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Calling Overseas Investors	17 November 2008	0	View
The opportunity for overseas buyers to buy well has increased in recent times. REIWA figures indicate that the number properties on the market in the western suburbs has increased by 79% over the past 12 months. Conversely, the number of sales per quarter has decreased. In fact, there were only 14 sales in Cottesloe for the three months from July to September 2008 - down from 52 in 2007! With the fall in the Australian dollar, buying opportunities in the western suburbs have become even more attractive to overseas investors. In July, the Australian dollar reached a high of 98.49 cents. In recent weeks, the price has been fluctuating at 30-35 per cent less in the range of 62-68 cents. What this means is that assuming, an overseas currency has remained steady, property prices for the overseas investors are now considerably cheaper than what they were 12 months ago. So, if you know anyone living and working overseas – now might be a great time to alert them to real estate in the Western Suburbs of Perth – the best place to live in world and now at a far more affordable price.

Putting the Doom and Gloom of October 2008 in Perspective	24 October 2008	0	View
Yes - there is a down turn in the market at the moment. Properties are taking longer to sell. And most are selling below asking price – some considerably so. Everyday we hear the media forecasting doom and gloom – the end for a lot of real estate agencies in Western Australia. They may be right. The thing to remember in this changing market is that real estate is not about numbers – it’s about people. People will still need to upsize, downsize and move sideways. They’ll still yearn for the home of their dreams. We’ll be there for them when they do. Jamie Harrington Director Altus Real Estate

Greed is Good - Not!	23 October 2008	0	View
When Michael Douglas’s character made this quip in the 1988 film Wall Street, he probably did not realise that it would become one of the most memorable lines ever to come out of Hollywood. Twenty years on, it seems just as relevant today as it did then. I work in an industry that has a tendency to operate on greed. Not for everyone – but for some. The funny thing is that even though it is an important part of the psyche which makes the “real estate wheel” turn – it is also the factor that most often prevents it from moving. This paradox has never been borne out more than over the past few weeks as I reflected on the events that have led to the downturn in the world economy. It was greed that was the driving force behind millions of Americans to enter the real estate market between 2003 and 2005. It was greed that inspired the American Banking executives to offer loans to these people – when their capacity to repay the loans was always going to be tenuous. Greed is also the problem getting in the way of our own levelling market in WA. Owners have not heard that the market has slowed and are holding out for the growth and prices of 12-18 months ago. Such attitudes invariably get in the way of the negotiation process, and lead to properties still being on the market several months later. Buyer greed has also played a role in the present state of affairs. Ridiculous offers, very often kill negotiation before it even begins. What is required in this present market is a level head. If you want to sell, recognise that there is a lot of choice on the market for buyers and make your home as attractive as it can be – both in terms of presentation and price. If you want to buy – don’t start hundreds of thousands under the mark. Make an offer that says that “I am genuinely am interested in purchasing this home from you” – let’s do a deal. Jamie Harrington Director Altus Real Estate

Will You Make This Mistake When You Sell Your Home?	13 October 2008	0	View
You're buying a car. You decide to buy it privately and conduct your research accordingly. After searching through the newspapers and on the internet for weeks, you find that most of the cars that you are interested in are priced in the $14,000 to $17,000 bracket. You're buying a car. You decide to buy it privately and conduct your research accordingly. After searching through the newspapers and on the internet for weeks, you find that most of the cars that you are interested in are priced in the $14,000 to $17,000 bracket. You also find a car locally that matches your needs - but it has no price. You pay the guy selling that car a visit. You like it. It ticks all of the boxes. You ask the price. “It’s $20,000” he tells you. “It’s $20,000 because I’ve booked a holiday with my wife to Bali and we want to pay for it with the money we get for the car.” You look perplexed. This does not add up. How can the guy be factoring the price of his holiday into the sale price for the car? Surprisingly, we encounter this sort of rationale quite often in real estate. Occasionally, people will refer to what they hope to do with the money – buy a car and so forth. Mostly though, people explain that they can’t accept this amount or that amount because they have spent so many dollars on the new bathroom, the new roof or the new kitchen. In other words, in their minds, cost must equal value. Would you pay the $20,000 for the car in the above example? I wouldn’t. The reason is simple. It doesn’t matter what the guy wants; what matters to me as a buyer is what I think the car is worth. And how do I make that decision? By comparing it to what else I can get for my money. As sellers, it is very easy to lose sight of the fact that buyers do their homework before they buy property. If you price your property according to your needs instead of comparative market value, the chances are that it will still be sitting there long after the genuine buyers have gone. Jamie Harrington (Director, Altus Real Estate)

