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Rent Versus Buy: Which One Is Right For You?
Rent Versus Buy: Which One Is Right For You?
June 7, 2022, 2:26 a.m.
Advice
Lifestyle
For a while, homeownership has been the hallmark of everyone's dream, or at least a form of plausible investment, if you'd like. Even so, the current variations in the housing and lending sectors, due to the pandemic, has inspired new vantage points toward the rent vs. buy debate.Imagine having lived a better part of your life growing up in a particular suburb of Port Moresby. You've reached the stage where you’re considering living apart from your family. You crunch the numbers and decide you're better off on your own.The magic here, however, is the length of stay you plan on making. If it's short-term, then renting is the next best thing. But if it’s long-term, yes, you know the answer - get a mortgage, buy your dream home and be seen as a real estate investor. So what follows is a pint of common sense here, a splice of simple mathematics there, and you're primed for the biggest decision of your life.Windward West Unit 1.2/02 Kermadec, Ela Beach, Port Moresby, NCD, Papua New Guinea What does that mean to you? Rent versus buy is a hugely personal choice. And choosing between renting and buying isn't an easy choice to make. There is so much to voice over before the one that's right for you sticks out like a sore thumb. An informed decision will only come about when you're able to make an intelligent comparison between the two.Comparisons such as how much it will cost you fortnightly or monthly for renting, over how much you’ll be paying to offset your mortgage, piece by piece.It will make a lot of sense to rent rather than buy a house, if the rental payment is quite less than what your mortgage costs are. Let’s consider some pros and cons of both renting and buying to help you arrive at the one that best suits you - financially and mentally:Renting A HomeVBuying A HomeProsConsEProsConsMore flexibility to pick up and moveYou’re not investing in yourselfRFinancial security for the futureThe responsibility and obligation of a mortgageLess financial riskRestrictions on decor and design optionsSTax benefits, i.e., mortgage interest deductionsIf you choose to sell in a down market, you could make a lossMinimal responsibility for maintenance costsMany renters are not allowed to have pets, or pay a premium if they doUEstablishing roots in the communityAdditional costs associated with buying a home, i.e., moving and closing fees A landlord could raise your rent or sell at anytimeSPotential to earn rental income if you buy a multi-family homeResponsible for all repairs and maintenance   Your home, your rules when it comes to pets and decor  Whether it’s rent that you want, or buying a house, deciding between the two usually involves a complex process. Fortunately, there are options to help you realize the break-even point, as well as consolidate the kind of questions that will further help you make informed decisions, such as:How long do you plan on staying in an area?How much flexibility do you enjoy?Are you prepared for the responsibility of homeownership?1 Avaka Street, Gordons, Port Moresby, NCD, Papua New Guinea As mentioned earlier, if you're planning on staying short-term, then settle for rent. In the fullness of time, if you find yourself packing up and ready to move, it would be better not to waste your time thinking about home ownership, alongside:A down paymentClosing costsLoan chargesAppraisal fees Presumably, the corresponding costs of house hunting and getting a mortgage can translate to tens of thousands of kina (even more). As a renter, you may want to pay an application fee, banker's fee, a refundable security deposit for several months’ rent, etc; - if that's what your situation befalls.On the other hand, if your plan is to remain in the area, say for another 50 years, you will find that renting gradually increases within that time frame, thus, becoming more expensive than buying a house. How is that so?Consider BSP's fixed-rate loan for example. No more, no less, the repayment is consistent throughout the 40 year term. With rental payment, however, each year sees a fractional increase.  In the end, if you were renting during that period, you will have spent more than the cost of homeownership.1/Era Dorina Estate Stage 2 | 3 Bedroom Apartment, Town, Port Moresby, NCD, Papua New Guinea But, in the long run, like yin and yang, there are significant advantages with home ownership. You will own the property, and you can sell it after a while, rent it out or transfer ownership to your next of kin. You're the king, the emperor, the commander of the property. You dictate the terms and conditions; no one else.The other advantage is the mortgage interest deduction - a tax benefit that allows you to minus your mortgage interest payments from your taxable income. This is a process on its own and requires you to file your tax returns, which are beneficial only to the point where your interest deduction totals to K200 or more, as incurred expenses in earning your salary or wages.Windward West Unit 1.2/02 Kermadec, Ela Beach, Port Moresby, NCD, Papua New Guinea Rental payments, by contrast, fall short on such advantages, unfortunately. In comparison to home ownership, a portion of your individual mortgage payment ends up raising your stake in the property to build your equity. Rental payments, hitherto, favors your landlord's wealth building and increases overtime with rental prices. Hence, down the line the costs of renting tend to be higher than that Of buying a property.Not to mention, property taxes, homeowners insurance or maintenance costs are the sole responsibility of the landlord and not the renters. Irrevocably, these costs can quickly accumulate.Edai Town, Port Moresby, NCD, Papua New Guinea And so we ask, if renting aligns well with a short-term stay, and buying equals the longer term, where does financial logic exist?In a different light, when exactly do costs associated with long-term renting always outweigh upfront costs of buying a home? This line of thinking usually leads to a break-even point. Comparison Apartment | Wards Road, Hohola, Port Moresby, NCD, Papua New Guinea While analyses like the ones above speak well of your decision to be economical, there are other unbearable financial factors you may have to work into the fore.Many renters, for the most part, appear to enjoy the perks of renting - flexibility of being able to change apartments, experience new neighborhoods, wacky adventures and develop financial discipline at the end of their lease.  If you haven't found the neighborhood of your dreams yet, or need to relocate because your job says so, then renting will afford you a piece of mind.Mavaru Street, Boroko, Port Moresby, NCD, Papua New Guinea For a homeowner anticipating a new settlement, you can't help but walk on broken glasses before you get to your objective:Finding a real estate agentGetting the house listed (which means professional photos, filling out a seller’s disclosure and possibly handling home repairs)Navigating offers and negotiationsPaying a number of fees to close the saleThe time it takes to complete these obstacles can take many months, where within that stretch the costs tend to scrape together correspondingly. And sometimes waiting is a luxury you won't have when you have to sell your property fast to move, which only adds to the headaches you could have avoided if you were renting. In some areas of Port Moresby, rental prices can shift quickly in a short space of time. What may have matched your budget sometimes before may now be ridiculous to you.  In retrospect, there are occasions where a renter finds the rent price has gone up a notch upon renewal. Even so, there are renters who complain about unresponsive and ignorant landlords who seem to shy away from repair and maintenance issues.When reformed into social proof, it can become detrimental to the landlord and your decision to rent versus buy. In any case, these incidents will have you asking yourself if you'd prefer doing the home maintenance and repairs by yourself? Or have someone else do it for you? One way of deciding which is right for you, rent or buy? Background shift: homeownership to rentingBoroko, Port Moresby, NCD, Papua New Guinea The conventional wisdom of old was that purchasing a property was far better a choice than renting one. While home prices are on a 45 degree climb in the 21st century, owning a home may just be your safest investment.Whatever your preferences and current situation is, this decision usually strikes up a dilemma, especially if you don't understand the pros and cons of each choice. So although we may not speak for everyone’s situation, we have covered a broad perspective of the things you would have to consider when deciding whether to rent or buy.  ConclusionToday, there's rarely an absolute answer to the rent vs. buy question. In some areas of Port Moresby alone, and for some people, buying a house may make more sense, while for others, renting will be the better choice. Even more important is to run the numbers and see what's economical for you and your family. After all, the decision to rent or buy falls entirely on what you prefer, plan and have as personal finances. If you know for sure how long you will remain in your home and where you chose to reside with some money saved up, your final decision would equate to simply calculating which option will not burden you as far as costs are concerned. On the other hand, if your future is bleak, then you might just have more to consider.
The Future Of Commercial Office Spaces In PNG Post-Pandemic
The Future Of Commercial Office Spaces In PNG Post-Pandemic
June 7, 2022, 2:27 a.m.
