Real estate comes in all forms and sizes. Majority of people looking want a 3 bedroom, 2 bathroom home or bigger being that the average household consists of a couple of kids these days. And they want room for friends and family to stay. However, there are a couple of sections of the market I feel are really missing and under supplied, which is the 1 and 2 bedroom homes ( not units or townhouses ) and disability housing.
When people think 1 and 2 bedroom dwellings, most people would think units in a complex with little to no land. And while they are sought after in some markets, not everyone wants to live in this style of property. Recently for example I had a 10-month-old built 2-bedroom, 1 bathroom property for sale. It was a very neat and tidy, well designed home with open living, high ceilings, single garage along with good sized bedrooms in a secure location and close to amenities. Within 3 days of it being on the market we had 4 offers ( 3 from sole occupants ) and multiple enquires. What that shows to me is that there is a very real need for these kind of properties for people that are on their own and want to downsize but not into a complex.
There is also a perception that this kind of product is for elderly people. Wrong! There is a younger demographic looking for an affordable first home and some that are just happy with the single life and don’t want to rent forever. For some developers it’s about lot yield and I get that, because it’s all about the numbers and return on investment, however I believe that you could still get a good return out of a product that appeals to people on their own.
And that then turns me onto the topic of disability housing. I’ve been doing real estate for some 20 years now and it’s fair to say, I’ve not come across many properties in Albany, even newer built homes that cater for disabilities. There is a large lack of supply for these kinds of properties. Serious thought and consideration needs to be put into design for ramps, wider doorways and passageways, handrails in wet areas, bigger than normal toilet areas and more practicable kitchens to manoeuvre around are just some examples in housing construction that could do with a nudge. And implementing those concepts would make it a whole lot easier not only for the occupant but for the carers that assist them. The demand for disability housing requirements is only going to increase as the population increases and people get older.
So, if you’re thinking of building an investment for the future, think about disability housing and smaller homes that aren’t matchboxes that allow for lifestyle. Because I’m sure if we put our mind to it, you’ll know someone within your immediate circle of networks that one day might need this kind of product.
By Jeremy Stewart – Director
Let’s not sugar-coat things. Australia and many other countries at the moment are in a housing crisis and it’s about to get a whole lot worse. There simply isn’t enough housing to accommodate people and we’re seeing more and more people homeless, living in sheds, cars, refuges ( if they can get in ) or having to move into cramped accommodation with friends or family. I have firsthand knowledge of this working in the industry but also as being a board member of the non-for-profit Albany Community Foundation. We’re getting more and more requests for assistance each week in our community. So much so, key people in the community are meeting regularly to try and find quicker, tangible solutions ( not wait till 2024 to build houses ).
People have asked me how we got in this position. Well for a start, home ownership has been declining since the year 2000 and that’s been roughly 5% across the market in that time. So, like everything it’s all about simple supply and demand. If there is less of a product available with a strong demand, then that pushes prices higher ( which is where the current market is at and heading higher ). We just haven’t built enough housing and governments have sold off assets without replacing them. So, you see we have less supply available. We’ve also been faced with people from overseas returning home and moving back into property after covid.
In my opinion it’s only going to get worse and higher. Why do I think it’s going to go higher? Firstly, you have a population increasing and about to tick over 26 million and the federal government is lifting immigration numbers to assist with the shortage of workers. State governments are meddling in changes to the tenancies acts ( just look at Victoria and the results of that. People I speak with in the industry tell me residential landlords are selling up and moving into the commercial space ). Also, in a REIWA survey early this year indicated that 61.3% of the 7000 landlords surveyed would sell in the next 2 years if the changes are bought in. Then, throw in local government rates increases, insurance increases, interest rates rises to name a few and it doesn’t paint a pretty picture of why you would want to be a landlord. So, my question is, where is everyone going to live being that the system is already overloaded? And how much more pressure can the social housing sector handle with waiting lists years and hundreds in the que ( estimated to be 33,500 in WA and over 600 in The Great Southern).
Government relies on the private rental market to provide rental properties, however the whole dialog around landlord’s vs tenants has created an unwelcome bias. Let’s remember here that 80% of investors are just your mum and dads who only own 1 investment property. So, this dialog needs to change. Without investors buying property, the potential tenant doesn’t even have a property they can apply for.
So, here’s an idea/solution that won’t be to everyone’s liking but something for further debate. Why isn’t there further incentives for investors to buy property? If mum and dad investors make up 80% of the investment purchasing market, then what about offering them no stamp duty required to be paid in the next 12 months if they buy 1 investment property that is fully leased out. Yes, it will mean government bottom line will take a short-term hit, however I bet it will be overall a better outcome than the cost of providing social housing or the cost of all supporting people with mental health effects from the stress of not having a house or the burden on service providers like Anglicare, our health system and many more agencies. Wouldn’t hurt treasury to cost it up at the least. And if investors buy properties, then at least there is more stock which is what is lacking!
And with more supply it should take up some of the slack in the market, shouldn’t it? What other incentives that would be required, I’m not sure just now and people will argue they already get massive benefits through negative gearing, depreciation and the like, but surely having something is better than nothing being we have a national crisis.
While yes, the divide in society between the people that can afford to buy property against those that never will, will get greater, isn’t it better to at least try to have more property available so that people looking to rent have an option other than a social housing waiting list or living on the street or in a car. Because if we don’t do something now it’s all going to be grim. Better to have an opportunity than nothing at all.
By Jeremy Stewart – Director
My name is Davynka Moss and I am a mother of 3 boys, happy wife, Albany local and licensed Settlement Agent. I started the business on my own in 2005 and it has now grown to a team of 7 at our new location of 12 Aberdeen Street, Albany.
