & Co, Lismore

North Narrabeen agency, First National Real Estate Rod Jones won the Property Management Team of the Year Award.

Individuals were also recognised with the Top 10 Salespeople being:

Deborah O'Brien, First National Real Estate Homeway, Castle Hill
Michael Sleiman, First National Real Estate Daystar, Padstow
Ricky Ho, First National Real Estate Rydalmere
Allison Mifsud, First National Real Estate Epping Central
Jason Crouch, First National Real Estate, Max Bailey, Singleton
Daniel Godoy, First National Real Estate Carlingford
Scott Henry, First National Real Estate Holgate, Lane Cove
Michael Alexander, First National Real Estate Michael Alexander, Harrington Park
Ron Fischer, First National Real Estate Port Macquarie
Graeme Paddock, First National Real Estate Leumeah United, Leumeah
Karen Joseph of First National Real Estate Manly Vale was named Property Manager of the Year. Kate Stephenson, from First National Real Estate Coogee and Paul Crinis from First National Real Estate Gerard
Smith, Picton were named Property Manager Rookie of the Year and Sales Rookie of the Year, respectively.

Mr Millington said the First National Awards are an important event as they present an opportunity for members to come together and share their thoughts and views on the industry and events that affect them, such as the recent disasters across Australia.

First National has landlords covered

First National has landlords covered
First National Real Estate

Australians continue to invest in property as a proven path to long-term financial security and the summer months bring increased rental relocation activity, particularly in the early months of the new year. However, many landlords and property investors neglect to protect their valuable asset by taking out appropriate insurance cover.

“It is important for landlords to realise the cover they need should extend beyond the normal building insurance policy, which does not cover things like willful damage to their property, failure to pay rent, or claims made against them by their tenant,” First National Real Estate CEO, Mr Ray Ellis said.

“Summer is always a busy time in the rental market as tenants find it more convenient to move at the start of the school year, and, the holiday letting market also produces increased interest.

“Landlord protection policies differ widely, but at First National Real Estate we can help landlords find the right insurance policy for them. Some, for instance, are designed to be used in conjunction with a typical home and contents or strata title policy, while others are more comprehensive. We also help our tenants find contents insurance, which can be challenging for those living in a shared household.”

According to industry research, less than half of all self-managing landlords have specific landlord insurance, even though three out of five recognise a bond is not sufficient to cover most incidents with tenants.

Landlords who use real estate agents to manage their relationship with tenants face fewer problems than those who self-manage their investment properties.

“At First National Real Estate we manage properties on behalf of clients on an ongoing basis,” Mr Ellis said.

“We make sure appropriate rental agreements are in place, screen potential tenants and check their references, regularly inspect properties and ensure maximum returns are achieved for each of our rental properties.

“We have leading edge systems and best practice procedures in place to ensure vacant properties are marketed correctly, and maintained in optimal rental condition.

“We can provide clients with documentation to support tax depreciation claims and arrange regular value appraisals and asset management reports to maximise their investment potential.

“In essence, we put you first by making sure you and your investment are properly covered, and, that your tenants are kept happy in a properly maintained home.”

First National Gets Redi for Disasters

First National Gets Redi for Disasters
First National Real Estate

First National Real Estate, through the First National Foundation, has joined the Red Cross in its appeal for all Australians to be prepared for a disaster as part of the inaugural Red

Cross Disaster Preparedness Week, being run from 17-21 September.

“Australia is prone to disasters of all kinds, especially over the Summer and wet seasons, which is why it is critical that people make the effort to protect what is probably the biggest
financial commitment they make in their lives, their homes,” National Communications Manager, Stewart Bunn said.

“Not to mention the emotional attachment they have developed for many of the personal and sentimental items housed inside.

“As agents, we see what home owners go through to purchase a home, and we believe it is an essential that we involve ourselves in any means available to help them protect it.

“Which is why we value our partnership with the Red Cross so much. It affords us the opportunity to give back to the communities where we live and work, as well as be involved in activities that can make a huge difference to our clients.”

All our staff at First National Real Estate are being encouraged to review their own REDiplans, and assist clients where they can to do the same during the national week.

“This is exactly the type of thing the First National Foundation has been set up for. To support communities across Australia where it is needed,” Mr Bunn said.

“Preparedness Week is designed to focus attention on this piece of strategic asset protection planning which has the potential to affect all Australians.

“Red Cross has made it easy with a range of resources built around helping people to be better prepared to reduce the impacts of an emergency such as bushfires, flooding, cyclones and hurricanes.

“Despite so many large scale disasters in Australia in recent years, people still believe it won't happen to them, and a week like this brings home just how vulnerable everyone is.

“Disasters don't discriminate, and nor does First National Foundation. The only way to protect yourself and minimise the impact of a disaster is to be ready by making sure you have an appropriate plan in place.

“Let us put you first and help you prepare for a disaster.”

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Issued by: First National Real Estate

For further information contact:

Stewart Bunn, National Communications Manager,First National Real Estate on 1800 032 332

First Home Ownership Dreams Building

First Home Ownership Dreams Building
First National Real Estate

Current market conditions are bringing home ownership dreams closer for many first home buyers and First National Real Estate CEO, Mr Ray Ellis says building a new home may be their best option.

“The housing sector of the construction industry continues to lag, so first home buyers should look at taking advantage of the various state government initiatives designed to get it moving,” Mr Ellis said.

“First home owners are in the prime position of being able to lead negotiations and builders keen to work should be willing to come to the party.

“Combine this with the government grants in each state to support new builds and first home buyers may find themselves in their own homes sooner than they ever thought possible.”

Recent statistics from the Australian Industry Group and Housing Industry Association show there has been a decline across all sectors of the construction industry, but a greater decline in houses and apartments.

“While this represents bad news for the construction industry, it puts first home owners in the driver's seat to secure better prices, making a new home build much more realistic, especially given the escalating up-front headworks and development charges,” Mr Ellis said.

“But, anyone looking at building a new home should make sure they research thoroughly and ensure contracts cover everything involved in the construction process. It's particularly important to be warey of variations clauses.

“Too often we see the situation where a first home buyer has enthusiastically entered into a contract only to find the contract or their budget did not cover all items. Then they are left to find additional funding for the 'surprises' they discover along the way.”

First National Real Estate recommends first home buyers access the information guides available from government departments, respected bodies such as Archicentre, and independent building information centres.

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Issued by: First National Real Estate
For further information contact: Stewart Bunn, National Communications Manager, First National Real Estate, on 0413 624 317

First National launches national bushfire appeal

First National launches national bushfire appeal
First National Real Estate

The First National Real Estate network, through the First National Foundation, has launched a national bushfire appeal and joins the Red Cross in its appeal for all Australians to dig deep and donate to assist those who have been directly affected by the recent spate of bushfires across the country.

“Australia is prone to disasters of all kinds, especially over the summer and wet seasons, which is why we are urging everyone to give generously and support those communities most in need,” Mr Simon O'Donoghue, Chairman, First National Foundation said.

“Our members have always been involved with the support of their local communities and, over the past six years, the First National Foundation has donated more than $2,200,000 to the Australian Red Cross as a result of our fundraising efforts.

“People know that when they donate through First National Foundation, their donation will reach the people who need it most from individuals, families and farmers, right through to the community level.”

Thousands of people across Australia have been affected by bushfires with many suffering untold losses including their homes, pets, livestock, sentimental and personal effects, and in some cases, their livelihoods as well.

“At times like these, when communities are threatened by natural disasters, we redouble our fundraising efforts through the Foundation, which donates to the Australian Red Cross and its assistance to Australians in disaster preparation, response and recovery,” Mr O'Donoghue said.

“Even today, as the nation faces one of the worst fire-prone seasons in decades with the current heat wave conditions, the money we have raised in the past is still being used to assist those areas affected by some of the most devastating disasters in Australia's history.

“Many of these people are the ones that we have helped to purchase their homes, or move into a new one and we feel their need as much as if it were our own.

“This is why we value our partnership with the Red Cross. It affords us the opportunity to give back to the communities where we live and work, as well as be involved in activities that can make a huge difference to our clients.”

First National Real Estate sponsors Perth Wildcats NBL basketball team

First National Real Estate sponsors Perth Wildcats NBL basketball team
First National Real Estate

Australia's largest independent real estate network, First National Real Estate, is proud to announce its official naming rights sponsorship of Western Australia's National Basketball League (NBL) team, Perth Wildcats.

The one-year sponsorship agreement will see the multi championship winning Wildcats helping First National Real Estate provide professional development to their team of more than 350 staff across the 25 West Australian First National offices.

This substantial six-figure sponsorship will provide First National with prominent logo positioning on the coaching and support staff apparel, game night venue signage, access to Wildcat players for professional development as well as a range of other marketing and promotional opportunities throughout the season.

Chairman of First National Real Estate in West Australia, Mr Cambell Giles, said “As with the Wildcats, our agents train hard to remain at the forefront in real estate and, as a result of our sponsorship, our salespeople, property managers and administrators will gain access to the Wildcats' head coach, Rob Beveridge, for training and inspiration.”

Perth Wildcats' managing director Nick Marvin commented on the partnership, saying it was a great union of two organisations that work in the community in a very real way.

“First National's sponsorship of our coaches is a significant investment in the development of basketball talent at all levels in Western Australia. We hope we can reciprocate through increased branding visibility and sharing of successful practices and insights from the court.”

The Perth Wildcats' first home game of the 2012/13 NBL season is scheduled at the new Perth Arena against arch-rivals Adelaide 36ers on Friday November 16.

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Issued by First National Real Estate
For further information:
Cambell Giles: Western Australia Chairman
First National Real Estate Midland on 9274 5033 or 0418 936 544

First National Foundation calls for donations to Tasmanian Bushfire Appeal

First National Foundation calls for donations to Tasmanian Bushfire Appeal
First National Real Estate

First National members have always been generously involved with the support of their local communities.

At times like these, when communities are threatened by natural disasters, we redouble our fundraising efforts for the First National Foundation - which donates to Australian Red Cross and its assistance to Australians in disaster preparation, response and recovery.

The First National Foundation was established to maximise the benefits of our member fundraising throughout the community, nationally.

It has donated more than $2,200,000.00 to Australian Red Cross over the past 6 years - the result of our members and staffs fundraising efforts.

Australian Red Cross continues to work with communities in the two to five year recovery process following a major disaster. They are still very active in supporting communities which have been affected by some of the most devastating disasters in Australia's history, including those affected by the 2009 Victorian Bushfires, 2011 Queensland, Central New South Wales and Victorian Floods and this year's Tasmanian Bushfires.

First National Foundation is now accepting donations in support of Tasmanians who have been affected by the current spate of fires. 100% of your donation will reach the people who need it most when donating through First National Foundation.

Donations can be made at First National Foundation supporting offices. Click here for a list of locations. We thank you for your support.

Rent your investment property

Rent your investment property
First National Real Estate

The currently tight rental market and approaching summer holiday letting season means there should be no shortage of would-be renters, but First National Real Estate National
Communications Manager, Mr Stewart Bunn, says it may not be straightforward to find the right tenant and get the best rental price.

“The beginning and end of summer, as well as the holiday period, often produces larger numbers of people looking to change where they live. Investors need to make sure their rental properties are in ship-shape if they want to attract quality tenants and maximise their returns,” Mr Bunn said.

“It also helps to appoint a property manager who knows how maintain the property's tenancy at the highest possible rent and who will manage the home as though it were their own.”
Mr Bunn said First National Real Estate offers the ideal combination of professionalism, experience and commitment to manage properties.

“Our systems and processes underpin the strength of our agency and the property management services we deliver,” Mr Bunn said.

“Property management at First National is more than just collecting rent or striking a deal on fees, we assist in the selection of quality tenants, ensure timely rental payments, look for opportunities to increase your returns, and minimise vacancies.

“We strive to help our landlords maximise the benefits of investment property ownership by using the latest technologies and pride ourselves on getting the best results in the shortest time.”

According to Mr Bunn, First National has 10 steps to success for property management

Accurate appraisal of a property's rental potential.
Presenting the property in its best light to maximise returns.
Advertising and marketing to ensure maximum exposure through First National's industry leading website, major real estate web-portals, eMagazines, social media and the network's exclusive, award-winning tenant alert database.
Accompanied tenant viewings to highlight special features and benefits of renting a First National managed property.
Receiving offers and making the process as efficient as possible.
Tenant selection following comprehensive screening and reference checks.
Preparing relevant documentation and advising tenants of their obligations and outlining conduct expectations.
Completing a thorough property condition report prior to the tenant moving into the property.
Management services to ensure peace of mind, steady income, regular property condition checks, qualified maintenance and 24/7 emergency repairs.
Completion.

First National Real Estate manages over 90,000 investment properties throughout the cities and regional centres of Australia and New Zealand, meaning the network offers some of the most experienced property managers in the country.

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Issued by: First National Real Estate

For further information contact:
Stewart Bunn, National Communications Manager, First National Real Estate, on
0413 624 317

First National says pools make nice beds for bugs

First National says pools make nice beds for bugs
First National Real Estate

The cold winter months are behind us and as the weather starts to warm up, so too does the propensity for pools to become breeding grounds for bugs.

First National Real Estate National Communications Manager, Mr Stewart Bunn says recent research showed that 96 per cent of Australian pools take a dive in health during the cooler months, leading to a build up of harmful bacteria which could affect the health of those swimming in it.

“Untreated pools can cause real harm to family and friends with the increased levels of microorganisms, algae and bacteria posing serious health risks like diarrhoea, ear infections and eye and skin irritations,” Mr Bunn said.

“Out of more than 1000 pool water samples recently taken across the country, just four per cent of pools showed a healthy pH balance and only one in five were properly chlorinated.

“Pool owners, including tenants leasing properties with pools, should take the time now to check their pools so that they can enjoy them safely throughout the warm summer months.”

Mr Bunn said using the services of a professional technician, such as the pool and spa care experts at PoolWerx, to conduct regular water health and safety checks is sensible and frugal.

“Expert services are far more affordable than it would be to seek help once the water has turned 'green' from flourishing bacteria,” Mr Bunn said.

“Not to mention the reduced emotional stress and costs associated with a loved-one, friend or tenant becoming sick through infected pool water.”

First National Real Estate offers these top five tips for early-season pool maintenance to ensure pools are healthy and ready for summer:

    Check the pool equipment to ensure it is in property running order.
    Ensure the pH level is within healthy levels.
    Make sure chlorine levels are adequate to disinfect all microorganisms.
    Vacuum and skim the pool regularly.
    Organize a regular professional check up.

“Now is also a good time to check the pool's compliance with state laws and regulations,” Mr Bunn said.

“Each state and territory in Australia has laws governing pool safety that all pool owners and operators must comply with.

“So, make sure you stay safe this summer and can swim with free abandon.”

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Issued by: First National Real Estate

For further information contact:

Stewart Bunn, National Communications Manager, First National Real Estate, on

0413 624 317

Which is best - renovate or buy?

Which is best - renovate or buy?
First National Real Estate

Current buyers' market conditions may be weakening, as a result of continued Reserve Bank interest rates cuts, but before making the decision to become a home owner or trade up, consider all your options carefully and make sure you are doing the right thing - it may prove prudent to renovate, says First National Real Estate National Communications Manager, Mr Stewart Bunn.

“There is no doubt there are some great buying opportunities at the moment with low interest rates and steadying property prices, but for some, renovating may offer more benefits,” Mr Bunn said.

“A granny flat, extension, or updating the home to the way you have always dreamed may be more cost effective and allow you to stay in the area you have come to love and appreciate.”

Mr Bunn said there are myriad reasons why the current home may no longer be meeting the needs of the home owner including they need more space, their circumstances have changed or they just want a change of scenery.

“But whatever the reasons are, the ongoing uncertainty in domestic and international economies may make renovating more attractive, so my advice would be to weigh up the options, make a list of pro's and con's, and look at what your future needs might be,” Mr Bunn said.

According to Mr Bunn, the top things to consider are budget, location, time and space.

Budget: there are inherently costs associated with both options. Renovating is more susceptible to budget blowouts, but the hidden and add-on costs for buying a new home such as stamp duty, conveyancing and removalists can make it much more expensive. A careful and detailed budget plan will help you weigh up the costs involved in both options.

Location: consider whether you want to continue living in the area, or is there somewhere else you would prefer to call home? Also, take the neighbours into account. For many, relationships are forged with neighbours, and it is important whether you stay or move that you can see yourself getting along with your neighbours.

Time: what time constraints do you have? Finding the right property that will suit all your current and future needs will take time, as will renovating. Often, house-hunters are required to compromise in some way, but the home renovator should be able to do exactly as they set out to do and have had approved by the relevant authorities.

Space: make sure there is enough room to make the improvements you want, if you are looking to renovate. If you are going to buy, consider whether you will need to make any further alteration, either now to ensure the new property can accommodate your current needs, or some time in the future to adopt for your changing circumstances. Asking an architect or builder to inspect the property with you can be of enormous benefit.

“Also, if you are looking at renovating, it is easy to let emotions override practicalities, so it is important to make sure you get the right advice to ensure you don't overcapitalise,” Mr Bunn warned.

“A very basic rule of thumb when renovating is to never spend more than 25 per cent of the value of your home.

“But before any final decision is made, look at the real estate market and get an appraisal on your house and look at prices of houses that appeal to you.

“Even consider asking a First National Real Estate agent for advice. We can often help determine what the best choice is for you and your family by showing new properties and comparing them to what you love and dislike about your current home.”

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Issued by: First National Real Estate

For further information contact:

Stewart Bunn, National Communications Manager, First National Real Estate, on 1800 032 332

First National grows market share

First National grows market share
First National Real Estate

First National Real Estate has grown its market share to third largest in Australia, according to a recent IBISWorld 'Real Estate Agents in Australia' report.

The report considers the industry's performance since the GFC and highlights the challenges major networks have faced in retaining or growing their memberships in recent years.

'First National Real Estate is recognised by consumers as the innovator in Australian real estate brands. Our membership is comprised of progressive agents who embrace change, technology and the idea that success can only be achieved through the delivery of a quality customer experience' said Chief Executive, Ray Ellis.

'Since 2005, the network's mantra 'we put you first' has informed our reasoning in everything that we do, and the message is cutting through. Consumers know that our agents are working hard to deliver what they want, when they want it, while giving them more control.

'First National has the systems, brand and strategy to support its members' with tools that engage community and deliver better customer outcomes. As a result, we are witnessing across the board market share growth'.

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Issued by: First National Real Estate

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

First Home Buyers Get a Jump on Spring

First Home Buyers Get a Jump on Spring
First National Real Estate

All the signs are there that first home buyers are springing into action, even though in most states they are facing reducing government assistance. Stewart Bunn, National Communications Manager, First National Real Estate offers some helpful advice for those entering the market, saying research is critical.

“As we predicted in our Property Market Outlook Mid Year Update, the second half of 2012 is shaping up to see increased buyer activity and it seems that prime market conditions are proving irresistible for the first home buyer,” Mr Bunn said.

“Improved affordability with low interest rates and relatively low property prices is serving to offset any negative impact where government incentives have been reduced.

“And given it is currently a buyer's market, it means first home buyers can take the time they need to do the research required to ensure they buy the best property they can for their hard-earned dollars.”

According to Mr Bunn first home buyers should keep in mind the following tips to maximise their chances of a successful outcome:

When Looking for a Property

Set a price range and stick to it
Identify a suburb with properties within your price range
Consider geographical elements such as proximity to schools, transport and amenities
Take into account condition of the property - does it need major repairs? Do you have money in the budget? Etc.
Before purchasing, arrange for building and pest inspections by suitably qualified professionals such as builders, surveyors or architects
Have the contract reviewed by a conveyancer or solicitor
Take your time until you find the right place for you - there's no place like home and it should feel like it
Look at as many properties in your price range as you can

Saving for a Property - getting together a deposit is all about discipline

Put aside an 'emergency fund'
Take advantage of any government incentives such as the Federal Government's First Home Saver Account scheme and Grants
Establish a budget - work out what you spend, where and when and then see where you can make savings
Set a timeframe, complete with milestones, to keep you on track and you can monitor your progress. This becomes a self-motivational tool as well
This will also help lending institutions determine what you can afford to pay back in monthly repayments

Securing Your Finance - do the research and understand all your options

Don't get emotional. There's always another property on the market
Consider established versus new, especially in terms of house and land packages, which may be more financially viable when you look at all the costs involved versus grants available
Factor in rates and maintenance costs as well as the mortgage
When looking at home loans, check the ongoing payments, especially in the fine print, for monthly service fees and other charges

Paying the mortgage

Make fortnightly payments which will save thousands on the mortgage
Be prepared for monthly repayments to go up and down in response to rate fluctuations

“The last piece of advice, but what I believe is the best, is to seek the assistance of an expert who has good local knowledge and has a trustworthy and reliable reputation,” Mr Bunn said. “At First National Real Estate, we are renowned for putting our customers first which is why we continue to grow at a time when many others are scaling back.”

'Agents awakening' drives growth at First National

'Agents awakening' drives growth at First National
First National Real Estate
First National Real Estate is growing at its fastest rate in recent years with the cooperative network adding over 30 new offices in the past 12 months.

The network today reported its historic appeal to independent agents has shifted and much of its growth is now the result of franchise agents switching networks.

Chief Executive, Ray Ellis, attributes this paradigm shift to the huge investment First National Real Estate has made in proprietary technologies, its new brand, and its corporate revival.

'First National began as a cooperative marketing group three decades ago and, as we celebrate our 30th Anniversary, the future has never looked brighter' he said.

First National faced serious challenges, ten years ago, as a result of an aging brand and limited technology. The network made a radical departure from its former management methods, going back to its cooperative roots to determine settings for a new path and an assured future.

'The Board of Directors is enthusiastic about the successful brand re-launch three years ago and implementation of a raft of new technologies' said Mr Ellis.

'By investing in the ideas of our most talented members, we've driven new levels of innovation and rolled out new member benefits at the fastest pace in the network's history.

'We are once again a direct competitor to the largest franchises in Australia and the gloves are off. We've long proved that our SEO strategy leads the industry and, in simple terms, that means we drive more business to our members' doors' said Mr Ellis.

'However, now that agents across the country are recognising just how much First National has evolved, our performance is being very closely watched. We've been the cause of some very high profile defections from our competitors and this has shaken their sense of entitlement and security'.

Principal of First National Coffs Coast, Barry Booth, joined First National Real Estate after 28 years with LJ Hooker in 2011. Having achieved 'Admiral' status within LJ Hooker, Mr Booth was one of the group's leading agents.

Last week, Mr Booth reported to First National that, as well as being extremely satisfied with the network's support services, his business had achieved its two primary goals under the First National brand - maintaining profitability and increasing market share.

'Realestate.com.au, through its Diamond Subscription, provides market share statistics for all postcodes. It's a comprehensive reporting system where agents can review their local ranking on listings and sales performance. The information is there for everyone to see and confirms our growth under the First National Real Estate brand' said Mr Booth.

Despite tough market conditions and an oversupply of local competitors in Coffs Harbour, First National Coffs Coast reports a 4 per cent increase in market share in 2012 and is ranked number one by realestate.com.au.

'The continued growth of the First National brand, and the awakening of agents such as myself to its value proposition, will continue to motivate good business owners to review the equity of their current branding agreements with the major franchise companies' said Mr Booth.

'An integral part of maintaining our profitability has been the elimination of very substantial franchise fees to LJ Hooker.

'The First National formula is a winning one and offers outstanding value for money. The training, the support team, the personal development courses and the technology leads the industry, and, is provided at a fraction of the cost charged by LJ Hooker and others.

