THE JOURNAL OF THE REAL ESTATE INSTITUTE OF VICTORIA
REIV.COM.AU
MARKET UPDATE The key influencers
THE ESTATE AGENT
Embracing disruption
AUGUST 2018 VOLUME 83 NO.2
The internet has changed the future
The Future of our State Three key numbers
Critical vote
All eyes will be on November’s State election
Cladding crisis
High-rise fires are a growing concern
Carbon Monoxide Testing Smarthouse is partnering with the REIV to help agencies and landlords meet the safety requirements for carbon monoxide testing. If Gas heaters and appliances go untested, carbon monoxide leaks can cause significant harm to residents, and in some cases, death. To protect both the tenant and the property, the REIV recommends testing of gas appliances every two years.
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Contents
12 ‘The Government is working hard … to ensure our unique, vibrant and efficient real estate market continues to thrive’ The Hon. Marlene Kairouz, Minister for Consumer Affairs
Feature story ALL EYES ON NOVEMBER Before Victorians head to the polls, both sides of politics outline their election promises and future vision for our State
Features
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The Future of our State Three numbers we need to know
Embracing disruption Past performance used to be a reliable indicator of future success, however the internet has changed all this
Mastering the art of auctions Auctioneering is more than just quick thinking and fast speaking
Combustible cladding crisis High-rise building fires are a growing concern, with several near-misses in Victoria alone
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Prevention is better than a cure Victoria’s Environment Protection Authority is shifting its focus to one of prevention rather than reaction
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Contents
5 President’s Report 7
CEO Report
9 Bulletin 18 Profile 20 Market Update 26 Profile 28 Training 30 Best Practice 33 Events Calendar
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34 Social Photos 36 Advertorial 37 Member News 38 Vale
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EA
Publisher REIV 335 Camberwell Rd, Camberwell, Victoria 3124 Editor Emma Burton eburton@reiv.com.au
Advertising Sarika Bhalla sbhalla@reiv.com.au 03 9205 6696
THE ESTATE AGENT
The Estate Agent is published by the Real Estate Institute of Victoria.
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The Estate Agent â?˜ August 2018
Connect with REIV on social media. Find us on: facebook.com/REIVictoria @REIVictoria
REIV Networking Group
The views and opinions expressed in articles and columns of The Estate Agent are those of the writers and do not necessarily represent those of the Real Estate Institute of Victoria
@REI_Victoria
President’s Report Richard Simpson President REIV
Property market may have cooled but its fundamentals are sound
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he property market has cooled somewhat from the heady levels of 2017, with large reductions in auction clearance rates and sales, but only a slight contraction in the median price. After nine consecutive quarters of rising medians, the decrease is perhaps not surprising. With its continued growth in both economy and population, I am confident that the fundamentals of the property market are sound. In the short term, it might be that vendors need to adjust their price expectations, because both the market signals and the media ‘experts’ are telling prospective buyers that prices won’t be on the rise again any time soon. Reduced activity is not the only challenge facing estate agents. As I mentioned in the last edition of EA, the industry is coming under increased scrutiny. The Victorian Government is continuing its reviews of real estate legislation and regulations. The REIV has been active in its advocacy to ensure that the proposed reforms are fair to all stakeholders. Changes proposed to the Residential Tenancies Act late last year were anything but fair. If implemented, these reforms will tip the scales very much in favour of tenants. The REIV has been on the front foot with regards to the reform package, which the Government dubbed ‘Rent Fair’. We have strongly promoted a petition drive to influence our politicians that ‘Rent Fair’ is indeed ‘UNFair’. At the time of writing, signatures from agents, property managers, landlords, tenants and others number close to 20,000. Shadow Minister for Consumer Affairs, Hon. Heidi Victoria MP, has indicated that she will table our petition in Parliament at the appropriate time. With just three sitting weeks left before the Parliament rises in preparation for the Victorian state election on 24 November, the
Government’s resolve over RTA reform will be tested. If indeed, the legislation is introduced, the REIV will step up the pressure on Legislative Council crossbenchers and the Opposition to ensure the Bill is amended to our satisfaction or else defeated.
The REIV has been active in its advocacy to ensure that the proposed reforms are fair to all stakeholders All estate agents will be aware of the recent concerns over the validity of sales authorities that became apparent after the County Court decision in August 2017. Since that ruling, the REIV advocated intensely for a legislative fix, and assurances were given late last year that retrospective legislation would be put in place to protect agents’ commissions.
The spotlight intensified in April 2018 when the Court of Appeal confirmed the previous County Court decision. Immediately following the appeal decision, the REIV stepped up its pressure on the Government to introduce immediate legislation to correct this administrative error by Consumer Affairs Victoria (CAV) that put agents’ livelihoods at risk. This involved intensive communications with the Premier’s office, the Minister for Consumer Affairs, the Director of CAV and the State Opposition. On 9 June, Consumer Affairs Minister, The Hon. Marlene Kairouz MP, publicly declared: “We’re fixing this problem, giving agents who acted in good faith reassurance their commissions will be protected by law.” In the final sitting week before the winter break, the Government introduced legislation to guarantee agents’ commissions. At the time of Continued on page 6
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President’s Report
Continued from page 5
writing, the Bill was still progressing through the Parliamentary process but is expected to pass through both houses of Parliament with bi-partisan support. The REIV will continue its vigilance regarding this and similar issues that arise from time to time. I urge all our members to ensure they are using the most recent authorities which now comply fully with the Estate Agents Act. Should you have any doubt, please contact the REIV. On November 24, Victorians will go to the polls to either re-elect the current Andrews’ Labor Government or vote for a change to Matthew Guy’s Liberals. Between now and then, we will be meeting with both sides to discuss not only their policies and promises but especially our members’ growing concerns over the high levels of taxation on property, specifically stamp duty and land tax. At a time of significant budget surpluses, it was disappointing that the
I urge all our members to ensure they are using the most recent authorities current Government in its most recent Budget failed to deliver any substantial property tax relief or social housing initiatives. Since coming to power, this Labor Government has introduced over 14 new property related taxes. Over the next three months, the REIV will be meeting with key Government Ministers and Shadow Ministers to outline our agenda and to continue to advocate strongly for reductions in and the removal of several property taxes. Since the last edition of EA, we have welcomed a new non-executive member to the REIV Board, Brian Ward AO. Brian is a seasoned professional well-versed in governance, legal and
commercial matters. Brian has served the Australian Sports Anti-Doping Authority Advisory Group as Chair, and the Australian Red Cross as National Vice Chair. His experience in ethics and regulation will assist us in our development and support of members at an important time for our industry.
Selling your rent roll? Talk to the experts! Why not take the time now to have a confidential chat about the real value of your rent roll. We can then start mutually planning your exit sales strategy. We have some genuine buyers ready right now to negotiate confidentially and discreetly.
BDH SOLUTIONS ROSS HEDDITCH
Ross Hedditch Telephone: 9380 5999 Mob: 0418 321 952 rhedditch@bdhsolutions.com.au bdhsolutions.com.au 6
The Estate Agent ❘ August 2018
REIV 1
CEO Report Gil King CEO REIV
Lead-up to state election a chance to reflect on impact of changes
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s we move towards the State Election on 24 November there is much on which to reflect. The past few years have seen many actual and proposed legislative and regulatory changes for the real estate industry and those employed therein. At first glance one might assume that the introduction of underquoting legislation in 2017 was the biggest change that we face. I do not think that we have yet seen the full impact of this legislation. There is little doubt that Consumer Affairs Victoria (CAV) will still focus its enforcement weight towards the application of the Australian Consumer Laws, something it has done for many years. What we might see, in the not too distant future, is a plethora of smaller prosecution actions by CAV for specific breaches of the new State legislation. Especially in cases where the broader offence of misleading or deceptive conduct under the Australian Consumer Law cannot readily be made out. I am cognisant of the fact that many of our members face the scrutiny of CAV officers quite regularly in relation to the underquoting laws. I would urge any Member who is given notice of an impending visit by CAV to their office in relation to underquoting enquiries to contact the REIV for advice and assistance. While we do not, and should not support any underquoting activities by agents, the REIV must be there to offer advice and assistance to our members before during and after the CAV process. In this edition of EA there is an open letter to our members from President, Richard Simpson regarding the REIV’s stance on underquoting – see page 15. This letter clearly outlines the Federal Court’s view on the significant damage, harm and inconvenience to prospective Continued on page 8
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CEO Report
Continued from page 7
residential buyers that underquoting can cause and its intention regarding financial civil penalties. 20 September is the last sitting day for the Victorian Parliament before the State Election and the ensuing nine weeks of caretaker mode. We will be watching with some interest the progress of any property-related legislation through the Lower and Upper Houses in the lead up to 20 September. One thing is certain and that is we must not allow legislation to be rushed through just because of the timing of Parliament and the State Election. Legislative change, if not well considered and properly debated, can cause significant disadvantage to those subject to the new laws. At this time every year we also consider a different and yet equally important set of elections; that being
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The Estate Agent ❘ August 2018
All too often the negative aspects of the industry grab the headlines. We should celebrate the overwhelmingly positive side of the real estate profession
the election of Directors to the REIV Board. Very soon we will be in a position to advise our membership of the outcome of this election process with two metropolitan and one regional Director seats being decided. Regardless of the outcome, I would like to acknowledge the remarkable work done by the REIV Board over the past 12 months and wish any outgoing or incoming Directors the very best for the future. It is not an
easy job, and many are unaware of the hours that are committed to supporting the REIV and its membership in forums that extend way beyond the boardroom. Our next edition will focus on the REIV Awards where winners and finalists will be recognised for their achievements. We are fortunate that we can acknowledge the excellence of our members because all too often the negative aspects of the industry grab the headlines. We should celebrate the overwhelmingly positive side of the real estate profession and take every opportunity to note that this is more representative of the profession than the few isolated less desirable matters that often are portrayed as the norm. @REIV_CEO
Bulletin
UPDATED ESTATE AGENTS REGULATIONS
Members are reminded to familiarise themselves with the recent updates to both the Estate Agents (General, Accounts & Audit) Regulations and the Estate Agents (Professional Conduct) Regulations announced by Consumer Affairs Victoria in May. Both regulations are now in effect. Any members with queries on these changes are encouraged to contact the REIV Information Officers on 9205 6666.