Buying and selling property is the biggest financial decision most of us will ever make so good communication between your Real Estate Agent and your Settlement Agent is imperative to ensuring a smooth, quick, and easy transaction.
Settlement is the important final stage when buying or selling a property. You will be asked by your Real Estate Agent to nominate a Settlement Agent (also known as Conveyancer) at the point when you sign an Offer and Acceptance. The role of a Settlement Agent is to arrange the legal transfer of title, and clear or ensure any debts associated with the property are cleared at settlement. Your Settlement Agent will work hand in hand with your Real Estate Agent to also ensure all conditions to the sale are met such as Finance Approval, Termite Reports or Building Inspections.
Once a Contract is signed, your Real Estate Agent will send a copy of this, your details, and formal instructions through to your nominated Settlement Agent. Your Settlement Agent who will then reach out to you to advise you of the process going forward. There will be more paperwork to complete with your Settlement Agent as well as having your identity verified. The Real Estate Agent maintains contact with your Settlement Agent as the conditions to the Contract are met.
In the lead up to settlement your Settlement Agent will keep both your Real Estate Agent, and yourself, informed of what we are doing, and what we expect you to do. We will also confirm once the settlement has been arranged. If there are delays with settlement you could have to pay penalty interest, or you could be entitled to compensation, so it is important to ensure that everything is completed as soon as possible.
On the actual day of settlement your Settlement Agent will notify your Real Estate Agent once it has been completed. Your Real Estate Agent will then make arrangements with you to complete the handover of the keys.
Buying or Selling real estate need not be stressful when you have the best team on board. Choosing a Settlement Agent that is prepared to work hand in hand with your Real Estate Agent will go a long way in ensuring that your settlement occurs on time and hassle free!
I have lived in Albany for nearly 20 years now, so I almost qualify as a ‘local’ but it still surprises people to learn that this has not always been the case. Now, Albany is far from a bustling city environment, and some will say the lifestyle is too relaxed but my childhood was far more relaxed than this. And as I have now come to realise, a bush childhood gives you a much different view of life than others, and quite often the unique outlook that it provides becomes a benefit to you as an adult.
You see, I was lucky enough to grow up on a small farm in the wheatbelt town of Corrigin. Whilst Corrigin is closer to Perth than Albany is (you can be there in 2 hours) it has a population of only 700 people, give or take a few. Our family farm was 12km out of town, and here my father and my uncles farmed for my Grandad Paul. The Moldavia property (named after the Szczecinski home town in Polland) ran sheep, and grew wheat, barley, lupins and oats. Dads three brothers lived nearby and they had kids similar in ages to my brother and I, so it was often him, my uncles and my cousins all at the farm together. My Grandad was always around the house too. He’d drop in for smoko and lunch – now he was a real cheeky character and was always stirring us up in one way or another!
I never gave much thought to my childhood being that different. Well, it wasn’t different to any of my school friends! Even when I left home to live at a high school boarding college, growing up in a small town was the norm and most of my friends had lived the exact same childhood.
But, in a recent conversation I asked a friend what the first thing was she thought of when she thought of her childhood. She replied “being cramped – there was four kids in a small house, always tussling for space”. When I think of my childhood, I think about playing in the lilac tree in the front yard and making teepees in the bush. The two responses are worlds apart. And it has led me to realise that a lot of how I view the world today is a direct result of my rural upbringing.
#1 Country kids can entertain themselves. Growing up on a farm we spent hours outside using our imagination, walking, riding or driving around the farm. In fact, if we came in too early, we were sent back outside to play. This has led to being able to find solutions to problems that may pop up from time to time in my working life. Think Carly, what is another thing to try?
#2 Country kids are practical. Due to fact there was so many men around growing up I never had to do any real farm work so I can’t attest to having learnt any practical farm skills – unless you call opening a gate skill. Any farmer’s child knows that when your Dad asks you to come and feed the sheep this was the reason why. Hop out, open the gate, wait for the car, close the gate and then run to get back in…might not be practical but it sure was useful to Dad. And there was no point in complaining about it either!
I learnt to drive when I was around 12. We had a 1949 Ford Cortina which Mum & Dad brought us to take ourselves to the bus stop and back in. Needless to say, I learnt some valuable lessons on safe driving the hard way! But I look at teenagers now struggling to learn on the roads and many roundabouts and I’m very thankful for my farm driving lessons.
#3 Country kids are not all that. Another valuable lesson I learnt was the world doesn’t revolve around me – it revolves around the weather. When my sister was due to get married, she was given two options – after seeding or after harvest. Our family holidays were always planned for the end of harvest and coming down south was always a treat to get away from a wheatbelt summer.
#4 Country kids know what they can, and what they can’t control. Many people say that farmers are always talking about the weather – but this is because their whole life revolves around it. No rain, too much rain, or rain when its not meant to rain can make or break their season. What’s also true about farmers is that they accept what’s in and out of their control. 100mls just before harvest isn’t ideal and no doubt there will be a few expletive words – but soon after will be acceptance of it is what it is.
I’ve been coaching netball for over 20 years and when I get given a farmer’s kid to coach, I always know the experience will be different to a townie. To be honest, I love it. And that’s because country kids don’t need things to be sugar coated – you can tell them how it is, and they accept it. And because they can accept it, their parents tend to give them honest feedback rather than telling how good they are each week. This is inline with how my parents managed my younger sporting life – I was always told to accept whatever team I was placed in, and they would never, ever think to criticize a volunteer coach.
#5 Country kids appreciate opportunity. I remember to play netball; my Mum would often drive my brother and I on round trips over an hour long. To make up team numbers, I played against girls well older than me, in positions I wouldn’t like. But I took every chance and I always understood that I was lucky that my parents made the effort to take us to these events. I think some kids today could learn from not having every pathway catered for them. It really does make you appreciate what you do have.
