The magazine for real estate professionals who are the difference. The Journal of the Real Estate Institute of Victoria / AUG. 2019 / VOL. 83 NO. 5
OUR POLICY PRIORITIES Deepening our relationship with the State Government
MEMBERS IN SPOTLIGHT REIV Difference puts our agents ahead of the pack
BURNING QUESTIONS Experts shed light on common questions
THE DIFFERENCETM WILL HELP YOU MAKE 2019 A REAL ESTATE SUCCESS.
Features
PUBLISHER REIV 335 Camberwell Rd, Camberwell, Victoria 3124
06 CEO’s report
EDITOR Sarika Bhalla – sbhalla@reiv.com.au
We are now better positioned to engage in policy-setting discussion
PARTNERSHIPS & ADVERTISING Emma Burton – eburton@reiv.com.au Established in 1936, the Real Estate Institute of Victoria (REIV) is the peak representative body for real estate professionals in Victoria. Our Mission is “To enhance the professional excellence of our members to the benefit of the communities they work within, and to advocate and represent their interests”.
09
Connect with REIV on social media. Find us on:
Our policy priorities with the State Government
facebook.com/REIVictoria
The relationship between the State Government and the REIV continues to go from strength to strength
@REIVictoria REIV @REI_Victoria PRODUCTION Pagemasters
16 The REIV Difference puts Members ahead of pack Making it easier for clients to choose an agent they can trust
100.0% 90.0% 80.0% 70.0%
24
60.0% 50.0% 40.0% 30.0%
2 | THE ESTATE AGENT – AUGUST 2019
66.5%
65.6%
66.2%
67.0%
66.7%
66.3%
33.5%
34.4%
33.8%
33.0%
33.3%
33.7%
2011
2012
2013
2014
2015
2016
2017
64.6%
66.8% 33.2%
2010
35.4%
65.8%
2009
34.2%
35.8%
66.1% 33.9%
64.5% 35.5%
67.7% 32.3%
69.0% 31.0%
70.8%
DISCLAIMER 10.0% Unless otherwise specifically expressed, the views or 0.0% opinions appearing in The Estate Agent (EA) are those of the authors and do not represent the views of The Real Estate Institute of Victoria Ltd (REIV). The REIV gives no warranty about the accuracy, completeness, or reliability of the content of EA. The entire content is general information only. It is not advice or intended as advice and in no circumstances should be relied upon as such. Readers and third parties should verify the content and seek their own independent advice before making any decisions, financial or otherwise, based on what they have seen or read in 2004 EA. The REIV and 2006 EA do not2007 endorse 2008 or 2005 take any responsibility for material on third party websites referred to in the EA.
64.2%
20.0%
29.2%
WNHOUSES TO HOUSES FOR SALES, ACROSS
The Estate Agent is published by the Real Estate Institute of Victoria.
Is Melbourne becoming an apartment city? Houses with large front yards are being increasingly replaced by units, townhouses and apartments
2018
TM
Contents
Contents
22
Resolutions on improvements to the REIV Constitution will help shape our future
President’s report
Page 04
CEO’s report
Page 06
Policy & advocacy
Page 09
In the media
Page 11
Bulletin
Page 12
Best Practice Frequently asked questions Sunset clauses – what are the changes? Recording owners corporation correspondence
Page 14 Page 17 Page 19
Membership Members share the secrets to their success Shaping our future
Page 20 Page 22
Data insights
20
Is Melbourne becoming an apartment city?
