The Unconditional Blog

The impartial voice of the industry

 
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Commemorating Sir Edmund Hillary in a meaningful way – think big and be bold

Posted on: January 16th, 2008 | Filed in Media commmentary

hillary.jpgWhilst this blog is designed to share insight and perspectives on the real estate industry in NZ, sometimes there are matters that could benefit from a broader discussion as they that have repercussions for real estate at a macro-economic level. The debate over the proposal for a national holiday to commemorate the life of Sir Edmund Hillary is just one such issue.

A public holiday is just that, a day off work – not typically a time to reflect on the achievements and principles of a great New Zealander. If such a day were instigated, as the years would pass so the memory of the great man would pass with it, and Sir Ed was not a man to take a holiday – he was committed and hard working.

For an alternative approach I would like to suggest a more radical idea (one that was suggested to me today over a coffee by a friend) – why not establish a trust fund for all young people to exemplify the principle of Sir Edmund. We are also not talking about a few small funded scholarships per year – why don’t we be brave and try to make a difference to our country and our economy in the name of the great man.

Let’s get the government to be bold and fore go just 1 day’s tax revenue from all hard working and committed New Zealanders. We all know that the government surpluses are taking up too much space in the basement of the Beehive, so why don’t we create an annuity – a rough calculation would put it at $100 million. They have the money and they sure have plans to get rid of it this year so why not do something bold and meaningful with it – something that we can all share in the legacy of.

A fund of $100 million well managed and administered by valued trustees could kick start our global economic ambitions affording many hundreds if not thousands of scholarships each and every year to help young NZ’ers grow and develop skills in this global marketplace – young people who like all NZ’ers love this country and relish the opportunity at some stage to return home to raise a family and in so doing bring back to this country skill, expertise and cash. Which is key for the long term wealth (culturally as well as economically) of this country – something that I am sure Sir Edmund would have been truly proud to put his name to.

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Real estate video – the good and the bad

Posted on: January 12th, 2008 | Filed in Cool sites, Online marketing

It’s a cliche I know, but when it comes to the good and the bad in this world (and especially in the context of real estate) – you never have to look any further then the USA, and in the US it doesn’t get any better than New York. This city has this week been playing host to Real Estate Connect a real estate industry conference bringing together real estate agents and technology companies in what has become a valuable insight into global trends in real estate marketing online.

I have had the pleasure of attending and sharing the NZ experience with my US and international colleagues; hot on the list of emerging trends this year has been the role of video in real estate marketing. Real estate video is a perfect match for video – rich images, exuberant personalities and persuasive selling – the pivotal ingredients of a 3 minute mini-movie!

However as you can image there is clearly a vast difference between the professional video shoot in the made-for-TV school style as opposed to the amateur handycam style. In wishing to reflect this emerging trend I was delighted to stumble across a fantastic site which today hosts a perfect snapshot of what I am alluding too “Best of the Bad – So bad it’s good

Intothebox.tv - the good and the bad of real estate videos

This video is but one of a daily diet of short videoblogs created and hosted by Rachel Natalie Klein on “IntotheBox.tv” – describing itself as the “home for daily videos about real estate-obsessed NYC”. This is the best videoblog I have come across and adds richness to New Yorker’s day by providing an inspiring and entertaining video-bite on the city’s second favourite passion after money – real estate.

It certainly is worth diving into her archives to capture a spirit of New York from a real estate perspective, but also to see the capability and effectiveness of videoblogging as a communication medium – could we potentially see such a feature revealing the true lives behind the curtain of life in Remuera!?

Alistair Helm

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Back to work? – how property websites provide a comfort blanket to ease you back

Posted on: January 7th, 2008 | Filed in Website searching

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It’s back to work today for a fair number of diligent workers after the perfect summer holiday – blessed with summer like-weather!

What’s really interesting is the level of interest in the website around this time of year, the image above was featured as part of a outdoor billboard campaign last year and was not designed to create distractions from the workplace environment, rather it was reflecting what actually happens in the workplace these days!

It may interest you to know that the busiest days of the week on the website are Monday and Tuesday – usually around lunchtime. What is even more interesting is the fact that the first workday back after the Christmas and New Year break tends to be the days with the highest level of visitors. In many ways the power of the internet when used for real estate provides a far more efficient means of keeping in touch with the property market than trawling through endless magazines and newspapers (which doesn’t look so good on the office desk!).