'We're proud to trade under the First National brand and are grateful for the opportunity to be part of the First National community' said Mr Booth.

First National is experiencing strong growth throughout New South Wales but has also seen 300 per cent growth across its metropolitan network in Melbourne. South Australia has seen significant gains and in Western Australia, the group has also returned to growth.

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

6 August 2012

Negotiating Your Way In A Buyer's Market

Negotiating Your Way In A Buyer's Market
First National Real Estate

Stewart Bunn, National Communications Manager, First National Real Estate says achieving the best price in the current buyer's market is tricky for sellers, but offers some negotiation advice that may help.

“Selling or buying a property represents one of the biggest financial transactions in a person's lifetime, and achieving the right price is difficult in normal circumstances, let alone when the market favours one over the other,” Mr Bunn said.

“But there are some things that can be taken into consideration when negotiating that will make all the difference.

“First and foremost, vendors selling in a buyer's market must carefully and realistically assess their price expectations, making sure they position their property competitively against others so they can meet market demand.

“It is also wise to remember that when you are dealing with buyers, they have feelings and emotions, just like you.”

Mr Bunn's top 10 negotiation tips, include:

Remember the concept of win-win. Both parties need to feel that there has been give and take on both sides of the negotiation.
Do it quickly. A protracted, drawn out negotiation process can cost thousands in the wash up.
Get the price right. Overpriced properties deter home buyers from making offers.
Respect the other side. Understanding and empathising with the other side can be a very powerful tool in negotiating and helps establish rapport.
Offers should be in writing. This helps avoid misunderstandings and additional stress.
Be willing to compromise. Never reject a first offer out of hand. Focus on the top priorities and don't let emotions overrule sensible judgement. Always make a counter-offer and be careful not to make unreasonable demands or issue ultimatums.
Set your limits. Know what your absolute bottom line is, and stick to it.
Be prepared to walk away. This may mean the property gets taken off the market.
Be realistic and flexible. Settlement terms and deposits are negotiable on any sale and agreement will depend on what each side is willing to be flexible on. It may mean meeting half-way, which is a time-honoured negotiation strategy that has proven very successful in countless negotiations.
Ask for advice. Real estate professionals are trained in negotiation and have the local knowledge and expertise to help achieve a realistic price for a property.

“At the end of the day, the negotiation process has to be conducive to achieving the best possible outcome for both parties. By listening to the advice of your agent and being prepared to accept input concerning what to say and when, better than expected outcomes can be achieved” Mr Bunn said.

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Issued by: First National Real Estate

For further information contact:

Stewart Bunn, National Communications Manager, First National Real Estate, on 0413 624 317

Making Homes Age-Smart

Making Homes Age-Smart
First National Real Estate

As today's Baby Boomers approach retirement, they are faced with the age-old dilemma of what their housing aspirations are. Their needs are changing and so too should their living accommodation.

First National Real Estate says this is an increasingly important challenge for Australia's property market to come to terms with.

“As children move out and nests become empty, homeowners are considering many facets of their post-working lives, including whether to sell up or downsize,” Mr Ray Ellis, CEO First National Real Estate said.

“They need to look at whether they want a tree change, sea change or 'local change', where they are able to remain in the same area, but in a different style of accommodation such as a nearby apartment or townhouse, or make alterations to their existing large family home.”

“But no matter what they decide, they need to make sure that their living quarters will suit their changing needs as they progress through their senior years.”

According to Mr Ellis, when looking to buy a house or apartment, or updating the existing home, seniors should take into account certain safety measures.

Inside the home:
- corridors, door frames and turning areas should be able to accommodate a walking frame, wheelchair or mobile-assisted device
- door and cupboard handles should be easily grasped and at a manageable height
- in multi-storey homes, at least one bedroom and one bathroom should be located on the ground floor
- the bathroom should be large enough to fit a wheelchair or walking frame, and be able to have railings fitted for easy access into and out of baths and toilets
- bench heights in laundries and kitchens should be appropriate for potential disabled access
- stairs, thick carpets and other incidentals that could impede mobility or be easily tripped upon should be avoided.

Outside the home, the site and topography should be considered. If it is too hilly, steep, or has steps, it will be difficult for elderly people to manoeuvre. Car parking should also be on a flat area with easy access to the front door as well as a porch to protect from the elements, and if possible, no stairs.

“It is a good idea for anyone looking at serviceable accommodation for their retirement years to seek the advice of an expert, either building or disability, who can inspect the property and ensure it is suitable for any future changes that may be required,” Mr Ellis said.

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Issued by: First National Real Estate

For further information contact:
Stewart Bunn, National Communications Manager, First National Real Estate, on 0413 624 317

Property Market Slowly Trending Upward

Property Market Slowly Trending Upward
First National Real Estate

The Australian property market is set to improve in the second half of 2012, with signs emerging that it may already be on the upswing in many states. However, any recovery is expected to be gradual, according to the First National Real Estate 2012 Property Market Outlook Mid-Year Update.

The Update, released this week, is based on a survey of the 400+ member network and provides an insight on what member agents expect the market to do, drawing on their experience at a grass roots level.

“There is an overall sense of optimism among our members that the current prime buying conditions will stimulate activity in the property market in the coming six months,” Mr Ray Ellis, CEO First National Real Estate, said.

“There are many positive signs already that the market has turned a corner in some areas, however, any recovery will be slow and gradual.”

Mr Ellis said some states were in a better position for recovery than others, given the impact of the GFC on their property markets.

“NSW prices fell during the GFC, so they are in an ideal position to bounce back quite quickly and that is what our agents are saying they will do,” Mr Ellis said.

“However, interest rates, buyer confidence levels, the global economy and lower levels of new listings will be the key influencing factors for the state over the next six months.

“Interest rates, confidence, the economy and job security will be the major influencing factors for Queensland's market, which is generally also expected to improve.

“As will the Western Australia property market, which will also benefit from the onset of planned infrastructure projects and better buying conditions.

“In South Australia, the market should begin to rise, after steadying in the first half of the year and sales activity is already strengthening.

“Tasmania and Victoria are the states where recovery could take a little longer. Tasmania's market is still suffering with low levels of confidence in the state's economy. Rising unemployment levels is leading to a higher number of properties coming onto the market.

“Victoria's property market held up quite well during the GFC, so it has to experience some decline as the market plays catch up with the rest of the country, although some parts of Victoria are already stabilising and are primed to turn at any moment.”

According to the Update, the Northern Territory is a bit of a mixed bag with Alice Springs expected to contract further in the second half of the year, while Darwin will strengthen and improve.

The Update goes on to say the strongest growth will come from the upgrader and investor sectors, for all states except Western Australia, where first home buyers are expected to be in the best position to capitalise on bargain properties.

However, weak consumer sentiment and nervousness around job security may keep the housing market soft and any recovery slow and gradual.

Property prices should stabilise, with some upswings, however weak consumer sentiment will remain a barrier to a full-speed recovery in dwelling values.

The rental market is expected to continue performing well for the remainder of 2012, with high rents and lower home values contributing to higher rental yields.

Interest rates are expected to reduce further, adding to improving affordability levels, and stimulating activity in the slow property market, however more support is still required.

“Healthy supply rates run at about 200,000 homes for sale at any given time and Australia currently has 301,414 homes for sale,” Mr Ellis said. “Even a 1% or 2% drop in interest rates is unlikely to make an impact on their saleability unless it is combined with sharp market pricing and aggressive marketing.”

The rising unemployment and increasing living expenses, including the introduction of the carbon tax, are expected to put pressure on mortgage holders, with 47% of members expecting increased mortgage defaults in their region.

The commercial property market should remain stable, according to the survey, with ongoing low business confidence and consumer nervousness continuing to dampen demand.

“International investors appear to be far more confident about the Australian economy than we are here at home,” Mr Ellis said.

“Domestic investors are still finding it difficult to source finance and, like many of our members, lack confidence in the government.”

The rural property market is expected to hold at current levels, with prices expected to remain the same by most of the rural respondents (74%).

“The key factors influencing rural property markets are the low Australian dollar and changing market conditions due to ongoing consumer nervousness,” Mr Ellis said.

Lifestyle properties are expected to dominate the rural property market across Australia in the coming six months, representing the greatest growth opportunities.

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Issued by: First National Real Estate. For further information or to receive a copy of the 2012 Property Market Outlook Mid-Year Update, contact Stewart Bunn, National Communications Manager, First National Real Estate, on 02 9320 2535
_____________________________________________________

Empty nests could be nest eggs

Empty nests could be nest eggs
First National Real Estate

Australians are sitting on some potentially valuable property that is not realising its value according to First National Real Estate. The recent Census included lots of interesting information, but the big surprise was the increase in the number of empty homes in Australia.

While the number of occupied dwellings has grown by 7.7% over the past five years, it has not matched the 8.3% increase in population. 10.7% of Australia's houses are unoccupied.

“There are a number of reasons why this could happen,” National Communications Manager, First National Real Estate, Mr Stewart Bunn said.

“Older family members move into retirement homes and empty nesters downsize, or, for some other reason the home is left empty.”

Houses are also often left empty when owners have bought a new property or had to move for work. They frequently have not had time or been able to sell their own house before needing to move.

“When families are not able to agree on what to do with these properties, they are often left empty when they could otherwise be used as an investment, even if it is only for a year,” Mr Bunn said. “The obvious thing to do is to sell the property or have one of the family move in.

“But if that still causes tension, then at the very least the property should be rented out until the family can agree on what should happen with the property. All families need to do is agree on an agent, or other third party, and let them do the rest. They can then rent the property and the money can be put into a trust or other account until a decision is reached on the best course of action.

“Property is the source of most Australians' wealth and it is important these investments are used to create wealth all through their lives”.

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Issued by: First National Real Estate

For further information contact:

Stewart Bunn, National Communications Manager, First National Real Estate, on 0413 624 317

First National Takes Its Own Advice Online

First National Takes Its Own Advice Online
First National Real Estate

First National Real Estate today announced it has launched a new national alliance with human resources consultants, HR Advice OnLine. The partnership provides access to vital

HR advice, up to date legislation, sample job descriptions, ready drafted processes, online guides, and checklists for everything to do with people management.

First National's administration has also retained HR Advice OnLine for its own human resources purposes.

'Our most important task is to provide our members with everything they need to deliver the best real estate services in the profession' said First National CEO, Ray Ellis. “Just as for our members, our people are the key to our success and it is important that we invest in them. HR Advice OnLine will help First National Real Estate members to navigate and meet their obligations under the complex and changing Australian industrial relations framework,.

'There are so many differences between state legislations that the average small business owner can find it difficult to be sure they're doing the right thing' said Mr Ellis.

'Transitioning to the new national employment standards is an example of where small business just cannot afford to make a mistake'.

Employing people is now more complex than ever and staying up to date can be challenging, which is where HR Advice OnLine can help.

Business partners Cheryl Disher and Kerrie Canning both run their own HR consulting businesses and understand the challenges faced by real estate business owners. The pair combined their resources and expertise to create HR Advice OnLine to help business owners manage these issues.

'The cost of replacing an unsuitable employee or rectifying a recruitment mistake can be between 75% and 150% of the employee's salary' says partner, Cheryl Disher.

'Plus, with industrial relations in transition across the country, there are plenty of potential traps for estate agents. First National Real Estate and HR Advice OnLine want agents to be able to focus on what they do best, selling and managing property, not becoming IR reform experts'.
Ray Ellis agrees.

'It would be unrealistic to think we could have the level of expertise within our management team, that professionals like Cheryl and Kerrie bring to the table. We'd rather they keep up to date on HR issues so we can keep working on the initiatives that make First National the leading real estate brand in Australia'.

Stamp Duty standing in the way

Stamp Duty standing in the way
First National Real Estate

Support for Prime Minister, Julia Gillard, has come from an unusual source today - the politically conservative CEO of First National Real Estate, Mr Ray Ellis, 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,” Mr Ellis said.
“As Australia's largest independent real estate network, we do everything we can to help people with workforce and lifestyle driven mobility,” Mr Ellis 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.”

Mr Ellis 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.

“Last month, we were proud to sponsor the inaugural Regional Victoria Living Expo which promotes the attractions of regional centres and smaller townships throughout rural Victoria,” Mr Ellis said.

“At that event, the Victorian Deputy Premier, Peter Ryan released research that indicates 11 per cent of Melbourne's metropolitan residents, around 450,000 people, are contemplating moving to regional Victoria in the next 3 years.

“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,” Mr Ellis 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 Mr Ellis, 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,” Mr Ellis said.

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Issued by: First National Real Estate

For further information contact:
Stewart Bunn, National Communications Manager, First National Real Estate, on
0413 624 317

First National Hedland sales agent, Rick Hockey

First National Hedland sales agent, Rick Hockey
First National Real Estate

Port Hedland (WA) sales agent, Rick Hockey, from First National Real Estate Hedland was recently announced First National Real Estate network's Top 10 Salesperson of the Year.

However, today, one of the nation's most popular real estate industry magazines has ranked him 19th in its inaugural Top 100 Agents review.

Real Estate Business magazine's Top 100 Agents ranking identifies the most productive agents in Australia and provides a blueprint for agents who aspire to reach the pinnacle in their profession.

It assesses key characteristics, business practices and attitudes that place the Top 100 ahead of the pack.

Real Estate Business looked beyond sales volumes in order to provide a snapshot of the broader business approaches adopted by the top agents nationally.

Mr Hockey is delighted with the ranking he's been given but, given the rigorous nature of the assessment, points out that it has much more to do with business methods than the impact of the mining boom on real estate in Western Australia.

'Your reputation is important in a town the size of Port Hedland so it's essential to maintain a high level of communication with your customers and develop better techniques than competitors' Mr Hockey said.

'Loving property is a good place to start but also having an intimate understanding of property investment makes all the difference.

'Naturally, the systems we use play a massive role but without the support of the entire team at First National Hedland, it wouldn't be possible to excel.'

Mr Hockey worked in the mining industry for 27 years before commencing as a sales agent with First National Hedland three years ago. He had purchased so much property through First National Hedland that the agency's principal, Morag Lowe, told him he might as work for her.

For more information about Port Hedland real estate investment, click here.

Issued by First National Real Estate

For more information- Stewart Bunn, National Communications Manager - 1800 032 332

Tax Tips to Avoid Slips by Investors

Tax Tips to Avoid Slips by Investors
First National Real Estate

Tax time can cause great anxiety for investors who unwittingly make claims they are not entitled to, getting themselves into deep water with the Tax Office. First National Real Estate offers these helpful hints to assist property investors to capitalise on their allowable deductions and avoid unwanted interest from the Tax Man.

“Property is an increasingly popular form of wealth creation for many Australians, but often they lack the accounting and financial knowledge to know what it is they are entitled to claim, or how much they can claim and what is not an accepted tax deduction,” First National Real Estate CEO, Mr Ray Ellis said.

“The ATO monitors property investor claims and often issue warnings or notices of the types of common mistakes made, so investors should at least visit the ATO website.

“Reports say more than 1.5 million people claim in excess of $24 billion in rental deductions in a year, which explains the ATO’s vested interest and continued focus on monitoring rental property deductions.”

According to Mr Ellis, the most common mistakes made by property investors include making claims against:

Immediate initial repairs or capital improvements including structural repairs and improvements which are seen more as capital works deductions such as remodeling a bathroom or building a pergola
The portion of a loan that is used for both investing and private purposes
Inspection of a rental property while on holiday in the area, which is the real purpose, and the inspection only incidental
Expenses relating to the private use of a property such as a holiday home
A property that is not genuinely available for rent including periods while it is undergoing construction or renovation
Borrowing expenses in the first year rather than being spread out over the term of the loan or five years, whichever is the lesser of the two.

Mr Ellis said investors should seek the services of a qualified professional such as an accountant or financial advisor when looking at preparing their tax return.

“Everyone’s personal financial circumstances are different and the tax implications of the individual property investment strategy may differ, so it is important to discuss it with someone who has the necessary expertise and experience,” Mr Ellis said.

Mr Ellis says it is also a good idea to look at using the services of a respected and qualified property manager who will act on your behalf with your best interests at heart.

“A property manager, such as those with First National, have the requisite forms, processes and systems to effectively manage a property as well as maintain and keep appropriate records for tax and accounting purposes,” Mr Ellis said.

“Proper record keeping and tracking is more than half way to ensuring the investment property yields the optimal return.”

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For further information contact Stewart Bunn, National Communications Manager, First National Real Estate, on 0413 624 317

Duty of all to abolish taxes

Duty of all to abolish taxes
First National Real Estate

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!,” Ray Ellis, CEO, First National Real Estate said.

“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.”

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

“The real issue for the property market is that buyers aren’t buying and part of that reason is the exorbitant extra costs associated with buying a property,” Mr Ellis said.

“These extra purchase costs mean it is more cost efficient for home owners to consider renovating or think outside the box and look at dual occupancy type solutions.

“The excessive cost of developing vacant land has stalled the process of newly built home stocks coming onto the market, which is having a devastating impact on the market overall.”

Last year, stamp duty accounted for 37% of total property related taxes in Australia and Mr Ellis believes 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.

“We were promised a reduction in taxes like stamp duty when the GST was introduced. Not only has it stayed, nationally, stamp duty has risen, due mainly to increases in NSW and Victoria according to industry figures,” Mr Ellis said.

“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,” Mr Ellis said.

“But basic economics is at play here, if the stamp duty was lowered more homes would sell, both home owners and governments would see increased revenue.

“Consideration could also be given to abolishing stamp duty and recouping those lost taxes through a more equitable means where the whole population pays – not just those who have saved for a new home.

“Perhaps we should increase tax paid on luxury items such as tobacco or alcohol, or fast food items.”

According to Mr Ellis, 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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For further information contact Stewart Bunn, National Communications Manager, First National Real Estate, on 0413 624 317

Young Achiever Wins Premier’s Award

Young Achiever Wins Premier’s Award
First National Real Estate

A 25-year-old mother edged out some of the state’s most impressive youths to win the ‘First National Real Estate Leadership and Innovation’ category leading to the ‘Premier’s Young Achiever of The Year’ award in the Southern Cross Young Achiever Awards on Saturday night.

Held at Tasmania’s Wrest Point Casino before an audience of 600, The Southern Cross Young Achiever Awards were hosted by television presenter, Jo Palmer and are designed to acknowledge, encourage and promote the positive achievements of Young Tasmanians aged between 14 and 28 years of age.

Cait Clarke won the award as a result of her contribution to youth and community projects around the state as well as her efforts as a councilor in her hometown of Kentish, north of Hobart, which have been widely reported in local media.

‘Cait is the youngest person elected to a local government role, is chairman of the Kentish Youth Council, works with the social inclusion action group and is a Road Educator Volunteer (REV) mentor’ said Ray Ellis, chief executive of the 450-office strong Australasian real estate group.

First National sponsored the category of the Young Achiever Awards as part of its national programme of corporate giving, which includes support of Red Cross Emergency Services’ work preparing Australian communities for natural disasters, coordination of response, and recovery.

‘Leadership and innovation is what First National Real Estate is all about, as evidenced by our leading Tasmanian offices in Burnie and Hobart who have won industry awards at national level, showing many a larger mainland based estate agency what Tasmanians are capable of.

‘As a network, we support the young people of Australia who look at how to change things for the better.

‘It’s what the great state of Tasmania is crying out for; commitment to strong leadership and the ability to imagine more creative solutions to today’s challenges. People like Cait define not just where Tasmania is heading but who Australia is in the 21st century’ said Mr Ellis.

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Issued by: First National Real Estate

For further information contact:

Stewart Bunn, National Communications Manager, First National Real Estate, on 0413 624 317

Online Scammers a Real Threat for Renters

Online Scammers a Real Threat for Renters
First National Real Estate

First National Real Estate says the web was a great place to find rental properties or student accommodation, but warns renters to watch out for online scammers,

“Prospective tenants keen to find accommodation in the current tight rental market are increasingly being targeted by dishonest people seeking to take advantage of their circumstances,” First National Real Estate CEO, Mr Ray Ellis, said.

“Rents are escalating, vacancy rates are low and many people who rent often are forced to do so, either because they are still studying or are simply unable to afford to purchase a property outright.

“This makes it especially disconcerting that they would fall prey to greedy scammers who want to feed off others like parasites.”

There are a number of common scams in the market according to First National, but they can easily be avoided.

“Scammers pose as landlords using community websites and say you can’t meet with them to view the property for various reasons. Often they say they are overseas, then demand a payment to secure the keys to inspect a rental property that is always underpriced and seems too good to be true, which usually means it is,” Mr Ellis said.

“They ask that the money be sent via money transfer, even though you have yet to set eyes on the property in person, let alone view or inspect it.

“Once the money is sent out of Australia by wire transfer, it’s gone and so is the property and the scammer.”

Mr Ellis said there were some simple rules to follow to avoid being taken advantage of, the first one being to use the services of a reputable third party such as a real estate agency.

“Going through an agency means you are dealing directly with the landlord’s official representative. If you can’t rent from a real estate agency and must deal with the landlord online, make sure you do not pay any money to gain access to the property for an inspection, and, make certain the landlord intends to comply with your state’s rental legislation. If you’re unsure about anything, contact and agent or the Real Estate Institute of your state’.

According to Mr Ellis, the other simple ways to avoid a rental scam are to:-
Never wire money
Always meet the landlord or property manager in person before signing any rental documents
Even if you are overseas, contact a reputable third party, such as a friend or an agent if you don’t know of anyone in the area, and ask them to view the property on your behalf
Never give out bank account information or personal details, especially over the phone or online
Do a web search of the landlord’s name to see if there is any other available information on the person.

Mr Ellis advised potential renters to watch out for properties where:

the rental amount is unusually low, compared to similar properties in the same area
the landlord is unable to show you the property
they request payment via wiring, cashier’s check, money order, escrow service, Western Union or MoneyGram,
rental applications or reference checks are not requested, and
email is from a free email provider such as yahoo, gmail, Hotmail, etc.

“Another dead giveaway is a lot of spelling mistakes in their email communications, the grammar is not good, or, there is an excessive use of capitalisation,” Mr Ellis said.

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For further information contact Stewart Bunn, National Communications Manager, First National Real Estate, on 0413 624 317

New Homes to Drive Property Market

New Homes to Drive Property Market
First National Real Estate

A solution to Australia’s sluggish start to the property market for 2012 may rest with the New Homes Building sector says First National Real Estate, especially if associated regulatory and government taxes were reduced.

“New home building is a key barometer for the health of the domestic economy and can often drive first home buyer activity,” Mr Ray Ellis, CEO, First National Real Estate said.

“But the disappointingly weak start for new home sales early this year, indicate low interest rates are not enough to sustain improvements in new home building conditions and something more 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,” Mr Ellis said.

According to Mr Ellis, 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,” Mr Ellis said.

“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.

“Everyone’s a winner, so why can’t we build more new homes?”

For further information contact Stewart Bunn, National Communications Manager, First National Real Estate, on 0413 624 317

Victorian and Tasmanian First National Agents celebrate their outstanding achievements

Victorian and Tasmanian First National Agents celebrate their outstanding achievements
First National Real Estate

First National Real Estate announced its Victorian/Tasmanian General Excellence and Marketing (GEM) Award winners on Saturday night during an elegant Spanish Fiesta themed dinner held at the Grand Hyatt in Melbourne.
The Awards recognise the network’s best performers in Victoria and Tasmania over the past 12 months which, says State Chairman Mr Garry Nash, have been beyond expectation given the volatile economic and market conditions.

“Marketing and selling property effectively in a marketplace which fluctuates and turns with every wind change is a tough ask, but that is exactly what our members have been able to do,” Mr Nash said.
“I am delighted that the teamwork of our members and their staff achievements are being acknowledged through these Awards.”