Page 24
PropertyData – the complete picture
Page 26
Events
Members share the secrets to their success
Senior Auctioneers Competition Master Auctioneers Australasian Auctioneering Championships Upcoming events
Andy Reid, Kaan Ristic and Chris Manolopoulos reflect on the lessons they’ve learnt
Page 28 Page 29 Page 29 Page 31
Training Ready for the real estate challenge? Emerging opportunities
Page 32 Page 33
Philanthropy
33
Charitable Foundation supports housing projects
Page 34
In memory
Page 37
Member milestones
Page 38
Emerging opportunities It pays to continually build your skillset so you’re ready to seize the moment when it arises
THE ESTATE AGENT – AUGUST 2019 | 3
President’s report
Robyn Waters REIV President
For me the re-engagement with members in our regional towns and areas has been ongoing, with Roadshow visits to Traralgon, Ballarat, Bendigo, Mildura, Inverloch, Wangaratta and Mornington. Senior Vice President Leah Calnan has been able to brief members on the upcoming changes to the Residential Tenancies Act and to anticipate the preparation required for landlords, tenants and property managers within our member agencies.
It has been a busy few months for the Real Estate Institute of Victoria, with advocacy being top of mind for CEO Gil King and his team.
I have used these visits as an opportunity to speak of the modernisation of the REIV with the proposed changes to the REIV constitution and by-laws. This has been an extensive body of work with participation from senior management and great commitment from the Board for a modern, vital and engaged REIV. Any changes to the constitution and by-laws will require updates to
procedures, policies, charters and supporting systems. All will be part of an implementation plan and will be subject to consultation with a wide range of stakeholders, with a timeline for decision making and communication. The proposals will require agreement by a special resolution of REIV members. The aim is for this to happen at the REIV 2019 AGM.
For me the re-engagement with members in our regional towns and areas has been ongoing, with Roadshow visits to Traralgon, Ballarat, Bendigo, Mildura, Inverloch, Wangaratta and Mornington. Robyn Waters – REIV President
4 | THE ESTATE AGENT – AUGUST 2019
President’s Sectionreport head The REIV Board has examined and approved the Budget for the year 2019-20 which provides the ongoing financial support to Gil King and his senior management for further implementation of the REIV Strategic Plan.
The REIV data team supports our commentary with sound, current and complete data and is vital for our continued and increasing role as a commentator on all matters in property.
The REIV will host, together with the Real Estate Institute of Tasmania, the Robyn Waters – REIV President Australasian Auctioneers Championships that will culminate in the REIV Awards night to be held at Crown on Thursday, 24 October. Please keep an eye on the REIV website and emails for more details. I look forward to your participation. The REIV has enjoyed great exposure over the past few months, providing commentary in the media
– in radio, television and print – on a variety of subjects. The REIV data team supports our commentary with sound, current and complete data and is vital for our continued and increasing role as a commentator on all property matters.
The ‘Choose a Member’ section of the website has launched and is providing members with an opportunity to update their data and be found when the public are searching for an agent. This has been supported in the community with online advertising, billboards in prominent locations and in all general commentary regarding the REIV. More than 80 per cent of real estate agencies in Victoria are members of the
REIV. That’s an impressive strike rate and means we are uniquely placed to share resources, data and expertise. When someone chooses an REIV Member, they choose a professional who has completed the required training; undertakes continuing professional development training; is covered by professional indemnity insurance; and, importantly, is required to follow REIV guidelines to always act ethically, honestly and fairly. This is “The Difference” an REIV Member brings to a property transaction. It’s what makes an REIV Member unique. I close with a reminder of the REIV Mission: Enhance the professional excellence of our members to the benefit of the communities they work within, and to advocate and represent their interests. Robyn Waters REIV President
COMFORT ZONES
ARE FOR SUCKERS MEDIOCRE WORK WASTES EVERYONE’S TIME. WE LOVE PROJECTS THAT DEMAND CREATIVITY, AND CLIENTS WHO
DEMAND GREATNESS WHE THER IT’S A FAMILY HOME IN THE BURBS OR A LUXURIOUS BE ACHFRONT MANSION, NEO CRE ATES THE KIND OF IMPACT‑MAK ING, AT TENTION‑GR ABBING, G AME‑CH ANGING PROPERT Y MARK E TING CAMPAIGNS TH AT HELP YOUR VENDORS FIND THE RIGHT BU YERS WHILE YOU LIST MORE PROPERT Y, E XPAND MARK E T SH ARE, AND CEMENT YOUR REPU TATION AS THE LOCAL AGENT OF CHOICE.