Overall, I know that growing up in the Wheatbelt has shaped me to the person I am today and I am pretty happy with how I am. Whilst there wasn’t ‘things to do’ like skate parks and movie theatres there also wasn’t much crime and we had a true sense of community. Mum & Dad played golf and left us playing in the bush for hours knowing that we would be ok. I can also say I’m never bored and I don’t need to be entertained – I can still use my imagination like when I was in the lilac tree. As an adult I have mastered the art of accepting a situation for what it is and find I don’t let myself get worried about things that are outside of my control. In a workplace such as Merrifield with our wonderful diverse team, knowing that I am one of many and not the centre of the office is a great outlook to bring to work.
I hope my colleagues and my clients also appreciate these character traits that can be attributed to my bush childhood. I know I respect it in other people when I hear that they have had a small farm upbringing!
Written by Carly Szczecinski
Commercial & General Manager
I’m in my 18th year of selling properties in Albany and I have seen the industry change a lot in this time. I laugh at the memory very early on in my career of me telling people I was pitching for business from that one of the reasons they should list their property for sale with me was because “my agency has a website to showcase all of our listings on”. Back then you were a trailblazer if you worked for an agency that had its own website, particularly before big platforms such as realestate.com.au came to the fore.
Rapid growth in new technologies and improved data capturing by large companies means that Buyers and Sellers now have direct access to more sales information than ever before. It’s not that long ago that the general public relied heavily on agents to provide them with sales data and keep them up to date with what was happening with property prices in their neighbourhood. So, with technology here to stay and the relative ease of communication that comes with living in the modern world, are real estate agents going to become redundant soon? Let’s delve a little deeper.
One of the main limitations of the data that consumers now have access to, such as sale price, sale date and physical parameters of properties, is that it doesn’t give any context. For example, a mortgagee or a distressed sale, where a result needs to be achieved quickly, may mean that the Seller did not have the luxury of time to wait for a buyer willing to pay a higher price to be found. A separation or sale of a property within a family might show an unusual sale price because the sale was part of a more complicated arrangement involving the exchange of other assets. And a private sale of a property to a friend of the owner may also be transacted at “mates’ rates”. A knowledgeable and conscientious agent will know the circumstances around each sale in their community and be able to identify the ones that were not completed at arm’s length. An experienced agent will also be aware of other factors that have impacted on a sale, such why some properties took longer to sell than ‘normal’.
The human element of dealing with a real estate agent should not be underestimated. Salespeople who have a terrific rapport with their clients can have a very big influence on what properties they ultimately purchase and what price they will pay. I’ve seen this play out on numerous occasions in my career and when a client really trusts their agent, they will take their advice quite literally and without question.
Furthermore, humans are complex beings and I’m yet to come across a one-size-fits-all style of approach when dealing with Buyers and Sellers. When people are purchasing or selling a property it is usually a very big deal to them and what comes with this experience are very big emotions. Highly skilled agents will be able to adapt to the different nuances of individuals involved in a sale and best handle expectations on either side of a transaction to achieve a result. A computer program certainly can’t provide the empathy and personalised interaction that an agent can.
Well established agencies such as Merrifield Real Estate provide property management and leasing services in addition to listing and selling properties. A lot of our work across all departments involves educating people about the legislation associated with various aspects of real estate. We often find ourselves giving out free advice and sharing recommendations of other service providers relating to the sale, purchase, leasing or management of a property, such as settlement agents, finance brokers, building inspectors, timber pest inspectors, plumbers, electricians, gardeners, handymen, etc. Agents help to foster communication in this sense and actively provide work opportunities to other local contractors and suppliers on a constant basis.
At Merrifield Real Estate we are also big advocates and supporters of our local community, and we regularly give back in a variety of ways. The agency holds a number of different fund-raising events and campaigns during the year to assist with raising awareness and providing financial support to a range of different charities and organisations within Albany. This sort of philanthropic activity will quickly disappear if agents are replaced by large impersonal electronic platforms to complete real estate sales.
As you can hopefully now appreciate, agents bring more to the table than just cold real estate transactions. Many qualities of a fantastic agent cannot be replicated by technology or be outsourced to a computer program. Interestingly, there have actually been an increase in the number of people working in the real estate sales industry across Australia over the last couple of years which is not what you’d expect if agents are expected to become obsolete any time soon. I’m the first to admit that it is a lot easier to find a buyer for a property in WA at the moment, compared to when the market is less buoyant. However, a top-quality agent will know how to extract higher offers and really have a direct impact on maximising the outcome for the Seller.
As soon as the market cools down and it becomes more difficult to source Buyers, I expect there to be some natural attrition play out amongst agents. Agents who don’t possess the experience and skills required to work in a market that isn’t ‘on steroids’, like it has been over the last couple of years, shall struggle to get properties sold and there will be a fair number of salespeople leave the industry as a result.
However, while there are inevitably going to be more changes within the real estate industry to come, I believe that agents will continue to play a key role in to the future, particularly those agents who are honest, ethical, fantastic at communication, provide brilliant service and have the emotional intelligence to effectively deal with the intricacies of human behaviour.
By Lee Stonell – Sales Consultant
At Merrifield’s, we spend every day discussing real estate. Listings, contracts, financing and conveyancing – and the set conditions that go with them – are part of our normal, everyday office talk.
But for most first homebuyers they are new. And maybe even a bit intimidating. Perhaps you are now considering selling your first home, and even though you’ve looked at these contracts before, it feels different on the selling side. It could be your third or fourth time engaging with a real estate agent, and maybe now you feel you can’t ask what the terms mean without sounding silly.
If any of these describe you, or you are simply curious about the lingo, here are some of the commonly used terms and how they might apply, to help you no matter where you are in your real estate journey!
