The Blog

Jan 12, 2024

12 Reasons Why Local is Best When Choosing a Real Estate Agent

From browsing properties online, researching estimated values, hopping into 3D virtual home tours, and checking out prospective neighbourhoods on Google Street View, digital technologies have become ingrained in how we buy and sell property. However, there’s one critical factor within the real estate industry that technology hasn’t changed. And that’s the vast and varied benefits of engaging a local agent with on-the-ground experience and expertise. Here’s why choosing local makes all the difference: Priceless community knowledge Whether you’re buying or selling, there’s so much more involved than the physical house – it’s also about the local neighbourhood – and your local agent is a part of this. From school zoning to proximity to public transport or just where to get a good cup of coffee, local agents know the ins and outs of the local area and how these align with buyer’s aspirations or needs. Extensive market insight                                                                                                                                                                                                                                                                             Agents operating in your local neighbourhood have a wealth of knowledge when it comes to data like recent sales for comparable homes within your specific area, market trends and property                   values. This is invaluable when buying or selling. Local marketing and advertising know-how With an in-depth understanding of your neighbourhood’s demographics, local agents can hit ‘hot buttons’ when it comes to effective marketing and advertising strategies for your home. They’ll understand which key features of your property to promote, and which online platforms or media will best engage potential buyers. Crucial cultural insight Cultural nuances and customs can significantly influence real estate transactions. A local agent who lives within the community will likely better understand any cultural factors in play, ensuring no barriers to a smooth transaction arise. You simply can’t access this level of insight from data or trend reports. Understanding of local rules and regulations Real estate transactions are packed with legalities and regulations, and these often come with local nuances. From zoning laws to conveyancing procedures and differing sales contracts across different states and territories, local agent insight is vital for navigating these variances.   Nitty-gritty, granular data From timing to terms of sale, local real estate agents are often privy to more granular market data and insights to help you make more informed sale or purchase decisions. They may be aware of market micro-trends, which can influence how and when you sell or buy. It’s who you know (and what you know) Local agents build extensive local networks, often making connecting with complimentary services like mortgage brokers, property lawyers, and inspectors a breeze. Best of all, these connections will also have a solid understanding of any local nuances. Accessible and available Physical proximity counts when you want to view a home at short notice, need a quick face-to-face update, need a problem resolved quickly, or are ready to sign a document. This accessibility facilitates a smooth and efficient way of working – which is advantageous in the often fast-paced real estate industry. Superior access to local properties A good local agent will not only be familiar with the local inventory available but may even know homes coming on the market soon or people willing to sell for the right price. This superior access is hugely beneficial in a competitive market or when you have specific requirements.   Negotiation pros Familiarity with local market dynamics enables local agents to negotiate more effectively on your behalf. They may have insights into the seller’s motivations or local pricing trends that can work in your favour during negotiations.   Support local Choosing a local agent supports local businesses and, as a result, the community in which you reside. Real estate transactions involve various local professionals, and by working with them, you’re contributing to your community’s economic growth and future.   Care beyond the transaction Beyond the sale or purchase of a home, local agents will often continue to provide ongoing support and guidance. This can include recommendations for local contractors and community events to get involved in if you’re new to the area or purchasing an investment property; they may facilitate property management for you. Your local agent – a smart partnership that lasts a lifetime While it’s essential to consider the qualifications, experience, and reputation of the agent you choose, extensive local insight and lived-in community knowledge are invaluable when selling or buying a home. And in many cases, your relationship with a local agent will extend well beyond the initial transaction – as your life and needs change, they’ll be there to assist you with your next move. With over 300 offices throughout Australia and New Zealand, First National Real Estate agents are part of our local communities. Connect with your local agent today!.

