Tag Archive for: business changes

Industry Future

by Kevin Hockey
Real Estate Agency Sales

How may the traditional Real Estate agency change?

There’s plenty of discussion about real estate models effecting the real estate industry but what about market forced change?

We are in the middle of a changing attitude with today’s younger generation which has real potential to have a genuine effect on how we run our real estate business.

Property prices in Australia now see us with some of the world’s highest values which for us homeowners has been fantastic. But what about those wanting to enter the market?

A 2017 Federal Budget report stated close to 70 per cent of Australians are very concerned, or somewhat concerned, they will never own a property. Only 14 per cent have no concerns.

It continued by saying “More of us believe owning a home is beyond our grasp, and one in five struggle to keep up with housing payments”

The Findings from a Griffith University report by Andrew Worthington stated
“Housing affordability in Australia has worsened significantly in the past quarter century, including both urban and regional areas, and is now among the world’s most unaffordable”.

The facts are, today’s youth no longer aspire to own their own home. They now place travel as a priority. The cost of purchasing a property is a high factor, they simply believe owning a home is out of reach.

I have 2 sons and I’ve had this conversation with them. Cameron, our youngest moved out in 2015 when he was 20yo into a house with 7 mates mostly from school. They paid $840pw for a beautiful big home on Brisbane’s northside in a great area with a pool. Between them they could split the costs to a very affordable level and live in a home they could never have otherwised hope to afford.

We talked about investing in property. Cameron is a steel fixer and has always earnt good money but the cost to buy was too risky he felt. “What if my work stops” he would say, “I couldn’t afford it”. Turned out his industry slowed down significantly and for the last 2 years his work has been very spasmodic.

We also know children are living longer at home with their parents, another method of saving for today’s generation.

Our future buyers are having a dramatic change of attitude toward the great Australian dream. If this continues what will be its legacy?

How could this effect our businesses?

Could Property Management become of even greater importance than it is now?

What effect would any interest rate rises have on the market?

Are our businesses prepared for any of these changes?

How long can property prices continue to increase at this same rate?

What are your thoughts?

Kevin Hockey
Real Estate Agency Sales
kevin@reas.com.au
www.reas.com.au