News
Advice
Without exception and compromise, the coronavirus pandemic maintains its shadow of uncertainty over the real estate market in Papua New Guinea, as 2020 progresses. And it seems commercial office tenants returning their backs on extreme conviction as they attempt to walk alongside cautiousness.But like every other crisis, there’s an end to this pandemic. It may not be tomorrow, next week or the following year, but it has an end and it will still reach that end. This then begs the question of what returning to work will be like post COVID-19.So much has been professed about buying and selling abodes amid the coronavirus outbreak, but nothing substantial about commercial office spaces after the pandemic. This in mind, we’ll look at how commercial office spaces are responding to this current crisis, and what may possibly result once the pandemic eases.  Working from homeAt this point in time, many office spaces are empty due to the social distancing protocols put forth to help prevent the spread of COVID-19 across major sectors in PNG. Business houses and Government departments have so far submitted to the pressures of transitioning to working from home, at the same time, making efforts to ascertain what will become of the workplace post-COVID-19. Conversely, empty office spaces may be considered as a coup de grace. Once employees become used to working from home, the ripple effect will encapsulate cost saving measures to be had by employers.On the other hand, this may not be the case. As social creatures, we always look for ways to interact in-person, so while working from home may be observed as a viable option for companies post-pandemic, there will never be a suitable substitute for one-on-one interaction, business-wise. Coworking spacesBesides working from home, PNG may soon witness the birth of coworking spaces, as far as the need for a private and flexible workspace goes. Rising up to this challenge, Pacific Palms Property is currently offering these services at their Harbourside West Complex. A typical scene in a coworking space will entail inner workings such as a co-mingling of individuals with similar or contrasting backgrounds in fathomless focus at private desks. While others will play up charming conversations at large shared tables.  This is the kind of scene you can expect in a coworking space, which serves as the culture. Combined with essentials such as Wi-Fi, meeting rooms, shared kitchens and bathrooms, Pacific Palms Property are a step ahead of their game.Like video conferencing, coworking spaces can qualify as part of the new normal and the future for flexible office spaces.Needless to say, all post COVID-19 workspaces are bound to harness the ability for employees to team up in developing their desire for more flexibility, while allowing themselves the freedom they yearn. The moment you enter a coworking space, you'll immediately experience an atmosphere unlike any regular office setting; an atmosphere of electricity, elasticity and freedom. Most likely, the demand for commercial office spaces may be subdued in the coming quarter. This means pressures from the pandemic will eventually subside; one that will reinforce plans to resuscitate business operations in these flexible workspaces. Co-working spaces aren't just cost effective, but offer flexibility in terms of time periods of rental agreements. These fun, pliable spaces can be rented on a daily, weekly, and even monthly basis, depending on the office needs of the business. Co-working spaces usually offer a suite of office-like conveniences such as private meeting rooms, kitchens, coffee and what have you. More often than not, coworking spaces create communities, and the usual suspects are freelancers, entrepreneurs, startups, SMEs and small teams of professionals availing themselves of the flexibility.By the same token, Pacific Palms Property, at their Harbourside West location, currently hosts SMEs and loan traders for that matter. Return to conventional office spacesWhile working from home has taken shape in every workplace configuration, traditional or conventional office spaces have become a major cause for concern for both the tenant and the landlord, thus far. The forced transition to working from home has been an arduous exercise for many companies and government agencies. The employers in this regard are beginning to see this exercise as a viable move, one that is proving effective in testing business continuity and resilience.But one can't deny the fact that there's a general sense of missing the office environment, the atmosphere, and colleagues, from both a personal and professional stance.Then there's the reality of not having a suitable space to turn into an office: a reality that has unfolded into one of many issues such as shared accommodation, children being around you constantly, and furniture that doesn't make for a suitable desktop or work table to operate on.Further considerations would entail the mental health and well-being of the employee. Utilizing videoconferencing at this point has never been of greater importance, and the adaptation of it in this scenario cannot be understated.Moving forward, employers can begin planning a back-to-work scenario, whereby the math behind this move is to lead customers and clients back to normal as soon as convenient. A pause in leasingSince the pandemic, traditional offices remain empty while a distinctively low demand emanates across new offices. However, most offices are tied to a lease, so while they may be empty, rents are still being paid.As office tenants continue to review their business continuity plans amidst this great uncertainty, one cannot expect a downward trend within the strands of commercial rent just yet, directed by an unshakable underlying commercial market.Many companies by now will realize that they are able to adapt to remote working. This suggests an increase in what is known as satellite offices like Hausples Limited, with more people appearing in flexible workspaces, as companies and business houses distance themselves from long-term leases. With many more companies laying off a good number of their employees, one can expect to come across a significant amount of empty office spaces.Apart from that, one can only expect delays in leasing, which corresponds to the extent of the pandemic - the more COVID-19 persists, the more leasing may be delayed. Shifts in market dynamicsObviously, working from home is not for everyone. Many business verticals and functions will still rely on an office setting to get things done. Three-quarters of office work will journey upon constant monitoring alongside professional infrastructure, whereby only an office setting can resolve, ergonomically speaking. Nonetheless, market dynamics carries on at a rapid shapeshifting process. The bottomlineEvidently, the need for remote work may increase for most of us. This will lead to a collective agreement that greater flexibility will be needed like never before. As we've mentioned earlier, working from home usually will require some getting used to for many Papua New Guineans. Once it develops into a trend, companies will distance themselves from signing long-term leases, instead opting for the more viable short-term leases. But this is only a prediction. The only surefire thing is offices will always be the ideal place to do business and, now more than ever, they still prevail as the catalysts for enduring success.Moreover, the office market is expected to bounce back strongly in 2021, so what landlords and investors can do now is to remain cool, calm and collected in this troubling time. Surely, just like all good things must come to an end, so do bad things. It pays to wait.
Buying And Selling Your Home Post COVID-19 In PNG
Buying And Selling Your Home Post COVID-19 In PNG
June 7, 2022, 2:30 a.m.
News
Advice
Seahaven Apartments, Port Moresby While the pandemic continues to blanket the property market with uncertainty, the market in general seems to mature into the new restrictions for on-site buying, selling or renting property.Of course, the environment has become a bit of a taunt where transactions are concerned. But no matter how stressful it may appear, the best part of it all is that the market remains open for business; transactions are ongoing, though not as hyperactive as it was before.Nevertheless, riding the resilience of the property market; let's consider how you can groom your house to sell post COVID-19, and what you should look for as a buyer or renter amid social distancing measures: Tips For Buyers And Renters 1. Search onlineCovid-19 has immediately thrown into perspective a bedrock of new beginnings; none more so than working from home in place of office spaces, and the imminent use of 360 degree, high definition, virtual walk-throughs for buyers and renters.Although not yet headline news in PNG, virtual viewings offer potential buyers and renters a 3D perspective of the property of their imagination.As a buyer or a renter, if you can’t feel it, touch it and smell it, virtual tour it!A reality overseas, and one that’s not impossible to adopt here in PNG. 2. Learn to read a floor planSounds new, doesn’t it?Yes, because as a buyer or renter, a single image along with a short description won't give you an image of what you’ll be buying or renting. When you can read a floor plan, you can understand the size of the property and the layout you’re purchasing.In other words, if you know the measurements of the floor plan you’re after, you’d be familiar with what’s written on the paper. Otherwise, it would all mean nothing to you in square footage.Tip: measure up a room at home so you understand space better when you see square footage written down 3. Prepare your mortgage paperIn a buying process, always have your credentials on hand, provided you’ve been pre-approved. You should also have in place some form of ID - whether it could be an NID card, passport, class 6 drivers license, etc, even your name must be consistent on all documents that you will need to offer as proof.Remember, once COVID-19 recedes and the market goes back to normal, having your paperwork all set and ready to go will increase your chances of being short listed as a likely buyer or renter out of the long list of applicants that are also looking into that particular property.Top Tips For Sellers 1. Complete all outstanding DIYsObviously restrictions are in place for general travel, but there are exceptions. Arrange a trip to your local hardware store for the tools and equipment you will need to finish off those nagging home improvements. Get all the tools necessary and get down to business. Fix any leaking taps, replace broken or cracked windows and polish up the unfinished paint jobs.Tip: When preparing your property for an inspection, declutter every room and place one or two pot plants or picture frames in each room to add some final touches to an empty room. They will be noticed by viewers 2. Enhance your flower bedsYou know, it is widely known that there’s no second chance to make a first impression. If you have a flower garden, tend to it. Plow it, sweep it, prune it, if you must. Add life to it, and in turn it will add a sparkle to your house.Whatever DIYs you do in the house, you do the same outside. It’s like finding the reciprocal in a math equation.Box up and bin the contents of the flower beds and the driveway as well. Ensure the wheelie bin is placed properly and away from viewing eyes.4. Tackle those exterior jobsThe human brain has the tendency to overlook certain aspects of a person’s surroundings when their specific volumes are inconsistent with what he/she expects to see. In other words, our brain’s ability to process every element of the scene before us is unintentionally affected by our expectations. Fortunately, this isn’t a deficiency, but a convenient trick played by the brain while it tries to quickly sort out the reality we’re in, in order to find what we are after. This is why you have to check every corner of your home’s exterior several times over for incomplete jobs, just to be sure you haven’t missed any clogged gutter, uncluttered driveway, or unpatched holes in the fence. Even a beautifully painted front door, porch and verandah can all make a cheerful statement.Homes without additional maintenance and repair tend to be sold quickly. Incomplete jobs give your potential buyers plenty of reasons to worry about what else you haven’t done to add value to your property. This is where your curb appeal efforts spring into importance.Tip: tastefully painted exteriors can add as much as 20 per cent to a street’s property prices 3. Give video tours Unless you’re an excellent storyteller who can easily mesmerize buyers with your words when they call to inquire, give them the luxury of video tours.A simple video recording done on your smartphone, showing parts of the property that may not show up in photographs has a stunning appeal and better visual picture of your listing.Rather than engaging in the risk of inspecting a property in person, clients can comfortably avail to the luxury of video tours in the comfort of their home.Put differently, these videos will give your clients the opportunity to “window shop” while they’re stuck at home.If you want to make a good impression and get the most interests, this will be your magic bullet. Be entertaining, be welcoming, be fun, be well informed and detailed.Remember, newly painted and vibrant walls, neat and tidy rooms, and enough furniture in each room to show its purpose; make up the parts of decorating your house, in preparation for that big sale.Once potential buyers can happily imagine themselves living in the house, without having to worry about additional repairs, you’ve successfully sold your home. Final thoughtsIn a time when social distancing is the order of the day with limited face to face interactions, individuals need to reconsider their approach to buying, selling or renting property. The digital world is constantly changing around us, with more efficient ways to go about the traditional methods of property inspections and advertising. The lengthy process of arranging multiple site visits and collecting brochures with poor quality images has translated to online advertising with numerous, high-quality images, floor plans and virtual tours, advancing the real estate industry into a different era.  Moreover, prospects now have the advantage of assessing numerous properties online and shortlisting the most likely investments they would want to lease or purchase. Real Estate agents are also adjusting to the changing times, by reducing the number of open home inspections and arranging individual appointments with prospecting clients. Better still, it is hoped that virtual tours will make the scene, soon. So if you’re looking to sell a home in the near future, be prepared to accept that numerous properties will be listed alongside your property, spruced up and ready to go. And if you’re intending to purchase or lease a property, the property owner or agent will be shortlisting applications and looking at the ideal applicants.