MORE STARS BRING A BETTER PRICE
The Victorian Government’s Scorecard star rating program is making it easier for home sellers to advertise their home’s energy efficiency credentials. Thanks to the far-reaching campaign, more and more households are hearing about how a Scorecard rating can give them a significant boost in their selling price if their home uses less energy. Whether clients are looking to buy or sell, you can expect them to ask you about the Scorecard star rating program over the coming months. Find out more by visiting www.victorianenergysaver.vic.gov.au/scorecard
SAVE THE DATE
$25 MILLION BOOST FOR SAFER BUILDINGS
The REIV Annual General Meeting will be held on Thursday, 22 November, from 4pm to 5pm. Formal notification of arrangements for the AGM, including the agenda, will be issued in late October.
PLAY A LEADING ROLE
Being part of a Chapter or Division Committee provides you with the opportunity to broaden your industry knowledge, work closely with your peers and have a hands-on role in helping address issues impacting your local area or specialist field. Members of Division Committees are elected, every two years, by members within the respective Division. Electronic elections will be held for each Division Committee where
This year’s State Budget saw the announcement of a $25 million boost for safety inspections on high-rise buildings to help protect Victorians from combustible cladding fires. Victorian Planning Minister Richard Wynne says: “There’s nothing more important than keeping people safe – that’s why we’re inspecting more
high-rise buildings for dangerous and flammable materials, and cracking down on dodgy builders who flout the rules.” The funding boost comes in addition to the $590,000 to fund new exterior design standards, ensuring new apartments are built with the highest quality of materials and best standards of sustainability.
the number of nominations exceed the number of positions available. Members eligible to vote in these elections will receive nomination information via email in early October. Details will also be available from reiv.com.au thereafter. Expressions of interest for REIV Chapter Committees, appointed by the Board, will be sought in October. Elected Division and Chapter Committee members will take up their positions on 1 January 2019. The Estate Agent ❘ August 2018
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Bulletin
COULD YOU LEAD THE NEXT GENERATION OF AGENTS? REIV is seeking expressions of interest from Trainers and Assessors to join the contract team for delivery and assessment of the CPP40307 Certificate IV in Property Services (Real Estate) course. REIV is seeking VET professionals with real estate experience who are passionate about the real estate industry and being part of the continuous improvement of standards. This role is ideal for someone who wants to give back to the industry and inspire the next generation of agents. The REIV is a Recognised Training Organisation (RTO), and as such, all trainers must adhere to a set of required standards and regulation, such as: Hold a TAE40110 Certificate IV in training and assessment Be a current licensed real estate agent Hold the CPP40307 Certificate IV in Property Services (Real Estate) qualification, or be able to provide evidence of how you meet the vocational competence requirements Experience as a licensed real estate agent for at least three years Be a member of the REIV (or willing to become a member) Police check (or willing to obtain) Professional and public liability insurance (or willing to obtain) Workcover insurance or certificate of exemption
REIV CHARITABLE FOUNDATION APPOINTS INDEPENDENT DIRECTORS The REIV Charitable Foundation has recently appointed two new Independent Directors, Kate Hamond and Pamela Jenkins. Kate joins the Foundation with extensive experience in the education, community and business sector, having performed a range of management and leadership roles. Recipient of various awards and qualifications, Pamela Jenkins is currently a Reserve Judge at the County Court and Senior Sessional Member of the Victorian Civil and Administrative Tribunal. 10
The Estate Agent ❘ August 2018
Applicants are being sought with the following skill areas/specialisations, with urgency in the Property Management area: Auctioneering Residential sales Property management Buyers agents Owners corporation Business broking Commercial and industrial To express interest, find out more about the job role and responsibilities and its benefits to you, please contact the Learning & Development Operation Manager at training@reiv.com.au
REIV DIRECTOR ELECTIONS
Regional Zone: Michael Blake has been declared elected as an REIV Director and will commence his second term of office on 1 October, 2018. Metropolitan Zone – Voting 15-29 August, 2018: There are more nominations than available positions for the Metropolitan Zone Directors and an election will be held. The REIV has engaged Big Pulse – a specialist in online elections – to manage
AWARD MODERNISATION
The Fair Work Commission (FWC) has amended the Real Estate Industry Award 2010 (Award) with changes taking effect from the first pay period on or after 2 April 2018. Key changes include: • Revised classification structure and increases to the minimum wage rates; • Introduction of a motorcycle/scooter allowance rate and associated eligibility recording requirements; • Alterations to mobile phone allowance; and
NEW REIV CALCULATORS
The REIV website now offers simple calculators to help determine property selling and buying costs and convert measurement units from imperial to metric system. The REIV mobile app is being discontinued to focus on providing additional features and enhancements on the REIV website instead. As a mobile responsive site, all website features work effectively on smart devices, giving members more comprehensive access to resources. Members are urged to ensure they regularly review and update their membership records.
the election. Further details will be provided through ENews and Metropolitan Zone members eligible to vote at 12 June, 2018, will be invited to do so by Big Pulse. Voting will open on 15 August and closing at 5pm AEST on 29 August. The REIV Returning Officer will be provided with the aggregated results once voting has closed and members will be informed of the outcome in mid-September.
• Amendments to commission-only employment arrangements. Further, the FWC has also increased the Award rates of pay by 3.5% effective from 1 July 2018. Employers should closely review the updated Award to ensure their arrangements, including in regard to commission-only arrangements, are consistent with the Award. For further details, please contact realestatehr, a joint venture between REIV and SIAG, on 03 9644 1400 or visit realestatehr.com.au
Bulletin
SMOKE ALARM REMINDER
Property Managers are urged to routinely check the age of smoke alarms within their properties, as the Metropolitan Fire Brigade (MFB) reminds agents that residential smoke alarms only have a lifespan of 10 years. Failure rates for smoke alarms increase with age,
regardless of power source or type of alarm. When replacing smoke alarms, MFB and CFA recommend photoelectric smoke alarms with a 10-year lithium battery in a tamper proof chamber. For further information visit www.mfb.vic.gov.au/ Community/Home-Safety/SmokeAlarms
PENALTY & FEE UNITS 2018/19 FINANCIAL YEAR
The value of a penalty unit for the current financial year has increased to $161.19 and the value of a fee unit to $14.45. These increases are effective from July 1.
REGIONAL VICTORIA COMMITMENT As part of REIV’s ongoing training commitment to regional members, a range of courses have been scheduled in regional hubs throughout the state. Regional courses will cover Residential Property Sales in addition to both Residential and Commercial Property Management. Conducted by leading trainers and experts
in their field, the courses ensure members continue to develop professional knowledge and skills, while also providing great networking opportunities. Book your place today at reiv.com.au/training. To find out more, please contact the REIV Learning & Development Team at training@reiv.com.au or call 03 9205 6666.
Ballarat 24th August
9am – 5pm
7th September 9am – 12.30pm
Commercial Property ManagementLease Administration Essential Safety Measures for Commercial Property Managers
7th September 1.30pm – 5pm The Agent’s Role in Commercial Lease Documentation- Identifying Common Errors & Mistakes Residential Property Sales Documentation; Getting it Right
Mildura cont. 5th December 9am – 12.30pm
Residential Property Management – Tips & Insights
17th October
9am – 12.30pm
17th October
1.30pm – 5pm Residential Property Management – Tips & Insights
Traralgon
9am – 5pm
Commercial Property ManagementLease Administration
28th November 9am – 1.30pm Residential Property Sales Documentation; Getting it Right
Residential Property Sales Documentation; Getting it Right
28th November 1.30pm – 5pm Residential Property Management – Tips & Insights
Bendigo 19th October
14th November 9am – 12.30pm
14th November 1.30pm – 5pm Residential Property Management – Tips & Insights
16th November 9am – 5pm
Commercial Property Management Fundamentals
Wangaratta 27th September
9am – 5pm
Commercial Property Management Fundamentals
23rd November 1.30pm – 5pm Residential Property Sales Documentation; Getting it Right
24th October
9am – 12.30pm
Residential Property Sales Documentation; Getting it Right
23rd November 9am – 5pm
24th October
1.30pm – 5pm Residential Property Management – Tips & Insights
Mildura
Managing Risk in Estate Agency Practice
The Estate Agent ❘ August 2018
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Feature
All eyes on November’s State election Before Victorians head to the polls, both sides of politics outline their election promises and future vision for our State The Victorian property industry is arguably the State’s most important industry and certainly one of the biggest. Its strong contribution to the Victorian economy, through flowon activity, has increased in recent years and has added to the nation’s
record period of economic growth. All eyes will be on 24 November, as Victorians head to the polls for this year’s State election. Behind the scenes, the REIV will continue to advocate strongly on behalf of our members, meeting with both sides of
Government to discuss their policies. To ensure Victoria remains a vibrant State and is equipped to cope with continued growth, the focus needs to be on planning, infrastructure and tax reform, specifically stamp duty and land tax.
