When you apply certain economic principles to real estate markets, they become the signature expression of real estate economics. This body of competing economic principles directly affects real estate participants such as property owners and developers - under oath of macroeconomic forces - most appropriately in terms of supply and demand. Demographics, interest rates, government policies (strata title etc), and the economy as a whole, ultimately affect the real estate markets; sometimes together, sometimes separately, but equally effective. The Function Of A Real Estate MarketReal estate markets, including the real estate economy they impact, are influenced by several factors. But the major player within these scheme of things is supply and demand. Interested parties and stakeholders wishing to buy, sell, or develop real estate utter life into supply and demand in any given market.Regardless, when it comes to real estate, despite their universal oneness as an economic principle, supply and demand separately have a unique definition. In the real estate industry, the number of houses anticipating buyers’ interests significantly represent demand, and is coherently determined by factors such as demographics, income and the price of housing. Supply, on the other hand, points to housing stock currently available, and has so much to do with developers and renovators.The major drivers of real estate supply and demand are basically market participants. In real estate jargon, this refers to property owners, renters, developers and renovators. When one of these participants build or use a house, certain factors (interest rates, the health of the economy, availability of credit, subsidies and other more controlling incentives) play into the scene of this initiation. These factors command a significant influence on the personal finances of these participants, and gives them every right to determine when, how often, and at what price are properties being bought or sold.The buying and selling behaviour of these participants, greatly dictates every supply and demand in the housing market. Consequently, however, their behaviour creates a slippery slope across a single market; hence, reflecting the health of the accommodating market. Simultaneously, if both supply and demand are on equal terms or slightly higher, where, for instance, demand is a respectful distance above supply or vice versa, the economy of the market will prove healthy. The opposite is true also, in that, the health of the economy of the market will deteriorate. The Importance Of Real Estate EconomicsLikewise, knowing how the real estate market works, we understand the relationship between supply and demand. Knowing real estate economics, we can appreciate the existence of market conditions.Wider in scope than its close relative of housing economics, real estate economics caters to research focused entirely on market trends that effect a structural change resulting in either a positive or negative impact on the industry, as a whole. Real estate economics allows buyers and sellers the comprehensive knowledge of the forces that act on housing prices and transfer of titles within one’s local property market. This thorough understanding also facilitates one’s ability to accurately predict the movement of housing prices, housing supply and demand, in order to be able to offer correct prices and draft compelling offers. Real estate economics helps property buyers and sellers in precisely identifying the best practices for listing a home or the correct channel to traverse in determining the best time to purchase a house. It is the by-product of the relationship between supply and demand which deals a strong hand in the value of real estate and housing inventory on hand.For instance, Port Moresby is currently experiencing a surge in housing supply in one of its major suburbs, say Waigani or Tokarara. Just because there's a growing supply of housing options, doesn't mean it's a good time to list your home as well. Why? Buyers can easily choose one of the new and cheap alternatives over yours. Besides,, both suburbs are currently in the developing stage, so if you hold off selling for now, the value is expected to increase once the new developments have passed, but there is still high interest in both locations.So, immersing yourself in the knowledge of real estate economics has more happier connotations to it than settling for a mere understanding of it.   Real estate market participantsSupply and demand, thus far, have a huge impact on real estate economics, which are incarnations of two distinct groups of market participants: one that drives demand, the other dictates supply. Market participants #1 - OwnersOwners, in real estate terms, rightfully and legally own a house. However, they do not inhabit it. Instead, they rent the house to a third party, after purchasing it. Here, owners are synonymous with rental properties or commercial investment listings, and so forth. #2 - RentersA consumer is a general term used to describe a person who buys products and services for his/her own personal use. But such is the word's diversity that it has an undertone of different meanings and interpretations existing in different industry vocabulary. The real estate industry, for instance, consumers involve both renters and owner-users. Renters, in this case, are consumers who aren't investors, but exclusively use real estate by way of renting; hence, the name. #3 - Owner-usersOwner-users, in this industry, are described as those who rightfully or legally own and inhabit a home; thus, they're sometimes classified as investors or consumers, and represent a better part of owner-occupied homes in a real estate market. #4 - RenovatorsTake note, renovators, though engaged in some form of development, aren't developers. This group participants specialize in renovating old buildings or houses, and then list these properties on the market either for purchase or rent. #5 - DevelopersJust like consumers, the word investors can take on a variety of meanings in different industries, but in real estate, it refers to developers and owner-users, owners and renovators. Developers, in this case, are investors who prepare undeveloped plots of land for building and construction, which eventually qualifies as new property development in the property market. #6 - FacilitatorsIn real estate, facilitators describe those market participants who help speed up the process of developing and purchasing real estate. This group comprises banks, property lawyers, real estate brokers and the like.Factors that affect the real estate marketBy the same token, there are several factors that occasionally prompt the progress of a real estate market, namely the state of the economy, interest rates, buying power and a shift in the size of the population. Parallel to these demand-side factors are house prices, which are insistent on existing inventory. With episodes of increasing demands and limited housing supply, people are vulnerable to rising house prices, increased rental fees, and even the risk of homelessness.Furthermore, the nature of a factor that affects the real estate market is in direct proportion to its ability to influence, regardless of its origin. Let’s now consider these factors: 1. The economyThe real estate market strongly resembles the state of the economy. If the economy is healthy and is progressing positively, expect the same with the property market. But if the economy is suffering, you can expect a real estate market riddled with high property prices, idle listings, and fewer to no sales. While a real estate market is affected by the economy, the latter also has a source of influence in the form of GDP (or Gross Domestic Product). Fortunately, there are some real estate markets that come with a twist. Markets with long-term leasing periods, as in the case of a building or apartment lots, are able to endure an economic downturn. 2. UnemploymentNext in line of factors that affect the real estate market is unemployment. This factor has a substantial impact on economic growth. Only a handful of people are able to own a home even though the rate of unemployment can be high. Worse still, the fear of unemployment can also pilot a decline in the demand for housing. People are of the mind that homeownership is merited on three fronts: personal savings, inheritance and mortgages, of which mortgages have always been the norm. So, the central fear at this point is that when someone loses his or her job, provided they had obtained a loan earlier to purchase a house whilst employed, they won't be able to settle their loan outstanding and the house ends up being repossessed. This line of thinking spells less demand for housing, and many an unhappy connotation to that effect.  3. Interest ratesThe magnitude at which interest rates come, play an important role in leveraging the supply and demand in the property market. For instance, lower interest rates tip the scale in favour of multiple opportunities to secure financing for home purchases, while high interest rates strengthen the opposite effect; thus, increasing the overall cost of buying a house. The real estate market usually suffers under high interest rates. However, whether high or low, interest rates are submerged in government policies or subsidies that usually entertains manageable high purchases.  4. Government policies and subsidiesGovernment policies and subsidies is a broad subject that amasses various corresponding branches which are simplified into tax credits, deductions and other interrelated incentives; not to mention strata title schemes. 5. DemographicsThis particular feature encompasses every characteristic that assists in describing the makeup of a population (in terms of race, age, income range, housing preference, population growth, etc). Established within real estate economics, these moving pieces dictate housing prices and demand. Even so, exerting a substantial dose of venom on the market. For instance, you’re currently employed and own a 3 bedroom high set house. It’s been 20 years since you first started formal employment. Now you’re considering retirement and selling your home, in order to invest in smaller properties. Imagine others like you. This change in conscience alone ensuing a cause of action signals a shift in the real estate market. Although a single statistic, your decision has spiralled into a tsunami of hail marys in the market, becoming one of the factors that dictate housing prices and demand.This in mind, we can now see how demographics, with its various hints, establishes itself as one of the factors that influence the real estate market.  6. Housing supplyHousing supply is normally ensured by market participants like developers and renovators, by way of building and construction, and renovations respectively. Of course, the project wouldn't be conclusive without the involvement of facilitators. Nevertheless, the number of homes resurrected or prepared for listing and rental are centrally governed by existing inventory and project costs. 7. Housing priceHome prices feature well into the demand for housing, simply because they act as an indicator in determining people's investment habit in the real estate market. Common sense dictates that, the higher the price, the lower the demand, and vice versa. The elasticity of prices in line with demand can also be transcribed into various forms such as current inventory of housing, location, buying power and interest rates.  8. Consumer confidenceThe importance of confidence, in real estate, is that it helps in realizing whether or not people are willing to take the risk of getting a loan for a home purchase. The absence of confidence, for example, is when you allow the fear of falling house prices to defer your purchase. 9. Mortgage availabilityIn a good year, banks tend to be keen on lending mortgages, and they can allow people to borrow even large sums of income. The ensuing cause and effect is an ease on getting loans with an increase in house prices, because many people can afford them during this interlude. Unfortunately, such an occurrence is only common overseas, and rarely heard of in PNG. be that as it may, that’s what it’s meant by mortgage availability.Bottom lineThe article outlined several contributing factors that directly and indirectly influence the real estate market. Although few of these aforementioned factors narrate a clear-cut relationship between them and the real estate market, in practice, the outcome can vary.A comprehensive understanding of these factors can mean the difference between a successful buying and selling process, and one that reeks of scepticism, frustration and doubts. This article is meant for informational purposes only and is not intended to be construed as real estate, or investment advice. Hausples encourages you to reach out for professional help regarding your own real estate situation.Subscribe to our email newsletter to get the latest updates delivered right to your inbox for FREE!.

Otherwise known as a Buyer’s Remorse, it is an indication of loss of confidence and has become a slang among real estate professionals. Buyer’s remorse, better referred to as cold feet, usually describes a situation where a buyer pulls out of a buying process, because they had doubts about their decision, or seemed to be seeing only uncertainties beyond the buying process.. For instance, you’re a first time home buyer and you just agreed to the terms and conditions of a contract settlement. In a matter of minutes, you’ll be the new owner of the property. You’re anxious while you wait for a response, nervous the most, but excited at the same time. It’s the moment you've been dreaming of your entire life. Any moment now...5...4...3...Wait! You retrieve your phone in your pocket and you dial your mom, your best friend...You’re so ecstatic that there remains the possibility of calling your pet dog.The countdown seems infinite, and then...Doubt sets in, like a storm brewing in the distance out of nowhere. You say to yourself, “What the hell did I just do?”Exactly, those numbing thoughts and unrealistic fears you can’t keep from criss crossing your mind. “What have I done?” you feel yourself fighting back a terrible gulp. “What if…?” the question rolls off your mind like America’s twelfth amendment in a hail of suffixes forming not one, but multiple words as corresponding questions, all but negative. Root cause(s)One after another, these abstract scenarios keep feeding off your doubts. You're imagining yourself without a job after purchasing the house and how that's gonna solve your loan outstanding. What happens if you leave this life for the next? Who'll take care of your children and your spouse? What will happen to the house since you haven't paid off the mortgage yet?Did you spend more than what you first hoped for? Was the other alternative purchase rational than this one? Was it out of impulse? These are the thoughts common with first time homebuyers, which can subsequently change the wellbeing of the individual if not attended to promptly - that's buyer's remorse. At this juncture, you might find yourself wanting someone whom you can easily confide in, such as a relative or a close friend to smother these inhibitions. But as assuming as they come, sometimes you'd end up with someone who wouldn't be of any help at all. Taking you as irritably gullible, they beguile you with stories of similar circumstances, further adding to your apprehension.  A willing comfort Once you detect this predicament, immediately detach yourself from the conversation and find a willing comfort who won't tend the flames of your distress. Someone who wasn't present during the home buying transaction, yet is able to listen and offer fruitful advice. While real estate agents are trained in helping you handle buyer’s remorse, you might still prefer someone who simply had nothing to do with your homebuying endeavour. Despite being contaminated by these uncertainties, "Ben Frank" (Benjamin Franklin) the hell out of the situation. In other words, weigh the pros and cons of the circumstance, with Ben Franklin's Effect in mind. Get a piece of paper and a pen and draw a dual column table, titled 'To Buy Or Not To Buy'. Divide the row right after into two separate columns; one labeled YES, and the other NO. Now you make a list of reasons why you should or should not buy the house on opposite sides, under the corresponding labels. To Buy Or Not To Buy?NoYesThe home is too expensiveThe home is not too expensive because you are pre-qualified and pre-approved by a mortgage lenderThe mortgage payment is much higher than the rentThe tax deduction for mortgage interest makes your payment less than rentingYou don’t know anything about home repairThere are more than one way to skin a cat. In other words, if you don’t know anything about home repair, there’s always the choice of seeking help elsewhere.Even better, if the seller offers to cover your first year’s repairs as part of the home warranty. You might not like the home after living there for a few monthsDo you know who Eddie Murphy is? He once said, “All men are sculptors, chipping away the unwanted parts of their lives, trying to create their idea of a masterpiece.”If you have that kind of mindset, guess what? It is possible you might love the home even more after living there for a few months, as you chip away at the unwanted to make it suitable for you.The home requires upgrades and you can’t afford to make any improvements.You can make home improvements as your budget allows, if it’s in your DNA. A huge boulder suddenly falls  out of the sky onto your home, smashing it into piecesIf a boulder was suddenly regurgitated by the sky directly onto your house, then you have more things to lose sleep over than your house  The funny thing here is that, while your doubts continue to flood your mind as you begin listing your reasons, you will realize that you won't seem to have any real cause to buy the house. However, once you complete the table, you'll be surprised to find that there are a number of good, in fact, excellent grounds to buy the house, after all.  What is the Ben Franklin Effect?According to Wikipedia, it is a proposed psychological phenomena. Nonetheless, the effect is named after Benjamin Franklin, one of the founding fathers of the United States, and it was realized in a note written by himself of borrowing a book from a rival who became a good friend of his until his rival’s death. The Ben Franklin effect refers to the occasion where you ask someone for a favor and, in doing so, they do. This particular person whom you just asked will then be obliged to help you again in the future. However, it borders on the person's willingness to help, and not by way of force on your part. And there are many happier connotations to it if used correctly, such as in this case where it’s not a disdain if you sought help within yourself or elsewhere. In a way, the Ben Franklin effect ties in with reciprocity and cognitive dissonance, which will be referenced in detail in later articles.  Remember your primary reasonsEqually effective, make sure your preliminary reasons to buy the house make it on the YES column. Doing this might just unveil the primary thrill and tension of buying the house in the first instance. It was there all along, but your mind was too tainted to realize.These reasons can embody the need for space, for privacy without much hassle, or because growing up you've seen how mum and dad were kicked out of the house by your uncles, and the only place to shelter was a makeshift tent. Now you’re in a position where you can easily buy a house for both mum and dad, so, nothing’s gonna stand in your way. The rest is urban legend.This system of reasoning is the nemesis of buyer's remorse. Also remember that it's not uncommon to have buyer's remorse. It's phenomenal, it's uninvited but it's natural and manageable. You just have to deal with it in a certain way that it has no power over your circumstances.This article is meant for informational purposes only and is not intended to be construed as real estate, or investment advice. Hausples encourages you to reach out for professional help regarding your own real estate situation.Subscribe to our email newsletter to get the latest updates delivered right to your inbox for FREE!.