Can You Still Sell Your Property Amid COVID-19 Concerns?
Can You Still Sell Your Property Amid COVID-19 Concerns?
June 7, 2022, 2:36 a.m.
News
Advice
Unless you lack the motivation, drive and ability to adapt in this current coronavirus climate, selling your home is still possible! But in a different manner than what was previously normal.Obviously, there is the likelihood of a period of reduced activity in the property market. However, patience is never a virtue when the survival of a business is at stake. Not all vendors will find comfort in waiting out the crisis. There'll always be a percentage of the horde who are always on the edge of their seat in keeping things active as much as possible; it's human nature and you can't blame them. Here’s a few tips to consider when you’re thinking about selling your home in the course of the present coronavirus outbreak: Meet with a real estate agentIn the midst of escalating concerns about the spread of the COVID-19 pandemic, the real estate market is currently at a stand still. But realtors continue to keep in touch with their buyers and sellers. They’re continuing to make sure they market their clients' properties through various platforms to reach out to the active buyers market.By and large, the real estate industry has long been overwhelmed by creativity. So expect a new strategy every time, such as a private viewing or “by appointment only” format, along with virtual tours. It’s only by meeting with an agent will you know what alternatives are for the taking at this point, if you’re at the sharp of your determination.  How does a private viewing or “by appointment only” format works?A decisive marketing arsenal at a seller's disposal is a property viewing or inspection. It is the lifeblood of a sales process and has the overriding capacity to make or break a buying decision.Imagine having strangers wandering about in your house, prying every room, opening cupboards and drawers, and inspecting intimate areas of your daily life - just to get a good fix of all the spaces and grasp the finer details of your home. Somewhat intimidating isn't it? All the same, it’s important to understand that there are two types of property viewings or inspection:Open inspectionPrivate viewingFor optimal results, having a professional agent by your side is conducive to planning for either one of these property inspection types, because they're better placed to manage buyer expectations. But given our current COVID-19 situation, private viewings work best.At this time around, private viewings will not only ensure buyers are screened for trustworthiness and financial stability, but also if they're able to abide by public health directives in helping to prevent the spread of COVID-19. Your agent will arrange the viewing while having in place numerous precautions. For instance, plastic covers for shoes, alcohol wipes for door knobs, face masks, disposable hand gloves, hand washers or sanitizers at both the beginning and end of the viewing. How does a virtual tour work?This technological method can be conducted in a number of ways, if you’re that enthusiastic about selling your house, but are mindful of the pandemic.The technology uses a specialised camera that creates 360 degree views of your home and allows you to literally “walk through” the home via a computer or smart phone. Hausples will soon be introducing this technology to its website to allow potential buyers and renters to make decisions on a home purchase. Virtual tours are commonly known for having an additional feature of emotive music to capture the ambience of different areas of a property.Another form of a virtual home inspection is live stream. Facebook, Instagram or YouTube are ideal platforms for live stream virtual home inspections, leading to live engagement between seller and buyer online, all the while maintaining the characteristics of an on-site inspection in real time.And in the wake of the current pandemic climate, whatever alternative you choose, if it’s better than the invention of sliced cheese, you don’t need a second thought. (pun intended)  How will paperwork be done?For private viewing, if the prospective buyer is satisfied and proceeds to the final stage of the selling process, all paperwork can be done on-site at the expense of social distancing protocols.With virtual tours, a similar result will become a thing for online conveyancing and there’s lots of room for it; email, phone or video call, along with electronic signature options that make closing a sale as easy as butter on bread - not to mention eSignature or DocuSign. Will the coronavirus outbreak affect the value of your property?Quite frankly, it’s still early to predict the impact of the coronavirus pandemic on PNG’s real estate market, and the extent to which the impact will last. But there’s a huge probability that property values are bound to drop, due to cuts not only to interest rates but other areas as well like employment and income.So as a seller, you have to expect things to get weaker. However, would-be sellers who have greater flexibility and are able to postpone the sale of their home can be shielded from price falls. This is where you will have to make the decision as to whether you will be able to financially hold onto your property in the immediate future, and if selling at the right time at a low in order to cover any financial burdens encumbered is the best way forward.There are still property owners who are eager to sell, whatever the reason may be. The turnover? Apart from an apparent decline, new properties as well as renovated will still be entering the market, further suggesting that the increase of properties for sale will result in a competitive seller market, with new and long term property owners looking to sell at a lower price tag.The good news, however, is that businesses continue to preside in a rewritten conduct as preludes to social distancing protocols. While the global economy is seeing red flags, the PNG economy is still active and money continues to circulate as buyers buy and sellers sell.  So at this juncture, you want an agent who has adapted to this climate rigorously and has everything necessary to take you forward with your circumstances. You’ve sold your property. Selling a property amid the COVID-19 pandemic is an experience unlike any other because of the new measures implemented to cope with the current situation.Here, preparing to move in order to make way for the new owner is a process on its own, this time involving what is fast becoming the culture of the day:- face masks- hand gloves- hand sanitizersWhich will extend to the final goodbye and handing the keys over to the new owner.  Final thoughtsWhether you’re a seller, a buyer, renter or simply an investor, it is crucial from this point on that you conduct your business with public health restrictions and measures to prevent the spread of coronavirus in mind.Always observe WHO’s advice when out and about or in self-isolation.This article is meant for information purposes only and not to be construed as professional advice for financial and investment transactions. Hausples strongly recommends you consult a realtor about your real estate situation.Subscribe to our email newsletter to get the latest updates delivered right to your inbox for FREE!.
Working Effectively From Home During Self-isolation
Working Effectively From Home During Self-isolation
June 7, 2022, 2:36 a.m.
