Gorgon great news, but don’t hold your breath for a boom

Unless you have been living under a rock, you would have been reading and hearing a lot about the Gorgon project in WA’s north, and probably a few headlines around how it is tipped to push WA back into boom. There’s no doubt the Gorgon project is certainly a positive. It will definitely produce much needed employment and inject some strength back into our economy, but is it going to save the day?

As important as this project is to our economy, it is not the answer to all of our woes. It isn’t going to see us return overnight to the prosperous boom times, where WA in particular, reaped the benefits from the booming minerals sector. It is naïve to think the Gorgon project alone will have the same affect and return us to the same position we were in two years ago, there are so many fundamentals that come to play in a recovery.

The thing about the recent boom is it has given many people in WA unrealistic expectations and this longing for good times gone by. The boom was not real life and if you spend your days wishing it back you’re wasting time and energy in the wrong place. If you understand the situation you can react to it, if you’re living on false hopes you’re not doing anyone any good.

Ever since the economic fallout people have been grasping at facts and figures that may signal that everything will be A-OK, it is human nature. And the Gorgon story is just another example of this.

In saying all of this, it is worth noting how compared to other countries around the world, ours has experienced much less damage from the global financial crisis. WA in particular has been quite sheltered from the fall out experienced in countries like the USA and Japan.

So yes, Gorgon and the recovery of the minerals sector is positive news for us but keep it all in perspective and keep focused on the bigger picture.

Craft is the key to smooth sailing

The world as we knew it is no longer. We’ve never been here before. Forecasters can’t predict with certainly the way anything is going to happen or act. We are on a new island – and the ocean around us has receded many miles.

Because it’s new ground, there are so many givens which no longer apply. It’s also your chance – and my chance – to do things differently; to stand out.

I went to an industry gabfest last week which brought together not just real estate companies but professionals which interact with the real estate industry. A Melbourne visitor with a respected marketing company reminded us that in times of a downturn, we can’t totally retract spending. Instead we need to use what we can afford in a more powerful way, have meaningful interaction and offer clients a clear point of difference.

It’s no good promising the world anymore. People have become too cynical for that. I know bottled water is still water, even if it’s packaged in different kinds of bottles. But add fruit to one and I’ll start thinking about it. That’s the point of difference.

People are seeking an honest and resonating assessment of their needs, an achievable way through to them and straight talk. That makes people naturally more receptive and it will win you clients for the long term, not just one exchange. Anyone selling something wants a serious client. In return, clients want honest interaction.

We can achieve that on a personal level too. You might not have tons of money to throw about, but you can make time to give of the unique things in yourself. Be daring and see what wonderful results it yields.

While the economy may be bobbing about like a buoy on a rough sea, there is one thing you can definitely do: know your craft. Whatever it is you do, know who you are, what your business is and how you do it best. If you can explain why you are doing something clearly, then you are more likely to be heard and more likely to be listened to.

You must have a really solid keel on your boat to win the race. Too much sail and not enough keel won’t get you over the finishing line in good shape. Translated: too much salesmanship without method or craft will simply dash you on a reef with little hope of rescue.

Clients are very receptive in this market and are looking for new and fresh ways to get what they want. Put yourself in prime position to leverage that interest into something concrete. Construct a solid keel and confidently sail towards the finish line first.

Breath easy, the grant stays

So finally we have our answer, the first home buyers grant will remain for three months at the full rate and three months at a reduced rate.

*Insert collective sighs of relief from the entire real estate industry here.*

This is a good move by the Government and one that has seen the industry dodge a very large bullet. If the grant was ceased on June 30 first home buyer activity would have come to a screaming halt and the market place repercussions would have been quite dramatic.

Through phasing out the grant the Government has paved the way for a more orderly market adjustment. The economy is expected to stabilise over the next 6 months and interest rates are expected to stay low. Together these two factors provide an opportunity to offset any shock when the grants do finally stop. The move to keep the grant for both existing and new properties is also positive and avoids any distortion.