SPEAK TO NEO ABOUT YOUR VPA TODAY
MARK E TING. RE AL ESTATE. LE ADERS.
5 DUNLOP ROAD, MULGR AVE 03 8809 2500 - NEO.COM.AU
THE ESTATE AGENT – AUGUST 2019 | 5
CEO report If one was to look up the ‘Member Benefits’ of any number of industry or professional associations, ‘Advocacy’ would make a regular appearance.
Gil King REIV CEO
It is not a benefit that is instantly recognised for its true worth; possibly because the true worth is often difficult to quantify. Sometimes, however, the benefit is so significant as to make it unmissable. The most recent national campaign run by the Real Estate Institute of Australia against the abolition of negative gearing and changes to capital gains tax is one such example. The campaign was run in conjunction with all the state and territory Institutes and a lot of the heavy lifting was done by individual member agencies and agents. What is essential in such large campaigns across a nation the size of Australia, is the
need for consistency and co-ordination. The message in this campaign was very consistent, well-co-ordinated and targeted the policies not the politics. The issue of negative gearing was kept front and centre throughout the campaign. The reach on social media was approximately 10.5 million and dissemination of campaign collateral to REI Members’ database was in excess of 500,000. There is little doubt that our brand has been strengthened across the country and we are now better positioned to engage in policy-setting discussion. Politicians now know that our industry can unite behind a message and this is
something that every state or territory Institute can now leverage off at a local level. The REIV was honoured to host Federal Treasurer, the Hon Josh Frydenberg MP at a real estate professionals’ breakfast at the REIV office in Camberwell just a couple of weeks before the election. To add to the gravitas of the event, we invited Adrian Kelly, the National President of the REIA, to attend. This gave Adrian and those attending unparalleled access to the Treasurer. This was not a flying visit and there was strong engagement with the Treasurer on a range of issues close to the hearts of our Members.
There is little doubt that our brand has been strengthened across the country and we are now better positioned to engage in policy-setting discussion. Gil King – REIV CEO, pictured on far right with REIV Director Richard Simpson and The Hon. Josh Frydenberg MP, Federal Treasurer
6 | THE ESTATE AGENT – AUGUST 2019
CEO report Section head One outcome of the election is that a Federal Housing Minister has been appointed. This has been a longstanding platform of the REIA and was great to share some time with the new Minister, the Hon Michael Sukkar MP, at the most recent REIA Board meeting. It is noteworthy that both the Treasurer and Minister are proud Victorians, and so we are well placed to continue this great relationship. I have mentioned that advocacy is most effective when consistent, co-ordinated and policy specific. While this is true for any campaign, the most important is for the advocating body to have strong representation within its membership both in numbers and standing. As a consequence, the continuing growth of REIV membership is a vital factor as we move more and more into the political landscape. Gil King REIV CEO
We hate to burst their bubble, but property will do just fine As much as Victorians love their sport, this obsession is not limited to athletic pursuits. Under Glenn Stevens, the former Reserve Bank Governor, interest rate-watching became a national spectator sport on the first Tuesday of every month. Over the past few years, and in particular the past 12 months, this pastime has gravitated to property-watching with particular focus on median house prices and auction clearance rates. Newspaper headlines have screamed that the property bubble has burst and it’s only going to get worse. We have seen predictions of the median house price falling by up to 20 per cent by 2020. Shock horror! Throughout this period of low market confidence, the REIV has consistently maintained that the past 12 months have seen a market correction. We expected that median house prices would fall slightly (they fell by 2.4 per cent in
metropolitan Melbourne during the year to 30 June, 2019) and clearance rates would remain low, but we would start to see the market pick up again after the Federal Election. Lo and behold, now all those ‘experts’ who predicted Armageddon are moderating their outlook based, partly, on the Valuer General’s data which, like ours, is based on actual sales. We have also seen auction clearance rates pick up to their highest levels in 12 months, sitting above 60 per cent every weekend* since the Federal Election. The property industry is bombarded with data from one source or another every week. The REIV is unashamedly the most credible and accurate source because it is based on actual sales, not assumptions or manipulations, and we get it directly from our valued members and cross-check it against the Valuer-General’s records. * As at July 2019
THE ESTATE AGENT – AUGUST 2019 | 7
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.
