Australia General Property Discussion

John

Virtual auctions is the new norm

Sales by phone, inspections by appointment and, possibly, virtual auctions are the order of the day for the property industry in Townsville as the coronavirus emergency unfolds. Looking ahead, agents see changes in attitudes favouring regional markets like Townsville. “We live in paradise. This is a chance for regions to shine,” Ray White agent Julie Mahoney said. Real estate auctions joined the growing list of “prohibited activities” released by the Federal Government on Tuesday, while open house inspections are to be done by private appointment. People are being urged to stay at home unless shopping for essentials or travelling to and from work but house sales have still been occurring over the past week. Ms Mahoney’s agency holds auctions every month and recorded two sales under the hammer and another two sales shortly after last week’s event. Some form of virtual auction was being considered for future events, Ms Mahoney said. But she expected challenging times ahead and a slowdown in sales, while the use of technology would become increasingly important. She said buyers already were taking part in auctions via phone hook-ups. She was also regularly showing homes to out of town customers by walking through properties and using videotelephony product FaceTime. “The good thing for vendors is that genuine buyers will come to open houses on private appointment or FaceTime,” Ms Mahoney said. In the longer term, Ms Mahoney expected changes in attitudes caused by the coronavirus outbreak to favour regional markets. She said she had already spoken to former Townsville residents living in Sydney wanting to return to the city. “I think there’s going to be growing awareness about the density of living in these big cities. There’s going to be an economic shift,” Ms Mahoney said. She said people would look to centres like Townsville, where property values were very attractive compared with metropolitan areas, and where lifestyle was so much better. She also hoped governments would decentralise services and departments. “Once we get through this we will be seen as a very, very attractive place to live,” Ms Mahoney said. The advice from government is that we will be living with coronavirus for at least six months and that social distancing measures are aimed at slowing down its spread and allowing most people to keep their jobs. https://www.realestate.com.au/news/real-estate-agents-say-they-are-considering-virtual-auctions/x Real estate agents say they are considering virtua... Sales by phone, inspections by appointment and, possibly, virtual auctions are the order of the day for the property industry in Townsville as the coronavirus emergency unfolds. www.realestate.com.au

0 Reply 4 Views 2D ago

Ronie

Some financial aid that government is providing to renters during COVID-19

The Federal Government’s recent announcement of a $130 billion support package for businesses and workers could help you if you’re a tenant struggling to pay rent this month. As a result of COVID-19, many businesses have had to let go employees. Industries including hospitality, events and tourism have been hit hardest and many workers in those fields are either without work or have found themselves with reduced incomes. There are several financial packages you could be eligible for to ensure you can pay rent on time. 1. JobKeeper allowance This is the most recent support package announced by the Government and consists of a $1,500 fortnightly payment for eligible businesses over the next six months to help them to continue paying staff. The Government has set in place the JobKeeper allowance to ensure that, as an employee, you still have a job once this difficult period is over. If the business you work for has been substantially impacted by coronavirus, it can apply for this wage subsidy. Employees that are eligible for this payout must have been employed at 1 March 2020 and include: Full-time workers Part-time workers Sole traders Casuals who have been with their employer for at least 12 months New Zealanders on 444 visas The $1,500 fortnightly payment will be issued from the first week of May and will be backdated to today. If employees have been stood down by their employer since 1 March, they remain eligible for these payments. 2. JobSeeker allowance If you have lost your job and don’t qualify for the JobKeeper payment, then you may be eligible for the JobSeeker allowance. This is a fortnightly payment and the amount paid is dependent on your circumstances ranging from $510-$790. You must be aged between 22 and pension age, your income and assets are under the test limits and you meet residence rules. However, if you have reduced work, you might still be eligible. Generally, recipients can earn up to $104 every 2 weeks before payments will be reduced. 3. Coronavirus Supplement The Government will also pay an additional $550 per fortnight to those already on a support package throughout the next six months. So if you are already on the JobSeeker payment, then you will receive this $550 on top of your pre-existing payments. This also applies to those on the following payments and will be put in place automatically: Youth Allowance Parenting Payment (Partnered and Single) Austudy ABSTUDY (Living Allowance) Farm Household Allowance Special Benefit recipients 4. Payments to support households You could also be eligible for two separate one-off payments of $750. These payments were introduced to help support households manage during the pandemic and will be paid automatically if you are already on a government payment, or are a concession cardholder. It also aims to help those who may not be able to go to work if they are required to self-isolate or are caring for someone who is self-isolating. These payments will be made automatically from 31 March, with the majority to receive the boost by 17 April. 5. Rent Assistance This is an additional payment from the government to help with rental payments if you’re already receiving assistance, and this will happen automatically, so there’s no need to apply. Make special note that this rent assistance doesn’t cover those living with their parents in a self-contained residence, which includes granny flats or caravans. The amount you receive depends on how much rent you pay. There’s a minimum amount of rent you need to pay to get this assistance. For every $1 of rent you pay above this amount, you’ll get 75c, and you can’t get more than the maximum fortnightly amount of $139.60. 6. Utility provider support With loss of income, you could be finding it difficult to pay for utilities including gas, electricity and water. Phone your provider and ask for the customer assistance program; every provider is obliged to have this service and they can help you come up with a payment plan. This means that you won’t be cut off from these household necessities during COVID-19. Source:x Financial aid tenants could tap into during COVID-... The Government's recent announcement of a $130 billion support package for businesses and workers could help you if you're a tenant struggling to pay rent this month. www.realestate.com.au

