Perth charges into bear market

Australian Financial Review – Julie-anne Sprague, 4/11/2015 Perth property prices have slumped more than 6 per cent this year and experts say any recovery is at least a year away. According to the Real Estate Institute of Western Australia, house prices in Perth plunged 4.2 per cent in Septmber, the biggest quarterly price drop since… Read More

Happy Birthday – Bernie Kroczek Real Estate

10 Years Old! Ten years ago this September, Bernie Kroczek Real Estate was born! So a Happy Birthday to us. Bernie commenced his real estate career 28 years ago with Roy Weston in Duncraig where he stayed for a number of years. Those were the days when selling real estate meant hours of door knocking,… Read More

West Australia Nurses Boom Time Hangover

So, screamed the headline in the Financial Review! After the biggest resources boom in 150 years it seems, the party is over. Only a few short years ago experienced commentators and business leaders were proclaiming a resources boom lasting decades. Alas, like so many crystal ball gazers, the predictions evaporated almost as soon as they… Read More

Wishing you a very Merry Christmas!

All of us here at Bernie Kroczek Real Estate would like to thank you for your support throughout 2014 and we wish you and your families a wonderful Christmas and all the very best life has to offer for 2015. We hope you enjoy our little bit of fun!

5 Reasons Why Australia is NOT Experiencing a Housing Bubble

The Commonwealth Bank has pinpointed five reasons why house price bubble signs are not evident in Australia. It listed the five factors that typically characterise a house price bubble. It then gave their reasons why they are not evident in Australia. 1. Unsustainable asset prices, but the current situation is: Prices supported by the excess… Read More

Price Growth Loses Momentum!!

Australia has a number of major property markets, mainly centred around the various capital cities. Then there are markets within each state. Even in the capital cities there are different markets. So, I find it somewhat confusing to hear things like “…. Real estate in Australia is booming”, or “.. Price growth loses momentum”. When… Read More

Too Many Units, Too Few Tenants!

This interesting article appeared in the Weekend Financial Review’s property section last weekend, (March 15/16). We thought you might be interested. The article warns investors of the traps associated with buying an investment unit in a market where supply outstrips demand. The cities mentioned with inner city vacancy rates in excess of 6% were Perth… Read More

Five Tips for Buying in a Rising Market

Nationally, property values are increasing and Perth is no exception. Often in a rising market where there is a shortage of stock, as we currently have in Perth, there can be a tendency to ‘rush in” due to fear of missing out. It only seems like yesterday, during the boom of 2006 when Perth prices… Read More

Shelter or Investment?

As you have probably seen in the media, there is a bit of a debate raging between the various commentators and interested parties about whether tax concessions for investment property should be abolished. This is an ongoing debate and comes up from time to time depending on the affordability of housing, particularly for first home… Read More

Merry Christmas

We’ve had a big and busy year here at Bernie Kroczek Real Estate and hope 2013 has been good to you . There’s lots happening next year and we are expecting a very active property market. We wish you all the best for a safe and happy Christmas break and look forward to helping you… Read More

Confidentiality – How Important Is It?

If you were selling a property, what value would you place on your selling agent not disclosing your personal circumstances to the general public? Quite a bit, I’m guessing? Would you want any potential buyers to know your particular reasons for selling your home, and even worse, what your minimum price might be? According to… Read More

Perth Market – Up or Down??

I came across this article posted on Wednesday (July 31st) entitled “Perth housing now strongest vendors’ market since 2006: MacroPlan Dimasi”, by Larry Schlesinger . It starts out by saying: “Vendors will continue to have the upper hand in the Perth residential market due to not enough new houses being built to satisfy the city’s… Read More

What Stops You From Selling Your Home?

Once you decide to sell your home, it can be helpful to start thinking of yourself as a businessperson and a vendor rather than the home’s owner. By looking at the transaction from a purely financial perspective, you’ll distance yourself from the emotional aspects of selling the property that you’ve undoubtedly created many memories in…. Read More

Panic Buying Hits Home in Perth!!

…So screamed the headline in last weekend’s Australian Financial Review. Unlike a lot of the stuff you read in the press about the property market, most of which is written to generate either fear or greed, this one is true. Two years ago there were over 18,000 properties on the market in Perth. As of… Read More

Old Dog, New Tricks!