Dedicated team - Victoria wide 100% Safety Guarantee State of the art safety equipment We understand agent needs Flexible appointments Industry leading testing procedures
Our team is always ready to help on 03 9824 6702.
Protecting people. Protecting property. 8 | THE ESTATE AGENT – AUGUST 2019
smarthouseaustralia.com.au
Policy & advocacy
State Government advocacy update The relationship between the State Government and the REIV continues to go from strength to strength. While we may not always agree with the policy reform agenda set by the State Government, there is no doubt that the REIV is increasingly seen as a significant player in the debate on future reform for the property industry.
and commended the Government for adjusting the rates in regional Victoria so that by 2022/23 regional businesses will pay the lowest payroll tax in the nation. This is a significant win for real estate agencies in regional Victoria and will build additional investment potential.
The REIV is also pleased with the The REIV was invited to the Victorian investment in new urban growth Government Budget lock-up and given corridors and precinct plans which we the Budget Papers in advance of their have consistently release to the broader advocated for. public. Several issues that the REIV has lobbied for, While we may not We welcomed the as articulated in our prealways agree with Fishermen’s Bend Budget submission, were the policy reform Framework which supported by the Victorian agenda set by the includes homes for Government. 80,000 people and State Government, the investment in In particular, the REIV there is no doubt the innovation and welcomed the payroll tax that the REIV is employment clusters relief for small business
increasingly seen as a significant player in the debate on future reform for the property industry.
THE ESTATE AGENT – AUGUST 2019 | 9
Policy & advocacy
in Sunshine, Monash, Dandenong, LaTrobe and Werribee. Other priorities identified in our Budget submission that we will continue to work with the Victorian Government on include: • Retaining and enhancing liveability • Growing regional Victoria • Keeping Victoria competitive – property taxes • Reducing business costs – payroll tax across Victoria • Review the regulatory approach to real estate • Removing legislative impediments to provide a secure investment environment • Smart industry: promoting education and employment opportunities
The Victorian property industry remains the cornerstone of the Victorian Budget contributing 46 per cent of revenue and $10.5 billion in land tax and stamp duty alone in this financial year. This reliance on the property industry remains a great concern to our industry. In another significant win for our members in early June, the REIV moved quickly to seek urgent clarification from the Treasurer’s office about media reports that real estate agents’ commissions could be subject to tax as a result of changes to stamp duty entitlements. The changes to stamp duty entitlements are contained in the State Taxation Amendment Bill 2019, which was introduced to the Victorian Parliament the day after the Budget. There was no mention of the proposed changes in the State Budget. As
While we may not always win, our members can rest assured that we will always advocate loudly to protect your interests.
such, it took the property industry by surprise. We are pleased to advise that it is NOT the Government’s intention to levy stamp duty on real estate agents’ commissions – and that the Bill does not impose duty on fees The Victorian for service, such as real property industry estate agent fees, even when calculated on a remains the commission basis.
cornerstone of the Victorian Budget contributing 46 per cent of revenue and $10.5 billion in land tax and stamp duty alone in this financial year. This reliance on the property industry remains a great concern to our industry.
