Insights
Why do house prices seem to appreciate faster than units?
"Without doubt, the quarter acre block, your own piece of land, your 'castle' if you will, is indelibly imprinted in the psyche of Australians," Ray Ellis told Savings.com.au.
What are the benefits and drawbacks of buying at auction?
Read full article by Harrison Astbury here:
"One of the greatest advantages of buying at auction is the certainty that when the gavel falls, the property is yours," Mr Ellis told Savings.com.au.
"Compared to private treaty negotiations, there’s no risk of a last-minute buyer making the agent a higher offer before contracts have been exchanged.
"Another benefit is that you get to see what everybody in the market thinks the property is worth. Whether that works in your favour or not, you are not left in doubt as to whether you offered the vendor significantly more than anybody else has been prepared to pay.
"This is where the transparency of open competition provides both vendor and buyer with clarity.
"One of the great lessons from COVID is that, once again, Australians have fallen in love with their home. It doesn’t matter whether it is an acreage property, house or unit, our fascination is unique in the world. As a result – the price we can obtain in selling our castle is a national sport."
Ray Ellis, CEO, First National Real Estate
Nine out of 10 Australians have sold their house for a profit in 2021
25th June, 2021
Ray Ellis speaks to Sue Williams, Domain Reporter.
Nine out of every 10 Australians who sold their homes in the first part of the year made a profit, bringing them in a stunning $30.6 billion in extra cash, a new report has revealed.
The big winners were owner-occupiers of houses, particularly in regional Australia, while investors tended to make slimmer gains, and nearly a fifth of apartment-owners made a loss on their properties – almost two and a half times the rate of houses that didn’t sell for a profit.
For the CoreLogic report, researchers analysed about 98,000 resales across the country from the March 2021 quarter, a period that was buoyed by an 8.1 per cent rise in national housing values from September 2020 to the end of March 2021.
“The total profit reaped by sellers in the first quarter of 2021 was $30.6 billion nationally,” said Eliza Owen, head of research for Australia at CoreLogic. “This is actually down from $32.2 billion in the December quarter, but that is likely a reflection of seasonally lower sales activity through the start of the year.
“March 2021 also marked the fourth consecutive quarter where regional Australian resales sustained a higher rate of profitability than in the capital city markets — 90.6 per cent of regional resales saw a profit through the quarter, compared with 90 per cent of capital city sales.”
That gap in the rate of profit seen between capital cities and regions has narrowed, however, with capital-city growth rising to closer to regional rates through April and May.
The surprise high level of profitable resales has been welcomed by the real estate industry, with agents feeling it may well encourage home-owners to enter the market and boost the low level of supply.
“That does mean a lot of motivation for potential vendors to come in and look at the market, and I think that’s great,” said Richardson & Wrench managing director Andrew Cocks. “It certainly will encourage people to sell.
“But, there’s still an element of uncertainty in the market that’s demonstrated by the number of listings that are still below historic numbers. While interest rates are still so low, there are other hurdles, like the number of sellers who are putting their prices up and up too high and buyers dropping out, particularly at the lower end, because they can’t compete.”
First National Real Estate CEO Ray Ellis has also greeted the report’s findings with enthusiasm. He believes that Australians has a passion for property that’s unparalleled in the rest of the world, and this latest result has underlined their belief in how powerful it is as an agent for wealth creation.
“The report has identified how Australians, during COVID-19 times, fell in love with their homes all over again as they’ve become their playgrounds, their holiday destinations, their office, and their games room, as well as somewhere to live,” he said.
But while there’s a lot of demand now to downsize, upsize, relocate or get into the market for the first time, with finance so cheap, there’s not enough property to buy, and people traditionally want to buy before they sell.
“So, hopefully people are realising that now is the perfect time to sell, with our average days on market shrinking from 25-35 days down to three to 10 days, and bridging finance so cheap and back in vogue.”
The CoreLogic report found only 6.8 per cent of houses sold at a loss, compared with 16.8 per cent of units being sold for less than for what they were originally bought. The 90.3 per cent that sold for a profit was up on the 89.1 per cent that did so in the previous quarter, while homes in regional Australia sold for a profit for the fifth consecutive quarter.
