Ang Kalatas Volume III August 2013 Issue | Page 19

THE MESSAGE. BRINGING INTO FOCUS FILIPINO PRESENCE IN AUSTRALIA. August 2013 | Vol. 3 No. 11 | Ang Kalatas Australia | www.kalatas.com.au

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PROPERTY MARKET

Laing+Simmons unveils Period homes never lose favour a new growth strategy
PERIOD homes in established suburbs appear to have an in-built insurance when it comes to making a pro?t on renovation as a period home in an established and appealing neighbourhood never seems to lose favour, according to Archicentre. ACT and NSW general manager Ian Agnew said: “Within established suburbs all over Australia there are pockets of period homes with many protected by heritage controls. These homes can vary greatly in condition and can be expensive to renovate. “Period homes can be attractive to renovators as they often have generous sub-?oor and roof spaces, higher ceilings and larger rooms - especially the bedrooms - making them feel bigger and providing more furnishing and storage space.” Mr Agnew said that the successful renovation of a period home will often depend on its condition with an old home that has been poorly maintained usually requiring extensive repair work such as re-wiring, re-plumbing and re-roo?ng to make the property safe. “Timber homes are more easily - and therefore more cost-effectively - renovated than brick or brick veneer homes, however a timber or steel addition to a brick building can always be considered.” Mr. Agnew said, “Before buying a period home for renovation people should be prepared to commission a pre-purchase inspection as part of their investment strategy to avoid budget blow outs as a result of unbudgeted repair costs or protracted negotiations with Council. BOUTIQUE real estate agency Laing+Simmons has unveiled a new growth strategy for the year ahead, at the heart of which is a shared services model unique in industry circles. The company has also launched a refreshed and revitalised brand to coincide with its focus on growth. Laing+Simmons general manager Leanne Pilkington said the new brand will support the franchise network while helping to attract top performing real estate professionals in key markets. “Our new brand has been established to underpin and support the strategic growth of Laing+Simmons as we consolidate our position as the leading boutique operator in key areas with a focus on quality of service rather than quantity of of?ces,” Ms Pilkington said. “It is an exciting phase for Laing+Simmons, as our shared services model provides a unique and powerful point of difference to prospective franchisees looking to build a viable, successful business for the long term,” she said. Areas Laing+Simmons is targeting for growth in NSW include: Newcastle, the Central Coast, Sydney’s Hills District, the Western Suburbs, the North Coast, Illawarra region, Penrith, the South Coast and Sydney’s No rth Shore (among others). The new Laing+Simmons brand effectively reinforces the boutique nature of the company, differentiating it in the crowded marketplace, in an environment where some less discerning larger agencies are reaching critical mass. Ms Pilkington said the rebranding was a response to the changing nature of the real estate market. “Real estate has become more sophisticated and the way housing is actually being consumed is evolving. The behaviour of buyers, vendors, landlords and tenants is changing in the context of access to new technologies and online opportunities,” Ms Pilkington explained. “This impacts the capacity of our agents to reach new and existing customers. Our refreshed brand and franchise offer empowers Laing+Simmons franchisees to more effectively respond to customers’ needs today and tomorrow,” she said. The new brand communicates the advantages of partnering with a real estate professional with an intimate knowledge of their local market. It provides the tools and support to help franchisees build their market share and drive improved outcomes for their customers. Each franchise of?ce will experience greater alignment with head of?ce operations. This extends to the fresh appearance of the entire Laing+Simmons network as refurbishments incorporating the new brand roll out to all of?ces, ensuring franchisees maintain a strong presence in their local markets. The Laing+Simmons shared services model is unique in the real estate industry in terms of its scope, its potential for growth and its ?exibility. “Our model for growth has been developed to target the best real estate operators in various key markets we have identi?ed as important to the selective expansion of our franchise network,” Ms Pilkington said. “The strength of our back of house service offering to franchisees, covering trust accounting, salaries and wages, human resources, employment contracts, assistance with recruitment and training is ideally suited to agents in need of the best resources for their businesses to move to the next level. “Our growth plan involves not simply increasing the number of Laing+Simmons of?ces. We want to take that next step with our franchisees so their businesses can grow at an individual level too, and we offer the services and the ?exibility for them to achieve this.” For instance, Laing+Simmons is af?liated with innovative training organisation Real Estate Academy, meaning franchisees can access dedicated, sophisticated training programs to ensure themselves and their employees enjoy a competitive edge. “The refreshed Laing+Simmons brand provides the perfect platform for us to achieve our growth objectives and attract the best operators in the market,” Ms Pilkington said. “We will apply strict due diligence when evaluating potential new franchisees as our growth plan involves attracting only the best quali?ed agents. However those who do qualify can enjoy all the advantages of our shared services model from day one.”

“They should also establish a clear picture of the likely cost of the renovation before they purchase the property.” Key Actions * Establish a clear idea of the type of heritage property you want renovate. * Develop a budget for both the purchase and renovation as a viability guide. * Allow for a pre-purchase inspection before purchase to reveal any serious faults. * Take advice on the viability of renovating and cost of the renovation before buying. * Investigate any heritage controls or council regulations that may impact on the renovation. Mr Agnew said that renovating a period home and adding a modern extension needed to be carefully planned as getting it wrong could devalue the property through the poor choice of materials or poor design where the period integrity of the property is destroyed.

Is Gazumping Legal?
GAZUMPING occurs when you have a verbal agreement with an agent or seller to buy a property at an agreed price but the property is not sold to you in the end. Instead the vendor (the person selling the property) has decided to sell the property to someone else, usually for a higher amount. In NSW, a property sale is generally only binding on the vendor and buyer when contracts are exchanged between the two parties. Exchange of contracts only occur when the vendor signs their copy of the sale contract; the purchaser signs their copy, and the two parties ‘exchange’ their signed contracts through the agent or legal representative. It is usual at this time for the purchaser to pay a deposit, from 0.25% to 10% of the purchase price. If you are gazumped, neither the agent nor the vendor is obliged to compensate you for any money you may have spent on legal advice, inspection reports, ?nance application costs or enquiries. However, your ‘expression of interest’ payment or deposit (if you have paid one) must be refunded to you in full. Thus, gazumping maybe an unpleasant experience for the purchaser but it is not illegal. Be aware that the vendor is not generally compelled to sell to any speci?c person and can change their mind at any time prior to the exchange of contracts.

DOM MELLA
REAL ESTATE MADE EASY
Vendor may not necessarily sell to the purchaser with the highest offer, but may accept a lower offer from any prospective purchaser. My usual advice to purchasers is, ensure that you have ?nance pre-approval and have legal advice before starting negotiation on any property. If you like the property and the price has been agreed between the parties, try to exchange contracts with cooling off period (usually 5 business days) as soon as possible. In this method, you are required to pay a small deposit of 0.25% of the agreed price (e.g. $750 for $300,000), but this deposit is not refundable if you rescind. In doing so, you secure the purchase of the property and avoid being gazumped. You may contact Dom Mella for more information on 02 8887 5400 or 0403 226 169. Dom Mella is the Principal/Licensee of Ray White Rooty Hill. He’s also a quali?ed accountant with background in Finance & Investments. He’s been in real e state business since 1999. Reference: NSW Fair Trading