News
Advice
Since the reality of the coronavirus outbreak, the need and demand for self-isolation or self-quarantine has never been so dire, both domestically and internationally - it's as if all four corners of the globe have become ground-zero for any form of movement and physical interaction. Working at home may sound exciting, at the same time challenging and confusing; because normally this is something only true in countries overseas, in movies, novels and readers digests. Nothing hands-on in PNG, for many. Further research will suggest that only a fraction of the general populace - the size of a fingernail - are familiar with this way of working, and may comprise field workers and freelancers to that extent. Nonetheless, self-isolation is for everyone including employees and as a global community, no one is immune to this new normal.  So moving on, here are few tips and tricks to help you adjust in order to acknowledge the merits of working from home: 1. Establishing boundaries under one roofMost PNG homes may not have a suitable room or work space with furniture to imitate a comfortable work environment.To elaborate on this point, observe the chart below, because it is at this stage that you will have to establish clear boundaries within your home:Nearly half of respondents live with their immediate family or extended family. PNG is a family oriented societyMean occupancy is between 4 to 6, surprisingly 16% have over 10 occupantsWith this in mind, the first step is to discuss with your manager about what is exactly expected of you, then communicate that aspect of your reality to your household. This way you prevent misunderstanding and unexpected surprises from disrupting your work later on.If you're single and live alone, this won't be a major problem. But if you're on the opposite side, then make sure that your partner and/or immediate family are on the same page with you. 2. Be in regular contactDo you sometimes feel alone and stuck in a void, with emptiness your only companion? Whether you're far or near your family and friends, keeping in touch not only benefits your soul, but also your well-being and your health.So, even though COVID-19 has ignited a culture of social distancing and self-isolation, it doesn’t mean a complete resignation from social and professional interactions. Even while in isolation, keeping in touch with your family, friends and colleagues is crucial to your mental and physical health. Communication tools like Slack, Skype For Business, or Zoom will help keep you in the loop with your colleagues and employer in real time. Staying connected socially through Facebook, Twitter and Instagram will do all the more better for you. If you can’t afford face masks, gloves and three feet apart, at least a hand gesture indicating a wave, a head nod or an acknowledgement will do also.More importantly, staying in touch with your office at this time. 3. Limit distractionsWhile working from home is a familiar lifestyle for others based overseas, it is something new for many in PNG. Come to think of it, there's an overwhelming guarantee for hilarious moments, particularly for first-timers..For instance, imagine it's your first time to partake in a video conference. After formal greetings, the meeting proceeds. While everyone, seemingly, are all eyes and ears on the boss, you're admiring yourself in the bottom right screen on your computer looking back at you. To your colleagues and your boss, you’re obviously tuned in; sometimes nodding to the suggestions, sometimes smiling, but mentally entrenched in your self-image. Then, out of the corner of your eye, you see something on the wall behind you that resembles your underwear, at which point you realize you forgot to remove while preparing for the video call - welcome to the land of the unexpected. But this shouldn't be a discouragement for you. Instead, it's meant to be a lesson and something to remember when preparing your workspace at home and most importantly preparing for a conference call. Make sure everyone around you is on the same page so the unexpected is prevented. 4. Anticipate reliable internet connection and power supplyAs it is customary in PNG, frequent blackouts and unsteady internet connections are way beyond anyone’s control. For instance, one network provider will be offering the best call and sms bundle apart from its competition; yet fail in offering an efficient, reliable internet connection. The other may win hands down with internet connection but at a price: costly and rapid data usage for some reason. The rest will remain a bait for educated guesses and hilarious speculations.The challenge here is to have a secure, cost effective and reliable telecommunications and electricity service.This is why it’s important that your employer must have a fair idea of what it’s like to work outside of the office’s free Wi-Fi connection, and what to expect. 5. CommunicateSince employees will be susceptible to the new culture of working from home or remotely at the behest of their employers, communication tools will be of great demand this time around, in order to maintain a normal work environment. In fact, you may have adapted quickly to utilizing communication tools and gaining knowledge of it within a short span of time. You may have also learned which tools are separately suitable for the different communication scenarios in a professional setting. But using communication tools is one thing, communication itself is another. And if you don’t communicate regularly with your employer or your employer has no idea of what you’re up to, then what’s the point of all that knowledge about communication tools?Round the clock communication while working from home also says a lot about your character as an employee. According to local SME, Mr. Michael Paike, consistent communication between employer and employee is paramount to a business’s success. “Productivity can’t be measured when you have people working unsupervised,” added Mr. Paike. “Employers need to be in touch with their employees on a regular basis, to ensure that no two people are being paid for doing the same thing.”  6. Keep time zones in mindAs a first timer working from home, make sure you understand the different time zones of the world and the importance of dancing to that tune while keeping in touch with your colleagues in these time zones.For instance, a determined buyer in England is highly enthusiastic about a current listing in Port Moresby that you posted on your website. For a start, he contacted you by email. But because you both live in different time zones, you saw his email the next day when you logged on, meaning it was daytime for him and nighttime for you when the email was sent.To avoid this, you get back to him apologizing for the delay in response and ask for a time suitable for instant interaction, to move the interest forward.Moreover, if you work in a multicultural company with offshore ties, chances are you will be communicating with your counterparts overseas at some point. This is where the different time zones are in effect, and if you’re someone who knows how to cater to their needs, you might just be the one they feel obliged to communicate with on a regular basis, even while in lockdown; because, you seem to communicate at the appropriate hour. 7. Practice healthy habitsWorking from home has its drawbacks, and none more obvious than eat, work, sleep, repeat, without sweat. Know what’s next? Complications of the heart and probably six doors down to neverland. “Certainly, staff should practice good hygiene and try to maintain good health, including keeping themselves physically fit and healthy,” said Department of Higher Education, Research, Science and Technology’s Principal Media and Public Relations Officer, Mr. John Karani.Engaging any form of fitness in between your breaks, naps and total free time - before or after work - will result in a healthy perspective and optimism, as well as being in tune with your immediate surroundings and your work schedule.Whether it’s grass knives, sand shoes or push ups as early as 5 A.M., if it’s worth staying healthy, it’s worth doing.In these trying times, you can’t fall sick especially when you’re working from home and there’s a deadline to meet. Practicing healthy habits mean abiding by health advises on COVID-19, stretching and warming up in between work sessions, and engaging in healthy diets will keep you in a healthy state of mind, while working in isolation.  BottomlineAs well as what is expected of an individual in a new environment, working from home in PNG requires a lot of adjustments and change in work style with care and focus. Although working from home has its drawbacks, it doesn’t mean it’s detrimental in more ways than one. It simply means identifying and patching the cracks so that everything thoroughly and smoothly. Success will only follow if you take into consideration the dos and don’ts of working effectively from home, and making an effort to balance your personal and professional life under one roof.
The Answer To Property Inspection Woes In PNG Amid COVID-19
The Answer To Property Inspection Woes In PNG Amid COVID-19
June 7, 2022, 2:36 a.m.
News
Advice
Alongside expansion and advancement in technology and social media to date, the nature of communication has changed significantly. In this modern age, it’s all about instant, effective and impressive transmission of information, and with a twist, too: working from home or remotely for that matter.You can now connect with your family in Manus, a colleague in Lae, or a business acquaintance in England online with just a click of a button. Better still, you can easily do this in the comfort of your lounge, verandah or bedroom, while utilizing the capabilities of digital softwares inbuilt to your phone or computer.Since it's still early to give an accurate account of how long the COVID-19 pandemic will last, and to determine its impact on the housing market in PNG; you can take comfort in knowing that the digital marketplace is available for the taking.From sales pitches and listings description, to enquiries and property showings, to signed contracts; virtual tours are the epitome of the modern real estate market.Sadly, it's not a question of "If", but "When" a virtual listing will become standard practice in PNG’s property market - suffice to say, will the current coronavirus situation be the catalyst for a new way of doing business in PNG real estate market? We hope so.Busy work schedules and lazy excuses aside, when it comes to real estate buying, selling, renting, and investing; the real estate generation of today turn to the internet as the first stop for information - to quench their thirst for everything real estate. Yes, by now, almost everyone knows that the internet provides unlimited access to hundreds and thousands of real estate portals, like Hausples.com.pg. All the while it was business as usual, until COVID-19. Once you had the presence of mind for a person-to-person contact with an agent or client; your freedom of movement is now commanded by travel restrictions, hand sanitizers and paper tissues. Fortunately, as a new terrain comes with a new approach, not only has the coronavirus brought upon a dark and gloomy future on the world, but light bulb moments too; moments to adapt and evolve; moments for new ideas and behavioural change, of cooperation and adherence, and the continuity of real estate businesses in a new environment,So we ask ourselves, as realtors, are we able to work from home? Ultimately, this would be a question of both personal and professional preferences with no correct answer. But given the COVID-19 threat currently at our door steps, the only answer is an upfront “yes”.  Accompanying the all-presence of mobile devices and most company applications available via cloud services, the process of transitioning the bulk of your office workload to your home has been made a lot easier. Still, as COVID-19 rages on and many businesses have mandated their employees work at home, there is much to appreciate about certain technologies that make remote work setup a convenience.  In real estate alone, however, virtual tours have become standard practice across any realtor website, this is why we’ll be looking into the benefits of these interactive solutions and how they can help realtors at this point in time: 1. The next big thingA part of the value of a realtor's service provision is their ability to manifest a successful marketing plan. Standard real estate marketing strategies have been incorporated across every digital platform. Real estate websites that feature virtual listings have proven to be an effective way of telling clients that the agent responsible is aware of cutting-edge technological solutions; further indicating the quality of their service through a versatile marketing toolkit.The end result is an impressive property listing by a marketing savvy professional. 2. Interactive by designTechnology that's interactive is exemplary by definition - a realtor's audience will always enjoy these forms of digital media, because of that fact it gives them room to explore independently. Virtual tours offer clients the chance to investigate what is known as a realistic digital environment - where clients have the leverage to visit every space in the property and even zero-in on every detail of each room such; as light fixtures, wardrobe layouts and type of tiles used for the flooring, all accessible through their smartphones and laptops, without having to leave their homes.What is common about virtual real estate tours is the use of 3D videos that have the capacity to hold attention for minutes at a time. This means that viewers are more likely to feel emaciated/invested during the interaction, and willingly move on the next stage in their property purchase journey. 3. Sense of ownershipOnce established, a sense of ownership is important in urging clients on the path to finalizing deals and agreements. Through virtual tours, clients tour properties independently, in their own pace and time. Where a sense of ownership has been established, the next dose is a sense of autonomy and personal connection which are conclusive in this virtual property experience.And like toy blocks, you can also enhance and deepen the spirit of virtual real estate tours by adding a suite of associated interactive features (mortgage calculator, information about local amenities, and interactive maps, etc), so clients can use these to conduct individual research.Psychologically, the concept of reciprocity works very much the same way here. When clients develop a personal connection with the property through virtual tours, they feel committed to reach out to you with an inquiry. You give them a sense of connection, they become loyal to you. 4. Available around the clock every time, everywhereOpen house events are a big part of any and all real estate agents, but inherently involve extra hands - scheduling, staging, and hours on end on-site, keeping track of notes and contact information, etc.In a different shade of blue, virtual tours achieve the same effect through digitized efforts - listings are kept "open" and on display 24-7 in different time zones. You can also reel in feedback with virtual tours when you make room for social media and blog updates, where viewers are allowed to leave their comments and questions. 5. VersatilityAt first, virtual tours will feel like they're time-consuming and are expensive marketing alternatives. But once you become immersed in their application and success you will find that incorporating them into a range of your marketing arsenal such as email marketing and open-house notifications wasn't a bad idea after all. It's worth remembering that they aren't restricted to strict realism.Virtual tours act as innovative solutions to agents representing properties that aren't ready yet for a move-in, especially properties that are new and buildings under renovations. A virtual tour opens the door to finished, furnished interiors and sometimes exteriors - making it that much simpler for prospective buyers to see themselves inside.Moreover, virtual tours have proven to be the epic attraction of views and generators of leads, than text and still images will ever be. When you consider incorporating this technology into your digital marketing plan, you've given yourself a solid advantage in a competitive market. The bottomlineYou must also realize that in the current global situation we're in, interactive technologies such as virtual tours in especially real estate make excellent substitutes for physical property inspections, and interactions. Although it hasn't made headlines yet in PNG, it's truly the way forward. Moreover, virtual tours have proven to be the epicenter of attraction in real estate digitized home showings than text and still images will ever be. When you consider incorporating this technology into your digital marketing plan, you've given yourself a solid advantage in a competitive market.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 Reveals PNG Real Estate Survey 2020
Hausples Reveals PNG Real Estate Survey 2020
June 7, 2022, 2:37 a.m.