Sea change and tree change markets performed strongly, with Victoria’s Ballarat recording a 99.5 per cent profitable sales rate, while Melbourne CBD units had the highest rate of loss. Resource-based housing markets in Western Australia and the Northern Territory, meanwhile, experienced a sharp fall in loss-making sales.
“This result, showing so many profitable resales nationwide, is obviously not surprising given that prices have risen so strongly in cities and regional markets, with high demand and quite low stock levels,” said Adrian Kelly, national president of the ReaI Estate Institute of Australia.
“But, I’m hoping this spring we might see extra stock come to the market, particularly in regional areas which will help the market become more balanced, which it clearly at the moment isn’t at all.”
Add value to your home in 2021
21st June, 2021
Read full article here:
https://www.finder.com.au/add-value-to-your-home-in-2021
Install solar panels
Solar panels are becoming increasingly popular with buyers who know they'll benefit from green energy and far cheaper electricity bills. In fact, Origin Energy surveyed over 1,000 Australians and found 77% valued a home higher if it was installed with solar panels.
"Solar panels do indeed add value to a home – even more so if they have a battery storage system," said Ray Ellis, chief executive of First National Real Estate.
"It is definitely becoming more common and statistics are showing Australians are adding solar to their rooftops at some of the fastest rates in the world," he told Finder.
With government rebates available to many buyers, the average solar panel installation might not be as expensive as you think. Plus, international studies show it could add thousands of dollars to the value of your home.
Consider heating and cooling systems
Once a luxury, heating and cooling systems are gradually moving into must-have territory for many homebuyers.
"Air conditioning and heating units are absolutely desirable – reverse-cycle air conditioning is considered the most efficient in hotter climates whereas in cooler climates gas systems are considered the best and do add value to a property both in sale and rental," said real estate exec Ray Ellis.
"We are finding particularly in Victoria there are mandatory requirements to add energy-efficient heating with other states likely to follow suit soon," he told Finder.
How this CEO, Ray Ellis made it through COVID-19
May 20, 2021, REB - realestatebusinessonline.com.au
Addressing network members at the network’s Canberra Convention 2021, First National Real Estate’s CEO said “when the tide goes out, you get to see who’s been swimming naked”.
Reflecting on how the real estate group made it through the period of uncertainty for the first time since the event, Mr Ellis said leadership is easy when the tide is high and all is going well.
Noting 2020 and the COVID-19 pandemic as the exact opposite of going well, he took the time to laud the “talented” board of directors he said espouse “the strength of First National”.
“Leaders throughout Australia, our governments, businesses and personal lives each had their moment to either shine or be exposed,” he began.
“The best example of being exposed was Virgin Australia. The airline failed to address weaknesses in its balance sheet and strategy for several years. By April 2020, it was bankrupt.”
While acknowledging that certainty was taken away from the First National group last March, Mr Ellis said “what we needed was clarity, not certainty”.
“We had a plan: improve our members’ businesses, save the network and emerge stronger. There was no confusion,” he said.
Highlighting that he met with board members “virtually, daily”, the CEO said decisions were made quickly, without listening to noise or panic.
“That is what is called a moment of truth,” Mr Ellis considered, flagging that, together, the board and chief executive made a number of big calls early in the pandemic.
He outlined: “We committed our national performance manager, Ted Piteo, to Zoom meetings that focused on our individual members’ balance sheets and cash positions, to assure that clear decision-making was being made and government financial support was being accessed.”
Elsewhere, chief operations officer Ed Atkinson “was directed to assure the digital tools members needed to market our brand, products and services — without open homes — were being fully implemented”.
According to Mr Ellis, “this is where the network’s heavy investment over the five previous years succeeded brilliantly”.
At the same time, First National’s chief communications officer, Stewart Bunn, was tasked with “assuring members received detailed operational protocols and explanations of government policy in plain English”.
The CEO added that the team worked “hand in hand” with their business growth managers “24/7 to assure our members received information before anyone else in the industry”.
