Welcome to another 3 minute read on what’s happening in the world of real estate, property investment and more; then you’re out the door.
1. August strongest mortgage month for 3½ years
AFG is Australia’s largest mortgage broker; providing more than 20% of brokers nationwide with access to Australia’s lending institutions; and holding a mortgage book in excess of $65 billion.
In August, AFG processed more home loans than since March 2009, valued at $3,071 million – an increase of 10% on July and 7.4% on August 2011.
Average mortgage sizes have bounced up and down over the last year, ranging between $384k and $404k .
The August average loan size was $397k, up from $389k in July and $384k on the previous year.
Property investors represented 36% of loans, up from 35% in July.
Queensland property investor level was above average at 37%.
Australia-wide, loan to value ratios have risen from 67% to almost 70%.
Most (59%) take out a standard variable loan.
Fixed loans, after dropping for six months, rose in August to 20%, over 17% in July – an indicator that people believe we are near the bottom of the cycle.
All in all, an encouraging set of numbers – we’d call it good news.
2. Results that count
Recently, JA Group auctioneers undertook a random sample of 365 auctions and split them into two categories. The first consisted of properties where owners spent less than $5,000 total on their marketing campaign.
There were 282 properties in this group; and over a five-week period, they received an average of 13.3 groups of inspections.
The second category contained 82 properties, and the marketing spend was greater than $5,000.
The average number of groups inspecting these properties sky-rocketed to 32.2 over the same period of time.
So essentially, JA found that where the marketing spend was higher, there were almost 2.5 times the average numbers of inspections.
Now, that’s not to say that the JA study provides a firm rule of thumb calculation, but their results do support a broad equation behind achieving the best possible sales outcome.
Simply, the wider a marketing campaign, the greater the number of potential buyers that are reached. More inspections lead to greater levels of buyer competition and potentially a better sales result.
3. Become a Schmooze-master
“Schmoozing” has a negative connotation; but Inc.com sees it as an art form that, if you get it right, can help you build valuable networks.
Here are their rules for schmoozing without sleaze.
- Cut out idle chatter – sincere interest in the other person is the objective
- Schmoozing is not situational – do it online and offline
- Try to speak positively at all times – the goal is to build up, not tear down
- Know when to exit; be the first with a follow-up email, a thank-you note, or an appreciative call
- Think about the other person first
- Schmoozing is a balancing act – four parts listening, three parts appreciating, two parts laughter, one part wit.
- Honesty is paramount – schmoozing is about making connections at a personal level in a business context – forget bribery, manipulation or false flattery.
Matusik Pulse Poll
Last chance to enter our current poll. Results, next week – and a new poll, of course!
Just doing my community service here….and it keeps the peace at home….it’s another lovely Queensland morning at the Moggill Markets. Head on down early for fresh produce, a fantastic breakfast, and a true farmers market experience; it’s all over at 11am.
How’s that for a schmooze!
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Michael Matusik is the director of independent property advisory Matusik Property Insights. Matusik has helped over 550 new residential developments come to fruition and writes the weekly Matusik Missive. The Matusik Missive is free, however, reprinting, republication or distribution of any portion of this material, or inclusion on any website, is strictly prohibited without the written permission of Matusik Property Insights and may incur a charge.
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