Dec 19, 2023

Rental markets remain "EXTREMELY TIGHT"

CoreLogic’s national Home Value Index (HVI) rose 0.6% in November, the smallest monthly gain since the growth cycle commenced in February. Despite the slowdown, the national HVI reached a new record high in November. After falling -7.5% from a peak in April 2022 to a trough in January 2023, housing values have bounced 8.3% higher over the past 10 months, demonstrating a clear ‘V’ shaped recovery. While the headline trends have slowed, multi-speed conditions have become increasingly evident across the capitals, with three cities recording a decline in values over the month. These were Melbourne and Hobart, both down -0.1%, and Darwin, down -0.3%. Growth in Sydney home values also slowed sharply, reducing to 0.3%, the smallest monthly gain through the recovery cycle to-date. Rental Markets Remain ‘Extremely Tight’ Rental markets remained extremely tight in November with capital city vacancy rates at 1.0%. Adelaide (0.3%), Perth (0.6%) and Melbourne (0.8%) are recording the lowest rental vacancy rates, while Sydney (1.2%) and Brisbane (1.3%) continue to record rates well below average levels. Rents have been rising at the national level since August 2020 (40 months), with the quarterly trend ratcheting higher over the past two months. However, there is some diversity, with rental conditions easing in some markets. Vacancy rates in Hobart (1.9%) and Canberra (1.7%) are higher relative to other markets, providing some respite across both house and unit rents. At the other end of the rental growth spectrum is Perth, where growth in rental costs is leading the nation. House rents across Perth were up 3.1% over the three months ending November, while unit rents rose even faster, up 3.4%. November also marks the first time in six months where rents have risen at a faster rate than home values, providing some support for gross rental yields nationally. CoreLogic Research Director, Tim Lawless, said “Yields were on a recovery trajectory between early 2022 and early 2033 as housing values fell while rents rose. As housing values started to rise in February, gross yields stabilised, before once again compressing as growth in values outpaced rents,” “With the rate of growth in home values now easing in most regions while rents continue to rise, we could see yields trend higher in some cities once again. However, when considering the cost of debt and higher maintenance costs, net yields are likely to remain very low for leveraged investors.” Rental Conditions to Loosen Rental conditions are set to loosen. It’s likely we are moving through a peak in net overseas migration, but other factors should see vacancy rates rise and rental growth slow further including a gradual normalisation in household size, and reduced rental demand as ‘HomeBuilder’ completions flow through. Build-to-rent developments should also help to gradually add to rental supply, however we aren’t likely to see a material increase in built to rent supply until at least 2025.

Dec 12, 2023

Navigating Commercial Property Leases: A Closer Look at GST on Rental Payments

In the complex world of tax, the Goods and Services Tax (GST) plays a pivotal role in shaping the financial landscape. One area that often raises questions and sparks debates is whether GST is applicable to commercial property rents. As businesses navigate through the intricacies of tax compliance, understanding the implications of GST on commercial property rentals becomes crucial. In this post, we’ll delve into the nuances of this issue, shedding light on the factors that determine whether GST is payable on commercial property rents. The application of GST on commercial property rents hinges on various factors, and one of the primary determinants is the nature of the transaction. According to the GST laws, the lease, tenancy, easement, and license to occupy space fall under the definition of “supply.” However, not all supplies are subject to GST, and this is where the complexity arises. Key Factors Influencing GST Applicability: Threshold Limit: Small commercial property owners or those whose aggregate turnover is below the prescribed threshold may be exempt from GST on their rental income. The current threshold for small commercial property owners is $75,000. Type of Property: The nature of the property, such as whether it is used for residential or commercial purposes, can influence the GST applicability. Generally, residential properties are exempt from GST on rental income. Registration Threshold: Property owners whose aggregate turnover crosses the GST registration threshold are required to register for GST and, consequently, normally need to charge GST on their rental income. The current GST registration threshold is $75,000. Input Tax Credit (ITC): Property owners registered under GST may have the opportunity to claim input tax credits on certain expenses related to the property. This can affect the overall tax implications. For example, an owner charges GST on rent received, however, receives an input-credit on expenses paid that have GST on them to reduce their overall GST that they have to remit to the ATO as part of their Business Activity Statement (BAS). Conclusions: In conclusion, the applicability of GST on commercial property rents is a multifaceted issue that demands a careful examination of various factors. It is essential for property owners, businesses, and tax professionals to stay abreast of the latest updates in GST laws and regulations. As the GST landscape continues to evolve, seeking professional advice becomes paramount to ensure compliance and optimise tax strategies. While some property rentals may fall outside the purview of GST, many are subject to its provisions. Therefore, understanding the specific circumstances surrounding a commercial property lease is crucial for making informed financial decisions. Remember, navigating the intricacies of taxation is an ongoing process, and staying informed is the key to financial success in an ever-changing regulatory environment. Disclaimer: This blog provides general information on GST for commercial property rents and is not to be considered financial or taxation advice. Consult your accountant or financial professionals for advice tailored to your situation, objectives and needs.