“Other networks were sharing our material — again, clarity over certainty,” reflected the CEO in front of the sold-out convention crowd.
Another measure used to combat the crisis was the targeting of a “business blitz” program.
Mr Ellis said this saw heavy investment into members’ businesses for upgrades around technology, shopfronts, marketing and advertising — of which 83 per cent of members participated within.
Continuing, the CEO expressed that COVID had “provided networks and agency owners many opportunities, which they were derelict in their duty as principals and professionals if they didn’t take”.
“The trauma of 2020 gave the opportunity to you, your business and your teams to rise and shine, and this was evident throughout most of our agencies throughout Australia and New Zealand,” he said.
“You navigated the financial distress caused for commercial and residential tenants, and this was under great duress as the Mandatory Code of Conduct was not regulated consistently across the states.”
Now, Mr Ellis believes it’s “not the time to lose concentration”.
He urged network members to take the time to “reset your business and prepare for the future”.
How to become a real estate ‘influencer’. Tips from Ray Ellis.
Read full article on realestate.com.au here
Ray Ellis, chief executive of First National, the third biggest real estate group in the Australia, says those interested in buying or selling should be looking to use these perhaps never-before-seen conditions to make their property dreams comes true.
Victoria's Real Estate Industry can continue to boom with slight regulation relaxation.
First National Real Estate CEO Ray Ellis says there is a campaign calling for the slight relaxation of the regulations to allow one-on-one house inspections, which will allow the industry "to continue to boom here in Victoria".
Millennial first home buyers urged to buy now
Millennials and younger first home buyers may not yet have seen the urgency but First National Real Estate’s chief executive Ray Ellis is urging them to get off the sidelines and seize their opportunity to buy now before the Morrison Government’s First Home Loan Deposit Scheme takes effect on 1 January 2020.
“We have record low interest rates and more cuts on the way, APRA has reduced serviceability buffers, there are substantial stamp duty concessions available, and the federal government’s 5% deposit scheme is just months away from implementation” says First National Real Estate’s chief executive, Ray Ellis.
COVID-19 crisis leads borrowers back to the big four banks
June 19 2020
Borrowers displayed a clear preference for the big banks during the coronavirus pandemic, with the proportion of home loans with the four major lenders rising sharply.New research shows 38 per cent of home loan platform Lendi’s customers chose a big four bank for their mortgage between March 1 and May 31. For the 12 months to the end of February, this figure was just 16 per cent.
The research drew on data from 12,500 loan submissions made between March and May, across 38 lenders.
The swing to the big four – ANZ, CBA, NAB and Westpac – is even more pronounced when it comes to refinancing.
Almost half (48 per cent) of all borrowers refinancing their loans across this period chose to do so with a major bank, compared to just 14 per cent of borrowers in the 12 months before the pandemic.
Lendi co-founder and managing director David Hyman said price rather than security had driven this trend.
“Banks started to fight it out on the refinance front as new lending started to contract, by offering generous cash-back incentives and record low fixed rates to win customers,” Hyman says.
“Mortgage holders looking to shore up their position and reduce their outgoings jumped on these refinance deals.”
Unsurprisingly, the surge in demand has had a flow-on effect to customer service levels, with Lendi’s research showing loan processing times have blown out at some of the bigger banks.
“In some cases, this meant borrowers missed out on securing the low rate they applied for – not a good customer outcome – due to no fault of their own,” Hyman says.
Coronavirus: Estate agents shun open-for-inspections in favour of private tours
Read full domain.com.au article here
Handshakes are in the crosshairs, even for a traditionally relationship-driven industry.
First National chief executive Ray Ellis counsels staff not to put their hand out to shake with clients, but instead to give them the opportunity to offer their hand.
Amid the panic buying that has stripped supermarket shelves of toilet paper, he has encountered toilet paper thieves at open homes.
“We always tell people, put your watches away, put your jewellery away [when your home is open for inspection],” he said.
“We’re asking the people that are displaying their home to hide all their valuables, particularly their toilet paper.”
His offices were increasingly asking visitors to take off their shoes, he said, while staff were cleaning auction paddles before handing them out. He suggested spraying homes so they smelled extra-clean before visitors arrive.
