Is Hello Real Estate The Uber Of The Real Estate space in Australia?
Will the Australian real estate industry react as strongly to Hello Real Estate as the taxi industry did when Uber came to Australia? Time will tell.
What we know for sure is that investors are keen to capitalise on the lucrative residential real estate market valued by RP Data at $5.13 trillion and Hello have reinvented the traditional real estate model. To that end, MinRex, a speculative exploration company in gold and tin, will acquire 100 per cent of the issued capital of Hello for $6.75 million. It will also change its name to Hello Property Group Limited and be listed on the ASX. (AFR 23.11.15)
Hello Real Estate have created a unique model to assist buyers and sellers of Australian real estate. They are targeting people related or interested in real estate, but not working within it – so former mortgage brokers, financial advisers who are great communicators - to partner with Hello Real Estate and offer their all-inclusive packages to home owners keen to achieve a top price for their home sale without the traditional real estate hassles.
Rather than paying hefty commission fees to real estate agents, Hello Real Estate has thrown that traditional system on its head and offers a fixed fee and inclusive services model to the home owner. These services include valuations, internet uploading, conveyancing and settlement.
Hello Real Estate and Uber have a lot in common as they break new ground in a well-established industry. This innovative digitally focused real estate model is not dependant on a ‘boom’ economy as the fixed fee and the inclusive services model is transparent from day one. On a $1 Million home with a typical real estate agents commission of $24,890, the saving to the vendor would be as much as $14,900 (www.hello.com.au).
Will the Australian Real Estate profession see Hello Real Estate as the next Uber for digital real estate in Australia? Watch this space.