So what now? Well historically Government intervention coupled with low interest rates is the pre-curser to the upside of the property cycle. This doesn’t mean everything is roses, what is does mean I think is that the market is likely to continue ticking along as it is until well into 2010 – it is a time to have a positive, but balanced view of the market place.

What was missed in the budget is any sweeteners for investors and second and third tier buyers. Investors are a big piece of the puzzle that is missing right now and through creating strategies that would entice them back into market the Government could have created a far more balanced market place, rather than just relying on the first home buyers to keep us a float. Australia is also in the midst of an ever growing housing stock crisis which cannot be addressed by the first home buyers grant alone. I have pointed out the need to broaden the stimulus here before, so I won’t cover too much old territory there.

All in all budget night was a positive night for the industry. The ‘what ifs?’ around the first home buyers grant are now answered and it is business as usual.

Be happy, be innovative

The boom has left us hanging onto mediocrity. We’ve become comfortable because it’s been easy. We’ve been letting other people take the gamble and the chance. Now the GED has rudely shocked us and rocked us out of that rake-it-in coma.

People are preoccupied with the darkness and gloom but you’ll always find someone living with less light and hope. While Australia is the 18^th wealthiest economy in the world according to one website, apparently we are also the 6^th happiest country in the world.

If you’re not feeling like you’re part of the Top 10 happy places in the world, perhaps it’s because you’ve been paying too much attention to miserable advertising. Notice how quickly television and other forms of advertising have jumped on the bad times band wagon? They’ve taken up the language of a bleak economic climate and adjusted their global economic crisis vocabulary so quickly it’s hard to believe the Ikea-loving Swedes and Canadians are behind us on the happiness ladder.

The days of the spin merchant are gone however and we can’t afford to be seduced anymore. We have neither the time nor money. You just can’t “trust” blindly anymore. Find people who you know are good at what they do or come recommended by those you trust. Work with people who actually have the solutions to your problems, not just people who say they do.

Most of us are pretty clever about what we’re being told, but now more than ever it’s important to see the real message being communicated and not be manipulated by the spin.

The up-side of this down-turn is now we have the perfect chance to make a difference. To be different. To think differently. To strive to be better. To do things which have never been done before.

Whether you’re going to seriously commit to household recycling, buy a home or get involved in a business venture, it’s time for innovation and the climate is ripe for it.

In our recent In Property magazine, Perth horticulturalist Josh Byrne shared with us how planting a verge garden got him out of the back of his house and greeting his neighbourhood. By creating a nice place to be at the front of his house, he’s met the people in his street and made friends with his neighbours.

It’s a grass-roots gesture, but we need them to lift our spirits. Feeling good about yourself and the world around us is what convinces someone somewhere with a great idea to pursue it. They say it takes a village to raise a child. It’s a valuable mantra to have at the moment.

Let’s cultivate the art of being better, of giving great service and “doing good”. Unprecedented times call for unusual measures.

Downturn? What Downturn?

It can be hard to ignore the endless headlines of doom and gloom, but I refuse to participate. Realmark is not participating in the recession.

I am not denying that things have certainly changed, but this is nothing new, this is what happens in this industry and I have seen it many a time before. Panic is not going to see you these times, being prepared and having a clear head will.

If you manage to look past all the bad news you will see a range of rare opportunities that don’t come about very often. The words recession and opportunity might not seem to fit together, but the way I see it, recession is a time full of opportunity for my business.

So exactly what opportunities am I talking about? Firstly the demand for agents has decreased significantly so recruiting quality people is much easier. Realmark has just employed seven new team members, something that was almost impossible during the boom. We are using the downturn to build our ‘dream team’. We launched an online careers website and to help us attract the right people and we have hired a full time human resources manager to help us retain the right people.

Now is also a time to stand out from your competitors. It was easy to be successful during the boom, being successful now takes skill because business doesn’t simply walk in the door. People will notice if you’re thriving now and it will build a premium and trust into your brand that is almost impossible to achieve during the good times.

Then there is the fact that now is a good time for growth into new markets, some competitors are going to scale back and opportunities will open up and we stand ready to take advantage of them.

So you can dwell on the bad news, but really what is that going to achieve? Open your eyes and look for the good news.