Why I love Living in the Western Suburbs	03 October 2008	0	View
It’s not hard to love the western suburbs of Perth. The area takes in suburbs that collectively form a triangle running from Mosman Park along the river to the city and out to City Beach. As a father of three teenagers, two of which whom attend private schools, I have been fortunate to live in the area. My two attend Scotch College (Uniting) for boys and St Hildas Anglican School for Girls respectively. Both are great schools. They could have conceivably gone to any one of a number in the area though. Christchurch Grammar School for boys is just a “hop step and a jump” from Scotch. Iona (Catholic), Presbyterian Ladies College and Methodist Ladies College are all very close to St Hildas. Should we have elected to send our kids to a co-educational school – John 23rd College (Catholic) is based in Mount Claremont while Shenton College, a public school, is situated in Shenton Park. Aside from secondary education, the Western Suburbs also offers the advantage of housing the University of Western Australia. UWA, one of Western Australia’s most picturesque establishments, is situated in Nedlands, and is relatively easy to reach via public transport from any of the other western suburbs. Lifestyle is the major attraction for people in the area. No matter what suburb you live in, you’re never that far from a stunning beach or a relaxing walk along the river’s edge. Invariably, your also close to a large oval or two where you can kick a football, throw a Frisbee with the kids or, take the dog for nice long walk. There’s an array of sporting clubs in the area including surf life-saving, football, cricket, golf, tennis, rugby, bowls, hockey and netball and sailing. The hard thing for our kids has been choosing which sport to play. Shopping in the western suburbs tends to take place at one of several shopping precincts. Floreat Forum and the Grove Plaza are the most "traditional" of the centres in terms of layout. Neither are particularly large - but they do offer an undercover "mall feel" that is typical of some of the major centres in Perth such as Karrinyup, Garden City and Galleria. The western suburbs has several shopping areas that are best described as "strips" and are typically serviced by independent retailers, coffee shops and restaurants. This makes the western suburbs great for catching up with friends. Go down the main streets of these suburbs any Friday or Saturday night and chances are that you’ll see people - young and old - out enjoying themselves. In this sense thay are "mini-versions" of what people might have experience in Lygon Street in Melbourne or Rundle Street in Adelaide. David Fear (Director, Altus Real Estate )

Why is Now A Good Time To Buy Real Estate	03 October 2008	0	View
American multi-billionaire John Paul Getty knew a thing or two about creating wealth. At the time of his death in 1976 he is believed to have been worth over 4 billion dollars. A sizable part of Getty’s success can be attributed to the aggressive investment strategy he pursued during the Great Depression. When the American economy turned for the worst in 1929, Getty began to buy stock. Getty was shrewd enough to recognise that markets are fickle and what someone is prepared to pay on a particular day does not necessarily equate to its true market value. He also recognised that there is an optimum time to buy. As he was later to reflect: “I buy when other people are selling.” I think the time is right to apply Getty’s principles to the real estate market in Western Australia. This is because there are more properties on the market than there have been for several years. In addition, the selling time has also increased from a low of 30 days in 2006 to and average 75 days in 2008 and as much as 90 days! As a consequence, sellers are more receptive to offers than they were two years ago. If you look at previous cycles, the longest down time in WA has been 1 to 1.5 years. At the moment we are at about 10 months which suggests that we are closer to a return to positive growth than not. If you are looking at purchasing property from an investment point-of-view and have medium to long view of the market, there are some good buys right now. Of course, if you are looking to upsize or downsize the family home, the pricing doesn’t really matter because you are buying and selling in the same market. This is not to say that there are you don’t have to strategize correctly in the present market for as always, the opportunity lies in deciding whether to sell or buy first... David Fear Director Altus Real Estate

