In the News
Aussie mortgage holders spared a Christmas 2023 rate rise. Ray Ellis commentary on Elite Agent magazine.
First National Real Estate CEO Ray Ellis said Australian’s confidence had been tested over the past 18 months, with 13 rate rises, and we are now reaching “the tipping point” where household budget can not cope with another rate rise.
“A rate rise now or early in the New Year will negatively impact buyers and investors decisions to purchase and, no doubt landlords, will be forced to pass on these increases to renters,” he said.
“The housing crisis is not going away and consumers still recognise that their only chance to ride these challenging times and maintain the value of their home is to purchase affordable quality and value properties in the right locations with strong transport and surrounding infrastructures.
“In some rental areas we are seeing renters moving back to mum and dad and increased interest in shared accommodation and room rental, which real estate agents have not seen since the early ‘60s.”
Elite Agent talks to Ray Ellis and other industry leaders about the Cup Day rate rise
Read full article on Elite Agent here
First National Real Estate CEO Ray Ellis said with Australia experiencing its worst housing crisis in decades, banks posting record profits and capital city auction activity down by 40 per cent, he is aligned with the views of Deloitte Access Economist Stephen Smith who believes a rate rise is a mistake.
Mr Smith stated earlier this week that “Interest rates are not going to be able to address the key sources of inflation, namely rent, electricity and petrol”.
Mr Ellis also recognises that any uncertainty around interest rates negatively impacts buyers and investors decisions to purchase and last week’s auction results are testament to this.
How to Boost Your Spring Home Sale for Under $10,000. Casey Martinez from Gillett News talks shares tips from Ray Ellis.
Preparing your home for a spring sale doesn’t have to break the bank. Real estate experts suggest that spending around $10,000 on updates and renovations can significantly increase your chances of achieving a favorable result in the market. First National Real Estate CEO Ray Ellis recommends starting with a kitchen update, which can be done for less than $15,000 by painting faded splashbacks or resurfacing kitchen cupboards and benchtops. Next on the list is a budget-friendly bathroom update that includes replacing old fixtures or regrouting shower tiles.
Other recommendations include landscaping the garden, refreshing the paint by repainting the interior in neutral tones, replacing old carpets or polishing the floors underneath, and adding or sprucing up outdoor living spaces. Upgrading to modern, energy-efficient light fixtures and cleaning or replacing doors and windows can also enhance a home’s appeal. Decluttering and deep cleaning the property can significantly improve presentation, and professional staging can highlight the home’s best features.
Hacks to boost your home sale for under $10,000, according to real estate experts. Nathan Mawby talks to Ray Ellis.
First National Real Estate chief executive Ray Ellis said the first step for any seller should be a kitchen update if needed.
While online tradie market place hipages estimates a new culinary hub can top $15,000, Mr Ellis said refreshing elements of the key living space could be done for far less.
He suggested painting over faded splashbacks or resurfacing kitchen cupboards and benchtops.
A budget bathroom update was next on his list, but rather than spend upwards of $10,000, simply replacing old fixtures with modern ones or regrouting shower tiles could have buyers willing to spend more.
“What sells a house is the kitchen, the bathrooms and the living areas, so you want to spruce those areas up,” Mr Ellis said.
“If you allocate up to $10,000 as your budget you are virtually guaranteed to sell your home as you will be ahead of the pack. And you could well get more.”
Freeze on rent folly. Nathan Mawby from the Herald Sun talks to Ray Ellis about the impact of the proposed rent freeze in Victoria.
While the property sector has widely welcomed such an initiative, First National Real Estate chief executive Ray Ellis said he feared a 30 per cent reduction in rental supply – “at a minimum” – if landlords had rent rises limited to two-yearly intervals amid rising land tax costs and interest rates.
Ray Ellis comments to Elite Agent. RBA Governor, Dr Philip Lowe hard done by.
First National Real Estate Chief Executive Officer Ray Ellis said Dr Lowe had been hard done by.