This year appears to be continuing the trend with the first day back (Monday 7th) looking to achieve a traffic of over 27,000 visitors sessions on this one day alone, so if you are one of these web searchers – happy hunting!

These facts of New Zealand real estate also echo those of this recent international survey of workplace usage of the internet by Burst Media provided in the results of their latest survey from early December showing that most respondents indicated that surfing while on the job is often not work related. One-fifth of respondents state that the workplace is the main locale for where they access the internet.

Pretty interesting results from the survey speak about boredom. Respondents indicate that surfing while on the job is often not work related, with over a quarter of online time at work spent on personal activities. When asked why they surf the web at work for personal use, respondents most frequently cited the need to stay informed during the day, other reasons were boredom, staying in contact with family and friends and convenience (i.e. faster Web connection than home, more accessible computer, convenient time to conduct online services).

Only one-quarter of employees feel guilty about using the Internet on company time, so grab that comfort blanket and ease yourself back into workplace life!

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Google “Street View” mapping will add richness to real estate websites

Posted on: January 2nd, 2008 | Filed in Media commmentary, Online marketing, Website searching

Too much information.. invasion of privacy… big brother watching us. Those are the emotive headlines at the news that Google is out in force capturing ground level images around NZ with camera mounted cars driving down your street.

Twenty years ago it was a very real concern as to the degree with which our privacy was being impacted by advancements in technology. Those Orwellian visions have materialised in a very different form from that envisaged at the time, far from being restricted and controlled, I would judge that in today’s world we are more empowered and enlightened than ever to make better decisions.

The ubiquity and pervasive power of the internet has transformed our lives – where would we be without its ability to answer our every question and provide us with a communication tool which has truly destroyed the tyranny of distance and brought NZ to the shop window of the world (or probably brought the world to the NZ shop window).

So given we should not fear this new level of information, lets look at what “Street View” can do for real estate online.

To start with let’s not forget what the current service offers as mapping has really only been available on real estate website for just over a year – street layout and satellite images to all areas of the country (satellite image resolution is variable, however with time the coverage and definition will only improve). This facility enables a very intuitive ability to search for property for sale based on where you want to live.

As an example let’s say you fancied buying a bach on the Coromandel and you fancied checking out Matarangi – the Google mapping on the site clearly shows where all the properties are located along the beach front and allows a clear understanding of which ones are real “beach front”. The standard view can be enhanced to show the satellite perspective as well – all photographed on a perfect summers day from 183 km above us.

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Now the new capability of Google Street View will provide images taken from 1 metre from the ground rather than 183kms. This will provide the opportunity to not only see the house you are interested from the front gate of the property so you can see the true perspective of the house, you will then be able to spin round and look in more detail at the neighbourhood – what the adjoining properties look like, and also what’s at the end of the street!

All of these enhancements and developments will provide a richer and more valuable experience for real estate search – for both the buyer and the seller enabling a more informed buyer to better evaluate prospective properties. Bring it on! – greater openness and access to information empowers the future.

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The growing proliferation of Property Developer TV shows

Posted on: December 21st, 2007 | Filed in Media commmentary, Property Investing

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As the fad of Big Brother and Survivor reality TV shows wains, we seem to be being bombarded with a flood of property developer style TV shows replete with budding millionaires all hell bent on proving that they can do what others can’t.

Not satisfied with the terrestrial operators portfolio of Property Climbers, DIY Rescue and A year to pay off the mortgage; coupled with Sky’s portfolio of Property Ladder, Renovation Rescue and Takeover my Makeover; we now have the new kid on the block of “How to be a property developer“.

This time we are no longer just flys-on-the-wall of other people’s nightmare renovation at their own cost (I always suspected that the TV stations inputted some money?), the latest offering decides to up the stakes to a whopping 250,000 pounds (c.$700k) for each of 2 couples to spend to see who can accumulate the most in a year from property speculating and/or renovation.

Now clearly choosing 2 couples who had a modicum of practical ability and a couple of brain cells would be just too dull for TV, so the selection is a perfectly targeted Gen X couple with the baby-on-the way matched to a couple of “air-head” middle aged friends who have no appreciation of what paint is let alone how to do any DIY.