Are you Maximising the Power of the Internet When you Sell your home?	22 September 2008	0	View
You're bringing your home onto the market. You want to reach every potential buyer. But how do you do it? Ten or 15 years ago, you placed an ad in the paper and put a sign up. That was it. Those two mediums are still important today but perhaps not as important as they were. We find that a lot of buyers who come through our home opens have checked the times in the paper. The interesting thing is, many of them first saw the property the internet. Our research shows that the number of people who see your property first on the internet is approximately 85% - and that figure is rising! This fact has definite implications for you as a seller - perhaps the most obvious being the breadth of internet exposure. There are multiple real estate sites that feature properties in Western Australia? Exactly how many sites does your agent use to promote your property? Given that many people will first see your property on the internet, it is imperative that your agent has an understanding of how best to present the property - with special consideration given to the photography. Top quality photographs - taken by professionals - are critical to this end. Unfortunately, great photographs alone will not sell a property. This is because it depends on how those photographs are being used. I was recently shown an ad on realestate.com which featured a property in Dunsborough – part of the highly desirable beach and wine region in Western Australia’s south-west. The interesting thing was the lead photo on the ad; it was the large “bush” at the front of the home – you couldn’t actually see the house! It turns out that this property was actually about 200 metres from the beach. In my view the agent hadn’t done his job on that occasion. Think of the vast number of people who would have skimmed past that photo. What could he have done differently? Well, what about taking the time to ensure that at least you could see the house in the main photo. Better yet, what about if they had replaced the photo with a map highlighting it’s proximity to the beach? The other important element relating to the use of the internet in selling your home is to make sure that as much information as possible is available to the potential buyer. We know from our own research that people really appreciate a floor plan of the property. It helps them to make an informed decision about whether to further their enquiry. We also know that people enjoy the panoramic views and virtual tours of property that are now offered by some agencies. Again this gives the prospective purchaser an appreciation of the home that they otherwise might not have. Finally, a link to Google Street View is a positive feature. It allows a person interested in buying the home to take a “virtual walk” down the street where the property is located - an invaluable tool in assessing the “street appeal” of a home. So the next time you decide to sell your home, make sure that you ask your agent some hard questions about their ability to showcase your home. Ask them: How many web-sites will your home appear on? Will you use a professional photographer? Will there be a floor plan? Will your home have a panoramic and/or virtual tour facility? Will Google Street View be linked to the property (on every site)? Cover these bases and chances are that you will be maximising your chances of reaching that one person you need to buy your home. Jamie Harrington (Director, Altus Real Estate)

First Homebuyers are Re-Entering the Market	12 September 2008	0	View
A recent report from REIWA provides some indication that the softening market may be changing. First home buyers – who traditionally make-up 20% of the market (and who were the first to be squeezed out with the dramatic price increases between 2004 and 2007) have begun to re-enter the market. The figures are a positive indicator for the market. The first home buyers are the most influential buyers in real estate. When they stopped buying 18 months ago, “the market began to catch a cold.” Similarly, their renewed interest suggests that a real estate recovery is just around the corner. D Fear (Director, Altus Real Estate)