On the night the Top 10 Offices in the state were named and included:

First National Real Estate Tweed Sutherland, Bendigo as Sales Office of the Year
First National Real Estate Collie & Tierney (Mildura)
First National Real Estate King & Heath (Bairnsdale)
First National Real Estate Garry Nash (Wangaratta)
First National Real Estate LaTrobe (Traralgon)
First National Real Estate Neilson Partners (Berwick)
First National Real Estate Dawes & Milne (Frankston)
First National Real Estate Clark (Warragul)
First National Real Estate Westwood (Werribee)
First National Real Estate Finning (Cranbourne)

First National Real Estate McGregor (Moonah, Tasmania) was named the Property Management Office of the Year, First National Real Estate Clark (Warragul) was named Foundation Office of the Year and First National Real Estate Taylors (Newtown) was afforded the accolade of Most Energy Efficient Office of the Year.

Individuals were also recognised, with the Top 10 Salespeople being:

Rob Westwood, First National Real Estate Westwood (Werribee) (Salesperson of the Year)
Matt Leonard and Darryn O’Keefe, First National Real Estate Tweed Sutherland (Bendigo)
Andrew Milne, First National Real Estate Dawes & Milne (Frankston)
Frank Barrett, First National Real Estate Finning (Cranbourne)
Joan Carter, First National Real Estate King & Heath (Paynesville)
Andrew Kerr, Neil Kerr First National (Cobram)
Debby Kelly, First National Real Estate King & Heath (Bairnsdale)
Anthony Rabl and Peter Clark, First National Real Estate Clark (Warragul)

Rose Pearson from First National Real Estate Tweed Sutherland (Bendigo) was named Property Manager of the Year while Ming Kok from First National Real Estate Lindellas (Box Hill) and Jamie Maynard from First National Real Estate Wodonga were named Property Manager Rookie of the Year and Sales Rookie of the Year respectively

Kirsty Little from First National Real Estate L J Whorlow (Sunbury) ande Dusk Wright from First National Real Estate Clark (Warragul) were dual winners of the Administrator of the

Year title and Cathryn Margaret Bird from First National Real Estate Taylor (Newtown) was named Receptionist of the Year.

Mr Nash said that with the greatly improved prospects for 2012, he hopes the year ahead will be even more rewarding for members.

“All First National members and their teams should be very proud of their efforts, knowing they have helped many clients realise their home ownership aspirations as well as contributed to the ongoing success of their respective offices and the network as a whole,” Mr Nash said.

“Personally, I am motivated by the excitement of sharing in shaping an organisation that excels at every level and continues to strive for setting industry benchmarks.”
State winners of the First National Real Estate GEM Awards will automatically be in the running for the national Awards to be held in May this year at the network’s annual National Convention.

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Issued by: First National Real Estate

For further information Garry Nash, Principal, First National Real Estate Garry Nash on 03 5722 2663.

Local Gems Sparkle at Awards Dinner

Local Gems Sparkle at Awards Dinner
First National Real Estate

First National Real Estate announced its Queensland General Excellence and Marketing (GEM) Award winners on Saturday night during an elegant St Patrick’s Day themed dinner held at the Sofitel in Brisbane.

The Awards recognise the network’s best performers in Queensland over the past 12 months which, says State Chairman Mr Mike Gray, have been beyond expectation given the volatile economic and market conditions.

“Marketing and selling property effectively in a marketplace which fluctuates and turns with every wind change is a tough ask, but that is exactly what our members have been able to do,” Mr Gray said.

“I am delighted that the teamwork of our members and their staff achievements are being acknowledged through these Awards.”

On the night the Top 10 Offices in the state were named and included:

• First National Real Estate Commercial Gold Coast (Sales Office of the Year)
• First National Real Estate Surfers Paradise
• First National Real Estate Metro (South Brisbane)
• First National Real Estate Nerang
• First National Real Estate Commercial Brisbane CBD
• First National Real EstateToowoomba
• First National Real Estate Paradise Point
• First National Real Estate Rochedale
• First National Real Estate Action Realty Ipswich
• First National Real Estate Biloela

First National Real Estate Paradise Point was also named the Property Management Office of the Year and First National Real Estate Palm Beach was named Foundation Office of the Year for its fundraising efforts.

Individuals were also recognised, with the Top 10 Salespeople being:

• Jamie Bourke, First National Real Estate Commercial Gold Coast
(Salesperson of the Year)
• Brian Baker, First National Real Estate Commercial Brisbane CBD
• Bob Rollington, First National Real Estate Surfers Paradise
• Ashley Waldron, First National Real Estate Paradise Point
• Rob Rollington, First National Real Estate Surfers Paradise
• Paul Charlton, First National Real Estate Tweed City (Tweed Heads)
• Christine Gabriel, First National Real Estate Biloela
• Richard Waldron, First National Real Estate Paradise Point
• Michael Kettle, First National Real Estate Caloundra
• Adam Dickie, First National Real Estate Dickies (Sandgate)

Diane Mann from First National Real Estate Paradise Point was named Property Manager of the Year while Jo Grammatico from First National Real Estate Commercial Gold Coast and Brenton Falknau from First National Real Estate Toowoomba were named Property Manager Rookie of the Year and Sales Rookie of the Year respectively.

Kate Campbell from First National Sarina was named Administrator of the Year and Bianca Jordan from First National Action Realty Ipswich was named Receptionist of the Year.

Mr Gray said that with the greatly improved prospects for 2012, he hopes the year ahead will be even more rewarding for members.

“All First National members and their teams should be very proud of their efforts, knowing they have helped many clients realise their home ownership aspirations as well as contributed to the ongoing success of their respective offices and the network as a whole,” Mr Gray said.

“Personally, I am motivated by the excitement of sharing in shaping an organisation that excels at every level and continues to strive for setting industry benchmarks.”

State winners of the First National Real Estate GEM Awards will automatically be in the running for the national Awards to be held in May this year at the network’s annual National Convention.

Issued by: First National Real Estate

For further information Mike Gray, Principal, First National Real Estate Nerang on 07 5596 0055.

Trends in property - What's APP-ROPRIATE

Trends in property - What's APP-ROPRIATE
First National Real Estate

First National Real Estate says there will be a stronger focus on technology for the property market this year, but cautions buyers and sellers to make sure they know the most app-ropriate ones that are fit for their purposes.

“We know consumers crave information because it gives them power, control and improved certainty over their purchase decisions,” Mr Ray Ellis, CEO, First National Real Estate said.

“So, the more information we provide, the better our service delivery. That’s why we have worked so hard, as a network, to stay at the forefront of technology in our industry and to ensure we provide the public with what best suits their needs.”

Mr Ellis says one technological advancement set to revolutionise the way consumers access real estate information is the Point-Know-Buy (PKB) trend.

“PKB will reshape consumers’ information expectations, search behaviour and purchasing patterns,” Mr Ellis said.

“Which is why it is crucial they 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.

“What PKB does is effectively links images to any available information about that picture,” Mr Ellis said.

“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.

“No more sitting for hours in front of a computer looking for that ideal house, or being limited to receiving information based on matching words for search engine optimisation or how well you describe something.

“The information will be at their fingertips and instantly accessible, making it much more efficient and convenient for house hunters.”

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

“We can instantly add a customer’s wish list to our database which will highlight properties that are suitable matches,” Mr Ellis said.

“We can also demonstrate to home sellers the impact on the number of potential buyers if a selling price is too high. Our mobile Apps allow our agents to demonstrate, using a sliding scale, how many buyers are waiting on our database for their home, based on their asking price.

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

The coming 12 months is expected to see a full-blown expansion of technology, especially PKB, and First National is advising consumers to make sure they are up to date with all the latest breakthroughs so they can use the one most app-ropriate for their needs.

For further information contact Stewart Bunn, National Communications Manager, First National Real Estate, on 0413 624 317

First National Urges Government to lead

First National Urges Government to lead
First National Real Estate

Now that the ‘politics’ of politics are all but settled, First National Real Estate is calling on the government to start focusing on the real issues at hand – namely property and getting Australia going again.

First National Real Estate’s CEO, Mr Ray Ellis, is urging the government to take a stronger leadership role and hold banks accountable for their independent actions on interest rates, to ensure they act more responsibly when the next decision is handed down.

“The recent move by the major banks to independently raise interest rates at a time when restraint was required was very disappointing, and the real estate industry, as well as mortgage-holders, are looking to the government to reign in the banks in some way,” Mr Ellis said.

“The market was showing strong signs of improvement and it is irresponsible of banks to raise rates when the RBA determines they should remain on hold.

“In some capital cities, auction clearance rates dropped on the weekend after the banks raised their rates and fewer properties sold at auction than for the same time last year, evidence the market was subdued following their irresponsible actions.

“This followed our agents reporting drops in listing volumes for the second month in a row, media reporting market activity across the board had picked up in January, up by 40 per cent over last January, and market conditions being good, but the banks’ actions undermined the positive progression of the market, which is only to the detriment of the Australian economy as a whole.”

Mr Ellis said while the government may have been distracted by their own ‘politics’ at the time, it is hoped they will be more attentive when the next RBA interest rate decision is made.

“Real estate is a key driver of the Australian economy, so it needs to be supported during times of uncertainty and reducing consumer confidence,” Mr Ellis said.

“It was fiscally irresponsible for the banks to behave in that manner, and we are certainly looking to both them and the government to do the right thing next time.

“We are doing our bit to provide a supportive environment by offering financial incentives and competitions for our customers and putting them first, and all we are asking is that the government makes sure the banks do the same.

“It is in everyone’s best interest. Australia will be better for it, home buyers and sellers will be better for it and in the long run, so will the banks. It is a proven fact that consumers will remain loyal to businesses that support them during tough times.”

Mr Ellis also encouraged mortgage seekers or holders to use their influence and remind the banks how important their patronage is.

“Banks are all vying for the mortgage dollar and are on record as saying they will negotiate on rates to retain their share of the market - buyers and mortgage holders are in a position to make them keep to their word.

“It’s a basic premise that when the banks do the right thing by their customers at times that count, their customers, in turn, will do the right thing by them.”

For further information contact Stewart Bunn, National Communications Manager, First National Real Estate, on 0413 624 317

First National MobileMuster Support Rewarded

First National MobileMuster Support Rewarded
First National Real Estate

First National Real Estate was recognised recently for its support of the MobileMuster Old phones, more trees campaign, the official recycling programme of the mobile phone industry.

The network received the Award for the Best Promoter to recognise the business that actively and creatively promoted mobile phone recycling to its staff and customers. The Award was presented at the Victorian MobileMuster Business Awards, held as part of the Melbourne Sustainable Living Festival.

First National Real Estate CEO, Mr Ray Ellis, said he was delighted the network’s hard work and efforts had been acknowledged because, as a network, at every level it was committed to energy efficiency and sustainability.

“Our members and staff have embraced the corporate philosophy to lessen the impact our work has on the environment and at the same time take a lead on matters affecting the communities in which we live and work,” Mr Ellis said.

“MobileMuster was seen as an ideal extension of our own energy efficiency and sustainability drive and we worked very hard to encourage our customers, staff and members of the community to recycle their old phones and plant more trees.”

Mr Ellis said he believed the corporate world had an obligation to adopt business practices that would make them more resource efficient and less wasteful.

“It makes good corporate sense from every aspect. We reduce our carbon footprint, improve our bottom line, gain a competitive edge and enhance our reputation when we take on these type of social responsibilities,” Mr Ellis said.

In addition to partnering with the MobileMuster organisation, the network provided additional finance and resources to support the campaign.
“We provided a drop off point for members of our local communities and then promoted the campaign internally to staff and externally to the general public.

“We used a combination of traditional promotional methods, such as media releases and posters, with new technologies, such as social media tools like Twitter, facebook, blogs and smartphone messaging.

“The response we received from our members and their communities was terrific and we are pleased with the results we have achieved.”

For further information contact Stewart Bunn, National Communications Manager, First National Real Estate, on 0413 624 317

First National Supports Rates Decision

First National Supports Rates Decision
First National Real Estate

First National Real Estate’s CEO, Mr Ray Ellis, supports the RBA’s decision to keep interest rates on hold, saying stability is what is sought during times of ongoing consumer nervousness and tension.

“The market is tightly wound at the moment, and movement of any kind could unsettle confidence, which is why we believe the decision by the RBA was the right one at this time,” Mr Ellis said.

“Our agents 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.”

Mr Ellis said home buying opportunities, even with the rates remaining steady, were still plentiful as interest rates are still relatively low and home prices are at their most affordable for quite a number of years.

“This all bodes well for a property market looking for signs of stability and recovery” Mr Ellis said.

“Any decreases in rates at this time 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.

Mr Ellis said he encouraged anyone looking to purchase a home at the moment to negotiate.

“All the Big 4 banks and other mortgage lenders are on record as saying they are willing to discuss rates with home buyers in order to retain their share of the market, so buyers are in a real position of power to make them deliver on their statement,” Mr Ellis said.

“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.”

Queensland Pimp Your Property Winners Announced

Queensland Pimp Your Property Winners Announced
First National Real Estate

First National Real Estate office name today announced the final four winners of First National’s Queensland ‘Pimp Your Property Home Renovation Giveaway’ competition.

Stephen Tillston of Nerang, Kira Hammond of Nundah and Vicki Nunn of Gladstone are each winners of $500 Bunnings Hardware voucher packs. Nathan Griffiths of Currumbin Waters won the major prize of $10,000 in Bunnings Hardware vouchers.

‘The competition, which ran for the latter half of 2011, has helped 13 Queensland families to make improvements around their homes or recover from damage caused by last summer’s weather events’ said Ray Ellis, Chief Executive of First National Real Estate.

‘Our member offices throughout Queensland were delighted to offer the opportunity for their local communities to win a share of the prize pool and remind our customers that First National will be offering an even more exciting competition for them to enter, later this year’.

Property Market Outlook - Patchy But Signs Of Recovery

Property Market Outlook - Patchy But Signs Of Recovery
First National Real Estate

First National Real Estate has surveyed its 450+ offices throughout Australia and New Zealand to find that 2011 is expected to be the turnaround year for the property market. Some areas will perform quite strongly, others not as well, but overall there are signs the market will hold and pick up as the year progresses.

According to First National CEO, Ray Ellis, this is the picture building at the moment, based on expectations of interest rates, movements and local area member knowledge, underpinned by strong economic fundamentals as detailed in First National Real Estate’s 2011 Property Market Outlook released this week.

“The market has slowed and is flattening out but there are still some great opportunities out there. We expect investors will play a much bigger role in the property market next year, taking advantage of low vacancy rates, strong returns and reduced competition from first home buyers”, Mr Ellis said.

“This will boost some areas around Australia which will drag other non-performing areas along and provide benefits usually reserved for mining towns in a resources boom.”

Western Australia’s metropolitan markets are moderating but mining towns continue to perform strongly. Chronic supply shortages continue to underpin strength in The Northern Territory while Queensland shows similarities to Western Australia - mining towns striding ahead as a result of the resources sector while some metropolitan areas, such as those in South East Queensland, remain soft. Both states and the Northern Territory will continue to benefit from the booming resources sector into 2011.

Victoria has been the stand out success story of 2010, performing strongly throughout most of the year. However, affordability suffered as Melbourne became the least affordable Australian city to buy a home and regional Victoria’s affordability also deteriorated. There was a slight improvement in Victoria’s affordability towards the end of 2010 and it is expected this will continue to improve into 2011.

Tasmania and South Australia both performed consistently, characterised by neither boom nor bust and this is expected to continue, to some extent, into 2011.

The New South Wales market stabilised throughout 2010, laying the foundations to rebuild its strong market position in 2011. In regional areas of the state, upgraders and investors are already very active and this is expected to continue into 2011.

First National Real Estate members across the country were almost evenly split on their predictions for house prices in 2011 with 32 per cent expecting prices to trend upwards, 30 per cent expecting prices to trend downwards and 38 per cent expecting prices to remain flat.

“Broadly speaking, house price movements will trend upwards across the country by between 1 and 5 per cent, but there will be locations where moderation or slight negative growth will occur,” Mr Ellis said.

“Across all survey respondents, in 70 per cent of cases house price movements are expected to be between 1 and 5 per cent, between 5 and 10 per cent for 20 per cent of members responding and more than 10 per cent for 10 per cent of members responding,” Mr Ellis said.

“Basically, what we see is that our members generally expect the market to remain stable as a result of a strong economy, but this is contingent upon interest rates.”

Apartment/strata property prices are expected to follow a similar pattern, with the potential for movement of up to 5 per cent.

Land prices are also expected to remain relatively flat, with 40 per cent of respondents expecting them to remain flat, 40 per cent expecting them to trend upwards and 14 per cent expecting them to trend downwards, with decreases kept to a maximum of 10 per cent.

The rental market will be the strongest performing sector of the property market in 2011, with ongoing tight vacancy rates across the board, predicted increasing demand and strong possibility of rising rents.

“All states except the Northern Territory predict a downwards trend for vacancy rates of between 1 and 5 per cent,” Mr Ellis said.

“This chronic undersupply of housing for tenants will maintain upward pressure on rentals, with the potential to push weekly rentals up further by between 1 and 5 per cent in the majority of states, with Tasmania predicting increases of as much as 5 to 10 per cent and the Northern Territory expecting decreases by up to 5 per cent.”

Over 2010, rental vacancy rates were low in Sydney, Melbourne and Adelaide, with slightly more choice in Brisbane and Perth, but these are expected to tighten further in 2011.

Investors are also expected to play a role in forcing rents up higher, as they seek to compensate for any loss in capital appreciation as prices growth slows down.

Investor activity is expected to increase in all states except the Northern Territory and Queensland.

Based on the survey results, respondents expect there to be two additional interest rate increases in 2011, with the potential for a third.

“Should interest rate increases be kept to a minimum, the market should hold up,” Mr Ellis said.

“However, there is the likelihood if the increases are sizeable, affordability will be further eroded, bringing additional pressure on mortgaged home owners which will ultimately slow the market even more.”

According to Mr Ellis, interest rates will only be one mitigating factor for the property market to deal with in 2011. Mortgage exit fees, insufficient housing stocks, banks and anticipated electricity price hikes will also impact on the market.

“Nearly 70 per cent of our members believe the likely increase in electricity prices will impact on the types of energy efficient features being sought by home buyers, making solar the top of the list as the most sought after feature,” Mr Ellis said.

“Global events, new legislation, state elections such as NSW and the new government in Victoria will also impact in ways it is impossible to tell.

“But it is our job, those of us who work in the property market, to do what we can to ensure property remains as strong as it possibly can.”

2012 Property Market Outlook

2012 Property Market Outlook
First National Real Estate

INTRODUCTION

First National Real Estate has again surveyed its 350+ member network to provide its 2012 Property Market Outlook.

This Outlook serves to contrast actual market conditions with the predictions of economic commentators and property market analysts.

First National Real Estate members are broadly distributed across Australia, throughout cities, suburbs and country towns. As such, the network’s estate agents are exposed to mainstream Australia and are intimately acquainted with the views of the public, their response to government initiatives, their levels of confidence and their approach to property investment.

Our agents’ survey responses have been compiled to develop a picture of the Australian property market’s performance over the last six months, and their outlook for the coming six to twelve months.

Results and trends highlighted in this document represent the majority view of across all respondents. A full breakdown of survey responses can be provided if requested.

There is an overall Australian outlook, followed by a state-by-state outlook and then, most importantly, an outlook that provides an in-depth overview of what the residential, rental and commercial property markets are doing at the local level.

2011 saw the worst floods and cyclones in a generation, a European debt crisis which may yet worsen (even potentially resulting in the collapse of the Eurozone), rising living costs and a spate of industrial disputes.

The global economy has softened, terms of trade peaked and inflation is likely to be consistent with the RBA’s 2-3 per cent target in 2012 and 2013.

As a result, Australia continues to have a two-speed economy with weak sentiment but a strong corporate sector, which makes it an opportune time to invest domestically.

The Australian share market has been susceptible to the US money market and volatile European economies, creating uncertainty and nervousness amongst consumers, businesses and investors alike. Add to that local Australian events, such as political instability, the impact of new government taxes and charges, lack of clarity about future interest rates, rising job insecurity as well as volatile asset markets, and consumer sentiment starts to weaken.

However, in light of all this, there is still some optimism amongst Australians, bringing their traditional “she’ll be right mate” attitude to the fore. A recent survey found the majority of Australians, six out of 10, believe the economy will remain strong and that the property market will improve.

Already there are signs that things can only get better on the property front:

Larger crowds are attending auctions

Real estate agents are experiencing increased numbers of enquiries. Our own survey of members reveals there has been a strong increase in activity by upgraders and investors

Auction clearance rates stabilised early in 2011, and, apart from the final weeks of December, are slowly creeping up. In Melbourne alone, during November, around 1,000 auctions were held (clearing around 50 per cent), making it one of the busiest periods of the year. In Sydney, the last weekend in November was one of the best-selling weekends for this spring, with 55 per cent of properties reportedly being cleared from around 1,100 scheduled auctions

First homebuyers and investors are also being tentatively tempted back into the market. First National members indicate investor activity represents one of the strongest growth areas over 2011, along with upgraders. First homebuyers are starting to become active again, and 12 per cent of our members indicate they expect this to strengthen in 2012 as prices bottom out

Interest rates are coming down after a sustained period of stability. The rate cut on 1 November this year was the first one for eight months. A second rate cut in December may be followed by a third in the New Year. Any rise in interest rates will slow, if not hinder, the market in Australia.

While demand is still expected to remain relatively soft into 2012, a recent sharp rise in the “time to buy a dwelling” index may be the cue for a housing upturn. This will, however, be dependent on ongoing interest rate cuts, job security and resulting positive consumer sentiment.

Our members optimistically indicated they expect interest rates to drop further.

Cuts in interest rates of up to 0.5 per cent are expected although they could be as much as 0.75 per cent or even 100 basis points.

Any future interest rate cuts are expected to bolster the market and create renewed interest, as well as stimulate buyer activity as confidence to buy will improve and refinancing options will be considered, ultimately strengthening the property market.

On the other hand, any increases to interest rates may see an escalation of mortgage distress, particularly among the more exposed households, which may result in a moderate decline, of an average 10 to 15 per cent, in residential property prices.

There is evidence, however, that households continue to have a capacity to take on debt, and household savings continue to climb. Currently households are saving more than in the past two decades and there has been a moderation in borrowing behaviour. There appears to be a general recognition that the property market is less able to replace stock market losses incurred since late 2007, and that homeowners need to actively save more.

While homebuyers appear more cautious about buying property at the moment, this is seen more as a result of economic perception, rather than their actual personal financial status. Most adults are not particularly debt stressed.

Consumers have put themselves into the position to act when confidence returns – high savings means they are probably waiting for the right time to buy.

Population growth, which was running at levels not seen since WWII, peaked in December 2008 at 2.2 per cent per annum. Since then, the growth rate has declined marginally to 1.4 per cent in the year to 30 June 2011. In real terms though, this means there was still an increase of 320,800 persons and in all states and territories, positive population growth has occurred. This puts upwards pressure on housing demand and will continue to underpin the market.

The underlying strength of the Australian economy and the continuing shortage of residential housing in Australia, together with stable interest rates, are expected to largely support Australian housing prices, despite the slowing correction evident in some markets.

Current strong levels of affordability are expected to continue, and may even improve. A long period of stable prices, while wages growth outpaces any changes in house prices, will help to improve affordability. Ongoing uncertainty concerning global economic conditions is expected to continue to affect the property market and cap house prices generally.