News
Events & Announcements
Real estate enthusiasts had much to gain from Valentine's Day than the average night-for-two hotel package. PNG’s leading property portal, Hausples Limited, revealed the PNG Real Estate Survey 2020 last Friday, 14th of February, 2020 at the Lamana Hotel.  The occasion was more than just appealing to real estate professionals, VIPs and a few guests. Invitees were treated to an insightful three hours, punctuated by key sentiments concerning the current property market, as identified by the survey. “The survey isn’t just about numbers. It gives us feedback on what the consumer is actually after,” said the General Manager of Hausples Limited, Tom Snelling. “It gives us an idea of the wants and needs of the consumer, such as how many bedrooms the people want? What’s the landmass that people want? How much money are people willing to spend on houses? This is the information we need in order to build properties that sell at the end of the day.”     With four years of data on hand, Hausples is able to update and single out consistency in the data, since the first survey edition in 2017. However, according to Mr. Snelling, anomalies are a given every now and then. So what the number one property portal does is to visit the blueprint of these anomalies, in order to determine a corresponding standard.Hausples proclaims that such occasions are strategic paths for real estate and related industry professionals to extend their market reach, as well as improve their list of genuine business partners. In retrospect, this survey is designed to benefit real estate agents, developers, builders and contractors. Some of the key outcomes that were noted during the occasion were: Nearly half of the respondents claimed they share the same roof with their immediate family or extended family; hence, PNG is a family oriented societyMean occupancy is between 4 to 6, where a surprising 16% had over 10 occupants Household  incomes appear to have dropped significantly since last year. Those earning less than K2,000 per month has jumped to 36% (against 27% in 2019)Last years survey was conducted just 5 weeks after APEC, so those results may have been overstatedThere is an increase in the under 30’s, which represents the portion of the population that earns less than their elders. Number of people wanting to rent a house has increased to 54% (40% in 2019, but 58% in 2018)Apartments have dropped against last year’s results Again, this could be the result of APEC Usual suspects in terms of preferred Location to buy property were Boroko and Gerehu, topping out the listThere is an notable increase in demand for outer-city locations such as 9-Mile, 7-Mile, Napa Napa/Lea Lea - almost certainly due to cheaper pricesTokarara was favorable among buyers in the sales market, compared to the rental marketHi-Set houses are still the most popular choice and the results are mostly consistent with previous years, except “Land Only” which improved by 5 points for this yearInterestingly, Apartments are extremely unpopular in the Sales market at 4%, compared to the rental at 40%New properties are more popular than established ones - and “Serviced Land” is also in demand.Looking deeper into the types of houses our respondents want to buy; 3-Bed to 4-Bed is a must, and little demand for anything smaller. Again, PNG is a family oriented society. People are prepared to accept modern materials over brick or timber, probably due to the price difference.Acreage-wise, 300-500 sqm or above is the most popular choice. In comparison, the average block  size in Australia is 474sqm. This gives us a lot of information for property developers about the type of housing, location, sizes, and preferred materials. But the question is, how much are people prepared to spend?  As expected, anything within the First Home Ownership Scheme is most sought after, a probable cause for higher prices to wither quickly. Basically, the task is to build a 3-bed house for less than K400,000. However, we have established a demand for Serviced Land at a similar proportion to less than K200,000. The majority would expect to put a minimum 10% down as a deposit. The deposit would mostly come from a Housing Advance, but the bulk of the finance points to a home loan.Most respondents would be first home buyers How people view other financial products, such as insurance, shows maturity in financial literacyAbout ¾ would definitely take out an insurance policy and 23% saying maybe. Again, the majority (88%) requested more information on home insurance. “More affordable housing” is the biggest request change in the property market, and most of the sentiments revolved around price regulation. Realistically, regulation would be almost impossible to implement. However, it does show that there is concern within the market about property prices.“Such property events are very helpful and informative, especially the latest from surveys. It helps us real estate professionals in many ways, and not just property managers, but all stakeholders like property contractors and developers,” advised Mr. Carlito Adlawan, property manager of KMS Property. “In my line of duty, I rely on information on the Hausples website, to understand the locals’ perception of the affordability of the property market and pricing demands. These events are in themselves informative and today was no different. I’m wishing now that I should’ve asked my mates from Primus and Salcon Builders to come along. It’s the kind of information they’ll be interested in.” Moreover, the event proved worthy as an ideal platform for extensive business growth and networking in PNG’s real estate sector. From a consumer’s standpoint, the sentiments become the instrument for companies to measure the level of satisfaction around their products and services, and are suggestive of what’s working, what’s not, what should be done, and what is expected. For more information, simply: Visit www.hausples.com.pg, email: [email protected], or call: (+675) 74700243. CLICK HERE TO DOWNLOAD FREE
COVID-19 And The PNG Real Estate Market
COVID-19 And The PNG Real Estate Market
June 7, 2022, 2:39 a.m.
News
Advice
The first case of COVID-19 reached the shores of PNG on March 22nd, 2020 and the number of positive cases reached over 23,000 by October 2021. Although Papua New Guinea has adapted to the pandemic, the economy and real estate sector has of course been impacted.The routine process of buying, renting, or selling a property - as well as home viewings, interested buyers, motivated sellers, and rent enquiries - were forced to adapt to the "new normal" and the mechanics of the property market have changed.It’s been challenging, and the vaccine hesitancy has slowed the rollout of the vaccinations in PNG, which got underway in early May 2021 with the support of UNICEF.How long will the pandemic last? The answer is uncertain. Deja vu?Fortunately, the Real Estate Market has seen it all; from outbreaks, economic recessions, employment redundancies, shifts from a seller’s market to a buyer’s market, lower interest rates, the list goes on. How long the virus outbreak will last, no one really knows for sure. Globally there is a recovery but variants of COVID-19 remain a concern. Real estate is also moving - albeit slowly, while the rental market was impacted by the exodus of expats due to the pandemic. The strict travel restrictions in Australia and New Zealand were contributing factors, although these appear to be showing signs of relaxing by Q4 2021.It is not true to assume it’s business as usual in PNG. Business is continuing, and under the implemented changes to practice social distancing and guidelines from the government and the Commissioner of Police and Controller of the Papua New Guinea COVID-19 National Pandemic Response.Specific to the real estate sector, this means instead of meeting an agent in person for buying or selling a house, clients have the privilege of video chatting, skyping, or simply chatting via Google hangouts or Zoom. A virtual tour might soon become a real estate ritual in PNG. COVID-19 is currently rewriting the book on human interactions and conducting business remotely, so perhaps “virtual real estate tours” might qualify as a new permanent chapter. Listing Property in PNGAs a seller, a lot of buyers are looking to earn the homeowner status. It's essential to anticipate your target buyer (and keep an eye on the profile of buyers in PNG).As long as you understand that if you have a solid reason to sell and you’re enthusiastic about it, then don’t sit on the sidelines. You might end up like the fisherman who let the big fish slip away. Remember, a house that’s been on the market for quite some time loses value and appeal. Buying Property in PNGImagine, with discipline, you had saved up enough to match your down payment for your ideal property. If your home buying plan was to take place before 2020, the future looked promising...until the coronavirus appeared and changed things as we know it.Should you still wait, or should you go ahead with the purchasing property during the pandemic?Undeniably, the economic impact of COVID-19 is extensive, affecting everything, from stock market shares to motivated sellers, to the willingness of both a buyer and an agent to attend a home viewing - enough reasons to raise doubts about purchasing a house.But, like sellers, if buying a house during this period of time is your goal and you’re willing to go the extra mile to achieve it, no matter what, go for it! Devise a plan, consider the options that persist with the restrictions, and work towards your goal. Even though viewing a home in person might not be your best option right now, you can always fall back on other viable online media applications to elicit communication and information.  