The Five "Must Dos" Before You Sell Your HomeThis Spring	05 September 2008	0	View
Spring is in the air. Traditionally it is a time when more home owners decide to sell. The better weather certainly hopes. People also know that the latter part of the year is the period when people start setting themselves for the following year – a move interstate, a change of jobs, a new school. All this means is that there are more buyers at this time of year. So how do you take advantage of this fact? Make sure that your home presents at it’s best is probably the best piece of advice. Research has shown that most people will make a decision about a home within the first 30 seconds. This means that FIRST IMPRESSIONS ARE CRITICAL. Ask yourself if you’ve bought a home in the last few years, where you first saw it. Chances are it was on the internet. In fact our research shows that over 50% of our enquiry comes from the internet and that figure is growing! So how do you make sure that your property attracts buyers? Firstly, ready the home for market. Look at the outside of the home (typically from across the street) How does it present? Do trees need to be cut back? Do lawns need to be cut? Could the windows do with a clean. Could the whole façade do with a new coat of paint? Would it be possible to plant some flowering plants that would bloom at the right time? This “curbside appeal” is very important. You don’t want people stopping outside your home and then driving off, without venturing out of their car! Secondly, “attack” the inside of the house. The two most important areas to concentrate on are the kitchen and bathroom – the wet areas. If you are going to spend some money on sprucing the place up these are where you need to focus. FEMALES MAKE 80% OF REAL ESTATE BUYING DECISIONS. To neglect these two critical areas to family life is critical. At the very least kitchens and bathrooms should be clean and tidy. Thirdly, remember that a potential buyer wants to be able to see themselves in your house. Your things gets in the way of this process. Tidy all rooms. Put away as many personalised possessions such as photographs and other memorabilia as possible. According to Maddie Jungstedt, the Interior Stylist whose service is complimentary to owners selling their home with Altus, “de-cluttering is the most important task an owner can carryout before going to market.” Fourthly, give your home a “homely” feel. Clean fluffy towels on beds and in the bathroom are great for this process. So too are strategically placed homely smells such as peculating coffee. Don’t overdo it though. We once had a lady who did the coffee thing, but decided to combine it with incense as well as cook a roast. Fortunately, this case of overkill did not cost her the sale. Finally, make sure that your home is photographed by a professional photographer. The difference between the amateur and professional can be stark in terms of photographic appeal. These guys see the angles, the light and the story behind each home more clearly than we could ever hope to do. That’s why we are always happy to let them do their job. Happy hunting this Spring! Jamie Harrington (Director, Altus Real Estate)

Think "Outside the Square" to Sell Your Home	20 August 2008	0	View
Next time you go to sell your home, treat it like you are selling any other good or service. Ask yourself the most important question that any business owner asks themselves: What sort of person will buy this home? Consider what attracted you to the property in the first place; often the reasons are the same for the buyer. As you reflect, it’s good to picture them. Are they a young couple looking to enter the area? Or, are they an older couple looking to downsize who having sold their large home and are now looking for a property that is easy to manage, offers lifestyle features and is secure? In this changing market pay particular attention to the unique features of your home. For example, someone with an extra large garage should target those with several cars, or those looking to set up a workshop from home. Similarly, a huge backyard would have significant appeal to families who want a garden for their children to play in. It may suit animal lovers who may be willing to forego their expectations of the house to accommodate their pets or even a gardener whose love is the garden. No matter what type of home that you area selling, there is a market for it. If you want to sell your house in the quickest possible time frame it might pay to “think outside the square.” Melanie Fear, Property Executive, Altus Real Estate

Why are 80% of the Properties on the Market Overpriced?	15 August 2008	0	View
Eighty per cent of the properties on the market in the western suburbs are currently overpriced. Why is this so? Owner expectation being “out of sync” with the market is the main reason. Owners base their ideas about the value of their home based on faulty or outdated information. One of the common misconceptions that I encounter as an agent operating in the area is that for a property to have sold, the asking price must have been attained. This is often not the case – particularly in the present market. There are many examples where properties have sold for hundreds of thousands of dollars less than the asking price but the perception by the local home owners is that they sold for close to asking! It is also a dangerous practice for a home owner to compare their property with what is currently on the market – particularly if the “comparables” have been on the market for some time. The final reason that sellers have inflated ideas about current market value of their home is that patterns established 18 months to two years ago when the market was increasing dramatically are still being applied. From 2004 to 2007, prices rose by an average of over 20% annually in the western suburbs. Essentially, this growth meant that the price of people’s homes doubled in that period. Conversely, for the past six months the market has fallen by a figure of 10-15%; to factor in any growth at all for that period is a mistake that can leave a property sitting on the market for months. The key point for owners is to decide what they are trying to achieve by selling their home. Homes that are perceived by the market to reflect true market value as opposed to an owner’s unrealistic expectation are likely to sell under the market average of approximately 60 days. The market has shown that overprice properties will sit – and sit – and sit. David Fear (Director – Director, Altus Real Estate)