“The appointment of the new governor is part of the ongoing process where every seven years there is a new governor of the RBA,” he said.
“This is against the backdrop where the departing governor has been unfairly criticised for doing what is essentially his job, which is to steer and protect the Australian economy.
“His candour should be appreciated and is perhaps a lesson for many other leaders in our country.”
Dr Lowe will step down as the RBA boss on September 17 and from September 18 Ms Bullock will become the central bank’s first female leader.
She will serve a seven-year term.
What not to compromise on in your property search. Ray Ellis talks to Sue Williams, Sydney Morning Herald
Read full article on SMH.com.au here
The first thing buyers should never compromise on is budget, advises First National Real Estate chief executive Ray Ellis.
“The purpose of your home is to help you lead a better life,” he said. “So if the purchase ends up affecting your financial health, and you’re worrying about every mortgage payment, then it is never worth it. That’s especially if you’re unable to keep up and are forced to sell it, and then make a big loss.”
Summit call as landlords exit. Ray Ellis talks to Wade Stephens of the Sunraysia Daily.
Read full article on Sunraysia Daily (with a subscription) here
THE boss of real estate group First National has called for the state government to provide social housing and host a summit on the growing rentals shortage.
Ray Ellis said the only way to relieve rental pressure on tenants over the next decade would be to increase housing supply.
"If we don't get more supply, with landlords exiting the market, it's only going to get worse," Mr Ellis said.
"I'm calling for our state government here to have a summit ... about how we are going to release more supply into our marketplace."
Mr Ellis said his Mildura team fielded 16 calls from landlords this week who are seeking to sell their investment properties due to financial stress.
"Almost 70 to 80 per cent of the rental market in Victoria is supplied by people who earn under $80,000 a year, they're what we call mum and dad investors," he said.
"The vast majority of people own one house and it's the great Australian dream to make capital growth, maybe have some rental return.
"Since the state budget, many landlords throughout the state have enquired about selling their property."
He said state governments have addressed supply issues before, with post-World War II social housing policy and programs, when housing commission homes were being built.
"Most of them were built by state governments and they were a good entry for people to get into the market and get ahead in the housing arena," Mr Ellis said
"There's no debate in Australia, and particularly in Victoria, about the lack of supply.
"In Victoria now, there's in excess of 37 to 40 thousand people waiting for social housing.
"Until the state government in Victoria returns to doing something like that again ... just relying on private individual investors, who are exiting the market, is just going to make it worse."
Housing Minister and shadow minister agree on one thing, Australia needs more homes.
Read full article at The Real Estate Conversation
The reality is we don’t have enough homes in Australia,’ stated Minister Julie Collins at First National’s 2023 Hobart Convention.
Ray Ellis, First National CEO, stated “the divergence of views about how Australian government should manage housing affordability, the chronic undersupply of new homes and the rental property crisis are the biggest issues facing Australians and the Real Estate industry today”
Housing Minister Delivers First Post Budget Address to Real Estate Industry at First National’s Convention in Hobart
FNRE CEO, Mr Ray Ellis, said that:
“The Government’s expansion of the criteria enabling access to the First Home Guarantee and the Family Home Guarantee will enable many more Australians to tap into the financial assistance they need to buy a home.
“Changing the definition of couple so that family members or friends are considered eligible individuals is a realistic response to the way Australians are today wanting to form households.
“Enabling legal guardians of children to access the Family Home Guarantee clears unreasonable impediments from the system and recognises the significant housing challenges they face.
“Opening the scheme to people who haven’t owned a home in ten years will particularly assist separated and divorced women to regain a foothold in the property market.
“Australia’s inability to meet the demand for new homes remains the single greatest contributor to our rental and affordability crisis. While additional funding for the housing finance arm will help boost the supply of community housing, more needs to be done to reduce the government red tape that constrains development.”
Two-bedroom apartments becoming a dying breed as cost of living crisis bites
Ray Ellis interviewed by news.com.au. Read full article here.