Envision yourself standing in the driveway of your property, covered by sweat from head to toe, with an icy glass of water in your hand. Your heart beating momentously. Your senses heightened, refreshed in a way no other activity would have achieved than the DIY improvements you just did to your home. After twenty years of bonding, it’s time to let go. You’ve cried, you’ve laughed, you’ve loved. Now it’s time for goodbye. Deep down, you know it isn’t easy, but it had to be, because your desires to relocate could not be tamed. It was one or the other, and you’ve justified to this point: to sell your home.It’s a typical scenario many homeowners come to when it’s time to sell their homes. But selling a home as an idea is one thing. Knowing the pitfalls to avoid when selling a home is another.We get it! Without being well informed on how to go about selling your home, it can often be somewhat contemptuous, unless you’re a real estate professional. The goal of this article is to help you understand the seven things that foreshadow the selling process, and why you should avoid them.A checklist is also provided at the end of the article to keep you in line with your goals in the process. 1. Failing to enlist an agentUnless you’ve sold a dozen properties and this will make your hundredth, never underestimate the expertise of a real estate agent. Overlooking an agent means ignoring the Multiple Listing Service (MLS). One of the most unavoidable mistakes you would make in selling your home is thinking it is quite easy. Unfortunately not!Do you know what it takes to get the best price for your home? Do you understand the current market trends? Do you know how to leverage your selling strategy to get the best out of the market trends? Do you know why you need good quality photos of your house? Are you able to sell your property with an effective description in order to sell your home quickly?If you’ve answered “No” to these questions, then that’s what you’ll be missing out on, when you forgo the expertise of a real estate agent.    2. Overpricing Every seller wants a good ROI, and that's traditionally understandable, because why else would you be selling? There's no such thing as Selling-For-Free or a Free Sale. Needless to say, it's humanly natural to want a little bit more than what was originally intended - a quality that is in itself more mundane than it should be.One of the biggest mistakes you would make in selling your home is to overprice your home. Unless you’re a clone of the Wolf of Wall Street, overpricing depicts the greater of two evils and does more harm than good.A menacing fact about the real estate industry is that a property that sits on the market for quite some time tends to depreciate in value and impact, and is a telltale sign of costing an arm and a leg. This is what overpricing can do for you, and it’s a position you don’t want to find yourself in.A river, for example, cannot be beaten into submission. Rather, you must surrender to its current, and use its power as your own.Be realistic. Be reasonable. Be content with what you have and can utilize. Always opt for the fair market value or slightly less.  3. Scant marketingOr so the saying goes.In an age where buyers normally begin their searches online, everything traditional about getting the word out becomes irrelevant. You see, attention is a scarce resource nowadays. The moment you put up your house for sale, at the back of your mind you’re tempting buyers. And what better way to tempt buyers than to market the meaningful aspects of your house? The only way to get a successful sale is to utilize all the marketing options available to you. That means quality listings description backed by high quality photos for adequate coverage. Then you have newspapers, notice boards, agent websites and Hausples.com.pg. Unlike in the past, where you would rely on just one photo of the house, a ‘For Sale’ sign thumped into the front lawn, and few kina and toea to do the marketing for you.What you want is to generate as much interest as possible. The more people who see your house, the better the chances of selling it.Again, a professional agent will make it all the more smooth for you.  4. Home is unfit for viewingWhether it’s getting prepared for a hair cut or for buyers to view your home, being well prepared goes a long way in any given cause.Removing clutter, rearranging the furniture, mowing the lawn, brushing up on every inch of your home in order to be presentable in the eyes of prospective buyers can mean the difference between success and despair.It’s all about presentation. When you feel happy inside, you look presentable outside. When you upgrade the decor of your home, you indirectly accentuate the outward appearance of it. Bare that in mind. 5. Poor quality photosThink about this article for a sec. Did you look at the images first or the words?Most often than not, you’ve heard the cliché, “a picture tells a thousand words”, yet it cannot be stressed enough. There is real value in using quality photos to promote your listing description. Photos or images not only tell a thousand words, but a story. Your life’s story, your values, and your inspirations. Human beings are visual creatures, which is why about 75 - 80% of the human brain actually dedicates itself to visual processing. It’s no wonder photos/images easily grab our attention before words, when both are combined.Therefore, you need to have quality photos of your home. If you can’t meet this standard, engage a professional photographer. If you can’t find one, your agent can - provided you enlisted an agent in the process.So, learn as much as you can about the importance of images and use that knowledge to your advantage when selling your home.You just don’t know what language it might speak to prospective buyers. 6. Being present at the time of viewingOne of the most misunderstood elements of selling a home - never be present during the time of viewing by prospective buyers. The fact of the matter is, buyers prefer to examine a home in peace and leisure. They prefer discussing stuff with their partners or agents in private, rather than in front of you.At this point, it becomes the wading pool of both a professional agent and your home. This is where your home and the agent team up to negotiate with buyers. This is where your absence is mandatory, in order to successfully close the sale.Why?Emotions and unanticipated showing of areas that mean nothing to your prospective buyers.So to avoid that, when it’s viewing time, let your house and the agent do the selling while you go visit the nearest second hand clothing shop, come what may. 7. Being emotionalOf course, you have a special bond with your home. A bond forged by every moment of your childhood journey to your adulthood; a lifetime of memories bundled into one, to be sold in a matter of months. How moving... But understand this, buyers do not share your emotions. Buyers see your home as it is, not how far it has brought you, what memories you shared, how much you’ve spent on renovations and whether or not it holds a special place in your heart. Remember, a decision is a battle between two arguments. At the end of the day you will have to settle for one over the other. And If that argument is to sell your home, collect yourself and do what needs to be done. Sometimes you just have to forget what you feel, and remember what you deserve, what you must do - and this is true in the selling process. The absence of emotions lives you with discipline, self-control and intelligence. But when emotions are in control, what is meant to be accomplished remains unaccomplished, discipline drops away to nothing, time drags on and self control becomes an imagined word thrown around by men worthy of inaction and baseless talk. Moreover, if you’re serious about selling your house, set aside every emotional attachment and focus on your goals.  Homeseller’s ChecklistEnlist a professional agent: selling real estate involves an array of marketing, contracting, negotiations, evaluation and closing. Hausples partners with a variety of real estate professionals you can talk to today. Don’t overprice: pricing your home too high will disinterest prospective buyers from making any offers, and your property could sit on the market idle for months on end. A realtor will have a good idea of similar houses on the market and the type of prices they’re garnering. Make use of that knowledge.Declutter: tidying up in and around your home, storing away unwanted items and rearranging furniture in preparation for photographers and buyers only serves to market your home well. First impression is everything, you get the picture.Good marketing: an experienced, licensed real estate professional will have the best tools, tips and advice to help market your home. Professional photography and video marketing contribute to the propensity of good marketing. If you want to get the best out of selling your home, you need the best help from an agent. This article is meant for informational purposes only and is not intended to be construed as real estate, or investment advice. Hausples encourages you to reach out for professional help regarding your own real estate situation.