Listing Authority: This is also known as the Selling Agency Agreement, and is the agreement between the you and the Real Estate Agency you have chosen. It outlines the details about the listing (and hopefully sale!) of your property. Things such as the listing price, fee for commission, and the period of the agreement are all included in this paperwork.
Offer and Acceptance: Might sound obvious, but these are steps on the journey to transfer home ownership. Together they form the legal Contract of Sale. This seems simple, but they include many components and there can be some ‘back and forth’ on these steps. A good agent will make sure you are involved, and understand every part of this process.
Vendor: Another name for the person, or organisation that is selling the property. It is not that common, but you will sometimes see that it is a Super fund, Government entity, or Enduring Power of Attorney selling a property. Don’t let that worry you, the contract still works the same.
Buyer: This is the person making an offer to purchase the property. If more than one person is buying, they need to decide if they will be purchasing as Joint Tenants or Tenants in Common.
Joint Tenants means that you are equal co-owners of the property and is commonly used among married or partnered couples. As joint tenants, if one owner dies, the other owner automatically acquires their share of the property.
Tenants in Common allows you to specify each share of the property between the owners, and you can sell or transfer your share as you wish. For example, you could have a 75% share, and your father as the other owner has a 25% share of the property.
Property Chattels and Fixtures: These are the items that will remain at the property after it has sold and settled. Chattels is the term to describe items that are not permanent fixtures, as they could be moved. They are usually large items held in place by their own weight. The most common chattel that we include in a contract of sale is a dishwasher.
Fixtures and fittings are more permanent things like carpet and floor coverings, curtains, blinds and window treatments, light fittings and fixtures, TV aerials just to name a few. If you are selling a property and have any particular items you don’t want to leave behind, make sure to discuss with your Sales Representative to ensure it isn’t included within the Chattels and Fixtures!
Special Conditions and Annexures: If you think of an annexure as an attachment to a document it feels more simple. When writing a contract, annexures are included in the Special Conditions to form part of the contract. This means these extra documents are a legally binding part of the contract.
An annexure that is commonly used is Annexure A, which covers things such as ensuring the Buyer has received a copy of the Certificate of Title, items included in the working order warranty, items that are excluded from the sale, ensuring that the property is compliant with electrical requirements, and many other items.
Finance: Finance means that you are borrowing money to be able to purchase the property. Some options for obtaining finance are a mortgage broker, individual lenders, your bank, and some Government agencies. You will need to nominate a deadline for the finance to be due, usually 30 days from the contract being accepted, and it is helpful if you can specify how much you will be borrowing, and who will be providing the loan.
Conveyancer: A conveyancer is another term for a settlement agent. A settlement agent is a trained professional who assists buyers and sellers in the process of transferring the ownership of land when a property is bought or sold. Settlement date, or the term ‘at settlement’ is simply the date of this legal transfer. Having a trusted settlement agent can be a huge help and remove a lot of stress when buying or selling a property. We work closely with your chosen settlement agent to ensure that all conditions of the sale are met, and that settlement will occur on time and as planned.
These are the main terms I had to learn quickly when I started in real estate. There are many more terms involved in all aspects of real estate, but I hope that these ones have helped you understand some of the language. I hope this will give you a little more confidence for negotiating your next real estate transaction!
By Shantell Anderton – Senior Sales Administrator
There is a lot of commentary at the moment about the ‘housing crisis’ – particularly how it is affecting the rental market. One area of property that is not being widely discussed by the public though, is the State government’s proposed changes to the Residential Tenancies Act. It is not in the current media cycle, though the proposed changes will likely impact further on the rental stock shortage and have potential to make the current situation tougher again.
So, let’s look at a few of the proposed changes. Please note the changes below are not yet legislated but given that the current government holds the upper hand, I am confident the government will be pushing to get them through sooner rather than later.
Some of the proposed changes that may affect investment property owners are:
- Tenants being able to modify the rental property without consent.
- Tenants being able to bring a pet onto the rental property without consent.
- Owners being prevented from terminating a lease ‘without grounds’; and
- Government imposing additional minimum standards on a property before it can be rented; and
- The removal of fixed term tenancies
As you can see, these are quite significant changes to the status quo. As I meet with landlords and investors around town, many I have spoken to are either unaware of these proposed changes or in dismay when they learn more about it. The idea that a tenant can make changes to someone else’s investment or bring pets into the house without any notice to the owners brings with it many questions. How does this affect insurance? Who is then liable should modifications be unsafe? What happens if a dog damages the property and the pet bond (Which is only $260), is insufficient to cover repairs? At the moment, I don’t have answers to those questions.
And I am not alone, nor are the owners I speak with. In January this year the Real Estate Institute of Western Australia (REIWA) sent a survey to investment property owners on this issue. In only two weeks they had received more than 10,000 responses from landlords!! 10,000. Think about surveys that you receive; how many do you reply to? A response like this in such a short timeframe surely indicates the level of concern landlords hold over these changes. Overwhelmingly, landlords were opposed to changes which further shift the balance of the laws in favour of tenants.
81.7% of respondents had not heard the residential tenancies laws were being reviewed.
85.7% of respondents believe the proposed changes increase the riskiness of investing in property.
62.1% of respondents said they would be likely to sell because of the changes, with a further 23.5% undecided.
80% of respondents said they would be unlikely to buy another property because of the changes, and a further 16% were undecided. (Source REIWA, Jan 2022)
The majority of local rental investment properties are owned by small, ‘Mum and Dad’ investors. 80% is the number of mum and dad investors that own 1 property across Australia This perceived increase in the riskiness is not good, even if the risk can be mitigated, as many will simply look to put their investment savings elsewhere. The figures stated above showing the planned mass exit from the investment market could have an enormous impact on rentals locally. When investors leave the market, the houses are most often bought by owner-occupiers – that is, they are no longer available to lease.