0 Reply 9 Views 3D ago

Liam

Upto 40% properties were withdrawn from the Auction with the new COVID-19 bans in place

The number of owners withdrawing their property from auction soared to 40 per cent last week, following the introduction of a ban on auctions and open homes. Social distancing measures introduced by the federal government over the last week to limit the spread of COVID-19 – including a formal ban on auctions and open homes – have stalled the number of properties being sold. According to CoreLogic, in the week ending 29 March, 3,203 homes across capital cities were set to go under the hammer. This would have made it the busiest week for auction activity so far in 2020. However, due to the government restrictions coming into play on 25 March that banned in-house and on-site auctions, 40 per cent of those properties were withdrawn from auction. The withdrawal rate shot up from just 7.5 per cent the previous week, according to property research group CoreLogic. The remaining 60 per cent of auctions were forced onto online and remote platforms and returned a preliminary clearance rate of 51.4 per cent, the lowest preliminary rate recorded since June 2019. Additionally, market experts expects this figure to be revised further downwards as more accurate information and results are recorded. Comparatively, the previous week saw a final clearance rate of 56.9 per cent across 2,599 auctions, whereas the same week last year saw a 50.9 per cent clearance rate across 2,164 auctions. According to CoreLogic, the surge in auction withdrawal was anticipated by industry figures, considering rising levels of uncertainty on behalf of both buyers and sellers in this market, as well as the shift towards remote and online auctions, which could take some time for the market to adjust to. Further, some reports from the week have seen agents battle technical challenges and connectivity issues, all of which will likely be resolved with additional preparation time, according to the research group. The data for the week ending 29 March also suggested that there was a surge in the proportion of properties sold prior to auction, up from 22 per cent last week to 36 per cent. CoreLogic speculated that home owners could have decided to bring forward the date of their auction in order to beat the introduction of the auction ban or have been motivated to sell their property before lockdown policies potentially escalate. Looking forward, the coming months are likely to see substantially fewer auctions than normal, the property research group stated. “We may see some vendors choose to convert their listing to a private treaty method, while others will likely pull their property from the market all together until confidence and selling conditions improve,” CoreLogic outlined in a statement. Read more:x Auction ban drives up withdrawal rates The number of owners withdrawing their property from auction soared to 40 per cent last week, following the introduction of a ban on in-room public auctions and open homes, according to CoreLogic. www.smartpropertyinvestment.com.au