Now I don’t actually have a problem with the programme or the participants as clearly there is a market for such programming or TVNZ would not have invested our hard earned tax dollars in it – and clearly I watched it! – no what really amazes me is the fact that despite this type of programme there are still people in this day and age who treat property buying with less respect in terms of background research than they do buying a TV.

This show let alone any of the TV shows never seem to show people using the best source of information available in our modern age – the ubiquitous personal computer linked up to the internet. How would anyone with any desire to succeed in real estate not approach the market from the best source of information – real estate websites? – well these TV shows clearly do as they portray their guinea pigs aimlessly walking into a real estate office as the best means of assessing what is available to buy on today’s market.

Why is it that the TV channels never want to show the reality of so many of our daily lives – our use of the internet to search out information before buying anything?

Could it be that TV companies believe that their very future – like that of the newspapers is in serious jeopardy from the encroaching power of The Microsoft / Apple / Google triumvirate?

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Seven tips to selling your house

Posted on: December 18th, 2007 | Filed in Agent Tips, Buying / Selling a home, Online marketing

Buying and selling a house is not, and should not be considered an art – such an important investment / asset should deserve the value of scientific and mathematical analytics. It is for this reason that I was really interested to come across this posting from Redfin a US based real estate company.

“Seven tactics for selling your home” outlines facts borne of scientific data and analysis that should be read and understood by all property owners and agents alike. The data might be from the US, but the relevancy to NZ I don’t think would be disputed. Applying a local interpretation provides this summary.

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1. Don’t overprice your property – clearly the age old dilemma of the vendors expectations being beyond the rational desire of the buyer to pay what they believe the property is worth. But did you know the impact of a protracted sale on the ultimate price?

2. Set your price to show up in web searches – as cited in an earlier post “So what price is that property on the site” pricing to search criteria on websites is critical

3. Best day to list a property – the US research says the best day to list is Friday, classically this is when the weekly magazines come out, but did you know that most searches on realestate.co.nz are undertaken on a Monday lunchtime – listing on the weekend with an email alert on Monday morning can coincide with the peak searching at work on Monday mornings

4. Stay engaged – pretty logical as your property is your most valuable asset so applying the time to the selling process would be a good investment in your time

5. Market the property online – with over 80% of real estate searches starting online this is logical. Added to this is the fact that each listing on realestate.co.nz is viewed for an average of 77 minutes per month; with the website recording well over 100,000 hours of viewings per month by over 240,000 unique viewers

6. Don’t move out of your house when selling – the US research shows a reduce price results as a perception of a distressed vendor

7. Don’t list when others around you may be suffering mortgagee sales – a panicked marketplace is not the time or the place to sell

Clearly there are many more – presentation, decoration, photography etc etc, but it is compelling to see the statistics supporting these key 7 tips.

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Property investors – podcasting brings wisdom from US to NZ

Posted on: December 16th, 2007 | Filed in Online marketing, Property Investing

Real Estate GuysI just wanted to share this link with you if you are an existing or prospective property investor looking for advice and wisdom from those who have been in the business for a good while.

The Real Estate Guys is a syndicated weekly radio programme that is available through iTunes. It delivers a fast paced discussion forum of topical issues and advice surrounding investing in real estate in the US market. Whilst this might not be at first glance a great use of your one hour; all I would say is it is worth a listen as before long you may be like me addicted. Best of all it is free, and there is a sense of being a part of a conversation with people who are as passionate about property investing as you are.

The content is as relevant to NZ despite the references being to the US – although of late the focus of many of their programmes is international real estate investing – including a programme recently highlighting investing in Melbourne.

Technology advances bring this world ever closer. This podcast is for me a great example allowing me to choose what I listen to and when I listen, and as for the ads – well they are fun, but you can always fast forward!

As for property investing in NZ well at this time there are over 600 listings on the site under the search of property investor – everything from a $75,000 ex state house in Dannevirke to a development opportunity in Dannemora, Auckland for $3.5m

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The Joneses – “virtual” real estate or “real” real estate?

