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“We need to plan today for the needs of tomorrow and that is never more true than in the current property market where retirees are becoming much more active, as predicted in our Property Market Outlook for 2013, released earlier this year,” First National Nerang Principal, Mike Gray said.

“Baby boomers comprise around 25 per cent of Australia’s population and so are expected to have a significant impact on the performance of Australia’s economy and asset markets, particularly housing, in the coming years.

“Baby boomers own roughly half of the nation’s housing stock according to ABS figures, and are likely to look to fund their retirement by selling down their property assets through downsizing or liquidating.

“The other option for those fortunate enough to have ready access to their finances, is to transform their homes into a place they can stay in for as long as possible or move into one that’s already equipped to accommodate their ageing needs.”

Mike said the age of a home and the people living in it should give cause for thought, to see if the home needs age-appropriate adaptation for maximum comfort and utility.

“Age appropriate changes may even add value to the home and create wider audience appeal in the event of it being sold,” Mike said.

“Age-in-place sanctuaries will become increasingly sought after and so it will be useful for the home owner to highlight those renovations and features they’ve completed when listing the property for sale.”

TOP TIPS FOR MAKING HOMES AGE-APPROPRIATE
• Use floor tiles that have textures to prevent slipping
• Hallways, doorways and turning areas should be wide enough to accommodate wheelchairs, walking frames or mobile assisted devices
• Bathrooms should be expansive, and showers opened up – walk in showers have mass appeal
• Hand rails should be installed around the home, where possible, especially in bathrooms and toilets to aid lifting and lowering
• Maximise safety by adding lighting at the bottom of stairwells, remove steps outside the home and add gradual slopes to allow easy access for wheelchairs
• Install levers instead of doorknobs – they are easier to open for arthritis sufferers and should be at a manageable height
• Avoid stairs, thick carpets or other incidentals that could impede mobility or be easily tripped upon
• In multi-storey homes, at least one bedroom and one bathroom should be located on the ground floor.

Gas and electricity prices are on the rise, fueling 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 Nerang principal Mike Gray 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 Mike, ‘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,” Mike said.

The simple answer, according to First National Nerang Principal Mike Gray, is because it makes financial, legal and common sense to do so.
“Property, whether a home or investment, is a financial investment so it makes sense to use the services of a professional and in this case that is a real estate agent,” Mike said.

“It may seem tempting for many homeowners to keep commission dollars in their pockets, but in the long run there is greater chance of maximising success and minimising stress if an agent is involved, just as there is if you use a lawyer when going to court.”

The key things an agent will bring to the table, Mike, include:
• Realistic indications of a property’s value or rental return potential
• Expert advice on how best to market and promote a property as well as the best method of sale – private treaty (for sale) or auction
• Vetting potential buyers and tenants to reduce time wasted on unsuitable or untenable prospects
• Access to more potential buyers, sellers and renters via their own databases and networks
• Handling sale and tenancy negotiations and communications for maximum outcomes
• Understanding the difference between emphasising the selling points a buyer is interested in and those that a vendor considers important
• Preparation of documentation related to sale and marketing or tenancy

A good agent will also make sure that a process that can be a stressful and time consuming experience is a lot less pressured and more enjoyable.
Mike said the greatest risk in retaining the services of a real estate agent is making sure you choose the right one.
“The relationship between an agent and client needs to one of mutual respect, based on loyalty and trust, because real estate transactions can be complicated and success relies largely on the skills of key players such as the agents and the client’s willingness to cooperate with their strategy for marketing and during negotiations,” Mike said.
“Having the right agent on your side can result in thousands of extra dollars in your pocket, so it is worth taking the time and effort to find the one that suits your needs best.
“Good agents will have excellent negotiation skills and be honest about what you are likely to achieve.

“They will set realistic prices and provide advice based on market conditions, and local supply and demand.

“The best agents will have open, regular and transparent lines of communication with their clients.

“Open, honest, two-way communications will ensure a satisfactory experience throughout the buying, selling or renting process.
“Clients need to be able to express their needs, wants and concerns without restriction.”
Budget, location, size and style are just a few of the hundreds of factors that are considered for a property transaction. Whether buying selling or renting a property, feedback and direction should be integral to the process.
Licensed real estate agents devote a lot of time and effort to gaining experience, qualifications and active buyer contacts.

At First National Nerang, a great deal of energy and resources is spent on honing and developing agent skills, so they can become specialists in their industry and local real estate markets. Additional systems that actively match buyers and tenants to properties also help assure no opportunities are missed.

