Real Estate, Byron Bay

Wednesday, August 23, 2006

Pricing

In the Byron Bay area, principal at Byron Bay First National Real Estate, Chris Hanley, says that homes in the area take much longer to sell than in the city. Sixty to ninety days is the city average, but in our area it can be between 6 months and upwards, depending on the price.

In our local market, price is the determining factor in the time it takes to sell a property. In many parts of Australia the vendors have over the last few years realised that if they want to move they have to place a realistic price on their property and it will be sold.

Vendors in this region are still in a transition phase and some are listening to the agents and choosing realistic listing prices whilst others falsely believe the market is still at peak 2003-2004 prices.

Mr Hanley says that buyers today are so well researched and informed through the internet that they know prices of property and comparative value from their study of the market.

Also with pricing, it is vital to get it right from the first day on the market. Why? Because the first 3-4 weeks of a home hitting the market is the prime selling time. There are educated but unsatisfied buyers waiting in the wings for new listings but if your price is wrong they look and leave and do not even make an offer because they realise that the new listing will probably want to wait before they adjust their price to the market.

At Byron Bay First National we believe the key to pricing is information. We provide our clients with objective independent information regarding all the sales in the area and we help them place their property in the right price range in our market place.

It doesn't matter about the location of a property – if it is too expensive it will generally not sell and will sit for long periods unsold in our market.

If you want to be kept informed of the values in your local area, contact Byron Bay First National Real Estate for their unique pictorial market report, information that is available free every quarter.

Tuesday, August 22, 2006

What should I buy in Byron Bay?


We are often asked by investors but also by home buyers where and what should I buy to make the highest capital gain?

Firstly, where should I buy?

The hotspots over the last 12 months are certainly Sunrise Beach, Belongil Beach, and more recently some sections of the old part of town. Sunrise Beach, with the SAE and its new, modern shopping centre and the imminent approval of the old Club Med site, are all factors pushing up values in this popular area.

Belongil Beach has had the second highest residential sale price (over $8 million) and the very successful selling campaign of the ground-breaking EAST project (26 luxury apartments). It remains for many the ultimate location with its north facing beach and small intimate community. Look out here for some other big sales over the next few years.



Finally, the older section of town around Carlyle, Kingsley Street, Cowper and Marvel Streets represent excellent value today. After huge 1012sqm blocks of land with the sound of the sea to put you to sleep at night, this area is only a short walk through the sandhills estate on to Clarkes Beach – or onto the Lighthouse. A very good place to invest.



The final area that is worth considering is the wonderful rural environs around the town. Coopers Shoot with its fabulous views; Possum Creek with its verdant vegetation and strong community; Coorabell, with its north aspect and ocean breezes, and Ewingsdale perched on the edge of town on deep red soil but only minutes from our beaches. All of the rural areas represent excellent value when compared to town prices and with the death of new rural land you can expect strong capital gain over the next few years.



What should I buy?

1. A property that is over 800sqm in size. Why? Because you will be able in the future to build a second dwelling on this block and because the Byron Shire Council is in effect trying to prevent any future lanreleaseses it means your own backyard will become even more valuable. Particularly in the town centre.

2. Buy houses that are BELOW replacement cost. We have 2 homes in Scott Street for sale at present and I believe both are below replacement cost. The value of the land under many old homes is much higher than people realise so do your sums: Land + House = ? You only need to hold these homes for a few years to achieve good capital appreciation.

3. Buy on or near the water. If you can hear it, see it, or jump into it quickly, you are in the right place. Because the total number of properties that fit these criteria probably don’t number more than 1000, the supply limitation means strong long term capital gain.

Chris Hanley
Principal
Byron Bay First National Real Estate

Why is capital gain so strong?



We have set up this site to provide a direct method of communication between Byron Bay First National Real Estate and members of the public interested in anything at all related to real estate in and around Australia’ most popular rural postcode: 2481.

The Bulletin Magazine did an Australia-wide survey at the height of the boom and realised that between 1993 and 2003 the 2481 postcode had an average capital gain per year of 17%. To our knowledge nowhere else in Australia, outside a few hot spots in some of the capital cities, enjoyed such a sustained high level of capital appreciation.

Why is this so?
As the principal of Byron Bay First National Real Estate, and with over 20 years working in this area, I would suggest the following reasons:

1. The entire 2481 postcode is very small with only about 5,500 dwellings and less than 12,000 permanent residents. It is a small market.

2. An 8 year development moratorium put in place by various councils. This has, in short, constricted the supply side of the market so much that even when other markets have been flat or going backwards, Byron Bay has experienced capital gain because of a lack of supply into our market. A good example of this is the Sunrise Beach area of Byron Bay. It has enjoyed a steady capital gain of at least 10% in each of the last few years because there is no more land and so few houses for sale.

3. There is no land. Successive councils have ‘locked-up’ the rural areas and the fringe areas of the town so that there is negligible land for sale. This means that there is no safety valve in our town for people to build themselves, as opposed to buying an existing property. Any market place without some vacant land has a continual upward pressure on prices.

4. Byron Shire Council’s inability to complete and implement a new planning instrument has contributed to planning uncertainty, but also to capital gain, because no new land or rezoning has been released onto the marketplace. This uncertainty has not only made many aspects of our business extremely difficult but it has also continued to put upward pressure on prices.

5. The obvious but no less relevant fifth reason for such strong capital gain is the simple beauty of this place. There are no high buildings. The area is still virtually untouched and if you fly over the town or view it from a boat on the ocean you realise how pristine and underdeveloped our region is. That is why so many people want to invest or own a home in this area.