But an important note for property pundits is that the Australian housing market is affected by daily international updates as well as foreign and local commentary. Consumer sentiment is therefore likely to remain variable throughout 2012 and global shocks could dampen market performance periodically, or protract recovery.

Disclaimer: There are many uncertainties in forecasting movements in the market such as government policy changes, interest rate changes and global economies. Therefore, the forecasts in this report should be taken to be indicative of anticipated market directions only. First National Real Estate takes no responsibility for actions taken on the basis of this report and encourages all vendors and buyers to conduct their own research.

NATIONAL OUTLOOK

Buyer confidence will be a driving factor in any property market recovery in Australia and will driven by a combination of interest rates, local market conditions and the global economy generally.

The majority of First National’s state chairmen said buyer confidence had weakened over the last six months, while the remaining said it had improved. What this clearly underlines is the two speed nature of Australia’s property market and the patchiness of demand nationally.

However, all Chairmen were unanimous in saying buyer confidence would improve in the coming six months, as a result of lower interest rates, coupled with improving local market conditions and a more stable global economy.

The state chairmen also indicated that they consider there is potential for an increase in mortgage defaults, due to rising unemployment, poor lending criteria, interest rate rises, job losses and increased living costs. Some states are already experiencing an increase in mortgage defaults because of worsening global economic conditions and job losses.

Any hot spots around the country will be driven by access to amenities, lifestyle preferences and affordability.

According to our chairmen, the key challenges for the 2012 property industry will be levels of consumer confidence, affected by the global economy, reduced job security, government policy and legislative changes such as the introduction of the carbon tax and Minerals Resource Rent Tax, changes to first home buyer grants, and interest rates.

MARKET TRENDS

Residential

The residential market is anticipated to remain subdued in 2012 as consumers continue to pay off debts. However, falling house prices should stimulate some activity, particularly among bargain hunters who have been squirreling away savings and are now cashed up.

According to members responding to the First National’s 2012 Property Outlook Survey, the vast majority said the market had steadied or fallen (see table below).

TYPE OF MARKET – LAST SIX MONTHS 2011
National WA VIC TAS QLD SA NSW/ACT
Falling 58% 33% 81% 94% 80% 43% 36%
Steady 36% 34% 19% - 13% 57% 59%
Rising 6% 33% - - 7% - 5%

It is expected the market will further moderate, although some areas have the potential to experience an even more decline.

TYPE OF MARKET – FIRST SIX MONTHS 2012
National WA VIC TAS QLD SA NSW/ACT
Falling 25% - 31% - 20% 29% 32%
Steady 66% 83% 69% 89% 60% 71% 59%
Rising 9% 17% - - 20% - 9%

Property Prices

It is unlikely uniform property prices will be seen in the 2012 Australian real estate market. Some parts of the market will demonstrate greater price resilience, especially ‘muscle towns’ with direct links to the mining sector or specific agricultural regions. Other parts of the housing market may experience strong price deflations.

Prices will stagnate in the main, but this is a normal part of Australia’s long-term cyclical housing market.

The housing market across Australia has remained soft, with home values dropping in all capital cities for an average dwelling price in October this year of $448,500.

Residential property prices are expected to bottom out in 2012, especially if official interest rates are cut below their current 4.25 per cent.

The Sydney market will stabilise first, as it has already shown signs of doing, but for some of the other capital cities, like Melbourne, there could still be some way to go.
City Movement Year on Year Median Dwelling Price
Sydney -1.1% $498,000
Canberra -1.1% $475,000
Brisbane -8.0% $402,000
Melbourne -5.4% $458,500
Adelaide -5.2% $370,000
Perth -5.0% $443,000
Hobart -4.0% $310,000
Darwin -3.1% $458,000
Regional -3.4% $316,000

Lower house prices are the trend anticipated by our members responding to the 2012 Property Market Outlook survey.

The combination of lower interest rates, cheaper homes and rising incomes is generating a welcome boost to housing affordability, particularly in those markets where value falls have been more significant.

In the coming six months, the majority of our members believe house prices will remain flat, or decrease, with only a small portion saying they may trend upwards.

HOUSE PRICES – NEXT SIX MONTHS 2012

Movements in house prices are expected to be mainly within the vicinity of 1 to 5 per cent, but the majority of survey respondents anticipate them to be less than 1 per cent. Small pockets of Victoria, South Australia and New South Wales/Australian Capital Territory may experience drops of around 10 per cent.
National WA VIC TAS QLD SA NSW/ACT
Flat 56% 50% 50% 92% 47% 86% 55%
Downwards 28% 17% 50% - 27% 14% 23%
Upwards 16% 33% - - 26% - 22%

Tasmanian members all believe house prices will remain steady.

APARTMENT PRICES – NEXT SIX MONTHS

Apartment/strata property prices in the coming six months are expected to remain relatively flat although there could be some falls experienced. A small portion of the membership anticipates prices for this segment to rise.

Movements for apartment/strata property prices are expected, in the main, to be below 1 per cent although some members say there is a possibility they could move as much as 5 per cent. A very small portion of the membership indicates price movements in the area of 10 per cent.
National WA VIC TAS QLD SA NSW/ACT
Flat 55% 34% 56% 87% 42% 71% 60%
Downwards 31% 33% 38% - 42% 29% 20%
Upwards 14% 33% 6% - 16% - 20%

Land Prices

According to the survey, most of our members expect land prices to remain flat, with some predictions for prices to head upwards, and some downwards.

Any movements in land prices are expected to be mainly less than 5 per cent with some saying they may be as much as 10 per cent and a minority predicting movements of between 10 per cent and 20 per cent.

LAND PRICES – NEXT SIX MONTHS
Trend National WA VIC TAS QLD SA NSW/ACT

Upwards 15% 17% 15% - 20% - 15%
Downwards 27% - 39% - 27% 29% 30%
Flat 58% 83% 46% 95% 53% 71% 55%

Rental Market

Rental growth has been solid, with average gross yields on a capital city houses moving from 3.9% to 4.3%, and on units, from 4.7% to 5.1%.
City Yield – Units Yield – Houses
Darwin (highest) 5.8% 5.3%
Melbourne (lowest) 4.3% 3.7%
Sydney 5.2% 4.5%
Brisbane 5.3% 4.7%
Adelaide 4.8% 4.3%
Perth 5.0% 4.6%
Canberra 5.5% 4.8%
Hobart 5.1% 5.1%

According to our members, the majority expect weekly rents to increase while vacancy rates will reduce even further, or remain flat.

Vacancy rates are expected to decrease by around 5 per cent, although there are some who believe they may be as much as 20 per cent.

WEEKLY RENTS – NEXT SIX MONTHS
Trend National WA VIC TAS QLD SA NSW/ACT

Upwards 61% 100 44% - 53% 43% 77%
Downwards 9% - 6% - - 29% 14%
Flat 30% - 50% 97% 47% 28% 9%

Rents are increasing because of low vacancy rates and they are likely to continue rising, on average 5 per cent a year, but prices will remain subdued because of wariness about Europe’s debt problem, the US recovery and China’s slow down.

GROWTH

Members surveyed believe the strongest growth in their region will come primarily from upgraders, followed by investors, then retirees and lastly, from first home buyers.

Currently, investors outnumber first home buyers by 3 to 1 and make up around 40 per cent of the total market. National investor activity hit a new peak in September 2011, with reports of 37.7 per cent of all new loans purchased in September being for investment purposes – the highest percentage seen for more than a year.

However, the benign interest rate environment anticipated throughout 2012 is expected to see first home buyer demand recover. Lower house prices in each capital city and in regional areas, as well as lending rate cuts are expected to spearhead renewed activity, and, by the end of the year, monthly first home buyer demand should be reflecting the underlying level of around 130,000 loans per annum.

It is often the movement in first home buyer demand that creates flow-on effects across the rest of the market, providing impetus for other market segments to shift, and ultimately this should seeing the market strengthen even further as 2013 approaches.
National WA VIC TAS QLD SA NSW/ACT
Upgraders 38% 20% 19% 92% 50% 43% 36%
Investors 35% 60% 62% - 13% 29% 27%
Retirees 15% - 6% - 7% 28% 28%
First home buyers 12% 20% 13% - 20% - 9%

Increased investor activity is expected to be mainly around 5 per cent on average nationally, although Victoria and South Australia expect it could be as much as 20 per cent.

INVESTOR GROWTH RATE EXPECTATIONS – NEXT SIX MONTHS
Growth National WA VIC TAS QLD SA NSW/ACT
0-1% 17% - 7% - 15% 17% 32%
1-5% 52% 83% 53% 86% 46% 50% 42%
5-10% 23% 17% 33% - 23% 33% 16%
10%+ 8% - 7% - 16% - 10%

Investor activity is expected to be driven by the drop in home prices and lower interest rates, making homes more affordable and creating opportunities for investors to grab a bargain. Strong rental returns and higher yields will also prove too attractive for investors to ignore while share market jitters remain.

COMMERCIAL PROPERTY MARKET

Australia’s national office market is said to be one of the best performing commercial property subsectors – a position it is expected to retain in 2012, with capital value growth expectations of 2.8 per cent over the next 12 months. It currently outperforms the residential property market and this trend is expected to continue for some time to come.

While the amount of empty space in Australian commercial real estate is falling, demand also appears to be moderating so rental growth is slowing with office and industrial space in Sydney and Melbourne.

An overall slow down in the Australian economy as well as concerns about financial turmoil in Europe is beginning to take its toll. Buyers have become more cautious and finance has tightened, particularly affecting Sydney’s CBD.

Current commercial market conditions have seen commercial property prices basically stabilised, with First National’s commercial members responding to the survey indicating price movements of below 5 per cent have been seen over the last six months.

According to survey respondents, a lack of upward or downward movement in commercial property prices is due mainly to stagnated growth, resulting from market uncertainty around job security and global economic conditions.

Survey respondents indicated vacancy rates were fairly stable over the last six months, although where members saw increases, they were mostly between 5 and 10 per cent.

Moving into 2012, the commercial property market will continue to be a mixed bag, very dependent on the area and local market conditions, but the majority of survey respondents said they expected the market to stabilise. Where members anticipate an increase in prices, they believed it would be in the vicinity of up to 5 per cent, and any price falls would be below 10 per cent.

It is expected to be a similar picture for commercial property rents and vacancy rates.

For the first 6 months of 2012, all First National Commercial agents responding to the survey indicated they expect interest rates to decrease, which they hope will improve consumer confidence and stimulate Self Managed Super Funds to look into commercial property for their investment dollars.

According to First National Commercial members, solar power remains the most popular energy efficient feature in a commercial property, making it more rentable.

Water recycling, the ability to open windows and motion sensor lights are also sought after energy efficient features.

Most of our commercial members said they expected sales of commercial properties to increase in 2012, as a result of their region’s attractiveness, trading up, or new jobs and increased businesses in the region.

Growth in commercial property markets is expected to come mainly from the heavy and light industrial sector, followed by the office market and medical industry.

RURAL/REGIONAL PROPERTY MARKET

Regional Australia is experiencing some of the most difficult market conditions seen. Falling prices, non-committal buyers, unrealistic vendors and consistently negative market reporting for the majority of 2011 have eroded confidence.

However, increased housing affordability, good rains in New South Wales, Queensland and Victoria, and interest rate cuts, should combine to inject some much-needed confidence into the regional housing market.

Over 2011, regional property markets have been influenced by economic factors such as the strength of the Australian dollar, commodity prices, demand for Australian produce and nervousness around job security.

As such, the market has stagnated but this is expected to change into 2012 as confidence slowly starts to build, eventually returning as the year progresses. While interest is expected to develop for rural and regional properties, especially in the lifestyle sector, according to our rural survey respondents, there is not expected to be much movement in prices.

Turnover of farming properties is expected to remain relatively low, however this will be dependent on farmer debt levels, commodity prices and government policies and changes – especially pertaining to the new carbon tax, council regulations in relation to development and zoning matters and general economic conditions both in Australia and overseas.

CHANGING MARKET CONDITIONS

The introduction of the Government’s carbon tax is expected to affect the Australian property market in 2012 with most of our members saying it would have a negative impact on the housing market, reducing buyer confidence. Other impacts could be to house prices and rents, which may increase as a result.

According to building industry groups, the new carbon tax is also expected to increase home building costs by thousands of dollars, and add 5 per cent to the cost base across the broader construction industry.

Based on industry figures, construction of a new house and land package on average involves emissions of around 240,000 tonnes of carbon dioxide. On this basis, a carbon price of $20 per tonnes would equate to an extra $6,000 in additional construction costs. Once the effect of stamp duty and GST is factored in, the cost of a new home would rise by more than $7,000.

Overall, the effect of a carbon tax on the housing industry will be to reduce housing affordability, export jobs and substitute off-shore carbon dioxide emissions for local emissions with no net benefit to the environment.

There is also nervousness around the impacts of the Minerals Resource Rent Tax due to come into effect in July 2012. While this has potential benefits for our agents, being small business operators in the main, it is unknown whether it will affect consumer confidence, buyer confidence or prices. This serves to only add further to increasing levels of uncertainty.

NSW OUTLOOK

The current trend of a steadying market for New South Wales is set to continue into 2012, with the market improving as the year progresses. Sydney is tipped to be the star performer in both the residential and commercial property sectors.

The reduction of First Home Buyer incentives on January 1, 2012, global economic conditions, housing affordability and interest rate decisions are said to be the key challenges to face the New South Wales property market for 2012, especially in the first half of the year.

New South Wales has performed well against other states, due to the market cooling off earlier than the rest of the country and as a result of having escaped major impacts from natural disasters during 2011. This positions New South Wales well for 2012, which should place it ahead in the slow recovery process.

However, exorbitant government head charges for building blocks (currently around $100,000 per standard block), is seen as stifling new housing development. This will need to be addressed for any planned land releases in 2012, especially if New South Wales is to halt the attrition of developers who currently find other states more attractive.

Hot spots for the state in 2012 are considered to be inner city, coastal areas with access to freeways and better lifestyles after work, and mining areas in regional New South Wales.

Regions performed solidly in 2011 and the Hunter Valley, in particular, distinguished itself – its economy boosted by infrastructure development and resources activity.

Singleton, Branxton and Cessnock’s median prices rose by 8, 7 and 9 per cent and many Newcastle suburbs also put in solid performances. Construction of the $1.5 billion Hunter Expressway is doubtlessly playing a role in underpinning strong confidence. Gunnedah’s median price rose by 12 per cent and Narrabri by 8 per cent.

Market Conditions

Buyer confidence has improved in recent months and this trend should continue into 2012, with the biggest influence being interest rates.

The majority of our members believe the market will gradually improve in the coming six to 12 months. Survey responses indicate buyer confidence, economic conditions, costs of living, government charges (such as stamp duty) and interest rates would be the key influencing factors on the market in 2012.

Residential Market

Property Prices

Property prices in New South Wales are expected to remain relatively flat across all sectors:

House prices – Price movements of below 5 per cent are expected for houses, which will be subject to interest rate movements, the market bottoming out and pressure being maintained on supply, although this is expected to ease somewhat during 2012.

Apartment/strata prices – There was general consensus that movements would, in the main, be below 1 per cent with some indications that they could be between 1 and 5 per cent. Apartment/strata price movements will be due to inflated prices needing to be corrected. This will result in some decreases, but a shortage of supply to meet increasing demand in some locations may produce modest price rises.

Land prices – Any increases would be mainly by up to 1 per cent, with a minor percentage of respondents saying they would be between 1 per cent and 5 per cent.

Rental Market

Vacancy rates are expected to trend downwards in 2012 in New South Wales. High demand and short supply should see vacancy rates tighten by up to 5 per cent.

In some areas, where there is an oversupply of rental properties, vacancy rates could ease mostly by below 5 per cent. Economic uncertainty and job insecurity are also anticipated to influence vacancy rates.

Weekly rents are expected to head upwards, due mainly to a shortage of supply and high demand will continue to put upward pressure on prices. The majority expect these increases to be between 1 and 5 per cent.

Any decreases in rents would be due to a combination of oversupply, economic uncertainty and job insecurity. .

Growth

Any increases in investor activity are expected to be up to 5 per cent.

According to New South Wales respondents, there is no clear driver of growth in 2012, athough upgraders were anticipated by the most, followed by investors, then retirees, and lastly from first home buyers.

Any growth in activity, investor or other, will be driven by improved affordability as a result of falling home prices, lower interest rates and improved yields coupled with better returns.

Changing Market Conditions

Interest rates are expected to decrease by NSW members, in the main, by around 0.25 to 0.5 per cent.

Lower interest rates are expected to improve buyer confidence, stimulating the market, especially first homebuyers, and building on investor momentum, which began in New South Wales at the end of 2011.

Many expect the carbon tax to have an impact on the property market, with NSW members saying it will produce higher home and rent prices and reduce consumer confidence.

Rural/Regional Market

Broadacre prices have decreased over the period 1 July 2011 to 30 November 2011, due to reduced buyer demand because of uncertainty of economic conditions and nervousness around job security.

Lifestyle properties in the New South Wales regional market are still performing quite well, with the majority of members saying their prices were up – mainly by around 10 per cent, although some said they were as much as between 20 and 50 per cent up.

Commercial Market

The New South Wales commercial property market is expected to be fairly steady in 2012.

While current commercial property prices have remained relatively stable in 2011, rents have dropped by up to 10 per cent, as a scarcity of bank financing and an uncertain economy drive businesses to try and maintain the status quo as much as possible.

There have been some small increases in vacancy rates, which have led to rents dropping slightly in those areas.

In the coming 6 months, the commercial property market in New South Wales is expected to stabilise. While demand is low, it will remain constant which means there is not a lot of room for movement in the market.

It is expected that current stocks, where available, will be leased, but few new properties will come onto the market.

Lower interest rates, which are expected to decrease in 2012, may encourage self-managed super funds to consider commercial property as a means of building their retirement wealth.

New South Wales commercial property respondents said they believed the carbon tax would provide a good basis for change, but qualified that by saying they believed the real energy efficiency changes would be made by individuals. Many believed more practical solutions need to be sought at the commercial property owner level.

The greater proportion of New South Wales commercial property respondents said between 1 and 5 per cent of their customers sought energy efficient features when looking to purchase or lease a commercial property, while others said it was between 5 and 10 per cent or more than 30 per cent of their customers.

The most popular energy efficient feature that New South Wales commercial property respondents identified as making a property more rentable was solar power, the followed equally by motion sensor lights and the ability to open windows.

Most New South Wales commercial property members believed sales would decrease in the next 12 months, due to ongoing uncertain economic conditions forcing businesses to leave the region, or lack of available finance. Any increases in sales would be due to the individual region’s attractiveness for business operators.

In New South Wales, our members said light industrial would be the commercial property sector with the most growth in 2012, followed by the office market and medical.

QUEENSLAND OUTLOOK

The Queensland property market is showing lots of potential for 2012, with signs already that a slow recovery is underway.

In the last six months, the market has been falling, but this is expected to steady as we begin 2012 and the effects of the floods and cyclones wear off, and interest rates reduce. The mining sector will underpin activity in resource rich areas in 2012 but buyers in general will remain cautious, due to uncertain economies both here and overseas.

Lower property prices and lower interest rates are increasing affordability. Spirits have lifted state-wide and with the announcement of the Commonwealth Games and the accompanying infrastructure investment, buyers should regain confidence in the market and return to the security of property investment.

The key challenge facing the state’s 2012 property market is a vastly more competitive property market, which will see stronger negotiations for better deals on price, terms, conditions and settlements.

Another challenge will arise from the axing of the stamp duty concessions for owner-occupiers on 1 August 2011. The full implications of this decision are still being played out in Queensland, but it is expected it will deter some home buyers from a purchasing decision given the costs expected to be added to the home – which may run into the thousands of dollars.

Hot spots for the state will be driven around affordability issues and are considered to be around Gladstone, Sarina, Mt Isa and most towns at, or near to, the eastern seaboard or major mining and resources centres.

Market Conditions

Queensland sales volumes dropped significantly throughout 2011, and although values have fallen too, they do not reflect the severity of the sales volumes drop.

Buyer confidence will improve in 2012 on the back of declining sentiment in the last half of 2011. Confidence has been, and will continue to be at the mercy of interest rates, local market conditions and the global economy in 2012.

Based on First National’s 2012 Property Market Outlook survey, the majority of Queensland members said they expected the market to steady. This shows the market is slowly strengthening after 80 per cent of survey respondents said the market had fallen in the latter half of 2011.

Residential Market

Property Prices

Property prices in Queensland are expected to remain relatively flat across all sectors, at least for the short term:

House prices – 47 per cent of members said prices would remain relatively steady. Any price rises will be as a result of the market bottoming out, return of investors and an ongoing lack of stock.

Apartment/strata prices – The vast majority of members expect prices to continue to fall. Only some pockets of the state anticipate any type of increase. Drops in prices would occur in areas of oversupply as well as a weak economy and increased competition forcing owners to reduce prices to capture sales. Where price increases are expected, they will be minimal and would result in areas where there is ongoing strong demand.

Land prices – Land price increases in high growth areas are expected to be as much as 5 per cent, although some areas may see falls as large as 10 per cent. High building and development costs, coupled with any lack of buyer confidence that may emerge may exert downward pressure on prices, however, in areas where supply falls short, this would be counter-balanced.

Rental Market

Vacancy rates are expected to trend downwards in 2012. Strong, rising yields and rising demand should see vacancy rates tighten by up to 5 per cent, possibly more so in strong mining areas.

In areas where there are limited to no employment opportunities, vacancy rates are expected to increase by around 5 per cent as people seek better job prospects elsewhere.

In summary, generally strong demand will keep upward pressure on weekly rents.

Growth

Any increases in investor activity are expected to be up to 5 per cent in the main.

According to Queensland members, it is the upgrader segment that is expected to produce the strongest growth in 2012, followed by first home buyers, then investors and lastly retirees.

Any growth in activity, investor or otherwise, will be driven by improved affordability, higher yields, better returns and the state’s strong resources sector.

Buyers will be particularly attracted to value for money properties that make owning their own home a compelling proposition.

Changing Market Conditions

Interest rates are anticipated to decrease in the main, (80 per cent) by between 0.25 to 0.5 per cent.

Lower interest rates will combine with lower values to further improve affordability and stimulate buyer activity.

Most Queensland members expect an increase in mortgage defaults as overcommitted home owners continue to suffer financial stresses as costs of living continue to rise. Job losses in certain areas could also be a contributing factor for some.

The carbon tax is expected to have an impact on the property market, somewhat countering affordability gains, as it potentially contributes to rising living and housing costs.

Commercial Market

The Queensland commercial property market is expected to be fairly steady in 2012, offering investors weak prospects with low growth forecasts – representing the lowest in Australia. The state’s office market is expected to continue to lag behind the rest of the country throughout 2012.

Commercial property prices have remained relatively stable in 2011, with some increases of up to 5 per cent but also decreases of around 15 per cent, due to economic conditions and lack of bank funding.

There have been some small increases in vacancy rates. Where decreases have been experienced, they have been in excess of 15 per cent, due to market conditions, high infrastructure costs and reduced demand.

Rents, however, have risen by between 10 and 15 per cent.

In the coming 6 months, commercial property prices are expected to fall by between 5 and 10 per cent due to the scarcity of bank funding and continuing high council infrastructure costs.

Vacancy rates in 2012 are set to rise by up to 5 per cent, while rents are expected to fall by up to 10 per cent, losing any gains they made at the end of 2011. Rent prices are expected to stabilise during the year.

Lower interest rates, which are expected to further decrease in 2012, may increase the appeal of commercial properties for investors, particularly self-managed super funds.

