Shift the focus

Being in the property market I’m obviously an avid follower of all the commentary and statistics released on the state of the market.

And to put it bluntly: it’s totally confusing and often seems to be a self-perpetuating cycle of either talking the housing market up or down at any point in time.

How does this constantly changing and conflicting commentary affect the buyers, sellers, investors and renters out there?

You may well ask.

So in this column my aim is to demystify the commentary and provide you with more useful information. After all, this is real estate in the 21st century where all of us have access to a wealth of information in real time, in fact, so much so, that it’s a virtual minefield to attempt to wade through.
What you need to know as a player, or potential player, is: where is the weather vane pointing at the moment and what does it mean for your own situation?

The good news is that positive sentiment is returning to the Perth housing market following the two cuts in official interest rates late last year and there are a heap of other positive fundamentals.
Evidence of this can be seen in the increase in rental and sales activity.

The combination of factors that led to the long period of inertia (and stagnation) in the Perth housing market is clearing and it’s well and truly time to shift the focus away from the negative, “GFC-inspired” commentary to a new dynamic.

According to the latest set of real estate indicators from REIWA, there was a 4.5 percent rise in the number of houses sold in the last quarter of 2011 and a 6.4 percent jump in the number of apartments sold. Average selling days dropped to 77 from 81 in the same period while at the same time, the number of properties on the market fell by 10 percent.

For renters, the market is tight and vacancy rates continued to slide. The vacancy rate has fallen to just 2.5 percent in Perth and the median rent has risen a further 1.3 percent to $400 a week.

So, what does this mean for the renter, the investor and those wanting to buy? What should you be doing?
Firstly be cautious about market generalisations as outcomes can vary from suburb to suburb and in different price ranges.

Accepting this:

• Investors should take note of the improved rental returns and assess the potential for property value growth
• Sellers should accept that price growth may not be dramatic in the short term and to have clarity about their selling expectations prior to going to market. Select an agent that has the right selling solutions
• Renters should secure longer tenancy terms to help manage any potential rental blow out
• Buyers should understand that real value is abundant in the market right now and to act before this period of opportunity passes

My best advice: don’t take on the clichés or outdated views so prevalent out there. Get involved in forums where there is informed, practical and incisive dialogue about the market.

IN Travel

Travel broadens your horizons, no matter what your age and Mary Moody believes challenging yourself keeps everything in working order.

Sitting about knitting is not the kind of life Mary Moody has ever had in mind for herself. Keeping still and not pushing herself has never been an option.

As well as publishing four best-selling travel memoirs, Mary, 62, is also well known for presenting Gardening Australia on the ABC. She lives in Katoomba, near the Blue Mountains on a farm with ducks, sheep and a good-sized veggie patch. Travel is a regular part of her year whether it’s visiting Asia or staying at her second home in southern France.

In the early 1990’s adventure travel company World Expeditions approached Mary to guide a group to the Himalayan valley of Har-ki-dun to revel in the extraordinary local plant species.

Since then Mary has lent her expertise in plants, a love for yoga and exploring to guide numerous trips into Europe and Asia for the group. This year she will do four different trips, all of which link with a personal passion and an area of knowledge: exploring the food and wine of south-west France, the flowers and festivals of Mongolia, enjoying yoga and trekking in India plus a special trip to Nepal designed for grandparents and their grandkids.

“I’ve totally fallen in love with this kind of travelling,” Mary says of World Expedition’s brand of small group travel. “I’ve found them to be the most life changing of experiences as you get a chance to absorb history, culture and modern day life.”

Mary has taken two of her 10 grandchildren on the nana-grandkids Nepal trip and loves the idea of getting them away from their everyday urban lives.

“It’s one thing to see it on television, but it’s not the same to be there and see how other people live. I think it’s a bit of a reality jolt and a little challenging, but what a great way to learn about the world. I also had seven of them for two weeks in the school holidays and they can’t just sit there and watch movies. They have to get out, explore and swing over the creek.”

If Mary’s own grandchildren are anything to go by, she says their experiences have not only created a love for travel but an attitude of philanthropy and wanting to give back. “The trip really made them think a lot about things other than their small circle of friends and turn their eyes to a bigger place.”

Mary loves the fact that a large part of the trips she takes involve walking, so you get to see life from the ground, rather than through the windows of a car or bus. That’s when you can’t miss the baby in the hammock on the porch or the newly tended flowers in someone’s garden.

