As 2025 begins, many of us are looking for fresh inspiration, clarity, and practical advice to make the most of the year ahead. Whether you’re already an avid reader or just starting out, choosing the right book can set the tone for a fantastic year. Here are three books I highly recommend to spark ideas, motivate you, and maybe even shift your perspective: The Great Divide by Alan Kohler, Big Money Energy by Ryan Serhant, and Same as Ever by Morgan Housel. Each offers valuable insights for tackling personal and professional challenges in today’s fast-changing world.

  1. The Great Divide by Alan Kohler

Alan Kohler, one of Australia’s most respected financial journalists, takes a deep dive into the growing gap between the wealthy and everyone else. In clear, straightforward language, he unpacks the economic, political, and social factors driving inequality and its impact on communities worldwide.

  • Understanding Inequality: Kohler examines the historical roots of income disparity, helping us understand how we got here.
  • The Future of Work: As technology reshapes industries, Kohler highlights what this means for jobs, wages, and the workforce.
  • Solutions That Matter: Beyond pointing out problems, he shares practical ideas on how individuals, businesses, and governments can address inequality through education, innovation, and better policies.

This book is for anyone curious about how economic trends are shaping our world. Whether you’re a small business owner, policymaker, or an engaged citizen, Kohler’s insights will give you a fresh perspective on inequality and what we can do about it.

  1. Big Money Energy by Ryan Serhant

Ryan Serhant—real estate mogul and star of Million Dollar Listing—shares his secrets for building the mindset and confidence needed to succeed big in life. While it’s packed with career advice, it’s not just about making money; it’s about showing up with energy and belief in yourself every day.

  • Confidence is Key: Serhant explains how confidence and a positive attitude can create opportunities and strengthen relationships.
  • Stand Out: Learn how to build a personal brand that makes people remember you.
  • Step Outside Your Comfort Zone: Serhant’s stories of risk-taking and reinvention show that the biggest wins often come from bold moves.

This is perfect for anyone looking for a motivational push, whether in business or life. If you’re in sales, real estate, or just want to aim higher, Serhant’s advice will help you think big and go for it.

  1. Same as Ever by Morgan Housel

Morgan Housel, author of the bestselling The Psychology of Money, is back with a new book full of timeless lessons about human behaviour. He reminds us that while the world around us constantly changes, many of the patterns that drive our decisions and actions remain the same.

  • Lessons That Last: By exploring history, psychology, and economics, Housel highlights universal principles we can rely on, no matter what’s happening in the world.
  • Simplifying Complexity: Housel has a knack for making big ideas easy to understand, cutting through the noise to focus on what really matters.
  • The Power of Patience: In a culture obsessed with quick wins and disruption, Housel argues for the value of consistency and long-term thinking.

If you want to better understand human behaviour and make smarter decisions, this book is for you. It’s especially great for investors, leaders, or anyone navigating uncertain times.

Why These Books?

Each of these books has something unique to offer:

  • Perspective: The Great Divide explains the forces shaping our society and economy, with a few great takeaways on housing that politicians should keep in mind (especially during an election year).
  • Motivation: Big Money Energy will fire you up to go after your goals with confidence and energy.
  • Wisdom: Same as Ever helps you see the bigger picture and make smarter decisions, no matter what comes your way.

Final Thoughts

Starting 2025 with the right tools and mindset can make all the difference. The Great Divide, Big Money Energy, and Same as Ever aren’t just books—they’re guides to understanding the world, chasing your goals, and making better choices. Give them a read and see how they can shape your year ahead!

 

Western Australia, like the rest of the country, is feeling the strain of outdated and inefficient taxes. Two of the biggest culprits are stamp duty and payroll tax, which I’ve seen first-hand as both a long-time real estate professional and a business owner. These taxes don’t just burden businesses and individuals—they also hold back economic growth. As we look to the future, it’s worth considering whether these taxes should be scrapped in favour of something that works better for everyone.

I’m no expert in tax reform, but after almost 18 years running a business, here’s my take on why these taxes need a rethink.

What’s Wrong with Stamp Duty?

Stamp duty is a tax you pay when buying property. It’s based on the value of the transaction, and it’s a big money-maker for the government in Western Australia. But here’s why it’s causing more harm than good:

One of the biggest issues with stamp duty is that it makes people think twice about moving. Whether you’re downsizing, upgrading, or relocating for work, the cost of stamp duty can be a huge financial hit. As a result, people stay put, even if their current home doesn’t suit their needs. This creates inefficiencies in the housing market, with fewer homes becoming available for those who really need them.

The housing market in WA has become tougher in recent years. Stamp duty makes it even harder, especially for first-time buyers, by adding thousands of dollars to the cost of purchasing a home. This only pushes up housing prices and worsens affordability, particularly for those on low or middle incomes.

Stamp duty revenue depends on how many property sales happen. In good years, when lots of homes are selling, the government collects plenty. But during downturns, like the global financial crisis back in 2008, the number of sales drops, and the government’s revenue takes a hit. It’s not a reliable source of income.

The Problem with Payroll Tax

Payroll tax is another major tax in WA. It’s a tax businesses pay based on their total wages paid. But there are several reasons why it’s not ideal:

Payroll tax is like a penalty for hiring more people. The more staff you employ or the higher the wages you pay, the bigger your tax bill. This can discourage businesses from hiring new staff or paying competitive salaries, which hurts job creation.