Ray White managing director Dan White has his team wiping down all the door handles before visitors arrive at a home, and displaying signs asking people who have been in restricted countries not to attend.
“Other than that, we’re open for business,” he said. “We’re ensuring we’re providing the safest possible environment.”
Australian housing: The changing factors that are producing a good property market environment
Read full article on realestate.com.au here
Changing factors are producing a good property market environment, according to First National Real Estate CEO Ray Ellis.
Australian housing: The changing factors that are producing a good property market environment
According to First National Real Estate CEO Ray Ellis, there are several vital signals pointing to improved market conditions.
House flipping isn’t as easy as it looks but there is a way to perfect it
Read full article on realestate.com.au here
First National CEO Ray Ellis says house flippers need to be very disciplined.
Support for Kids with Disabilities & Financial Disadvantage Extended Three Years
Read full First National blog here
‘First National’s members have supported the communities in which they live and work for nearly four decades through a wide range of sponsorships. Postie Bike Dash dovetails perfectly with our national sponsorship of Kids Helpline, the 24/7 support hotline for kids between 5 and 25 years of age’ said First National’s chief executive, Ray Ellis.
Could the property market rebound by spring? Here’s where will fare the best
April 10 2020
Property experts are cautiously optimistic of a rebound in the market for the spring selling season, as long as the coronavirus outbreak is under control and consumer confidence levels rebound.But the experts note that a recovery won’t be uniform across the market, with certain pockets faring better than others.
Domain economist Trent Wiltshire says property prices have held up reasonably well so far considering the effect of the pandemic on the market and the dismal economic outlook.
“So far there has been a bigger impact on the number of properties transacted than on property prices. But we could see things start to slow from here.”
Wiltshire says banks’ commitment to allow people to defer their mortgage payments for six months, record low interest rates and the federal government’s JobSeeker stimulus package should also help support the residential property market.
“Few people will be forced to sell even if there is a deep recession. But if the downturn lasts for 12 to 18 months we could see forced sellers.”
First National Real Estate chief executive Ray Ellis says the longer it takes to contain COVID-19, the greater the impact on the property sector.
“But early signs indicate government initiatives are slowing the spread of the coronavirus, so it’s possible the market will begin to recover in spring, following lower stock levels and softer results during autumn and winter,” says Ellis, who believes other factors will also moderate the impact the virus has on property prices.
“Housing values are likely to be somewhat insulated considering unprecedented government stimulus, leniency from lenders for distressed borrowers and record low interest rates,” he adds.
State of the market
Ellis says the premium end of the market has been the hardest hit so far.
“This sector always demonstrates the most price elasticity,” he said.”It led gains through the first quarter – now it’s showing the fastest decline in growth rates. More affordable price ranges will be less affected.”
Wiltshire agrees. “Higher priced areas tend to be more volatile in a downturn and they also tend to rebound faster. But this situation is so different it’s hard to say whether this will be the case this time.”
Nevertheless, Ellis believes the property market will continue to slow while consumer confidence levels remain muted. “Although low interest rates and the likelihood of low stock levels could underpin and slow declines in values.”
Seven News Young Achiever Awards Finalists 2019
First National’s chief executive, Ray Ellis says his network’s sponsorship of youth, innovation and leadership has delivered recognition and support to some of Australia’s finest young achievers over the past six years.
“Our support of the Young Achiever Awards has assisted young Australians as they work to help young women become future leaders, advanced the cause of suicide prevention, supported animal rights, promoted tolerance, supported young people with degenerative diseases, connected women with legal advice and business coaching, reduced homelessness, and alleviated poverty” said Mr Ellis.
First National Returns To Willunga
‘First National Real Estate has maintained a strong presence throughout the wine regions of The Fleurieu Peninsula for many years so our return to Willunga was always going to happen quickly’ said First National chief executive Ray Ellis.
‘Ross and Debbie have built a loyal customer base over many years and are a natural fit for First National Real Estate. They are excited about leveraging our leading edge marketing technologies, human resources services, and accelerating the growth of their business. We are committed to helping them achieve that aim.’