FROM THE HON. MARLENE KAIROUZ MP MINISTER FOR CONSUMER AFFAIRS, GAMING AND LIQUOR REGULATION Whether it be finding their first residential tenancy, letting their investment property, or buying and selling their first home, Victorians trust the real estate industry to make property transactions smooth and safe. With Victoria’s population growing at more than 100,000 people a year the demand for expert real estate services has never been higher. The Andrews’ Labor Government acknowledges the key role of the Real Estate Institute of Victoria in delivering professional development programs that ensure agents can continue to meet this demand with quality service. We have been pleased to provide more than $600,000 to support this training, including a strong focus on property management. With trust comes responsibility. The vast majority of agents take the trust in which they are held by the community very seriously. Like you, the Labor Government is committed to preventing rogue agents tarnishing the real estate industry and undermining the vital role you play in communities across Victoria. The Government acted quickly to freeze 12
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the accounts of JNT Law Investments Pty Ltd when alleged trust fund defalcations of more than $2 million were detected in 2016, and to take action against the agents involved. We have also worked with the REIV to develop and introduce underquoting laws in April 2017. The new laws complement misleading and deceptive conduct provisions of the Australian Consumer Law and, together with a number of successful court actions
‘The Government is working hard … to ensure our unique, vibrant and efficient real estate market continues to thrive’ – Hon. Marlene Kairouz MP ensure Victorians can continue to confidently participate in the property market. The Government is working hard to modernise Victoria’s consumer property legislation to ensure our unique, vibrant and efficient real estate market continues to thrive. Between 2015 and 2017, the Consumer Property Law Review examined four key Acts that affect the way Victorians buy, sell and manage their property: the Sale of Land
Act 1962, Estate Agents Act 1980, Conveyancers Act 2006 and Owners Corporations Act 2006. The Review provided industry and consumers with a great opportunity to take part in updating and shaping the laws that affect what will be the most significant lifetime transaction for many Victorians. The REIV’s feedback to the Review was substantial, and included support for certain options put forward for amending the Estate Agents Act 1980, including: • introducing new licence categories for estate agents (with varying training and work experience standards) and increasing training standards for agents’ representatives • improving ongoing education and training across the sector to ensure agents remain up-to-date with current practices, and • strengthening licence ineligibility and disqualification criteria This input reflects the REIV’s commitment to the development of the broader real estate industry, and to ensuring that the legislative framework for estate agents meets the expectations of today’s market and beyond. I look forward to sharing more information with you when we have decided a final set of reforms.
Feature
A central role of estate agents is to hold trust monies on behalf of those engaged in property transactions. The interest from these monies makes a significant contribution to the Victorian Property Fund (VPF), which has a number of important functions including contributing to new community housing. The Victorian Government has provided more than $69 million in grants from the VPF for much needed public and community housing projects, helping put a roof over the head of some of our most vulnerable and at-risk Victorians. Earlier this year I was proud to be able to officially open 20 affordable units in Newport for women and children experiencing family violence and housing difficulties. This project, and many other impactful developments like it, would not have been possible without these funds. The Labor Government values the positive relationship we have developed with the REIV over the past four years. The REIV has been a strong advocate to Government for its members. Should I be honoured with the role of Consumer Affairs Minister in a reelected Andrews’ Labor Government, I look forward continuing this productive relationship with the REIV. The Hon. Marlene Kairouz MP Minister for Consumer Affairs, Gaming and Liquor Regulation
FROM HON. HEIDI VICTORIA MP SHADOW MINISTER FOR CONSUMER AFFAIRS Fairness can often be a subjective term. Judging the fairness of any given situation usually depends on which side of an argument or decision one sits. In order to provide balanced outcomes, it’s incumbent upon all of us, no matter what industry we are in, to consult widely before making substantial changes that will undoubtedly affect lives. As a member of the Liberal National Coalition, I believe Victorians – as property owners, tenants, businesses, industry stakeholders and consumers alike – deserve a government that takes their interests, assets and welfare seriously. We believe the current government is inadequate on the most basic of fronts, with many of their legislative and regulatory changes failing the fairness test. The Andrews’ Government has dragged its feet on a multitude of reviews, proposed legislation and corrections required, due to its own mistakes, all to the detriment of many Victorians. I believe it is important to outline some of the main areas of my Consumer Affairs portfolio where
I believe this government has let Victorians down. REBATE STATEMENTS – REAL ESTATE AGENTS ACT 1980
Since becoming aware of the issue regarding the invalidity of rebate statements in contracts for the sale of land, I implored the Minister for Consumer Affairs to rectify the
‘Victorians deserve a government that takes their interests, assets and welfare seriously’ – Hon. Heidi Victoria MP issue expeditiously. It is unfortunate that immediate rectification was not initiated. The Department were made aware of this issue mid-last year, before any court proceedings being launched. However, because the Minister and her department did not act promptly, we have seen decisions such as that of Advisory Services Pty Ltd (trading as Ray White St Albans) v Augustin & Anor [2017] VCC 1195. There were also further proceedings affecting more real estate agents and their livelihoods. The delay in introducing a legislative fix was frankly unacceptable and the uncertainty and vulnerability it produced was preventable. I had to continue to advocate for those affected and push the Minister to make the necessary changes. I strongly voiced the Coalition’s concerns when the legislation was debated in parliament, to ensure all affected parties would be covered by the new amendments, so there are no unintended consequences. PROPOSED RENT FAIR LEGISLATION
The Liberal Nationals are committed to providing a fair rental system for the ever-increasing number of people renting in Victoria as well as for those who rent out their homes. Daniel Andrews announced major tenancy reforms during the Northcote bi-election late last year. However, we are still yet to see any legislation introduced to the Parliament. This has Continued on page 14
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Feature
method to help resolve disputes in this industry. THE COALITION’S PLAN
left the industry and investors nervous. And rightly so. In addition, we have not seen any improvement in housing affordability to enable renters, who want to enter the housing market to do so. Furthermore, we have seen a huge blowout in the rising cost of living in Victoria. Both of these issues are key concerns for the Liberal Nationals. Labor’s anticipated rent reforms are supposed to provide improved safety, security and privacy for tenants. However, the same cannot be said for property owners. Labor want to shift the balance of power to favour tenants, to the detriment of mum and dad investors who now face the possibility of having their assets devalued or perhaps compromised. Any legislation should be balanced fairly for all parties. The proposed legislation may create unintended consequences that will negatively impact rental availability and prices, thus creating an unfair and unaffordable rental market in Victoria. This would only add to the housing affordability issue and high cost of living all Victorians are already facing. The Coalition will be looking closely at any reforms proposals when they become available and we will consult widely with a cross-section of all those who will be affected. It should be noted also that the REIV has created an online petition Called “RentFair is Unfair” calling on the government to be responsible when proposing any changes, to ensure fairness and balance is achieved. We have been advised that there have been more than 20,000 signatures on this petition, proving the issue is a concern to many Victorians. 14
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SHORT-TERM RENTALS
The Andrews’ Government has stalled on debating proposed legislation relating to short-stay rentals, which Victorian’s have been waiting on since early 2016. The government’s proposed amendments were initially not clear enough and there was insufficient consultation undertaken. Following a parliamentary enquiry there were amendments, however
‘I commit to listening and investigating what changes can be pursued’ – Hon. Heidi Victoria MP Victorians are still concerned that the Government has failed to capture all short stay accommodation types under this legislation. In particular, these amendments will not cover separate dwellings such as houses, which have featured prominently in the news. These owners of such properties will be unprotected by the new laws, if passed, and we feel this is unfair and inadequate. The problems affecting these short stay accommodation types will persist. In addition, the Government has still yet to introduce any new legislation regarding the Consumer Property Law Review, which has been ongoing since 2016. This review includes a review of the Estate Agents Act 1980, Owners Corporations Act 2006, Conveyancers Act 2006 and the Sale of Land Act 1962. They have also forgotten retirees living in retirement housing and have failed to provide a low cost, binding
If the Coalition is elected to government in November, I will work hard to rectify the failings of the current government. We won’t shy away from hard work and commit to understanding the complex and difficult tasks we need to undertake. We have already started to announce some of the changes we intend to make within the industry. An Ombudsman for retirement housing will be established by a Liberal National Government to provide binding resolutions to eligible disputes in the sector. Older Victorians need to be able to resolve their disputes with providers quickly, fairly and costeffectively. We will fast-track the release of up to an additional 290,000 residential housing lots to help make houses more attainable We will mandate the completion of all metropolitan Precinct Structure Plans by 30 June 2020 and also establish a Population Decentralisation unit in the Victorian Planning Authority to bring forward land supply in regional areas as a matter of priority. We will introduce strict new planning rules within our first 100 days in office to ensure appropriate development in our suburbs. We will ensure that outstanding reviews and legislation are only progressed if they are fair and have undergone a full consultation process. There are other issues that REIV members have begun raising with me, and I commit to listening and investigating what changes can be pursued. I look forward to working with all REIV members to ensure your businesses are not bogged down by burdensome regulation in the future and that Victorians no matter on which side of an argument or decision they sit are satisfied that they have been listened to and dealt with fairly. The Hon. Heidi Victoria MP Shadow Minister for Consumer Affairs
Open Letter
Dear Member, Underquoting and actions taken by Consumer Affairs Victoria (CAV) in the Federal Court have been the focus of substantial media coverage in recent months. The Real Estate Institute of Victoria (REIV) does not support the practice of underquoting. The new laws, introduced in May 2017, legislate a number of agent requirements designed to reduce underquoting in the Victorian auction market. While CAV may initiate proceedings against agents under these new laws, it is likely that the majority of future prosecutions are still likely to be for breaches of the Australian Consumer Law. It has been disappointing to hear a number of commentators trying to justify underquoting, citing the principle that the agents’ primary responsibility is to achieve the best outcome for their client, the vendor. This is an irresponsible viewpoint that does nothing to raise the standards – or respect – of our profession. It is also unacceptable that the REIV continues to receive reports of examples of underquoting by agents, despite the underquoting legislation having passed its first anniversary. It is only a matter of time before those agents who continue to ignore the laws will be held accountable. All agents should be aware that the Federal Court views underquoting as a deceptive and misleading practice, causing significant damage, harm and inconvenience to prospective residential buyers. The Federal Court is on record stating that it considers some consumers who seek to buy an underquoted property will be inconvenienced, disappointed or deceived by the act of underquoting. There is no justification or excuse for underquoting. Through reliance on an agent’s false representations some prospective residential buyers are likely: • to have their hopes of purchasing a specific home unrealistically raised; • to have gone to the trouble of seeking and obtaining mortgage finance; • to have gone to the trouble of seeking and obtaining a property inspection; • to have attended a number of auctions at which they were unsuccessful and had no prospect of being successful; • to have wasted time and effort in pursuing the purchase of a property that they were never able to afford; • to have suffered a loss of confidence in the integrity of estate agents and the licensing scheme under which they operate; and • to have missed out on other opportunities to buy a property. These outcomes are viewed very seriously by the Federal Court and any financial penalty that is imposed is likely to be severe – in the range of $30,000 - $40,000 per offence. The Federal Court is on record making the following statements in terms of its intention regarding financial civil penalties. It said:
The central purpose of a civil pecuniary penalty is deterrence, both specific to the contravener and in general. The principal, and I think probably the only, object of the penalties imposed … is to attempt to put a price on contravention that is sufficiently high to deter repetition by the contravener and by others who might be tempted to contravene the Act. The Court should not leave room for any impression of weakness in its resolve to impose penalties sufficient to ensure the deterrence, not only of the parties actually before it, but also of others who might be tempted to think that contravention would pay, and detection lead merely to a compliance program for the future. The REIV continues to work with CAV to provide greater guidance to our members on how to comply with the new price quoting obligations. More underquoting information sessions will be held this year, in conjunction with CAV, to better inform our members. The REIV Board is also currently reviewing the processes for dealing with members who fail to meet the standards required of membership of our Institute. A consistent approach to this difficult issue is essential. Now, more than ever, REIV membership is vital as we embark on initiatives to better inform our members of their rights and obligations in relation to legislative compliance. Multiple changes to property legislation are underway or being considered by the current government and the REIV is working closely with the Minister for Consumer Affairs’ office to ensure the best outcome for our members and the real estate profession.
