Tuesday, 5 August 2014

How has the mining industry affected Australia’s Real Estate Industry?

Looking at the Australian property market we could classify it into 2 eras; before and after the Second World War.

Up until the beginning of WW2, Australia’s economic growth was heavily dependent on agriculture however experienced great financial hardship during the Great Depression between 1920 and 1930. Many agriculture businesses started to struggle when investment from overseas fell behind economic problems offshore. 

The Australian property market was heavily dependent on foreign investment in the early 20th century. This became troublesome for the economy because there was a significant difference in the expected profit and the actual profit with respect to the investment. The overall situation got worse when the war started as the government needed to invest most of its capital to the war effort, rather than using money to correct national financial problems.

After the end of Second World War in 1945 the entire phase of the economy started to change. Developing new markets for consumer products, high employment rate, increasing foreign investment and growth of mining industry soon made Australia one of the most developed countries in the world. Given the need for more skilled workers, Australia’s immigration policy was quite liberal during this period and the number of immigrants coming in has increased ever since.

Today, things are once again starting to pick up after a period of rather sluggish economic activity. State governments are financing education and getting behind the trades sector in an effort to encourage the training of skilled workers, which means that there is a great demand for human resources. In the housing sector for example, there is a great shortage of plumbers, electricians, and builders.

The real estate sector also has a bright future because of Australia mining industry. It is estimated that 20% of economic growth in recent times has come from the mining industry. So more and more people are spreading to mining industry and this is creating more job. Hence the demand of establishing residential home is also increasing. The Western Australian government is sponsoring foreign immigrants to settle in Perth and surrounding regions to help cater for this.

Further, the price of real estate has almost doubled in Western Australia because of this mining boom. It can be easily said that real estate business will become one of the major players in the economic growth in some places of Australia. So the need of skilled real estate agents will also rise in those regions. It is a good time for young people who want to build their career in real estate industry to train themselves. Many educational institute like rete offers real estate agents courses. Today’s competitive world the value of education in any sector is priceless and we all know that.

Image Source: watoday.com.au,propertyupdate.com.au

Friday, 27 June 2014

Red Hot Real Estate Industry is Good News for Your Career

In terms of GDP growth, Australia has one of the largest economies in the world. According to a report by the World Bank, Australia’s net GDP was 1.5 Trillion Us dollar in 2013. In actual fact, the per-capita GDP is higher than a number of economic powerhouses including Germany, the UK and France. An IMF report from 2011 indicated that Australia ranks fifth in per-capita income.

Rising Real Estate
Because of low unemployment rates, high labour costs, low interest rates and strong social security, Australian people have the wealth and flexibility from their banks to buy property relatively easily. A report recently published by the Real Estate Institute of Australia (REIA) suggests that housing affordability has improved slightly in 2014.The proportion of income required to meet loan repayments has decreased 0.2 percentage points to 30.6% over the quarter according to that report. This scenario is true for New South Wales, Australian Capital Territory and Northern Territory as well.

Buying Home
The President of the REIA Mr Peter Bushboy said that "The ACT remained the most affordable state or territory in which to buy a home with the proportion of income required to meet loan repayments sitting at 19.8% while New South Wales remained the least affordable state or territory in which to buy a home with the proportion of income required to meet loan repayments 4.0 percentage points above the national average”. However he mentioned that compared to a year ago, housing affordability is continually improving in all states and territories. In conclusion he said that "With budget forecasts of moderate growth and inflation well within the RBA’s target zone, interest rates should remain low for some time and that is good news for home owners and prospective buyers".

Australia is a famous destination for skilled workers all over the world. So there is no doubt that real estate business will continue to grow as the economy improves. This is encouraging news for young people who want to build a career in the real estate business. The value of education for real estate will play a major role in helping people get jobs in the field.

Real Estate AgentMany reputed educational institutes provide courses and its good do some research before jumping in. A career in real estate can be very rewarding and lucrative, but like with all things it can take a bit of hard work to get there! Real estate agent courses help to prepare you for your professional career and simulate real like situations you’re likely to face with clients, managers, etc.

Speak to the team at REET for more information and get yourself trained now!

Image Source: tradeandexportme.com, bangbug.org, keywestvideo.com

Monday, 3 March 2014

How the Boom in Real Estate Is Blooming Careers For Young Agents

The unprecedented recent growth in the housing market has not only been fuelling increases in house prices, but also an increase of opportunities for young real estate agents around the country. With the right qualifications and access to one of the country’s leading real estate agencies, many young agents are leading the way when it comes to property management. This career option that is growing in respectability has taken many young agents to national recognition, so how has this boom come about and how can you get to be a part of it, too?