They say you can’t teach an old dog new tricks. Maybe not, but there is no limit to the capacity of the human mind to receive new knowledge. For example, last week I went to a Brisbane to attend a 2 day intensive course entitled “Motivational Shift”. The course was being presented by former real… Read More

So Predictable

As we embark on another working year following the Christmas and New Year festivities and feast of public holidays, the predictable predictors are out in force trying to forecast which way property prices are headed over the next 12 months. So far we have heard that house prices will fall by 40% or increase by… Read More

Ho Ho Ho… It’s off to work we go!

Well, Santa has done his work for another year and now it’s time for us to do the same! Christmas, for many, is a welcome respite from the stress and activity of the year. Personally, I love the Christmas/New Year period and make a point of catching up with friends and family who can sometimes… Read More

To Buy or Not to Buy? That is the Question!

To Buy or Not to Buy? That is the Question! Interest rates in Australia are currently at their lowest level since May 2009 when they fell to just 3%. If you recall this was in the middle of the Global Financial Crisis (GFC), otherwise known as “The Great Recession”. At the time the Reserve Bank… Read More

Why do I need a Property Manager?

It’s not an uncommon question I hear from landlords. Let me ask you another question. Do you need a property manager at all? Not everyone needs a professional property manager. For example some people have sufficient spare time to deal with the physical aspects of managing their property. Such things as • meeting prospective tenants… Read More

Why your home is not worth as much as you think it is!

Let’s face it everyone, including real estate agents, think their own home is worth more than it really is. Not only do we think our own home is worth more than it really is when we come to sell it, but also our car, our TV, our fridge and the list goes on. This is… Read More

The Boom is Over – Long Live the Boom!

There has been a great deal of commentary in the media about the so called end of the resources boom. Like many people living in the suburbs of Perth, you may be asking the question, “What boom?” It is true that anyone directly associated with the mining and oil and gas industries has done very… Read More

How Time Flies When You’re Having Fun!

Last Saturday August 11 2012 marked the 26th anniversary of my entry into the real estate industry. I commenced my real estate career with Roy Weston Real Estate in Duncraig WA under the excellent tutelage of John Arthur. Prior to that the first 16 years of my working life were spent in the mining towns… Read More

Is it a Good Time to Sell?

This is a question I often get asked in my capacity as a real estate agent. The answer is, “It all depends.” There are a number of things to be considered before selling a property. The first question I ask of people thinking of selling is, “Why do you want to sell?” Sometimes selling a… Read More

Is Vendor Paid Advertising in the Seller’s Best Interest?

I read an article in a real estate business magazine the other day where the author suggested that sellers should be paying more money to agents to market their properties. Vendor Paid Advertising (VPA) has been around for a while but it is something I, as a practising real estate agent for the past 26… Read More

Should Real Estate Agents Guarantee their Service?

I recently went on a bit of a buying spree and purchased 5 electrical items valued from $79 for a heater to $485 for a juicer. As you’d expect all of the appliances came with a written guarantee. Would you buy an electrical appliance or a car or most other things without some form of… Read More

Rational Behaviour Not “Normal”!

This week we have invited respected investment advisor Philip Carman to share his thoughts on how professional fund managers earn their daily crust. It is an interesting perspective but nonetheless something to take into consideration if you are looking to have your superannuation managed by the big fund managers. Philip Carman: Not that share markets… Read More

China Crashes, Australia in Depression!!

I recently attended a seminar where celebrity economic futurist, Harry S Dent, was speaking live via video link from Florida in the US. Harry was confidently predicting the second phase of the GFC, which he said would be worse than phase one. We’ve all heard about the tragedy which is Greece, where no one pays… Read More

Is the Great Australian Dream Dead?

In the good old days of the 1980’s and 90’s it took around 3 times the average wage to buy the average, median priced home. In the 2000’s it now takes 5 to 7 times average wages to buy the same home. It doesn’t take a genius to see that buying that elusive first home… Read More

Negative Gearing – Australia’s Sacred Cow!

