Broome Activity Report April 2018 Edition (Jan - March 2018 Evidence)

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1 Broome Activity Report (Jan - March 2018 Evidence) Broome

2 Welcome to our quarterly update on Broome s Marketplace... PROPERTIES SOLD IN BROOME January to March Properties PROPERTIES CURRENTLY ON THE 65% MARKET IN BROOME 240 Properties Includes 98 Houses 71 Vacant Lots 71 Units/ Villas HIGHEST RECORDED SALE PRICE SOLD by Rueben $740, Kapang Drive, Cable Beach 4 Bedroom 3 Bathroom 774sqm LOWEST SALE PRICE $120, Challenor Road, Cable Beach 1 Bedroom 1 Bathroom 63sqm First National Real Estate Broome

3 Source RP Data First National Real Estate Broome

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8 PROPERTY MANAGEMENT UPDATE It is pleasing to see our leasing activity remained strong through the first quarter of 2018 despite the bad weather and trifecta of cyclones. Our agency has leased 55% of the Rental Market this past quarter with 85 properties leased so far this year. We are pleased on a couple of levels with this result as there were many days where the weather made it almost impossible to do any viewings. People are not as inclined to want to venture out if there is a torrential downpour and of course any cyclone alerts are extremely disruptive to the business of leasing. Although the number of properties leased this quarter was not as many as the corresponding quarter in 2017, it does indicates that there is more stability in the rental market as the vacancy rate is remaining more consistent and a lower percentage. A brief summary of the Broome Greater Region market is below: RENTAL LISTINGS - There are 115 properties for rent in the greater Broome Region at the end of the March 2018 quarter. There has been very little dwellings built in 2017 which has resulted in the rental stock being taken. AVERAGE LEASING DAYS - It is taking now an average of 50 days to secure a tenant compared to the last Quarter at the end of 2017 when it took 65 days on average to find a tenant. This is good news as it means tenants now need to act faster to secure a rental. This means they no longer are looking at a long list and taking ages to make up their mind. Also pleasing to report that on several properties we have had 2 or 3 applications all vying for the same property VACANCY RATE - Our quarter vacancy rate is now 3.5 per cent compared to 5.5 per cent last quarter. With the demand in the past quarter we are seeing a positive effect on the vacancy rate. LEASING ACTIVITY - There were approx 145 rental properties leased in the January to March 2018 quarter across all agents. Tenants are active and it s good to see that leasing activity held up well despite the adverse weather conditions. What is the highest leased price in the past 3 months? $880 per week What is the lowest leased price in the past 3 months? $220 per week What s the median rental price in the past 3 months? $467 per week Having the largest selection of properties available means we are in constant contact with people looking to relocate. We are the only agency who offers a dedicated Leasing Consultant who ensures every lead is followed and helps people find their new home. We understand an investment is only as good as the return it gives you - we are your Agent who will think outside the box to find you a great tenant in the quickest possible time. Landlords and prospective investors should not be discouraged as there is very good opportunity in Broome s current rental market. Investors thinking of buying would be smart to take advantage of this favourable buying and if you own a rental property, you have a very good chance of securing one of the many tenants currently out there looking for a home (provided you list competitively). (Continued) First National Real Estate Broome