The average house price increase that we have seen of late is driving this boom in the numbers of real estate agents in signing up to get their accreditations. In the capital alone, house prices saw a 9.3% increase in the average price tag last year which compared to the 2012 figure of 2.1% you can see how quickly this boom is travelling.

Help funding your real estate training course

Thanks to the boom in the housing industry, the government in many states have offers help with funding real estate training courses for those who wish to follow this booming career choice. These funds were a great success and have been helping young students pass their accreditations year on year. The sector has significantly improved over the past year to bring with it countless opportunities for young people to start their career.

Real estate agents courses are available across all states to bring you accreditation for the career path you wish to follow. These courses are varied and allow students to start a career in the many different aspects that real estate has to offer. If exceptional customer service, an eye for detail, and a head for business is what defines your working life then this is definitely the job for you.

There will be intense competition within this sector, so being able to understand the market, make shrewd decisions as well as being able to sell a property, then you may well be faced with the career of your dreams. With a booming house market and a boom in the number of jobs available in this sector, you are sure to find the ideal position in the various roles available to you.

An eye for detail, a head for business

There are many different roles in the real estate industry, including estate agent, salesperson as well as property manager and auctioneer. These differing roles require different abilities, but also require the overall sense of customer service and a head for business. There are also opportunities in the industry for corporate stock purchasers, valuation expert as well as support staff roles you may take before embarking on your real estate training course.

If the property industry is for you, then why not take advantage of one of the great real estate training courses available to you. In no time at all you can be learning the tricks of the trade and be in your real estate role in no time at all. With so many different positions available for you to choose from within the industry, take your time and pick the best role that suits you and you could be enjoying working the way you love.

Wednesday, 5 February 2014

Learn the Requirements of How to Start In Real Estate in Your Area

Whilst business is currently booming in the real estate sector, now would be the ideal time to learn how to get ahead of the curve when it comes to starting your own real estate business. If you think you have what it takes to buy and sell properties, then with a few simple steps you can soon acquire your license in no time at all.

 With hard work and preparation you can succeed to create your own profitable business, so knowing the initial requirements to get yourself fully licenced is where you need to start. You will first need to find a real estate license course to gain the Certificate IV in Property Services which is the qualification as prescribed by the BLA (Business Learning Academy) a division of Consumer Affairs in the state of Victoria and is needed as the educational qualifier to apply for a real estate license in the state of Victoria.

In addition to this qualification requirement, the Business Learning Academy also requires you to provide evidence of 12 months’ experience in working with an officially registered agents’ representative. This work experience is not only necessary to achieve the qualification you desire, but will also help give you priceless knowledge of the job inside and out when working as a representative.

A real estate license course compromises of up to 24 units of learning in total and encompasses a huge range of topics from business practises to ethics and customer relationships. The first week will comprise of the Agents Representative Course. This initial course will be available to complete either prior to or even at the very beginning of the licensing course.

The majority of licensing courses that are available offer you a chance to learn at a comfortable pace for you, including time frames and course study dates. With each unit scheduled to be taken place every six to eight weeks, you can in fact choose how long you want to take the licensing course, up to a maximum of 12 months. This is of great benefit to those who are elsewhere employed.

The fees and prices associated with taking the real estate agents licensing course may depend on which state and which education institution you choose. Whilst prices may vary state to state, in general the average fee is $6 - $8k. Help with fees may be available, due to real estate being one of the sectors in which the government is looking to invest in.

When wondering how to start in real estate you should also consider becoming a member of a real estate association will further help your business start-up and may improve your prospects for growth. As client relationships and face time with customer’s plays a huge role in your business, potential partners are always a welcome addition.

Once you have completed your training and have acquired the necessary licensing to start your own real estate agency, put that effort back into the business and prepare for the hard work to start. Many small real estate business owners see rapid growth in this current climate of high property turnover, so invest back into your business and you will be on your way to further success.

Thursday, 14 November 2013

Five Ways to Get the Property Sold

1. Don’t buy the listing!

Saleable listings are almost always created at the listing appointment. Weak agents tend to have "I’ll take the listing" at any cost type of mentality. But think about the stupidity of that attitude. If you take a listing that is overpriced or the condition is horrible, or if the seller won’t allow you to market the property properly what will the end result be? A frustrated seller, an empty bank account, and a huge amount of wasted time!

Instead decide now that you will choose to only take listings that you feel have a reasonable chance of selling. This may include setting your own internal standards. Example: Perhaps you will only accept listings that are within 5-10% of your recommended price range.