WA businesses are competing in a global market. Payroll tax increases their operating costs, which means they have less money to invest in things like growing the business, improving their services, or training staff. It puts them at a disadvantage compared to companies in other places with lower taxes.

Beyond just paying the tax, businesses also have to navigate the administrative side—tracking wages, staying on top of the rules, and ensuring they’re complying with all the regulations. It adds extra work that takes time and resources away from running the actual business.

What’s the Alternative?

Abolishing stamp duty and payroll tax would remove two big roadblocks to economic growth and housing affordability. But since they’re major sources of government revenue, we’d need to replace them with something fairer and more effective. Here are a few ideas:

  1. Land Tax: One option is to replace stamp duty with a land tax. Instead of a one-off hit when you buy a property, you’d pay a smaller, ongoing tax based on the land you own. This could provide the government with a steadier, more reliable income, and encourage property owners to make better use of their land.
  2. Expanding GST: Another option is to increase the Goods and Services Tax (GST) or extend it to cover more goods and services. This would spread the tax burden across the economy and avoid the issues caused by stamp duty and payroll tax. Countries with higher GST rates, like many in Europe, have shown that this can work without overburdening people.
  3. Income Tax Adjustments: The state government could also consider working with the federal government to adjust income taxes. This would mean shifting the tax focus away from payroll and onto a system that’s more reflective of people’s ability to pay. While not everyone would be happy with this, it could offer a fairer way to distribute the tax load.
  4. Mining Royalties: WA is rich in natural resources, and the state could explore further mining royalties or revisiting the  current agreements in place. While this idea has its pros and cons, a proper review of mining taxes could provide a more stable source of revenue and reduce the reliance on inefficient taxes like payroll tax.

Getting rid of stamp duty and payroll tax would give WA’s tax system a much-needed update. By shifting to alternatives like a land tax, adjusting GST, or exploring other revenue streams, the state could stimulate economic growth, make housing more affordable, and create a more business-friendly environment. It’s time to rethink how we fund our state and find a better way forward that benefits everyone.

 

In today’s fast-changing real estate market, strong leadership is key to getting things right. Buying or selling a home isn’t just about paperwork and price tags—it takes smart decisions, a good read on people, and knowing where the market is headed, all of which come from solid leadership. Even though tech has changed a lot of industries, the personal touch that real estate agents offer is still something you can’t replace. Agents bring guidance, expertise, and top-notch negotiating skills, helping clients confidently navigate the ups and downs of the housing market. That’s why leadership in real estate is so important and why agents will always have a vital role to play.

In real estate, agents aren’t just middlemen between buyers and sellers—they’re leaders. They guide their clients through one of the biggest financial decisions they’ll ever make. This job takes more than just knowing the ins and outs of the market; it calls for empathy, good communication, and the ability to stay ahead of market changes.

The real estate market can be unpredictable. Things like economic shifts, new policies, and changing buyer habits can quickly flip a seller’s market into a buyer’s market. A sharp real estate agent stays informed, anticipates these changes, and adjusts their strategy to stay ahead. Agents with a forward-thinking approach look beyond what’s happening right now and help their clients plan for long-term growth or protection.

For example, a real estate agent who knows about future infrastructure projects or zoning changes in an area can help clients make a smart investment, even if the current market doesn’t look great. This kind of foresight gives clients an edge—something you just can’t get from algorithms or property search websites.

In real estate, knowledge is everything. A good agent makes sure their clients have a clear understanding of the market, property details, legalities, and pricing strategies. But it’s not just about handing over info—it’s about breaking it down in a way that matches the client’s goals. That’s what being a leader in real estate—or any field—is all about.

Take property valuations, for example. An online tool might give a rough estimate, but an agent can provide a detailed market analysis that considers things like unique property features, renovations, zoning, neighbourhood trends, and buyer behaviour. This helps clients make smarter decisions and avoid expensive mistakes that could come from relying on incomplete or misinterpreted data.

Buying or selling a home is often an emotional experience. People might be attached to their homes or stressed about finding the right place for their family. Being a good real estate agent means managing those emotions, offering reassurance, and keeping the focus on the client’s long-term goals.

Real estate agents are like emotional anchors for their clients. They deal with the stress of negotiations, bidding wars, or surprises like a failed inspection. By staying calm and collected, agents help clients navigate the emotional ups and downs, making sure decisions are based on logic, not impulse—especially in today’s unpredictable market

Even though technology has made it easier to do things like browse listings, take virtual tours, and sign contracts online, it still can’t replace the knowledge and experience that a real estate agent brings. Here’s why agents are still a key part of the process.

Negotiation is a real art in real estate, and this is where a skilled, experienced agent really stands out. Whether it’s getting a better price, negotiating repairs, or locking in favourable contract terms, agents have the know-how and instincts to secure the best deal for their clients.

Technology can offer price comparison tools or data analysis, but it can’t replace the instinct and human touch needed in negotiations. An experienced agent knows when to push for a better deal and when to accept the terms, making sure both sides walk away happy. Their skill in handling the human side of negotiations is something no app or algorithm can replicate.

Real estate deals come with a lot of legal complexities. A real estate agent’s job is to look out for their clients’ best interests and really understand all the paperwork involved. Whether you’re selling a strata, commercial, or residential property, having a solid grasp of the details is crucial for writing contracts.