We are already in a situation where we are facing a large undersupply of housing available. If these results play out to be true (or even close to accurate) it will lead to less properties being available. In turn this leads to rents increasing further for tenants due to both increased costs to owners, and a further undersupply than present.
In my opinion, a proper conversation needs to be held with all parties, to address these concerns. Pushing through changes as proposed is ill-timed given the current housing situation that we are all experiencing. I encourage further debate and holding off on any changes until everyone is better informed of impacts this will potentially have.
By Jeremy Stewart – Director
The current rental market is insanely busy. We are seeing many more prospective tenants in the market, and this increased demand for properties outstrips what is available across the board. Searching for a new home is always stressful and the shortage of rentals at the moment is making a bad situation worse.
Here at Merrifield Real Estate we want to ease this stress. We hope this information helps you understand the rental process – and by helping you, it helps us match you to a home as quickly as we possibly can.
One of the biggest challenges in the rental market is the application process. It is extensive, requires a lot of information, and can be confusing. Worst though, is the time it takes, and we know it’s time that many of you simply don’t have to spare! So let us share with you our five Hot Tips on how you can put your best foot forward when applying for a rental property.
#1 Hot Tip: Presentation – First Impressions count!
When attending a property viewing be mindful of how you present and handle yourself. Most agents and property owners will be assessing you from this first interaction, including how you act, and what you say and do. Later they will consider how well your application is completed. Be mindful of these things and make sure the impression you give to others is memorable for the right reasons!
#2 Hot Tip: The Application – Get the perfect form in!
Ensure you have fully read the application, including any additional requirements. If your application is not fully complete when you submit it, but we receive 10 others that are, yours won’t be prioritized. Ensuring you provide all the required information means we can start processing the application straight away rather than needing more time to follow you up. The same goes for the ID and income requirements; these are presented to the owner to help them decide if you are the right tenant for their property. Taking the time to do the application well helps save time in the process, for everyone involved.
#3 Hot Tip: References – Choose wisely!
Too often, our time is spent chasing applicant’s referees because they will not answer, or return our calls. Making sure your nominated referees are aware that their details will be provided is critical in the response time. Provide them with our details, and make sure they know to expect a call. We know, ignoring calls from an unknown number is tempting – but this is important. The faster your application is processed, the faster we can present it to the owner. If they miss our call, a quick return call is appreciated.
Employment contact is the same, we need to confirm the information you have supplied is correct and current and that your employment is ongoing. This confirms your ability to afford the property. Ensure your employment references are aware we will be contacting them.
When applying with others (including partners) please ensure you have each listed different personal references. These provide a character reference for you, so the referees need to know you on a personal level: think work colleagues, supervisors, neighbours or friends for example.
#4 Hot Tip: Honesty – it is always the best policy!
When checking through your application we look at everything. We are engaged by the property owner to match them to the best suitable tenant, which means we must scrutinize every piece of information you provide to ensure you are the right tenant for them. If you are not honest when listing information, it will be uncovered. If there is something you think we should know about you, then let us know! If you need to, feel free to add extra information to assist in the processing of your application.
#5 Hot Tip: Speed – delays cost!
Due to the current demand, you simply must work quickly. This means attending the first possible viewing as soon as you can. If you’ve secured a time and cannot attend yourself; don’t cancel! See if a friend can view the rental for you, so that you don’t miss out. We recommend submitting your application no later than 24 hours after viewing the property. Some people wait a week before they submit their application, and after that much time the property is already leased.
We aim to get a response to you within five business days so please be patient with us. We do not make the final decision, that comes down to the property owner who makes it. Some owners like to take a little longer to decide when it comes to their investment but we will always provide you with a response as soon as practicable. Please note though, that due to confidentiality laws we are not able to provide reasons as to why your application has been declined.
Ultimately, the rental market at the moment is extremely tough. Everyone is in need and there is only so many properties available. We understand it’s a stressful situation but with your help, we hope to make this process a little less stressful because lets face it, we all need less stress in our lives!
Written by Lisa Dunham & Liz Duncan
I was recently sitting with a group of people and one of them said “I don’t think I am ever going to be able to afford to buy a property”. This got me thinking about what it takes to be in a position to own your own home, or at least qualify for a mortgage to purchase a property. I am fortunate enough to own my home outright, and I am happy to share how I got to this point in the hope it may inspire or educate.
I certainly haven’t had any money fall in my lap in my lifetime, such as being the beneficiary of a financial gift from a family member or received any kind of inheritance. However, what my family has provided me with is a different kind of a gift – they have instilled in me the value of money and a strong work ethic that has always helped me to achieve my goals, be it monetary or otherwise.
I’ve you’ve ever checked me out on platforms such as LinkedIn or searched for my name in scholarly publications you may already know that I have other qualifications outside of real estate that I gained in my time before entering the real estate industry. If we wind the clock back a little, straight after finishing my secondary education at good old Albany Senior High School I moved to Perth to study at university. I’m proud to say that I’m the first person on both my mum and dad’s side of the family to gain a university degree. In fact, I loved studying so much that I successfully completed three degrees in a relatively short space of time, being in the fields of Biochemistry, Physiology and Nutrition & Food Science, if you are curious to know. Anyone who has ever been a student will tell you that studying does not pay the bills, and so throughout that time of my life I got by mainly by working part time and receiving some assistance from the Government (think Austudy). After gaining my tertiary qualifications, my future was looking bright, and I was anticipating being able to establish a career and become financially independent. Home ownership was certainly on the list of achievements I was hoping to be able to tick off in time. However, things for me came crashing down in my mid-late 20s when I became critically unwell. At that stage I returned home to family support in Albany to fight my illness and thankfully I won the battle after a number of years, but not, unfortunately, without a cost to my future wellbeing.
