Banks to Increase Cost of Home Loans in Addition to Rate Rise

Not content with the interest rates rise, the cost of home loans is set to increase further with the major banks likely to lift their rates by a further 0.25 per cent in the next month or two

Despite today releasing record profits of $4.4 billion (up 18 per cent) the National Australia Bank has warned today that it couldn't keep absorbing the price pressures that have been added to its own cost of borrowing which, in turn, is used to fund the mortgages it offers.

NAB was the first major lender to lift its home loan rates yesterday in line with the Reserve Bank's quarter of a percentage point increase in the overall cash rate.

But it appears almost certain that NAB's home loans - and that of the other leading banks - will go up again before or just after Christmas.

Thus, regardless of the party that forms our next Government, they will be looking down the barrel at the daunting issues of housing affordability and the increasing financial tightness that families are feeling.

Simon Turner

Is Sydney the Next Target for Al Qaeda?

I was travelling from Sydney to Tamworth recently, on my way to the Marquette Turner country retreat. It’s a great escape from the pressures of Sydney and as I checked in my luggage and received my boarding pass I continued through Security where I was pulled up and searched as I had inadvertently left a pair of nail scissors in my carry on luggage. They were confiscated and I was cautioned and allowed to board the plane. This was on a Saturday afternoon at around 3.15pm. I was wearing a suit and had just finished a successful day of Auctions for Marquette Turner Estate Agents – surely I didn’t look like a terrorist threat!

I started the return journey to Sydney the following Wednesday morning at around 7.00am at Tamworth Airport. I checked my luggage in and was asked if I was carrying anything dangerous in my hand luggage. I assured the young lady that I was not and was issued with my boarding pass and had a coffee with Simon Turner. At no time did I pass through an x-ray machine or have any other type of security to pass other than my promise at check in that I was not carrying anything that was dangerous. The fact was that I wasn’t carrying anything dangerous, however, I certainly could have been. There was no x-ray machine or any other security to pass through. My aircraft was a Qantas Link Dash 8, carrying around 50 passengers plus pilots and crew.

I suddenly realized that I could have been carrying a bomb in my carry on luggage, a knife, 5 litres of petrol or even could have packed explosives in my checked luggage. We were flying into Terminal 2 in Sydney and I was free to cause as much terror as I wanted to. In fact I could fly into Terminal 2 and board a much larger Boeing 737 or Airbus of Jet Star or Virgin Blue (or Qantas Link): I wouldn’t have been required to go through the normal security checks at Terminal 2 as I would have landed and already been in the terminal. This is staggering given the amount of attention our Government has placed on airport security and terrorism since 9/11 and ultimately emphasises how easy it would be for Al Qaeda or other Terrorist Groups to attack Sydney, or any other Australian city.

On the topic of security, Marquette Turner has successfully implemented a security system requiring photo ID to be shown at every open home – we haven't gone to the extent of x-ray machines or bag searches but we have drastically improved the security at EVERY open home.

Our Government should look at the security at EVERY Australian Airport if it is truly committed to protecting this country. Thankfully it was me that was travelling on that flight – what if it had been a terrorist? The attack we all fear on the harbour city or in Australia in general could easily happen if security at EVERY Airport is not at the same level. Michael Marquette

Junk Mail is a load of rubbish!

As the environment continues to be one of the most important topics in the world at the moment I am ever fascinated by the increase of junk mail in both home mail boxes and private post office boxes.

The focus of the world has been on increasing the awareness for the need to conserve our precious resources and yet both individuals and businesses in our local areas continue to proliferate tonnes of unsolicited as their main source of marketing. This is especially true for real estate agents and Marquette Turner Estate Agents has taken a stand against this ever increasing pile of junk by banning "Do you want to sell?" letters and focussing on environmentally friendly communication - namely the internet and email.