Hausples.com.pg is PNG’s best source of real estate information via our website and apps (iOS and Android). Hausples works with real estate agencies, property management companies and developers all over PNG to showcase over 3,500 properties for sale and rent.Our website and app incorporate a real-time chat function similar to WhatsApp to allow property hunters to speak directly with agents at any time. Many property listings also include 360° virtual reality tours to give users a true sense of the property. Hausples also provides detailed market trend information, real estate news and operates regular real estate expos to bring all of PNG real estate under one roof.Types of Accommodation in PNGThere are broadly five different types of residential property in PNG. These are reflected on the Hausples website when searching for a rental:ApartmentServiced ApartmentTownhouseDuplexHouses (high and low set) There is also a sixth type of residential property known as a ‘compound’, which contains many different property styles within a gated community. Inside a compound, there may be mixed types of accommodation, such as both apartments and high-set houses.Most properties, whether residential or commercial, offer security services along with backup water and electricity.Apartments in PNGAmericans call them ‘apartments’, the British call them ‘flats’, and Australians call them ‘units’. A subdivision of a bigger building, self-contained with its own bathroom, kitchen, two or more rooms, and all on one floor, is classified as an apartment in PNG. Apartments are the most popular property type for expatriate rentals in PNG because of their convenience and security.Serviced Apartments in PNGServiced apartments are apartments that cater for the higher end market and usually have one or all of the following services included: fully furnished, all white and brown goods provided, security alarms, access to maintenance services (electrician, plumber, etc.), access to a pool, gym and other recreational facilities, airport shuttles, WiFi access. Townhouses in PNGA townhouse is one property type that causes some confusion. What Americans, Australians and Papua New Guineans call a townhouse is what the British call a terrace. Townhouses typically adjoin each other with a shared wall and are generally two storeys with their own front and back yard. In PNG, townhouses often share common facilities like a pool and recreational facilities. Townhouses commonly offer security, back up water and electricity.Duplex in PNGA duplex has only two units attached and offers the privacy of a front and back yard; some may offer shared facilities like a pool. In PNG, duplexes also provide security and backup water and electricity. Houses in PNG (high-set / low-set)High-set houses are the most common houses in PNG and are built on high stilts with a large verandah to encourage air circulation. They typically have three bedrooms, including one with an ensuite bathroom, and car parking space for two vehicles is usually located under the house. In contrast, houses at ground level without stilts are ‘low set’ houses.Compound (gated communities) in Papua New GuineaCompounds are not a property type per se; they are instead a gated community that might house the same or different types of accommodation, such as apartments, duplexes and houses. Compounds generally offer high levels of security and backup facilities (water and electricity), plus shared amenities such as BBQ facilities, pools and gyms. Compounds are a popular choice for foreign residents in PNG.Rental Prices in PNGPapua New Guinea, and Port Moresby in particular, has relatively high rental values compared to other countries. There are several reasons behind this; the cost of security and backup facilities (e.g. electricity) are the primary reasons; however, the availability of state land on which to build has increased land values significantly. Rental prices are usually advertised as a weekly rate exclusive of GST (currently 10%), and invoiced monthly in advance.The ‘Market Trends’ section of the Hausples.com.pg website provides detailed monthly pricing insights: The median asking price for sales and rentals by property type (house, apartment, land and commercial).The yield of different property types (median advertised sale price divided by the annual rental price).The popularity of different suburbs and property types (measured by monthly search volumes on the Hausples website).Indicative Rental Prices for International ResidentsPlease see the Market Trends section of Hausples.com.pg for detailed monthly pricing trends.   Apartment per week 1 Bed2 Bed3 BedMid-RangePGK 1,000PGK 1,500PGK 2,000LuxuryPGK 2,500PGK 3,500PGK 4,500+ House in a Compound per week 1 Bed2 Bed3 BedMid-Range-PGK 2,000PGK 3,000Luxury-PGK 3,000PGK 4,000+ Mid-Range: Mid-range describes properties of a more affordable nature. Mid-range properties are typically located in the Korobosea / Boroko areas and will have the necessary security features in place.Luxury: Luxury properties are more likely to be closer to the CBD, such as Touaguba Hill and Paga Hill. There are also larger gated communities in the Waigani and 6-Mile areas. They would typically be either new or refurbished and have more amenities, such as a pool, gym and BBQ facilities.Security in PNGPapua New Guineans are accommodating, friendly and loyal to a fault. Despite this, the fact remains that PNG is a high-risk country for travellers. The primary security risks in PNG are urban crime (theft, carjacking and assault), domestic violence, robbery and border security. Unfortunately, the main concern for expat visitors and locals alike is urban-based violent crime, which occurs at very high rates nationally. Such crime has made Port Moresby and Lae somewhat hazardous places to live.Given the high crime rates, those moving to PNG should prioritise security measures when considering accommodation. Gated and guarded compounds are a norm, and vehicle tracking and secure taxi services are standard. Ensure that you fully understand the level of security of any potential rental property, and be prepared to pay a premium to secure a property with 24/7 guards and surveillance.Top Housing Security Tips For PNGPhysical barriers (fences and bars)Most homes have a surrounding fence and security bars covering the windows. While these are deterrents, they are not a guarantee of safety. Keep the ground floor windows closed at night and ensure that all doors are locked.Security GuardsThe most common form of security are static guards, a physical human presence looking after your home, generally on a 24-hour shift basis. There are many reputable security firms in PNG, and most companies supply two-way radios in the unlikely event that backup is required.DogsFor those planning on staying in PNG for the longer term, dogs are excellent security guards. Most apartments and compounds are not pet-friendly, but stand-alone houses usually are. There are dog breeders in the country, or you may adopt a dog from the RSPCA.AlarmsSome properties will have an alarm system pre-installed. Alarms usually include panic buttons and sensors which alert a security firm in case of a break-in whilst simultaneously activating audio and visual warnings to alert onsite security. Speak to your landlord or a reputable security company.General Awareness in PNGEven in built-up areas during the day, you should be aware of your surroundings at all times. Know where you need to walk from and to, and ensure you are vigilant of the people around you. Generally, it is best to avoid large crowds. Also, be aware of your personal belongings and display expensive items.PNG Backup Electricity and WaterMost of Port Moresby’s electricity comes from a hydroelectric power station outside the city, with several backup gas and diesel turbines. However, the distribution system is questionable, and power outages are, unfortunately, a fairly frequent occurrence.Most compounds and apartments have a communal generator that will start automatically in a power cut. The upkeep of the generator is typically the responsibility of the landlord, agent or body corporate. Standalone houses may include a backup generator, but the tenant normally bears the cost of refuelling.For people who own sensitive electronic equipment, it might be worth considering the use of an uninterrupted power source (UPS).Similarly, most properties have large water tanks in case of water cuts or low pressure. While water should be used sparingly during a cut; shortages are usually short such that backup tanks remain filled.Lease Agreements in PNGA lease agreement is a legally binding agreement between the agent or property manager and the tenant. A reputable agency will have the agreement ratified by a lawyer, and the tenant bears the cost. The price for this can be between K800 to K2,000.PNG Rental Payments It is common for employers to cover the rental costs for their overseas workers and often have a budget for their employees. Employers will generally pay for the bond fees and legal fees.Rental paid on an employee’s behalf is deemed income received by the employee and is therefore taxable.Tips For Moving InElectricityPNG Power is responsible for the transmission of electricity in PNG. Most homes have an Esi-Pay meter for which you can buy credits at most major supermarkets. The minimum purchase is K15 which will last a few days for a typical household. Top-ups can also be purchased online or via mobile phones. A receipt is issued after you purchase credits with a unique number then typed directly into the meter to increase the units available.InternetThere are several internet providers in Papua New Guinea, including point to point and ADSL connections. However, the most common is to use a 4G wireless router using Digicel, Telikom PNG, or Bmobile. Data can be pre-purchased directly to the sim card, and a monthly package will cost ~K150 for 30GB.WaterWater costs are usually borne by the landlord, at least up to a certain amount. The water is generally considered drinkable; however, many incoming visitors prefer to boil tap water before drinking it. Several bottled water suppliers can deliver water and cooling dispensers for around K22 for a 19-litre bottle.GasGas is commonly used for cooking and is widely available in canisters from hardware stores, garages, and supermarkets. Customers must bring the empty canisters and exchange them for full ones.Smaller sized bottles are between 4.5kg - 9kg and suit barbeques.13kg bottles are sometimes used in residential kitchens and can be installed directly by the tenant or owner. Some houses required 45kg bottles, and these are installed professionally due to the weight.A 13kg gas refill will typically cost K126 and lasts 3 to 4 months.PhoneThere are three major telecom providers in the country; Telikom PNG, Bmobile and Digicel. All providers have good coverage of the main cities; however, the range in rural areas is often limited. For those travelling off the beaten path, it is well worth considering satellite services.Telikom PNG can provide landlines, but these are rarely used in residential homes nowadays. BMobile and Telikom PNG are part of the same group, and their prices are identical. Both networks offer phone and data credit that may be purchased via scratch cards, direct top-up or online. Several “bundle” packs are available, such as:Data plans (K150 for 30GB for 30 days).Moa Packs (K32 for 100 mins talk time, 100 SMS and 1GB for 30 days).International call passes (K19 for 60 mins over 3 days) plus a variety of night passes.Digicel is PNG’s alternate phone and data network and has similar pricing and coverage, such as: Data Plans (K200 for 20GB)Bundle Packs (K110 for 160 mins, 120 SMS and 1.5GB for 30 days)

Picture this, you’ve done the reckoning, forethought your way through a hazy fog of this and that, no and yes, and...yes, and finally decided you want a house. Deep down you know it had to be and it will be; why do you think you made it this far? But just thinking about owning the house is one thing. Actually owning it is something else. To complete this stretch, you need to conquer the buying process. This is where it gets interesting - in reality, that is. The Buying Process. A phrase that’s as exciting as stressful. But if you know what you want, and you know what to expect, why freeze now?...Prioritize. In our quest to establish a clear and concise home buying process in PNG, Hausples engaged the expertise of Strickland Real Estate’s sales consultant, Mr. Mutien Mays. The meeting with Mr. Mays provided the ripples in a pond for this article.Here’s a step-by-step guide we had established. 11 steps in all, with the intention of being as basic as we can. (Note: you can view the steps in a different order depending on your experience as a home buyer.)  1. Personal financial strengthFirst and foremost, before you consult a lender with your loan enquiries, it is advisable to have your personal financial records on hand. This is a win-win situation on two fronts: helps the lender determine your loan repayment strengths, and helps you correct any errors that may threaten your loan eligibility.Your records, for instance, should prove the following: Place of birthCurrent bank statementRecord of bank account transactionsPayment history of previous loan (if any)Amounts owedPersonal account transaction historyStatement of existing 10% downpayment, etcHomebuyers who pursue special loans such as BSP’s First Home Ownership Scheme are not distant from these prerequisites. Therefore, knowing where you stand when it comes to buying property is the first step in this buying process. 2. Hunt for property“So the first step is to get your money in order. Then after that...you go out with whatever budget you know you can work with; you can go out and look at acquiring property within that budget. That’s the easiest way of doing it,” according to Mr. Mays. Once you’ve established your financial position, it’s time to put an end to your dread. It’s time to hunt that property you’ve customized mentally; the property that defines a home according to you.Since the relationship of Google with smartphones has somewhat become a staple diet in PNG, of course house hunting online will have to take place. Scouring your neighborhood and price range comparisons will also factor into the equation.In essence, it’s best to know what you can afford before any form of dealing can manifest. 3. Get pre-approvedStrategizing in a home buying process means applying for a loan earlier, right after you’ve assessed, to a favorable conclusion, your personal financial record and the property you want to purchase.. 4. Engage an agent The market that has your ideal property, at the right price, at the right place, who do you call? No, not the ghost busters!  Your best friend, your confidante, a professional who knows the where, when, what, how and why of the real estate market: your real estate agent.Engaging a real estate agent earlier in the process, also reinforces your chances to get the best deal out of your pursuit for homeownership. Not so long ago, investors rarely dwelled on the need for agents as guides to the home buying process. A simple mailed letter intended to establish a connection and possibly a purchase deal was enough. Today, the need to engage a property agent is as crucial as the need for clothes. So go ahead and speak to as many as you can. Guaranteed, you will come across one that fits soundly. Worthy of note, ensure your agent is a member of REIA. 5. Home inspectionYour agent will know the type of house you’re after, and will help you set the stage for a home inspection. Make time to go along and see what your ideal house has in store for you. A home inspection is a good starting point to note things about the property you may or may not like. This is also a chance to decide if the property is worth the price it stands for, and if it ticks off your tri-lateral list of ‘must-haves’, ‘would-haves’, and ‘deal breakers’, up close and personal. 6. Make an offerBetween an experienced home buyer and a first home buyer, butterflies in the stomach are a given, when it’s time to elicit an offer for the first time. But the feeling eventually subsides as your awareness of the bits and pieces of the process come undone.At this point, along with your agent’s industry knowledge, you can come up with a compelling offer that will have the effect of satisfying both ends of the scale. Your agent will be best placed to help you draw up an exceptional offer that’s within the boundaries of legality.Once the offer has been discussed, the waiting game begins. Walk back and forth across your lounge room, kick an empty can, or chew on your fingers if you will, patience, ethics and endurance will be acknowledged. If it’s a “no”, step 2 re-emerges. If it’s a “yes”, jump for joy. But only for that moment. Few more steps remaining. 7. ConveyanceThe next step that comes after your offer has been accepted is conveyancing. This is where the transfer of property from one person to the other takes place. A licensed conveyancer or lawyer is called in to make certain paperworks or contracts and peripherals such as land registration are lawfully compliant. 8. Stamp duty assessmentBeing immersed in the knowledge of what a stamp duty is, and how it registers with the cost of the property you want to buy, will greatly help you determine how much you can afford.In PNG, the payability of stamp duty covers transfers, permitting of certain properties, sale contract, or a declaration of trust. The amount of stamp duty payable may sometimes be other than what is shown, due to implications of the type of property and its value.The stamp duty amount you need to pay in reference to PNG’s real estate industry will pertain to:Conveyances or Transfers on the Sale of Real PropertySales of apartments, etc under company titleTransfers of Marketable SecuritiesTransfer and Assignment of Leases of Land in the CountryAcquisition of Interests in Landholding Private Corporations, etcThese examples are subject to change so it’s best to be kept informed by the Internal Revenue Commission. 9. Department of Lands and Physical PlanningIf you’ve made it this far, it means you’ve sailed through steps 1 to 7 with flying colors. You’ve done your homework. You’ve utilized the professional services of your agent and a conveyancer. An agreement is reached and a contract is signed. Now the final approval.“If you’re buying the property as a company, whether as a local or...an overseas investor company, you’ll still have to go through the minister for lands for his approval,” explained Mutien Mays. “Once he approves, then you settle. The Lands department would be the last step, before settlement. Once documents are released by the department of lands, the buyer and the seller settle the agreement.”Matters of land and everything in between that explain purposes of land use, disposal and acquisition of customary land, plus granting of licenses whereafter, are subject to the Land Act 1996, and overseen by Department of Lands and Physical Planning.Therefore, the final seal of approval is usually accorded by the Lands Department, through the Lands Minister. Hence, an important element to the buying process. 10. SettlementThis step is a process in itself, whereby there are certain activities to it. Usually, the settlement process will facilitate:Final inspectionConfirming and signing transfersRegistering transfer of ownership with relevant authorities such as the lands departmentReleasing the payment to the sellerIf it’s cold hard cash you’ve pre-planned for the purchase, then it’s a pretty straightforward case upon settlement. But if buying the property with a mortgage is your strategy, you will have plastered steps 1 and 3 with careful consideration. According to Mr. Mays, “Sales are given two weeks to settle. Meaning that if you’re seeking finance, then the banks or your financiers will have to prepare the payments. You go to settlement, they draw up a mortgage sale, and they hold on to the title until you pay off the loan. Then they dispense the mortgage after that, and you can finally get your copy of the title.”Done and dusted?Grab the keys. It’s time to move homes. 11. Don’t be complacent. Get insuredDon’t clink your champagne glasses just yet! Moving in doesn’t mean it’s over. Of course you’ve reached your goal, but it shouldn’t be a good reason to become complacent. Being complacent means being “very pleased” with yourself. It is a variation of pride. And since pride is the downfall of men, complacency is the enemy of both security and progress.  Once property ownership has added itself to your name, think wide and think far. Get insured as soon as possible, because the present will never give an accurate reflection of the future.But where mortgage espouses this whole buying process, you will be required by the lender to hold a policy over the property, which will be the case of the mortgage term. Consequently, the remnants of securing a property are rarely over.