When I was considered healthy enough to re-enter the workforce, I was very keen to get back on my feet financially and regain my independence so applied for all sorts of different jobs in Albany. However, I was continually knocked back and told it was because I was overqualified, and the employers didn’t think I would stick around. Out of the blue one day I saw an advert in the local newspaper (there were no job seeker websites around in those days) published by a local real estate office looking for a rookie salesperson – someone without prior experience in the industry was preferred. I was certainly a rookie alright! I knew nothing about buying or selling a property and hadn’t ever had a loan. I was also very shy, far from being a social person, and hadn’t made a lot of connections in the community as I was practically new to town after living away from the area since becoming an adult. But I thought I would give it a go, submitted an application, and that was the beginning of a now nearly 18-year stint in the industry.
I have worked very hard in that time and gone through many ups and downs, both personally and professionally. However, after many long days and nights and weekends of commitment to my job, I have managed to earn and save enough money to purchase a few properties, including one for my now ex-partner (!), and am very close to being completely debt free with a healthy superannuation fund before reaching the age of 50. I also supported my current partner financially for many years until his new career became established and worked continuously throughout my pregnancies. After my son was born, I didn’t receive any maternity leave entitlements so I kept working to pay the bills for my family (except for about a 6-week period when I thought I’d try to be a stay-at-home mum but that nearly drove me up the wall so I knew I couldn’t continue with that).
I look back now, and I think that anyone could have been that person 18 years ago who applied for the rookie salesperson position that I did. That was without a doubt the turning point for me which enabled me to create the wealth I now have, as before then I really hadn’t had a chance to spend much time in the workforce. I don’t consider myself to be ‘rich’ like the highflyers around town but I am able to live a comfortable life and I’ve set myself up so I don’t have to worry about what age I can retire. Now that I am at this point in my life, I have set some new goals that involve me being able to give back to the community that I live in and I’m excited at the prospect of being able to turn those ideas in to a reality.
In reflecting about what it took for me to be able to afford my own home, it’s quite funny that the answer was getting a job in the real estate industry. However, this is just my story and there are many other different paths people can take to achieve their home ownership goals. I hope, though, that you can appreciate that with some smart, sometimes bold choices, an intrinsic fight inside you that keeps you pushing on even when the going gets tough, a commitment to self-improvement and many hours of hard work and sacrifice, what seems the impossible can become possible.
By Lee Stonell – Sales Consultant
It’s time to make a confession. I had worked in Property Management or related assistant roles – for over a decade when I applied for my role at Merrifield Real Estate – and I didn’t really understand what I was applying for in their Strata Management department. In fact, even after landing the role and spending a full 12 months shadowing their Strata Manager learning the ropes, it was still another year or so before I truly felt comfortable in explaining what Strata Management actually is!
It is a theme that I notice a lot as a Strata Manager. When I’m with my friends and family, meeting new people at a BBQ, or sitting with other parents as I watch my boys play sport, I am often met with a fearful look when I answer what I do for work. “Strata? Isn’t that really complicated?” often it’s “I have heard that’s always dealing with petty disputes over driveways!” or “We looked at a unit once but it was the strata costs that made us back away.” And yes, it can be complicated, it is sometimes dealing with disputes and there are costs involved, but it is a lot more than that too.
The word ‘strata’ comes from the Latin stratum, which means something that is laid down, or spread out. So, if you think about a block of apartments (which stack in layers) you can see how strata came to be used in language around buildings, and then into property law. Basically though, if there is a group of buildings containing common property then they fall into the strata category.
Now, there isn’t tons of high-rise buildings in Albany with apartments stacked in layers, I know. But if you take a look as you drive around town, you will start to see how many multi-unit sites there are in residential areas. And it’s not just residential. Lots of our town’s commercial spaces are also strata lots, and these buildings require different management to a stand-alone house or business.
In a strata complex, the Strata Company collects levies from each individual owner to cover the shared costs relating to the building complex. This includes insurance for all buildings, and maintenance expenses for shared items like plumbing, roofing, driveways and so on – considered each year in the company budget, from which levies are calculated. These companies can be small, and able to be managed without appointing a manager like myself. Others though, can contain dozens of units and dozens of individual owners, and this is where we come in.
Appointing a Strata Manager takes the stress out of ownership. We are here to help owners manage their buildings. Often it is simply acting as a go-between for owners, working hard to keep multiple owners as happy as we can. Ok, so I make that sound simple but believe me – it is a developed skill to be able to communicate and negotiate with up to 50 owners in one strata company!
I now understand why it is a stand-alone department within Merrifield’s! There is definitely a lot of work to be done.
What I love the most though, is that the main aims from my Property Management years have transferred across. I am here to help owners maintain value in their home, or to help them protect their investment property. I enjoy this – I have a great support team in the office and in our sub-contractors – and I love knowing that I’m removing the stress of strata ownership for my clients.
So, there it is. Strata does not need to be as difficult, or scary as it first seems. There are actually so many positives to this type of property, especially when it is managed well!
By Selena Taylor – Strata Manager
A common question I regularly get asked is what I think will happen in the next 12 months with the property market. While I’m not in the habit of making big bold predictions here’s some food for thought. So, here’s my top 5 predictions for 2022.
Migration Trends – Covid-19 has highlighted to people that they have the ability to work remotely. It has also allowed people to re-evaluate their priorities and where they most feel safe and secure. This has led to a huge net migration out of metropolitan cities and into regional areas right across Australia. And Albany is no different where approximately 60% plus of buyers I’m selling property too are outside of the Great Southern and mainly from Perth. With a wonderful lifestyle, moderate climate, huge amount of job prospects and many more reasons to live here, expect this trend to continue and Albany’s population increase quickly. We may well hit the 50,000 target by 2030 that our Mayor talks about.