The introduction of the carbon tax is not expected to significantly impact on the Queensland commercial property market as it is expected that more practical solutions will be required at the commercial property owner level to make any real difference.

Solar power was considered the energy efficient feature that would make a commercial property more rentable, followed by motion sensor lights and the ability to open windows.

Sales were expected to increase by all Queensland survey respondents, as a result of new jobs and businesses being attracted to the region and trading up by existing business operators.

In Queensland, most commercial property respondents said light industrial would be the sector showing the most growth in 2012, followed by the office market and medical.

SOUTH AUSTRALIA OUTLOOK

The South Australia property market is set to moderate even further in 2012, following a fairly steady but falling market in the second half of 2011.

Stamp duty costs and inadequate first home buyer stimulus or concessions continue to stifle the market and as 2012 progresses, consumer confidence will continue to be a challenge for the market to overcome.

However, anticipated cuts in interest rates will restore some confidence and BHP’s investment in the expansion of Olympic Dam will be a positive boost to the South Australia economy.

Bowden is considered a hot spot for the state in 2012 because of its amenities and lifestyle appeal. City fringe areas will also prove popular for home buyers.

Robe, which earlier in the decade was the second fastest growing town in South Australia, is anticipated to continue to benefit from sea-changers along with Goolwa.

Market Conditions

Buyer confidence has fallen in recent months but is expected to improve as we enter 2012, as a result of reducing interest rates.

Based on First National’s 2012 Property Market Outlook survey, ongoing lack of buyer confidence, the economic outlook and interest rate cuts will see the state’s market steady even further. Any movements will be relatively marginal.

Residential Market

Property Prices

Property prices in SA are expected to remain relatively flat across all sectors:

House prices – Any potential decreases are seen as a result of ongoing lack of confidence and market conditions. Decreases, in the main, will keep below 1 per cent

Apartment/strata prices – While prices are expected to remain flat, there is the potential or small decreases in some pockets of the state. There was a general consensus among members that movements would in the main be below 1 per cent with some indications they could be between 1 and 5 per cent. Apartment/strata price increases, should there be any, would be a result of improved investment yields, which will also serve to moderate the market to some extent.

Land prices – Decreases are expected to be mainly by up to 1 per cent, with some members saying they could be between 5 per cent and 20 per cent. Land price movements were seen as a result of a lack of demand.

Rental Market

Vacancy rates are expected to remain flat, or possibly trend downwards in 2012, according to SA survey respondents. Strengthening demand and a contracting supply will see rates ease by up to 5 per cent. For most respondents, vacancy rates would increase by up to 5 per cent due to uncertainty surrounding the economy and job security coupled with an oversupply in some areas.

Weekly rents are expected to head upwards or be flat, according to 72 per cent, especially in mining and resource rich areas. Weekly rent movements are expected to be within 5 per cent, with the greater proportion of respondents saying they would be less than 1 per cent.

Growth

Any increases in investor activity are expected to be around 5 per cent.

Investor activity growth will be driven by improved affordability as a result of falling prices, lower interest rates, and higher rents.

According to SA respondents, affordability and lower prices will generate the most growth in the upgrader segment in 2012 followed by investors and retirees.

First homebuyers will be conspicuously absent from the market for the first six months of the year, possibly in the hope that the market has not yet bottomed out and they could still get more for their hard earned savings.

Changing Market Conditions

Interest rates are expected to decrease by SA survey respondents with movements in the vicinity of 0.25 to 0.5 per cent which is expected to instil more confidence into buyers and stimulate activity across the board especially for investors, and potentially for first home buyers.

The carbon tax is expected to have an impact on the property market, with 67 per cent of SA respondents saying it will produce higher home and rent prices and reduce consumer confidence.

Commercial Market

The South Australia commercial property market is expected to remain relatively stable, with increasing pressure in some areas where demand is met with no supply.

Demand is particularly strong for prime quality stock, driven by improved standards of accommodation, better services and energy efficient features.

Yields, having been stable at between 7.5 per cent and 9.5 per cent, are expected to tighten to more traditional levels in the coming 12 months.

According to the First National South Australia commercial property survey respondents, commercial property prices have been fairly stable with any rises kept to below 5 per cent.

Vacancy rates have also remained stable during the year, with any drops kept to below 5 per cent due to reduced demand. Rent movements have been to be kept to below 5 per cent in 2011.

This trend in commercial property is expected to continue into 2012.

Interest rates are expected to decrease, which it is hoped will increase buyer confidence.

The carbon tax is considered to potentially act as a barrier to any real change in attitudes and behaviours towards energy features in commercial property – although, some business operators are wising up to the many benefits they offer and ‘A’ grade properties are experiencing much more demand.

Solar power is considered the leading energy efficient feature which will make a commercial property more rentable in South Australia.

Sales of commercial properties in South Australia are expected to increase as more business operators are drawn by the state’s attractiveness.

Most growth in the state’s commercial property market in 2012 will come from light industrial.

TASMANIA OUTLOOK

The Tasmania 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 state’s economic prospects improve.

The key challenges facing the state’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 home buyers ceased in the middle of 2011 and this will continue to impact on first home buyers 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.

Hot spots for the state will be centred around amenities and lifestyle appeal, especially for inner city Hobart and Launceston.

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.

Based on First National’s 2012 Property Market Outlook survey, Tasmanian respondents said they expected the market to steady in 2012.

Residential Market

Property Prices

Property prices in Tasmania 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. 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.

According to Tasmanian survey respondents, it is the upgrader segment that 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 Tasmania, 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.

VICTORIA OUTLOOK

The Victoria property market outlook for 2012 will be quite subdued and while there are signs of a recovery on the way, there is still some distance to go. The current falling market in Victoria is set to rebound in 2012, as the market steadies, after price corrections finally bring values to more realistic levels.

Sales activity in Victoria is strong, but prices are dropping following substantial growth in house values between 2007 and 2011 of 45 per cent.

Price growth will be low, due to record levels of new dwellings and recent state government land releases for new housing developments. These have started to address previous year’s lack of supply.

There has been a 65 per cent increase in housing stock as a result of the record building levels over the past year, and, it is hoped this will continue into the early part of 2012.

Challenges for the 2012 property market are job security as well as business and Government leadership. Companies need to show confidence and continue to invest to make things happen. For this to occur, financial institutions need to be more flexible and encourage growth.

Planning also continues to be an issue for many municipalities across the State.

Victoria has already seen an increase in mortgage defaults since August 2011, as a result of increased pressure from financial institutions. It is expected this trend will continue in the next 6 months, influenced by job losses and an ongoing inability to meet big mortgage commitments when incomes are reduced or lost.

2012 hot spots for the state will be driven by amenities and lifestyle appeal and are considered to be inner city Melbourne as well as diverse regional areas with good infrastructure, well serviced by major transport routes such as Shepparton, Ballarat and Wangaratta.

The western and eastern growth corridors of Melbourne will also continue to show modest growth, particularly Werribee, Melton, Sunbury, Warragul and Gippsland.

Market Conditions

In the latter half of 2011, consumer confidence fell but it is anticipated to improve in the first 6 months of 2012 as a result of interest rates falling, the global economy strengthening and affordability improving.

Victorian members said the market would steady, although a minority said they thought it would still fall.

Survey responses indicate gradually improving buyer confidence is expected to be the result of lower interest rates and increased home affordability. These will be the key influencing factors on the market in 2012.

Residential Market

Property Prices

Victoria’s property prices are expected to remain relatively flat across all sectors, with some potential downward trends:

House prices – Downward movements, in the main, are expected to be kept below 5 per cent.

Apartment/strata prices – The subdued market would be as a result of oversupply and low demand.

Land prices –In the main, price movements would be below 5 per cent as new subdivision releases ease the supply situation in some areas. Where supply is still short, price increases are being experienced, but these should level out in 2012.

Rental Market

Vacancy rates are a bit of a mixed bag with 38 per cent of Victoria respondents saying they would trend upwards, easing by up to 5 per cent in the main; 25 per cent said they would trend downwards by 5 per cent; and 37 per cent saying they would remain flat.

As affordability improves, more people are opting to buy in areas where supply is short for good quality rentals. As a result, there is increased competition among renters. In a soft market, people choose to rent rather than sell so while vacancy rates may tighten, the changes will only be marginal.

Weekly rents are expected to head upwards or remain flat.

Growth

Any increases in investor activity are expected to be in the vicinity of 5 per cent.

Investor activity is expected to be the strongest growth segment, driven by improved affordability and attractiveness of regional Victoria, along with improved yields and rental returns.

This would be followed by upgraders, then first homebuyers, and then retirees.

Changing Market Conditions

Interest rates are expected to decrease in the main, by between 0.25 to 0.5 per cent although a few said they could be as much as between 1 and 2 per cent.

Lower interest rates are expected to impact on buyer confidence, stimulating the market, especially investors, building on the momentum generated towards the end of 2011.

The carbon tax is expected to have an impact on the property market, potentially producing higher home and rent prices, as well as reducing consumer confidence.

The Victorian government has been able to keep a lid on government charges per block of land released to around $20,000, which has helped stimulate the new housing market.

Commercial Market

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

Melbourne’s office market is stronger than Sydney and its prospects over the next two years alone are bright, with a good balance struck between growth in rentals and affordability.

The state’s commercial property market is expected to remain strong in 2012, with very little change in market conditions although there is the potential for prices to rise by up to 5 per cent.

Vacancy rates may rise by up to 5 per cent, as supply is currently meeting demand and rents will begin to stabilise, perhaps bringing them in line with other states.

Lower interest rates, which are expected to further decrease in 2012, should strengthen the commercial property market and create more buyer interest.

The introduction of the carbon tax is not expected to impact the Victorian commercial property market to any great extent. Survey respondents were of the belief that more practical solutions at the property owner level are required.

Half the Victorian respondents said between 1 and 5 per cent of customers seek energy efficient features when looking to lease a commercial property, the most popular attributes making properties more rentable being solar power and water recycling.

Sales of commercial properties in Victoria are expected to increase in the coming 12 months, due to new jobs or business growth as a result of the region’s attractiveness or trading up by existing local businesses.

Heavy industry and the office market sectors are expected to represent the strongest growth areas for the Victorian commercial property market.

WESTERN AUSTRALIA OUTLOOK

The Western Australia property market outlook for 2012 is that it will continue to perform steadily, following quite an unstable market in the latter half of 2011.

Improving market conditions and the market bottoming out will underpin the Western Australia property market for the coming 12 months.

Affordability will drive property hot spots for the state. With the strength of the Western Australia economy and a decrease in land and construction costs, it is a great time to reconsider investing in Western Australia.

In the Perth market, hot spots will appear around areas that have had the largest price reductions in the last 12 months.

Regions like Peel now offer some great opportunities, as do Northam, where current prices are extremely low.

The Western Australia regional centres in the Mid and North West still offer some great rental returns.

The key challenges in 2012 will be new government policies, such as the flow on effects of the new carbon tax, uncertainty surrounding the world economy and ongoing regional investments.

The impending introduction of the Minerals Resource Rent Tax represents another challenge for the WA property market to contend with. For the state’s First National members, as small business operators, it has the potential to generate some real benefits in terms of sharing in the prosperity of the mining boom. It also has potential positives for self-managed super funds that will have more available finances as a result of the increase from 9 per cent to 12 per cent superannuation.

However, the Tax also has the potential to place an additional burden on small business operators, such as our members, on having to pay the increased super for their employees, and should Self Managed Super Fund and investor activity increase, it may put upward pressure on prices and rents due to increased competition.

Market Conditions

Buyer confidence is expected to continue to increase into 2012 as a result of improved market conditions and lower interest rates.

Western Australian members said the market would steady, although 17 per cent said they thought it would rise.

Survey responses indicate improving buyer confidence and changing market conditions, such as lower interest rates and a strengthening resources sector would be the key influencing factors on the market in 2012.

Residential Market

Property Prices

Property prices for houses and land in Western Australia are expected to remain relatively flat, while apartments/strata property prices are expected to perform quite strongly:

House prices – While 50 per cent said prices would remain flat, around a third said they would head upwards. Any price movements will, in the main, be kept to below 5 per cent.

Apartment/strata prices – respondents were evenly split between prices remaining flat, increasing or decreasing. Movements would be below 5 per cent due to low demand and difficult selling conditions.

Land prices – most said prices would be flat however, 17 per cent said they would increase. Low demand and excessive development costs will curtail price activity, while increased first homebuyer activity may help push up prices by up to 1 per cent.

Rental Market

Vacancy rates in Western Australia are expected to be flat or trend downwards in 2012 as conditions tighten due to growing demand and diminishing supply. Some markets are already at very low vacancies and there is not much room for movement.

Movements in vacancy rates are expected to be below 1 per cent.

Weekly rents are expected to head upwards due to a tight rental market. Rents are expected to increase by between 1 and 5 per cent in the main.

Growth

Any increases in investor activity are expected to be between 1 and 5 per cent, driven by falling house prices, better yields and improved returns.

Investors will spearhead growth activity in the Western Australia residential market, followed by upgraders and then first home buyers.

Growth is expected to be driven by the strong resources sector in Western Australia providing plenty of employment opportunities and luring more workers to the region.

Changing Market Conditions

Interest rates are expected to decrease by between 0.25 to 0.5 per cent by most WA members.

Lower interest rates are expected to strengthen the Western Australia property market by stimulating activity, particularly among investors.

Respondents were evenly split on whether the carbon tax would impact on the property market. Where an impact was expected, most said it would reduce consumer confidence while some said it would produce higher rents.

Rural/Regional Market

Late rains in Western Australia have affected parts of the rural sector, which earlier this season was looking at bumper crops. The outcome will depend on the damage caused by these seasonal factors, which may affect the rural economy and, ultimately, buyer confidence.

Commercial Market

The Western Australia office market will strengthen as the resources boom drives up demand for office space in 2012.

Commercial property prices are expected to increase by around 5 per cent due to an increase in activity, high costs of developing new land releases and increased demand.

Lower interest rates, which are expected to continue to decrease in 2012, should improve confidence in the Western Australia commercial property market.

The introduction of the carbon tax is considered a good place according to Western Australia members, but the real difference

Indicators Strong For Property Market Recovery in 2012

Indicators Strong For Property Market Recovery in 2012
First National Real Estate

Indications that a property market recovery is likely in 2012 are strong, although it will be a slow and gradual process, with first home buyers beginning to stir, but not fully confident to part with their hard earned savings, and investors having already capitalised on prime market conditions.

According to First National CEO, Ray Ellis, this is the picture based on expectations of interest rates, market movements and local area member knowledge, underpinned by improving consumer sentiment as detailed in First National Real Estate’s 2012 Property Market Outlook released this week.

“Home prices bottoming out, falling interest rates and improving affordability are all working together and may prove the stimulus the market has been waiting for to get it moving again,” Mr Ellis said.

“In turn, increased interest and activity in the property market will see it strengthen further especially with investors who have already shown signs of gaining confidence at the end of 2011.”

Based on the survey findings highlighted in the Outlook, NSW should see an improving market; Victoria is showing signs of recovery, but still has a way to go, Queensland is demonstrating it has lots of potential and is finally on its way back from the devastating floods and cyclones it experienced in 2011; WA and NT will continue to be strong performers especially in resource rich areas; Tasmania is marking time but will pick up as it progresses through 2012; and South Australia will continue to be a solid performer.

All First National state chairpersons agreed buyer confidence should improve in the next 6 months, as a result of lower interest rates, improving local market conditions and a more stable global economy.

For some states, worsening global economic conditions and possible job losses have resulted in an increase in mortgage defaults and this trend may continue until more certainty and stability returns to the US, European and Chinese economies.

According to the state chairpersons, the key challenges for the Australian property market in 2012 will be focused on sustaining a strengthening consumer confidence, which are at the mercy of ongoing stability in global economies and job security; government policy and legislation (especially the introduction for the carbon tax and reduced government assistance for first home buyers); and interest rate movements.

While demand is still expected to remain relatively soft into 2012, a recent sharp rise in Westpac’s time to buy a dwelling index may be the cue for a housing upturn.

“This will, however, be dependent on ongoing interest rate cuts, job security and resulting consumer sentiment,” Mr Ellis said.

Interest rates are expected to drop further with rate cuts of up to 0.5 per cent, although some say it could be as much as 75 to 100 basis points.

“Any future interest rate cuts are expected to stimulate buyer activity as confidence improves and refinancing options broaden, ultimately strengthening the property market,” Mr Ellis said.

“With the Australian housing market now affected by daily international updates and commentary, confidence can change at a moment’s notice.”

Residential markets are expected to remain initially subdued in 2012 as consumers seek to pay off debts. However, falling house prices and interest rates should stimulate some activity, particularly among bargain hunters who have been squirreling away savings and are now cashed up.

“Our members believe the strongest growth in their regions will come primarily from upgraders, followed by investors, then retirees and lastly from first home buyers,” Mr Ellis said.

Australia’s national office market is one of the best performing commercial property subsectors –with capital value growth expectations of 2.8 per cent over the next 12 months. It currently outperforms the residential property market and this trend is expected to continue for some time to come.

“Into 2012, the commercial property market will continue to be a mixed bag, very reliant on the area and local market conditions, but the majority of members said they expected the market to stabilise,” Mr Ellis said.

According to First National Commercial members, solar power remains the most popular energy efficient feature in a commercial property, making it more rentable.

Water recycling, the ability to open windows and motion sensor lights are also sought after energy efficient features.

“Around 75 per cent of respondents said they expected sales of commercial properties to increase in 2012, as a result of their region’s attractiveness, trading up or new jobs and increased businesses in the region,” Mr Ellis said.

Growth in commercial property markets is expected to come mainly from the heavy and light industrial sector, followed by the office market and medical industry.

However, improving housing affordability and interest rate cuts should inject some much-needed confidence into the regional housing market.

“Over 2011, the regional property markets have been influenced by economic factors such as the strength of the Australian dollar value, commodity prices, demand for Australian products and nervousness around job security,” Mr Ellis said.

“The regional market has stagnated to some degree but this is expected to steady into 2012 as confidence slowly starts to build, eventually returning as the year progresses.”

Safe decision can make the most of your holiday

Safe decision can make the most of your holiday
First National Real Estate

For people heading off on holidays, First National Real Estate’s National Communications Manager, Mr Stewart Bunn, says to be careful to make sure homes are left safe and secure and to think carefully too, if considering a holiday home purchase.

“Holidays are great times for criminals to get to work if they believe a home is empty. It’s also a time when vacationers ponder their existence as they sit back and enjoy the relaxing lifestyle on offer in popular holiday spots,” Mr Bunn said.

“No one likes returning from their holiday to find dead plants, over stuffed mail boxes, or even worse, stolen or broken treasures from a burglary.

“But they do like to think about ways of making the holiday euphoria last longer than the few weeks away.”

Mr Bunn said with some careful planning and forward thinking, home owners can find they peace of mind they seek whether they are leaving for vacation or looking for ways to extend it.

“Anyone considering heading off for a well-deserved rest should start now to put some simple, cost effective measures in place for while they are away,” Mr Bunn said.

“Unattended homes and cars act as green lights for burglars, which is why it’s important to take as many precautions as you can to ensure you don’t return from your holiday to find you’re a victim of crime.

“Turning on security lights or alarm systems is a great place to start, but the best thing you can do is ask the assistance of a trusted friend, neighbour or family member to collect the mail each day, put out bins at collection times, park a car in the driveway or adjust curtains and blinds.

“This helps give an impression of someone still being at home and deters unfriendly and unwelcome visitors.”

According to Mr Bunn, a common trend for people on vacation is to fall in love with the holiday spot and look at purchasing in the area to either move into, or retire to, at some later stage in their lives.

“It is easy to get carried away with the relaxing lifestyle of a holiday home and many people want to either relive this time away, or adopt it as a new way of life,” Mr Bunn said.

“But, purchasing a holiday home should only be done after careful planning and consideration of all the factors, beyond the pleasant experience.

“A holiday home purchase comes with some financial considerations such as use or purpose of the home when the owner is not there. These matters have potential long-term impacts and tax implications.”

Holiday homes can attract capital gains tax on the difference between the purchase price and the later sale price, should the decision to sell ever arise.

“However, many holiday home owners neglect to expand their purchase cost base by adding the expenses involved with holding the property, including council rates and water bills, major extensions or repairs, strata levies, garden maintenance and interest on mortgage repayments,” Mr Bunn said.

“This can reduce the taxable component of the sale by many thousands of dollars, which is why it is important to ensure you keep all receipts for any expenditure on the house, including legal fees, stamp duty and any other costs relating to the purchase.”

Mr Bunn advises when looking to purchase a holiday home, to approach it in the same way you would any property investment and make sure it is in the right location.

“A holiday home may also double as an investment property, given it is vacant for most of the year Mr Bunn said.

“So it is important to ensure it is close to transport or employment opportunities, especially if it is in regional areas, otherwise it will be less desirable as an accommodation option for renters.”

There is a lot more holiday property advice says Mr Bunn and your local First National team can offer assistance.

For further information contact Stewart Bunn, National Communications Manager, First National Real Estate, on 0413 624 317

Renting versus buying - The housing dilemma

Renting versus buying - The housing dilemma
First National Real Estate

First National Real Estate’s National Communications Manager, Mr Stewart Bunn, says current market conditions, coupled with increasing housing affordability, is causing a rental dilemma. Many renters are questioning if now is the time to stretch their budgets and commit to buying their own home.

“With lowering interest rates and falling house prices, home buying is proving almost too attractive for many renters, but serious consideration needs to be given to the person’s individual and financial situation to ensure they make the right decision,” Mr Bunn said.

“It may appear, on the surface, that purchasing a home may make more economic sense for those doing it tough, where the monthly mortgage is not too far off what they are currently paying for rent, but a closer look may reveal that incidental costs and a small change in circumstances could lead to an untenable situation.”

According to Mr Bunn, the advantages of each housing option should be weighed against the drawbacks to find the one that best suits their specific needs and situation.

“Renting offers great flexibility with the option to relocate from home to home and area to area, as the need arises, which is not the case with buying a property,” Mr Bunn said.

“If finances get tight, or the home situation changes for any reason, it is far harder to just pick up and go if you own your own home.

“Renting is also often a cheaper alternative to buying, especially in the inner city areas particularly favoured by Gen Y-ers who want that urban lifestyle close to where they work.”

While vacancy rates continue to be under pressure, the fact remains that renting may still be more affordable, with monthly rental payments usually less than a mortgage repayment for a comparable property and without the other incidental costs which can be incurred as a homeowner.

“One of the greatest financial and stress-free advantages of renting is that property maintenance costs, repairs, rates and insurance bills are the responsibility of the landlord, not the renter,” Mr Bunn said.

Despite these many advantages of renting a property, there are some disadvantages which will make buying preferable, particularly in light of escalating monthly rentals. The most obvious one being when renting, it is not possible to put your personal stamp on a property to suit your individual style and design preferences.

“There is also the inconvenience, and in some cases pressure, of knowing your landlord has the right to inspect their property whenever they wish, with sufficient notice, potentially disturbing the renter’s privacy,” Mr Bunn said.

“But the biggest disadvantage of renting is that the property can never be paid off by the tenant, making the money lost for good, without any chance of recovering when the property is sold.”

Ultimately, this is the biggest difference and that is where advice should be sought to determine the short and long-term impact on personal net wealth and cash flow over a lifetime between renting and buying.

“Usually, the decision will be to purchase a home, but it will come down to making sure people buy well and buy right, at the best time for their own individual circumstances,” Mr Bunn said.

“This is where we at First National can really help. We offer advice and assistance with the necessary knowledge, experience and skills to understand the market, its trends and its weaknesses and opportunities,” Mr Bunn said.