While some might say that automated platforms can handle contract generation, they can’t spot potential legal problems or issues that might become a big deal down the line.

Real estate is all about the local scene. An agent who knows the ins and outs of schools, amenities, safety, and market trends can share insights that a big national or global real estate platform just can’t provide. A good agent understands the vibe of the local market and stays in the loop about upcoming changes that could impact property values, like new developments, zoning shifts, or local economic changes. This kind of detailed knowledge is invaluable, and no amount of data from a property website can match the insights that come from being part of the community.

One of the biggest perks of working with a real estate agent is the personalized service they provide. Agents customize their approach to fit the specific needs, wants, and financial situations of their clients. They really act as advocates, making sure the client’s interests come first.

A great agent will go the extra mile—whether that means tracking down properties that aren’t even listed yet or negotiating deals that other buyers or sellers might overlook. This kind of support and personal attention is what makes real estate agents stand out.

Leadership is at the heart of the real estate industry, with agents serving as guides, negotiators, and emotional support for their clients. Even with all the tech and automation out there, real estate agents are still crucial in our communities. Their expertise, local knowledge, and skills in handling tricky negotiations and legal matters help clients make smart investments and reach their goals. Being a leader in real estate isn’t just about selling homes—it’s about helping people through one of the biggest financial journeys of their lives. And for that, you’ll always need a real estate agent.

Real estate is often seen as a great career choice—flexible hours, good earning potential, and plenty of success stories. In fact, one of the most searched career questions on Google is “how to become a real estate agent.” But like any industry, it comes with its fair share of challenges. Building a long-lasting career in real estate takes more than just being able to talk the talk. You’ll need to be adaptable, keep learning, and have a fair bit of grit to succeed.

One of the biggest hurdles in real estate is how unpredictable it can be. The market is always shifting, influenced by things like the economy, interest rates, legislation, and even global events like pandemics. That means you’ll have good years and tough ones, and it can really take a toll, both mentally and financially.

For instance, when the economy is strong, people are more likely to buy and sell, which means more deals and better income. But when times are tough, everything slows down, and you might find yourself doing fewer deals. That’s why it’s important to have a financial plan for those leaner periods. Many agents burn out when they don’t manage this side of the business properly, so having a bit of financial discipline is essential.

There’s no sugar-coating it—real estate is a competitive industry. There are plenty of agents competing for the same listings and clients. If you’re new to the game, it can be hard to stand out, especially when more experienced agents already have established networks. The reality is, around 80% of new agents drop out within the first 12 to 18 months because they aren’t ready for the hard yards it takes to get started.

Managing clients can also be stressful. Buyers and sellers are often dealing with large sums of money, so it’s no surprise they can be emotional. As an agent, you’ll need exceptional people skills, a lot of patience, and the ability to keep everything moving along smoothly—even when clients are indecisive, emotional, or demanding.

A big part of success in real estate is generating leads. Unlike a regular salaried job, agents only get paid when they close a deal. So, if you’re not selling, you’re not earning.

Lead generation takes time and effort—whether it’s cold calling, networking, or marketing yourself on social media. And it can take weeks or months for those leads to turn into actual sales. This is where persistence comes in—agents who get easily discouraged or don’t handle rejection well are going to struggle. The most successful agents know that consistency is key when it comes to staying on top of their game.

The real estate industry is constantly evolving, so staying up to date with new trends and changes is crucial. New laws, marketing strategies, and tech developments mean you have to keep learning if you want to stay competitive.

Take online marketing, for example. The digital shift has changed how we operate, and agents who once relied on traditional methods might struggle if they don’t get on board with things like social media or digital tools. Keeping up with the latest trends, doing continuing education, and adapting to changes can give you a big advantage.

Real estate isn’t your standard 9-to-5 gig. You’ll likely be working long hours, including weekends and evenings, because that’s when your clients are available. While the flexibility can be a plus, it can also make it hard to maintain a good work-life balance. Being “on call” all the time and juggling multiple deals can quickly lead to burnout if you’re not careful.

If you want to have a long career in real estate, you’ll need to set boundaries and manage your time effectively. Using tools to stay organised, delegating tasks where possible, and being clear with clients about your availability can help you avoid burnout. From my own experience, finding that balance can be a real challenge, but it’s necessary if you want to stick around in this industry.

Despite the challenges, plenty of agents build successful, long-lasting careers by sticking to a few key principles. First, it’s all about relationships. Real estate is a people business, and successful agents invest time in building and maintaining strong connections with clients and colleagues. Over time, a good reputation will bring in repeat business and referrals, which are essential for long-term success.

Second, resilience is a must. Real estate is full of highs and lows, and your ability to stay motivated during the tough times will make all the difference.

Finally, adaptability is key. The industry is always changing, and those who are willing to learn, embrace new technologies, and adapt to the latest trends are the ones who thrive. Whether it’s mastering online marketing or staying across new laws and regulations, agents who focus on growth and learning will always have the upper hand.

While real estate comes with its fair share of challenges—market uncertainty, competition, the pressure of lead generation, and work-life balance—those who approach it with resilience, adaptability, and a focus on building relationships can enjoy a rewarding and long-lasting career.

The Albany property market in 2024 provides a unique case study when examining the relationship between building approvals and real estate sales. In a year marked by dynamic changes in both building activity and property transactions, the correlation between these two key factors reveals important insights into market trends and economic conditions in the region.