The network’s gala evening celebrated the best of Queensland’s real estate performances over the past year which, according to First National Real Estate Nerang Principal, Mike Gray, 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 Gray 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 office was named among the Top 10 Offices for the State and recognised for achieving the highest number of Settled Sales in the Residential and Combined categories for a medium size agency. Individual team members also scooped a number of awards including the state’s Top Ten in Residential sales.

Mr Gray 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 Gray said.

Several Thousand dollars were raised on the evening for the First National Foundation which supports a variety of charities and organisations including the Australian Red Cross.

“It’s 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.”

The growing trend in Australians working from home is contributing to an increasing demand for properties with home offices. However, First National Nerang says home owners need to think through the process before committing to a fully fitted out home office.

“Traditionally, house hunter lists used to include the “must haves” of off-street parking, ensuite bathrooms and mature gardens,” First National Nerang principal, Mike Gray said.
“But the home office is slowly making its way on to this list, as the incredible changes in and growing reach of technology encourage more people seek to work from home, especially working parents and those living in regional and rural areas.

Mike said that as more Australian firms are also coming to value the flexibility and expanding talent pool of online workers, the home office continues to rise in popularity.
“The home office is playing a much larger role in people’s working lives and so it is important they take the time and effort to ensure it is as comfortable and conducive to productivity as possible, and also that it adds value to their property,” Mike said.

According to Mike, home office workers need to consider what facilities they require for their home office, which will depend on whether they operate their business from home, or actually work at home.

“Some people such as builders, will perform their work at a clients, while others such as freelance writers, will conduct it in their home office. Either way, the office still has a function to perform and there is a variety of tips and methods to keep in mind, using the ones that best suit the space, individual circumstances and personal preferences,” Mike said.

Tips include:

Choose comfortable, functional and appealing office furniture

Streamline cords by using surge protectors and power strips and use zip ties for loose wires to avoid a tangled, sloppy looking mess

Invest in wireless Internet services for a neater, cleaner look and feel as well as a more flexible layout

Let in as much natural light as possible to stay alert, provide good visibility and create a welcoming atmosphere

Select a quiet, dedicated location, away from activity, for improved concentration and focus

Set noise limits and establish rules with other household members

Add personal touches to create a more inviting space, such as adding splashes of color and plants

Introduce personalised items and pieces to maintain high levels of engagement and interest throughout the day

“The most important tip of all is to remember that in your home office, you are the boss of your own space as well as your business,” Mike said.

“The more comfortable and inviting you make this space, the more inclined you are to want to spend time there and ultimately become more productive.”

A word of caution though from Mike, who advises home owners to consult their local real estate agent before converting a bedroom for a permanent home office.

“In smaller homes, with only two or three bedrooms, the bedroom may prove more valuable than a home office,” Mike said.

“In some cases, a home office in addition to the three bedrooms may not necessarily add value to the overall property.

“Sometimes it may be a better option to retain the room as a bedroom, but create a virtual home office with removable furniture so if you ever sell, the new owners have the flexibility of choice as to how they will use the room to best suit their purposes and individual circumstances.”

“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,” First National Nerang principal, Mike Gray 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,” Mike 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 Nerang recommends first home buyers access the information guides available from government departments, respected bodies such as Archicentre, and independent building information centres.

The Nerang property market on Queensland’s Gold Coast, is set to continue stabilising into 2013, with market conditions in the region holding in the first half of the year on the back of a steady market in the latter months of 2012, according to the First National Real Estate 2013 Property Market Outlook.

The Outlook, released this week, is based on a survey of the 400+ member network, drawing on its experience at a grass roots level and providing insight into what member agents expect the market to do.

“The market reached the bottom of the property cycle at the end of 2011 and has continued to perform quite well,” Mr Mike Gray, State Chair and Principal, First National Real Estate Nerang said.

“Job security, fragile business confidence and concern over global markets still influence prospective buyers. Compared to the post flood period throughout 2011, buyer enquiry and sales volumes rose throughout 2012, but are still well short of what could be called normal/healthy market levels.”

According to the Outlook, key performance indicators show the average number of days a property remains on the market is expected to hold, along with stock numbers and turnover.

A combination of factors including ongoing economic uncertainty in domestic and global markets, job insecurity and low consumer confidence will serve to keep the market soft even in light of current strong affordability levels.

“An easing of net migration to the Gold Coast region has also reduced demand,” Mr Gray said.

The Outlook highlights property prices across all sectors of houses, apartment/strata and land in the Nerang region are expected to remain at current levels.

House and apartment/strata property prices have been the victim of reducing stock levels, although there is a healthier supply and demand equation. Demand would need to exceed supply for a sustained period before values begin to move upward again.

Despite the strong supply of vacant land in the region, land prices are suffering due to buyers opting to take advantage of the very competitive established house prices compared to building a similar home.