There is also the possible mid to long term shift in the rental and homeownership situation in PNG. The clear impact of the pandemic on having fewer expat workers could mean that possibly more Papua New Guineans, especially those who may have been promoted into positions previously filled by expats, could be looking for properties it was reported by Business Advantage PNG.AgentsThe real estate market doesn't just collapse in a extreme situation like this. People will still be looking at properties via the internet, and this is where, as a property agent - you want to be prominent. From the comfort of a dinner table, lounge room or coffee table, agents can still conduct business with clients online via Skype, a WhatsApp call, Zoom, or a Google Hangout. COVID-19 has accelerated adaption and technologies.While in-person interactions have been restricted, take advantage of the situation by adapting for your buyers and sellers and also be ready for when restrictions ease in PNG. The fact of the matter is, you need to consider all of the health aspects of conducting your work and act responsibly to prevent the pandemic from spreading.Of note in the business of real estate, if your clients still insist on viewing a home you’ve recently listed, consider the following advice from the WHO:              Practical considerationsWhat do you get when you cross a search engine, an email and a website? - Digital interaction - business-wise, at least. There is a raft of paid-for and free digital tools at your disposal which can help you conduct your business remotely and safely, and of course online.The property market wrestles with both stagnation and slowing demand (just like stock markets). Real estate investors and stakeholders have to keep in mind that a property is both desired, and a long-term investment. Imagine not owning a home to quarantine in during these difficult times; what are the risks of you contracting or spreading the Coronavirus? From a social, work, and mental aspect, people have adapted to the situation from the comfort of a home.The Hausples website search volumes maintain a consistent growth on a daily basis. What that means is that people are still looking for houses to buy and rent, and what better way to do your bidding than interacting with property buyers, investors, renters, sellers or agents - online.Yes, COVID-19 may be responsible for changing the way the world and PNG operate and interacts, and for introducing social distancing to our vocabulary. Travel restrictions and restrictions of movement in your locality in PNG, may prompt real estate buyers, sellers, renters and investors to avoid engaging in substantial transactions is a real-world challenge.But digital interaction and engagement will prevail, as far as the continuity of the property market goes.Here are several practical options you can consider if you wish for your real estate business to endure this pandemic:Virtual toursWhatsAppSnapchat Video chatsGoogle HangoutsSkype Video conferencing, etc Safety Precautions in PNGWhile there's a lot of great information on the essentials you need to know about the coronavirus online, there are some sources that are unreliable. Be careful not to fall for fake news. For well-informed, factual updates, visit official sites or your genuine local media platforms.Common sense should be the key compass for agents, buyers and sellers in these times, in order to make things work, and even thrive. Here’s a few common-sense approaches to staying safe in PNG:Wash your hands with soap and water for at least 20 seconds.Washing your hands is an easy yet effective way to prevent the spread of germs. A trick is to hum a favourite song twice to make sure you wash your hands an ample amount of time.If you don’t have immediate access to soap and water, apply an alcohol-based hand sanitiser with at least 60% alcohol.Wear a facemask to help prevent the spread of disease in the community.Cough or sneeze into the inside of your elbow, not your hands, if you don’t have a tissue.Avoid close contact with people who are sick. Always ask your client before any interaction about their travel history.Constantly disinfect surfaces in your workplace and home.Commonly touched surfaces like doorknobs, handles, computers, tables, switches, toilets, bathroom sinks, counters, and stationeries are potential breeding grounds for germs. Make sure to regularly disinfect these areas, either in your office or before a home viewing takes placeRemember: Cleaning is different from disinfecting. Cleaning merely removes germs, while disinfecting kills germs. For good measure, first, clean a surface with soap (or detergent) and water. Afterwards, you’ll have to use chemicals to kill the germs and lower the risk of infection.Stay healthy -  Get plenty of sleep, physical activity, fluids, and nutritious food to strengthen your immune system.Helpful COVID-19 Resources for PNGBe wise and keep yourself updated on the latest safety tips from reputable sources - organisations that can offer health advice on how to protect yourself and your family and loved ones during these times.Coronavirus Disease - World Health OrganizationPost-courierNational newspaperFM 100EM TV Online NewsBBC WorldThere’s no room for panic during these challenging times. In our quest to navigate such outbreaks, like the current coronavirus. Choosing to panic means choosing illogical and negative thinking, follow the official advise and keep safe and healthy.Here's what the World Health Organization says about overcoming stress:Don’t forget to subscribe to our newsletters for the latest PNG real estate news and updates.
Real Estate Economics And The Factors That Affect The Real Estate Market
Real Estate Economics And The Factors That Affect The Real Estate Market
June 7, 2022, 2:41 a.m.
News
Advice
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!.
To Buy Or Not To Buy?
To Buy Or Not To Buy?
June 7, 2022, 5:53 a.m.
News
Advice
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!.
7 Things To Avoid When Selling Your Home
7 Things To Avoid When Selling Your Home
June 7, 2022, 5:40 a.m.
News
Advice
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.
Ultimate Guide About Renting in PNG
Ultimate Guide About Renting in PNG
June 7, 2022, 7:18 a.m.
News
Advice
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)
11 Steps To Buying A Home In PNG
11 Steps To Buying A Home In PNG
June 7, 2022, 7:12 a.m.
News
Advice
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.
A Room For Every Mood And A Space For Every Vocation
A Room For Every Mood And A Space For Every Vocation
June 8, 2022, 3:52 a.m.
News
Housing Projects
A decade ago, within a certain belt of downtown Port Moresby, only a handful of addresses were truly monumental - chief among them were PNGBC, Steamships Plaza, Travelodge, and Seapark. Recently, however, as new real estate infrastructure takes precedence in and around Port Moresby, a new pecking order has risen. The story begins with high profile companies, new investors and property agents, as well as property developers finding their place in the real estate industry, with a mirrored goal in mind: rewrite the definition of luxury living. Thereafter, the standard of luxury living, in Port Moresby, has reached new heights with the opening of Nambawan Super Limited’s newest property investment: The Penthouse Apartments.Much thought was put into ensuring that this tower of dream-apartments stood apart from any other residential property in the nation’s capital – even down to a quaint kaynemaile architectural mesh that is specified and installed over the entrance to the tower’s foyer. The kaynemaile mesh - named after the creature, armour and weapons art director of Lord of the Rings movie trilogy, Kayne Horsham - dramatically reduces static loads on buildings, installation time and costs. Constant breeze from the Coral Sea moves the sheet so it ripples like an ocean wave throughout the day. This theme of uniqueness and affluence runs throughout the Penthouse tower. There are 14 exceptionally finished and beautifully furnished units, and no two apartments are the same. Sixty-two different types of tiles were used in the Plaza, catering to a total floor and wall area of 28,525m². That’s enough tiling to cover 22 Olympic-sized swimming pools!And if you like pools and are the kind of person who starts off their day with a few laps in the pool, you can take a swim in the lap pool and then make the most of the tropic’s balmy morning sunlight by sunbathing by the plunge pool.  At any time of the day, residents can step out of the sprawling indoor living and entertaining spaces onto a secure balcony. With views overlooking Fairfax Harbour, one can witness stunning sunsets in the evening, or watch the lights from the port’s busy pier that solemnly reflects the sea.Inside, there’s a room for every mood and a space for every vocation. The Mimosa Residences comprise a dual 2-bedroom apartment on the building’s second level, offering spaces of up to 300m². So really, there’s no need to worry about people bumping into each other when having family, friends or business partners over for dinner or light entertainment.  Extending over levels 8 and 9 are the Bellini Lofts. Characterised by large, outdoor living areas and expansive views, the Lofts offer generous double-height open plan and dining spaces. Breath-taking elements are eloquent throughout, but none more compelling than  the black marble-top kitchen with streaks of gold, and the floor-to-ceiling windows that enable sweeping harbour views are the most stunning of all. Embodying an aura of functionality and aesthetics, these kitchens have what it takes to draw your family and guests into the very heart of your home, with open arms. For the kitchen experts, we know that the kitchen is your wading pool. Fitted with thoughtful contemporary appliances, including one of the world's leading brands in kitchen accessories, Gaggenau, your kitchen skills will not be in vain.On levels 10 and 11 are the Manhattan Penthouses, that feature a series of individual three-bedroom units that come complete with an open plan living area, a media room, a study, and bedrooms that are signified by separate en-suites and walk-in closets. The Martini Suite represents the best of living in the Penthouse tower. Occupying the top two floors, with a total floor area of 765m², this unit factors in expansive double-height open plan living spaces. Wine fanatics will love the top level, which can be used exclusively for entertainment, marked by a full floor-to-ceiling, wall-to-wall wine rack. In a snap shot, every apartment features a smart TV in every room, while each entertainment capacity, also containing a cable TV, is wooed by a packaged internet plan and ducted air conditioning. Residents will have the privilege of a fully equipped gym and lap pool, in addition to a secured basement carpark, as well as additional storages.The Penthouse Apartments, in company with two other developments within the Nambawan Plaza Precinct, will form a centralized, single pedestrian-friendly development project. The two other projects are Deloitte Haus, which is intended to be the hallmark of modern office spaces spread across 11 floors; and the 54 storey, two to three bedroom, Crowne Plaza Apartments, which are managed by the InterContinental Hotels Group. If you’re looking for a long-term rental accommodation, owned by a location that hinges on luxury, security, and high-end dining coupled with retail amenities, look no further.
How To Know If It’s A Buyer’s Market Or A Seller’s Market
How To Know If It’s A Buyer’s Market Or A Seller’s Market
June 8, 2022, 3:53 a.m.