Whether you’re in the market to buy or sell a property, timing is everything. And with timing comes knowing exactly if it’s a buyer’s market or a seller’s market. These terms also signify the present condition of the market.For instance, a buyer’s market means it’s a good time to buy property, while a seller’s market justifies a good time to sell a property. With this understanding, a buyer in search of a property will know when to start looking for properties on sale and, likewise, a seller will know when to put his or her property on the market.Let’s consider a few factors that can help us determine a buyer’s market from a seller’s market, or vice versa. Buyer’s MarketAs the name implies, a buyer’s market is when market conditions are in favor of buyers, and that can mean a number of things:  1. Buyer has the advantageA buyer’s market is the wading pool of a buyer, and the buyer is king. The buyer sets the standard, dictates the terms and conditions of a transaction, and decides on the best deal among a host of other viable deals. The seller, often competing for buyers, is less likely to reject a below-par offering from the buyer.  2. More homes to look atThe regular trend in a buyer’s market is supply usually transcends demand. More homes means more options for buyers to consider before negotiating a deal/offer. Most often than not, a property may sit on the market longer than originally intended. 3. No competitionBecause supply exceeds demand in a buyer’s market, competing for ownership is quite rare. Buyers are not in a hurry to secure a home since they have a variety to choose from, even vague is the threat of missing out on the best deal. Again, competition is infrequent. 4. Few offersWith few buyers to go around, offers align with the number of active buyers in the market. And in a buyer’s market, few offers equate to a decline in both sales and prices, and sometimes way less than desirable for the seller. Remember, the buyer is king in a buyer’s market. 5. Amplifying properties to sellBecause the availability of houses for sale is greater than the demand, the dogma to be different than the rest is high among sellers. Touch ups here or there are apparent across each and every property impression, in order to evoke a successful sale. Sellers understand that standing out from the crowd can work wonders. 6. Fear The fear that a deal may not be brokered as expected, or that one’s spouse may not approve of a property purchase, and what have you, is customary. In a buyer’s market, fear of this sort is usually high. But what we should understand is that, depending on how it is used, fear can be an effective tool in decision making, come time to broker a deal for a real estate transaction. In contrast, if you allow fear to overwhelm you, you will miss a lot of excellent deals. 7. Property construction slows downReal estate builders know very well that once the market is flooded with properties, prices will drop as well as sales. This means little to no profit on behalf of the seller; thus, leading to a standstill. Seller’s MarketIn a seller’s market, expect everything to be completely opposite to a buyer’s market. The emergence of this market cycle means conditions are favorable for sellers.  This means: 1. Seller has the advantageJust like a buyer in a buyer’s market, here, the seller holds the trident. Sellers do the talking, not the buyers. Sellers have a greater leverage in negotiations and buyers have very little to show for. 2. Limited inventoryThe signature expression of a seller’s market is “demand exceeding supply”. What’s more, during this market cycle, buyers make-do with whatever the seller proposes. Limited supply, higher prices. That’s the bottom line. 3. Bidding warsUpon listing, sellers are prone to multiple offers and may have to choose an offer above what was actually listed. And this is how bidding wars erupt among buyers; hence, bidding prices up and up. 4. Upward shift in pricesThe less supply, the more demand, and an upward shift in prices. This is the accompanying trend in a seller’s market. Again, since there is a limited supply of properties on the market, buyers will be out in full to secure ownership, making it an ideal time for sellers to increase prices.Moreover, buyers don’t have much leverage in negotiations in a seller’s market, therefore, will have to deal with increasing housing prices. 5. Cash flow declineEveryone thinks that selling equals more money. In a sense, it is. But where time is of the essence, the ability to sell quickly can make or break a seller’s money-making potential. In real estate, the longer a house sits on the market, the more costly it becomes for the seller; hence, unnecessary stress on cash flow. 6. Higher pricesIronically, a price is to a demand what a remora is to a shark. When demands are up, prices go up. When demands drop, prices decline.Understandably, a seller’s market will have more buyers and few sellers. And since prices move hand-in-hand with demands, a seller’s market associates high sale prices with more demands. 7. Properties in poor conditionsProperties in dire conditions can be sold for a higher price in a seller’s market. Because of a limited supply, buyers competing for ownership tend to think their way round this variable, irrespective of the price and end up paying more for the home, anyway.  8. Builders are back in businessBuilders and developers in the business of real estate are at their prime when a seller’s market rolls around. They see the signs, they know what to expect, they know that profit is on the horizon when demands are high, so they begin constructing new homes as much as they possibly can. ConclusionUnderstanding the difference between both market conditions can help you come out on top of your situation, and this can be strongly attributed to what compelled you to the market in the first place. But above all, always remember that a buyer’s market affirms a good time to purchase property, while a seller’s market justifies the ideal time to sell property. In essence, keeping an eye out for market trends is key to determining which condition is eminent.

This is a continuation from the previous article, Understanding Equity, covering yet another branch in the tree of Equity. As presumed earlier, each conforming subsidiaries of the tree of ‘Equity’ may become articles of their own. Nonetheless, here, we’ll explore the terrains of ‘negative equity’ in terms of residential property ownership. What is Negative Equity?Although negative equity is seemingly unheard of in PNG, it’s pretty much straightforward to perceive. Negative equity is a situation where the remaining on a loan is more than the “current” market value of a property that’s up for sale.Meaning, if the amount remaining on a loan you took out earlier to purchase your house turns out to be greater than the current market value of the property when you decide to sell it, you have come under negative equity.. Here’s an illustration... Say, Noel originally bought his house at K350,000 and took out a mortgage of K300,000 to pay for it, and his equity is K50,000. However, due to a crash in the property market, his house value now drops to K250,000, meaning his equity is now a negative K50,000 (250,000-300,000)For example, you decide to sell your house and you discover that the market value has dropped to a mere K250,000. But the current balance outstanding on the loan you took out to purchase the house is K300,000. Now, because the current value of your house appears less in amount than the present balance outstanding on your loan (K250,000 - K300,000 = -K50,000), you are in negative equity. Here, you can see that the difference between the value of your property and your current balance outstanding on your loan is a negative K50,000; hence, your negative equity worth. Who is vulnerable?For starters, the property market is often in line with the state of the economy. If a country is in recession, it will often experience an increase in unemployment and a decrease in property prices. This means that citizens are at risk of losing their jobs, therefore unable to repay their mortgage. The house is repossessed but the value of the home won't cover the loan so they are still liable for a debt to the bank.Worthy of note, housing has an indirect impact on the economy. Property investment is affected by prices, therefore affects the growth of the economy. How? Rising home prices can encourage homeowners and developers to spend more on renovations or construction to increase property value. Whereas, a decline in property prices have the opposite effect which lead to a weakening of economic growth.Simply put, investors, developers, builders, financial institutions, banks and the end user are all vulnerable to negative equity when a loan/mortgage is involved. Who Is Not Affected By Negative Equity?Negative equity only exists where homeowners and mortgages have a special connection. Even homeowners without a mortgage obligation need not concern themselves with this.In other words, a homeowner who had purchased the property with his personal savings should not be concerned with negative equity. Case in point, only a homeowner who had purchased a home with a mortgage should be concerned with negative equity. Because if the homeowner decides to sell the property and finds that the current market value of the property is much less than what he/she owes on the mortgage, they will be in negative equity. How Do You Know If You’re In Negative Equity?Just like every other aspect of “equity”, knowing whether or not you’re in negative equity will surface the moment you decide to sell your house. If you’ve taken out a mortgage/loan to purchase a property, you will - on the other hand - be better placed to calculate whether on not you’re in negative equity. The options that follow include asking property valuers to value your property, comparing prices of similar properties that are currently on sale in your area, or simply checking your most recent mortgage statement. Choose what is most convenient to you. Should you be worried?Unless you only have 12 hours to live on this planet, no!For starters, many property owners are under the impression that the minute they default on their loan repayments, their property is readily repossessed by banks. This is a misconception. In actual fact, banks are rarely hell-bent on repossessing properties. Surprised?...You should be. For instance, say you lost your job and you’re unable to make repayments on your loan, overtime. Instead of repossessing your property immediately, banks would rather prefer you find another job or some other way to help with your repayments. It is only when these options are exhausted, the banks then move in for the repossession.So, if you don’t plan on selling your house anytime soon, or if you’re in negative equity but you have a number of options to pull yourself out of it, then there’s no need for panic.Moreover, banks don’t anticipate loss of property leading to repossession as a last resort.  Dealing With Negative EquityYour ability to handle negative equity depends on the strength of your finances and your circumstances. For instance, you’re in negative equity and you decide to sell your property. You can only manage to remove the negative equity tag if you’re able to make up the difference. Meaning,  you have sufficient financial backing to eliminate the negative difference between what you owe on your mortgage and what you’ll make from the sale. A point to remember here is that just like “all good things must come to an end”, all bad things also have an end, and negative equity has a lifespan. That in mind, there are factors that can cultivate a positive equity position, such as investing in sweat equity, refinancing the loan, paying extra to offset the mortgage quickly, or sensibly enduring the term of the loan until the ideal climate to sell on the market comes along.Nonetheless, the process has to go by the lender before the property goes on sale.  The BottomlineDespite the fact that negative equity is unavoidable, there are a few considerations one can look in to in keeping negative equity at a minimum - where one doesn’t have to stress over a huge chunk of loan outstanding, with less being earned on a sold property.All things considered, you can still sell your house whilst in a negative, by simply using common sense with real estate mechanisms that are cleverly designed to handle negative equity scenarios.Speak to a professional today to learn more about the concept of negative equity and how you can be able to handle it.