“I think you feel an enormous connection that way and people do like to feel part of the place they go to. For example, during the French trip we have picnics and have drinks in the homes of people I know.

“People who have been on these trips 10 or 15 years ago are still in touch and others keep coming on new tours, which is brilliant. There’s a familiarity there and it has bred some really strong relationships as a result of these adventures.”

IN Mary Poppins

Armed with musical lessons, that much-loved governess named Mary Poppins flies into town at the end of March.

Lisa O’Hare shares at least one thing in common with Mary Poppins – they are both sticklers for good manners.

Which is a good thing, because it means Lisa is perfect for the role of Mary Poppins in the internationally popular musical which opens at Burswood Theatre in March.

Mary Poppins was originally created by Queensland author P.L. Travers, who after working in Sydney as an actor and journalist moved to London. Her first Mary Poppins book was published in 1934 and the enduring story of the practically perfect governess enchanted millions of readers. Walt Disney turned Mary Poppins into a movie in 1964 and it has remained one of Disney’s best-loved releases.

The musical brings the books and movie to the stage with enduring songs like Chim Chim Cher-ee, Spoonful of Sugar and Supercalifragilisticexpialidocious and the first production opened in 2004. Since then the story of the Banks family and their nanny Mary Poppins has been seen by more than eight million people worldwide.

Lisa O’Hare has already played the role twice before, including during a UK national tour. She has also played other iconic female characters like Eliza Doolittle (My Fair Lady), Sally Bowles (Cabaret), Guinevere (Camelot), Gigi (Gigi) and Mina in Dracula as well as guest starring in television shows Castle, Undercovers and The Closer.

“It’s such an honour to play such an iconic character,” Lisa says. “There are probably only five of us who have had the privilege. It’s a wonderful challenge to step into the shoes of people like Julie Andrews and Audrey Hepburn.

“Mary Poppins is this other-worldly and eccentric character. She’s a magical and spiritual healer and teacher who steps in and takes over. She doesn’t only teach the children lessons but teaches parents plenty too.”

Hailing from the UK, Lisa now lives in Los Angeles with her American husband Brian, whom she met while working on My Fair Lady. She grew up on a diet of Oliver and Annie until her dad threatened to burn the videos.

“I loved musicals and come from quite a musical family. When I heard they were going to make a musical I was thrilled at the thought of even being considered.”

Of course there’s the inevitable question: what’s it like to fly?

“What can I say,” Lisa chuckles, “you’re either born with it or you’re not.”

Mary Poppins opens at Burwood Theatre on March 31 for a limited season. Tickets from Ticketek.

First home buyers expect first rate homes

Although improving in some aspects, 2012 may be a period of ‘steady as she goes.’ REIWA is reporting that the residential property market’s activity is about 25% lower than long-term averages. Buyer’s sentiment feels slightly defensive and this is reflected in the considered approach buyers are adopting.

However, with nearly one in five new mortgages loaned to first homebuyers in January, it is clear an influential segment of the market is emerging. The balance between this group of people deciding to take up home ownership and those deciding to stay-put renting, is a significant catalyst and a contributing factor to the ups and downs of the market.

After the Government’s First Home Buyers Boosts we saw a major upswing in 2009. Albeit an artificial means of inflating prices and a distortion of the market…but certainly an influential act nonetheless.

While the activity in this sector gives some cause for wary optimism, affordability in 2012 may also see many choosing to remain in the renting game. This would consequently have a major impact on the investment market resulting in stronger rental returns for landlords. Moreover, with this high demand on the rental market, yields will be driven up and vacancies forced down; combine this with more affordable interest rates and there will be some movement in investments.

There have also been some structural shifts in societal norms which are important factors to consider when analysing market trends. One of particular note is; people are deciding to live at the family home for much longer. The average age many would become first home owners in previous years used to be around the age of 24…now many are waiting until they are at least 28. This is partly lifestyle driven and also financially driven. The emerging generation of new buyers seem to be much more inclined to wait until they can afford their ideal first home instead of just ‘making do.’ Perhaps it has also become more socially acceptable to stay with the parents longer? And before us baby boomers go to mouth the words…“back in my day…” just accept the fact that things have changed and may be for the better.

The other trend that we are noticing is that less first homebuyers are building new homes with currently seven out of ten purchasing established properties. Construction is a powerful means of stimulating the economy and it’s often a tool Governments use when the economy is dull. So this decline in new builds in the residential market will also be having a knock-on effect especially in the pricing of established homes.