News
Advice
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.
First Home Ownership Scheme - What is it and how does it work
First Home Ownership Scheme - What is it and how does it work
June 8, 2022, 3:54 a.m.
News
Home Loans & Insurance
Most people find that their journey towards homeownership is often overwhelming and stressful. It’s the biggest financial decision they will ever make, as first home buyers. With more and more homes costing hundreds of thousands of kina, most of these first home buyers experience a lapse in their ability to pay cash upfront - for the entire property. As a result, they turn to banks for loans. BSP First Home Ownership SchemeBSP’s First Home Ownership Scheme is not an ordinary loan. It’s a specialized loan facility designed to suit borrowers who have the outright potential to repay the loan. And like any other loan, FHOS is a convenient contract between BSP and a first home buyer, when it comes to buying a home.With a strong tailwind, the FHOS significantly applies to newly built homes, or brand new homes soon to be completed. These properties must prove to be on a state leased land with a genuine title. The home buying experience can be intimidating in a way, but with a teaspoon full of motivation, you can calm your nerves to put that journey into perspective, with BSP’s First Home Ownership Scheme. There are three types of loans currently available at BSP:BSP Standard Home LoanBSP Personal Property Investment LoanBSP First Home Ownership Scheme And each loan is typically influenced by four main characteristics:PrincipalThe principal describes the original amount being borrowed. It is the amount a borrower gets from a lender upon application, excluding closing costs and other related fees.The TermThe term of a loan explains how long it will take for it to be paid off. For instance, FHOS can take up to 40 years to complete.Interest RateRefers to a portion of a loan typically expressed as an annual percentage of the loan outstanding.Repayment FrequencyRefers to how often you should make your payments until the loan is paid off. Let’s consider an example that illustrates the four main factors in perspective:Picture this, you decide to buy a house so you begin your search and you came across one that matches your definition of the ideal house. It’s worth K400,000.According to your financial situation, you will need a loan to help secure the house, so you turn to BSP. But in order to get that loan, BSP requires that you purchase 10% of the house, to begin with, as a down payment. So, you chip in K40,000 (10% of K400,000), and BSP covered the remaining amount of K360,000 (the principal) with a fixed term of 40 years (the term) at a rate of 4% (the interest rate), which is to be repaid in monthly installments (the repayment frequency). By putting these numbers into BSP’s Loan Repayment Calculator, your monthly repayment would be K1, 688.(Note: Your monthly repayment amount does not include property taxes, personal insurance or other additional fees) Components Of The First Home Ownership Scheme (FHOS) BSP’s First Home Ownership Scheme is characterized by:A minimum loan of K200,000 and a maximum of K400,00040 years maximum repayment term4% fixed-interest rate annually1% additional bank feeLoan amount exceeding K400,000 will be assessed under BSP Standard Home Loan Fixed-Rate LoanBSP’s First Home Ownership Scheme is a fixed-rate loan. Meaning, the interest rate on this type of loan remains consistent throughout the term; it doesn’t go up, it doesn’t go down and it doesn’t go sideways (pun intended). Case in point, in the previous example, say your annual loan repayment amount is K20, 256 (K1,688 x 12 months), and comprises the 4% interest rate on the principal. This 4% will not change throughout the term of the loan - it is unchangeable, and that is what is meant by a ‘fixed-rate loan’. As one of the most common types of home loans, a fixed-rate loan such as FHOS requires a borrower to repay the principal over a ‘fixed term’ (an unchanging length of time) with a ‘fixed rate’ (an interest rate that never fluctuates over that length of time).This type of loan is ideal for borrowers strongly interested in a steady and predictable loan repayment term. Borrowers are usually allowed 30, 15, or 10 year fixed-rate loans. Traditionally, the shorter the term of the fixed-rate loan, the lower the interest rate.The magic of home loans is that they make home ownership a truth for everyone. But not without a substantial investment (closing costs, down payment, time to apply, etc.). How to qualifyIn order to qualify for a loan, a borrower typically needs to submit some forms of identification and basic personal financial information, such as employment history, projected down payment amount, authorization to pull credit rating and so forth. For BSP’s First Home Ownership Scheme, a borrower is required to provide the following proof:Be a PNG Citizen and a first home buyerProvide proof & evidence of 10% equityBe an employee of either public service or the private sector and earning a regular incomeProvide Bank StatementStatement of outstanding debts with other banks or financial institutions for the last three months if any.Provide three (3) months statement if account is held with another bankProvide three (3) latest payslipsConfirmation of employment or copy of contract of employmentHow to ApplyComplete a BSP Loan Application.Submit copy of Title Deed confirming ownership of land/Lease is State owned.Statutory declaration confirming acquisition is your first and will be owner occupied Understanding ‘pre-qualification’ and ‘pre-approval’ Once you’ve met all the lender’s requirements, you’re given a pre-qualification letter saying you’re eligible to purchase a home up to a specified kina amount, although the pre-qualification does not guarantee the final approval of the loan.At this stage, the lender is truly satisfied with your basic personal information, along with your deeper financial information - which may translate as your annual income history, recent bank account activity, and the likes. In fact, between pre-qualification and pre-approval, the latter is more strenuous than the former, where it involves a more in-depth look at the costs and interest rates that the borrower will be meeting as part of the loan. ApprovedWith BSP, a borrower qualifies for a home loan once a down payment has been made - immediately - after every qualification requirement has been satisfied. The down payment assures BSP that the borrower is serious about owning the home.The BottomlineOwning your own home is everyone’s dream. For some, it gives a sense of security. For others, it symbolizes accomplishment and prosperity. For a few, well, a shelter over their heads, a cozy corner to sleep in, a private space, will just about do it. With BSP’s First Home Ownership Scheme, you can turn these dreams into a truth. For more information, you can speak with BSP’s Relationship Manager or call BSP Corporate Banking toll free on 180 1100 or +675 305 7900.
10 Reasons Why We Conduct Surveys
10 Reasons Why We Conduct Surveys
June 8, 2022, 3:54 a.m.
News
Events & Announcements
Imagine coming across a property in the newspapers or on Hausples website that features everything you’ve always desired in a property. You’re instantly hooked the minute you caught sight of it. A deja-vu? You wonder. How could this be? Is it possible that your answers in a recent survey were taken into much consideration? Possibly! This is why surveys are mission-critical. And this is why we do surveys.  You see, stories hurt and stories heal. Stories make us who we are - they are our voice. And our voice represents the unseen within. It is your voice that influences property construction, design and the real estate market. It is your voice that brings about change. Even shape the future of the country. That’s how powerful your voice can be. But your voice can go unheard among the hundreds of individual opinions thrown around daily, and this is where a survey becomes effective. Voicing your needs and preferences via a survey has a causal effect. Once viral, it can easily dictate the success or failure of a business. Therefore, knowing what makes you happy and what makes you sad puts a business in a better position to think up ways to solve your problems. In this article, we’ll cover 10 reasons why surveys are important and how they benefit both a company and its consumers. 1. Acquire Valuable InsightA positive, working relationship between a business and its consumers is a fine art. No business has ever existed without customers. Consumers are the lifeline of a business; their preferences, concerns and needs make up the crucial element of survival for businesses. Therefore, a consistent barrage of consumer feedback acquired, analyzed and put into perspective can make or break a business’s development. Acquiring valuable insights from consumers help to determine the level of satisfaction gained from using products and services on offer. These valuable insights also help to recognize which areas of business operations need improvements, and which areas need consistent capitalization.   2. Understanding Customers’ Thoughts And FeelingsBy understanding what customers are thinking and feeling, a business is able to respond correctly to the consumer’s needs and wants. Empathy, either in a business-to-business or business-to-customer setting, leads to stronger social connections. In itself, empathy is the signature expression of a quality consumer experience, and it doesn’t breed contempt, rather procreates loyalty.Once a business begins empathizing with its consumers, it tends to regulate its emotions and ends up with an optimized market offering centered around consumers’ thoughts and feelings. Conducting a survey only solidifies this reality. 3. Knowing How Customers View BusinessesHow a business is perceived by consumers has a lot to do with areas that the business needs improvement in. It also sheds light on aspects of the business that has been overlooked previously by the consumer, or which the consumer may not have thought about.  4. Determine Business PrioritiesAt this point, a survey will outline the strengths and weaknesses of a business, average out the responses to see where each aspect of a consumer’s experience stands in the greater scheme, and modify certain processes that appear the best avenue to plough. Businesses may also want to find out the performance of their agents and to conclude if further upskilling is required.  5. Impressing CustomersEvery business thrives on consumer satisfaction. But only satisfying consumers is becoming a thing of the past. In a contemporary property market, a business only has the competitive advantage when it’s able to impress its customers, rather than just satisfying them. Knowing all about the aspect of a product or service that propagates a positive impression on consumers always leads to a positive brand image. And a positive image means growth and survivability in the market.  6. Tracking Changes In Customer PreferencesSurvey feedback is one way businesses find out how a consumer reacts to changes made by the business. Tracking changes in consumer preferences has the capacity to inspire new business practices. This is an opportunity in which businesses use customer feedback from a survey to devise a product or service that fits a consumer’s personality. 7. Preserving PrestigeA survey is an exciting medium in enabling a flexible communication between a business and its consumers. It is the brainchild of consumer feedback, because without feedback, how can a business know if it is offering the right product and service to its customers? Anticipating consumer feedback via a survey shows just how much a business cares about its consumers. 8. Word-Of-MouthSo much has been said and done to improve communication channels in this contemporary age and lifestyle. Despite immense benefits brought about by social media platforms and new technology, nothing beats good old worth-of-mouth recommendations from a reliable source. All things considered, word-of-mouth is the tip of the spear in the business world. And for a good measure, it can bring about doom or gloom upon a business. 9. LoyaltyLoyalty is not a given. Like trust and respect, it is earned. Loyalty is the by-product of offering a product or service that mirrors a consumer’s personality. Whether positive or negative, what the consumer experiences with a particular product or service reflects on the kind of loyalty that is to be earned. 10. Identifying behavioral cluesSurveys are rarely a one-time thing. As consistent as they should be, surveys assist companies in pinpointing similarities in behavioral clues in the form of trends within consumer feedback. Realizing these trends as actionable items lead companies down the avenue of improving their overall consumer experience and, therefore, delighting their consumers in the long run. Listing well over 3,000 properties for sale and rent throughout Papua New Guinea, the PNG Real Estate Survey 2020 is executed with one goal in mind...YOUR SAY. So let your voice echo across the real estate market. Let it embed itself in the hearts and minds of property developers, builders, and agents and bring forth a property that embodies your story.With one week left before the conclusion, don’t forget to take part in the PNG Real Estate Survey 2020. Your answers will go into a draw to win a Galaxy A50 smartphone worth over a thousand kina...Kudos!