9 What does that mean if you are an investor? It is still a competitive market, ensuring your property has appeal and is priced accordingly will ensure you generate strong enquiry to secure a good quality tenant. It is always pleasing to see how quickly the market responds to good quality properties as they become available. It can be within minutes of our VIP alert being sent that we receive an inquiry. HOW DO WE REDUCE YOUR VACANCY PERIOD? We differ from most property management departments in that we offer a dedicated Leasing Officer and a Marketing Team which guarantees your property the best exposure available. Some of the other ways we try to minimise your vacancy include: MINIMISING TENANTS MOVING - obtaining the best rental price is just one component of ensuring your investment achieves the best returns. Having a constant revenue stream is vital to ensuring the financial success of your investment, and in this market, if it s possible to entice the current tenants to remain by reducing the rent, this is financially more beneficial. ONLINE PRESCENCE - the first place today s prospective tenant starts their search for a rental property is online. This can be via a search engine, through a property website or even a facebook group. Statistics show that rental properties with good, clean photography lease quicker especially in helping create interest online through social media. Prospective tenants will be more inclined to click, enquire, and view so that ultimately, the more people that come through the door, the higher chances are that they will apply. DIGITAL MARKETING - along with our own website, we promote rental properties on a range of property portals to ensure maximum exposure as well as social media. We also have our own database with prospective tenants and their specific requirements ready to rent a property that suits their needs. All our available properties are ed directly to them with a follow up from our Leasing Officer. LEASE TERMS - not a new concept, but certainly a tactic that we are pushing harder this year is to avoid new leases and lease extensions expiring in quieter times. You may find we suggest an 8 or 15 month lease to have the renewal come around in a busier period. So what is the benefit of a dedicated Leasing Consultant? Traditionally if a property manager is expected to carry out all their management duties as well as leasing you may find prospective tenants don t have calls returned until some few days later. Similarly to arrange a time to view a property may mean it has to wait until after their three days of inspections are completed. Our Leasing Consultant is available full time to follow up any rental inquiries and book viewings. Unlike some agents who only advertise a property and then pray for inquiry, we actively pursue all tenant inquiries and try to accommodate their availability for viewings whenever possible. We also utilise our prospective tenant database to the best of our advantage and propose each inquiring tenant considers all our other listings if they one they inquired on doesn t suit. This seems like common sense but when actively pursued, we are converting interest from one property onto others regularly. These are just a few examples of how we manage our property management department to ensure you investment maximises it returns. If you would like to know more please contact Charmaine Snow on (08) or charmaine@broomerealestate.com.au First National Real Estate Broome

10 AUSTRALIA S MOST SATISFIED CUSTOMERS Buying or selling a home is amongst the biggest financial decisions you ll ever make, so you want the best service, advice and value for money. Which real estate agents are moving Aussies in the right direction, and which should be packing their bags? To find out which real estate agents are rated highest across Australia, Canstar Blue surveyed Australian adults in 2016 and 2017 who had employed an agent in their area over the last three years, whether it related to the buying or selling of a property, or leasing, management or renting. Twice in a row, it has found First National Real Estate is impressing more than any other firm, taking out five-star reviews from consumers in every single category, including communication and advice, problem resolution and value for money. No other real estate agent achieved top marks in any area. Plus, in 2017, Canstar Blue added another award Most Satisfied Customers, Small Business Real Estate. Small business is all about making the right moves. Canstar Blue s research found First National is the highest rated real estate agent for small business purposes in It rated five stars in all research categories, including property management and leasing services. First National Real Estate Broome

11 How to get started on your investing journey? Prepare yourself with as much information on the Broome market and investing in property as you can. Many websites exist with good calculators, blogs and market reports all of which you can find on our website - It s a good idea to speak with your local Agent and discuss your specific property goals and financial situation. It doesn t hurt to also ask the advice of family and friends who have had success investing in property. The more informed you are, the better choices you will make. Our Sales Team are always happy to help with any of your property queries - they can be contacted by phone (08) or info@broomerealestate.com.au It is also a great idea to have your finances in order and know how much your bank is prepared to lend you. Have a clear strategy on how your property investment will fit in with your current finances and other investments. Are you looking for a positively geared or negatively geared property and how it will affect your overall position? The team at North West Finance are a great place to start when considering your options as they offer access to all banks and can advise what will suit your requirements best. Register online to have North West Finance contact you (it takes less than 1 minute) Before you make your decision on which property to buy assess whether the investment will be easy to rent and popular among buyers when you decide to resell. It is also important to take into consideration not only the stamp duty and settlement agent fees but also rates, levies, management fees and ongoing maintenance. The numbers need to add up for your investment to work for you. Our Department Manager of Property Management, Charmaine Snow said when a property is presented well, in a good area and priced correctly there is no reason it should sit vacant. If you would like to find out if a property would appeal to the rental market before putting in an offer please contact Charmaine by charmaine@broomerealestate.com.au Lastly it s important to consider the age of the property and whether it might be due for some significant maintenance. When doing your calculations ensure you remember landlord protection insurance, air conditioner maintenance and property improvements to keep attracting a quality tenant. If you would like to know more about how to begin your investment journey please contact our team by: info@broomerealestate.com.au Phone (08) Facebook direct message facebook.com/firstnationalrealestatebroome/ First National Real Estate Broome

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