Building activity in Albany has been robust throughout 2024. According to the data from the City of Albany’s building reports, 64 building permits were issued in July 2024, totalling a value of $16.9 million ​(CoA Approvals Aug 2024). The types of permits issued include residential dwellings, outbuildings, and commercial properties. Notably, several permits were granted for significant construction projects, such as an early learning centre valued at over $1 million and several residential complexes worth more than $2.7 million each ​(CoA Approvals Aug 2024). This uptick in construction activity reflects strong developer confidence in the local market, supported by demand for new housing and infrastructure.

The overall trend shows sustained building activity, particularly in residential sectors. Throughout the year, there has been a mix of approvals for single dwellings, grouped dwellings, and commercial developments ​(CoA Approvals Aug 2024). This suggests that developers are responding to ongoing demand in both residential and commercial markets, which aligns with the broader economic recovery post-pandemic.

On the sales side, Albany saw 665 residential sales in the 12 months leading up to August 2024, representing a 2% decrease from the previous year ​(REIWA residential report ) Despite this slight dip, the market remains resilient, driven by strong demand for houses and land. The median sale price for a house in Albany as of August 2024 stood at $540,000, marking a significant 14.3% increase compared to the same period in 2023​ (REIWA residential report )Similarly, land prices saw modest growth, with the median sale price for land reaching $199,000​

The most active price range for house sales was between $500,000 and $599,999, with a growing share of sales occurring in the higher price brackets above $800,000​. This shift suggests an increasing demand for premium properties, reflecting the overall rise in property values in Albany. Additionally, the number of active listings has decreased by 15%, pointing to a tightening market where demand outpaces supply​.

The relationship between building approvals and sales is often cyclical, with increased construction activity typically following periods of high demand and price appreciation in the property market. In Albany, the rise in building approvals during 2024 corresponds with the continued high median house prices and land sales, indicating that developers are capitalizing on the strong market conditions to meet demand.

One clear correlation is the lag between approvals and completed sales. As building projects initiated in 2024 are completed, they are expected to add to the housing stock, potentially easing the pressure on prices and increasing the number of properties available for sale. However, with 175 properties listed for sale as of August 2024, representing a 15% drop from the previous year​, the limited supply continues to support rising prices, particularly in the residential sector.

Another factor contributing to the correlation is the increased focus on premium properties. With building approvals for high-value residential developments and substantial commercial projects, developers are targeting the upper end of the market, where demand has been strongest. As noted, a significant portion of house sales in 2024 occurred in price brackets above $800,000, and this is likely to continue as more new builds are completed​.

Looking ahead, the current level of building activity suggests that Albany’s housing supply will increase over the coming months and years, which could lead to a stabilization of property prices. However, the persistent demand, particularly for premium properties, means that price growth may continue, albeit at a slower pace.

The increase in approvals for commercial and infrastructure projects, such as the early learning centre and other significant developments, also indicates broader economic growth in the Albany region. This, in turn, supports the property market by driving population growth, employment, and demand for housing. As more families and professionals move into the area, the demand for both new and existing homes is expected to remain strong.

The Albany property market in 2024 highlights the intricate relationship between building approvals and property sales. While the market has seen a slight reduction in sales activity, this has been offset by a strong increase in property values, particularly in the residential sector. The rise in building approvals reflects developers’ response to ongoing demand, especially for premium properties. As new projects are completed, they are likely to alleviate some of the supply pressures that have driven up prices, leading to a more balanced market in the future.

For potential buyers and investors, the data suggests that Albany remains an attractive market, with opportunities for capital growth in both residential and commercial sectors. The current building activity, combined with sustained demand, indicates that Albany’s property market is well-positioned for continued growth, making it a key area to watch in Western Australia’s broader real estate landscape.

 

 

As an established real estate agent in Albany, I’ve observed an interesting trend: the impact of sports and community events on property popularity. These events not only foster a sense of community but also significantly enhance the attractiveness of living in these areas. Here’s how sports and community events can boost suburb profiles, and why they are a crucial consideration for prospective buyers and investors.

Community events, including local sports leagues, festivals, and fairs, foster social cohesion and a strong sense of community. When residents actively participate in these events, it creates a friendly and welcoming atmosphere. This community spirit is a significant selling point for potential buyers who value a connected and supportive neighbourhood. Homes in areas with a high level of community engagement tend to be more desirable, driving up the demand and potentially property values.

The presence of regular sports often leads to improved local amenities. We have seen this over the years with investment in North Road and Centennial Park sporting precincts and facilities. These amenities enhance the overall appeal of the area, making it more attractive to families and individuals who enjoy an active lifestyle. Enhanced amenities increase the desirability of a suburb, subsequently raising the popularity of the area, increasing the number of people wanting to buy and invest.

Community events attract visitors, increasing foot traffic in the area. This influx of people supports local businesses, leading to economic growth and development. Thriving local businesses generally contribute more to the community. Prospective buyers are often drawn to areas with vibrant local economies, various entertainment options and a variety of events. The economic vitality brought by these events can therefore positively influence peoples decisions to move to the region.

Sports and community engagement contribute significantly to quality of life. Residents within these areas are rife with recreational opportunities, and promote physical health. Areas known for a high quality of life tend to attract more buyers, driving up demand. Quality of life is a critical factor for many homebuyers, particularly families and retirees, who prioritize areas that offer a balanced and fulfilling lifestyle.