10 | THE ESTATE AGENT – AUGUST 2019
This is a good example of the strength of REIV’s relationships and advocacy work at the State level. While we may not always win, our members can rest assured that we will always advocate loudly to protect your interests. Another example of the close relationship, REIV received a copy of the Exposure Draft of the Owners Corporation Bill 2019 prior to its public release. The
proposed amendments contained in the Bill were consistent with REIV’s previous submission. As such, we had very few recommendations back to the Government, albeit we have made some recommendations to the Government to further strengthen provisions designed to ensure fairness and the efficient managing of Owners Corporations. In the coming months, we will be working closely with Department of Justice, Consumer Affairs Victoria and Department of Environment, Land, Water and Planning on a range of reforms some of which relate to the Residential Tenancies Act 2019 and others more broadly cover environmental sustainability issues. We also anticipate soon beginning discussions with the Victorian Government on the changes to Retail Tenancies Act 2003. We will continue to keep our members informed of these important reforms before their introduction. Visit reiv.com.au/latest-policy-news
In the media
Media strategy resonates The REIV continues to gain ever increasing levels of positive exposure in the media, with our spokespeople being reported daily in print, television, radio and online stories about Victoria’s real estate industry. As the media is increasingly looking to the REIV as the authority on property data, it has no doubt started to resonate that our measured commentary and predictions over the past 12 months are bearing fruit while those who warned of impending ‘doom and gloom’ and ‘crashes’ have quietly conceded that they may have exaggerated. Throughout this period of low market confidence, the REIV consistently maintained that a market correction was underway, and activity should pick up in the second half of the year. We ran a strong media campaign focused on policy issues in the lead-up to the Federal Election. We hosted the Federal Treasurer, Josh Frydenberg, for a press conference alongside REIV CEO Gil King and Immediate Past President Richard Simpson at our Camberwell headquarters. We also secured strong media coverage around the State and Federal Budgets including the major television news services, daily print media and radio.
The REIV is the ‘go-to’ source for data, whether that be the median house price, auction clearance rates or rental vacancy rates. The information that you, our valued Members, provide us enables the REIV to be recognised as the authority in this space and gives us the basis upon which we can develop engaging and interesting media stories to further elevate the reputation of the REIV and its Members. Reporting your results to REIV (or PropertyData) has wide-ranging impact, giving you profile and assisting in the elevation of the industry as a whole. To give you an idea of our media penetration, in the month of June alone, REIV President Robyn Waters represented the industry in an interview with 3AW’s Breakfast Boys and another with Neil Mitchell, two Herald Sun feature articles, a realestate.com.au article
on how to choose the right agent, ABC radio news bulletins and joined Channel Seven’s Mike Amor for a live panel discussion on interest rates during the 4pm news. One of the recent media highlights for the REIV was a story on the effect that distilleries are having on property markets, and economy more broadly, in regional Victoria. The REIV worked on this story with the Herald Sun which was then also covered by 3AW, online industry publications and regional media to reach an audience of more than 550,000 people. Channel Seven has also started using the REIV’s auction data as their regular source for property industry stories of a weekend. They routinely interview REIV spokespeople about the state of the market. REIV Senior Vice President Leah Calnan featured on Channel Seven, the Nine Network and Southern Cross regional news services television news in June, while REIV Vice President Adam Docking also featured on Channel Seven’s Saturday evening coverage. During the month of June alone, REIV CEO Gil King’s regular column on regional Victoria was printed 26 times and Gil’s commentary and REIV data also appeared in a range of suburban and industry media. Stay up to date with the REIV’s media coverage by visiting reiv.com.au
Media is an effective vehicle to communicate the REIV’s advocacy for a professional industry which embraces and celebrates high standards; it helps us tell the broader public about the reasons that make “the REIV Difference”.
Our aim is to develop engaging and interesting media stories to further elevate the reputation of the REIV and its Members.