Richard Simpson REIV President
The Estate Agent ❘ August 2018
15
Commercial
The future of our State – 3 numbers we need to know An ageing population presents both challenges and opportunities across Victoria
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efore we look to the changing face of our state and indeed our cities, we need to first understand what’s coming. According to Tony Crabb – National Director, Research at Cushman & Wakefield – “there are only three numbers we need to know: $217 trillion, 35 per cent and 3.7 billion.” Alarmingly, government debt around the world has more than doubled in the past 60 years. Now reaching a historical high of $217 trillion. Although Australia’s debt levels are low compared with many other countries, they have grown more rapidly over the past decade. For this reason, Crabb predicts “interest rates are going to stay low, probably for the rest of your lives.” While this is great news for some, unfortunately for investors this results in low yields, forcing them to look at other options. “Thirty-five per cent is the number of
people in the world that are going to be aged over 65, all at the one time – a first in human history,” Crabb outlines. “For Australia, this means a jump from three million to nine million people aged over 65 in just seven years,” he adds. This raises the questions of tax shortfalls, health care expenditure, housing supply, employment rates and so on. To ensure we keep our taxes low the reliance on a structured immigration policy rises in importance. Location, location, location, a term we are all too familiar with, in this industry. Australia has an awesome opportunity to combat the ageing population dilemma, Crabb says. Half of the world’s population (3.7 billion) live in Asia – right on Australia’s door step. We need only 10 million and we are on our way to the required 35 million to help solve some of our emerging tax issues and
RATIO OF PENSIONERS TO WORKERS
Supplied by Tony Crabb, Cushman & Wakefield
16
The Estate Agent ❘ August 2018
support our ageing population. A sound immigration policy is achievable. Crabb urges policy makers to focus on skills shortages, noting that 700 skills
‘Interest rates are going to stay low, probably for the rest of your lives’ – Tony Crabb have already been identified as skills Australia’s workforce has shortages in. Change is inevitable. We can’t stop our ageing population; therefore, we need to increase Australia’s population. This increase sees Melbourne’s population increase to 10 million – and 30 million on the east coast of Australia. “That is the biggest property story in Australian history… and this is going to go on for decades,” Crabb explains. “What we do need is another 1.6 million dwellings. We need to build approximately 50,000 every year for the next 30 years. “And we have a choice as to what these dwellings will look like, where should they be, what kind of developments should they be. We have a choice as to what our city looks like,” he adds. Crabb encourages us, as a State, to work together and invest in ourselves – invest in infrastructure and our cities. “We can do this! Government can set this up. Our superannuation funds can set this up. We can have the capital, equity, not foreign debt but our own money and there is lots of it,” he says.
Commercial
THE CHANGING FACE OF MELBOURNE:
Population
Dwelling requirements
2.8m 1m 1,737 per week by 2046
627 per week by 2046
Crabb encourages planners, government and developers to get creative and talk to the end users. “Maybe the answer is to listen to the people that use property to inform what it is we should build,” he says. “We can’t have democracy, when it comes to the built environment. We need to deliver different built environments.” Held at Melbourne’s Sofitel Hotel, in front of a sell-out crowd, industry leaders Carolyn Viney, Executive General Manager at Vicinity Centres, Sam Tarascio, Managing Director of Salta Properties, and Vin Sammartino, Director of Hacer Group, joined Crabb to discuss the opportunities and challenges ahead for the industry. Despite government planning restrictions and debates on funding
Industry leaders (from left): Tony Crabb – National Director, Research at Cushman & Wakefield – speaks to a sell-out crowd at Melbourne’s Sofitel Hotel; Carolyn Viney (Vicinity Centres), Sam Tarascio (Salta Properties) and Vin Sammartino (Hacer Group).
Employment number
1.6m
51,600 per annum by 2046
Tourism
UP
44%
to 206 million visitor nights by 2027
and affordable housing, there are many opportunities for investment. For the medium to short term, key opportunities were based around Victoria’s worldrenown universities and their ability to attract talented people. It is their
‘Planning isn’t a democratic activity … too many decisions are based on emotions’ – Sam Tarascio expectations which shape our future, Crabb said. They expect to work, live and play within a 30-minute radius. The role of infrastructure is vital to providing connectivity and attracting private investment. If we continue to build infrastructure around our State’s assets, the rest will follow. The recent
Melbourne Airport rail announcement, as an example, breathes fresh air into areas such as Sunshine and presents various investment opportunities. It is no secret the number of dwellings in Victoria needs to increase to cater for future demand. Mixed use hubs are the key. Replicate centres like Melbourne’s CBD throughout the State in areas such as Dandenong, Ringwood, Bendigo and Ballarat. Allow end users to choose from a range of dwelling types, entertainment, retail options while living close to work. The success of these development types is evident in Chadstone, Victoria Gardens and proposed new investment into The Glen and Burwood’s Brickworks Shopping Centre. Placing pressure on the planning portfolio to become more reactive and encourage growth across Victoria, the panellists echoed the industry concerns of red tape. “Planning isn’t a democratic activity … too many decisions are based on emotions,” Tarascio says. The Estate Agent ❘ August 2018
17
Profile
Images courtesy of Tim Collins Media
Out and about: Rhys and his dog enjoy the wide-open spaces and fresh air of the Macedon Ranges, which he calls home.
Devoted high-achiever getting great results for his clients Rhys Nuttall’s natural flair and tenacity led him to a directorship role by the age of 30
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ike many young agents, Rhys Nuttall completed an agents’ rep course and at the age of 20, a Northcote agency gave him his first opportunity. “I was at that office for six months before moving to Fletchers Real Estate. This led me to work on some of the best eastern suburbs properties on offer and gain my initial experience and a solid grounding in the industry,’ Rhys explains. Real estate flows through Rhys’s veins, with both his grandfathers lifelong stock and station agents in Bendigo. While his father moved away from the family business, he still held 18
The Estate Agent ❘ August 2018
a passion for buying and selling real estate – one which was passed onto Rhys. “The industry is amazing, we provide a service for people who are looking for a home, a place where they truly can find peace, quality of life and enjoyment. What other industry can provide a service that leads to so many lifelong memories?’ Rhys says. Rhys moved on to a renowned
‘What other industry can provide a service that leads to so many lifelong memories?’
Melbourne-based, rural and lifestyle marketing agency, where he quickly became one of the directors. It was here where Rhys carved out his own identity across the state. In both 2011 and 2012, Rhys produced campaigns that won the prestigious REIV award for Excellence in Rural/Lifestyle Marketing. Rhys says these awards as some of his career highlights, but more personally, his marriage and the birth of his three sons will always be his greatest accomplishments. Today Rhys is a director, auctioneer and area specialist at RT Edgar Macedon Ranges, where he lives with his wife Libby and their boys Maxwell, Lawson and latest arrival, the gorgeous Elliott. “The Macedon Ranges is a diverse and beautiful place that will continue to experience growth,” he says.
Profile
He is meticulous in his attention to detail; re-shooting photographs to capture a better light, and leaving no stone unturned in his search for both buyers and quality properties. Within the close-knit community, Rhys is known for his rapport with clients, who appreciate his honesty, knowledge and timely delivery of information. As an auctioneer, Rhys thrills at being caught in the buzz of happy beginnings for both parties. He says a solid understanding of the market, mutual trust and the ability to communicate effectively during negotiations are all significant factors in achieving great results on auction day. When asked about changes he’s seen within the industry, Rhys is quick to note the evolution of the agent and agencies and the rise of social media.
Family man: Rhys with his wife Libby and their three boys, Maxwell, Lawson and Elliott.
“Agents are now working in teams with specialist roles within those teams. We are providing a better service as a result,” he says. Moving forward Rhys encourages the continued development of the industry.
‘If you have the hunger, you can achieve anything to what you aspire.’
“I would also like to see our industry become more professional, perhaps even a tertiary qualification as entry.” For those starting out in the industry, his emphasis is on persistence. “For some people success comes quickly, for others it comes in good time. We all face challenges in life no matter who we are and where we have come from. If you have the hunger, you can achieve anything to what you aspire.”
The Estate Agent ❘ August 2018
19
Market Update
Market Outlook The key influencers on property prices have been government focus on housing affordability and a tightening of the credit market
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he Victorian property market remains one of the most vibrant and healthy markets in the country, despite recent easing of the Melbourne house median. Although making firm price predictions is a guessing game given the complexity of the residential property market, we expect that 2018 may show a slight easing in the market indicative of a correction, rather than any substantial fall in property prices. The key influencers on property prices have been the government’s focus on housing affordability and a tightening of the credit market. Last year was a banner year in terms of housing policy put forward by the Victorian state government. Efforts to make housing more affordable and accessible to first home buyers, like the changes to stamp duty, started to show results soon after their introduction in July 2017. We saw increased uptake from first home buyers, whose share of the market increased from about 14% prior to July 2017 to about 19% today. 20
The Estate Agent ❘ August 2018
Increased supply to match Victoria’s population increase has and will have a stabilising effect on prices. The Regional Housing Supply and Demand in Australia Working Paper, by Associate Professor Ben Phillips of ANU, states that Melbourne City has one of the highest number of surplus dwellings, 5.3% of the stock. In addition, the creation of 17 new suburbs and the rezoning of 100,000 housing blocks in the north will give options for families and those looking for more spacious housing.
