Despite 74% of millennials requiring more help than usual in understanding the buying process, it is anticipated that the next five years will see millennials eclipse baby boomers’ real estate spending power with 66.1% of those born between 1982 - 2002 choosing property over lifestyle.
With millennials earning more money than earlier generations, their buying budgets are anticipated to be well above those of Generation X and Y, and it won’t be unheard of for some to make their first purchase in the realms of $500,000 to $750,000.
Ray Ellis, Chief Executive Officer, First National Real Estate says “The expectations we have for millennials from 2018 onwards is based on our members’ observations, which mirror that of data we are seeing from the US. The next five years will see the most spending power of baby boomers eclipsed by millennials, with the majority focused on buying apartments as their first home - moderate commutes to work will be acceptable but the majority will not find the outer suburbs of metropolitan areas very appealing. In essence, millennials are driven by lifestyle. The norm is now I want it, I’ve earned it, I can have it. By necessity, the lifestyle changes that are required to become a property investor are no longer mandatory,”
Millennials are expected to purchase apartments as their first property and seek out homes in locations that complement their lifestyle, are close in proximity to transport and their employment.
They will also seek out property that is ‘move-in-ready’ rather than renovator’s specials, with 48% buying newly constructed homes to avoid plumbing/electrical problems compared to 34% of other buyer demographics.
Internet connectivity has a significant influence in their buying decisions, with the generation geared to seek out property online that is picture-perfect, and they regard internet speeds and choice of telecommunication providers as incredibly important to assessing a potential home. Television lifestyle shows also play a role in their real estate requirements with current home styling and design trends high on the must-have list.
Seeing property only as a stepping stone, millennials are expected to hold onto their first home for six years before moving on to the next better one compared to 10 years for previous generations.
According to new research from REA and Origin Energy, 85% of Australians already believe solar panels increase a property’s value more than any other energy efficient feature.
Technology and smart homes are set to influence the future of property values. I predict the popularity and increasing affordability of electric cars will contribute to a strong demand for solar panel generation, driving property marketability and saleability.
Whilst the actual increased value varies according to location and property type, I believe that in a race for buyers between similar priced properties, those with solar panels will always have the most buyer-appeal.
As Australians continue to grapple with rising utility bills and fuel prices technology will have the most significant influence on the value of properties with solar power generation. The price of an electric car will soon be a more affordable and viable option and the rise of their use will drive demand for solar powered homes because charging at home will be, first and foremost, a much cheaper alternative.
On behalf of my team at First National Real Estate and all of our members, I am proud to announce that First National will once again sponsor Australian lifesaving this summer.
First National Real Estate has announced it will continue to underpin the improvement of life saving skills through its sponsorship of the Ocean 6 ‘First National Real Estate Board Series’.
Ocean 6’s ‘First National Real Estate Board Series’ events will be televised weekly on FOX Sports. Helping lifesavers improve skill, speed and efficiency will help reduce the risk of drownings on our beaches.
The First National Real Estate Board Series demonstrates this network’s commitment to highlighting water safety as an issue for all Australians.
There will be six rounds in the 2017/18 series:
• Queenscliff Beach, Manly – 27/29 October
• Sunshine Coast – 17/19 November
• Wollongong – 15/17 December
• Surf Coast, Victoria – 12/14 January
• Surfers Paradise – 2/4 February
• Cronulla – 23/25 February
One male and one female athlete will be crowned ‘Summer of Surf First National Board Series Champion’ at the conclusion of the Ocean 6 competition series.
Surf Life Saving at our beaches is just one part of the water safety picture.
Each year around this country, too many people drown in rivers, dams and backyards. Awareness of the dangers presented by bodies of water throughout the country is what will make a difference.
During its National Convention in Fiji last month, First National Real Estate used the occasion to officially open a covered utilities walkway for the Naidiri Bay Khalsa Primary School, funded by the First National Foundation - the charitable arm of the network.
The walkway will provide much needed shade during the summer and relief from torrential rain during the winter months. Here is a photo of me officially opening the walkway. It was a proud moment for me and my team.
Principal Mr Ifereimi Torosi, was deeply grateful for the walkway and the investment in Fiji’s education system through the supplies donated.
During the opening ceremony, over 100 member delegates, their families and children donated much needed school supplies ranging from a laptop computer, first aid essentials, plus a vast range of stationery including pens, pencils, books, and sporting equipment.
Mr Ifereimi Torosi informed me the donations would not only greatly assist the students but his school’s four teachers were looking forward to using the generous gifts to assist both the students’ welfare and improved educational processes.
The highlight of the ceremony was the interaction between the 30 Australian children and their Fijian counterparts, enjoying the occasion and doing what children do – having fun!
I am proud to announce that First National Real Estate has expanded its network of offices nationally, opening 35 new locations in the past 12 months.
First National Real Estate’s culture is one of business owners working together, with the support of the best training, systems, technology and corporate assistance available to grow their businesses. As a result of our positive trajectory and our “Business Circles” strategy, we’re attracting more and more of our competitors’ top offices and sales people.