Key considerations for comfortable and affordable retirement living
As over 60s enter their retirement years, they can often find themselves on a fixed income and may need to adjust their living arrangements to fit their financial situation. One of the most significant expenses for many retirees is housing, and finding affordable housing can be a challenging task. Ray Ellis offers suggestions and key considerations for comfortable and affordable retirement living to Starts at 60 magazine.
How renters will benefit from Queensland law reforms
It will soon be easier to rent with pets in Queensland as new reforms come into effect.
Landlords will need to give tenants a reason for rejecting pet applications from Saturday, October 1, 2022.
First National Real Estate CEO Ray Ellis told Sofie Formica the change will benefit everyone involved.
Australians still backing real estate despite interest rate rises.
SQM Research data reflects a slowdown in asking prices nationally, however, a steep decline across the board is yet to be witnessed.
National real estate brand First National has noted that despite this, Australians are strongly backing real estate.
“Depending on where you live in Australia, home values increased perhaps as much as 36.5 per cent in the two years to the end of February 2022, yet we’ve observed declines of only around 3.5 per cent over the past four months,” said First National Real Estate Chief Executive, Ray Ellis.
Strata Inspection Reports crucial when buying property
Ray Ellis, network CEO of First National Real Estate said a Strata Inspection Report can be critically important in the process of due diligence when buying a property.
“Such reports reveal all manner of material facts about the building you are considering,” Mr Ellis said.
“Buyers can expect to see minutes of Owners’ Corporation meetings, where disputes between neighbours are likely to be discussed, as well as other concerns like building defects, drainage problems or upcoming special levies.”
Real cause of Australia’s dire rental crisis revealed. Ray Ellis speaks with news.com.au
The great policy flaw behind Australia’s rent crisis has been revealed – and it’s a problem that runs much deeper than current economic woes.
The cause of Australia’s worsening rental crisis runs far deeper than the economic pressures behind rising interest rates and soaring inflation, a prominent real estate expert has revealed.
Ray Ellis says the crisis will deepen without swift action from state governments on social housing and new build “red tape”.
Mr Ellis, former director of the Real Estate Institute of Australia and First National Real Estate chief executive, warned Australia has nowhere near enough homes to cater for its population, let alone accommodate migration increasing in the wake of the Covid pandemic.
Hot property in Cohuna as prices rise by 50 percent.
On a recent visit to First National Charles L. King (Cohuna, Victoria) Ray Ellis was interviewed by the Gannawarra Times noting the property market very strong at the moment and doesn't seem to be slowing down anytime soon.
‘Zombie’ homes are fuelling Australia’s rental crisis, Ray Ellis says
A zombie home is a property that is occupied only part of the time – such as a holiday house listed on Airbnb – that is not available to rent on a short or long term lease but can generate large profits for the owner.
For example, a good property in a regional town, near the beach or one in inner Sydney could fetch $1000 for a weekend but just $800 on a weekly basis under a leasing arrangement, First National Real Estate CEO Ray Ellis said.
“It’s a lot easier to take your investment property out of the full-time rental mix and put it into the short-term rental mix which is basically AirBnB or weekend accommodation,” Ray Ellis told news.com.au.
“If you could get $800 a week by having someone there full-time but you can get $1000 for a Saturday and Sunday, and don’t have to go through all the extra legislation requirements, you’ll do it, because you’re making the same return,” he said.
‘Zombie Houses’ can save the Australian rental crisis
Australia needs a radical policy shift to solve the growing rental crisis. There is no end in sight for the current rental squeeze, especially with a return to high levels of immigration and international students to put further pressure on the rental market.
“With short stay rental accommodation options such as Airbnb taking so many home off the rental market, social housing today doesn’t solve the problem of those in need during this rental crisis,” First National Real Estate CEO Ray Ellis said.
“Investors do not want to deal with a long term tenant that pays them 600 a week when they can get $1000 a weekend or the equivalent of a year’s rent in holiday times.”
Ray Ellis said federal, state and local governments need to work together to solve the situation.”