Trees are perennial in nature, and commonly grow into very broad stems or trunks that support a system of branches and leaves. Metaphorically, the overall composition of trees have been used to describe the origins, structures and functions of various ideas and establishments.And Equity can be understood better in this way. A virtuous system of intricate subsidiaries, each having a slightly different reference and application.  Although this article only looks at the general makeup of equity, its conforming subsidiaries may become articles of their own such as owner’s equity, negative equity, stock equity and so forth, in due course. What is equity?The following example illustrates the relevance of equity in a real estate setting:Imagine you purchased a house for K500,000, made a 10% down payment (10% of K500,000 = K50,000) and got a loan to cover the remaining K450,000. In this illustration, your equity is 10% of the property’s value, which is K50,000 (10% of K500,000). The property is valued at K500,000 and you contributed K50,000 (or 10% of the purchase price). Technically, in spite of you being the rightful owner of the property, at this stage, you own only K50,000 worth of it, hence, your equityIn retrospect, the reality in this case is that equity represents your down payment (i.e., investment). Once you establish this understanding, calculating equity becomes easier, just like knowing the back of your hands. To calculate your equity, you simply subtract the principal loan amount (K450,000) from the original price of the property (K500,000). In other words, the resulting amount will always equate to your down payment or investment, which is also known as your equity.  Building equityReal estate investors, sometimes, set forth additional renovations to the property, apart from the loan and down payment. This increases the worth of the equity which, like a ripple effect, increases the value of the property. For example, if you were to invest K10,000 of your own money into renovations, this may well increase the value of your property by, say, K20,000. Therefore, your property is now worth K520,000, your loan remains consistent at K450,000 and the equity is now K70,000 (an additional K20,000)It is sometimes possible to borrow from your equity, or a re-mortgage, but the drawback is your equity will decrease, while your loan increases.On the whole, there are other factors as well, besides renovations and home improvements that affect the nature of equity, for better or for worse. Factors exacting an increase on equityEquity is not a fixed amount that you can easily settle for. Instead, it is fluid in nature, so it’s easily affected by financial situations. To increase the value of your equity, you can do either of the following. But then again, it all comes down to your financial situation: (i) Loan repaymentEvery time you offset a mortgage installment, your equity in the house accumulates. This will also encapsulate any tax or insurance payments you offset on behalf of the property. Better yet, the more committed you’re in paying off your loan and parallel liabilities, the more your equity grows.  (ii) Pay more than you need toSay your loan repayment is at a rate of K700 a month. But due to a favorable financial situation on your part, you are able to pay K850 per month, instead. So, paying extra in offsetting your loan is an effective way of quickly reducing your loan principal and, in turn, building your equity. (iii) Cash injectionsBusiness wise, cash injection literally means pumping money, stock or debt into a business, in return for a share in the business. In real estate, this will entirely concern your equity and its growth.Capital injections, as contributions from your family, friends or colleagues into increasing the value of your property also improves the status of your equity. (iv) DIY home improvement projectsJust like being up-to-date with your mortgage repayments, every time you perform a DIY improvement on your home, your equity increases.The reason being, improvements or renovations usually lead to forced appreciation in the fair market value of the property. (v) Property appreciationOne of the economical aspects of a property is that it appreciates in value. Thus, once your investment property appreciates, it plays to your tunes. This means that as the value of your property appreciates, so does your equity. Here’s an illustration:Noel buys a house at a fair market value of K500,000. His down payment was K50,000. The rest was paid for by the loan at a cost of K450,000. 8 years down, Noel decides to sell his property. He finds that his property is currently worth K650,000. Because of this appreciation, his equity is now worth K200,000 (down payment + appreciation value), including additional costs you’ve paid for the loan during the 8 years. Supposedly, say Noel has paid back K30,000 during the past 8 years. His equity would equate to: His initial down payment (K50,000) + the appreciation value (K150,000) + the amount of the loan already paid (K30,000). Furthermore, regardless of the factors that feed the growth of your equity, it is difficult to determine how much your equity is really worth, until you decide to sell your property, and also having a realtor appraise it.  Factors effecting a decrease in equityA coin has two sides. A story has two sides. Life is all about good and bad, and as there are factors that help equity increase, there are also factors that lessen its growth.Consequently, here are four major factors that cause equity to decline: (i) Loan refinancingAlthough taking out a new loan to pay off an outstanding loan may seem clever at some point, the process has negative implications on your equity written all over, because you’ll be putting up your equity as guarantee for the new loan. (ii) A crash in real estate market valueThe value of your property is vulnerable to changes in the real estate market. If the market experiences a crash at any point in time, it automatically becomes hazardous to your equity as well as your property’s value.Let’s use the previous example to demonstrate this scenario (where Noel bought the property for K500,000 with a down payment of K50,000). Picture this, the market crashed, so the value of Noel’s property is now worth a mere K390,000 (K500,000 - K110,000). Despite his K50,000 in equity, the property’s value decreased by K110,000. Nonetheless, Noel still wants to sell the property, because of his loan outstanding. Instead, of being patient, he goes ahead with the sale. In the end, he’s found himself in a ‘negative equity’ position, because of the fact that his property’s value has fallen way below the outstanding balance on the mortgage, which is -K40,000 (K390,000 - K450,000).A perfect illustration of negative equity at work was the height of the LNG project, back in 2014, where Port Moresby witnessed a huge influx of overseas workers who needed to be accommodated. During that time, the demand for housing was at an all time high than the supply. The immediate impact was a mounting pressure on both the rental and sales markets, causing a significant increase in property values. Unfortunately, this boom was short lived and anyone who had bought a house during that period succumbed to the wrath of negative equity in the years that followed, when they decided to sell their property, as demonstrated by Noel’s example. However, It’s not all doom and gloom. Whilst property value can go up  and down over a short period of time, the general consensus is that a property’s value will generally increase in the long term; hence the phrase, “safe as houses”. (iii) Damages to the propertyDamages to your property, including by natural disasters and pests, can directly affect your equity, because of the costs you will encumber in fixing them. Unless your property’s insured, you’re bound to spend money on the damages.  (iv) Neglecting maintenanceIgnoring the need for maintenance on your property will play against you. Neglected maintenance is costly and negatively affects your equity. However, the opposite is true in that it helps build your equity. ConclusionAt the end of the day, the privilege of equity rising is that you have a number of options to use the surplus cash that’s generated. Additionally, once the loan is settled in full, you will  be entrusted with the deeds, and the property becomes truly yours. And of particular importance, note that the only way you can know how much your equity is truly worth is when you decide to sell the house.

Sweat equity is a term used to describe an individual’s or a group’s contribution to a project through the means of physical labor. Sweat equity is all about individual effort and initiative, and has a respectful place in the business world, too. Take, for instance, a new air conditioning repair and installation company. The owners will pitch in their own effort and toil to build the business from the ground up. In similar circumstances, a property under DIY improvements to increase its value by the owners themselves, make up the definition of sweat equity.So, the sweat that drips down your forehead. A sore arm. The prickling of sun rays on your skin, are all part of kick-starting the operations of a business or increasing the value of a property through DIY improvements, collectively summing up what a ‘sweat equity’ is. But before we stretch this concept, let’s consider first its origin, present-day application, and what “equity”, on its own, means: OriginSweat equity was first conceptualized in the United States in 1937, by a housing project called American Friends Service Committee. But it was not until the 1950s when the same organization (AFSC) popularized the term during their quest to help migrant farmers of California build their own homes. From here on, the concept has reached worldwide status, creeping into every business startup and real estate jargons. Present-Day ApplicationSweat equity, however, is perhaps most synonymous with a successful model used by Habitat For Humanity, a global non-profit housing organization - which helps families who would otherwise be unable to purchase a home - contribute sweat equity hours to the construction of their own home.Once these families are settled in their new homes, they resort to making interest-free mortgage payments into a revolving fund, which in turn generates capital for building new homes for other families.As its history suggests, sweat equity was all about physical labor, zero hours, and property development. Financial contribution was either optional or out of the question.Still and all, many business startups of today have adopted the concept of sweat equity to define similar scenarios, such as a partner contributing to a project in the form of effort and toil, as opposed to capital equity. The Meaning Of EquityEquity, from a housing point of view, is how much of the property that one actually owns.  Imagine you own a house worth K200,000 and you owe K120,000 on the loan you took out to buy the house. The difference between the value of the house and what you currently owe on the loan is the equity, in this case it would be K80,000. So, equity is the difference between how much your property is worth and how much you still owe on the loan you took to buy the property in the beginning.That is equity for you. Now, let's move on to the crux of this article...Sweat Equity And Property DevelopmentNewton’s third law of motion states that “For every action, there’s an equal and opposite reaction”, and as dignified as it sounds, the statement can be generally felt throughout every aspect of life. An increase in equity in homes due to the impact of increasing property prices and a consistently strong real estate market, is no exception.As a habit, many people usually want their homes to increase in value, and in turn passionately generate a handsome return on investment (ROI), when the home goes up for sale or rent. This draws a number of conclusions relative to return on investments.For example, a well manicured lawn will take a fair amount of time and effort to perfect, and it will increase both the value of your home and the equity, without any financial input.Thus far, there are supplementary options available to homeowners when looking to increase the equity in their homes. Options such as completing your mortgage repayments on time and DIY home projects are equity boosters. This is where it gets interesting with the latter mostly possessing the crux of this article. Note: Not only does sweat equity resonate with homeowners engaged in home improvement projects. But also any business that sets out to improve the value of its entirety and location, which tends to  generate sweat equity as well. Nonetheless, the term is commonly applied in residential real estate, where DIY home projects thrive. Naturally, DIY home projects can actually add value to your property in the long run. As far as a rise in the value of the property and ROI are concerned, home improvement projects are virtues to live by.By choosing to put your handyman skills to work on simple DIY home projects, instead of external input, the chances of an increased equity in your home is inevitable. The Value Of Sweat EquityExpanding on the calculation of equity earlier, let’s determine how you can get the value of sweat equity, amongst all that, if you were to find yourself in such a situation. For example, say you decide to do some improvements to your house. A paint job here. A verandah extension there. You mow your lawn. You redo the gardens, and after a day or two, the house and the immediate landscape looks impressive and almost brand new. You did it all by yourself. Thanks to your sweat, you’ve improved the look of your property. But where does sweat equity fit in, you ask? Ok, let’s say the value of the improvements you did to the property is at K10,000. The property, on the other hand, is worth K200,000. After the improvements, the property is now worth K210,000 (value of the property before the improvements + value of the improvements), because you’ve just increased its value with the improvements. This increased value is your sweat equity. In other words, the value of sweat equity in all these is K10,000 (the value of the property after the improvements less the value of the property before the improvements).So the value of sweat equity is determined by the difference between the value of the property before the DIY improvements, and after the DIY improvements. However, your sweat equity is susceptible to changes that may result from an unsteady real estate market or the kind of DIY improvements to your home, or even the lack of it, which can influence the worth of the property, thus, a different value every time.Conversely, your sweat equity value (K10,000) in the given example, on the other hand, is also affected by the balance of the mortgage as you offset each installment. All in all, the value of a property can be improved by positive changes in the real estate market, and simple DIY home improvements - this is where sweat equity enters the equation.  Needless to say, home improvement projects are an ideal way to give your property a promising growth in value. So, the effort - or sweat - as your input into adding value to your property, is the very definition of sweat equity.

Conventionally, housing had a different shade of meaning and perspective. It was all about living spaces and roofs over heads. Nowadays, it’s a completely new ideology when it comes to housing. What was once perceived as a decent dwelling is now an item that shares similar characteristics to Lego toys - build according to instructions in the pamphlet or let your imagination take over.Where once you did not worry about zoning rights, now you are confronted with different personas with papers and ID cards in hand, breathing down your neck to ensure proper processes have been adhered to.Then there’s the issue of high property prices. (Image by Studio Workshop, Port Moresby) A recent article by post-courier titled “Port Moresby Becoming Too Expensive” (November 15, 2019), represents the plight of many whose concerns are laser-focused on affordable accommodation and the property law system in PNG.The article further explained that developers and homeowners shared similar sentiments, to which purchasing real estate qualified as a tricky business. Moreover, the view that property prices are quite high in Port Moresby than other major centers such as Lae and Madang, is common knowledge.Post Courier also cited the Hausples 2019 Real Estate Sentiment Survey to affirm this notion. In the survey, the newspaper gave particular emphasis to: Rent or own?“Comparing the proportion between renters and buyers indicate that the market in PNG is maturing. Seventy-one percent of those taking the survey said they are renting their property. While this is the majority, it is down from 74% last year and 76% in 2017.Ownership, on the other hand, rose hugely. Almost 16% said they owned a property in full. Nearly 13% said they owned with a mortgage, which is up from 10% last year.” Property type, location and budget“When asked what kind of property they wanted to rent, the majority, surprisingly,  said they would prefer an apartment, a significant increase compared to previous years.However, hi-set houses are by far the most desired properties to purchase, with nearly half of all respondents preferring this style of living.What is more, the desire for house rentals has dropped to just 40% against last two years' figures of 58%  From a location perspective, there was a big increase in demand for land outside of suburban Port Moresby. 8-Mile and 9-Mile saw the largest increase in location preferences, possibly due to cheaper land pricing and improved roads.” Affordability“Around 60% of respondents claimed that property is “very unaffordable” in PNG. A further 27% said property here is “moderately unaffordable”. These numbers are nearly identical to where they stood last year.” (Image by Century21 Siule Real Estate) In an attempt to address the issue, Post Courier noted that the PNG government rolled out affordable housing programs, including the First Home Ownership Scheme; with the aim of improving household’s access to housing, as well as sustaining their wellbeing.While this is currently true, Hausples went ahead with its own fact-finding in order to clearly explain a few factors that impact property prices. Let’s take a look at 9 of these factors: 1. Supply And DemandSupply and demand simply go hand-in-hand in influencing property prices. Prices go up when demands are high but the supply is low. The opposite is true. Ironically, in the real estate market, there’s rarely an equilibrium between supply and demand. So as far as affordable housing is concerned, not once has supply exceeded demand, which is why the prices tend to increase. 2. Economic GrowthWhen it comes to economic growth and the housing market, demand for housing is centered around income. A continuous growth of the economy results in a rise in income. This constitutes people’s ability to spend more on housing, in tend giving rise to demand and property prices. In England, for instance, demand for housing is often noted as income elastic (or a luxury good). In other words, an increase in income often leads to a substantial percentage of the income used on housing.  3. Consumer ConfidenceA determining factor in considering a mortgage to purchase a property is consumer confidence, in terms of whether or not people are able to take the risk of buying the property with a loan.Found under Finances in the 2019 Real Estate Survey, “over 80% of respondents in our survey said they would require a mortgage to finance their property purchase.”In reality, the overriding element here is the expectations toward the housing market - if consumers fear a drop in house prices, they will defer the buying process. 4. Location, Location, LocationA house located near a beach front, within a CBD or few minutes from major public transport tend to be priced higher.With the vastness of PNG as a whole, you will find that a majority of the well developed areas are in close proximity or within major CBDs.This is another contributing factor towards a price increase for a property. Naturally, people want to be close to shops, public transport, entertainment hubs and their places of work, and that’s when things start to get interesting. As the demand for more houses in these areas increase, so does the property prices. 5. SecurityAgain, in the 2019 Real Estate Show Survey, under 4.1 Affordability, you will see that security has a significant impact on property prices. It goes without saying that people who are in the market to buy new homes often spend much of their time immersed in the physical configuration and overall outlook of the property, that they give little to no attention to how safe the neighborhood is. In actual fact, the security element of a property shares equal importance with every aspect of the property that increases value, than just how good it looks on the outset. 6. Interest RatesAn increase in interest rates signals banks and financial institutions to increase the cost of loan repayment variables. High interest rates turn a home buying experience into a lost cause. A slight change in interest rates often has a drastic impact on whether or not buying a house is economical. Homeowners who bought the property on loan are familiar with this trend.  7. Cost Of Building MaterialsIn a recent study conducted by Associate Professor Eugene Ezebilo on the Dynamics of Housing Price In Port Moresby, cost of building materials was noted as one of the influential factors in increasing a property’s value. This may be due to costs associated with transportation and importation of these materials, consequently impacting the value of a property. That said, two points come to mind:Low Kina value - means higher costs associated with imported goodsLack of foreign exchange - means a company’s ability to make payments overseas is limited.  8. Additional ExpansionsThe extent to which a property is able to be expanded to allow for new inclusions is a key element in determining the value of a property. This is where the options of turning the property into a storeyed accommodation, or building additional bedrooms, or transforming the spacious front yard into a tucker shop. In other words, increasing a property’s floor area adds weight to the cost of a property. 9. Unique to Papua New GuineaAnother factor that drives up the pricing of housing in PNG is the additional resources required for a developing country. Power and water are often inconsistent and requires backup generators, water tanks and pumps; all expensive investments which require ongoing maintenance. Once more, security enters the scene here. A typical PNG home is surrounded by fencing, often decorated with razor wire, plus the provision of security guards which can push up rental prices by a factor of 3. The Bottomline“If someone is going down the wrong road, he doesn't need motivation to speed him up. What he needs is education to turn him around.”Jim Rohn Armed with the knowledge and understanding of how properties are priced and the reasons for it, gives investors a better position to make a sound and informed decision in their preparation to secure a new property on the market.For latest Real Estate news and updates, simply subscribe to our newsletter to receive regular subscriptions.