2020 Real Estate Survey To Address Market Performance And Public Perception
2020 Real Estate Survey To Address Market Performance And Public Perception
June 8, 2022, 4:17 a.m.
News
Events & Announcements
The PNG Real Estate Survey 2020, currently hosted by Hausples Limited, seeks to address demands for affordable housing, purchasing power, property prices and desired reforms that mirror customer expectations. So far, more than 1,500 completed surveys have been submitted, and the number continues to rise daily. The survey is conducted annually among a supply of subscribers who receive regular updates from Hausples. Because of these surveys, Hausples is able to gain greater insights into new real estate trends, which is then made available to interested parties who have a special take on the property market.“Surveys of this nature give an opportunity for the general public to state their preferences in the real estate market,” says Tom Snelling, General Manager for Hausples. “It’s important to understand what homebuyers are looking for - the price range, acreage, etc., so that developers and planners can build accordingly.”Voicing your concerns and preferences or feedback is paramount to any survey, likewise the PNG Real Estate Survey 2020. From a customer standpoint, your voice becomes the instrument for companies to measure your level of satisfaction with their products or service, and is suggestive of what’s working, what’s not, what should be done, and what is expected.  The 2020 survey tallied responses from property agents, developers, investors and basically everyone else. Just under half represent the government, banking and finance, oil and mining, and real estate and construction sectors, while retail, education, hospitality, medical, self-employed and others comprised fair portions. Among the notable results:The average age of respondents is between 31-40. Compared to last year, the progressive number of respondents in this bracket has gone up by 3%.The survey also shows a dip in percentage of low income earners, but not so true for middle-income earners who are experiencing a gain;The general perception of the real estate market, however, falls within the confines of “unaffordability”, especially for rentals and sales; Still consistent, compared to previous years, Waigani is the most sought after location for residing. But an overwhelming interest points to out of town locations such as 8 Mile, 9 Mile, Edai Town and so forth;Over half of the respondents said they are likely to spend between K200,000 and K400,000 on a property; and,Contrastingly, financial literacy has greatly improved and most likely will continue to improve in the years to come “As far as the current survey goes, we are seeing growth in the mid to upper income earners, which is inspiring for PNG’s economy and individual purchasing power,” Mr. Snelling added. “And despite the general feeling that property prices are high, with limited appraisal for affordable housing, the survey indicates significant changes in attitudes and that suggests maturity in the real estate market in PNG.”The 2020 survey has been refined in order to obtain as accurate and unbiased information as possible. Location preferences include the whole of PNG as well as suburbs of the capital. There also appears to be a trend towards the purchase of land-only, for which Hausples is trying to gain a deep understanding of this reality. The general purpose of these surveys is to assess how satisfied the general public is with different aspects of the real estate landscape. Identifying unhappy customers is as important as identifying extremely happy ones (potential advocates).To wrap things up, the overall goal of any survey is obtaining actionable customer feedback that can be used for improving overall customer experience; hence, your satisfaction in the product/service offering. Nevertheless, measuring and tracking overall customer satisfaction is the first and most important step towards creating amazing experiences.You only have a week left to fill in the survey if you haven’t done so yet. Your answers will go into a draw to win a Galaxy A50 smartphone.
Best of Hausples: 2019 in Review
Best of Hausples: 2019 in Review
June 14, 2022, 12:05 a.m.
News
Events & Announcements
As 2019 comes to a close, Hausples avails this moment to appreciate the year. Since January, Hausples has remained consistent in maintaining its reputation as PNG’s number one real estate portal. From property developers, to property builders, to real estate agents, and investors, we have had so many amazing conversations and relationship building behind the scenes, and we hope to continue this trend in 2020 with greater significance.  However, our successes in achieving our goals would not have been possible without you - our beloved real estate community - and all that you’ve given as inspirational tools for our growth.  Here’s a roundup of our favorites for this phenomenal year, as far as our successes go. Home & Car Expo 2019As never before experienced in PNG’s real estate scene, Hausples and Market Meri fair-and-squarely pulled off PNG’s first-ever Home & Car Expo in June of this year. The Home & Car Expo 2019 fulfilled many a home and automotive needs in unexpected ways. Participants and visitors alike were treated to an array of housing and motor vehicle narratives under one roof. The two-day event was filled with entertainment, educational incentives, and informative cues. Many elated attendees went home with a piece of mind.Major players representing the real estate market and other related markets took advantage of this opportunity, thus making it one of the biggest events of 2019.For Hausples, this was nothing short of brilliant.  The Noble CenterNothing was nobler in 2019 than China Railway Engineering Group’s Noble Center in downtown, Port moresby. Unprecedented in size and sophistication, the Noble Center was completed in August of this year. Standing tall at a height of 95.6 meters, constituting a 23-storey nirvana of living, working and recreation, the Noble Center was one of the most featured topics of 2019.Being a major client of Hausples with several listings on our website, we are proud to consider China Railway Engineering Group (PNG) Noble Real Estate Co. Limited as part of our real estate community. Hats off to their successes in 2020 and beyond!   Lae Real Estate Show 2019Due to popular demand, Hausples decided on a second Lae Real Estate Show. Rather than allowing routine to dictate everyday scenarios, visitors assimilated to their curiosity of the event’s undertaking.Major players such as BSP Lae Branch, Nambawan Super, Hornibrook NGI, PNG Institute of Architects, Guard Dog Security Systems, Laga Industries and Niugini Electrical Limited, just to name a few, had much to brag about at the end of the show. New interests, new leads and qualified prospects were the highlight of the Lae real estate event. Attendees who were on the scene to get the pulse of the event shared the same sentiments and, like their counterparts at the Home & Car Expo in Port Moresby, went away with a piece of mind.  OPH Commercial Towers 1 & 2It’s a well known fact that a first impression will always be the last impression. Where personality counts, the newly built OPH Commercial Towers 1 & 2 by Lamana Development Limited in partnership with Nambawan Super, strikes a chord between presentable, confident and professional. The OPH Commercial Towers only add to 2019’s plethora of PNG’s built environment, serving the country’s major industries and providing the general public a number of probable causes to work, shop, socialize and relax.  All in all, this year was another challenging year for everyone here at Hausples and Market Meri. A new terrain comes with a new approach, likewise a new year breeds new challenges with new mindsets, and so was the case this year. But, we wouldn’t have reached that level of success without your support.Thanks to you, we have built a system of conformity with specific insights and unlimited comforts. The results of 2019 for Hausples sheds much light on our continuous ability to see new trends quickly, complete tasks with minimal oversight, and conclude several projects on time. Your support has also given us the ability to exceed expectations and to maintain our strong presence as PNG’s number one real estate portal, so far. We would also like to thank the following major clients and sponsors for this phenomenal year. A happy new year to:Pacific Palms PropertyBank South PacificNambawan Super LimitedEla MotorsTrans Pacific Assurance LimitedKina BankCentury 21REIAAirways ResidencesRhodes PNGHornibrook NGICRCECPNG Forest ProductsPost CourierFM100 As well as those who have made our progress in 2019 a success.That’s a wrap for 2019. But we can’t wait to share what next year has in store for property developers, agents, and investors like Y-O-U. Until then, keep smiling, keep living and subscribe to our monthly newsletters for the latest real estate happenings and insight.Don’t forget to take part in our survey and win yourself a smartphone worth a thousand kina.
Negative Equity And The Value Of Your Home
Negative Equity And The Value Of Your Home
June 14, 2022, 12:07 a.m.
News
Advice
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.