This trend is likely being driven by established homes potentially offering a better value proposition and a much quicker way for first homebuyers to get into the market. Many also have a strong desire to stay relatively close to the city centre and other urban nodes plus affordable house and land packages in the inner suburbs are now basically non-existent. The rise of DIY home renovation TV shows could also have sparked the interest in buying established homes. But perhaps it just comes down to the simple fact that they are seeking something different.

As already mentioned, the current property market may not be in an ideal state, but the silver lining is we are living in an ideal State, a State that is well placed to weather the economic issues outside of Australia. So whether you are a first homebuyer, a tenant, a landlord, (or even a parent housing your 28 year old children), if you want to stay ahead of the property game, it is crucial to stay informed or use an informed agent or property manager and be flexible to market conditions. As one thing is for sure; market conditions will never stay the same.

IN Spirit

For some it’s just another public holiday but for others Anzac Day will be spent marking the occasion. What better way to do so than by spending April 25 on a European battlefield where Aussie soldiers gave their all.

If you want to know anything about Australia’s involvement in the world wars, Mat McLachlan is the guy to talk to.

The Sydneysider is one of the country’s leading war historians and battlefield guides, particularly when it comes to Australian troops. He has published a number of books and appears regularly in the media as a commentator. He also designs the tours for Mat McLachlan Battlefield Tours and guides many of them himself.

While Battlefield Tours cater largely to boomers, growing numbers of young people are keeping the Anzac legends alive and visiting sites like Gallipoli. Mat says the images of those Australians who volunteered for World War I and then fought for their country still seem to stand for the qualities considered quintessentially Aussie today.

“I think they are because they identify with what it means to be Australian,” Mat says. “It’s hard to explain it in simple terms but I think people look back on that time as a simpler time and a golden one. We’d just achieved federation and I think those young men felt they were helping the mother country and wanted to stand up for democracy. I think people are proud of that.

“The landing at Gallipoli sums up everything that’s good about Australia – having a go, helping your mates – all the good things we like to think about ourselves. We’ve taken the best from that battle. In the face of disaster these men hung on and did the right thing.”

Anzac Day is of course one of their busiest times of the year for the group. Battlefield Tour’s most popular trip is the Western Front Tour, which starts on April 18 and allows travellers to attend the Anzac Day Dawn Service at the Australian National Memorial at Villers-Bretonneux, where we lost 45,000 men.

Other stops include the Australian 2nd Division Memorial and the remains of trenches captured by Australian troops on the 1918 battlefield of Mont St Quentin, the iconic town of Ypres and a Last Post ceremony at the Menin Gate, where the names of 54,000 missing British and Commonwealth soldiers are recorded.

“People really seem to want to travel to different battlefields for Anzac Day and they seem to want to spend it on foreign battlefields,” says Mat about how Battlefield Tours came about. While there are plenty of tours for veterans and their families, particularly in the US and UK, there aren’t that many for civilians. “The people who come with us are not just military history buffs or people who have a relative involved.”

Thirty-seven-year-old Mat didn’t grow up in a military family though he did have a grandfather he never met who was involved in World War II. He says it’s a fairly typical story – growing up in a country town in New South Wales, going to the dawn services ignited his interest in military history, particularly Australian involvement.

“That I’m a young person is important to the fact that a lot of these celebrations and memorials are being kept alive by young people. In places like America they are having a tough time keeping remembrance alive as the original soldiers are dead or passing away. Here it just seems to be getting bigger.”

Battlefield Tours offer trips to significant World War II locations in Europe as well as Vietnam, Waterloo and even former rocket launch sites in France. They’re also branching out to explore military history in other interesting locations like the Philippines and Guadalcanal in the Solomon Islands.
For more information, go to www.battlefields.com.au.

IN Community

Our local used to always be the pub, but a new cafe in Scarborough is creating a strong sense of community amongst residents, many of whom are only streets away.

There’s just something about a local cafe in a suburban area. There’s something satisfying in the fact that whoever is making your coffee remembers your order and might even remember your name. You also know these people have got something extra invested in the area when you see them at the local fish and chip shop with their own family on a Friday night.