Every year, thousands of tons of garbage makes its way to landfill in Papua New Guinea. What’s more, much of the waste is compostable; meaning it can be recycled and used as a source of nutrition for your garden.Organics like food scraps and garden waste release methane into the atmosphere when thrown out as rubbish. Methane is a major greenhouse gas with a global warming potential of over 100 times greater than that of carbon dioxide. Composting is the process of converting organic materials into a soil-enriching substance known as compost. Through continuous awareness and education on the benefits of composting, methane emissions can be minimized to a greater extent. Like knowledge, an investment in composting pays the best interest.  Composting is not a complicated or mysterious process. Keeping a few basic rules in mind, even new gardeners can begin the process without much hassle. Fundamentally, composting can be carried out in a number of ways in any indoor or outdoor conditions.  To begin composting, you need four basic ingredients:Brown materials - these are organic materials such as dry leaves, shredded cardboard, egg shells, and corn cobs, etc., which are rich in carbon or carbohydratesGreen materials - includes materials such as vegetable scraps or peelings, fresh lawn grass, coffee grounds, etc., and are rich in nitrogen.Water - having the right amount of water improves compost development. Too much water is just as bad as lack of water.Air - most of the biology in the soil that helps to decompose the organic materials are aerobic; they need air to survive.A complete mixture of the four ingredients sets the stage for microorganisms to break down natural matter into much simpler materials. This activity achieves what is known as composting.The process of composting is only successful based on the present state of the environment within the composting system, i.e., oxygen, temperature, moisture, material disturbance, the size and activity of the microbial population, etc. Composting (or natural recycling) is a continuous process in the natural environment, with or without human interaction. The effectiveness of composting can be attributed to the microorganisms and invertebrates within the present condition of the soil. They digest and consume organic matter and in this way the activity helps the soil become very fertile. The high fertility of the soil is the result of the nutrients put back into the matter by the microorganisms. The process of composting is somewhat easy to conduct, and can be followed through in any outdoor or indoor setting, and in any relative location. Composting has the inherent ability to control most of the organic material in the waste stream including paper products, animal carcasses, leaves and yard wastes, animal manure, and is easily adaptable to a waste management plan. However, for domestic usage, cooked food and meat may attract rodents so it’s best to stick with kitchen and garden waste.Moreover, the benefits of composting are many such as enriching soil, drastically reducing methane emissions, and encouraging the production of beneficial microorganisms that balances the biology within a compost system. Composting is all about recycling. It is nature’s way of turning waste into reusable material. Bare in mind that what you consider as garbage is actually compostable, so make composting a habit - keep garbage from reaching landfills or dump sites, and help reduce methane emission.

Aspiring homeowners have much to contemplate in a fluid real estate market. Nobody wants to forge a blunder when purchasing a home, or even a car. Everyone deserves an answer.Meet with the best in real estate, car and finance this June 21-22, at the Sir John Guise Stadium. The Home & Car Expo 2019, exists to address the needs of prospective home or car buyers. As an evolution of The 2018 Real Estate Show, it is set to be “even bigger and even better.”.An expanded list of real estate contributors from agents, builders, finance and the security industries will be exhibiting their products and services in the air-conditioned comfort of the Sir John Guise Stadium’s indoor arena.Ela Motors, one of the major contributors, will promote their new and improved HiAces and Rav-4s outdoors, as well as the other services they have to offer. Some of the exhibitors of the Motor Show include 2 Fast, KR and Freeway Motors - as used car dealers. The Security Industry will see Corps Security, Rapid Response and Shoreline exhibit each of their uniquenesses in their products and services as well. Islands Petroleum (fuel), BSP, First Investment Finance and Moni Plus (finance), in conjunction with Online Autoparts, Color Studios and Trans Pacific Assurance will also showcase their products and services.This will run adjacent to a Show and Shine;  a collection of supercars in PNG which will include Porches, BMW, Mercedes and more. If you have a car worthy of consideration for the Show and Shine, please feel free to contact us! Family, friends, or solo; everyone’s welcome. Entry is free. There’s something  for everyone to enjoy, such as supervised kids corner and bouncy castles for the children, and clean and spacious food stalls for those who come with an empty stomach, and a chill zone for the grown ups.Attendees (both the public and industry experts) will also get the chance to interact with each other through the seminars held in the foyer of the stadium. From homeownership schemes, to building technologies, to controlling your home security with your phone; discover how to connect the dots and know what to do, when to do it and why you’re even doing it in the first place.A safe and secure location for all is paramount for this occasion, and will be warranted by SecurityPlus. Aspen Medical will be on hand to administer medical help if needed. Based on previous experience, Hausples and MarketMeri saw this as a welcome essential.The Home & Car Expo 2019 is sure to be entertaining, highly informative and educational. This is a great opportunity to rub minds with the best in the business, when they share their knowledge, experience and success tips. So be sure to mark your calendar for June 21-22. Prepare to be overwhelmed, because you’ll be leaving this event feeling optimistic.  Register to Visit

A top official of the association of realtors in Papua New Guinea (PNG) said there was a dramatic shift in the real estate sector of Port Moresby in the last few years.Daniel Berry, Vice President of the Real Estate Industry Association (REIA) of Papua New Guinea, noted that the current properly market in PNG’s capital city is markedly different from the one that grew tremendously partly as a result of a major natural gas project.Mr. Berry made this observation while speaking to attendees of the 2018 PNG Real Estate Show held at the Sir John Guise Stadium in Port Moresby.“The residential, commercial, and industrial markets have all shifted from one of low inventory, high prices, and high demand to one of high inventory, lower prices, and lower demand,” noted Mr. Berry, who was speaking on the topic, “Impact of Rapid Growth of Housing Development in Port Moresby”. PNG LNG ProjectIn 2008, PNG launched a $19 billion liquefied natural gas (LNG) project near Port Moresby, triggering an influx of people- both locals and expatriates- eager to cash on or take advantage of the economic and employment opportunities presented by the monumental project.To illustrate the point, Port Moresby, where most of PNG’s real estate can be found, saw its population rise from 364,125 in 2011 to over 400,000 four years later. Consequently, demand for housing and commercial spaces grew exponentially.To meet the high demand, which many developers hope will continue indefinitely as long as the LNG project chugs along on a high gear, many developers started building numerous residential, commercial, and industrial development projects in different parts of Port Moresby and areas nearby.Soon, PNG’s capital city was starting to see more commercial buildings, condo and apartment complexes, and other residential developments.From 2008 up to 2013, the real estate sector in Port Moresby experienced tremendous growth. Demand for property was high, with supply struggling to catch up. Prices and rental rates for real estate were also high.In 2014, the construction phase of the LNG project winded down, and things began to turn differently for the sector. In the next couple of years the property sector flattened, and slowly began a downward spiral.For one, there was an exodus of expatriates, many of them working in the LNG project. Many of these same people were the main customers for upmarket rentals in Port Moresby. In the same time span, the property sector in Port Moresby was also negatively affected by declining government revenues, general economic slowdown, among other factors.Mr. Berry said that supply went up, demand went down, and prices also decreased. The trend has continued to this day, and, sans a major stimulus, is expected to continue into the foreseeable future. Though the property sector did benefit and experienced a short-lived bump in the wake of PNG hosting the Asia-Pacific Economic Conference (APEC) 2018 Summit last month.   Real Estate in Port Moresby“Now, Port Moresby has become a renters market, as there are many vacancies across all sectors of Port Moresby’s real estate industry,” he stressed.A renters market usually occurs when there is more supply than demand in the property market. In such case, rental prices fall and tenants have the luxury to negotiate for a much lower rate.“This is primarily been due to over-development in both commercial and residential units by developers who anticipated that the LNG boom would continue indefinitely,” Mr. Berry added.Mr. Berry’s assessment found support in Mike Quinn, President of REIA. According to Mr. Quinn, the LNG project created a huge, temporary bubble whose effects, once it burst, were largely unanticipated.“The PNG LNG project made a major impact on real estate in Port Moresby and Lae, but it created a big bubble. After the contract finished the market did not anticipate the extent of the downturn that would follow,” Mr. Quinn told the local media.

A top official of a company renowned for building prefabricated house across Asia and the Pacific said that prefabricated and other types of modular houses are a perfect fit for Papua New Guinea (PNG). Modern Building TechniqueDavid Cusick, General Manager of Rhodes PNG, said that there are plenty of reasons why prefabricated homes are well-suited for PNG. Mr. Cusick made the declaration while delivering a lecture on “Modern Building Techniques” at the 2018 PNG Real Estate Show.  Prefabrication is a modern building technique where large components of a house like walls are built in a factory and then transported and assembled in the actual building site. Prefabricated houses are hugely popular in Europe and North America. Asia and the Pacific are slowly catching up as more people become aware of the advantages they offer. Rhodes ProjectsRhodes is an international construction company that originated from PNG. Rhodes has built different kinds of buildings across PNG, and also throughout Australia, Fiji, Tuvalu, and Philippines. Among its projects are staff housing, churches, schools, courthouses, health clinics, warehouses, and barracks. The company’s specialty is prefabricated and other types of modular houses.The main reason that prefabrication is a good match for PNG, according to Mr. Cusick is affordability. He noted that it is much cheaper to build prefabricated houses than traditional houses.Studies have shown that a prefabricated house is usually 40 to 50 percent cheaper than its traditional counterpart. The short time it takes to assemble a prefabricated house means that you don’t need to pay for expensive labor over a long period of time. This is a luxury not usually afforded to traditional houses.“Affordability increases when homeowners choose to build or assemble their homes themselves,” Mr. Cusick stressed.Mr. Cusick also noted that prefabricated houses are quicker to build and can be transported to any part of the country. Some prefabricated houses can be assembled in a day or two.When building a house on-site you have to contend with the elements. At times, work gets delayed because of bad weather. Stringent zoning regulations also sometimes get on the way, further delaying the project. Prefabricated houses, meanwhile, are usually built inside factories. It means that work continues, rain or shine, and is completed much faster.Also, the possibility of red tape delaying construction is much lesser with prefabricated homes. However, the fact that prefabricated homes are new in the construction industry raises the possibility that some of them will run afoul of local zoning boards as what happened in other countries.   Transporting Prefabricated HomesDespite PNG’s mountainous disposition and the fact that some parts of the country are difficult to access, Mr. Cusick is optimistic that transporting prefabricated homes from the factory to the actual building site will not be a big problem.“You can have a modern, prefabricated home transported to just about anywhere in the country,” he chimed in.Mr. Cusick also pointed out that it is easy to build prefabricated houses that even people with limited skills can build them.“You don’t need a qualified builder to assemble your prefabricated home. This is a real benefit because there is a shortage of qualified builders in Australia. Qualified builders are also very expensive,” he explained.“Assembling a home yourself without unskilled workers is another way to save money and having a modern home more affordable,” Mr. Cusick added.With prefabrication, according to Mr. Cusick, it is also easier to maintain high construction standards.“Mostly, construction takes place in a factory floor, which is a quality-controlled environment. That way, it is much easier to control the quality of prefabricated homes,” he stressed. In a controlled environment, it is much easier for construction managers to supervise and monitor the work. In building a structure with many parts, this is critical.According to Mr. Cusick, there are 12 companies that provide prefabricated homes in PNG. “Having a range of providers to choose from is good as competition often drive prices down,” he pointed out.Despite a recent economic slowdown, industry experts are bullish that prefabricated homes will find a good market in the country. They stressed that with a growing middle class and more people looking for modern, affordable homes, prefabricated homes could become an instant hit in PNG in the near future.Matthew Lewis, Managing Director of Hornibrook NGI, another prefabricated home builder, earlier told the local media that,” In PNG, there is an emerging middle class but the housing is not there. The accommodation that they get is extremely expensive and sub-standard.”