Room for Optimism in the Real Estate Market	12 August 2008	0	View
It would be easy to get discouraged about the state of real estate in Western Australia. For some months print media such as the West Australian and Sunday Times have reported very little positive news about the market. More recently, the electronic media such as Today Tonight have started to do the same. It’s not all “doom and gloom” though – especially if the levelling of the market is viewed in context. Between 2004 and the end of the 2007, the Western Australian real estate market experienced growth that was unrivalled in the country. For example, according to REIWA, the median price for a three bedroom home in Swanbourne in 2004 was $700,000. By the end of 2007 that figure was nearly 1.4 million dollars. Cottesloe, and Claremont experienced similar growth over the same period. There were several reasons for this increase. Firstly, real estate markets run in cycles and Western Australia was obviously in line to follow the trends that occurred in the eastern states at the turn of the century. A second and more important force shaping the West Australian growth in those years lay in the increase in population owing to a natural influx of people from the eastern states who were attracted by the lifestyle and business opportunities here, as well as an increase in population emanating from the demand for resources in Asia, particularly China. Despite these positives, it was inevitable that the Western Australian market would slow. As the Perth median price gradually increased to $475,000 in December last year, property became unaffordable for first home buyers. This fact, combined with an increase in the number of properties onto the market owing to a series of interest rate rises, took such a toll that by June this year, REIWA reported that the median price had fallen to $446,000. Whether property will continue to fall is still debatable. Certainly, the fact that the Reserve Bank decided not increase interest rates again at the latest review (and is in line to lower them) should help matters. So too should the current downturn on the Australian Stock Exchange for it is rare for both real estate and share markets to be softening at the same time. Perhaps the best hope of a speedy recovery lies in positive outlook for the West Australian economy. According to the ABC, 1000 people a week moved to Western Australia last year, including nearly 8% from the eastern states. Secondly, the demand for resources from Asia and the associated economic growth shows no signs of abating, suggesting that the attraction to Western Australia for many will continue into the future. Exactly how soon the real estate market rights itself is difficult to say. What is clear is that the outlook is much brighter than the media might have us think. Jamie Harrington (Director, Altus Real Estate)

Declutter to Ready Your Home for Market	11 August 2008	0	View
If I have one rule for readying your home for the market it would be to declutter. Buyers want to be able to see themselves in your home. Your "stuff" gets in the way of this process. This is particularly true of personal items. They must go. One final point on this matter. Just when you think that you have removed everything there is to remove - remove some more. Happy selling! Madeleine Jungstedt (Home Stylist, Altus Real Estate)

Google Street View: Will this help sell your house?	11 August 2008	2	View
Since the advent of Google in 1996 the company has been at the forefront of innovation. They’ve done it again. The release of Google Street View recently made a big splash in the US. It’s set to do the same in Australia following its release on Tuesday. From a real estate stand point, the new view has increased the level of service on offer to a potential property purchaser. Google Street View allows the potential purchaser to take a “virtual walk” from the front of the designated address. Using this tool, consumers can now not only gain a feel for the front of the property, but for the street and surrounding streets as well. Like most industries, real estate has changed substantially as a result of the internet. Google Street View represents another component in that evolution. Jamie Harrington (Director, Altus Real Estate)

Welcome to our BLOG.	10 August 2008	0	View
We believe this is the first real estate blog in WA, and we'd like you to be aware of our 3 simple rules: 1. We will be posting ideas, suggestions, comments and thoughts here on a regular basis 2. You are welcome to add your comments to our BLOG 3. We do ask that you keep your comments brief and considerate; as we will only allow appropriate comments up on our website. We hope the ALTUS BLOG will become a source of ongoing interest, and keep you abreast of western suburbs real estate market related topics. thank you, Neil Mattingley Client Relations Altus Real Estate

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