The term ‘negative gearing’ is almost synonymous with property ownershop in Australia. Australia is one of the few places in the world where people deliberately buy property with the intention of losing money. Lose money on property???? …. Never!!! Yes, to negatively gear a property is to lose money on the difference between the rental… Read More

Property Values to Fall By 40% !!

There are a number of gloom and doom merchants out there, some from the other side of the world, peddling the line that Australian house prices are overvalued by 40% to 60%. It is true that property prices in WA were over valued following the boom of 2006, when the median price increased by 42%… Read More

Is There Any Value In Going Local?

Often the question in any seller’s mind is whether to use the local agent or to use someone they know and trust and who has the experience but is not local. There are aguments for and against. From a personal point of view as a practicing real estate agent with over 25 years experience and… Read More

Perth Real Estate Rocks!

The question many people are asking me as we return from holidays and the Christmas break is “What will real estate do in 2012?” It’s a fair enough question following the depressed market of the past two years. In fact the Perth property market has been trending down since the peak of the boom in… Read More

Goodbye 2011, Hello 2012!!!

As 2011 draws to a close we can reflect on what has arguably been the worst year for Perth property prices and the number of transactions for over 25 years. The Real Estate Institute of Australia in it’s latest “Market Facts” reports that house prices in Perth declined by 6.3% over the September quarter, to… Read More

Be Careful! Tsunami Approaching!

I was reading the Australian Financial Review the other day (29/11/11) and came across a story by economics correspondent Michael Dwyer. He begins with this, ‘Resilient as Australia is, there might be no escaping at least some of the backwash of the economic tsunami now threatening the entire euro zone”. Whilst the euro plays a… Read More

E=mc2

I’m sure everyone recognises this famous equation Einstein used to represent the Theory of Relativity. The question is how many people actually understand it and can explain it? Well, I for one certainly can’t but what I’ve done is come up with my own theory of relativity aptly named “Bernie’s Theory of Relativity”. Here’s how… Read More

Who’s Pulling the Strings?

Today I’m referring you to a recent report by consumer group ‘Choice’ about how much influence the real estate industry has over newspaper editorial content. You will find a link to the report at the end of this blog if you would like to read it. Essentially Choice is saying that the real estate industry,… Read More

To Pay, or Not to Pay…?

Follow @bkroczek I saw a video recently where a real estate agent was suggesting that agents who do NOT charge sellers for marketing their property, were not acting in the seller’s best interest. I found this to be an interesting and different perspective on this rather vexed question of Vendor Paid Advertising or VPA. It… Read More

It’s all an Illusion!

Follow @bkroczek I saw an article on a News Ltd website recently about what was referred to as “real estate agents latest tricks”. Some real estate agents in Sydney are using computer software to enhance photographs of properties, which are being marketed for sale on the internet. You know how it works, making a less… Read More

No Price, No Sale!

Follow @bkroczek You quite often see properties advertised for sale with no price. For example, headlines starting with the property suburb and then “OFFERS!” If you were in the market to buy something in this particular suburb what would your initial reaction be on seeing a property advertised without a price? Mine would be that… Read More

Do We Do Property Management? Yes, We Do!

Follow @bkroczek In fact we even GUARANTEE our service. WE GUARANTEE TO RESPOND to any communication from you within 2 hours during normal business hours. YOU WILL NEVER LOSE RENT with any tenant selected by us, provided you have adequate landlord’s insurance. If we don’t achieve the rent we quoted, we will MAKE UP THE… Read More

Estate Agents Must Get Real!

Follow @bkroczek I read an interesting article in last weekend’s Australian Financial Review written by Alan Stokes. The article as somewhat entertaining being written tongue in cheek, one would think, or maybe not. The essence of it was that due to the caution and lack of confidence prevailing in the property market nationally, but no… Read More

We’re A Nation Obsessed!

Follow @bkroczek I went in to my local newsagent this morning and was browsing through the popular magazines on display. My attention was attracted to the number of magazines on wealth creation and in particular wealth creation through real estate. Magazines with headlines such as “Cool Market..Hot Profits”, “How I spent $30,000 and made over… Read More

Why We Don’t Trust Real Estate Agents!