Investor demand has slowed as owner-occupier demand has increased.
RBA data shows annual increases in investor housing credit falling from 7.4 per cent in June 2017 to 2.0 per cent in May 2018. Lending standards are tighter than in recent years as APRA measures
ensure the build up of risk in household balance sheets is contained. Should house prices fall rather than stabilise, borrowers with high LVRs could find themselves in financial stress and prompt a sell-off of rental properties, further exacerbating any fall in prices. Mortgage rates are also likely to rise as banks are hit with higher wholesale funding costs from increasing rates overseas. Although the auction market has cooled in recent months, with clearance rates down to 60-64 per cent from mid to high 70 per cent in 2017 and fewer auctions being held, sales in the outer Melbourne Metro and regional Victoria are still on the rise. Nineteen of the top 20 suburbs for highest annual growth are in outer Melbourne, with growth ranging from 16.8 per cent to 25.6 per cent. Assuming Victorian population growth and general economic conditions remain stable, property prices should not see a significant decline over 2018.
Market Update
MelboUrne ProPertY PriceS
House: $840,000 (QoQ
0.6%,
YoY
7.5%)
Unit:
0.5%,
YoY
4.2%)
$604,000 (QoQ
Melbourne prices showing signs of slow-down in 2018, though strong annual growth still evident. Slight easing in the market expected in 2018 though no evidence to expect a more substantial fall in prices.
Middle HoUSe: $974,500 QoQ 5.4% YoY 7.0% Unit: $656,500 QoQ 1.8% YoY 3.2%
oUter HoUSe: $681,000 QoQ 0.5% YoY 10.7%
inner
Unit: $523,500 QoQ 1.6%, YoY 10.8%
HoUSe: $1,459,000 QoQ 4.9% YoY 4.2% Unit: $605,000 QoQ 1.4% YoY 1.2%
reGionAl
HoUSe: $419,500 (QoQ
4.0%, YoY
9.3%)
Unit:
3.7%,
7.6%)
$304,500 (QoQ
YoY
Unlike Melbourne, the auction market is improving in regional Victoria. Auction sales are at the same level as in the June quarter last year though clearance rates have improved and are the highest in the state at 67%. Many commuter cities have shown very strong growth, with house prices in the city of Greater Geelong up over 11% for the year.
rentS
Metro HoUSe: $450 Metro Unit: $420 reGionAl HoUSe: $330 reGionAl Unit: $275 VAcAncY rAte, Vic: 1.8%
credit GrowtH, AUStrAliA
(YoY (YoY (YoY (YoY
$10) $10) $10) $28)
Annual change (%) >
8% 6% 4% 2% 0% May-18
Apr-18
Mar-18
Feb-18
Jan-18
Dec-17
Nov-17
Oct-17
Sep-17
Aug-17
Jul-17
Jun-17
May-17
Apr-17
Mar-17
Feb-17
Jan-17
Dec-16
Nov-16
Housing - investor
Oct-16
Sep-16
Aug-16
Jul-16
Jun-16
Source: reserve bank of Australia
10%
May-16
Annual increases in investor housing credit have fallen from 7.4 per cent in June 2017 to 2.0 per cent in May 2018, while owner-occupier credit growth has risen from 6.2% to 7.9% over the same period.
the last two years have seen a steep fall in vacancy rates, from 2.7% in Melbourne in June 2016 to 1.9% today. rents however have not risen as steeply as this would suggest. the current metro house rent of $450 is just $49 per week more than in June 2016, making it more closely aligned with the slow rise in wages in Victoria.
Housing - owner occupier
All data and insights for June quarter 2018, unless otherwise stated. For the latest update visit reiv.com.au/market-insights
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The Estate Agent â?˜ August 2018
18/07/2018 12:01 pm
21
Conference
Embracing disruption: Adaptability the key to success Once upon a time past performance was a reliable indicator of future success. However, the internet has changed all this
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he digital revolution and rate of technological advances is transforming the way agencies operate, engage with clients and prospect for new business. Advances in computing, connectivity and artificial intelligence also offer unprecedented possibilities for agents. Speaking at this year’s REIV Ignite Conference, Lonely Planet’s former Executive Director Gus Balbontin encouraged attendees to embrace digital innovation. “Whatever service or product you are offering today, don’t fall in love with it because what’s coming tomorrow is even better,” says Balbontin. The customers are changing too, with buyers and vendors more informed than ever before. While there is no magic formula or crystal ball, Balbontin believes adaptability is the key to ensuring agencies keep pace with technology. As individuals we can adapt quickly, but the challenge is ensuring our businesses are adaptable too. Adaptability has two distinct components: flexibility and versatility. While adaptability may not necessarily come easily to everyone, all agents can make the conscious decision to be
Advocate for adaptability: Lonely Planet’s former Executive Director Gus Balbontin.
flexible in their ideas and expectations. Over time, this shift in attitude will naturally lead to an adjustment to inevitable change. Businesses tend to find ways that work for them and use those methods over and over again. Repetition can build momentum and efficiencies, but it can also build resistance to change. Openness to change in business practices usually means the
Stand up and pay attention to newcomers to the market organisation will have the ability to move with the changing needs of customers and display the agility that is so necessary in business today. Regardless of business size or sector within the industry, agencies should reflect on market disruption in line with their own businesses. Stand up and pay attention to newcomers to the market (a disruption). Look at 22
The Estate Agent ❘ August 2018
what they are doing and how they are doing it. It can be easy to dismiss these intruders, but they can often develop superior products or better ways of doing things. Around 10 years ago, Airbnb took the travel accommodation industry by storm. Large hotel chains, particularly in the US, scoffed at the upstarts, but had failed to adapt to changing customer needs and desires. This new market segment allowed private homeowners to use a cloud-based platform to list and collect payments for their rooms and houses, with mobile apps and social integration evolving it into multibillion-dollar company. Airbnb grew in popularity and the quality of its offering increased, addressing the needs of higher-value customers. Airbnb adapted, leaving hotel chains with asset-heavy business models unable to compete. Use disruption to review simple yet powerful concepts of change, adaptability, transformation and
Conference
SOCIAL MEDIA USERS IN AUSTRALIA2
9 million 4 million 3 million
Social media expert: Stephen Scheeler, former Managing Director of Facebook (Australia & New Zealand).
innovation in your business. Whether delivering online services, recruiting new talent via LinkedIn or ditching document retention, you are already experiencing the upside of digital technology. Breakthroughs in technology have also made it possible to buy and sell in new ways, to increase automation, and to gather and analyse unprecedented amounts of data. Taking the use of digital technology one step further, Stephen Scheeler, former Managing Director of Facebook (Australia & New Zealand) highlighted the power of social media marketing at this year’s Ignite conference. In addition to disrupters, the digital era has changed the way agents market themselves and their properties. The traditional selling techniques of yesteryear are becoming less relevant, with various digital tools and customer analytics now at our fingertips. With leading social media networks claiming well over 100 million monthly active users¹, Scheeler encouraged attendees to focus
marketing efforts on digital tools that provide targeted and measurable data. Social platforms, website, email campaigns and other digital assets can
‘Generation Z are digital natives, so use them to your advantage’
– Stephen Scheeler
all tell a story about your customer. Insights gained from digital tools are invaluable and are often a missing ingredient to agencies’ marketing efforts. How did the buyers that registered interest find your listing? How did they get there? Did they search for it via Google or did they see the listing you shared on social media? Understanding the data allows you to develop more effective campaigns, realign sales messages and ensures you are present where you need to be. Take Facebook as an example – it has the ability to show users what is
WHEN WE SOCIALLY NETWORK3
71%
57%
47%
47%
39%
21%
18%
In the evening
First thing in the morning
Lunchtime
Breaks
Last thing before I go to bed
During work
Commuting
relevant to them and in turn provide valuable information to marketers on what a user did when they saw the ad. Whether your business goal is brand awareness, website traffic, lead generation or online conversations, Facebook and other social platforms can make a notable difference in reaching your goals when used properly. Whilst Scheeler agreed marketing agencies can assist agents in the social media arena, he encouraged us to learn the skills we need to move our business forward. Facebook and Google both offer a range of business tools to assist small businesses, offering advice on targeting, creative considerations, best practice, ad types and buying methods, to name a few. Save thousands of dollars by leveraging off employees, as there may be younger members of the team who can assist. “Generation Z are digital natives,” according to Scheeler, “so use them to your advantage.” The rate at which our industry is changing is rapidly increasing. Both vendors and buyers are demanding faster response times, more transparency, greater access, convenience and mobility. All due to digital technologies. According to both Scheeler and Balbontin, it will continue to change. Embrace technology, be warned, but most importantly, be ready to change. 1. Most popular social networks worldwide as of April 2018, ranked by number of active users (in millions). https://www.statista.com/statistics/272014/global-socialnetworks-ranked-by-number-of-users/ 2. Source: Stephen Scheeler 2018 REIV Ignite Conference presentation – March 2018 3. Source: Sensis Social Media Report for 2017
The Estate Agent ❘ August 2018
23
Auctioneering
Wielding the hammer: REIV 2018 Senior Auctioneer of the Year finalists.