The insurance sector, along with the banking and construction industries, is among the most important partners of the real estate industry. In many countries, Papua New Guinea (PNG), included, the trio play an important in a nation’s development. Insurance companies not only partner with the big property developers, but are also there to help ordinary homeowners in times of disasters or emergencies.Speaking during 2018 PNG Real Estate Show, Linda Garo, Senior Underwriting Associate of Trans Pacific Assurance Limited (TPAL), highlighted the importance of property insurance.With property insurance, the owner or renter of a structure is financially reimbursed for damage or loss arising from fire, flood, theft, and other unexpected events. There are several types of property insurance, including homeowners insurance, renters insurance, flood insurance, and earthquake insurance. Insurance is your protectionTPAL is a leading insurance company in PNG. Established in 2014, the company provides home insurance, motor vehicle insurance, medical insurance, and business insurance services.Ms. Garo emphasized that insurance companies are there to help people, including homeowners, in the real estate sector.Generally, it is understood that many insurance companies work with property developers to insure apartment complexes, condominiums, commercial buildings, and other residential, commercial, and mixed-use developments against property risks that usually come with natural or man-made calamities like fire, typhoon, earthquake, etc.For homeowners, Ms. Garo noted that insurance is your protection against liability or property risks you face as an owner.  “For example, if somebody sues you for injury or damage caused by you or your property, the cost of defending that suit will add to thousands of Kina,” said Ms. Garo, referring to the official currency of PNG.In addition, it was pointed out that by Ms. Garo that there are other fees that you need to pay regardless of the outcome of the suit.  It is understood that the amount you have to pay if you lose the suit and other associated costs will be borne by insurance.Ms. Garo also highlighted the fact that insurance is there to help in times of emergencies or other tragic happenings.“If you were to lose your home due to a fire, or have the contents of your property damaged or stolen, you will not have the funds to replace everything all at once,” she pointed out. “That’s why market lenders as a rule require homeowners to buy home insurance,” she stressed. Home Insurance policy coverageMs. Garo then went on to explain about home insurance policy coverage.With many insurance companies in Papua New Guinea, individual home insurance policies vary. However, according to Ms. Garo, the majority of home insurance policies are based on a standard form.“And all of these policies have two important areas- property and liability. Moreover, your policy will cover you for more living expenses should your home not be livable for a period of time. This usually occurs during a time of disaster when a home is destroyed or heavily damaged.According to Ms. Garo, covered personal properties include contents of your home and personal belongings owned or carried by your or members of your family. She noted that there are limits on losses that can be claimed.Ms. Garo said the worth of a property is determined through valuation, with which insurance companies perform differently. “One insurance company will use a different method from the one being used by another insurance firm,” she pointed out. Actual Cost Value, Replacement Coverage and Extended Replacement CostThe common methods, according to her, are actual cash value, replacement coverage, and extended replacement cost.Actual cost value refers to actual cost of an item minus depreciation. “For example, a new television set may cost 1,000 Kina. But if your seven year old TV was damaged by fire and the value depreciated by 50 percent, you will be paid 500 Kina,” Ms. Garo stressed.Replacement coverage is the cost of replacing an item without deducting depreciation, but limited to a maximum Kina.  Citing the previous example, Ms. Garo said that an insurance claimant for the damaged TV will receive the full 1,000 Kina.Extended Replacement Cost is the one that covers cost up to a certain percentage over the policy limit. This protects the policyholder from suddenly high construction costs that usually occur after a disaster when high demand for building materials pushes the prices up.Ms. Garo reminded that it is important to report damage or loss of property to your insurance company representative as soon as possible.She said that you can make emergency repairs to your damaged house, but that you have to inform the insurance provider before making any repairs. “The insurance company has the right to inspect the property in its damaged condition,” she pointed out. If your property is stolen, Ms. Garo advised that you notify the police immediately and call your company representative.In PNG, there is a vibrant insurance industry offering property and other types of insurance.

Banks and the real estate sector have always worked together. More often than not, they have been partners in development.Working or partnering with the real estate sector has exposed banks to some of the challenges the sector is facing. While there are banks that have easily weathered these challenges or hardly been affected by them, some of these banks, including a few in Papua New Guinea (PNG), have been seriously affected. First Home Ownership Scheme (FHOS)Speaking during the 2018 PNG Real Estate Show,  Kili Tambula, Deputy General Manager of Bank South Pacific (BSP), said they encountered firsthand some of these challenges with the First Home Ownership Scheme (FHOS) loan program.FHOS is a joint initiative of BSP and PNG Government under which qualified citizens can avail of a loan to buy their first homes.  Aimed at helping families, the program loans K200,000 to K400,000 to qualified applicants for buying a newly-built home or to erect a new home on Government-owned land.“At 4 percent interest rate and 10 percent equity, that’s the cheapest at the moment, compared to what other commercial banks are doing at the moment,” he stressed.Mr. Tambula said the program is going well so far. “We have seen rapid growth in the market for FHOS. This is largely driven by the LNG construction phase, and also accelerated by the product we have developed together with the Government,” he pointed out.“We got a total portfolio of 597 customers who have already been funded by the loan. We have a book balance of over K200 million, funded out to the customers, and the interest is still growing,” he added.Despite their success, Mr. Tambula said they continue to face challenges. It is understood that the challenges facing BSP is not unique to the bank and are also being encountered by other banks and financial institutions who are working with the real estate industry.“There has been a number of challenges we have encountered,” said Mr. Tambula, who stressed that among the major challenges they had is the accessibility of service land. Customary OwnershipMr. Tambula said the challenge is compounded by the fact that about 97 percent of land in PNG is under customary ownership. “Only 3 percent has been delineated to the State,” he noted.  Customary land ownership in PNG has been viewed as an obstacle to progress.Another challenge identified by Mr. Tambula is lack of access to water, power, road, and sewerage. Many places in PNG, including State-owned areas where houses under FHOS are supposed to be built, don’t have access to enough supply of water for drinking, bathing, washing, and other purposes.Many parts of PNG also suffer from frequent blackouts, sewerage systems are inadequate, and many places are inaccessible or hard to reach because of lack of roads.“Accessibility to water, power, road access, sewerage. That has been lacking. That has been one of the biggest challenges we have seen so far. It impedes some other infrastructure development programs and excellent business opportunities,” he said. Missing Land FilesMr. Tambula also took issue with inconvenience caused by missing land files at the Lands Department.One of the requirements for the loan application is the submission of Title Deed confirming ownership of land/Lease is State-owned. “The missing files have caused a lot of challenges,” he pointed out.According to Mr. Tambula 147 customers, loans already approved but pending settlement because the files are missing and cannot be located.Despite the challenges, Mr. Tambula strongly believes that FHOS is on the right track. “The future prospects remain positive and it is expected to grow,” he stressed.According to him, the prospects for FHOS will especially brighten if another major mining development project like the Wafi-Golpu gold mining in Morobe kicks off. “We will see another big push in the marketplace,” he concluded.

Property ownership laws in Papua New Guinea have been developed since the arrival of colonists on the island in the 1800’s. Given the emphasis on the significance and utility for livelihood of land in customary times, the laws in PNG have been designed and amended to cater for these values.Despite a lack of empirical evidence, it has been estimated and reported by the Oxford Business Group that around 97% of the land in Papua New Guinea is under customary ownership and many of those are not formally on record with land titles. The remaining 3% is a combination of both State land or freehold land.A careful study of the country’s laws surrounding land ownership as well as the mechanisms involved in acquiring a title or a lease will be advantageous for anyone searching for general information or considering investing in property in PNG. Land Titles & OwnershipThe three main recognized forms of land ownership are leasehold, freehold and customary land ownership, which will each be discussed further below. 1. Leasehold Titles and OwnershipLeasehold titles involve a person who owns the land, but gives it to another who will have possessory title over property on the land for a period of time. In PNG, the most common form of leasehold dealing is through a ‘State lease’ lasting a maximum of 99 years. State leases are given for State or ‘alienated’ land. The term alienated refers to land that was customarily owned but was acquired by the Government for public purposes.The process of administration of State leases is carried out by the Department of Lands and Physical Planning, and begins with an allocation of vacant land in accordance with the physical planning set for a particular area; that is whether a place is to be sold for residential, commercial or industrial purposes. When the allocation has been done, vacant land gets published in the National Gazette under the heading ‘Land Available for Leasing’. Individuals and companies may then apply for the lease of this land from the State.A lease may be applied for a period not exceeding 99 years and at its expiration the State is allowed, but not obliged to, renew the lease. Applications for State Leases are made to the Land Board which considers them and based on their merit, submits to the Minister for his decision. The Minister has the final say in granting or rejecting an application for a State Lease. In an instance where a lease is granted, the application will be published in the National Gazette under the heading ‘Successful Applicant.’A benefit of State Lease titles, particularly in a country where land ownership forms a bulk of legal disputes are that Papua New Guinea had adopted the Torrens Title system of land registration, which means that the is that once it has been registered and certified, that is regarded as conclusive evidence to the validity of the ownership of this title and cannot be challenged or defeated.  2. Freehold TitleFreehold titles indicate that the name of the person or business group on the Certificate of Title (COT) owns both the property and the land upon which it stands. Land which can be converted to freehold is originally customary land and cannot be State Land, it is for that reason that Freehold land can only be applied for by Papua New Guineans and not expatriates. Because the land is not owned by the State, Freehold titles are owned for an indefinite period of time and do not have to revert back to anyone.Freehold titles are administered by the Land Titles Commission and involves an application being made to the Commission for a Conversion Order for the land to be registered as a freehold title.All freeholds titles have “Restrictions” detailed on the back of the Certificate of Title at the time of registration. These restrictions have been specified under Section 26 of the Land (Tenure Conversion) Act prohibiting the title holder from transferring the land for a certain period of time. For instance, one is not allowed to transfer the lease for a period longer than 25 years and removal of these restrictions only this can be done with the approval by the Land Board. Freehold land can not be used as a consequence of bankruptcy, insolvency etc.  3. Customary Land TitleMaking up the majority of land in PNG, it is important to take note of customary land which is also termed “unregistered land” because it doesn’t need a certificate to prove its validity. Given the country’s unique legal system which recognizes both customary and common (English) law land rights, the issue of customary land ownership and the specifics of boundaries are determined through the traditional mediation processes used by customary land owners.Customary land has the potential to be utilized to benefit many people if handled properly. One way is to register land under as an Incorporated Land Groups (ILG). This, among other things, identified all of the people with an interest in the land. This land can then be leased to businesses to conduct operations on the land and the customary landowners may in return receive royalty payments. 4. Incorporated Land Group (ILG)Incorporated Land Group is a concept introduced after the first three forms of property ownership, but still require a mention as they have been encouraged, as reported by Loop PNG, to be a countermeasure to land grabbing. In comparison to freehold, they involve a large number of groups or clans that have come together to register their members and respective customary land under one group. An ILG can then lease this land to businesses (most common mining companies) who operate on their land, in return paying royalties to the members of the ILG.The group will apply to the Registrar of Titles  for recognition and their application must be submitted with survey plans of the proposed land. After deliberation, an issued Conversion Order will be given to the Registrar of Titles (ROT) and they will issue a Certificate of Title.The Land Title Commission is responsible for the carrying out of investigations into applications to ensure that all interests in the land are addressed to prevent future disputes. However, if a dispute arises, the Land Title Commission has a mechanism in place to hear and settle disputes.In order to be kept up to date on the land which is available for sale or for renting, subscribe to our newsletter at Hausples.com.pg.  PNG Property Guide provides potential and existing investors, property developers, home buyers and renters, with an overview of of the Papua New Guinea’s property market including: a broad historic, economic and cultural overview; detailed information regarding property ownership laws, including expatriate property rentals and purchases; and demand and sentiment data from the 2018 PNG Real Estate Survey conducted by Hausples.com.pg.