THE ESTATE AGENT – AUGUST 2019 | 11
Bulletin
REIV NEWS Enhancements on REIV Forms and Authorities continue VicForms has been completely transitioned to a new site with significant improvements in the online Forms and Authorities and an enhanced, tablet friendly interface. Digital signatures are now integrated into some of the most commonly used documents. 1) Exclusive Commercial Leasing Authority 2) Exclusive Commercial Property Management Authority 3) Exclusive Leasing and Managing Authority 4) Exclusive Sale Authority 5) General Leasing and Managing Authority 6) Residential Tenancy Agreement This new feature makes doing business ‘on the go’ even easier. All VicForms users have access to digital signatures. No additional registration or fees required. You can now: • Create and edit documents on your mobile device • Email documents directly to clients • Get digital signatures • Complete and file
A range of ‘no-cost’ forms for Members A limited range of forms is now available on the REIV website at no cost for Members. If you prefer to use printed (hard copy) Forms and Authorities, please contact us on stationery@reiv.com.au
Get the most out of your PropertyData subscription
Get the most out of your PropertyData subscription – Join the PropertyData LinkedIn Group Credible, current and reliable market data is the foundation of a successful real estate business. Join the PropertyData Users LinkedIn Group to exchange ideas and learnings regarding the use of data and insights to build and retain business. This LinkedIn group is dedicated to sharing ideas, insights and feedback to help us all maximise the benefits of the product. We will use this platform to keep subscribers up-todate with new developments and assist each other better use the data, tools and insights that PropertyData offers.
Starting in the real estate industry can be challenging, but support from peers can help make the journey easier. Recognising this, the REIV Young Agents Chapter has been redefined as the “New Members Chapter”. We thank the Chapter Committee for this recommendation to the REIV Board. The repositioning of this Chapter reflects the dynamic nature of our industry; providing opportunities for people at all stages of their working life. Please contact the Member Services team for further information.
The rules are: Be nice. Bring value to the discussions. Be helpful. Encourage one another. Highlight trends. Share case studies and resources. Provide respectful feedback to build a strong and sustainable, industry owned data portal – your support is critical to achieve this. We will also use this Group to seek input and share updates on PropertyData – as features, enhancements are developed. Contact support@propertydata.com.au to join the group.
12 | THE ESTATE AGENT – AUGUST 2019
New Members Chapter
Toby Campbell, Chair of the New Members Chapter Committee.
Bulletin
Renting law changes
Commission-only employments
The new laws, which include reforms concerning family and personal violence, will come into effect progressively. From mid-June 2019, a dedicated section on Consumer Affairs Victoria’s website will provide a central source of information about the implementation of the reforms. For details, visit consumer.vic.gov.au/ rentinglawchanges
On 1 May, 2019, the Fair Work Commission handed down a decision to change the Real Estate Award. The decision changes how commission-only payments for salespeople apply and who they apply to.
All changes will be in place by 1 July, 2020. To view all the changes, visit the Fairer Safer Housing page on the Engage Victoria website engage.vic. gov.au/fairersaferhousing An overview of the RTA changes is also available on reiv.com.au/rta
The changes apply in two stages. The first from the first full-pay period on or after 30 April, 2019, and the second from the first full-pay period on or after 30 June, 2019. 30 April, 2019, changes The phrase “was an active licensed real estate agent” in clause 16.3 has been replaced with “has operated his or her own real estate business”.
A definition of a real estate business has been included to mean “a business involved in the sale of real property or businesses”. 30 June, 2019, changes Employers are no longer able to employ part-time employees as commission-only salespeople from the first pay period on or after 30 June. There will be no ‘grandfathering’ of the clause, which means the payment method for all current part-time commission-only employees will need to change to the hourly rates provided in the award.
THE ESTATE AGENT – AUGUST 2019 | 13
Best practice
What are we talking about?
Jim Lourandos & David Dundas REIV Information Officers
REIV Information Officers Jim Lourandos and David Dundas address some common questions from Members Residential Property Management The tenant is demanding action regarding mould, but the landlord is saying it is the tenant’s responsibility to clean it up. Who is correct?
If the mould arose after the tenant notified the landlord that the exhaust fan wasn’t working, and the landlord did nothing about it, the rectification is the landlord’s responsibility.