Mastering the art of auctions Auctioneering is more than just quick thinking and fast speaking
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hile a flair for theatrics (or opera) and nerves of steel may help, a touch of humour, a friendly look and an impeccable ability to count are sure to impress. Held across two consecutive days, Victoria’s talented auctioneers showcased their ability, knowledge of best practice and legislation in this year’s REIV Senior Auctioneer of the Year competition. Held at the REIV in Camberwell, the scripted competition saw the 14-strong field subjected to initial
bidder queries and complicated bidding sequences throughout their auction calls. While the final honours were awarded to Luke Banitsiotis of Woodards Blackburn and Michael Wood from Marshall White & Co, the hotly contested 2018 competition showcased many talents. Three-time REIV Senior Auctioneer of the Year, Harry Li was the event’s MC while recognised auctioneers Adrian Butera, Peter Hawkins, Peter Kakos, Scott Patterson, Raoul Salter together with three-time Australasian auction
Congratulations to the 2018 REIV Senior Auctioneer of the Year finalists: L uke Banitsiotis, Woodards Blackburn A ndy Choi, Area Specialist M ichael Choi, Area Specialist S tephen Smith, Marshall White & Co P aul Tzamalis, The Auction Company, and M ichael Wood, Marshall White & Co 24
The Estate Agent ❘ August 2018
REIV 2018 NOVICE AUCTIONEER OF THE YEAR Heats 14th August Semi Final 21st August Grand Final 28th August
champion Mark Sumich, were this year’s judges. After this year’s competition, auctioneers were fortunate to participate in an interactive training session with Sumich, who shared tips and strategies learnt during his highly successful career. Both Banitsiotis and Wood will now go on to represent Victoria at the Australasian Auctioneering Championships in New Zealand between 14-16 October. The overall winner of the 2018 Senior Auctioneer of the Year will be announced at the REIV Awards for Excellence on Thursday 25 October at Crown. The 2018 crowned winner will also join the elite group of REIV Master Auctioneers. Visit reiv.com.au/auctioneering to find out more about showcasing your talents in one of the most prestigious Awards in the industry. REIV would like to extend a special thanks to 2018 Auction Partners Herald Sun and Leader Newspapers.
Industry News
The dilemma surrounding our combustible cladding crisis High-rise building fires are a growing concern, with several near-misses in Victoria alone
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hile some believe it’s a coincidence, industry experts warn we are in the midst of a combustible cladding crisis. Speaking at an REIV event, director of SKIP Consulting, fire safety engineer and building regulation consultant Stephen Kip believes there are two parts to the external cladding issue: combustibility and weatherproofing. While the various players continue to dispute who is to blame, the lack of understanding that surrounds the National Construction Code and the added complexity of State legislations, is alarming. “Anything any of us can do to get our politicians to think about the national interest ahead of the state interest I encourage you to do at every opportunity,” Kip urged. Part of the underlying issue is the variable nature of our Building Code. Not a single Australian standard is mandatory. There are deemed performance requirements which can vary in nature. However, as Kip explained, there aren’t deemed to satisfy provisions for every performance requirement. One omission is that for external weatherproofing. While the mould problem may have started first, it doesn’t have the same impact as that of a fire – unless you suffer immediate harm from exposure to fungal allergens, such as asthma or emphysema. If a project simply isn’t clad with a traditional building material (i.e. bricks, timber, concrete, glass) then it doesn’t comply with the deemed to satisfy provisions and requires a performance solution.
Playing with fire: Industry experts warn we are in the midst of a combustible cladding crisis.
While our performance-based building code could be seen as negative and certainly pose several questions, one cannot dispute the fact it allows for innovation and creativity. Some of the great buildings throughout Australia could not have been built without this model, take Melbourne’s Etihad Stadium and Federation Square as examples. Kip believes our cladding crisis started
‘Anything any of us can do to get our politicians to think about the national interest ahead of the state interest I encourage you to do’ – Stephen Kip by “an over-obsession with energy efficiency that drove builders to look for products that are highly thermal efficient”. From here we witnessed a change in construction methods and a range of innovative products, such as polystyrene, being introduced. The dilemma for owners corporations, valuers, agents and the industry at large, is a non-compliant building, or the properties within it, can still be bought and sold. However, consider the surrounding
insurance issue i.e. areas around the impacted dwelling. Insurers, according to the law, are within their rights to refuse payouts outside the coverage of one apartment. They, in this instance, insure for the risk that the fire doesn’t unduly spread beyond the originating apartment. Should this become the case, owners corporations will have to sue the builder or consultant who allowed this to happen. Builders are currently recalling and fixing buildings at their own pace and price – for a problem they essentially bought from a product manufacturer. However, for this to occur, the builder needs to remain solvent. If they roll over, how many owners corporations can afford to undertake the required works? The balancing act for Government on this delicate issue, is subjective decision making. “Australia is leading the world, as it enters its 27th year of the longest period of economic growth in world history. Anything they do to the one part of the economy (the building industry) that generates this, could potentially drive Australia into a recession,” Kip cautioned. Kip concluded by warning attendees about the ongoing stigma and reputational damage that can be associated with non-compliant buildings. Since Stephen’s presentation, the Andrews Government has announced ‘changes to the Local Government Act that will create Cladding Rectification Agreements (CRA). CRAs will be similar to existing Environmental Upgrade Agreements, which enable owners to upgrade their homes to make them more environmentally friendly and pay it off via their council rates. The arrangement will be between owners (or owners corporations), lenders and local councils – providing long-term, low-interest loans to pay for building work to rectify cladding. REIV will provide further details regarding CRAs to members once received. The Estate Agent ❘ August 2018
25
Profile
Family agency celebrates 70-year anniversary Starting in real estate at just 15 Joe Cain could never have dreamt his career choice would pave the way for future generations.
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hree generations after Joe Cain commenced his career, the enthusiasm for real estate is one shared throughout the Cain family. Established back in 1948, JA Cain Real Estate is today celebrating 70 years in real estate – a true testament to Joe’s hard work and passion. The boutique agency, now managed by Joe’s son Bryan, still prides itself on Joe’s original values of integrity, professionalism and exceptional service. “One of the most important lessons my father taught me was to look after your vendor 100 per cent and the commission will look after itself, either now or later,” Bryan Cain recalls. Joe also imparted words of wisdom to his son that “integrity was everything, treat others well, meet 10 people belly to 26
The Estate Agent ❘ August 2018
belly every day and you’ll be a success.” Today JA Cain Real Estate is a dynamic team of industry professionals, specialising in the sale and management of both residential and commercial properties. They continue their heavy
‘One of the most important lessons my father taught me was to look after your vendor’ involvement and commitment to the local community, sponsoring several local churches, schools and sporting clubs. It is these relationships that have helped JA Cain Real Estate flourish into one of the most trusted and reliable agencies in Melbourne.
Spanning several decades in the industry, Bryan Cain has seen the Camberwell area evolve. “Now within the City of Boroondara, Camberwell was previously under the City of Camberwell who would only allow two or more bedroom flats and units to be built.” In the early 1990s Camberwell’s median house sale price was a mere $251,500 – a far cry from the $2.23 million investment seen today. In addition to the local area, the real estate industry as a whole has been and continues to transform. Reflecting on his time in the industry, Bryan recalls the introduction of the internet and the impact it’s had on marketing properties and the client education process. “Buyers can access large amounts of information regarding the home and recent sales, whereas pre-internet this was close to impossible.” “Auctions and open for inspections are now commonplace, whereas prior to the early 1970s, private sales and
Profile
Changing times: (left to right) Joe Cain opened JA Cain Real Estate in 1948 and his family is still driving the family business; Chris, Michelle, Brendan and Bryan Cain.
appointments in addition to land size were not as important,” he adds. As an industry we need to “ensure we continue to adapt to change, don’t be scared of it”, Bryan urges. “It’s never as bad as you first think.” JA Cain Real Estate is a threegenerational family business with the total number of Cains to work for the business over the 70 years nearing double digits. Bryan’s sons Brendan and Chris started with the agency at 18, while Bryan’s daughter Michelle initially studied visual merchandising before joining the team at 26.
‘Real estate is about knowledge of the product, and a commitment to hard work and persistence’
When passing the business down from generation to generation, Bryan notes it is important not to “take anything for granted. Like most things, all that glitters is not gold”. “Real estate is about knowledge of the product, and a commitment to hard work and persistence,” he says.
For young professionals joining the industry or taking over an agency, Bryan advises, “don’t look for instant success, just keep on doing the right things”. “Your profile is important, but it is your profit that will keep your doors open. You have to know the financial numbers of the business, concentrate on profit, save for a rainy day and invest in real estate. It will be hard work at first, success second.” “We as estate agents are dream givers, we solve people’s problems.” For Bryan and the team at JA Cain Real Estate, the best part of real estate is working with people. “When you see a person happy in the home you sold them, it’s a huge adrenalin kick,” Bryan says.
The Estate Agent ❘ August 2018
27
Training
Make your experience count The REIV understands that life in real estate is busy, and we would like you to benefit from your knowledge and experience. This is why we offer flexible learning
options so you can study in a way that suits your circumstances. Train with the REIV and complete the Certificate IV in Real Estate (Property Services) qualification through Recognition of Prior Learning.
AUGUST
OCTOBER
Business Broking
Agency & Risk
23rd - 24th
9am – 5pm
Business Broking Fundamentals
Commercial
8th
RPL is the formal acknowledgement of a person’s current skills and knowledge. For more information, contact the REIV Learning & Development team at training@reiv.com.au or on 03 9205 6666.