Dec 12, 2023

2024 Outlook: Trends and Projections for the Australian Property Market

After a year of twists and turns in Australia’s property market, where prices fell, stabilised, then began rising again in many areas, we delve into the projected trends and dynamics of the Australian property market for next year - 2024. This article encapsulates key factors influencing the market, including potential monetary policy shifts, affordability-driven market expansion, and progressive housing initiatives. Our forecast offers valuable insights into how these elements are expected to shape the real estate landscape, providing stakeholders with a strategic understanding of the upcoming market conditions.   Monetary Policy Adjustments Boosting Market Dynamics In 2024, the Australian real estate sector may experience a transformative shift due to potential monetary policy adjustments. Despite current constraints on affordability and borrowing capacity capping potential buyers' purchasing power, there is anticipation for measures that could positively alter this landscape. Notably, a reduction in interest rates or implementation of stimulative fiscal policies could catalyse a surge in demand, potentially leading to a significant uptick in property prices towards the latter half of 2024. An alternative, such as the modification of the mortgage serviceability buffer, could expedite market entry for numerous potential homeowners by enhancing borrowing capabilities and alleviating debt maintenance costs. This adjustment is poised to intensify market demand, precipitating a rapid escalation in housing prices. Affordability-Driven Market Expansion We also expect we’ll witness a marked urban expansion and gentrification, driven by a widespread pursuit of affordability. Prospective homeowners are likely to broaden their search to include secondary suburbs and previously overlooked areas. This trend is anticipated to be fuelled by the federal government's 'Help to Buy' initiative, a shared equity scheme offering up to 40% ownership assistance, set to launch in 2024. However, eligibility will be limited to residents in states that endorse the program through legislative support. Furthermore, a notable increase in generational wealth transfer from Baby Boomers could significantly influence purchasing power and preferences, exacerbating the competitive pressure on the housing supply. Governmental efforts to facilitate homeownership are likely to further strain the housing market, intensifying competition for available properties. Embracing Progressive Housing Initiatives 2024 is poised to be a landmark year for housing and planning reforms across Australia. A notable shift in public sentiment against development or increased housing density in their suburbs is expected to transition to greater levels of acceptance and approval. There is a growing consensus towards adopting visionary and radical approaches to housing development and affordability, particularly in densifying urban areas. This might involve reconfiguring planning authorities, moving away from local government control to mitigate the influence of those residents who are opposed. Such a strategic redirection aims to shape future urban landscapes in alignment with evolving demographic needs, moving beyond the conventional planning paradigms. The federal government's initiatives to enhance housing affordability and broaden access for first-time buyers are anticipated to significantly stimulate the property market.

Dec 12, 2023

Brisbane CoreLogic RP Data Market Update December 2023

Dec 11, 2023

National CoreLogic RP Data Market Update December 2023

Nov 21, 2023

Why First National Real Estate for your local property needs?

