L. J. Hooker, the Australian real-estate company, which opened its outlet in Koramangala, Bangalore inaugurated its first franchise store with much fanfare is buying franchisee, franchisor and the customer into the idea of real estate franchising.

The company has an international network franchising model backed by a strong software support, internet-based operation and in no small measure values of L.J. Hooker Family’s support, closeness and networks as part of its franchise offer. L.J. Hooker franchise model’ incidentally, has won the company the prestigious `Australian and New Zealand Franchiser of the Year Award.'

L.J.Hooker Ltd. has achieved unqualified success in creating its international network that spreads across a host of countries in South-East Asia that includes Papua New Guinea, Indonesia, Hong Kong, New Zealand, and China. The Group has more than 730 franchises in Australia and Asia.

The company aims to offer a comprehensive, reliable and efficient service to the customer who wants to buy, sell and rent or needs to be advised on property matters. Apart from consultancy, its bouquet of services includes a rent-management program and a portfolio management scheme. It would periodically review the client’s real estate holdings and advise him/her on future real estate investment.

As part of its portfolio management activities, it will tell the client when and where to buy or sell. More specifically, a customer can expect to be entertained and guided through all phases associated with buying, selling, renting and leasing a property including financing, insurance, relocating and utility connections.

For instance, apart from finding a tenant for vacant commercial/residential space, it can undertake property management activities like collecting rent on behalf of a landlord, paying his taxes for him, renewing leases, carrying out maintenance work on the property among others. Highly networked individuals who are looking for a reliable and transparent experience will find immense value.

Usually 2% of the fixed monthly rent will be charged by way of rent. It will get commission from only one of the parties it represents. So, if a buyer lists with L.J. Hooker and a property is purchased, only the buyer pays the commission, not the seller.
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  • I just read the “Beware Jaaydaad.Com – A Real Estate Opportunity?” Story on

    https://www.indianrealestateforum.com/forum/other-forums/general-real-estate-discussion/848-beware-jaaydaad-com-%C2%96-a-real-estate-opportunity?t=698

    Of course LJ Hooker is nowhere like Jaydaad but the million dollar question still remains.

    CAN A FRANCHISE BASED MODEL WORK IN INDIA?

    Why would an already established real estate agent opt for a franchise opportunity?
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  • Given the present Indian real estate market scenario, a franchise model doesn’t look like a reality. I am a real estate agent and would like to know as to what would I get in terms of business if I take up a LJ Hooker franchise?

    We all understand that the basic requirement of a customer is to get the best deal. And that the customer is not concerned whether my office is really decked up or a simple office. If I have access to the inventory in my market of expertise, that is all I need to convert a customer.

    If we talk about some systems here, what sort of systems would make more customers visit my office, rather than any another office in my locality?

    Until then, I remain.
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  • Hello friends,

    I just signed up on this forum and it looks cool.

    We all know that Real Estate is not about selling BURGERS (MacDonald’s) or PIZZAS (PIZZA HUT). Neither it’s about selling furniture. (IKEA).

    We are talking about expensive commodities i.e. houses, buildings, offices, land etc.

    There is no doubt that LJ Hooker has been largely successful in the first world countries like Australia and New Zealand but we are referring to the mismanaged Indian real estate market here.

    After all, what is Hooker’s “Mantra” for India? Making money from a franchise network?

    Maybe a passerby - customer walks into a LJ Hooker office seeing their jazzy bold look and feel but many other real estate companies can also do that. Have a nice well decked up offices.

    At this stage, it’s difficult to predict what sort of arrangements they will bring into the jumbled yet dynamic Indian real estate industry of buyers and sellers.
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  • Hello Folks,

    I am referring to some excerpts from Warren McCarthy, (MD), L.J. Hooker Worldwide in the Indian PropertyPlus magazine.


    “Every time we enter a new market we make sure we study and understand the local policies and laws. With this knowledge we help our customers to prepare their documents and follow regulations mandated by the State and Central Governments."