9am – 12.30pm Managing risk is estate agency practice
Commercial
15th
9am – 5pm
Commercial Property Management – Lease Administration
3rd
9am – 12.30pm Pricing Commercial Property for Sale or for Lease
24th
9am – 5pm
Commercial Property Management – Lease Administration (Ballarat)
3rd
1.30pm – 5pm
Commercial Property Management Options and Renewals of Leases
29th
9am – 12.30pm The agent’s role in commercial lease documentation – identifying common errors and mistakes
5th
9am – 5pm
Commercial Property Management Fundamentals (Dandenong)
29th
1.30pm – 5pm
17th
9am – 5pm
Commercial Property Sales Documentation and Processes
19th
9am – 5pm
Commercial Property Management – Lease Administration (Bendigo)
24th
9am – 12.30pm Essential safety measures for commercial property managers
24th
1.30pm – 5pm
The agent’s role in commercial lease documentation – identifying common errors and mistakes
31st
9am – 5pm
Commercial Property Management – Lease Administration
Commercial property management options and renewals of leases
Owners Corporation 27th
9am – 5pm
Introduction to Owners Corporation Management
Property Management 22nd
9am – 5pm
Challenging Situations in Property Management – Your Role & Responsibilities
Owners Corporation
SEPTEMBER
1st
Auction 21st
9am – 5pm
Introduction to Auctioneering
Commercial
9am – 5pm
Introduction to Owners Corporation Management
Property Management 9th
9am – 12.30pm Residential property management – Tips & Insights
17th
1.30pm – 5pm
Residential property management – Tips & Insights (Ballarat)
7th
9am – 12.30pm Essential safety measures for commercial property managers (Ballarat)
7th
1.30pm – 5pm
The agent’s role in commercial lease documentation – identifying common errors and mistakes (Ballarat)
24th
1.30pm – 5pm
Residential property management – Tips & Insights (Wangaratta)
12th
9am – 5pm
Commercial Property Sales Fundamentals
29th
9am – 5pm
Intermediate Residential Property Management
19th
9am – 5pm
Commercial Property Management Fundamentals
Property Sales
27th
9am – 5pm
Commercial Property Management Fundamentals (Wangaratta)
Owners Corporation 10th
9am – 5pm
Intermediate Owners Corporation Management
24th
9am – 5pm
Advanced Owners Corporation Management
17th
9am – 12.30pm Residential Property Sales Documentation; Getting it Right (Ballarat)
24th
9am – 12.30pm Residential Property Sales Documentation; Getting it Right (Wangaratta)
Property Management 3rd
9am – 5pm
Preparing for and presenting at VCAT
17th -19th
9am – 5pm
Job Ready – Residential property management
Property Sales 10- 12th
28
9am – 5pm
Job Ready – Residential property sales
The Estate Agent ❘ August 2018
reiv.com.au/learning
Training
Modernising real estate training
T
he real estate training package review is one of the biggest reforms to occur in the sector in the past 10 years and will significantly impact on the real estate profession nationally. The review compares the nationally recognised training that is delivered by registered training organisations with the needs of the profession. Emerging technologies and the convergence of industries have had a major impact on the profession over time. It is vital that our workforce is trained, re-trained and upskilled to current standards. In 2015, the Australian Industry and Skills Committee (AISC) was established by the Council of Australian Governments’ (COAG) Industry and Skills Council to give industry a formal role in approving national vocational education and training packages for implementation. Artibus was appointed by AISC to conduct the review and redesign of the training package for property services
A new training package for agents is awaiting official endorsement
and formed a Real Estate Industry Technical Advisory Group to engage with industry stakeholders, including the REIV. Over the past 12 months, REIV, along with other REIs, has been involved in stakeholder meetings with Artibus to help address aspects where
It is vital that our workforce is trained, re-trained and upskilled to current standards. training packages need to be updated, amended or in some cases completely overhauled. The package has now been fully developed and has entered the final consultation and validation phase prior to presentation to AISC for endorsement. Endorsement is expected to be in September 2018. The new package, when endorsed, will necessitate changes to training components of the licensing
requirements, i.e. qualifications, training and assessment of licensed agents, officers in effective control and estate agent representatives. As agents will be aware, the attainment of licensing is defined by the training package, qualifications and units of competence in each state and territory. Changes to licensing can only commence once the new package is endorsed. While some delays in the package’s endorsement may occur, there is a danger it may not be endorsed. Not updating the package may result in a loss of currency and an erosion of the knowledge and skills in the real estate industry. REIV will keep members updated on the progress of the review, endorsement status and any new real estate training to be implemented within Victoria. Further details regarding the proposed training package components can be viewed at www.artibus.com.au/ index.php/projects–property–services– real–estate/ The Estate Agent ❘ August 2018
29
Best Practice
A new way of doing things: Property Exchange Australia (PEXA) owns and operates electronic conveyancing in Australia.
Electronic property settlements: dealing with deposits Paper-based settlements will be phased out in 2019 By Peter Lowenstern, Secretary REIV Estate Agency Practice Committee
T
he growth of electronic property settlements is steadily increasing in Victoria and, on August 1, 2019, will replace paper-based settlements altogether. The settlement technology is owned and operated by Property Exchange Australia (PEXA). While Victoria’s estate agents are not part of the PEXA set-up, they need to be aware of its effect on the handling of deposits. When an agent receives a deposit, they hold it in their trust account for the vendor and purchaser, as a statutory stakeholder. It can only be dealt with as allowed by the Sale of Land Act (SLA). A deposit is portable. The SLA allows an agent to transfer it to the trust account of their vendor’s lawyer or conveyancer, who will also hold it as a stakeholder. With the growth of electronic 30
The Estate Agent ❘ August 2018
settlements, agents need to be conscious of their vital, yet unofficial, role in assisting vendors’ lawyers or conveyancers to complete online settlements within strict time limits.
On a sale, an agent needs to be proactive in finding out if their vendor’s settlement will take place using PEXA. PEXA payments are electronic. Deposits paid to agents have to get into the PEXA system, even though agents are not part of it. The SLA’s portability provisions are well suited to this purpose. On a sale, an agent needs to be proactive in finding out if their vendor’s settlement will take place using PEXA, if the vendor’s lawyer or
conveyancer has a trust account and, if so, the details. If PEXA is to be used, when the deposit is cleared it can be transferred to the vendor’s lawyer’s or conveyancer’s trust account straight away, less the agent’s account sales. Issues arise when a vendor’s lawyer or conveyancer doesn’t have a trust account. A deposit cannot be transferred to them or, for that matter, to the purchaser’s lawyer or conveyancer as a substitute, even if they have a trust account. In this scenario, it may be possible to transfer a deposit into the PEXA system utilising the SLA’s early release of deposit provisions. At the time a deposit is released, a vendor can instruct the agent accordingly to ensure the deposit ends up where required. If there’s no early release of a deposit, a vendor can give their agent instructions about the dispersal at the time of settlement. A vendor’s instructions are not an excuse for an agent to ignore the SLA and disperse the deposit beforehand. For instance, an agent cannot act on a request to pay a deposit into a nominated PEXA account, before the settlement. This remains the case, even though both the vendor’s and purchaser’s lawyers or conveyancers have agreed to it on their client’s behalves.
Best Practice
Incentive commissions: residential real estate’s problem child By Peter Lowenstern, Secretary REIV Estate Agency Practice Committee
T
he use of incentive commissions in the residential property market is a growing phenomenon. While appropriate in some circumstances, there’s anecdotal evidence of the abuse of incentive commissions. Their use in a residential sale leaves an agent particularly exposed to allegations of unscrupulous behaviour. An incentive commission is a bonus. A vendor agrees to pay their agent a commission, at an agreed percentage, on the sale price of their property up to a nominated figure. If the sale price exceeds the nominated figure, the vendor will then pay additional commission, at an agreed higher percentage, on the excess. Often engaged by a vendor who is financially unsophisticated, with a strong emotional attachment to their home, scant knowledge of the real estate market and who trusts their agent to act in their best interests, it’s a scenario where an agent needs to be scrupulously fair in their financial dealings with their vendor. Allegations of unscrupulous behaviour surface when an agent puts their self-interest ahead of their vendor’s interests. This behaviour is prohibited by the Estate Agents (Professional Conduct) Regulations which reflect agency law. There are numerous ways conflicts of interest can arise with incentive commissions, such as pressuring a vendor to agree to it; little or no explanation of the incentive, why it’s appropriate or how it will apply; and ‘tailoring’ appraisals or estimated selling prices to promote an incentive. Conflicts of interest are readily avoidable.
Claims: Allegations of unscrupulous behaviour surface when an agent puts their self-interest ahead of their vendor’s interests.
Always consider if an incentive commission is appropriate for a vendor and, also, for their sale. If it is, determine what is an appropriate incentive and the appropriate sale price at which it is to apply. In doing so, the
There are numerous ways for allegations of unscrupulous behaviour to arise with incentive commissions
characteristics of the property and the current state of the market must be considered. Think carefully about how the incentive will be presented. Ensure the vendor easily understands what has been put in front of them; when it will
apply and how much they will pay, with or without, the incentive being paid. A poor presentation is a sure-fire way to create disputes about payment. Be prepared to provide all relevant information when discussing the incentive. Remember, it’s entirely negotiable. A vendor may want to obtain advice before making any decision. If so, it should be encouraged. It’s a proven way of countering allegations of unscrupulous behaviour. If the incentive is agreed, it must appear in the sale authority in a format that complies with the Estate Agents Act. If an additional page is required to do so, attach it to the authority. Always keep in mind it’s good estate agency practice to have both the sale authority and any additional pages signed and dated at the same time. The Estate Agent ❘ August 2018
31
Commercial
Prevention is better than a cure Victoria’s Environment Protection Authority is shifting its focus to one of prevention rather than reaction
T
he theme for the recent REIV Commercial and Industrial Breakfast was “to tackle tomorrow’s challenges, we must first change our approach today”, as emphasised by the Environment Protection Authority’s (EPA) Manager of Stakeholder Solutions, Andrew Sargent. Victoria’s population growth has created some unique challenges – development of former industrial sites for housing, increased waste and encroachment on industry, to name a few. But with the Andrews’ Government committed to modernising the EPA with a new governance structure and vowing to overhaul the Environment Protection Act 1970, there is an opportunity to influence environmental and public health outcomes. Victorians will soon witness the largest reform in the EPA’s 47-year history with a shift from the traditional consequencebased regulator to a preventative-based approach.
“This shift will help to reduce negative effects from pollution and waste, and improve the overall condition of Victoria’s environment,” Sargent said. Speaking at the sold-out event, Sargent highlighted the close working relationship with the REIV and the shared beneficial outcomes for the sector. “Where the EPA can understand site practices, ensure information and guidance is written for the right audiences and in the right hands, harm will be prevented. Together we can avoid landlords being exposed to the risk of contamination, waste abandonment and property damage
Avoid landlords being exposed to the risk of contamination, waste abandonment and property damage
Piling up: Victoria’s rapidly growing population has led to a significant increase in waste.