Posted on: December 14th, 2007 | Filed in Buying / Selling a home, Media commmentary, Online marketing

The news that The Joneses are planning to list on the stock exchange next year is in someways not surprising. It has many of the hallmarks of a “venture capital funded” / “new business model enabled” IPO. Initial investors are keen to see their risk capital rewarded by a broader share ownership which will afford expansion opportunities as well as realisation of early gain in value.

The enticing figure quoted by Chris Taylor of enabling investors to secure a share of a $1.2 billion market will certainly sow the seeds for a healthy interest in the reverse listing.

What caught my eye was a reference in the article on Stuff that stated that The Joneses planned to branch out into “second-tier” markets, and hoped to have 10 -15 offices in the next few years.

Now my understanding of the business model of The Joneses is that of a “virtual” real estate company – there are no offices of The Joneses on the high streets of Auckland, Wellington, Christchurch and Dunedin – they are a highly developed customer management and marketing business that creates demand through advertising to meet the supply created through exceptional service – that’s the idea at least as I read it, so what is with this idea of 10 – 15 offices??

I personally share the views expressed very well by Mike Green – the MD of Harcourts on his blog that there is a very real prospect in the future of high streets devoid of real estate agents. Expensive office space is currently used to “house” real estate agents who seldom spend any time in the office. Additionally the days of prospective buyers wondering in to offices to find out what was for sale have been completely replaced by online searching.

So what are the future plans for The Joneses?

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Property searching remains bouyant

Posted on: December 13th, 2007 | Filed in Website news

Website trafficTraditionally searching for a new home takes a back seat to the mad rush for those last minute Christmas presents. This year however internet property searchers seem as glued as ever to their laptops.

In an average week over 300,00 unique browsers (unique visitors) across NZ seek out real estate online. This graph shows weekly domestic traffic to real estate websites and clearly shows the growth in online activity in the 2nd half of the year. The anticipated Christmas slow down witnessed last year seems to be holding off, the key question is what factors are influencing this retained interest?

1. Are we just seeing a greater degree of researching being done online – reflecting a more knowledgeable consumer seeking comprehensive information?

2. Are we seeing the power transfer from sellers to buyers – does that motivate some people to see this as a great time to buy?

3. Is there a belief that interest rates are at the peak and therefore affordability at today’s rates can only look better in the future?

4. Is the more compelling and richer information provided by real estate websites driving more reliance on web sites that traditional media of newspapers and magazines?

It would be interesting to know your thoughts and personal experiences.

(As a foot note, the statistics presented here are from Nielsen NetRatings and cover some 27 individual real estate websites in NZ)

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House prices up or down – who to believe QV or REINZ?

Posted on: December 11th, 2007 | Filed in Media commmentary, Money Matters

We seem to have opposing views as to the state of the housing market and all eyes are on the Reserve Bank Governor as to his take on this twist in the property soap opera.

In the left corner representing the state owned enterprise QV we hear that the average price in November was $393,198 with prices now having fallen for the 3rd straight month.

In the right corner representing the Real Estate industry we have REINZ who states that prices have actually increased with a median price in November of $352,000 up from $350,000. This on the back of an increase in sales volumes of around a thousand from October.The key in this tussle is not the motives of the reporting agencies but the principle of where the data comes from and how it is reported. As the old saying goes – there are lies, damned lies and statistics!

The reported statistics from the Real Estate Institute are the easiest to explain. They collect reported unconditional sales data from licensed real estate agents around the country every month – in November there were 7,837 house sales and in the month of November the median price was $352,000. Now a key here is the statistical metric of median price – not average price. Median is the center point of a range in this case the 3,918th sales price when you line up the 7,837 sales from highest to lowest.

QV data is not as easy to explain. Their source of data is the local councils. This data comes in to them slowly over the months following legal settlement of sale that is why they report a figure for data collected for a 3 months. It is likely that the make up of data will cover sales going unconditional up to 2 to 4 months ago, which has trickled into the local authority stats in the past 3 months. Additionally they report average sale price – a very different statistic.

I hope this sheds some light onto why there are differences in the absolute numbers as well as the trends.

As ever with statistics, you will find as many people in favour of one presentation of data as you will another (average price vs.median price), however I firmly believe that timeliness of data should always be championed in reporting.

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