Only last Saturday (October 27, 2007) I was in Barry Street, Neutral Bay conducting an auction of a unit for fellow Marquette Turner Director, Christine Watson. I was horrified to see just how many real estate agents had stuffed junk mail in the letterboxes of the apartment block. The free local newspaper is called The Mosman Daily and there was a pile of them scattered near the mail boxes - all of which had been soaked by the rain in Sydney on Thursday and Friday. Most real estate agents in the area feel compelled to waste their vendor's money on advertising in this newspaper even though the latest statistics from the USA have indicated that less than 5% of real estate buyers are finding their properties in the newspaper. The cost of this madness is massive to both vendors and the environment and Marquette Turner has taken the stand that sound, statistically proven sales strategies that actually sell homes rather than promote real estate agents is what we are going to do.

Our 100% sales record for 2007 remains intact even though we have not advertised in papers like the Mosman Daily or Wentworth Courier. I fully support the Lord Mayor of Mosman in her environmental focus and congratulate her on taking a stand to end the endless pile of junk mail in Mosman mail boxes. At Marquette Turner we strongly advise a "No Junk Mail" sticker on your mail box and we hope that other councils take a similar stance on stopping real estate agents and other proliferators of junk mail in their tracks. Michael Marquette

Clients & Customers - What's the Difference?

Clients and Customers – What’s the Difference?

As a buyer of a property, have you ever felt totally ignored by the sales agent? Have you put in an offer for a property, been advised by the agent that it would be accepted and then told you have missed out because someone else has offered more than you? Does this sound familiar? There is one explanation for this. Real estate agents work with clients and customers, but fail to recognise that in this industry there can often appear a distinct difference.

The legal definition of a “client” in the world of property is the person who has signed a written contract with the estate agent and who will be paying the fee for service once the property has sold. In other words, the vendor or seller of the property is the person with whom the estate agent has a written contract or Agency Agreement with and therefore is the person the agent will receive their commission from.

Customers or buyers do not have a written agreement with the estate agent, (unless it is with a Buyers Agent – which is a totally separate agreement) and therefore do not pay any fees to the agent when the sale is transacted. To some agents, this means the vendor is treated with the utmost respect and courtesy, at the expense of the buyer.

Unfortunately many real estate agents lose sight that buyers of properties may well become vendors of properties. Not to mention the lost opportunity to have business referred because of outstanding service.

Thankfully times have changed. Marquette Turner recognises that true customer service is of the major factors both clients and customers seek. Real estate is a service industry after all, and should be no different to the major airlines, etc, in seeking to provide a service that is second to none.

Christine Watson

Email: christine@marquetteturner.com.au

Telephone: 1300 737 778

Should I Borrow the Entire Purchase Amount PLUS Costs?

If you are considering buying a property and are tempted to borrow the entire purchase price, as well as enough to cover all the other outgoings such as stamp duty and conveyancing, Marquette Turner will always advise you to err on the side of caution, as enticing the opportunity may seem to be.

As is always the case with property, make sure you are looking at your long-term goals, and never be unaware of economic factors, regardless of how “novice” you may rate yourself in such issues.

Think of a worst-case-scenario: don’t try to relate to your comfort zone now, relate to issues that may make your like somewhat more difficult.

Remember, the more equity you have in the property you are buying the more comfortable position you are in. This will allow you to weather booms and busts, and all investment cycles.

Listen to your head and think of the long-term. And of course, never be afraid to ask Marquette Turner for a little bit of guidance. Our team are always available to offer our assistance and thoughts (real estate or not!) but remember that it’s always better to ask the question than regret it down the track.

Simon Turner, Marquette Turner

Are Sydney Housing Prices on the Rise?

The biggest question facing home buyers right now is whether or not home prices have started to rise again and is the rise going to be like that of 2000-2003?


Well, here's my thoughts:


The top end of the market is booming with multi-million dollar sales for Sydney Harbourfront homes continuing to set new records with Point Piper continuing to be the stand out piece of Sydney real estate.


Prices in Sydney's west are continuing to struggle with buyer demand lower than supply. The biggest problem facing vendors in Sydney's west is that many real estate agents are suggesting prices that are way too high in order to "buy a listing".