Victoria’s Gippsland district is an example of where the network’s unique culture, brand and membership reputation has enabled it to concentrate an already well-established market share further.
First National Real Estate has maintained a prominent presence throughout the region for more than 30 years, and good businesspeople understand the opportunities that association with our brand and successful business owners represent.
We’re officially opening another new office in Warragul in April, one of three new locations in the Gippsland district that have warmly embraced the advantages First National offers. Through First National Warragul and First National Narracan (Moe), we’ll provide the region’s most advanced property services.
This week, together with my team, I launched an initiative aimed at engaging the First National Real Estate network’s future leaders and giving them influence over the network’s direction.
First National Real Estate is well known for the spirit amongst its membership. It’s vital that tradition continues; that younger agents, property managers and administrators have the opportunity to participate in our cooperative, and that we support them as they build the personal skills needed to take their careers and the network forward’ said Mr Ellis.
With the initiative having commenced in the final quarter of 2016, a series of informal events attracted hundreds of First National’s millennials.
Building on the success of the launch, FN Squad was created and has recently convened meetings in Sydney, Melbourne and Brisbane with presentations from industry leader and millennial coach, Chris Helder – who turns the ‘be positive’ industry upside down. The events were booked out within days.
‘What a fantastic initiative by First National Real Estate; bringing together its next generation and creating an environment of energy, fresh content and sharing success. This is a strong initiative, which will deliver results.’ said Mr Helder.
Participants also had nothing but praise for the events, with John McGregor of First National Real Estate Moonah (Hobart, Tas) saying he thought it was an incredibly exciting initiative.
‘I’ve been with First National Real Estate for 11 years, having started when I was 19. Fostering new relationships that will be the foundation for future leadership is the kind of vision that will keep us at the forefront of the industry. Chris Helder’s presentation was a great example of the network investing in its people by providing the best trainers in Australia. This benefits all our staff, ensuring that we retain the very best millennial agents. I'm excited about our network and I can't wait to see where FN Squad takes us in the future.’ said Mr McGregor.
I went on public record recently saying that there's no time like the present if you’ve been waiting to buy your first home because no matter what you're trying to buy, values in Australia and New Zealand are just going up and up.
According to a CoreLogic RP Data report from January 3, the median dwelling value in Australia for the end of 2016 was $615,000 - an increase of 10.9 per cent through the year. New Zealand didn't perform too differently, with the median house value in December 2016 sitting at $627,905, having grown by 12.5 per cent.
As year-on-year increases show, home values aren't indicating that they're about to slow down. That's why buying your first home right now is a great idea, because you'll be striking before homes shoot beyond your budget even more.
When you own a home, you have the opportunity to make capital gains. As the median value increases in both Australia and New Zealand through 2016 show, capital gains in the space of 12 months can help you to build wealth. In fact, if you own a home for 10 years, the value of your purchase might increase by as much as half a million dollars! You'd have to buy in a suburb that is on the verge of growing, and is highly desirable in terms of proximity to amenities, public transport, schools and major centres - but it is possible.
When you rent in a suburb like that, you get all of the advantages of being close to those sorts of places, but your payments won't be earned back when you leave the home. You'll pay rent over the time you live in the home, and then when you leave, you don't reap the rewards.
Of course, renting is a great option for people who can't yet afford a home deposit, but buying one can shore up your financial future.
First-home buyers have no experience with the buying process, and many find it a daunting task - going to auctions, making bids, competing with others who potentially have a bigger budget. That's where the friendly team at First National Real Estate can help.
We know what you need to do, and we know how to go about it - particularly for first-time buyers. Don't be afraid of making a great decision for your financial future. Get in touch with us today to start your buying journey in 2017 on the right foot.
As Australia’s largest network of independent agents, First National Real Estate is delighted to be recognised as the customer satisfaction leader in Australian property services.
First National Real Estate is committed to customer satisfaction. It is therefore no coincidence that we have now won this award in both countries. We see this as confirmation that our business model provides the right environment and tools for agents to excel.
A critical difference between First National and its competitors is that our membership requirements relate specifically to service delivery, not fees. As a not-for-profit cooperative, we provide everything necessary for our members to be leaders in real estate services and the Canstar Award confirms this.
Please read the full Canstar Blue report here at www.canstarblue.com.au/services/real-estate/real-estate-home/
I was recently interviewed by Lee Woodward, a famous industry trainer in Australia. I am pleased to share with you some of the insights about leadership and how I am working with the under 35 year olds in the First National Real Estate network to embrace the leadership challenges to continue to keep our organisation as a leading real estate network in Australia and New Zealand.
to the interview.
I was interviewed on SBS News in August in which I commented that Australia’s demand for property continues unabated. It is clear homebuyers have been quick to capitalise on the Reserve Bank’s decision
to reduce interest rates to historic lows last month.
As the First National Real Estate member offices begin their Spring campaigns, I welcome you to watch this video of the SBS News segment in which I was interviewed.
Watch the SBS Television News Segment - Interview with Ray Ellis