6. Finally, as Adele Horin wrote earlier this year, there is only one Byron Bay. We have been copied, parodied, lampooned and criticised but not one can deny that the unique confluence of ideas, people, cultures and temperaments has led to the creation of a small but energetic and passionate community, that when discovered by newcomers makes them want to be a part of the place. People don’t just invest their capital here to make money (but they do) – they invest here because they love the place. That is why capital gain has and will continue to be strong.

Chris Hanley
Principal
Byron Bay First National Real Estate

Chris Hanley- Byron Bay’s Best


It’s not often that people associate the real estate industry with culture and the arts, and you may in fact wonder what these two industries have in common. Well, in Byron Bay, the answer is simple- Chris Hanley.

Having dominated the real estate market for over a decade, Chris Hanley is an avid arts lover and has devoted many years to the growth of the arts industry in Byron Bay. You may think after all his hard work Chris would be starting to sit back and enjoy his success, but if there’s one thing that’s clear, it’s that Chris is showing no signs of slowing down. Profile by Lara Martino.

For a man with just one name, Chris Hanley is certainly a man with many titles. Principal of Byron Bay First National, Chairman of the Northern Rivers Writers Centre, teacher, business coach, writer, father, Chris is needless to say, a very busy man. So how did this arts student, turned teacher, turned real estate guru begin his remarkable journey to success?

“I grew up in Sydney where I completed a Bachelor of Arts with majors in History and Political Science,” Chris explains.

“I then went on to complete a Diploma of Education and further studies in Australian Literature.”

After six years in the tertiary education system, Chris began teaching at colleges all around Sydney.

"I’ve always believed education in itself is a very good thing and that’s why I found teaching to be hugely rewarding,” he says.

“However, teaching was not my primary source of income, it was more something I did because it gave me great satisfaction.”

So to earn his living Chris made a decision that ultimately marked the beginning of an incredibly successful, 25-year real estate career.

“People often ask me how I got into real estate, and the answer is very simple. I saw an ad in the paper and decided to give it a go.”

Although his decision to enter real estate may seem a little unplanned, his efforts that followed certainly were not.

Within the first year Chris was achieving remarkable sales results and was quickly working his way towards becoming one of the top players in the industry.

“Real estate is only about two things,” Chris explains.

“It’s about getting people to trust that you are the right person to sell their property and then it’s about finding qualified people to buy the properties.

“I guess the key to these two things is forming good relationships with people and this is something I have been able to do from a young age.”

Deciding it was time for a sea change, Chris moved to Byron Bay where he continued to excel in the real estate market.

When the opportunity arose to become a business partner in Margaret Robertson First National Real Estate, Chris jumped at the chance.

“My partner Margaret (Robertson) was an exceptionally good sales person and a very inspiring woman, and together we created a very successful business.”

And if you’re wondering exactly how successful, the figures can do the talking.

Their company became the market leader in Byron Bay, a position it still holds today- some ten years later- with a market share varying between 30 to 40 percent.

“Margaret has since retired but I still have an exceptionally high calibre of staff and business partners working with me.”

Today, Byron Bay First National has about 32 to 33 per cent market share, meaning every third house in the town is sold by their company.

“The main premise of our business is ethics and honesty and this is how we maintain long term client relationships,” Chris explains.

“85 per cent of properties that we sell are for people we have done business with in the past.”

During his rise to become one of the industry’s top business leaders, Chris surprisingly still found time to pursue his passions for teaching and writing.

“Whilst working in real estate I was also teaching at various colleges in Byron Bay,” he says.

“I’ve taught a variety of subjects including Australian literature, history, business communications, auctioneering and English.

“I also started a not for profit organisation called the Northern Rivers Writers Centre, which incorporates the annual Byron Bay Writer’s Festival, a writing centre and a writing school.”

Although the worlds of art and real estate may be seemingly unrelated, Chris believes his success in real estate is due to his cultural activities.

“When working in real estate, I believe it’s important to have some other outlet to get satisfaction from,” Chris says.

“Real estate has a tendency to gobble people up hook, line and sinker, and a lot of agents place all their self worth on whether or not they make a sale.

I believe my success has been due to the fact that real estate has never been my entire world. I have other passions, my writing and my teaching, to keep me motivated.

“I strongly believe it is these outside interests that have allowed me to succeed in real estate and stay in the industry for 25 years.”

The Byron Bay Writer’s Festival is now in its 10th year and continues to attract more and more writers from around Australia each year.

Chris is also busy growing both his writing centre and writing school both of which run programs, writing courses and mentorships for its 700 plus members. All the while, still running his market-leading real estate company.

You may wonder how Chris stays on top as a one of New South Wales’ most successful business leaders. Well, according to Chris, the answer is people.

With a reputation for his amazing listening skills (which see him recalling past conversations almost verbatim), Chris has a unique approach to dealing with people and he is known for his ability to relate to his staff as a friend first, and employer second.

“In every business that I am involved in, I have surrounded myself with excellent people whom I genuinely like.”

“One rule of business I have learned is to never have anybody working for you who you don’t like.”

“I engage with my staff as much as I can, I love talking to them, helping them out and listening to their stories.”

“As a result I work with excellent people who are a large part of my businesses’ successes.”

As a long time teacher and coach of others, Chris also believes in continually being trained himself.

“Once you’re on top in business, you can’t stay there. You’re either going to move upwards or downwards.”

“The way I move upwards is by constantly studying and training.

“My staff and I attend sales courses and seminars, I work with different training organisations, I listen to CDs, I read books, all with the aim of improving my business model.

“I’ve always believed in the value of training and education, and there is so much available these days, you just have to be willing to learn.”

There’s no doubt that this willingness to learn has led Chris to become the highly respected and successful business leader he is today.

As for the future, Chris will continue believing in and using the “power of people” to help him make significant contributions every day to the real estate and arts industries in Byron Bay.