Areas that regularly host significant sports and events often attract investment from both public and private sectors. Government bodies may invest in infrastructure improvements, while private investors might develop new housing, retail spaces, and recreational facilities. Such investments can transform a suburb, making it more modern and attractive. Increased investment leads to enhanced buyer demand as the area becomes a sought-after location.

High-profile sports events and community festivals often attract media attention. The positive media coverage can put a locality on the map, highlighting its attractions and benefits to a wider audience, particularly those that haven’t been to Albany before. This increased visibility can lead to a surge in interest from potential buyers who may not have previously considered the area.

In Albany, we’ve seen first hand how events like Taste Great Southern, Albany Classic Around the Houses car racing, ANZAC celebrations, cruise ship dockings, Naval Ship tours, Maritime Festivals and more can positively impact peoples impressions of the region, and have them consider a relocation to the region

Sports and community events play a crucial role in enhancing the attractiveness and value of a neighbourhood. As a real estate agent, I always encourage buyers and investors to consider what is in the area when evaluating potential properties to purchase. Not only do they enhance the quality of life and foster community spirit, but they also drive economic growth. If you’re looking to invest in real estate, paying attention to local sports and community events can be a key factor in making a wise decision.

The Millennial’s Guide to Real Estate Investing in Albany, Western Australia

Welcome to the world of real estate investing in Albany! Whether you’re a first-time investor or looking to expand your portfolio, Albany offers unique opportunities and challenges for the millennial investor. This guide will walk you through some key strategies tailored to help you make the most out of your investments, focusing on budgeting, choosing the right locations, and planning for long-term growth.

  1. Understanding Your Budget

Investing in real estate is an exciting venture, but it starts with a realistic assessment of your financial situation. Budgeting is the cornerstone of any successful investment. As a millennial, it’s crucial to balance your real estate ambitions with other financial commitments like student loans, retirement savings, and lifestyle expenses.

Key Tips:

  • Assess Your Financial Health: Before diving into real estate, ensure your financial house is in order. This includes having a handle on debt and ensuring you have an emergency fund.
  • Get Pre-Approved for a Mortgage: Knowing how much you can borrow will help narrow your search and streamline the investment process.
  • Consider Additional Costs: Property investment isn’t just about the purchase price. Account for stamp duty, legal fees, property management costs, and ongoing maintenance.
  1. The Importance of Location

In Albany, location is not just about the property but the potential for growth, accessibility, and lifestyle. A well-located property can mean the difference between a good investment and a great one.

Prime Areas for Investment:

  • Central Albany: Ideal for young professionals and small families, properties near the CBD are in high demand due to proximity to amenities and employment opportunities.
  • Goode Beach and Middleton Beach: These areas are perfect for short-term rentals and holiday homes, offering attractive returns during peak tourist seasons.
  • Spencer Park: A great option for long-term rentals, given its closeness to schools, medical facilities, and shopping centres.
  1. Long-Term Growth Strategies

Real estate investing is not a get-rich-quick scheme. It requires patience, research, and strategic planning. For sustained growth, focus on properties that offer both rental income and potential for capital appreciation.

Strategies for Success:

  • Buy and Hold: Property values in Albany have shown steady growth, making buy-and-hold a viable strategy. This approach allows you to benefit from both rental income and long-term capital gains.
  • Look for Value-Add Opportunities: Properties that need a bit of work can often be bought below market value. With some improvements, these properties can be turned around for substantial profit, either through sale or increased rental rates.
  • Stay Informed: Keep up with local development plans, changes in zoning laws, and economic factors that can affect property values. The more informed you are, the better positioned you’ll be to make wise investment choices.

Conclusion

Real estate investing in Albany can be a rewarding venture if approached with diligence, research, and strategic planning. Remember, understanding your finances, choosing the right location, and adopting a long-term perspective are key to building a robust investment portfolio. Whether you’re looking at purchasing your first rental property or adding to an existing portfolio, Albany offers diverse opportunities to grow your investments.

Happy investing, and here’s to building your future in real estate!

 

Disclaimer: Whilst every care has been taken in collating the displayed information, we make no warranties as to the completeness, accuracy or reliability of such information and disclaim all responsibility for any direct or indirect loss suffered by any recipient relying on the information. This advice is general in nature, and should not be considered investment advice.

 All recipients should satisfy themselves as to the correctness of any information by such independent investigations as they or their advisors see fit, and seeking independent professional advice.

 

The Negative Gearing Debate

 

Recently, there has been talk in the media at a Federal Government level, particularly from the Greens Party, about abolishing negative gearing. In simple terms, negative gearing is when the cost of owning a rental property outweighs the income that it generates each year. Negative gearing gives investors and landlords a tax break for having a loss in an asset, where they can claim a tax deduction against other income. At a time when we are in a cost of living and housing crisis, proper debate needs to be had around this subject, and I believe this should be around the whole taxation system rather than just one form of taxation. Currently, there are approximately 2.4 million landlords in Australia that provide private housing for tenants, with approximate 80% being mum and dad’s that only own 1 investment property. By targeting those who hold the majority of investment properties, it is really going to disincentivise them to hold onto those properties. We’ve already seen the effects of changes to Residential Tenancy Acts across the country, with numerous landlords selling up, and these properties purchased by owner occupiers, reducing the already scarce number of rental properties available.