Follow @bkroczek Every year the Roy Morgan organisation conducts a poll on which are the most trusted professions. Typically the most trusted are nurses, pharmacists, doctors and school teachers. At the bottom of the pile are car salesmen, real estate agents, newspaper journalists and politicians. Nothing new there! Being a real estate agent, I have… Read More

Anyone for Snakes & Ladders?

Follow @bkroczek We’ve been off the air for a few weeks meeting the challenges of the day, otherwise know as ‘life stuff’, with Gai in England for two weeks and a new grandson just recently arrived. In the meantime, you would have had to have been on a different planet not to know about the… Read More

Danger, Danger, Danger ! ! !

Follow @bkroczek I read a rather disturbing article in the real estate section of last Saturday’s West Australian (July 16) with the headline Aussies Home in on US Market for Bargains. The article read more like an advertorial promoting the benefits and rewards of purchasing cheap property in the United States and achieving something like… Read More

Carbon Tax … It’s all about the Timing!

Follow @bkroczek I don’t know about you but I spent most of ‘Carbon Sunday’ glued to the TV, channel surfing between ABC News 24 and Sky News. It was riveting TV for a political junkie like me. So what do you make of all this carbon tax stuff? I have formed some views during the… Read More

Moooo… ! Don’t Worry, Be Happy!

Follow @bkroczek I was hoping to write about real estate today, but there is not really that much to say that you don’t already know. In short, the market is pretty flat nationally with Western Australia and Queensland faring worst. However, there is a glimmer that things may be turning around: my phone actually rang… Read More

To Open or Not to Open – That is the Question!

“Home Opens” have been part of the real estate modus operandi for at least the past three decades. It is one of the prime methods of finding sellers (yes, sellers not buyers) taught by the various organizations who run the Real Estate Salesperson’s course. Every weekend come wind, rain or shine hundreds of real estate… Read More

Kill The Fatted Calf

While I was away in Germany I belatedly read a report that the Federal Government had banned live cattle exports to Indonesia. This is a typical policy on the run, poll driven, populist response to a TV program, in this case 4 Corners on the ABC. As a result, thousands of people are at risk… Read More

No, Prime Minister

I’m back, and how good does it feel to be home again! While recovering from jet lag after a 36 hour journey home due to the Chilean Ash Cloud, I saw Prime Minister Julia Gillard being interviewed on TV and, for the first time I thought she looked stressed and under pressure. I could also… Read More

Real Estate Agents Falling Like Flies!

As my stay in Germany comes to a close my thoughts turn again to real estate and what is happening back home. As I was surfing the net I came across a story by the Real Estate Institute of Australia president David Airey, which stated that 10,000 out of 60,000 sales representatives have left the… Read More

Aufwiedersehen!

I write this from Changi airport in Singapore where I am waiting to board a flight to Amsterdam enroute to Berlin. The easy part of the journey is done, now for the marathon flight to Europe. I’m off to visit my aunty and uncle who are celebrating their 65th wedding anniversary. They escaped from communist… Read More

Oh Ellie! How Could They Do This To You?

The mornings are getting cooler as the seasons move through autumn towards winter. We may be putting extra clothing on first thing in the morning, only to take it off again by lunchtime. Such was the case with my little granddaughter, Ellie, who turned four only last week. She goes to kindy a couple of… Read More

Slay the Sacred Cow!!

Okay, we’re going to step on a few toes today, so if you’ve got sensitive toes you may wish to stop reading at this point. Would you buy a business which was guaranteed to lose money for the next 10 or 15 years? Would you, as a taxpayer, be willing to reimburse the said business… Read More

The Middle East of America

So they finally got their man. The death of Osama bin Laden swept the Royal Wedding out of the newspapers without a trace. It’s as if the Royal wedding never happened or at best it now seems like a distant memory. It was an interesting contrast: the wedding of the 21st century representing something new… Read More

Ok! Tell me something I don’t know!

About 20 months ago I attended an information (self promotion) seminar hosted by a well known and respected property analysis company. The person conducting the seminar was a well known, respected and often quoted in the media, economist. It was around the time when the United State Federal Reserve (the equivalent of our Reserve Bank)… Read More

“… bye, Sweetie”

So said my 4 year old granddaughter’s kindy teacher as my granddaughter left the classroom with her mother at the end of term. Then it dawned on the shocked teacher what she had said, and, in a state of panic, quickly retracted her ‘… bye Sweetie’ and instead said ‘.. bye Ellie’. The teacher then… Read More

Agents Overprice Properties!