0 Reply 38 Views 3D ago

Ranjit

Coronavirus - Virtual reality auctions kick off in QLD

Brisbane City

Millions exchanged hands this week as agents, buyers and sellers raced to beat the COVID-19 crackdown on inroom property auctions, while others embraced the start of livestreaming sales. Prime Minister Scott Morrison announced on Tuesday that all inroom auctions and group open homes would cease from midnight Wednesday, leading the industry to take the events fully digital, with bidding done online or over the phone. This week was on course to be the biggest of the year for auctions, with Brisbane volumes up 52.2 per cent, compared with the same time last year, with 172 homes listed to go under the hammer, according to the CoreLogic Auction Market Preview. “After the weekend, we should have a better idea on how this is going to impact the auction market going forward,” a CoreLogic spokesperson said. Among the virtual sales last night (Thursday) were 10 conducted through Ray White Queensland chief auctioneer Mitch Peereboom on the Gold Coast. “These are online private auctions. Buyers register to bid, they are able to watch the auction live and bid via our platform. We are really excited about this creative solution because we know buyers want to buy and sellers want to sell. The property market is performing strongly and we welcome this new opportunity to deliver our clients the same outcomes (they would have achieved).” Stuart McCrea of Place Estate Agency in Coorparoo said the industry could work around the safety measures introduced to protect buyers and sellers from coronavirus. “The use of video walk-throughs, all these things, allow people to bid with confidence. When your dream home comes up you shouldn’t be worried about coronavirus.” Read more:x Coronavirus: Millions in home sales as virtual rea... Millions were exchanged in a bidding frenzy as agents, buyers and sellers raced to beat the COVID-19 crackdown on inroom auctions, while others embraced the start of livestreaming sales. www.realestate.com.au

0 Reply 23 Views 8D ago

Simon

Corona - Inspections go online with the new restrictions imposed due to COVID-19

Having anticipated the recent bans on auctions and open for inspections, many propert agencies have launched a new virtual inspection tool which will allow buyers and sellers to remain in business. “Digital Inspections is the first of our new features to help the market adapt to the evolving conditions. “We all have a responsibility to flatten the curve when it comes to the spread of COVID-19, and we are focused on helping our customers continue to operate their businesses in a safe environment.” There is already digital technology in the marketplace for auctions, however REA Group CEO Owen Wilson says agents and buyers also have other paths of negotiation they can take. “It may become more common place for agents to use expressions of interest and private treaty methods to support buyers and sellers as an alternative to traditional auctions,” he says. https://www.realestate.com.au/news/open-for-inspections-go-online-as-property-market-shifts-to-virtual/x Inspections remain open online despite government ... Despite the ban on auctions and open for inspections, realestate.com.au's new tool means you can still virtually tour your dream home. www.realestate.com.au

0 Reply 30 Views 8D ago

Justprop Team member

Landlord Insurance and changing legislation

Rental regulations around Australia are set to change in 2020 as the number of Australian renters continues to climb. While the specifics of the reforms differ across the states and territories, key changes are being implemented that have the potential to impact landlord insurance. NSW, Victoria and the ACT have already legislated changes with all three governments moving to give tenants more control over their environment, with fewer restrictions on pets, permission to make minor modifications to rental properties, limitations on rent hikes and no penalties for domestic violence victims who break a lease. Implications for insurance A number of the rental reforms have the potential to impact landlord insurance cover, and landlords and agents should review existing policies to ensure cover is adequate. Key changes and insurance cover (make sure you check the legislation in your state to determine the exact impacts on your investment): Pets In many jurisdictions, landlords will not be able to refuse tenants keeping pets at the rental. While it is the responsibility of the tenant to repair any damage caused by their pet, in the event they fail to make good, landlords may look to their insurance. Many landlord insurance providers do not offer cover for pet damage at all, may impose low claim limits or place restrictions on cover (such as naming the pet on the lease). Landlords should check that their policy includes pet damage, the limits of cover and any conditions. EBM RentCover policies provide up to $65,000 for pet damage and place no onerous conditions on cover. Modifications Tenants in most states and territories will be able to make minor modifications to their rentals without landlord permission. As any type of work at the property increases the risk of accidental damage, landlords will need to check they have cover for this as some insurers only offer this as an additional level of cover (EBM RentCover automatically provides up to $65,000 cover for accidental damage). Certain works also need to be undertaken by licenced trades, such as plumbing and electrical, and failure to do so could void the insurance. In addition, there could also be an increased liability risk from injury or property damage. Breaking leases Being implemented and under consideration are new rules concerning breaking leases and tenants not incurring penalties for doing so (primarily in domestic violence situations). Any changes to responsibilities for broken leases which result in landlords being left out-of-pocket could impact loss of rent claims. Minimum standards In general, the condition of a premises can have a direct impact on whether an insurer will take on the risk and offer cover. The introduction of minimum standards may contribute to an insurers’ assessment of the property’s risk profile. Substandard properties (those which fail to meet health and safety requirements, which already exist in various acts, regulations and codes) are unlikely to be insurable. In addition, it is already a condition of most building policies that the premises must be maintained and failure to undertake maintenance can void a policy. State of play The rules are shifting for landlords and tenants. Read details about all states inside:x Changing legislation and landlord insurance Rental regulations around Australia are set to change in 2020 as the number of Australian renters continues to climb. While the specifics of the reforms... propertyupdate.com.au