Interest rates – While we’ve had the lowest interest rates on records, it’s going to start heading upwards earlier than people think so it might be worth going hard to pay down debt while rates are low. Inflation figures just released are at 3.5% in Australia and across the world in most countries it’s high or heading that direction. Banks have already been for some time lifting fixed rates for the last 18 months and while the reserve bank have backed themselves into a corner by publicly stating they won’t adjust rates till 2024, they may well have humble egg on their face and have to lift them sooner. The USA has inflation at 6.9% and you can sure bet when the Fed meet over the next month or so the rate will increase. Being Australia generally follows other trends, I expect this to happen. Don’t be surprised if banks lift variable rates out of cycle and certainly by mid-year. You only need to go to the supermarket, look at the cost of materials and building, cost of fuel as examples of rising costs which all lead to higher inflation which isn’t under control no matter how much spin some media outlets put on it.
Building and Construction Pressures – Shortage of trades, labour and materials will have a knock-on effect. Some builders I have spoken with have seen 70% rises in these items since the start of 2021. And of course, the end consumer is lumped with having to absorb the costs. These items will continue to increase and I’m not expecting that to change this year as the delays to build continue to blow out expectations for people building. Many people I have spoken too that are building have confirmed this.
Rental crisis – With vacancy rates at record lows not only in Albany but across the nation this will continue. There simply aren’t enough houses for the demand. Air BnB has taken up some stock, landlords have sold properties as part of succession planning, reducing debt and because tenancy laws don’t reflect a neutral position for all parties. If proposed changes to the Residential Tenancy Act go through, then based on a recent REIWA survey 62.1% of landlords said they would sell up. Over 10,000 people completed this survey in a 2-week period. If that’s not a clear message, nothing is. If the changes happen then that’s only going to lead to higher rents and lower stock. So, Albany and the Great Southern will be significantly affected. With currently over 430 people on government housing waiting lists let alone the private sector waiting lists, this problem isn’t going away soon and will take some time to sort out. Our region is no exception.
Covid-19 – This is the real wildcard. It’s a moving beast and the reality is no one knows what will happen, when and if borders come down and what affects that will have. Remember all the economists are predicting property prices to drop up to 30% – 40% in April 2020? ( Maybe we should list them who got this so wrong to stir the pot ). Well the opposite has happened right across the country and also in a lot of overseas markets as well where double digit rises have happened. While we are somewhat isolated, and with strong demand here in Albany, I expect to see property prices to continue in a growth pattern for this year. That could well change quickly because covid-19 is something no one has experienced before and with different variants all the time, it’s anyone’s guess.
So hopefully I’ve given you something to ponder about as your flick through your social media channels or while you’re having a chat with your partner. Please note the above is the opinion of the author only and should not be deemed to be advice. We advise to seek independent advice when making property decisions.
By Jeremy Stewart – Director
As we approach the end of another year, I hear you say to yourself where did the last 12 months go! And what a crazy 12 months we’ve had in real estate and across the world. The thing about the end of the year is that it gives you a chance to clear your head, review the year just gone and then plan your goals for the next 12 months. Part of that planning maybe around your lifestyle, job, location, kids and current living arrangements. With property a key element in all of that, what’s your priority? Are you considering upgrading or downsizing your home, taking on a renovation, buying an investment property or buying some land and building? Or are you looking to sell & capitalise on the strong real estate market? If so, what do you do with the funds after you’ve sold and hopefully paid out debts? Are you a tenant and worried about long term longevity of leasing, especially in the current rental market, or do you save up for a deposit to buy a property? Can you afford a property in a rising market?
There are a million questions from every angle you take no matter what position you’re in or stage of life you’re at. And while it might seem overwhelming, what you need to do is actually start writing things down. “So where do I start?” you say because quite often the first step is the hardest. First thing to remember is there is no right way or wrong way to go about it nor does anyone have a crystal ball (i.e. remember all the economists predicting 30 – 40% declined property values in April/May 2020 and now look what’s happened? The complete opposite as the market has gone the other way with everything going up). So start by sitting down and grabbing a pen and paper and writing it all down. It’s proven that people who have written goals have a lot higher chance for them to materialise than not, so what’s the harm in doing this. And if you’re struggling with this concept, then there’s plenty of material online that you can google that helps or you can seek further professional advice if you really want to get into the nitty gritty.
Work out what’s important to you and those around you. Only you know the answer to this. It may also help talking to a close confidante if you’re particularly stuck on some aspect. Everyone has different priorities but only you know the direction you want to take. You don’t just wake up one day and think I’ll sell up and move up north or to Perth or over east. It takes time & planning for things to come to fruition and the new year is a great time to put some thought into this. With these Covid times having a plan or contingency is a wise move. Someone I follow that has some great thoughts and wisdom in this space is The Barefoot Investor ( p.s. his books are fantastic Christmas Gifts in case you need to find a last minute gift for someone!) You may like to have a read because there are some real practical common sense approaches that he suggests, and it’s an easy read for all ages.
I’ll admit this approach isn’t for everyone, however many people I speak with that are doing well have good solid plans in place to flourish. And to finish with a great quote that I see “ Failing to plan is planning to fail “. Something to ponder over the new year. Good luck in 2022 and may your year be prosperous.