 

In a time when we need more housing, not less, the debate should be around how we can encourage more investors to purchase properties and help meet demand for rental housing. I don’t believe the Government should have to do all the heavy lifting when it comes to providing housing, which is where private investment comes in. However, I do believe all levels of government have dropped the ball over a long period of time (that’s a whole other blog) for their lack of investment in social and public housing.  This lack of investment has significantly contributed to this mess, that will take significant amounts of time, money and strategizing to return to some form of normalcy, if it does at all. You can learn from history, and when negative gearing was taken away back in the mid to late 1980’s for 18 months, we saw major increases in rent, and price growth of assets skyrocketing. This certainly doesn’t help those that need a roof over their head, or address the issue at hand. Would it happen the same way again? Who knows, but we can only learn from our experiences.

 

I would be surprised to see any changes around the current format for negative gearing, mainly because my understanding is that most politicians have property that they negatively gear, so they would only be hurting themselves. This debate tends to rear its head every decade or so, much like the topic of daylight savings. With approximately 885,000 people moving to Australia in the last 2 years, we need to encourage extensive investment opportunities for landlords, not making it less enticing for them. If we remove the incentive for potential investors, the current situation will continue to develop, making it harder to resolve in the long run. In my opinion, the more appropriate  debate should be around GST. This hasn’t changed for over 20 years, and most western societies have rates close to 20% or higher, but again, that’s another debate for another time.

 

Whichever way the Government goes, there needs to be a uniformed strategy and plan in place. Governments will argue they have these in place, but the reality is, they’re either a hard copy document in a filing cabinet or a link online burrowed somewhere deep into a website. I’m sure it will be dusted off with elections to happen in the next 12 months but if we’re serious about fixing this crisis, action needs to start now and not wait for more budget announcements, tenders to be completed, government departments to sign off on projects and the list goes on. I would expect this topic to be front and centre for foreseeable future, and you’ll have an opportunity to question the very people that are not doing enough or being accountable. One thing we know for certain is that the housing and cost of living crisis is not going anywhere soon.

 

I hear the term “affordable housing” mentioned a lot by various politicians and media, however the one thing that has me baffled is, no one can explain to me what the dollar value figure is that is actually “affordable”. I suspect it’s because they don’t know precisely what it is, and due to the current market climate, things are evolving at a rapid pace so the figure would constantly be changing. There is a lot of talk of building affordable housing which is great, however, if the finished product is above the median price, is that really affordable?

Affordable housing differs greatly between areas. What is deemed to be affordable housing in Albany is very different to affordable housing in Perth or Port Headland. When we look to our Eastern State counterparts, a property in Sydney selling at $700,000 may be deemed to be affordable, however in Albany, that is certainly not the case.

As prices continue to grow, does that mean the “affordable price” continues to rise? At the time of writing this article, there are less than 20 houses available under $500,00. The median price for a property in Albany is currently $489,500. Does this mean that the median house price is affordable? If you are a Baby Boomer looking to purchase a property, in most instances, this price range would be deemed “affordable”. However if you are first home buyer, then this price is certainly not “affordable” in my opinion. For a first home buyer, I would see “affordable”  as being under $400,000 (keeping in mind the Government First Home Buyer Scheme relating to Stamp Duty is capped at a purchase of $430,000), but I struggle to see any developer, either private or government, being able to develop a  suitable product that has the desired land size and dwelling that will fit that budget. “Matchbox houses”  (small houses on small blocks ) are already selling for over $450,000 in Albany. To be able to purchase a decent sized family home on a reasonable sized plot of land, purchasers are looking at spending far more than the median price.

The idea of small and tiny homes, container housing and various other ideas are being discussed as short term solutions, but we’re yet to see this take off, or see how this would work in a real life scenario. It will be interesting moving forward to see what solutions are proposed, and if the median price is still considered “affordable”. One thing I would love to see is clarification as to what the criteria is to determine an “Affordable home”, and how this will continue to evolve in line with wage rises and available properties. We need to know this information, so that we are not selling false hope to those people thinking they will get an affordable home when it may not be even possible in the near future.

Hop into the spirit of Easter! Simply colour in the Easter colouring sheet, and return to our office on York Street for the chance to win an amazing Easter Hamper!

One entry per person. Entries must be received by 4pm Wednesday 27th March at 258 York Street. Each completed sheet gives entitles you to one entry in the draw.

 

Easter Colouring Comp (1)

It’s Exhausting being a Buyer

By Jeremy Stewart

Right now in the Real Estate Industry,  we are coming across a lot of buyers that are searching for property. Often, these buyers have been searching for some time. Although you don’t wake up one morning and say “Let’s move to Albany”, it truly is really being a buyer and it takes a lot of time, energy and patience.

 

In today’s market, there are limited listings – so when something new comes to market, you aare already competing with a large pool of buyers  and it can be a frustrating process. The endless email enquiries, text messages, phone calls and different agents as well, it can be overwhelming and cause a lot of frustration.

 

So, what can you do to help ease the process and make things a bit easier?  Here’s my top tips.