    I happen to receive the LJ Hooker agent kit (SAFEKIT) for Indian Real Estate Agents and it is not at all customized as per Indian market. THE DVD presentation is also very Australian specific. The application form is the same as for an Australian Real Estate Agent.

    I DO NOT AGREE WITH THE MD’S STATEMENT THAT THEY HAVE DONE SOME HOMEWORK IN INDIA. OFCOURSE EVERYONE OF US KNOW THAT THE INDIAN REAL ESTATE MARKET IS BOOMING BUT HOW DOES THAT RELATE TO LJ HOOKER’S ENTRY INTO INDIA? JUST TO MAKE A MARK ON THE LARGE BURGEONING INDIAN MIDDLE CLASS POPULATION BY SHOWING THEM AN INTERNATIONAL REAL ESTATE BRAND?

    IT SEEMS MR. MCCARTHY IS UNAWARE OF THE “CHALLENGES” THAT THEY FACE IN INDIA, IF THEY CANNOT LIVE UPTO THEIR PROMISE WITH THE INDIAN REAL ESTATE AGENTS (FRANCHISEES) WHO PUT IN THEIR MONEY TO WORK UNDER THE ‘LJ HOOKER’ BRAND. AGENTS NEED TO SEE NEW BUSINESS AND MORE REVENUES WHEN THEY SIGNUP AS A FRANCHISEE. THEY NEED RETURNS ON THEIR INVESTMENT FOR THE RISK THAT THEY TAKE BY GIVING UP THEIR LITTLE BRAND IMAGE AND TAKING UP THE NEW INTERNATIONAL BRAND OF MR. HOOKER.
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  • I forgot to mention that when Mr. McCarthy was asked about their franchising fee, he claimed that LJ Hooker is not going to charge heavily.

    As per their application kit, they are asking real estate agents to shell our Rs. 5 Lacs ( USD 11,630) as a non-refundable franchisee fee, not to mention another 15 Lacs rupees (USD35,000) to set up a nice and swanky store as per their guidelines. (I doubt if 1% of agents would actually qualify after looking at their norms of minimum office set up requirements), unless they bend their rules. :p

    Why would an already established agent spend that kind of money to get started under their International brand.? I do not undermine that they have been able to sell their “MODEL” to over 700 offices worldwide, but when they refer to these offices as a “NETWORK”, how exactly are they functioning as a network?

    Each office is independent and not obligated to refer a customer lead to any other office. They have their own inventory and work with all sort of agents. (Century 21, Coldwell Banker etc.) So how does their No. 701 office in India get the support from the other 700 offices?

    Can Mr. Hooker answer that please.
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  • Come on guys. Give them a break. I guess one area where they can make a real difference is maintenance of properties. Owners of residences (who live in different city or country) have to usually rely on friends and neighbours to collect and dispatch the rent, pay taxes and attend to minor maintenance issues. So if they have a good set up and can further liaison with contractors, the maintenance services can be an asset for NRI’s like me. But I hope they don’t charge a fortune for such services.
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  • They seem to have updated their Indian specific site. You can read more on their Franchise Opportunities. More information is on:

    http://india.ljhooker.com/content/content_one.php?sect_id=149&cat_id=1

    ENJOY.
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  • L.J. Hooker has opened its second office in Bangalore

    L.J. Hooker has opened its second office in the city. Announcing this, Mr Ramneek Bakshi, Principal, said the fact that there was no branded player offering such services in the residential sector in India has given international companies such as L.J. Hooker a potential to grow here.

    There is a lot more structure in the way these organised players conduct their businesses, said Mr Chaitanya Manohar, Chief Operating Officer.

    The company aims to be a “one-stop shop” for clients, where its financial services wing would market financial products such’ as home loan and insurance products. “We have tied up with a couple of housing finance institutions and insurance companies already,” said Mr Bakshi, adding that talks are on with a few more.

    Apart from helping clients buy, sell and rent properties, L.J. Hooker would be engaged in property management services too, charging the clients one month’s rent for the services.


    Source: propertybytes
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