By Jeremy Stewart – Director
I read a short story a while ago that has really stuck with me because it resonates with situations I come across in my work. There are various versions of this tale in existence but please take a moment to read this one:
A giant ship engine failed. The ship’s owners spoke to several engineers but none of them could figure out how to fix the engine. Someone recommended they get in an old man who was known to have been fixing engines since he was young. The old man agreed to help and arrived with a large bag of tools. He immediately went to work and first inspected the engine very carefully from top to bottom. Two of the ship’s owners were there, watching this man, hoping he would know what to do. After looking things over, the man reached into his bag and pulled out a small hammer. He gently tapped something. Instantly, the engine sprung back into life. He then carefully put his hammer away. The engine was fixed!
A week later, the owners received a bill from the old man for $10,000. “What?!” the owners exclaimed, “he hardly did anything!” So, they wrote a note to the old man asking for an itemised bill.
This is the breakdown of the bill they received back from the old man:
Tapping with a hammer………. $2.00
Knowing where to tap…………. $9,998.00
This story teaches us that there is value in someone truly knowing how to do a job and being an expert in their field. It also tells us that while effort is important, having the experience to know where to apply the effort makes all the difference.
Next time you use the services of a professional, be it a doctor, lawyer, consultant or even real estate agent, it is worth considering the years of training and ‘practice’ they have under their belt and how refined their skills are to be able to give you best result you could hope for. It may appear as though they haven’t had to do much for the fee, they charge but a specialist in their field will always make a job look easy because they know precisely how to respond to and efficiently deal with situations that present in their workplace environment.
Next time you are choosing a service provider in any industry my advice is to make sure you do your “homework” first. Don’t just focus on what they charge, but also give serious consideration as to how well they perform their role. If someone can’t prove the value, they bring to what they do then you are probably not talking to the best person for the job.
By Lee Stonell
It’s well documented in just about every media publication that property prices have increased both state wide and nationally in 2021, with predictions of further increases for 2022. It does however present a number of challenges for the consumer. With stock levels low there are still people that would like to sell, however the issue those sellers face is the majority need to go into another property and they too are confronted with very little selection. And for those sellers to buy as a subject sale, they don’t stand a chance especially with the amount of pre-approved finance buyers and cash buyers currently in the market. So those potential sellers are staying put, but caught in a difficult situation around the process of selling. So that’s obstacle one.
Another challenge for sellers is around pricing. There can be some wild ranges of pricing from agents to the point where I’ve heard first hand of agents just pricing any old figure, just to secure the listing because they have no stock. This is not in anyone’s best interest as they are not taking into account comparative sales because either there isn’t any or that the sales range is expansive. It’s also confusing for some sellers as well because agents have access to the same sales information & data.
We’re also seeing a number of landlords sell properties being they either purchased in a softer market and are trying to recoup some of the value of the property or are in the process of moving to retirement or succession planning and want to offload their asset. With landlords selling, there are generally tenants involved which can cause high emotions because if the buyer isn’t an investor then the buyer may want vacant possession. And for that to be achieved the tenants have to find another property (making sure they are given the correct notices in accordance with the Residential Tenancies Act) which isn’t an easy task when there are very limited properties available to rent (only 15 houses available for lease in Albany at the time of writing this article) and when there are massive amounts of people viewing property and putting in rental applications.
You’ve then got those clients that are wanting to build. With majority of the suburban blocks sold and being built on due to the government grants in 2020 there are massive wait times to secure builders. In Albany, for example, we’ve gone from under 150 residential approvals for the 2018/19 financial year to over 350 approvals for the 2019/20 year. Also, if the building timelines aren’t enough of a stumbling block, then the severe increases in costs of materials and the cost of building is providing a lot of frustrations. It’s not uncommon to hear that builders won’t allow fixed priced contracts, and to pass on cost increases on short notice that are out of their control. That is also not taking into account the shipping delays and slow processing at ports.
Buyers, of course, are having their own difficulties in securing a property. And apart from the lack of available listings for consideration they are competing with multiple offers, and in most cases not even getting a look at it before it hits online.
A tip for buyers reading this article. If you want to know what’s coming onto the market before it goes online, register your details with your requirements with an agent so you are on their radar.
So while the property market is strong, it’s also worth remembering that sellers, buyers, landlords & tenants have a lot of the above challenges plus a lot more not mentioned on a variety of levels, and that some of those aren’t going to go away anytime soon. Lots of patience & understanding is required for everyone involved which isn’t always easy, but is necessary in the current environment. And that’s all industries, not just real estate.
By Jeremy Stewart
Director
A DAY IN THE LIFE OF A SALES ADMINISTRATOR
Have you ever wondered what a day in the real estate industry might look like? Have you been pondering a career change and thought that real estate might be what you want to do?
After a long career in medical administration, joining the real estate industry has been a change of pace that I have thoroughly enjoyed. Each day is different, and you can never plan what the day is going to hold. Are we going to sell 3 properties today? Maybe we will have some new listings come to market! Perhaps a timber pest report comes back with significant findings, and we need to come up with some solutions to get the deal across the line.
Some days you are at your desk for the day, others we might get to spend the day out and about drawing floor plans, seeing new properties, and other odd jobs. We liaise with settlement agents, banks, buyers, sellers, other agents, and so many more wonderful people. Some people are local, some interstate, and the odd ones are even international!
It is incredibly satisfying to assist someone buy or sell their home, usually the biggest investment of their lives! Any way that we can help to make this process easier, we are always looking for ways to help our clients achieve the best outcomes with the least amount of stress and worry.
No matter what the day brings, the best part of working in real estate, and especially at Merrifield, is the bond and friendships formed within the team. It doesn’t matter what department, whether it be commercial, strata, rentals, sales – everyone pitches in and helps out to get things done. The cohesiveness of the team here is amazing, and it makes it a pleasure to come to work each day.
If you have been thinking about a career change, I would not hesitate to recommend looking further into the real estate industry!
By Shantell Anderton – Sales Administrator