The rental market will strengthen as a result of ongoing demand and additional investment stocks coming onto the market.

“This will result in a tightening of vacancy rates, however weekly rental prices are expected to remain steady with the increased supply,” Mr Gray said.

Mr Gray expects the Upgrader segment to represent the strongest growth in activity driven by the improved affordability.

“Sellers are realising that to upgrade, in many cases it is financial advantageous to sell their existing property at lower current market values in order to secure the new home at prices which are now more affordable than ever before,” Mr Gray said.

“The removal of the First Home Owners’ Grant for the purchase of established homes was detrimental for those seeking to step onto the property ladder.

“More than 70 per cent of would be first home buyers prefer established homes due to more affordable prices, compared to new home entry level prices which are generally out of reach for most first home buyers.

“The $15,000 first home buyer incentive for the purchase or construction of a new dwelling will prove to have little influence in stimulating the housing construction sector.”

Interest rates are expected to remain unchanged over the coming six months, which will further support any market improvement, especially for the Middle market, which is expected to be the most active in the first half of 2013.

The ongoing tough economic conditions and job insecurity may result in the recent increase in mortgage defaults in the Nerang region continuing over the first six months of 2013.

“Volumes of mortgage defaults are already at significant levels and will remain high for some period until job markets and the economy improve,” Mr Gray said. “Most repossessions reflect properties purchased in peak market periods with minimal equity and highly geared finance arrangements.”

Key infrastructure projects earmarked for the Nerang and Gold Coast region expected to impact the property market include the construction of the light rail network throughout the Gold Coast, Gold Coast airport redevelopment and increased flight schedules, commencement of some Commonwealth Games infrastructure and possible development of the cruise ship terminal.

“These will add some level of improved confidence to local businesses and employment markets,” Mr Gray said.

Solar power is the most sought after energy efficient feature of a property in the Nerang region.

“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 Nerang Principal, Mike Gray.

“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,” Mike 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.”

“Pretty gardens, spectacular views and a well-presented home will only go so far, especially in a market where buyers would rather be relaxing with a cool drink instead of house-hunting in the heat,” Mike said.

“It is essential home sellers price their property correctly, choose the most appropriate sale method and market it appropriately.  Real estate agents can make a lot of difference here as they have the necessary knowledge and experience to maximise the value of your property.”

Mike said that when it came to pricing the property, home-owners need to consider the market and buying conditions.

“Summer is a time when buyer numbers plateau – particularly during the holiday period – but the current market conditions of low interest rates and affordable prices will prove too tempting for many to pass up,” Mike said.

“So it requires real skill to set the price at a realistic level where both the buyer and seller feel comfortable that they have paid and received a fair price.”

One of the biggest dilemmas summer sellers face is whether to go to auction or sell their house through private treaty (for sale).  In making this decision, there are a number of factors that should be considered such as location, style of property, level of demand and timing of the sale.

“Private treaty sales offer the advantage of a clearly stated price. This can be powerfully attractive to buyers who sell their property just prior to Christmas and are facing settlement in early January Mike said.

“When you have properly priced your property, these types of buyers can be super motivated to make strong, fair offers, with a minimum of negotiation, but it’s essential to have your price right in the first place if you’re going to do business.

‘On the other hand, auctions allow the market to determine the price and competitive bidding can push the price up. Auction also offers the seller certainty that once the reserve is reached, the property will be sold, and there is no Cooling Off Period so the sale is secure – the buyer can’t change their mind. However, the timing of an auction is crucial so it’s best to have auction campaigns completed before the holiday period gets underway.”

When it comes to auctions, Mike said there are two types to be considered: in-room or on-site.

“At an on-site auction, buyers can actually touch and smell what they are buying, which can provide a stronger emotional connection to the property,” Mike said.  “Also, there is an argument to be made that suggests when it comes to those final bids, and the buyer is standing in what is to be their new home if they are successful, they are more likely to go that little bit further to secure their new home.

“However, in-room auctions are not affected by the weather or other environmental factors and when the market is running hot, the enthusiasm for other properties offered by auction at the same event can positively influence the bidding on your own property.

According to Mike, the soft market of recent times is showing a trend towards private sales over auctions, with sellers more inclined to take that route than what they perceive as the uncertainty of the potential outcome on auction day.

“My advice would be to discuss all the options available with a real estate agent, who will help determine which method of sale best suits your individual circumstances and the likely degree of demand for the type of property you’ll be offering the marketplace,” Mike said.

“The agent is there to help weight up the benefits and costs and pro’s and con’s of each scenario and to support a seller through the sale process.  They can only do that if the seller is open and honest about their feelings and share their concerns.

“At First National, we are there to put our clients first, which is why we lead our industry.”