Residential Sales
A: It is not possible to say the rectification of a mould problem is always the tenant’s or always the landlord’s responsibility. In considering who is responsible take account of the following:
The market is falling and the Indicative Price on the Statement of Information, based on my estimate on the authority, is too high. What can I do?
• At the commencement of the tenancy the landlord is required to present the property “in a reasonably clean condition”. (Section 65)
A: Section 47AE requires that you act to correct this situation by writing to the vendor stating:
• The landlord must maintain the property in good repair but is not in breach if the damage was caused by the tenant’s failure to take proper care. (Section 68)
Members can access the REIV Information Service during business hours on 03 9205 6666
• The tenant must take care to avoid damaging the premises. (Section 61) • The tenant must give notice of damage as soon as practicable after becoming aware of it. (Section 62) • The tenant must keep the premises reasonably clean. (Section 63) So, if mould arose from the tenant failing to turn on a functional exhaust fan, the rectification is the tenant’s responsibility. 14 | THE ESTATE AGENT – AUGUST 2019
• that the estimate has ceased to be reasonable; and • why you believe it is no longer reasonable; and • that you propose to revise the estimate on the authority; and • the amount of the new estimate.
Write the new estimate on both copies of the authority and initial and date it. Prepare a new Statement of Information with a new indicative price based on your new estimate, assuming the vendor has still not revealed what they are prepared to accept. If three comparable sales were used in arriving at the new estimate, they should be recorded on the Statement of Information.
A vendor wants to list their property with me, but they have an auction authority with another the agent. The authority doesn’t have an auction date on it and no auction of the property has been conducted. Is the authority valid? A: The Estate Agents Act doesn’t specify that an auction authority must have an auction date on it, nor does it say how long the exclusive period is if there is no auction date on the authority. The authority shows the exclusive period to be until the end of the number of days specified on the authority after the auction date. Advise the vendor that because of the way in which the auction authority was completed it is impossible to tell when it ends, so if they appoint you, they would be at risk of having to pay two commissions. Suggest they ask the other agent to give them a letter or email unconditionally releasing them from any obligations under the auction authority. Alternatively, the vendors could seek legal advice. It is two weeks before a scheduled auction, two buyers have proposed figures the vendor finds acceptable. The vendor, fearful the buyers will be lost, wants a deal done. On the internet advertising can we change the date of the auction to a couple of days from now and conduct a boardroom auction. A: You could do this, but it should not be done to deny the cooling off rights to the purchaser. Section 31 of the Sale of Land Act states that there is no cooling off right if the sale is by publicly advertised auction. However, the same
Best practice
section states that “Any provision in the contract or in any other document whereby any right conferred by this section on the purchaser is excluded, modified or restricted shall be void and of no effect.” In the case of a dispute a court might see the change of auction date on one form of advertising to be a concoction designed to deny a cooling off right to the purchaser, and therefore of no effect. Also, others are possibly interested, but have not revealed their interest. They are not necessarily watching the auction date on the internet each day, so if the boardroom auction is to go ahead every effort should be made to contact all who have inspected the property.
Commercial Property Management
Act. Premises used to supply goods or services to another business as the ultimate consumer of those goods or services are retail premises, unless one of the exceptions applies, for example the tenant is a listed corporation.
The tenant in commercial premises operates a business repairing forklifts for other businesses. Under the lease the landlord has recovered land tax from the tenant, but the tenant is claiming they cannot be required to reimburse the landlord for land tax. Who is correct?
The businesses owning the fork-lifts are the ultimate consumers of the repair service provided in the rented premises, so the premises are retail and Section 50 of the Retail Leases Act prohibits the collection of land tax from the tenant.
A: In 2017 the Victorian Court of Appeal ruled in IMCC Group (Australia) Pty Ltd v CB Cold Storage Pty Ltd that the “ultimate consumer” test is part of the test to determine if a tenant’s occupation of premises falls under the Retail Leases
XXXXX
HAVE A QUESTION? GIVE US A CALL Please note: This is general information and When you have a question, whether it’s about government legislation affecting the industry should not be treated as a substitute for or just need some general guidance on any aspect of your business, reading the experienced REIVand official legislation, regulations guidelines, or for seeking legal advice where Information Officers are here to help. Just call 9205 6666. necessary.