32
The Estate Agent ❘ August 2018
Guest speaker: Andrew Sargent from the EPA.
from poor industry practice,” he said. In May this year, the State Government announced continued funding of approximately $9.1 million for the EPA’s Illegal Dumping Strikeforce program, in addition to numerous other preventative programs and initiatives. At a practical level, this investment enables the EPA to identify issues, provide support to landlords, agents and tenants, and stop issues at site level before they can cause harm. Over the next 12 to 18 months, a key focus for the EPA will be on the findings from the Resource Recovery Facilities Audit Taskforce, which identified 798 at risk sites across Victoria – 200 of those were deemed high or extreme. Sargent urged attendees to be aware of the risks associated with the resource recovery sector, where tenants are storing and managing waste on their properties. Waste poses fire, pollution and health risks, which we saw from the 2017 Coolaroo recycling facility fire. Waste can also dramatically decrease a property’s value. Agents requiring assistance in identifying site practices and ensuring operators are aware of their obligations are urged to contact the EPA or visit www.epa.vic.gov.au/business-andindustry.
Events
2018 Events Calendar AUGUST
OCTOBER
14th
Novice Auctioneers Competition – Heats
11th
Mornington Peninsula Division Breakfast
17th
Southern & Central Melbourne Division Meeting
12th
Geelong Division Meeting
21st
Novice Auctioneers Competition – Semi-final
14-16th
Australasian Auctioneering Championships (New Zealand)
24th
Young Agents Chapter – Future Leaders Forum
18th
Ballarat Division Meeting
28th
Novice Auctioneers Competition – Final
23rd
Bendigo Division Meeting
25th
Awards for Excellence
30th
Young Agents Chapter Career Night
SEPTEMBER 13th
Commercial & Industrial Marketing Awards
18th
Valuation Chapter Seminar
19th
Buyer’s Agent Chapter Breakfast
reiv.com.au/events
NOVEMBER 13th
Southern Division Meeting Working in Real Estate Seminar
15th
Commercial & Industrial Chapter Breakfast
22nd
Owner’s Corporation Chapter Seminar
Dates correct at time of printing. Topics and speakers are added online as information becomes available.
The Estate Agent ❘ August 2018
33
Social
Popular events offer great opportunities REIV events and competitions are more than a forum for information and insight, they create networking opportunities, showcase member expertise and more. Some of the major events since our last edition include the Ignite Conference, the Senior Auction Competition and, of course, the always popular annual Economic Forecast Lunch. Visit reiv.com.au/events for more details on upcoming events.
34
The Estate Agent â?˜ August 2018
Social
REIV WOULD LIKE TO THANK THE FOLLOWING PARTNERS FOR THEIR ONGOING SUPPORT Gold partners
Bronze partners
Event partners
The Estate Agent ❘ August 2018
35
Advertorial
Access unlisted property assets through your super REI Super uses a range of strategies to deliver stable and strong returns over the long term, including investing approximately 25 per cent of their property investments in unlisted property assets
Great value: Melbourne’s GPO, one of ISPT’s Core Fund assets, forms part of REI Super’s investment portfolio.
U
nlisted property investments can be a source of stability and longterm returns in superannuation funds’ investment portfolios. REI Super’s investments are through one of their long-standing investment managers, Industry Super Property Trust (ISPT). ISPT provides a select group of industry funds with access to highquality unlisted property assets for very low management fees. For REI Super members, this provides the benefit of high-quality investments at great value. It is important to remember there is limited access to these assets. Unlisted property assets such as ISPT’s Core Fund are generally not readily available to individual investors, and are not included in portfolios listed on the stock exchange. Below are three reasons why unlisted property investments are an excellent opportunity for long-term investment: 1. They provide a strong combination 36
The Estate Agent ❘ August 2018
Unlisted property investments are an excellent opportunity for long-term investment. of growth and income to members’ super portfolios; 2. They have fewer short-term ups and downs in their returns compared to many traditional investments, such as Australian and international shares; and 3. They add stability and diversification to members’ super portfolios. REI Super’s unlisted property investments are through ISPT’s Core Fund, which is a diverse portfolio of around 75 Australian commercial, industrial and retail properties of unmatched quality across capital cities and regional centres. Since it started in 1994 to March 31 this year, the ISPT Core Fund has
delivered an average net of fees annual return of 9.64% per annum. At March 31, 2018 the ISPT Core Fund was valued at a huge $12.6 billion. The portfolio includes many iconic properties – from Melbourne’s GPO and Casselden Place to Sydney’s Liberty Place in Castlereagh Street, as well as 4 National Circuit in Canberra.
INVESTMENT Your life your fund
REI Super Investment Guide 1 October 2017
If you’d like to find out more about REI Super’s investment mix, view our investment guide at www.reisuper.com. au/docs/defaultsource/super/reisuper-investmentguide.pdf
This information does not constitute financial product advice. REI Superannuation Fund Pty Ltd ABN 68 056 044 770 RSE L0000314 AFSL. 240569. REI Super ABN 76 641 658 449 and RSE R1000412
Member News
Member milestones More than 110 members have marked membership milestones in the past six months, demonstrating an ongoing commitment to their careers and the industry at large.
Sixty individuals are celebrating a decade of REIV membership and almost 35 members have achieved two decades with the Institute. A further seven agents have reached 30 years, while another five are all observing 40 years as members. Meanwhile, Di Baker, John Canavan, Alastair Chisholm, Peter Hayden and Adrian Jones have all been an REIV member for a remarkable half a century. REIV would also like to extend a welcome to the 175 new licenced and representative members joining the Institute since April 1.
Committed: Adrian Jones and Di Baker have been REIV members for 50 years.
50 YEARS
30 YEARS
Di Baker John Canavan Alastair Chisholm Peter Hayden Adrian Jones
40 YEARS
Patrick Considine Sam Emerson Douglas Knight Steven Lawson Mary O’Halloran Glenn Rogers Simon Walsh
Bruce Bonnett Steve Carter Rob Fletcher Jim Hay John Hopkins
20 years Craig Abbey Steven Abbott Sandy Bartfeld Eliza Billich-Wilson Darren Brimacombe Marcus Conabere Ahmed Dabab Luciano Deodato Marcus Falconer Adam Garvey Jackie Hall John Hanna Guy Hoevenaars Matt Hurlston Sally Jones Peter Kudelka Kaine Lanyon Garth Lisle Michael Ludski David Mao Kim McDonald
Norman Mermelstein Ray Nardella Con Nicolis Scott Patterson Michael Ray Lou Rendina Michael Stewart Michael Szulc Michael Teague Matthew Tucker Rob Vickers-Willis Gordon Whale
10 years Julian Badenach Judy Balloch Antony Belcher Andrew Bellino Helen Birchall Arthur Broad Nicci Brown Genevieve Cantwell Bruno Cascianelli Michael Choi Ben Cooper Jim Cross Sue Cugley Nicholas Cutinelli Anthony Cutinelli Chris Davis Virginia D’ore Susan Etches Carlo Gargano Greg Gibb Michael Gibson
Jenny Gillies Tim Gladman Reece Gosstray Stephen Gough Cameron Grant Anna Guy Sandy Hall Andrew Hamilton Nigel Harry John Heath Dean Hunt Nick Jones Dina Karas Matt Ketteringham Jason Kounnas Eric Lin Brian Liston David MacKinnon Eyal Malka Mark McClelland Paul Modica Sandi Mueller
Sam Murphy Jo Parker Daniel Roberts Paul Ross Rod Seach Joel Ser Geoffrey Stean Fiona Stean Kate Strickland Louie Tao Heath Templeton Brad Todd Steven Walsh Joel Williams Wendy Wright Leah Young John Yu
The Estate Agent ❘ August 2018
37
Vale
A legacy of integrity The Geelong real estate community is mourning the loss of a valued and respected member with the passing of John Richardson Known as a man of character, integrity and great humour, John Richardson was passionate about real estate. With the industry in his blood from a young age, John was the third-generation family member to lead HF Richardson – one of Victoria’s oldest privately owned real estate and livestock agencies, spanning more than 120 years.
John was committed to preserving traditional values of honesty, trust and integrity
John was committed to preserving traditional values of honesty, trust and integrity, which helped build HF Richardson’s success in building a long history of innovation in real estate and livestock sales. A true family man, John’s legacy lives on, passing the agency to his son Will, several years ago. Outside of real estate, John was a lifelong supporter of the Geelong College and founding member of the College Foundation. He was a dearly loved husband of Jean (dec.) and Sue, and a much-loved father of four children, three step-children and 26 grandchildren.
Avid sportsman mourned George Pugsley’s passion for the industry stemmed from the interaction it provided with people
GEORGE PUGSLEY April 21, 1934 – March 13, 2018 REIV 40-year member George Pugsley was known as a people person with a deep love of sport. Growing up in the inner suburbs of Melbourne, George spent several years in and around St Kilda and South Yarra overlooking the river. His love of the real estate industry stemmed from the interaction it provided with people, hence specialising in residential sales and property management. Following his time at WJ Harper in Essendon, George worked for Nathan
38
The Estate Agent ❘ August 2018
Beller and John Tallent at Beller and Tallent, pioneers of low and high-rise construction in the ’60s and ’70s. George then met Rod Ellerson through a lunch group in the 1980s, where they became partners with Paul and Roger Hearnden at Ellison Hearnden Pty Ltd. It is here that George together with Paul Hearnden, had one of the largest property management
Known as a people person with a passion for his local area. portfolios in the bayside area. Some years later, Ellison Hearnden joined forces with Wilson Pride. In the mid 1990s, later in his career, George bought AJ Barley Pty Ltd in Balaclava from Alan Barley himself. George with his love of people was
JOHN RICHARDSON April 24, 1930 – January 7, 2018 REIV 50-year member
also passionate about his local area, volunteering for many years, as the Secretary of the REIV’s Southern Branch. George assisted in organising social events and excelled at organising Branch meetings. George was an REIV member for more than 40 years. Outside of real estate, George was an avid all-round sportsman. From a young age he was known as a strong swimmer and surfer. He took up surf lifesaving before becoming a member of the 1st Bronze Medallion Squad in 1960 and later Club Captain of the Woolamai Beach Surf Life Saving Club. In addition to water-based sports, George enjoyed playing pennant squash for the Alma Club, and held memberships at both the Commonwealth Golf Club and Kooyong Tennis Club. George enjoyed life to the fullest. He loved meeting people at restaurants and negotiating business deals over a meal in one of St Kilda’s finest cafes and restaurants. George is survived by his wife and two children.
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