Taking care of your flower or vegetable garden is a pass time for many as some consider it therapeutic whilst others do it as a hobby.No matter whether it is a pss time or a hobby, gardening is indeed a central aspect of any house. A strategically place pot plant in a room can make a small house look roomy and spacious, it can transform a barren landscape or an eyesore into a relaxing part of the whole building.Taking the necessary steps and ensuring that your garden is well kept will see that caring for your flower and vegetable garden is not a mammoth task. Plant care and gardenThere are several things that can be done to the garden during the dry spell or season. Assess your gardenThere are certain plants that can survive a dry spell and which also improve the landscape during this season. Identify areas or plants that need to be saved. Once you have done this, you will need to concentrate your attention to these areas and consider watering them regularly.The roots of various plants grow at different depths and the trick is to identify then apply just enough water to moisten the roots by focusing water into these areas you have identified. This keeps the trees and canopy green. Know your gardenIrrigate your garden slowly. Slow soaking limits run off and encourages plants to develop deep root systems that are better able to tolerate droughts. The heavier the soil, the more important slow soaking is in preventing runoff. To minimise evaporation, it is best to irrigate in the early morning or in the evening. Build water basinsThis is done by building or gathering soil in a mound around the plant. This is known as soil berm.  At the base of the mound is a small trough which you can fill with water and the water will then be soaked up. Reconsider cutting our grassLonger grass will shade the soil and reduce evaporation. This doesn't mean not cutting the lawn however you could leave more green to show and the grass a little bit longer as opposed to the usual length. Apply mulchSpread a layer of mulch over the soil around plants as mulch reduces evaporation, insulates the roots from extreme temperature change and helps prevents weeds which can choke out much needed water. Use Terra-cotta potsUsing the terra-cotta pots is advisable as it is good at water retention. For extra insulation, put smaller pots inside the big ones or bury them up to their rims in the ground. If it is hard to locate terra-cotta pots, an better alternative is the plastic ones. Plant close togetherWhen water is scarce, space your plants close together as possible. You will find that water is saved as they are closer especially during time of watering and that the plants act as a natural shade and wind barrier for one another. In addition to this, planting closer together will see less weeds as compared to when the plants are far apart.Items to keep around the house for drought seasonRoot irrigator - this hose-end device has a needlike shaft  that injects water into the ground, directly irrigating the rots and seeing no water lost to evaporation.Sampling rod - this device is a metal tube which can be shoed into the ground. When pulled out, twist it back and it shows a cross section of the soil and shows how wet or dry the soil is which in turn tells you whether or not to water the soil now or not.Soaker hoses - porous hoses which all water to seep through their length. These special hoses can be run along flowers and shrubs or even along hedges and vegetables to allow plants to soak up the water.Rain tank/barrel - during the normal weather, a lot of rain will fall. It is best to catch this rain and store it for the dry season.Flowering plants for your gardenIt is always essential to know your climate before you undertake any gardening.If drought and dry spells have become common in your province over the past few years, it is important to know which plants are best suited for the climate. It is a time consuming effort which could see you in the end losing alot of money.Imagine trying to plant a water lily as your centre piece in your garden if you are located in one of PNG’s drought prone areas. This would mean that your water bill and consumption would be high as you would have to ensure that your pond is always full. Therefore, it is good to know which plants are well suited for dry weather.Cotinus along with Buddleia are good examples of plants that are best suited for dry weather. They grow well in low water levels and shut their system down and can tolerate dry periods for some time. The two plants have adapted t such weather conditions by growing smaller leaves which are closer together.Portulaca or Purslane is another plant which is found in the tropics and warm temperature regions. There are between 10 - 400 different species of this plant which is colourful and it is also considered as a pest by some countries.   Other plants that grow well in dry weather include Bougainvillea, Agave as well as the Blanket flower. Many gardeners think that you can not produce good produce without extra water but some plants are surprisingly drought tolerant. Herbs that produce aromatic oils are the ones to benefit the most as drier conditions mean more oil.  Climbing French beans are another egetable that adapts well to the dry weather as compared to the usual runner beans. Lettuce, spinach and even sweet potatoes  if well watered and cared for also produce tastier produce during this dry weather period. Alternative water source for the gardenAs the dry weather continues, many local authorities will place restrictions or bans on water usage. As such, this would at times mean that one will have to consider using grey water. Grey water is water that has been used around the house such as in the washing machine, bath, shower or for washing up.Grey water does not store well and can start to stink if kept stagnant for long. It is best used within 24 hours to prevent the spread of bacteria. Never use water from toilets or dishwashers or use water that you know contains bleach  or other harsh chemicals which can be bad for the plants.

Security fence | Source: PassagejournalThere is nothing more terrifying than the thought of having your home broken into.This is a fear that is shared globally. Some people deal with this by building fortresses and having personal protection all day everyday, but not everyone can afford that luxury and there are measures that one can take to secure their home that won’t cost an arm or a leg; but it is better to spend a great amount financially rather than literally lose an arm or a leg.According to Age Patana - the Monitoring Center Manager of Shoreline Technologies, “The majority of break ins in PNG happen when occupants are not home.” The same sentiments are shared by individual security guards spoken to from 4 different security firms in PNG.This is both good and worrying news, this means that burglars will observe your family’s routines for a while to see when a good opportunity presents itself, the good news is that you can take these 10 measures to ensure that you deter opportunists and increase your home security.1. LuksaveIn Papua New Guinea - ‘luksave’ is more powerful and efficient than the most advanced security system in the world. Literally translated the phrase is luk = see save = know. When faced with any difficulty, someone that has shown ‘luksave’ to those in their locality will always be given assistance. Luksave is gained by acknowledging and greeting those you meet on a regular basis; it is shown when one acknowledges that they know and share an allegiance with you. The security guards that take care of your office or residential premises, the street seller, the market mama, the boys that always hang out at the car park and those that live on your street - these individuals that form your daily scenery are your strongest form of security. These individuals and will either come to your aid or simply look on depending on how much luksave you have shown, so it does pay to be cordial or pleasant to everybody that forms your daily backdrop. Papua New Guineans are extremely loyal and showing luksave is one sure way to gain our loyalty and greatly improve your security situation.Faces at Gerehu, NCD | Source: Commonswikimedia2. Ensure your yard is adequately litOne way to increase your security without breaking the bank is by installing clear lighting. Contrary to popular belief research conducted in the UK and America show that flood lights installed in yards increase the number of burglaries instead of deterring because most times they allow the robber to have clearer visibility of their target while occupants are either sleeping or are away. Instead of constant, glaring lights all over a yard - it is better to install clear lights in strategic places, positioned in such a way that will increase your visibility. Think about dark zones, think about places where your fence is easier to climb, think about poorly lit exterior doors - map these risks and install strategically. Motion sensors that will switch lights on when movement is detected are the most effective form of lighting according to research conducted, it is worth your money to have those sensors installed. There are security firms that also provide the option of having an audible or inaudible alarm triggered when motion is detected. 3. Out of sight does not mean out of mindFences and methods of increasing privacy can make the wrong kind of people more curious about what is in your yard, try not completely conceal your yard and give burglars less to be curious about. Try to keep those hibiscus and ixora hedges low, especially around doors and ground level windows. 4. Try to keep your valuables concealedWhile making your yard easy to view, the opposite should be happening for inside your house. Try to position flat screens and laptops in a way that they cannot be seen from outside your windows. If this unavoidable ensure that your curtains are shut at all times. After you buy expensive appliances (eg. a flat screen) do not leave the box lying in places where everyone can see it, either burn the box or put it out of sight. If you have a brand new car, ALWAYS be vigilant when you are driving no matter where you are or who you are with. There are many instances where people have had their vehicles stolen after being followed for more than an hour.Dogs at the RSPCA PNG | Source: RSPCA PNG5. Get a dogMost people seem to think that only Rottweilers and German Shepherds make really good guard dogs - news flash! The average mix-breed PNG dogs bite just as hard and bark just as loud. Get two or more dogs, but remember that they need care. To avoid dogs getting sick and bringing sickness to your family have them dewormed, treated for fleas and to avoid an overpopulation have them desexed - all these services are provided by the RSPCA for a small fee. 6. Put up a fence and plant a thorny plantA security fence is always good as a deterrent.  Just inside your fence you can nurture a Bougainvillea, thorny rose or any other thorny plant that will make jumping your fence a painful thought. It is relatively simple to grow Bougainvillea, you get a cutting and put it about 30cm deep into soil and water it regularly. You can also line the top bar of your fences with a grouting or thin cement and embed jagged pieces of broken glass or weld sharp metal pins onto your fence. 7. Engage a security firm to guard your premisesYou will notice that almost all residential compounds in PNG provide guards that patrol grounds and man gates. This is a cost effective way to secure your home, as there are hundreds of security firms. It is vital that you screen the security firm and the guards provided, by insisting that all guards have police clearance and a current medical report. If you come across any issues, do not hesitate to engage another firm.8. Install a home security systemAt the end of the day you want to just relax when you are at home, you don’t want to be worrying about why the dogs are barking or looking out your windows every now and then. PNG  is at a stage where there are many highly advanced security systems that can be monitored and controlled by an app on your mobile phone or laptop. These security systems have a vast choice of triggers that will alert a security company (with 24/7 rapid response) of your choice, the police and whoever else you want to be alerted. For your peace of mind you can talk to a professional firm who can give you advice and cater a security system to your requirements. 9. Get your home, its contents and your car insuredIf you know that you will be able to repair or replace your belongings, your house and your car then you will have a greater peace of mind when going about your daily business. There are different insurance products available that can be catered for your needs. You can get more information on what measures you need to take to be fully insured by Clicking Here and contacting Trans Pacific Assurance Limited. 10. Use common senseIf you feel uncomfortable upon noticing a car following you do not drive home - instead contact your security service provider and drive to a bank or the closest police station as these locations have many security personnel. Pay attention to who and what is happening around you. If you are going to be leaving your home empty overnight, make sure that all the external doors and windows are locked or shut and leave the lights on in the living room, kitchen if possible leave the tv or radio on to make it seem as if someone is home. If you are going to be gone for more than a night get someone you trust to house sit. Click on the link Here that will give you the landline to all police stations in PNG. It is wise to get a reliable mobile number from your local police station in case of any emergency.At the end of the day your best security is your neighbours, make sure you maintain good neighbourly relationships and they will be the ones that will help you monitor who and what is going on on your street, they will be able to help you identify suspicious people or vehicles on your street and if there is anything out of the ordinary happening on your premises, your neighbours will feel obliged to let you know.For more information on home security measures or other property related information you can Subscribe to our Weekly Newsletter.

Many of us take out a loan, invest a significant amount of time and money to getting our property perfect for making a solid income. We know that once the loan is paid off by the monthly rentals, the income that the property generates will be the ticket to larger projects and bigger balances. The majority of property owners seek the services of a reputable real estate agency to sell their property, others will seek out potential tenants through their private networks and thousands more will decide to market their property on hausples.com.pg.The common thought is - that to sell a property you simply take clear pictures of the yard, the living room, kitchen, bathroom, toilet and advertise the features and the cost per week or month. Sometimes listings are there for months without a concrete lead and the vacancy continues for digging a bigger hole in your pocket repaying that loan.To avoid a prolonged vacancy period and to get that price you desire, you must make your property not only as attractive as possible but there is certain information that tenants want to see straight away to convince them that your property is the best value for their money. Here are 5 tips to making sure you get your property noticed as soon as you list.1. Pictures SellThere are many things that you could say about your property to make it sound like the dream house or unit but if you don’t have the pictures to show people what you’re boasting about - you are wasting your words and time. You should have at least 10 clear, high resolution images of your property showing the bathroom/s, kitchen and living area, the rooms, any featured room (eg. Laundry area, study or library, entertainment room etc), the properties best front and back yard views. Images should be less than 150kb so that they don’t load too slowly on our PNG networks. 2. Details matterOne thing that makes searching for an ideal place to buy or rent more frustrating is when you only have half of the information you need in order to make your decision! To make your property stand out - give as much information as possible about it. In your description you should ensure that all spelling and grammar is correct, then you must make clear:a) The layout of the property (square meters, number of rooms, bathrooms, toilets etc)b) Name of the suburb and street the property is located on - Hausples offers a google map that you can pinpoint your property on.c) Describe all amenities (fully furnished with white and brown goods, backup electricity & water, aircon, pool, bbq area, gym, tennis court, bar etc), names of nearby schools or shops or any other feature that makes the area enticingd) Clearly describe any recent improvementse) If you have recently renovated the bathroom or have had the kitchen retiled etc it is eye catching to have this mentioned along with a photograph 3. Describe security statusPeople that are new to the area and especially expatriates want to know how safe the neighborhood is, make sure that state what security features you provide on your property, what security features are in the vicinity of the property and generally describe the neighbourhood clearly.4. State the costs clearlyAt Hausples we display rentals at per week price, to make sure you get the quality of tenants you want you should list the weekly rental, the bond required and how much (if any) is refundable. If there are any other further costs let your potential tenants know when they inquire.5. Make rules clearTo avoid any issues between you and your tenant it is really good to make clear any restrictions you put on your property. If you do not allow alcohol or pets or in the PNG context betelnut - make sure potential tenants are aware from the startThe above tips will help you get your property noticed and bring in more inquiries so you will get that tenant renting at the price you want or that buyer purchasing at the price you desire. It is also extremely vital that you protect your investment and have your property and its contents valued by a registered valuer and insured by a quality insurance firm. If you would like to make queries on getting your rental property and its contents insured you can Click Here to get in touch with Trans Pacific Assurance Limited.For more tips on how to market your property or to find out what is on the market currently, you can Subscribe to our Newsletter Here or email [email protected]