This may come as a surprise to you, but this is what my friend Geoff Baldwin, WA managing director of Remax was reported as saying in The Weekend West on Saturday April 16, 2011. Geoff said, “… many agents were proposing drastically inflated sale prices in free evaluations in a bid to win clients.” This… Read More

Men are from Venus, Women are from Mars

I know once upon a time it used to be the other way around but in this politically correct (PC) world we live in everyone is the same, according to Big Brother. If you want to know more about Big Brother, you must read George Orwell’s classic, “1984”. While you’re at it read “Animal Farm”… Read More

Petrol to Hit $2 a Litre!!!

Some economists are predicting record petrol prices of $2 a litre over the next 12 months. Sounds a bit far fetched doesn’t it?? It doesn’t seem that long ago, eleven years to be exact, that petrol was selling for 60 cents a litre and predictions were for $1 a litre. No one believed it at… Read More

To Save or Not to Save….?

If you are a baby boomer, like me, you may remember your parents saying to you that the secret to a happy and prosperous life was to work hard, save hard and above all else do not go into debt. If you are a Gen Y you can be forgiven for thinking this philosophy was… Read More

Anyone got a crystal ball???

I just read an article in the real estate section of the Sunday Times (27/3/2011) by a well known and respected CEO in the Perth Real Estate industry. The articles was entitled “US Housing Bounces Back”. I have known the author Geoff Baldwin for over 20 years from our time together at Roy Weston Real… Read More

Its Official… Auctions are No Good!

President of the Real Estate Institute of WA (REIWA), Mr Alan Bourke, was reported in the Sunday Times (March 6, 2011) as saying that auctions are a poor choice for sellers. With almost 17,000 homes on the market in Perth, buyers are ever cautious with their money, following the GFC, in a market which has… Read More

Finally, here comes the price crash!

That was the title of an article I read the other day by Kris Sayce, editor of the daily blog “Money Mornings”. Now you may or may not agree with Kris’s sentiments but nonetheless, his views are worth consideration as an alternative to the usual spruiking of vested interests in the real estate and banking… Read More

RBA Rates on Hold

Reserve bank governor Glen Stevens has flagged that interest rates are likely to be on hold until at least the middle of the year, saying the central bank is “ahead of the game”, in its fight against inflation. However, the rate rise cycle appears far from over as Mr Stevens warned that people would need… Read More

Say ‘No’ to Vendor Paid Advertising

Anyone who has sold a property through me will know my views on Vendor Paid Advertising (VPA), you know, that practice where the real estate agent charges the seller thousands of dollars (usually upfront) to market their property. Basically this is simply a way of shifting the financial risk from the agent to the seller…. Read More

2010 – Annus Horribilis

2010 – Annus Horribilis Most real estate agents, if they are being honest will agree that 2010 was a year to forget. In my 24 years in the business it is the worst year I have experienced and that includes the recession of 1990-91. A fellow agent said to me recently, about 2010, that there… Read More

What goes up, must come down!”

It is generally believed that property prices go up every year by around 10% per annum. This is what the media would like us to believe. Anyone who purchased a property in mid 2006 and is selling now would appreciate that sometimes property prices actually go down.

You really shouldn’t read this…

First of all let’s get the bad news out of the way.

Respected research group RP Data reports that the median house price in Perth fell by 4.8% in the three months to the end of August. This follows a 2.6% drop in the March quarter. In addition the Real Estate Institute of WA (REIWA) confirms that the number of properties for sale in Perth has increased from around 11,000 in mid 2009 to 16,000 at the end of September, 2010. The highest number since 2008! No doubt most property watchers would be aware that the market has slowed significantly with Perth being the worst performing market in the country.

Paid Parental Leave

PAID PARENTAL LEAVE – April 2010 The question of paid parental leave (PPL) has been simmering as an issue for some time now. However, it has more recently been added to the auction of promises of both our major political parties as we enter into the, as yet unofficial, election campaign. Given the reasons offered… Read More

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