 

  • Pre-register you detail with an agent of choice (of what you’re looking for, preferred suburbs and any specifics. More info the better. Did you know any agent can show you all listed properties no matter the listing agent? This is called a conjunctional.
  • Be realistic – Real estate agents are busy people and often complete a multiple of roles in the community or have families. If you make contact and provide as much information as you can – a diligent agent will get back to you within 24 hours or sooner, don’t panic if you don’t hear from your agent immediately.
  • Notice –When you are looking to view a property, try and give as much notice as possible – it is very unlikely we will be able to show you the property on the day of your enquiry, but we can certainly schedule one for the coming days. This is because some properties are tenanted, and they require 72 hours’ notice in writing. Owners like to present the property the best and may need to make arrangements for them & their family.
  • Budget – Be sure to have your finances in order before you start seeking a property to purchase, having a pre-approval is advised if you’re getting finance and have your broker/bank contact details ready to go.
  • Entity – When making an offer have your entity and information ready to go. Making an offer and then changing the buyer’s name later may attract double stamp duty and no one wants that (other than the government )
  • Patience – Don’t panic and put unrealistic timeframes on yourself. If you must travel to inspect a property, give yourself time. Explain that you’re travelling so that the agent can explain to the seller. Most sellers are reasonable when waiting for inspection confirmations.

 

Overall, buying a property isn’t something you do every day (actually most people only do it on average 7 times in their lifetime ) so try to enjoy the process, take a deep breath and remember that there is a property out there for you and it will come up when it’s meant too. If you’d like to learn more about the buying process or would like to pre-register your details, reach out to myself or my team at Merrifield Real Estate who would love to help.

My 2024 Property Market Crystal Ball

By Jeremy Stewart

 

As we enter 2024, I’ve been asked what my thoughts and predictions are for the real estate market for the year ahead. So here they are.

Housing Supply – There will continue to be limited properties available both for sale and for rent. Local council building approvals are still low due to the cost of materials, labour and other costs, as well as tradesman shortages, which means we are not seeing many new homes being built or finished. Another issue facing many Sellers is “If I sell my property to make a profit, where do I go?” Yes, you may be able to sell your house for a great price, but this is only once piece of the puzzle. With increased prices and very low levels of stock, people are forced to go into further debt to purchase a superior home, or reduce their expectations and buy something that is not as good as what they already had. Unless you have a specific reason for moving, such as relocating for work or downsizing, then the added stress of selling and buying, just to make a few dollars, is not always worth it.  I expect the housing supply crisis featured in the media to continue throughout the year.

Prices – The basic principle of supply and demand are a driving force in the market. While there are more buyers than there are sellers, or more renters than there are landlords/investors, then prices are going to continue to increase. Many of the proposed larger scale social and community housing projects are still some time away from completion, and won’t available in the immediate future. If the Government continues to lack providing incentives to potential investors to purchase established houses for tenants, we can expect to continue to see rent prices increasing.

Regional areas – Many regional areas are undervalued compared to many cities and towns across the country, so savvy buyers will be looking to target these areas. People looking for lifestyle properties in regional areas will also consider the cost of living, and look for areas that provide solid fundamentals like good job prospects, quality education and medical facilities, climate/weather and much more. We are also seeing an increase in tenants making the move to regional areas, as the rent is more affordable than their metro counterparts. I would expect that the property market in regional areas will perform well, as well as the local economy.

Interest rates – In 2023, a high proportion of the countries top 25 economists got it wrong when making predictions.  They have access to exclusive data and are the experts in the field, so I take everything they predict with a pinch of salt. Being no expert in the field I will put my thoughts forward. I believe that we will still see rates go higher throughout the year, and then stabilise. Inflation will get to a point where it is no longer effective, and we will need a shift similar to what’s happening across the ditch in NZ. With our federal government not prepared to lift the GST rate, the RBA only has one lever to pull when trying to bring this down. In reality, interest rates are at the same level as around 2010/11, which was not all that long ago. The difference is that we now live in a society that has access to news constantly. In saying all of this, it is down to the RBA and the previous government taking reducing rates to an unsustainable level, and making unkeepable promises in the media that rates would not rise until 2024. So while it is not all bad new, it is still going to be a while before rates start moving in a downward trend.

Technology – This will continue to shift how real estate moves and business is done. In the USA, there are some amazing trends and developments happening, and we in Australia tend to follow suit in the years afterwards. With things like DocuSign, Facetime videos and virtual 3D technology, buyers no longer need to physically view a property to be able to purchase it. We are seeing this a lot more and I expect this trend to continue through 2024.

So, there you have my thoughts and predictions for the year ahead, based on my experience in the industry. I look forward to seeing what comes of the upcoming year, and would love the opportunity to discuss my thoughts with you at any time!

 

Floods and Fire – Do we need better Planning?

By Jeremy Stewart

 

As we come into summer, we are inundated with information from the media warning us about the prediction of  very hot, dry conditions, resulting in an increase in bushfires. Likewise, when winter approaches, especially in the east coast, floods are threatening communities, year after year.  I think back to 2021 and the floods that isolated the people of Elleker for weeks, and to 2018 and the bushfire in Torndirrup National Park that burnt well over 600 acres and threatened the lives and home of hundreds of residents. This begs the question, are the State and Local governments doing enough to mitigate the catastrophic effects of these weather events.

 

Do we need our Government to take more responsibility and consideration for planning in the areas that are more risk to floods or bushfire? This is a subject close to home, as Albany has an undulating topography, so falls into a high risk category for these weather events, both of which we have experienced first hand.