“Despite some government assistance packages for both renters and buyers being abolished or having become obsolete, such as the First Home Owners’ Grant Boost and the National Affordability Rental Assistance Scheme, it is important to remember there are still incentives for potential home buyers and renters to take advantage of, including state government financial assistance packages.

“So home buyers and renters need to learn to make the most of the services we have available, to ensure they make the most of their finances over the long term. There are many creative ways in which to save for that first purchase whilst renting and we can help explain all the options available.”

For further information contact Stewart Bunn, National Communications Manager, First National Real Estate, on 0413 624 317

Industry roundtable discusses need for VPA

Industry roundtable discusses need for VPA
First National Real Estate

Principals need be courageous to implement vendor paid advertising (VPA) in areas where it isn’t the norm, one industry leader claimed at the inaugural Real Estate Business Executive Roundtable, held yesterday.

The industry-first event, sponsored by Macquarie Bank, bought together Australia’s leading real estate executives to debate the key issues impacting the industry while share knowledge, insights and best practice.

According to Ray Ellis, CEO at First National Real Estate, there are areas around Australia where vendor paid advertising was not applicable, yet some pioneering agents were bucking the trend and realigning expectations in those locations.

“We’ve had examples where offices have started it, and it’s become the norm,” he said. “They just had the courage to do it to start with.”

Stephen Nell, Ray White NSW CEO, agreed.

“Can you get people to pay for ads in different markets? I don’t see why you wouldn’t,” he said. “That’s a skill issue. And obviously it’s on everyone’s agenda to be better at it.”

The roundtable is a unique concept for the real estate industry, offering a neutral ground for discussing issues shaping the profession.

Shaun Bassett, head of the residential real estate segment at Macquarie Relationship Banking, said the Real Estate Business Executive Roundtable is an essential platform for driving thought leadership in the industry.

“The roundtable drilled into the challenges faced by the industry and revealed insights into a variety of strategies that are driving each of the participants on their own unique path to continued success,” he said.

“It touched on the outlook for the industry in the coming years, being shaped by technology, regulatory reform and new talent coming through the ranks.”

The event brought together Peter Baldwin, chief auctioneer and director at Richardson & Wrench; Ray Ellis, CEO at First National Real Estate; Douglas Driscoll, CEO at Starr Partners; Stephen Nell, Ray White NSW CEO; Sadhana Smiles, Harcourts NSW CEO; Mike McCarthy, director and CEO at Barry Plant; Chris Mourd, business development manager at LJ Hooker; and Shaun Bassett, head of the residential real estate segment at Macquarie Relationship Banking.

Other topics that were discussed included:

The greatest challenges to an agency’s profit and revenue in 2012

Best sources for profit and/or revenue growth

Attracting and retaining new recruits

Training and education programs that principals should be undertaking

How technology is driving industry development

Strategies for reducing days on market

The impact of national licensing will have a major impact on the real estate industry

The future for independent agencies in the Australian marketplace

The full report from the Executive Roundtable will be published in the upcoming Real Estate Business December/January issue – on desks early next month. Video excerpts from the event will also be available at www.rebonline.com.au at the same time.

SOURCE: Real Estate Business

First National Commercial sets record for Darwin

First National Commercial sets record for Darwin
First National Real Estate

First National Commercial O’Donoghues has set a new record for Darwin CBD commercial sales with the sale of Jacana House for $58,750,000.

The nine-story 39 Wood Street building was built and owned by successful local development company, Gwello Developments. Uniquely, it has a 5 Green Stars rating for design, 5.5 stars for Nabers energy efficiency and is the leading green office space in the Northern Territory. A raft of Federal Government departments as well as listed companies currently calls the building home.

First National Commercial O’Donoghues says that Jacana House was not for sale but, due to strong investment demand, the agency approached the owner with a solid offer.

‘Our residential and commercial business maintains close contact with buyers nationally and we’re not short of investors who are very interested in Darwin opportunities’ says First National Commercial O’Donoghues principal, Jeremy O’Donoghue.

A transport logistics investor, formerly from Darwin, seized the opportunity to secure the ‘A’ grade and environmentally friendly office building through First National Commercial O’Donoghues because no other suitable commercial properties were listed for sale.

‘Jacana House is the only commercial high-rise in Darwin with such a strong energy efficiency rating and it will soon have the ‘As Built Green Star’ rating as well,’ says Mr O’Donoghue.

‘It is an extremely energy efficient building. An enormous amount of thought and effort has gone into the design and construction, which incorporates the requirements of the Green Building Council of Australia.

‘The buyer was seeking a solid, long-term investment with blue chip tenants so we were very comfortable recommending Jacana House as a potential target’.

The Darwin property market is expected to provide exceptional returns for investors for the next few years and commercial property investment may well be leading the pack. Major new projects are coming on line in early 2012.

‘Consumer confidence has hit a 12 month high and is expected to strengthen further as a result of the recent drop in interest rates, the US Presidential visit and the range of projects about to commence. This sale represents clear confirmation of the considerable confidence investors have in Darwin’s future projects.’ says Mr O’Donoghue.

Issued by: First National Commercial O’Donoghues

For further information:

Principal, Jeremy O’Donoghue on (08) 8942 8942 or 0407 080 067

Lend a hand for renters

Lend a hand for renters
First National Real Estate

First National Real Estate National Communications Manager, Mr Stewart Bunn says government needs to do more to support renters and provide better assistance than is currently offered through the National Rental Affordability Scheme (NRAS).

“While we support NRAS, it is no longer enough in its existing form, to meet rising rents, leaving those most in need of assistance flailing in their efforts to make ends meet,” Mr Bunn said.

“It could soon be the case that with falling house prices, lower interest rates and reduced consumer confidence, purchasing a home will make more economic sense for those doing it tough, where the monthly mortgage is not too far off what they are paying for rent.”

According to Mr Bunn, evidence of improving housing affordability can be garnered through recent home value index results.

“Home values recently posted the best results in seven months and the recent cuts to interest rates, along with talk there may be even further drops, is resulting in NRAS losing some of its validity as an assistance package, especially for those who are finding it difficult to come up with the rent each week or month,” Mr Bunn said.

“What the government needs to do is look at changing NRAS so it has more relevance and achieves what it set out to do, or consider other forms of assistance such as bringing back some of the grants and other incentives that were obviously phased out too soon.”

Mr Bunn said although it is good news for the property market that home buyer activity is increasing as a result of the market conditions, it is not good when it is done at the expense of those renters who can least afford it.

“It is always encouraging to hear that more people are realising their dreams of home ownership, but there also exists the reality that there are those in our community who are forced into rental accommodation and can ill afford to fall behind in any way at all in keeping pace with rental increases,” Mr Bunn said.

“In these situations, they need access to assistance schemes that meet their circumstances and offer real assistance, which NRAS initially did, but has since failed to recognise the growing demand of assistance required, making it virtually obsolete.

“We don’t see property market conditions altering too dramatically in the near future, and certainly not to the extent that they will improve the situation for struggling renters.”

Make property investment rock solid

Make property investment rock solid
First National Real Estate

Real estate offers many benefits for investors, and its continued strong performance has made it the preferred investment option for many Australians. But, First National Real Estate National Communications Manager, Mr Stewart Bunn, says it takes more than good luck to maximise your returns from investment properties.

“Property investment is still a popular option, representing a rock solid, secure and long-term method of creating wealth and growing capital,” Mr Bunn said.

“In fact, property has delivered an average 12 per cent return for the past 24 years, even before tax and maintenance costs, so its not surprising that a recent survey shows 59 per cent of home buyers and investors plan to purchase an investment property in the next year.

“That’s probably because Australian property performed exceptionally well throughout the GFC and still shows great resilience in the face of share market gyrations.

“But for investors to maximise the financial benefits of their property they need to look at their investment as more than just collecting rent or striking a deal on management fees.”

According to Mr Bunn, the crucial component for a successful rental property yield is to appoint a trusted and reliable property manager.

“A good property manager is one that provides expert advice on the opportunities available for them to take advantage of to improve the yield of their property investment portfolios,” Mr Bunn said.

“At First National, we have an in-depth knowledge of the local market and can assist with the two most important criteria when choosing an investment property – location and quality.”

Mr Bunn said properties located close to transport, schools, place of work, shops and recreational facilities are in greater demand and usually command a higher rental.
However, investors should not be afraid to look beyond inner city properties as lower priced outer suburbs can produce higher yields and frequently enjoy strong demand from prospective tenants.

“It is also wise to maintain your asset in good repair and ensure it is well presented. That way, rent is maximised, vacancy periods reduced and a high standard of tenant is attracted, who will ensure their rent is paid on time.

“Sometimes, simple improvements like a fresh coat of paint in bathrooms and kitchens, or installing new window coverings, can make the world of difference.”

As an experienced property manager, supported by rigorous processes and systems, First National provides the highest standard of advice to investors, backed by leading edge technologies that match tenants to vacant properties and comprehensive marketing programs.

“First National uses the latest technologies and prides itself on getting the best results in the shortest time,” Mr Bunn said.

“A professionally prepared tax depreciation schedule can also play an important role in the efficient management of your investment.”

For further information contact Stewart Bunn, National Communications Manager, First National Real Estate, on 0413 624 317

ATO yet to alter SMSF rules for renovations

ATO yet to alter SMSF rules for renovations
First National Real Estate

The Australian Taxation Office (ATO) has yet to alter its intepretation of rules around using self-managed superannuation funds (SMSFs) to renovate property, despite recent reports that may suggest otherwise.

A recent First National Real Estate media release suggested that funds from within a SMSF could now be used to renovate properties.

Instead, First National Real Estate can confirm that the ATO has issued a draft ruling, and at this stage it's just accepting comments on how it proposes to change its interpretation of the relevant SMSF rules.

The draft ruling can be obtained from the ATO website and comments are being accepted until October 28. A copy of the draft ruling can be obtained using the short link included below.

First National Real Estate property managers continue to prepare for the anticipated increase in interest in property from SMSF investors.

Draft ruling: http://bit.ly/nAJP3E

Issued by: First National Real Estate

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

Agents should rate in energy scheme

Agents should rate in energy scheme
First National Real Estate

As Federal Parliament passes the Carbon Tax, legislators and policy makers should now turn their minds to making a viable and adoptable national mandatory disclosure energy rating scheme says Stewart Bunn, communications manager of First National Real Estate.

“We support mandatory disclosure of a home’s energy rating, which is where this nation, and the rest of the world, is heading,” Mr Bunn said.

“But we need to make sure the proper policy and regulations are in place, and that the appropriate people play the right roles.”

According to Mr Bunn, the crucial component to success is a national and consistent approach.

“Each state already has a ratings scheme in place, but there are no national standards and regulations,” Mr Bunn said.

“A number of studies conducted by both industry and academia have found ratings and results to be inconsistent. This can be due to software flaws or subjective interpretation of results and can be compounded by a lack of correlation between the actual energy performance of houses and their star ratings.

Mr Bunn said the real solution to the mandatory disclosure issue lay with government and industry working together.

“Government needs to get the scheme right and put in place the appropriate financial support, resources and implementation,” Mr Bunn said.

“That means getting the regulations and policies passed, educating the general public on the benefits of energy efficiency ratings and funding ongoing research and development.

“It then falls to real estate agents to promote the ratings through the marketing of the properties they have on their books to buyers and lessors.”

The real question then, says Mr Bunn, is how assessors are selected, trained and accredited. It is important that they are independent of the real estate profession so no potential conflict of interest is perceived by consumers.

“This is the tricky part of the equation,” Mr Bunn said.

The First National Real Estate network is committed to environmentally efficient principles and prides itself on its green initiatives – it fully supports a national mandatory disclosure of energy efficient ratings scheme, as long as all players act in the interest of the environment.

For further information contact Stewart Bunn, National Communications Manager, on 1800 032 332

Look beyond fees for effective management

Look beyond fees for effective management
First National Real Estate

Nearly 150 of First National Real Estate’s property managers recently gathered in Melbourne for the network’s annual Property Management Conference – ‘Network, Share, Evolve’.

The professional development forum was chiefly focused on issues affecting the efficient management of millions of dollars of property investments nationally.

Because of changes to Australian tax law, investors can now borrow for the purposes of property investment and this has resulted in an exponential increase in the amount of property acquired by Self Managed Superannuation Funds (SMSFs). As a result, property managers must be prepared says First National Real Estate’s Property and Marketing Manager, Amanda Kohler.

‘A recent tax ruling now allows trustees to use money in their fund to renovate property as well. That means property managers need to be equipped to guide landlords who own investments, as part of their SMSF, toward appropriate, cost effective renovations, using licensed tradespeople. First National Real Estate has taken steps to assure that its property managers are aware of qualified specialists in the industry and can point customers towards a range of providers.’

According to First National, most property investors spend too little time assessing the skills of their property manager and need to look beyond fees when choosing who will manage their investment portfolio.

‘Property Managers frequently manage real estate portfolios exceeding the value of most financial advisors yet rarely receive such recognition’ says Ms Kohler.

‘The commitment required to effectively maintain properties, quality client relations, legislative compliance, and, excellence in customer service is sometimes extra-ordinary or even super-human’.

Yet, when choosing a property manager the network indicates that the majority of landlords and investors look only at management fees, thinking that property management represents little more than the collection of rent.

‘Investors need to consider the systems and experience behind the agency that they are entrusting the management of their properties to’ says Ms Kohler.

‘Professionally qualified and trained property managers bring so much more to the equation than rent collection. You only need to experience one problem with a tenant to begin to understand the importance of a comprehensive appreciation of the laws governing tenancy. Paying a slightly higher fee for a more professional manager makes a huge difference, even without a problem tenancy.

‘And, a good property manager does so much more than protect you from undue anxiety. They offer valuable advice about how to improve rental yields, guidance on when and where to invest and can even point investors towards the right place for advice about tax effective property investment for Self Managed Superannuation Funds’ says Ms Kohler.

Property investment remains one of the most secure forms of long-term wealth creation and, with current share market volatility as well as concerns about the economies of Europe and the United States, First National anticipates increasing interest in property investment from Australian investors in the next twelve months.

‘A climate of stable interest rates and the prospect of perhaps even a reduction in rates in the near future makes bricks and mortar exceptionally attractive’ says Ms Kohler.

First National Real Estate has over 450 offices throughout Australia and New Zealand.

For further information:

First National Real Estate:

National Property and Marketing Manager, Amanda Kohler on 1800 032 332

Headworks cutting property off at the knees

Headworks cutting property off at the knees
First National Real Estate

First National Real Estate Chief Executive, Ray Ellis is calling on governments and local councils to reduce exorbitant headworks costs in an effort to address housing affordability and kick start sorely-needed development across Australia.

“The financial crisis has had a big impact on the real estate sector, both restricting development funding and amplifying the effect of infrastructure charges,” Mr Ellis said.

“Where once local councils’ headworks charges paid mostly for water and sewerage, they now include a host of other charges, including infrastructure costs for roads and in some cases recreational and community facilities, electricity charges, footpath networks and more.”

In Western Australia, it is estimated a simple two-lot subdivision could cost at least $25,000 to $30,000 depending on location and local council charges.

In Queensland, the industry is looking at setting building charges at $27,000 for houses and capping one-bedroom apartment charges at $13,500. These charges do not include state government infrastructure charges such as roads, when these are added, the development costs start creeping into ‘unviable’ territory.

Commercial development fees on the Gold Coast are up to 10 times higher than other states, according to recent investigations.

In New South Wales, Victoria and Western Australia, headworks charges varied between $58,000 and $404,000 but on the Gold Coast a similar development was charged $2.5 million.

In Tasmania, a developer was recently charged $44,428 in “headworks” charges, equating to around 1 per cent of the cost of a $50 million development.

A 155-lot subdivision in Tasmania was recently put onto the back burner because of an $810,000 headworks charge.

And, in South Australia, the different infrastructure requirements plus internal infrastructure including roads, parks, common service trenches, stormwater basins, service connections and public lighting, could well see a rough cost per allotment in excess of $60,000, plus legal costs.

According to Mr Ellis, councils and governments, especially those in regional areas, need to change their attitude if they want their regions to prosper.

“Regional areas are in desperate need of growth and, if the bureaucrats and policy makers really want to attract people to these areas, these headworks costs defy logic as they stand in the way of development,” Mr Ellis said.

“There is an ideal opportunity to develop these regions as desirable locations for people to move to, but developers need to be given the right incentives to do this, such as reducing headwork charges to make the developments more commercially viable”.

As a fundamental economic driver of the Australian economy, more needs to be done to encourage property development, both residential and commercial and the best place to start is with governments and councils looking at what is a fair and reasonable charge, rather than just a money grab.

Get the job done – Win one of five $5,000 Hardware Vouchers

Get the job done – Win one of five $5,000 Hardware Vouchers
First National Real Estate

First National Real Estate has launched a competition throughout Australia where homeowners or home hunters have five chances to win $5,000 in hardware gift vouchers.

‘Australians love do it yourself projects so there’s always huge interest in our competitions where the prize helps get another home improvement finished’ said Stewart Bunn, National Communications Manager from First National Real Estate.

‘Whether you own your own home or rent, there’s a lot of useful equipment or even home furnishings that you can buy with $5,000 worth of hardware gift vouchers’.

During the competition, First National Real Estate will also be offering a free iPhone App called Real Estate Rumble’ said Mr Bunn.

‘Real Estate Rumble is just for fun. You don’t have to play the game for a chance to win one of the five competition prizes but, like building up a real estate portfolio, the game is addictive’.

Customers can download their free game from Apple’s iTunes Store or the App Store; just search ‘Real Estate Rumble’.

To enter the competition, participants should visit www.firstnational.com.au and follow the prompts to register.

‘Get the job done’ runs between 1 October 2011 and 11.59 pm AEDST on 31 October 2011.

Issued by: First National Real Estate

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

Call to stop dribbling on water

Call to stop dribbling on water
First National Real Estate

The Shadow Minister for Water Security, Energy & Minerals Resources, Mitch Williams MP, has called on governments to act on water management and stop ‘talking’ around the issue.

“Arguments about the management of the River Murray system was one of the issues delaying Federation, more than 100 years ago, and those arguments are still going on. We need action, not talk,” Mr Williams told delegates at the First National Commercial and Rural Conference, “Grow Your Footprint”, held at the InterContinental in Adelaide recently.

Mr Williams has spent most of his 14 years in parliament working hard on water issues.

“I got involved in the 1990’s when we started licensing water – and in South Australia it is still not resolved. Every bore in the South East of South Australia has had a meter since 2006, but we still have not moved from area based to volumetric licensing,” Mr Williams said.

“Around 80% of South Australians rely on the water in the Murray Darling system to live, work and eat and with the price of water only expected to increase, this will put undue pressure on many hard working families, especially in rural areas.

“Farmers in my electorate, for example, are paying up to $100,000 per annum for water which may well see livestock farming become unprofitable, resulting in higher food prices and ultimately becoming an issue for all of us.”

First National Real Estate Chief Executive, Ray Ellis said if farmers were to exit the areas as a result of farming becoming unprofitable, the impact on property prices would be detrimental.

“Farms are crucial to the very life-blood of a rural community. Take away that livelihood, and the flow-on effect would be to rural property prices,” Mr Ellis said.

According to Mr Williams, governments have been working since Federation to control the Murray with locks, dams and barrages, and have changed it forever. “At a COAG meeting in 1994, we separated water and land titles so we could use water for higher economic purpose, but that separation still has not happened in Queensland,” Mr Williams said.

“In 1995, the states agreed they would take no more water out of the river, but significantly, even more water has been allocated and ground water licenses have been issued in NSW, right next to the river, and the states have been in denial that this would affect river flows.

“Water is stopped before it even gets into the river, through flood plain harvesting, and the rights of people further down the stream have been taken completely away.”

Mr Williams said the river was critical to production and the rural communities along its banks that rely on it.

“Country towns throughout the state depend on the irrigation generated by the river. A holistic approach is required; one which considers the issues of communities further upstream and downstream and where a mutual understanding of the issues for each other can be reached,” Mr Williams said.

“We have missed many opportunities to do something about this. The drought concentrated the ideas of the Australian people and then Howard offered $6 billion to build new infrastructure to use less water with projects like subsoil irrigation which can double productivity or halve water usage.

“Hardly any of that money has been spent. Rudd also promised the same in 2007 saying it was a priority but four years later nothing has changed.

“We are still waiting for outcomes from the Murray Darling Basin Authority and we are all just hoping they get it right.

Mr Williams outlined for the conference delegates a few of the competing interests that need to be considered in managing our water resources including increasing water costs being paid by water consumers.

“Our dilemma is more about the management of our water resources rather than a scarcity of water.

“In the city of Adelaide the annual consumption of water is approximately 200 gigalitres. Currently approximately 160 gigalitres per year runs into the sea as stormwater from this urban environment. The technology has been proven to recover, clean up and reuse much of this water resource.

“There are vast aquifers beneath metropolitan Adelaide where such water could be stored for future use. Currently some metropolitan councils are doing just this providing water for parks and gardens and industrial use.

“Alternatively the Adelaide Desalination plant will provide the most expensive water in Adelaide, as a result of indecisiveness and inefficient business practices, the cost of which will be borne, once again, by the consumer.”

Mr Williams said water management will continue to pose a difficult problem for rural areas as long as governments continue to mull it over, instead of making a decision and taking action.

“Action is what we need now, not more talking. I think we need to stop being ‘precious’ with ourselves, and start doing something for our most precious resource.”

For further information contact National Communications Manager, Stewart Bunn on 1800 032 332

Auction sales under the hammer

Auction sales under the hammer
First National Real Estate

In a property market which is currently slow, as a result of buyer uncertainty, auctions are proving a way of getting property to move. Properties that go to auction are spending 40% less days on the market and First National Real Estate’s corporate auctioneer said he expects this trend to continue.

“Even though there is uncertainty about the market, the future, carbon tax and so on, there are often no real concrete reasons why properties are not selling” corporate auctioneer Mike McCaffery said.

“We are seeing this in every state across the country, where auctions are moving properties faster than other sales methods”.

“We encourage vendors to go to auction for a number of reasons,” Ray Ellis, Chief Executive of First National Real Estate said,

“For the vendor, it provides a set date when they will know the result of the sale. For the buyer who might be thinking about a property and are considering their options, an auction actually helps them make a decision.”

“In many ways an auction is a mini version of the market,” Mr McCaffery said.

“On the day, both the vendor and buyer can see what the interest is and the price people are prepared to pay. An auction says this is the day, this is the time, make a decision. It makes people certain one way or the other.”

“If property owners really want to sell their property, we tell them to go to auction, we know they will get a result on the day,” Mr Ellis said. “We know the market, we know the buyers, and we can bring those buyers to the auction and get a result”.

Spring into action

Spring into action
First National Real Estate

As spring settles in, home owners’ thoughts start to turn to selling in the hope of capitalising on the atmosphere of optimism that comes with the new season – but they may be a little bit over-optimistic given current market conditions says First National Real Estate National Communications Manager, Stewart Bunn.

“Spring is traditionally considered the peak season for the property market, but the current market dynamics and sheer volume of homes for sale will make maximising your sale price more challenging this year,” Mr Bunn said.

“But there are things home owners can do to prepare their homes for sale and ensure they have the best chance of successfully marketing their property.”

According to Mr Bunn, the top tip to maximise the property’s value is to choose a good agent.

“An agent that can be trusted and has strong local knowledge and experience is essential when selling a property and can mean a difference of thousands of dollars to the resulting sale price,” Mr Bunn said.

“Discuss with potential agents their proposed strategies for marketing and look for ones that consider the full range of tools available including local newspapers, popular real estate websites, social media such as facebook and twitter as well as other eMarketing tools like SMS/MMS.

