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 Media Release – 10 April 2012
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
       
 Residential vacancy rates in most capital cities slipped for the second month in a row in February, with Hobart the only capital recording an increase in available rental properties of 0.2 per cent.
Data from SQM Research shows the national average fell to 1.7 per cent in February, down from 1.8 per cent in January.
Hobart is breaking the trend as vacancies increase, with rates rising from 1.0 per cent to 2.3 per cent over the past 12 months.
Melbourne still has the highest vacancy rate at three per cent, yet also witnessed the biggest monthly drop after falling 0.5 per cent. However, the Victorian capital has been oversupplied for several months. The report reads, “This may come as good news for landlords, with the city’s vacancy rate coming down to three per cent, a figure seen by SQM Research to be at equilibrium.”
Perth vacancies remained steady at a national low of 0.6 per cent. However, listings that have been advertised for three weeks or more, when compared to the total number of established rental properties, dropped by more than a hundred, from 1,084 in January to 973 in February.
However, according to the Real Estate Institute of Western Australia (REIWA), the vacancy rate of Perth was higher, at 1.6 per cent. Yet the REIWA report acknowledged this was the lowest vacancy rate experienced in Perth for more than four years.
“We particularly note conditions in Perth have now swung heavily in favour towards landlords and we are now expecting rents to rise in Perth by at least five per cent for this year,” said Louis Christopher, managing director of SQM Research.
Perth real estate agencies have been reporting strong demand for rental properties, with one agent in the city’s south reporting 82 separate groups of people looking at one property which was renting for $390 a week.
This follows a report from another Perth agent that a rental property attracting more than 20 interested parties, with the property renting for $20 above its original asking price.
According to SQM Research, Sydney (1.5 per cent), Adelaide (1.3 per cent) and Canberra (0.7 per cent) all dropped by 0.1 per cent on-month, while Darwin (0.7 per cent) and Brisbane (1.6 per cent) both slipped by 0.2 per cent.
Source: Real Estate Business
       
With March quarter sales results now quantified, capital city home values have effectively stood still since 31 November 2011. This is the strongest result since March 2011 when values increased by 0.7 per cent, according to RP Data.
Sydney’s housing market has been the ‘primary growth driver’ nationally because home values lifted 1.1 per cent over the quarter.
However, prices fell in many other capital cities, dragged the national average back to zero for the quarter. Adelaide experienced the hardest fall – homes there are now worth 1.5 per cent less than in the final quarter of 2011.
Resources rich states had a bumper quarter with Perth, Darwin and Brisbane’s home prices all increasing in value – 1.4%, 1.1% and 0.8% respectively.
 Down 4.4% past 12 months
What this all adds up to is continuing softness in the national marketplace and a fall in overall capital city values of 4.4 per cent in the past 12 months.
So, how did each of our capital cities perform in the past 12 months?
- Hobart prices fell 7.3%
- Brisbane prices fell 6.1%
- Adelaide prices fell 5.7%
- Melbourne prices fell 5.4% (But they’re still up 45.5% since 2007)
- Canberra prices fell 0.3%
- Sydney prices fell 3.2%
And what about the regions?
For the rest of each state, dwelling values fell by an average of 2.5 per cent.
So, Canberra, where times are never really bad and people are always confident about their employment status, turned out to be the star performer with values down just 0.3 per cent over the year.
Affordability up, FHBs coming back
According to Ben Skilbeck, managing director of Rismark International, a number of factors point toward an improvement in market conditions in recent months.
As a result of these falls in values, the price of buying a home is now below the decade average. Also, more people are preparing to buy a property.
The ABS reports that home loan approvals continue to lift as well. They’re now at their highest levels since November 2009, and, the value of all approved loans is higher.
As a share of all approved loans, first homebuyers are back at levels not seen in two years.
Investors reap rewards
Although capital city rental housing yields have only improved modestly from 3.6 per cent to 4.1 per cent, apartment yields are ahead – increasing from 4.4 to 4.8 per cent over the same period.
However, hold onto your seat if you’ve invested in Darwin, Perth or Brisbane. These three cities have bounced back from recent lows, improving by 22, 21 and 18 per cent respectively.
Sales volumes fall
The number of properties for sale continues to fall.
Having peaked late last year, the number of days it takes to sell a home should now begin to fall and, as buyers have fewer properties to choose from, negotiations will more often lead to successful outcomes.
Arrears down
Australians are paying down mortgages at the fastest rates since the peak of the GFC.
The Reserve Bank reports mortgage arrears have fallen from 0.7 per cent to 0.6 per cent, comparably low by international standards.
Nearly 50 per cent of owner-occupiers are ahead of schedule with their repayments. In the December quarter, total excess payments were running at twice the minimum – up 80 per cent from last year’s March quarter.
Much of these payments have come from salary bonuses or sale of shares. Households have typically injecting an extra 3 per cent of disposable income into home loans since the GFC.
For First National’s complete 2012 market outlook, see 2012 Property Market Outlook.
SOURCES:
RP Data-Rismark March Hedonic Daily Home Value Index
Sydney Morning Herald
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 An oversupply of units and apartments has created a unique buying opportunity at The Entrance, just north of Sydney, according to local agents.
Finding an apartment to buy in the popular holiday suburb of The Entrance is not hard to come by.
Of the 166 properties for sale in the beachside town, 112 are apartments and units.
And given the huge availability, buyers are in a strong position to negotiate prices.
Philip Martin of First National The Entrance said the situation presented a great buying opportunity for savvy investors and those wanting to enter the property market.
“With the number of properties on the market, owners who have to sell are a lot more reasonable with prices,” Mr Martin said. “This is a good situation for investor buyers who can expect a rent return of around six to seven per cent.
“The high percentage of mortgagee sales over the last few years has put downward pressure on prices.
“But we are seeing the market start to recover. Compared to this time last year unit numbers are down and slowly selling off.” Mr Martin said investors looking to cash in high rental returns and Sydneysiders securing weekend getaways were the main buyers taking advantage of the situation.
Visit First National The Entrance’s website for more information www.theentrancere.com.au
If you buy, sell, rent or lease from First National between now and 31 August, you have a chance to win a share of $50,000 in cash prizes with First National’s $50,000 Cash Drop
       
 Media Release – 27 March 2012
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?”
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For further information contact Stewart Bunn, National Communications Manager, First National Real Estate, on 0413 624 317
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 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.
       
If you’re an independent agent or you currently belong to a franchise network, you might have wondered how life at First National compares.
As a not-for-profit entity, First National’s chief purpose is to generate products and services for our agents to prosper. And, because we’re not keeping profits for ourselves, we bet we’ve done more in the first 65 days than our competitors have for their agents!
This video was sent to our membership recently to keep them in the loop.
Talk to one of our Network Development Managers about how First National could do more for you. Call 1800 032 332 or visit www.joinfirstnational.com.au for more information.
       
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In March 2011, a private member’s bill to protect against carbon monoxide poisoning was passed in Federal Parliament after two young boys in country Victoria died from carbon monoxide poisoning.