0 Reply 43 Views 8D ago

Simon

Economy will recover from health crisis hit: expert

Despite current uncertainties, experts assure Australians that the national economy has the key fundamentals in place to make a strong recovery in the event of a breakthrough in the global coronavirus (COVID-19) pandemic. KDL Property Group Managing Director Kent Leicester said COVID-19 has become a life-changing health crisis, but lessons have been learned from the global financial crisis a decade ago to find a way forward when the virus can be contained. “While we are in uncharted territory as COVID-19 spreads around the world, the response from governments, the Reserve Bank of Australia and the major banks is encouraging as we battle these unprecedented headwinds,” Mr Leicester said. “A total of $189 billion is being injected into the economy by all arms of the government, with more expected to assist business, keep people working and help those hit hard by the financial impact of COVID-19.” “A lot was learned [from] dealing with the GFC, in the end, which did not impact as badly on Australia compared with the rest of the world.” In response to COVID-19, the RBA has cut official interest rates to a record low of 0.25 per cent. At the time of the GFC in August 2008, the RBA cash rate was 7.25 per cent and was lowered to 3.0 per cent by April 2009, still way above current levels. According to the Queensland-based property developer, borrowers had lived through a decade of low interest rates with no likelihood in the near future of rates increasing significantly. “This is an excellent environment to enable investment in the recovery phase and property will be a safe haven with the share market experiencing so much volatility,” Mr Leicester highlighted. “When the health crisis is under control, people, particularly investors and residential first home buyers, should feel comfortable with what should be an amazing environment for growth.” According to the latest UBS real estate update, interest rate cuts, strong owner-occupier demand and attractive site acquisition opportunities have provided an upbeat outlook for property developers despite COVID-19. Mr Leicester said KDL Property Group, which has residential and commercial real estate projects throughout South East Queensland, has also been receiving positive feedback from customers. “Businesses have been proactive in changing the way they work under COVID-19 and are doing what is required.” “Our customers are trying to be business as usual. We are still looking to acquire sites and are continuing to work with councils on planning matters. We are thinking about the next two to three years and are viewing COVID-19 as a temporary situation we can overcome. “We are really seeing people taking a long-term and mature view of the market.” Source:x Economy will recover from health crisis hit: exper... Despite current uncertainties, experts assure Australians that the national economy has the key fundamentals in place to make a strong recovery in the event of a breakthrough in the global coronavirus... www.smartpropertyinvestment.com.au

0 Reply 16 Views 8D ago

Royal

The impact of COVID-19 on landlord insurance

It is a seemingly confusing time, as Australia and the world battles what has been dubbed a ‘once in a generation event’. These distressing and unusual times bring unforeseen difficulties. And unfortunately landlords and property managers will not walk away unscathed from this global pandemic. The Coronavirus outbreak will undoubtedly impact some tenants and their ability to pay rent. And it may, for a period of time, influence the way property managers inspect rental properties. …most noteworthy, the situation may determine whether or not investors can continue to pay mortgages. During this time, a lot of you will look to landlord insurance to recoup costs and cover losses. But will the rental property be protected? We answer this question (and others) honestly and transparently, to help you better understand how an EBM RentCover policy will respond during these times. Please find the answers to the below common questions inside:As states prepare to lockdown, and businesses close their doors, how does this impact the running of EBM RentCover and will I still be able to touch base with the team if I need guidance about my policy?This is a time for leniency and we have recognised our tenants need help. Can we avoid sending late notices and change our processes? What is acceptable and will this impact insurance?I have a short-term rental (protected with RentCover ShortTerm) and everyone is cancelling their reservations in light of the Coronavirus outbreak. Am I covered?If tribunals close, how does this impact a claim?Can we rely on landlord insurance to protect rental properties during times of pandemic?How is landlord insurance impacted if there is a ban on rental property inspections due to the risk on personal health and safety?I need to make a claim – is this process still the same?If my tenant loses their job due to the economic outlook (which stems from the Coronavirus) and stops paying rent, will I be able to recoup costs through my insurance?If my tenant gets Coronavirus and can’t work or pay rent, am I covered?What happens if my tenant gets caught overseas, or has to self-isolate, and during this time does not want to pay rent? Is this covered?Will the policy offer cleaning/decontamination cover following my tenant having Coronavirus and having to isolate in a rental property?It appears the Coronavirus may impact the need for rental properties. If my tenant is soon to move out and then I can’t secure another tenant because there is little demand for apartments, will losses be covered?What if we lose contact with our tenant (who told us they were going back to China or Europe) and there has been rent arrears – do we need to go to our tribunal to request possession of the property? And then when will insurance step in? Details inside:x FAQs: COVID-19 and the impact on landlord insuranc... It is a seemingly confusing time, as Australia and the world battles what has been dubbed a ‘once in a generation event’. These distressing and unusual... propertyupdate.com.au