“And see how open they are to seeking your input for developing enticing signboards and quality brochures.”

Another key tip Mr Bunn said is to research what your property will be competing with and be realistic.

“It will be critical this spring to set a reasonable asking price because buyers are certainly out there but they are ultra price-sensitive right now. Agents know what properties are selling for in your area and are experienced at gauging which way the market is turning. They can help you determine the ideal target range,” Mr Bunn said.

On a more practical level, Mr Bunn advises looking at the property, with objective eyes and seeing what can easily and readily be done to improve its prospects.

“A simple lick of paint, spring clean, tidy up around the place will go a long way to making a good impression,” Mr Bunn said.

“Mow the lawns, trim the hedges and dig over garden beds, just to start with.

“Look at cleaning the windows, both inside and out, and sweep driveways to help create a neat, tidy, polished appearance.”

Mr Bunn said there are some little ‘extras’ that can be done beyond the usual interior cleaning.

“Making sure there are fresh flowers inside the home and let in lots of natural light to really brighten up rooms,” Mr Bunn said.

“For those with pets, where possible remove them during inspections and create a nice ambience by playing soft, tuneful background music to create a more homely feel.

“Lastly, make sure you revamp and repair where necessary. Pay most attention to the main living and sleeping areas like the kitchen, family, room, bathroom and bedrooms.”

In a slow market, or tough selling climate, eliciting a strong emotional response to your home from potential buyers is vital – and these tips are designed to assist vendors make that connection.

For further information contact Stewart Bunn, National Communications Manager, First National Real Estate, on 0413 624 317

Super time to invest in property

Super time to invest in property
First National Real Estate

First National Real Estate agents attending the network’s recent Commercial and Rural Conference heard from a Self Managed Superannuation Fund specialist that superannuation funds represent an enormous opportunity for the property sector.

“Self managed superannuation funds (SMSF) are currently the largest sector of the entire superannuation industry and represent real opportunities for property investors,” Patrick Nalty, Director of thinkSUPER said.

In September 2007, the ATO changed superannuation rules to allow for super fund borrowing for investment acquisition purposes. Since then there has been an exponential increase in the amount of property acquired by Self Managed Superannuation Funds .

Direct residential and commercial property held within SMSFs over the past 12 months has increased to 15.4% - this percentage represents more than $8.1 billion in property acquisition through SMSFs over the past 12 months alone.

With more Australians establishing their own Self Managed Superannuation Fund, there is clearly a significant flow-on effect within the property market.

“Due to the tax concessions afforded to superannuation funds, it is often a far better option to borrow and purchase a property within an SMSF than outside of super,” Mr Nalty said.

First National Chief Executive, Ray Ellis said this offered investors enormous opportunities.

“The market is offering great value at the moment, but people are nervous about increasing their personal debt,” Mr Ellis said.

“Using their superannuation makes sense and can give people a chance to be active in the management of their retirement and investments.”

Issued by: First National Real Estate

For further information contact National Communications Manager Stewart Bunn on 1800 032 332.

New appointment for First National Real Estate

New appointment for First National Real Estate
First National Real Estate

Amanda Kohler has been appointed First National Real Estate’s new National Property and Marketing Manager.

“Amanda’s exceptional combination of property management and marketing skill is ideally suited to this newly created position within the network,” Mr Ray Ellis, CEO of First National Real Estate said.

“In addition, she brings a wealth of international and national experience that will be of enormous benefit to our members.”

Amanda said she was looking forward to the challenges of her new role, which enables her to make full use of her love of property management, experience in marketing and knowledge of global real estate markets.

“After having been in the industry for more than 15 years and running my own business for three of those, recruiting and temping for the real estate industry, I think this role embodies my expertise in a unique way,” Amanda said.

“I am really looking forward to making a difference to the members as well as our customers and I know I will bring to the table some diverse thoughts and strategies for the next growth phase of Australia’s largest independent network.”

Amanda has spent 11 years in property management and 4 in sales, and most recently as the Victorian State Manager for the largest utility connection company in Australia, a loyal and valued alliance partner of First National Real Estate.

She is a licensed agent and has worked for property agencies in London and Poland. While working for one English agency as Sales and Acquisitions Manager, she started its Sales & Marketing and Property Management Departments.

First National Real Estate sets technology pace

First National Real Estate sets technology pace
First National Real Estate

First National Real Estate has announced the addition of a further three Apps to its suite for the popular Apple iPad. This closely follows the network’s announcement of the industry’s first rental property condition reporting App at its recent National Convention in Coolum – My Condition Reporter.

Available at no cost through iTunes, the ‘First National Real Estate’ App provides consumers with instant access to the network’s residential, commercial, rural and business listings, as well as the contact details of each of its office locations nationally.

While the network’s My Condition Reporter App has been made available to all of its Property Managers at no charge, First National Real Estate intends to soon make the App available to all property managers nationally for a small fee through the iTunes store.

The other two Apps that First National Real Estate has launched are exclusively for the use of its member agents.

The first, Mobile Register, enables First National agents to use their iPads to enter buyer and tenant search criteria to the network’s Utopia customer database while they’re in the field.

‘This is the future of Real Estate’ says Chief Executive, Ray Ellis.

‘First National has positioned itself as the industry leader when it comes to online marketing, mobile devices, customer relationship management and quality assurance systems. Consumers expect more from estate agents today and First National is providing the tools that guarantee the highest standards of service in the profession.

‘If you give your details to a First National agent at an inspection, you’ll see them entering your search criteria via their iPad immediately. That provides our customers with immediate confidence. Utopia then guarantees when one of our agents lists a matching property that’s for sale or rent, the customer will automatically receive an email or sms notification’

Utopia was a finalist in the Relationship Marketing Category of the Australian Marketing Institute’s ‘Awards for Marketing Excellence’ in 2010 and First National Real Estate was the only organisation representing the Australian property industry.

Mr Ellis believes this is indicative of the complacency with which many Australian real estate brands approach both their product offering and the needs of their franchisees.

‘The opportunities offered by technology to improve the profession’s performance and customer satisfaction ratings are enormous. However, many of our competitors choose to rely on their brand equity and perhaps even franchisee apathy, instead of investing resources where they are clearly needed. One even cancelled its 2011 National Convention, citing difficult market conditions, clearly showing contempt for the needs of its franchisees’ says Mr Ellis.

The second App, Mobile Lister, enables vendor listing presentations that really give First National agents a distinct advantage. Linking directly with the Utopia system, agents can present precise examples of how their potential customer’s property would look when marketed by First National Real Estate.

The agent can produce a live buyer demand report, proving to potential clients how many buyers are waiting on their database and looking for the customer’s property. The property’s asking price can also be moved upwards or downwards, using a sliding scale, to show the impact this would have on the number of buyers available.

‘Our members are very excited by the path First National has forged in recent years. Our combination of new branding, customer focused technology, community outreach through energy efficiency and charitable fundraising, as well as our marketing and lead generation systems, are differentiating their agencies in ways our competitors simply can’t match’ says Mr Ellis.

Property market update - the year of the investor

Property market update - the year of the investor
First National Real Estate

PROPERTY MARKET UPDATE – THE YEAR OF THE INVESTOR

First National Real Estate has surveyed its 450+ offices throughout Australia and New Zealand to find that 2011 is set to become the year of the investor, with prime conditions for this segment to make their return to the market.

“The market is continuing to slow which is producing excellent opportunities for investors who should be taking advantage of low vacancy rates, strong returns, increased upgrader activity and easing bank lending criteria conditions”, Mr Ellis said.

“The biggest challenge facing us as an industry will be uncertainty.

“There is a lot of consumer nervousness which is basically due to uncertainty. They are unsure of what is going to happen on a lot of fronts including what is happening to Australia’s economy and other global economies like Japan and Greece, will interest rates rise, will house prices fall, what’s happening on the job front and what changes will the government introduce in terms of policy, planning and taxes.

“As long as there is so much uncertainty and talk of policy changes, consumers will hold off making any major financial decisions.

“There is already evidence that they are holding onto their savings and either putting it back into their mortgages or other safe holdings until their confidence returns.”

First National Real Estate members across the country were overwhelmingly in agreement that house prices had steadied or fallen.

“Around 32 per cent of our members surveyed said house prices would trend downwards, while 50.9 said they would be flat,” Mr Ellis said.

“Across the board, any movements in house prices are expected to be within 10 per cent, but the majority of survey respondents anticipate them to be less than 5 per cent.”

Apartment/strata property prices in the coming six months are a mixed bag, with some states and areas expected them to trend upwards, some downwards and some for them to remain flat.

“Nationally, 45.5 per cent of our members surveyed expected this segment to remain relatively flat, but in NSW and Victoria the greater majority were expecting this,” Mr Ellis said.

“Whereas for Queensland, Tasmania and WA, most of the members responding believed apartment/strata property prices would trend downwards.

Price movements for Apartment/strata property prices are expected, in the main, to be below 5 per cent.

According to the survey, most of First National’s members expect land prices to remain flat, with some predictions for prices to head upwards, and some downwards. Victoria is the only state where the majority of members say land prices will trend upwards.

Any movements in land prices are expected to be mainly less than 5 per cent with some saying they may be as much as 10 per cent and a small minority predicting movements of between 10 per cent and 20 per cent.

For the rental market, members’ surveyed overwhelmingly expect weekly rents to increase while vacancy rates will lower or remain flat.

Members surveyed believe the strongest growth in their region will come from primarily investors, followed by upgraders, then first home buyers and lastly from retirees.

“Investor activity is expected to increase across the board, with all member survey respondents saying they anticipated growth in this segment,” Mr Ellis said.

“Investor growth is expected to be driven by mainly better rental yields and returns, increased second buyer activity and easing of bank lending criteria.

“As upgraders become more active, members expect opportunities will be created for first home buyers to dip their toes back into the market, as well. However, any movement by investors and upgraders may be diminished if government continues to talk up some of their proposed policy changes they have recently raised.”

Mr Ellis said it was hoped the lack of inclusion of any of these proposals from the recently released budget is a sign that they have seen the error of their ways and dropped them.

First National Bucks Industry Stance

First National Bucks Industry Stance
First National Real Estate

First National Real Estate CEO Ray Ellis, 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,” Mr Ellis 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,” Mr Ellis said.

“The government needs to look at policies that will encourage mobility rather than inhibit it.”

Mr Ellis 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’,” Mr Ellis 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.”

Mr Ellis 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,” Mr Ellis 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.”

Warm up winter buyers

Warm up winter buyers
First National Real Estate

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 Communications Manager Stewart Bunn 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,” Mr Bunn 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 Mr Bunn, 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,” Mr Bunn 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. Mr Bunn 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,” Mr Bunn 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 Mr Bunn says can be easily undertaken and are affordable:

· 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 brighten the atmosphere 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 quality fragrance around (but not too much!)
· Turn on heaters or light fires so that the temperature inside the home is comfortable, inviting the buyer to linger longer, especially on cold days.

Mr Bunn 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,” Mr Bunn said.

“That’s what we do here at First National Real Estate. We think of our clients and put them first, because that’s what we would like if we were their clients.”

Investors gear up for tax time

Investors gear up for tax time
First National Real Estate

Tax time is just around the corner, and according to First National Real Estate Communications Manager, Stewart Bunn, the key to maximising tax deductions for property investments is organisation and planning.

“At the end of the day, like any form of investment, keeping track of what is happening with your investment and its incomings and outgoings is what it is all about,” Mr Bunn said.

“Keeping receipts to prove your deductions and demonstrate why the expense was incurred is key to deriving assessable income.

“Preparing a depreciation schedule is also a legitimate way to claim tax deductions and if it is done by a qualified quantity surveyor, their costs are also tax deductible.”

Mr Bunn said that tax time should serve as a reminder for landlords to carry out property and pest inspections on their properties.

“This ensures any work required is carried out before the end of the financial year, and can then be claimed as an investment expense,” Mr Bunn said.

“And if the investor purchases any fixtures and fittings costing less than the specific amount set by the tax office, they can claim an immediate tax deduction.

“In addition, the investor may be eligible for a deduction for depreciation on the cost of improvement by a previous owner, provided items are identifiable and itemised in a depreciation schedule.”
According to Mr Bunn there are also financial tips investors should consider.

“This could include writing off borrowing costs over five years or the term of the loan, or self managed super funds borrowing to invest as well as prepaying interest against factors like anticipated future income, interest rates and cash flow impacts,” Mr Bunn said.

Investors are encouraged to seek the services of a qualified and trusted financial advisor “A financial adviser will understand the best options for property investors and their individual financial circumstances.”

Property investment offers the potential for good returns and long-term financial gains, but maximising the tax benefits of this type of investment ensures it works to its fullest advantage.

Recycle your old mobiles with First National

Recycle your old mobiles with First National
First National Real Estate

Mobile phone users will now be able to recycle their old mobile phones and accessories at more than 450 First National branches around the country.

The First National Real Estate network today announced that customers will be able to drop off their old mobile phones, batteries, accessories and chargers at their nearest First National branch. As an extension to its energy efficiency and sustainability drive, First National has partnered with MobileMuster, the official recycling program of the mobile phone industry to support its Old phones, more trees campaign.

‘Old phones, more trees’ is a joint initiative between MobileMuster and Landcare Australia, to collect more than 250,000 handsets and plant up to 25,000 seedlings to regenerate Australia’s coastline between now and 30 September.

“First National is calling on our 450 plus members and their local communities to recycle their old mobile phones and accessories before the end of September to help plant more trees along our coastline,” First National Real Estate CEO, Mr Ray Ellis, said.

“If each of our offices recycled their old mobiles First National together could recycle as many as 7,500 mobile phones a year from our staff alone. With 70 per cent of Australians having at least one old mobile sitting in a cupboard at home, we could potentially help recycle millions of phones and help reduce this country’s carbon footprint.”

Mr Ellis said as leaders in real estate, First National also wanted to take the lead on matters affecting communities in which its members live and work.

“Our members pride themselves on giving back to their communities and by helping to collect mobile phones for recycling so that more trees can be planted is just another way for them to do that.

“As an industry that is so reliant on both mobile phones and cars, we felt we should do our part to help reduce our carbon footprint,” Mr Ellis said.

According to Rose Read, MobileMuster Manager, Recycling, Australians have about 19 million old and unused mobile phones sitting at home.

“The greenhouse gases that could be avoided if Australians recycled all their old, unused phones would be the same as planting 100,000 trees or taking more than 6,000 cars off the road,” Ms Read said.

If all the unused or broken mobile phones hidden in desks and drawers across Australia were handed in, including those of First National’s own staff, they could be recycled to produce 185,000 plastic fence posts, enough to build a fence from Melbourne to Sydney.

Since MobileMuster began in 1999 it has collected 806 tonnes of old mobile phones, batteries and accessories, recycling over 90 per cent of the materials in them and keeping them out of landfill.

To find your nearest First National / MobileMuster collection point for mobile phone recycling go to www.mobilemuster.com.au or call 1300 730 070.

Negative gearing here to stay

Negative gearing here to stay
First National Real Estate

First National Real Estate CEO Ray Ellis has called the government out on its ‘bluff’ to get rid of negative gearing, saying it does not make economic or political sense.

“Talk of cutting negative gearing only adds to a worsening situation where property investors are already opting to stay out of the market,” Mr Ellis said.

“Ongoing investment in property is crucial to Australia’s economy, as well as maintaining a healthy rental market. Any changes to the current policies could have a detrimental effect on this country’s economic stability, as well as the future supply of rental properties in an already tight rental market.

“At the end of the day, it will be struggling renters who will bear the brunt of this burden and they may be forced into relying more heavily on government welfare agencies and government funded housing for their very survival.

“I just can’t see this happening. It is pure scare mongering on behalf of the government to even suggest that they are seriously considering cutting negative gearing.”

Mr Ellis said the property market is already doing it tough with higher interest rates, worsening affordability and an evident lack of investors and first home buyers. In addition rents are set to rise by a further 7 per cent in capital cities, on top of 4.5 per cent rise in the March quarter, as a result of low vacancy rates and a shortage of supply of suitable available accommodation.

“Vacancy rates continue to be tight, and first home buyer and investor activity is low. We have suffered seven interest rate rises since October 2009 and new supply coming on-line is quite constrained, amid a host of natural disasters,” Mr Ellis said.

“Add to this the ongoing unstable European and Japanese economies and consumer nervousness is increasing at an exponential rate.

“What needs to be remembered is that negative gearing ensures a significant supply of rental housing, which serves to hold down rents. Any dislocation in investment housing would affect those who can least afford it - people who pay rent.”

Investors considering overseas property markets as a means to overcome any ‘proposed’ government changes to property policy are warned by Mr Ellis to be wary and exercise extreme caution, or simply buy locally where investments can be properly assessed.

“In some countries, like the US, there is a practice commonly known as ‘flipping’ where property promoters purchase a property cheaply from banks and then sell it to Australians for an inflated price, but one which appears to be good value to Australians,” Mr Ellis said.

“But what they discover is that their house is poorly located, has frequently been vandalised, and can prove impossible to rent. With the national vacancy rate over 13 per cent, US renters get to be quite choosy about where they live and won’t settle for less than their money can afford.

“This situation in the US is expected to continue for some time and the recovery is expected to be long, slow and painful. Our strong advice is for investors to keep their money at home, where it belongs and not be put off by government scare tactics.

“They should be gearing up to take advantage of a local market which is ideal for their needs. The market is cooling and prices are coming off, good loans are available, good fixed rates are on offer, the banks are in real competition and there are less first-home buyers competing with investors.

“In addition, rental yields have been increasing and vacancy rates in many areas are well below 2 per cent – all positive signs for the investor.”

Budget does nothing to allay real estate fears

Budget does nothing to allay real estate fears
First National Real Estate

First National Real Estate, a network with over 450 offices throughout Australia and New Zealand, says the Australian Federal Budget provides no measures to address issues facing the Australian property market. It fails to tackle government obstacles faced by developers, the shortage of land releases, excessive taxation on new housing or the fears surrounding a climate of rising interest rates.

Chief Executive Ray Ellis said doing nothing to remove government impediments to development would assure that housing affordability only continues to worsen.

‘The Federal Treasurer continues to ignore calls to reform inefficient taxes like stamp duty and does not understand talking about ending negative gearing will effect the very working families this government has sworn to protect’ said Mr Ellis.

‘Investors have been slow to return to the property market and ending negative gearing or adding investment property exit taxes, as the Treasurer has suggested, will see them leave the market, possibly for good. The shortage of investment property ownership is already showing up directly in rapidly rising rents. Rents have surged by 7.6 per cent in New South Wales and by 6.5 per cent in Victoria in the year to March. That hits the people hard who can least afford it, working families who rent’.

First National Real Estate indicated that with expectations of falling unemployment, not enough is being done to curb inflation or wages growth. This is likely to force the Reserve Bank’s hand on interest rates sooner, further damaging investment in a climate where the rising value of the Australian dollar is encouraging offshore investment.

‘Without decisive action to coordinate government authorities, we are no closer to solving the supply problems that force up housing prices and lock out young buyers. Without incentives for investors, we are no closer to improving the supply of more affordable rental properties. With a Reserve Bank with a finger on the trigger for the next rate rise, we see trouble for the one in ten mortgage holders who say they will not be able to make their repayments if interest rates rise by another quarter of a per cent’ said Mr Ellis.

Major shift in Coffs Harbour real estate

Major shift in Coffs Harbour real estate
First National Real Estate

Coffs Harbour real estate identity Barry Booth has today announced a change of strategic direction that will impact on competition in Coffs Harbour real estate services. From today, the local property market veteran will cease 28 years of operations under the LJ Hooker brand to join the fast evolving First National Real Estate network.

Barry Booth’s name has been synonymous with LJ Hooker since 1980, when he moved to Coffs Harbour and commenced work in valuations and sales. Since buying the LJ Hooker franchise in 1983, a path of growth has led to its recognition as one of the most successful estate agencies in regional Australia. Following the change of brand, Mr Booth’s LJ Hooker Coffs Harbour office will trade as First National Real Estate Coffs Harbour.

‘A change of strategy of this magnitude is not a decision I have taken lightly’ says principal Barry Booth.

‘There’s been a huge amount of change in Australia over the past three decades and in that time, peoples’ expectations of real estate agents and the services they provide have changed just as much. You only need to look at how much the face of Coffs Harbour and its community has changed since 1983 to realise the seismic shift that has also taken place in real estate practice. Even greater change is coming and we want to be ready for that change’ says Mr Booth.

Research suggests that Australian consumers have changed the way they interact with real estate agents, the Internet being one of the major factors influencing that change. Nine out of ten people now start their search for property using the Internet but despite the industry’s rapid adoption of the Internet as a marketing tool, many real estate agencies have been caught napping when it comes to effectively marketing their customers’ properties online.

‘Most of the major groups have done little more than provide websites in the past decade, failing to develop new systems that give greater control and choice to customers. First National Real Estate is a network that has been built by real estate agents, as opposed to the typical corporate franchise system. That’s led to a more customer focused approach’ says Mr Booth.

‘First National have harnessed the best and brightest in the industry to produce home grown solutions to some of the challenges this industry has never solved. In the coming months, we plan to introduce a raft of new systems that will radically lift the sophistication with which we market homes and developments, manage rental property, and communicate with our customers’.

First National Real Estate executives have been working recently with Mr Booth’s staff, conducting presentations on a range of newly developed technologies, marketing systems and Quality Assurance ISO standards in preparation for the agency’s transition to the First National brand. The agency will make more detailed announcements about its strategy over the coming months.

‘My whole team is very excited about the new approach we will be taking. We will be the most technologically advanced real estate agency in Coffs Harbour and while we already hold records for the highest volume of sales on the North Coast, the changes we make will future proof our business, keeping us even further ahead. This will create a new standard of competition amongst local agents, delivering a win for Coffs Harbour residents’ says Mr Booth.

First National Real Estate CEO Ray Ellis will visit the new office on 13 May and official opening celebrations take place 30 June.

First National Real Estate has more than 450 member offices throughout Australia and New Zealand and offers the most dynamic, progressive property services available. The network’s membership sells, leases and manages property with the promise of putting consumer interests first - at all times.

Network Calls For Landlord Restraint

Network Calls For Landlord Restraint
First National Real Estate

First National Real Estate has called upon landlords to exercise rental pricing restraint and compassion as isolated signs of profiteering emerge from the recovery efforts in Queensland.

‘There have been instances where landlords with vacant homes have contacted our members, asking to have their rental asking price substantially increased to capitalize on the sudden demand for properties needed by evacuees’ said First National’s Chief Executive Ray Ellis.

‘Fortunately, such incidents have been few in number and have been balanced by property owners who have contacted the network with offers of assistance. One such landlord contacted a Brisbane First National member and indicated that he was willing to furnish his rental property down to the last teaspoon if a flood evacuee needed temporary, furnished accommodation.

‘He even offered to forgo the usual minimum six month lease to help out’ said Mr Ellis.

Real estate agents are struggling to cope with the resources needed to urgently re-house tenants in rental properties that have been either damaged or ruined. In some cases, the agents themselves have lost everything in their homes and their businesses have been destroyed, but they are fighting back, determined to get their businesses operational to deal with their responsibilities to both tenants and landlords.

‘Landlords are understandably distressed about what has happened to their properties and there were major challenges earlier this week, just getting to their properties to find out what had happened. Equally, tenants are distressed about how much they are allowed to do in order to clean up their homes, which are effectively the landlord’s property’ said Mr Ellis.