Scarborough’s Kinky Lizard Espresso Bar is one of those places. Friendly and relaxed it has quickly become a local meeting and hang-out spot for the locals, whether it’s families for weekend breakfasts, coffee-gathering mums, business meetings or lunches on the go.

Local resident Phil Hayes starts the day with a beach run and a dip in the ocean and stops at Kinky Lizard in his boardies on the way home for a daily shot of coffee. The associate director, sales agent and auction expert is also the latest addition to Realmark’s Scarborough office.

“I moved to the area before I started working for Realmark but because I live here I can explain to people what’s so special about the lifestyle and what’s on offer,” Phil says. “This area has changed in a positive way and a lot of places, like Kinky Lizard have opened, which really adds to the relaxed atmosphere of the place and that sense of community.”

Cafe manager Mia Strauss agrees. An overseas transplant via the east coast, Mia says the locals have welcomed Kinky Lizard (officially Kinky Swell, so as not to be confused with its East Perth cousin), with open arms since its opening.

“People like to go for coffee here and they’ve told us how much they like a local place to do it,” says Mia. “We notice people have made friends here after becoming regulars and one couple even met here. We have our own coffee blend too which you can’t get anywhere else; it’s often a talking point. We’re also BYO and don’t charge corkage.”

Mia and her husband Dan Snowden, who is the Kinky Lizard’s chef, have run eateries together for the last seven years and also live in Scarborough. From watching the floor tiles going down in the new building, the pair work tirelessly to ensure the welcoming feel of the cafe and that the menu offers locals reasons to keep coming back.

Kinky Swell is open seven days a week from 7am – 4pm (breakfast and lunch until 2.30pm and coffee until 4pm) at 166 Brighton Road, Scarborough. Realmark Scarborough is open weekdays from 8.30am – 5pm at 3/257, West Coast Highway, Scarborough.

what about the rental market?

Much of the recent yarns around real estate have been focussed on whether property sales are up or down…but what about the rental market? It is worthwhile reflecting on this area of the market more specifically and what it means for landlords and tenants.

With the number of people attending rental viewings reaching in some cases the high 20’s and with unprecedented amounts of rental enquiries there is no doubt that it is a landlord’s market.

This acute demand for rental properties stretches across the board for homes of all price ranges; however the demand is particularly high for apartments and middle range homes. The influx of people requiring rental properties is partly fuelled by arrivals from over East and overseas, by affordability issues and difficulty in financing. There is also a growing demand for single occupancy accommodation.

According to REIWA, the plummeting rental vacancy rate from 3.4 per cent in the June quarter to 2.8 per cent in the September quarter is an indication that more individuals are choosing to rent than own, resulting in stronger rental returns for landlords.

On the other hand, the strong demand for rentals will progressively cause rent prices to rise. Combine this with falling interest rates and we will start to see the number of first home buyers increase. In short it’s a simple case of supply and demand and affordability is the key factor responsible for swinging the market which ever way.

But what should a property manager be doing in such a market context for you as a landlord you ask? They certainly should be providing you with letting solutions that maximise the return for your investment. Just as a sales agent should utilise solutions to ensure that your property isn’t under sold…they should be using methodology that ensures that you don’t under rent your investment.

You may have heard of Realmark’s sales method – Set Date Sale, whereby all offers are presented by a certain date with no set asking price advertised. We employ as one of our To Let options, a similar approach for listing rental properties – Set Date Rental; which ensures that the most competitive rental offers are presented which is vital in the current market.

However, price is not the only important consideration for landlords, property managers should also be employing a thorough and structured system to ensure that not only a good return is realised but screened and referenced quality tenants are secured as well.

An informed property manager can also alleviate the headaches of the legislative requirements, market your investment utilising multi-medium marketing strategies to attract the largest applicant pool as well as save your precious time ensuring your property is well looked after.

As for tenants, they need to be informed if they want to be competitive. For instance, every applicant should now have their own ‘tenant CV’ and be willing to sell themselves. This hasn’t always been necessary in previous years but is important in today’s market if you want to even be considered.

Needless to say, whether you are a landlord or a tenant you should remain educated about the ‘ins’ and ‘outs’ of renting, which can sometimes be a complex web of legislation and things you should know. To assist in sharing such knowledge, Realmark have launched an advisory website for tenants and landlords which can be accessed by visiting rentalpropertiesperth.net.au. There, people can find advice like how to create a memorable first impression for your rental property in order to achieve a premium rent price and equally as important, how to attract the right kind of tenant.