0 Reply 100 Views 8D ago

Liam

Reaction from real estate bodies after ban on public auction

Earlier this week, the government confirmed that it has cracked down on in-room public auctions and open house inspections. Here’s how some of the nation’s real estate bodies have responded. On Tuesday, 24 March, Prime Minister Scott Morrison confirmed that from midnight on Wednesday, 25 March, a series of new restrictions are to be applied as part of the government’s efforts to combat the spread of COVID-19 on Australian shores. “In the retail space, auction houses, gathering together in auctions rooms, that can no longer continue,” the PM said. “Real estate auctions and open house inspections, that cannot continue.” Following the news, a number of real estate bodies reached out to offer their perspective on the crackdown. Details inside:x How real estate bodies are reacting to a ban on pu... Earlier this week the government confirmed it has cracked down on in-room public auctions and open house inspections. Here’s how some of the nation’s real estate bodies have responded. www.smartpropertyinvestment.com.au

0 Reply 13 Views 8D ago

Joshua

How to sell your home amid the COVID-19 restrictions

Every financial or economic crisis is different, and the coronavirus pandemic is no exception. The current situation can be likened, in some ways, to earlier economic downturns, such as the Global Financial Crisis in 2007. But what we’re living through at the moment is very much a first. For the property market, the most important thing is how we overcome the obstacles the coronavirus presents. Home auctions and open house inspections banned Real estate agents do not have a hand in what happens to the economy, nor can they control what public health directives are given amid COVID-19. However, there are plenty of things agents can do to help support their businesses, and try and ensure people are still able to buy new properties and move on from properties too. It has always been important for residential sales agents to provide property information to potential buyers – but during the current heightened economic and social uncertainty, the type of information and the way it’s delivered needs to be taken to another level. While the extra effort will come at a cost to vendors, the financial sacrifice is relatively minor in the context of the overall value of the transaction. Remember: A more informed buyer is more likely to be able to make a decision to purchase. In these uncertain times, agents must ensure buyers and sellers are getting enough information to make an informed decision. But this can be challenging when the decision is being made without a physical property inspection. Our complete guide to the property market amid COVID-19 is a useful read for those interested in what’s going on right now. What can vendors do when selling amid COVID-19? While your agent will be a big help in getting your property sold quickly and for a great price, there are things vendors can do to ensure the process goes smoothly. Consider paying for building/pest inspections and independent valuations This helps make the buying experience as smooth as possible for potential buyers. It can also greatly improve transparency for the transaction. Make the property look the best it possibly can In the coronavirus environment, agents and vendors really need to consider how to best display a property. Many potential buyers will be unwilling or unable to attend open-for-inspections due to the current health crisis, so agents should consider arranging private viewings and alternatives to public on-site auctions. Read:x What Should Your Agent Be Doing For You Amid COVID... Every financial or economic crisis is different, and the coronavirus crisis is no exception. The current situation can be likened, in some ways, to earlier pandemics and economic downturns. www.realestate.com.au

0 Reply 36 Views 9D ago

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John

Virtual auctions is the new norm

Ronie

Some financial aid that government is providing to renters during COVID-19

Liam

Upto 40% properties were withdrawn from the Auction with the new COVID-19 bans in place

Ranjit

Coronavirus - Virtual reality auctions kick off in QLD

Simon

Corona - Inspections go online with the new restrictions imposed due to COVID-19

Justprop Team member

Landlord Insurance and changing legislation

Simon

Economy will recover from health crisis hit: expert

Royal

The impact of COVID-19 on landlord insurance

Liam

Reaction from real estate bodies after ban on public auction

Joshua

How to sell your home amid the COVID-19 restrictions

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Upto 40% properties were withdrawn from the Auction with the new COVID-19 bans in place

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