The term " buy a listing" refers to agents suggesting inflated prices for homes, dishonestly trying to create hope of achieving a higher price to win the listing by convincing the home owner that the impossible is actually achievable. Vendors really need to beware of this practice and should insist on evidence to support any suggestion of a price outcome.


I guess the best way of looking at housing prices at the moment is that suburbs of high demand around the harbour and beaches are pushing forward and looking stable and positive. Suburbs that have been traditionally less popular are proving tough going when it comes to sales, however, a sensible and well thought out sales strategy will result in a successful sale. Huge opportunities exist for cashed up buyers who can buy into suburbs like Lakemba which I believe is a Sydney real estate hot spot.


Be realistic with your pricing and sales strategies and choose the agent that proves his or her ability to attract buyers to your home and negotiate the highest price possible every time. Ask to see their qualifications and do not accept that they have been agents for many years as proof of their ability. The largest sales office, the largest sales team or the closest office all mean very little in the internet age and with around 80% of homes being purchased by buyers searching on the net your agent needs to prove that they will and can maximise your sales price.


Look at companies like Google to see that the oldest isn't necessarily the best. Always choose an agent who shows a real point of difference - at Marquette Turner you can expect a proven strategey every time.


Michael Marquette

How Much Money Should You Spend to Market Your Home?

How much money should you spend on marketing when you choose to sell your home? This question is one of the biggest problems facing vendors when examining marketing proposals from real estate agents in Sydney, Melbourne and throughout Australia. Rarely are the true facts ever offered as most agents have no formal marketing or negotiation qualifications. Even worse for vendors is that the entry requirements into real estate are so low, requiring a Certificate of Registration - taking in some cases just three days or even less if completed by correspondence.

The real issue here is what are the facts when spending money with real estate agents? Are they really looking to sell your home for the highest price possible and will their marketing suggestions make any difference? At Marquette Turner we have examined the issues associated with marketing in enormous detail and the reality is very different to that put to vendors by agents with little knowledge regarding marketing - which is in most cases your biggest asset. The fee you pay to real estate agents in Sydney, Melbourne and throughout Australia is one of the largest professional fees you will ever pay! - usually more than you will pay to your Solicitor or Doctor.

The best research has been done in the United States by the National Association of Realtors who examined how buyers found homes between 2004 and 2006. The internet is becoming more and more important in the lives of all Australians and the results of their research cast enormous doubt over the effectiveness of newspaper real estate advertisements. Most agents would suggest advertising in glossy newspapers like the Wentworth Courier and Mosman Daily in Sydney costing up to $3500 per page each week of any marketing campaign. The research from the USA sugggests that less than 5% of properties are purchased by buyers who found their home in a newspaper. The research indicates that almost 80% of all homes sold are found by buyers searching on the internet.

I guess the most important consideration when looking to find the agent to sell your home is what evidence they can show you to substantiate their suggested marketing campaign. What statistics can they offer from independent sources to support their claims and what formal qualifications do they have in negotiation? These questions if answered well will make the process of choosing an agent an easy process and will ensure that you save thousands of dollars in wasted marketing money. You will also achieve the highest price possible by ensuring your agent has formal qualifications in real estate negotiation - maximising your net result.

Michael Marquette

Should I rent or should I buy?

The Marquette Turner team frequently are asked the question "should I rent or buy?" And this isn't just for first-home buyers, but also investors.

Whilst everyone's personal circumstances obviously vary, and with the price of real estate in capital cities these days, it is certainly an important question.

Whilst there is not a simple answer, here's a useful link that can help you decide whether you would you be better off, financially, if you rented and invested instead.

Try moving the investment return assumption up and down to see what a difference it makes. See www.yourmortgage.com.au/calculators/rent-vs-buy

Simon Turner

Smart people use the services of smart professionals

The benefits of education of the property industry to our clients is smart business.

For companies that provide excellent products and services, the most knowledgeable clients are the best clients. The reason is simple. The more our clients know about our industry, the more they appreciate the services provided.

Thus, whether your interest is in buying, renting, strata, investing or just general knowledge, we cannot over-emphasise the importance of being well informed.