To set the stage for success you have to come prepared to listing appointments. Meaning you have to have done your homework.

One of the key ingredients to taking a saleable listing is setting the right asking price.

Start from your gut instincts and work backward. You and I both know that as soon as we walk into almost any home, we instantly have a gut reaction as to what the home will sell for, I would call this your "gut" price. It may be wrong, but my guess is usually it’s pretty accurate. Most agents have this reaction and then immediately begin fighting it, in other words they look for ways to build up the price. Why? So they can buy the sellers love! Don’t do it! Trust your gut!

2. Set the Stage for Price Reductions

A terrific technique to use when taking a listing is to explain to the seller that as a normal part of your sales process, your team mails out a price reduction letter every thirty days to homes that have not yet sold. This will provide the seller with an ongoing push to reduce their price, and provide you with a talking point during your regular phone follow up calls:

An example of how this works follows;

Sally: Listen, I want to really thank you for this listing I’m very excited to begin marketing the property. I want to take just a couple of minutes and talk about the follow up process. Would that be OK.

Seller: Sure.

Sally: One of the things that my team does is to mail out an auto-price reduction letter every thirty days. I don’t want you to be offended by this, we do it with every seller. You can do one of a few things with it - Of course you can throw it away, or you can save it just in case you might want to use it in the future, or you can just fill in the price adjustment and mail it back... If you do adjust your price let me tell you what will happen then....

By using this simple technique you will keep your seller focused on an area that they control, price! This can open up the discussion to a price adjustment, and create an opportunity to sell the listing.

3. Talk about Inspections

One key to building a saleable listing is to talk about showings. Sellers often associate showings directly with your performance or lack there of. They tend to think - If my house is not being shown it must mean that my agent isn’t advertising enough, so bingo they call you and complain. Most agents will then run off to spend even more money on a listing that will never sell.

Instead why not explain the truth to the seller. What is the truth? Here it is:

If the home is not being shown it’s almost always because the market is rejecting the price. If on the other hand the home is being shown but you are not receiving any offers it’s almost always because there is something wrong with the condition of the house. If you explain these facts at the listing presentation you will set yourself up to talk intelligently about getting the home sold, instead of just placating the seller with more advertising that will never work.

Sally: A couple of things we need to be really conscious of, first, if we don’t get any inspections or very few inspections - what this means is that the market is rejecting the price, and no amount of marketing will fix it. At that point I may need to ask you to adjust the price. The reverse would be if we get a lot of inspections but no offers, that would indicate that the buyers are rejecting something specifically about the house. My job would be to find out what it is and see if there is something we can do to fix it.


4. Be Brutally Honest During the Listing Presentation

Most agents think that telling sellers what they want to hear is a smart way to get listings. In reality it is almost always a straight line to the bottom of the profitability barrel. When you lie to sellers, you are lying to yourself. You end up congratulating yourself for taking a listing, which has absolutely no chance of selling. What a huge waste of time and energy! Instead we should tell sellers what we honestly think. This fresh approach may seem radical, but I guarantee you sellers will love you for it.

The classic example of this is in regards to the condition of a home. Most sellers will ask an agent what they think should be done to prepare the home for marketing, unfortunately most agents will respond with some kind of lame answer like "Oh, nothing, it looks terrific!". Really, what about the holes in the rug? The water spots on the ceiling? Or the dogs "accident" on the front steps? Terrific?

Instead try this technique:
Sally: Listen, we can go two ways here. I can tell you what you want to hear, or I can tell you the truth - Which would you prefer?

Client: The Truth

Sally: Are you sure?
If you were the seller what would your answer be? Probably the same as mine! "Tell me the truth."

5. Give Them Something to Do

Think about your seller for a minute. They’ve been thinking about selling for the last six months. Finally they work up the nerve to invite an agent over to the house. They listen carefully to the presentation, all the while getting more and more excited about the prospect of moving. At the end of the presentation they agree to list the house. Now they are on cloud nine, and they just can’t wait for that first inspection.

The downside, of course, is that all they can do is wait, and wait, and wait, and watch. They watch your every move, your flyers, your advertising, your website, and your follow up letters. Inevitably they find mistakes, which in their mind is exactly why the home is not selling. They become frustrated, irritated, and hard to deal with - eventually they fire the agent and hire another.

Is this typical? I would say this exact scenario happens tens of thousands of times a year through out the country. Instead of just letting your sellers sit and do nothing why not give them a list of things to do. For instance - How about a Pre-Inspection Checklist, a Pre-Marketing Checklist, or an After Inspection Checklist. This simple list of things to do can provide a seller with an outlet for all of that nervous energy.