Are you on the hunt for a reliable and experienced real estate agency to guide you through your property journey in our wonderful neighbourhood? Look no further than First National Real Estate West End. In this blog, we'll delve into the reasons why our agency stands out among the rest, and why we should be your first choice for all your local property needs. Australia's Happiest Customers At First National Real Estate, we take immense pride in consistently impressing our clients. In numerous surveys of Australian adults who have used real estate agents, we consistently emerge as the top-rated agency in the categories Australians consider important. From communication and advice to problem resolution and value for money, we earned top scores across the board. When you choose us, you're choosing an agency that goes above and beyond to ensure your satisfaction. Exclusive 5-Star Service We believe in keeping you well-informed throughout your property journey. Our agents are dedicated to providing you with all the facts and guidance you need to make informed decisions. When it comes to communication and advice, First National Real Estate stands head and shoulders above the competition. We're here to make sure you have the information you need when you need it. Problem Resolution Experts Property transactions often come with their fair share of challenges. Whether you're renting, buying, or selling, you can count on our expertise to navigate any issues that may arise. Our agents act as intermediaries, working diligently to ensure that everyone involved is satisfied with the resolution. Value for Your Money While exceptional service comes at a price, we're commercially competitive and committed to offering you the best overall value for your money. First National Real Estate consistently outranks competitors in this category. When you choose us, you're not just getting quality service; you're also getting excellent value for your investment. Comprehensive Marketing Marketing is essential in the property market, and we excel in this area. Our agents and property managers are skilled at targeting customers who are currently active in the local marketplace and attracting the right buyers or tenants. With First National Real Estate, you can trust that your property will receive the attention it deserves in the market. Expertise in Contract Handling Handling contracts is a critical aspect of any property transaction, and we leave no room for error. Our agents ensure that all parties involved are on the same page, and we don't move forward until everyone is satisfied. We're proud to consistently rate highly for contract handling, reaffirming our commitment to precision and professionalism. Additional Moving Services Moving can be stressful, and we understand that. That's why we offer assistance with essential services such as electricity and broadband setup to make your transition smoother. We're not just your real estate agency; we're your partners in settling into your new home. At First National Real Estate, we're more than just a local agency; we're your dedicated partners in your property journey. Choose us, and you're choosing excellence, expertise, and a commitment to your satisfaction. When it comes to local property needs, we've got you covered. Contact us today to experience the First National difference firsthand. Think First National Real Estate 4,000+ real estate agents across Australasia $50 billion in property assets under management 25,000+ properties sold annually 300+ offices throughout Australia, New Zealand, Vanuatu and New Caledonia Major sponsors of Kids Helpline, Australia’s only free, private and confidential 24/7 phone and online counselling service for young people aged 5 to 25. We put you first.

Nov 8, 2023

What’s the 2023/24 outlook for commercial property?

As we are now full swing into the 2024 financial year, the global economic outlook is fraught with serious uncertainty. Globally, Central Banks are in a concerted effort to get inflation back down to target levels, and almost all have tackled the problem head on with increases in local cash rates. The Australian commercial property industry is highly sensitive to movements in interest rates, both from a capital and occupancy perspective, making it more important than ever for investors, owners, occupiers and developers to understand the economic outlook. While the end of the 2023 financial year was a mixed period for the sector, with investor uncertainty, a challenging leasing market and lower transactions, this was fortunately offset by solid reported profits underpinning the commercial real estate market. The recently released Real Estate Institute of Australia End of Financial Year Economic Outlook for Commercial Real Estate report finds that while consumer confidence has been near record lows for some time now, business conditions for some sectors is still strong. “Unemployment remains near record lows, and while business confidence is flat, it is nowhere near the recessionary levels of consumer confidence,” according to REIA President, Hayden Groves. “While office vacancy rates remain high across the country, particularly in the Sydney and Melbourne CBDs, occupancy across most asset classes have held up well considering the pace of interest rate hikes are yet to fully impact. “One key driver of demand for commercial real estate is overseas migration. Both the March and September 2022 quarters were record years for net overseas migration, which is extraordinary given how strong migration intake was prior to the pandemic. Small-scale commercial assets are often a target for new arrivals keen to start a business and with reasonable supply, high-street stock is finding new occupants. “The emergence of the Build to Rent (BTR) commercial property investment category in more recent years is beginning to play an important role in providing additional housing stock where tenants are demanding it, opening additional investment channels for institutions.” Mr Groves said that even as markets are quite certain inflation has peaked, long term interest rates remain high. “In April 2021, the 10-year bond rate in Australia was 1.68 per cent, which supported low commercial property yields. Now, the 10-year bond rate is 3.47 per cent. While this is down from a peak of 3.71 per cent in February 2023, there is no significant downward trend in long term interest rates globally. “Markets remain unsure as to how long interest rates will need to remain restrictive in order to get inflation back down to target levels. “Indeed, the RBA has been clear that getting inflation back down to the target range of 2 to 3 per cent is their ultimate goal. The impact of high inflation and interest rates to the commercial property sector has been profound,” he said. According to one property group, Q4 2022 global investment volumes were down 58% year on year, a massive decline on the all-time high set in Q4 2021. According to another, prime grade office yields increased by 30bps since the low point in early 2022. However, over the same time period, the Australian 10-year bond rate has increased by 196 bps. Unless there is a major drop to the 10-year bond rate, which seems unlikely while inflation remains elevated (even if falling), capitalisation rates in the commercial property sector are almost certain to increase as we will receive more transactional evidence over the rest of the financial year. Download a full copy of the REIA report here.