Planning is not an easy job, and not everyone is going to be happy, but it is imperative to find a balance. Planners have many different factors to consider, and the general public very rarely have access to the kinds of information that they rely on to make important decisions relating to bushfire and flood plans. I wonder, however, if the Planning departments are too reliant on current policies and red tape, rather than taking a hands on approach. By visiting the areas that are at risk and talking to the people directly effected by these decisions, could they come up with an easier, common sense solution?

 

Recently, I had a client experience this red tape and bureaucracy first hand, when they were asked to provide a non vehicle access lane for a land development. After having the requirements for this changed multiple times, the relevant City of Albany employee finally attended a site inspection, only to realize that the area was on a sloping site! This caused significant delays, cost and stress to the developer, who then had to make further amendments to satisfy the City’s conditions. Had the City had someone attend the site in the first instance, rather than relying on the mapping systems and plans, so much time, energy and cost could have been saved. They would have had a much better, first hand understanding of the area and the risks associated with the sloping site, drainage, flood prone areas and bushfire risks by seeing the property in person.

 

Hindsight is a wonderful thing. Having the knowledge that we do now, I doubt that many areas that are currently developed would be approved today due the to risk of bushfires and flooding. I look around the many areas of Albany, and am concerned for many properties, as we are at risk of both of these events. The question remains – should houses have ever been allowed to be built in these areas? Changes to the Building Codes and bushfire compliance and awareness over the last decade has helped to combat some aspects of the risk, however the government on all levels needs to get on board to reduce the risk even further. I hope that this can make way for a broader discussion on the topic.

Recently I walked into a home that we had listed for sale and one of the owners had two young kids. One child running around, the other a young baby in mum’s arms. I take my hat off to her as she was the inspiration for this blog, because I can’t imagine how hard it is to prepare a property for sale with a young family and this property was well presented.

 

So, you’ve decided to sell your home and as we know, presentation is the key in getting the buyer to create that emotional connection with the home that obtains strong offers at good prices. But I hear those mum’s say, how can I keep a place clean & presentable? Toys everywhere in a variety of rooms, dirty hands-on tables & benches, sometimes crayon writing up the walls, beds not made, and list goes on. It must feel like you’re always cleaning up and then the agent calls and advises we have a buyer we’d like to bring through for an inspection. Seriously OMG.

 

First of all, give yourself a break. You can’t be everything to everyone and we can’t expect it perfect. Things happen out of our control so cut yourself some slack. Doesn’t mean also that it’s an excuse for not making an effort to tidy up though. A few little hints however that may assist. Get the grandparents/family members/friends on standby. More hands make light work so you can smash out those jobs or get the kids looked after a while you get the house ready. Cupboards are for packing things away so work on storing items in there. Most men wont even look in there from my experience. Sheds are another good place to put things away. Potentially arrange set days & times for inspections. It’s much easier on everyone to bring several buyers through in a 2 – 3-hour period twice a week or whatever you arrange with your agent than it is having an inspection every single day.

 

Consider a holiday or vacation in the first week or two. This is when the most activity is going to be so give the agent full access as it only requires one clean. Get a lawn mowing contractor in for the lawns. Time is what we don’t have when we are busy bringing up a family so delegating or sub-contracting is a good idea. There’s plenty more things that we can advise, though the above are a good starter.

 

Lastly to the lady that inspired this story. Well done and what a great example you’ve set for your kids and other homeowners.

One of the big ‘grey areas’ that are often coming across the desk of a commercial property manager are the questions surrounding building maintenance works.  The questions are often relating to responsibilities – it is an Owner or a Tenant expense?

 

Most commercial leases are different, and they are written following an agreement of terms between the Owner and the Tenant.  Despite this, a general rule of thumb with commercial tenancies is that it is up to the Tenant to carry out all repairs and maintenance within the property.

 

This is very different from a residential lease, where the responsibility of repairs and maintenance falls on the Owner, and for this reason, we are often having to ‘educate’ new commercial tenants on their responsibilities.

 

Some of the more obvious items of Repairs and Maintenance, which fall under the responsibility of the tenant include keeping the electrical and plumbing equipment in a safe working condition; arranging regular servicing of fire equipment, air conditioning and mechanical equipment such as roller doors; cleaning out gutters and car park drains prior to the winter rains each year; keeping doors, locks and windows in working order; painting when required; pest control; cleaning …… and other items similar to these.

 

As part of professional property management services, it is good practice to inform tenants of their obligations, and to help them implement systems to ensure they are taking good care of the property they are leasing.

 

The exceptions to a Tenants repairs and maintenance responsibilities within a commercial property include structural works and works of a capital nature, as these types of jobs will always fall under the responsibility of the Owner.

 

To provide you with a general idea, structural works will include items such as the replacement of rusted roofing and support beams, the installation of new structures (if agreed), and necessary improvements to plumbing and electrical services.

 

Capital works are generally works required to be undertaken by a Landlord when major parts of the building or services belonging to the Landlord have reached the end of their life and require replacement.  Some good examples of this will include the replacement of an old air conditioning system or hot water system; the replacement of old and unusable doors and windows; and the replacement of rusted or deteriorated wall and roof sheeting, just to name a few.

 

Most commercial investors understand that a certain level of capital input is required every now and then to help maintain secure tenancies and thus contribute to a successful investment.