‘Nobody wants to rip up carpets they don’t own but most of our tenants didn’t want to sit on their hands either. Some of our tenants in flood damaged properties couldn’t reach their First National agent to ask questions so we immediately set up an Emergency Flood Crisis Contact number and began coordinating support from our national administration centre in Melbourne.

‘Our staff took calls from over 100 tenants last weekend alone’.

First National Real Estate is a cooperative and its member agents have pooled their resources to help the worst affected offices in the network respond to the crisis.

‘Our agents and property managers have stood shoulder to shoulder through this event’ said Mr Ellis.

‘First National launched an internal National Volunteers Register to pool its property management expertise and we’ve had offers of support from across the country.

‘Property managers and staff located around Brisbane in particular have flocked to our Oxley and Toowong offices to help clean up, establishing temporary facilities under tents, and have set about visiting our rental properties to assist tenants who need to be re-housed, assessing the degree of damage, reporting to landlords, and starting the process of repairs and restoration’.

First National says that the process of recovery will be lengthy. Accessing electricians, plumbers, roofers and pool cleaners will be difficult while demand overwhelms supply.

The network’s community fund-raising arm, First National Foundation, set up an ‘Australian Floods Appeal’ two weeks ago and all funds raised go to Australian Red Cross Emergency Services.

‘Our agents have been fund-raising nationally and we’ve managed to raise in excess of $30,000 in support of Red Cross Emergency Services so far’ said Mr Ellis.

Members of the public wishing to donate can visit www.firstnational.com.au and follow the links to the donations page.

Put a freeze on costs to keep warm

Put a freeze on costs to keep warm
First National Real Estate

First National Real Estate CEO, Ray Ellis says there is a lot homeowners can do to keep power bills down when they usually increase as the weather turns chilly.

“Just a few simple changes to your home and your habits can make sure you and your family stay warm and cosy without costing the earth,” Mr Ellis said.

“In winter, the typical Australian household consumes approximately 2700 kWh of energy, which is around 7 per cent more than in the warmer months.

“Energy conservation is a vital environmental issue which is one of the reasons power costs are going to escalate, and it is better to tackle the necessary changes to lifestyles now than when it is too late.

“For every one degree temperature increase in winter, energy use increases by 15 per cent, so it is wise to warm up to the idea of becoming more energy efficient in the home.”

Mr Ellis said while many environmentally-friendly actions should be taken throughout the year, it is during winter we should remain diligent and follow a few additional guidelines.

Turn down - Consider turning down the thermostat on heaters by one or two degrees – homes should be maintained at temperatures between 18 and 21 degrees. Every degree lower can decrease heating costs by up to 10 per cent. When heaters are on, close curtains and blinds to reduce heat escaping and retain it inside. Putting on warmer clothing, like sweaters, can also lessen the reliance on heaters as the main source for warmth.
Turn off - Lighting potentially makes up around 10 per cent of household energy usage. Avoid leaving unnecessary lights on and switch them off when no one is in the room. Outdoor lights should use motion sensors wherever possible. Compact fluorescent lamps (CFL) use 80 per cent less energy than incandescent bulbs and last around 10 times longer. Appliances, such as computers and televisions, should be turned off at the wall, if possible. Standby power can account for up to 10 per cent of total power bills.

Seal up - Inspect for air leaks, commonly found in places like door and window frames, ducts, electrical outlets and recessed lights. Air leaks raise energy bills by allowing heat to escape outside. Install draught seals and weather stripping around doors and windows and repair faulty seals – these simple measures will minimise heat loss through gaps and leaks around the home.

Insulate - Insulation helps retain heat during winter. Attics, ceilings, walls, floors and basements are all areas that benefit from insulation. Upgrading all areas of the home to recommended insulation levels can potentially save 5 to 25 per cent on heating and cooling costs.

Be efficient - Look at using or installing energy efficient appliances wherever possible. Use major appliances, such as washing machines, dishwashers or dryers at bed-time and other low energy use times of the day, and avoid using them between 4pm and 9pm – this is the optimal time to power down.

Mr Ellis said cutting back unnecessary energy use is a simple and easy way to keep hard-earned money in the pocket as well as reduce the pressure on the environment.

“It’s a win-win situation all round, so everyone should be taking these simple steps to conserve energy, reduce waste and make a better carbon-footprint for the world to see.”

Bricks - An investment in tomorrow

Bricks - An investment in tomorrow
First National Real Estate

First National Real Estate Chief Executive Ray Ellis, says full brick homes are increasing in popularity as homeowners recognise their many advantages both for today and for the changing needs of tomorrow.

“Full brick homes are a solid investment for homeowners, and in the never-ending quest for sustainable solutions, bricks represent one of the greatest energy efficient building materials available,” Mr Ellis said.

“Plus, with the impending carbon tax and escalating energy costs, they offer real means to reduce carbon footprints by homeowners.

According to Mr Ellis research by the University of Newcastle shows a full brick home reduces greenhouse gas emissions with their excellent in-built thermal qualities, which provide superior insulation abilities.”

“The natural heat retention properties of bricks means homes are cooler in summer and warmer in winter,” Mr Ellis said.

“During the day unwanted heat is absorbed by the brick and slowly released at night which means the home retains a constant temperature and remains unaffected by external temperature changes.

“This reduces the need for the use of artificial temperature controls, like air conditioners and heaters, and can even potentially eliminates their use in times of climate extremes, reducing greenhouse gas emissions as well as rising power bills.

“It also maximises interior comfort for those inside the home.”

Mr Ellis said a full brick home offers a superior resale value due to its durability and strength, making it a good sound investment at any time.

“But home owners can capitalise on their investments in a full brick home well before they even start considering selling it,” Mr Ellis said.

“They are low maintenance, don’t require repainting of face brickwork and have the potential of lower heating and cooling bills, so the savings are there to be had from the minute someone starts living there.”

Other advantages of a full brick home include:
· Natural sound barrier, both from internal and outside noises, adding to the quality and comfort of living
· Better fire resistance, often resulting in lower insurance rates
· Termite, vermin and pest resistant

“A full brick home makes good investment sense, as homeowners learn to take advantage of their many benefits today, and in face of the changes of tomorrow,” Mr Ellis said.

Twestival Auction Receives a First National Real Estate Boost

Twestival Auction Receives a First National Real Estate Boost
First National Real Estate

Mike McCaffery, leading auctioneer with First National Real Estate and self-proclaimed Twitter enthusiast, has added his voice and auctioneering talents to this year’s Sydney Twestival, held on Thursday 24 March 2011 at the Beresford Hotel in Surry Hills, NSW.

Mr McCaffery was invited by the event organisers to conduct the live auction of an Aquabumps at Bondi Beach print after they found him on Twitter and commented on his 30,000 strong following.

Twestival is a fundraising event for local charities hosted in 180 cities from around the world. Sydney’s Twestival brings together the Who’s Who of social media for an evening of drinks, networking and live and on-line auction bidding for items including photographs, yet-to-be-released and top-shelf wines and much more.

Mr McCaffery says he feels especially honoured to be asked to be part of the unique fundraising event, which aims to raise around $4,000 for Australian-based charity, Redkite.

“Redkite provides practical support to children, young people and their families who have a loved-one who is ill with cancer,” Mr McCaffery said.

“So, I feel honoured if I can contribute in any way to helping this worthy cause.

“Auctioneering allows me to use my skills to help people realise their home ownership dreams, and being able to extend their use to assist the 8,000 Australian families affected by childhood and adolescent cancer is just an absolute privilege for me.”

The organisers say they have already sold 250 of the targeted 300 tickets, which is more than Twestival events held in New York, London and San Francisco. All monies raised through ticket sales, auction proceeds and donations go directly to support the nominated charities.

Since Twestival began in 2009, it has raised close to $1.2 million for 137 causes around the world. Today, it is a global movement, rallying volunteers in more than 45 countries to bring their Twitter communities together in support of a good cause in a single day.

Free Fuel For A Year - VIC Competition

Free Fuel For A Year - VIC Competition
First National Real Estate

First National Real Estate has launched a competition throughout Victoria where homeowners can win a free year’s supply of fuel from Caltex.

‘Can anyone explain why the cost of fuel has gone through the roof yet the Australian dollar has never been stronger’ the network's National Communications Manager, Stewart Bunn asked.

With interest rates expected to gradually rise throughout 2011, the cost of home ownership will increase. However, the winner of First National’s competition will certainly enjoy a considerable weight being lifted from their budget by not having to pay for fuel for a year.

‘We’re certain this will be a great boost to some lucky family’s or an individual’s budget this year’ said Mr Bunn.

To enter the competition, participants need to visit www.freefuelforayear.com.au and follow the prompts.

The ‘Free Fuel For A Year’ competition is simple to enter and runs between 1 March and 31 May, 2011.

Property drives economy, but who drives property?

Property drives economy, but who drives property?
First National Real Estate

First National Real Estate CEO Ray Ellis, believes property representatives should have a greater say in the future of the property market, and ultimately Australia.

“Property is a key driver of Australia’s economy, being the 12th largest in the world today. It seems crazy to me that, given its significance, representatives from the industry are being left out of determining what is best for the industry, and by association, this country,” Mr Ellis said.

“Real estate and property business owners are in it for the long haul, whereas governments and bureaucrats are only it for as long as they are voted in.

“We are not swayed by whether or not it will be popular with voters, but what is best for the industry long term, to make it sustainable and continue to prop up Australia’s economy so we can weather some of the storms we have seen over recent times.”

According to the latest statistics available through the Australian Bureau of Statistics and IBIS World, real property, including land and buildings, account for 63.9 per cent of Australia’s $10 trillion asset base.

“Industrial and commercial property alone is responsible for 16.2 per cent of this country’s national resources, dwellings for 17.3 per cent, housing and other land for 30.4 per cent,” Mr Ellis said.

“Surely this is a big enough piece of the pie to give property market representatives a bigger voice in saying how to carve it up and maximise its value.”

According to Mr Ellis, it is the people inside the industry who have the greatest interest in its long term, sustainable growth and value, citing the debacle of the planning process as evidence of how governments can get it so wrong.

“The length of time it takes to go through the planning process actually devalues a property and acts as a disincentive for developers,” Mr Ellis said.

“In the end, planning strips value out of a property because of how long it takes and is holding this country back – and that doesn’t even take into account the complexities associated with the actual planning rules and regulations.”

Mr Ellis said even when you consider how much real property dominates Australian households’ assets and debts, it is still evident that property is a key determinant in Australia’s economic future.

“Real property accounts for 62.5 per cent of total Australian household debt and is expected to do so for some time to come,” Mr Ellis said.

“So it makes sense that property experts, and not government bureaucrats, set the direction for property into the future – who knows, perhaps we should even run the country – I mean, Victoria already has a real estate person as Premier.”

Local NSW & ACT Real Estate Agents in Sparkle at Gala Dinner

Local NSW & ACT Real Estate Agents in Sparkle at Gala Dinner
First National Real Estate

First National Real Estate’s NSW members were rewarded for their shining achievements over the past year on Saturday night at the network’s Gala Awards dinner held at the Hilton Hotel in Sydney.

The elegant affair celebrated the best of the State’s real estate performances over the past year, which according to State Chair, Mark Millington, has been exceptional given the market conditions of 2010.

“Last year was a relatively slow market for property, but our members were still able to deliver services beyond customer expectations and were kept extremely busy, evidence of how good systems and hard work pay off,” Mr Millington said.

“Their results over the last year are testimony to their persistence and commitment to ensure they do their best at all times, especially in difficult market conditions.”

On the night the Top 10 Offices in the state were named and included:
Byron Bay First National Real Estate (Sales Office of the Year)
First National Real Estate Wal Murray & Co, Mudgee
First National Real Estate Port Macquarie
First National Real Estate Gungahlin
First National Real Estate Rod Jones, North Narrabeen
First National Real Estate O’Connor, Wollongong
First National Real Estate North Sydney
Burridge First National, Drummoyne
Goulburn First National Real Estate
First National Real Estate Carlingford

First National Real Estate Yamba received the Specialist Individual Office Award for Foundation Office of the Year and First National Real Estate Port Macquarie received the Specialist Individual Office Award for the Best Office Presentation.

Individuals were also recognised with the Top 10 Salespeople being:
Lynette Allison, First National Real Estate Home Central, Hamilton
(Salesperson of the Year)
Stuart James, First National Real Estate Gungahlin
Scott Henry, Holgate First National Real Estate, Lane Cove
Matt Hunt, First National Real Estate Rod Jones, North Narrabeen
Catherine Murphy, First National Real Estate Epping Central
Allison Mifsud, First National Real Estate Epping Central
Daniel Godoy, First National Real Estate Carlingford
Mark Smith, First National Real Estate North Sydney
Paul Edwards, Goulburn First National Real Estate
Maria Field, First National Real Estate Coastside, Dapto

Giuliana Parasility from First National Real Estate Nolans, Burwood and Michael Mehmet Agdiran from First National Real Estate Coastside were named Property Manager Rookie of the Year and Sales Rookie of the Year, respectively. Melanie McLeod from First National Real Estate Epping and Liliane Bastawrous from First National Real Estate Merrylands were awarded the Sales Assistant of the Year and Assistant Property Manager of the Year.

Mr Millington said the First National Awards are an important event as it presents an opportunity for members to come together and share their thoughts and views on the industry and events that affect them, such as the recent disasters across Australia.

“During trying times, like the recent floods and cyclones, our members band together and help each other where they can but often in large states and territories like ours it is only at these types of social events that they are able to come face to face with each other,” Mr Millington said.

“The same resilience we show to overcome these types of challenges is the same approach we take to our everyday work. While each member works autonomously, we know we are part of a larger group and collectively we are all striving for the one goal – a better network which can weather any storm and put our clients first”.

First National Real Estate's $10,000 Home Painting Giveaway

First National Real Estate's $10,000 Home Painting Giveaway
First National Real Estate

First National Real Estate has launched a competition throughout New South Wales where homeowners can win a re-paint of their house worth up to $10,000.

‘Australians just love home ownership and there’s a huge amount of interest in making improvements in order to maximise capital growth. But the last thing people want to do in their spare time is paint their house’ the network’s National Communications Manager, Stewart Bunn said.

One of the most important things you can do to preserve or improve the presentation of your property is keep it freshly painted. The winner of the ‘Pimp Your Property – $10,000 Home Painting Giveaway’ will have their home re-painted using quality Dulux paints to the value of $10,000 – enough to complete an average sized Australian house.

‘In a sense, we all prosper by riding on the back of our property renovations so we took a tongue in cheek view in the naming of this competition’ said Mr Bunn.

‘Australia once rode on the sheep’s back but these days, for most Australians, we build wealth and improve our lifestyles by renovating our properties.

‘I’m sure that whoever wins this competition will improve the value of their home by more than the $10,000 investment First National will be making on their behalf’.

To enter the competition, participants need to visit www.pimpyourproperty.com.au and follow the prompts.

The ‘Pimp Your Property – $10,000 Home Painting Giveaway’ competition is simple to enter and runs between 1 March and 31 May, 2011.

First National Real Estate Says Stamp Duty Too Taxing

First National Real Estate Says Stamp Duty Too Taxing
First National Real Estate

First National Real Estate CEO, Ray Ellis, 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,” Mr Ellis 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 Mr Ellis, 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,” Mr Ellis 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.”

Mr Ellis 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,” Mr Ellis 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.”

Two Of Australia's Largest Join Forces

Two Of Australia's Largest Join Forces
First National Real Estate

Australian Finance Group (AFG), the largest independent mortgage broking group in Australia and First National Real Estate, the largest independent real estate network, have joined forces to deliver a new alternative in finance and home lending.

The partnership means First National Real Estate agents will be able to offer customers the support of experienced, accredited local mortgage brokers in a way that will make the buying process as smooth as possible.

‘Access to a professional mortgage aggregation service is crucial for all property investors, first home buyers and families’ said First National Real Estate chief executive Ray Ellis.

‘The complexity of mortgage products and their ever changing nature means that only brokers with a broad panel of lending options can provide balanced advice. Even the most seasoned property investor would find it difficult to stay on top of the ever-changing range of products available.

‘Our goal is to ensure that buyers dealing with First National agents are given prompt access to comprehensive advice and are able to quickly gain approval so they can purchase with a minimum of delay and fuss’ said Mr Ellis.

Each month, Australian Finance Group (AFG) helps thousands of families move into homes using its network of 2300 brokers around Australia. With access to more than 800 home loans from 34 of Australia’s lenders, AFG offers the largest range of mortgage products.

In addition, AFG will provide First National Real Estate with administration, technology systems software, education, training, as well as communications and marketing support. In turn, First National Real Estate agents will refer customers to local AFG brokers for efficient, expeditious service, at no charge to the customer.

‘To be selected as an alliance partner by a business with such an extensive network of real estate agencies is a strong endorsement of our product offering’ said AFG general manager Mark Hewitt.

‘We are looking forward to the opportunity of helping more families into homes’

Delay Reaction After A Disaster

Delay Reaction After A Disaster
First National Real Estate

First National Real Estate CEO, Ray Ellis says victims of Australia’s recent spate of natural disasters should delay making major decisions until they have had time to recover both emotionally and physically.

“A natural disaster does a lot more damage than the debris and destruction that can be seen,” Mr Ellis said.

“They can leave a person suffering unimaginable losses, stressed and struggling to come to terms with their loss.

“They need to give themselves the time to consider all the options that are available to them before deciding whether they wish to rebuild or move elsewhere.”

According to Mr Ellis the best advice he can offer is to talk to their local real estate agent who may have some helpful tips on a variety of forms of assistance, the renegotiation of loan arrangements or other options they may not have thought of. These tips may include things such as:

Look at whether there is a council buy back scheme for properties in ‘disaster’ zones, and if so, whether you are, or may be eligible now or some time in the near future
Banks and other mortgage providers may be prepared to provide interest holidays or other financial relief
Tenants and landlords should review their rights by visiting the respective residential tenancy authorities in each state – there may be options for rent relief or early termination of lease agreements
Seek the assistance of non-profit organizations that providing housing and construction skills, such as Architecture for Humanity
Recent home buyers who entered an “unconditional” sale contract may also have options depending on the definition of ‘habitable’ or ‘not habitable’ in the contract
It may be worth considering waiting a while before deciding to finally leave the area. While there is often an initial reduction in home prices following a natural disaster event, prices have been found to mostly recover within 12 months, and so the financial impact could be substantially reduced.
Review and update insurance cover to ensure the property is protected from similar disastrous events in the future
Look for discounted services and goods, which can generate significant savings for today and the future i.e. www.flooddiscounts.com.au

“Picking up the pieces of one’s life after a natural disaster is no easy feat, but you can make sure it counts for something,” Mr Ellis said.

“That means taking the time out to rebuild your life so that it is better and stronger than before and you and your family are able to meet future challenges head on.”

Local Agents Sparkle At Gala Dinner

Local Agents Sparkle At Gala Dinner
First National Real Estate

Local Adelaide agency, First National Real Estate Burton Groves, was named among the state’s Top 10 Sales Offices of the Year on Friday night at the network’s South Australian/Northern Territory Gala Awards dinner, held at the Intercontinental in Adelaide where members were rewarded for their shining achievements over the past year.

The elegant affair celebrated the best of the State’s real estate performances, which according to First National Real Estate Burton Groves Principal, Russell Burton, has been exceptional given the market conditions of 2010.

“Last year was a relatively slow market for property, but our staff were still able to deliver services beyond customer expectations and were kept extremely busy, evidence of how good systems and hard work pay off,” Mr Burton said.

“Their results over the last year are testimony to their persistence and commitment to ensure they do their best at all times especially in difficult market conditions.”

Mr Burton said the First National Awards are an important event as it presents an opportunity for members to come together and share their thoughts and views on the industry and events that affect them, such as the recent disasters across Australia.

Australian Floods Appeal

Australian Floods Appeal
First National Real Estate

First National Real Estate has launched a fund-raising 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 Australia floods.

First National Foundation is committed to the support of Australian Red Cross Emergency Services and, through the fund-raising 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 Western Australians 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 www.firstnationalrealestate.com.au

Volunteer Agent Register Launched To Assist With Recovery

Volunteer Agent Register Launched To Assist With Recovery
First National Real Estate

First National Real Estate has launched an internal National Volunteers Register for its 400 plus office network to assist its flood affected members to deal with the anticipated deluge of assistance sought by tenants living in rental properties.

‘As the Queensland floodwaters begin to recede, real estate agents will be swamped with calls for assistance from thousands of tenants living in rental properties damaged or destroyed by rising water,’ First National Chief Executive Ray Ellis said.

‘As well as responding to the needs of our customers, we will also be grappling with the dislocation caused to our own businesses, either as a direct result of flood damage to computers and records, or as a result of the same sorts of staffing issues that will affect many Queensland businesses in the days and weeks to come.’

The network also launched a national Australian Floods Appeal last week, using its First National Foundation which supports Red Cross Emergency Services.

The purpose of the National Volunteers Register is to identify which other members within First National’s network are able to contribute resources in support of recovery efforts in the hardest hit offices such as Dalby, Toowoomba, Toowong, Oxley, Ipswich, Gracemere, Chinchilla and many Brisbane suburban offices.

‘We anticipate that once our tenants are able to return to their homes, our property managers in flood affected regions will come under extraordinary pressure’ Ray Ellis said.

‘Some of our property managers will face astronomical challenges finding trades people to help with the enormous clean up and repair tasks. There may also be additional challenges posed by issues of electrical safety, structural stability, health threats or problems such as insurance companies who may refuse to pay claims as a result of rising water damage’.

Using the register, First National will be able to direct the expertise of property managers and estate agents in unaffected offices to where it will be of greatest help to customers in expediting their recovery.

Given that some First National offices are currently dealing with power outages, equipment losses, or staff are simply cut off from their place of work, First National Real Estate has provided a 24-hour emergency hotline for tenants in flood damaged properties who cannot reach their local First National member.

Tenants seeking help should contact Network Property Manager, Dahlene Qama, on 1800 032 332.

‘We’re doing everything we can think of to support our agents in the process of supporting our customers’ said Ray Ellis.

‘The camaraderie shown by the members and staff of our network has been exceptional throughout this crisis. Our flood affected agents have received calls of support from our real estate agents nationally and our call for donations to the First National Foundation’s Australian Floods Appeal is rapidly raising funds.

‘While there are multiple organisations now fund raising, First National Foundation has pledged to give all the funds it raises in this appeal to Red Cross Emergency Services so the money gets straight to where it is most effective, the response and recovery efforts’ Ray Ellis said.

The First National Foundation Australian Floods Appeal has raised over $18,000 in the past 24 hours but the network is calling for more donations in support of Red Cross Emergency Services.

Donations can be made to First National Foundation’s Australian Floods Appeal by visiting www.firstnationalrealestate.com.au

Queensland Floods

Queensland Floods
First National Real Estate

As floods the size of Germany and France wreak havoc in Queensland, First National agents are doing their bit to contribute to recovery efforts.

Initially, First National members will be very busy securing tenanted homes and managing their repairs in the days, weeks and months to come. At times such as these, our first priority must be the safety and security of the many families and individuals residing in flood affected properties under First National's care. Electrical systems must be checked, interiors refurbished, roofs repaired and pools restored to healthy conditions.

Additionally, the First National Foundation's support of Australian Red Cross Emergency Services will help assure that Red Cross has the capacity to assist all Queenslanders in need.

The Emergency REDiPlan programme has already invested considerable time and resources making sure that Australian communities are well prepared for natural disasters such as those unfolding in Queensland right now. At this stage, Red Cross officials are responding to the flooding and will move into recovery phase at the appropriate juncture.

In December 2010, First National Real Estate members passed the $1 million mark with donations to Red Cross Emergency Services.