THE ESTATE AGENT – AUGUST 2019 | 15
The REIV Difference
The REIV Difference campaign in the media reiv.com.au/the-difference
16 | THE ESTATE AGENT – AUGUST 2019
Best practice
Sunset clauses – what are the changes? The Sunset Clause came into disrepute when some developers started using it to extend the completion date of properties beyond a certain date, thereby enabling them to void the contract and sell the property at a higher price to a different purchaser. Legislation effective from 23 August, 2018, but only recently passed, closes this loophole. Previously The Sale of Land Act in section 9AE(2) gave the purchaser the ability to rescind the contract of sale if the plan of subdivision was not registered within 18 months from the date of the contract of sale, or if another period was specified in the contract, before the end of that period. The contract prepared by the vendor’s legal representative sometimes included a different period in which the plan of subdivision needed to be registered, and usually gave the vendor the ability to rescind the contract of sale if the registration did not happen within 18 months or the period stated in the contract.
Post August 2018 The purchaser retains the right to rescind under section 9AE(2). The contract can still have a sunset clause enabling the vendor to rescind the contract if the registration does not happen within 18 months or the period stated in the contract. However, the vendor will now have to adhere to a range of new provisions if they wish to rescind the contract.
a) The terms of the residential off-the-plan contract; b) Whether the vendor has acted unreasonably or in bad faith; c) The reason for the delay; d) T he likely date the plan will be registered, or the occupancy permit will be issued; e) Whether the lot has increased in value; f) T he effect of the rescission on each purchaser; g) A ny other matter the Court considers to be relevant; and h) Any other prescribed matter
The contract can still have a sunset clause enabling the vendor to rescind the contract if the registration does not happen within 18 months or the period stated in the contract.
The vendor may rescind a residential offthe-plan contract under a sunset clause if: a) The plan of subdivision has not been registered by the sunset date; or b) An occupancy permit has not been issued by the sunset date; and c) They obtain the written consent of each purchaser to the rescission after giving each, at least 28 days before the proposed rescission, a notice setting out: i) The reason for the proposed rescission ii) The reason for the delay in registration of the subdivision or the issuing of the occupancy permit iii) T hat the purchaser is not obliged to consent to the rescission. The Act specifies that the above provisions are taken to have come into operation on 23 August, 2018. The vendor under a residential off-theplan contract that contains a sunset clause may apply to the Supreme Court for an order permitting rescission. The Court must have regard to:
The Supreme Court may make an order it considers just and equitable, including an order for reasonable compensation to the purchaser. The vendor is liable to pay the costs incurred by the purchaser unless the vendor satisfies the Supreme Court that the purchaser unreasonably withheld consent to the rescission. A point of interest The purchaser’s right to rescind relates to an ‘off-the-plan contract’, but the obligations imposed in the Act on a vendor seeking to rescind a contract only relate to a ‘residential off-the-plan contract’.
THE ESTATE AGENT – AUGUST 2019 | 17
SIGNED, SEALED AND DELIVERED. Digital signatures now available on Vicforms. • Tablet friendly layout to create and edit documents on the go • Email documents directly to your client through VicForms • Get digital signatures, no additional cost • Complete and file documents Vicforms is a multi-user system that allows more than one user in your agency to access the portal at any one time. Only pay for usage, no set up or subscription fees. Vicforms is the best way to ensure that you always have access to the most up-to-date REIV forms and authorities. Contact vicforms@reiv.com.au to get started.
Best practice Section head
Owners corporation correspondence Solicitor Norman Mermelstein, Member of the REIV Owners Corporation Chapter Committee, shares his views on the definition, recording and preserving of OC correspondence. The Owners Corporations Act 20061 (Act) obliges an owners corporation (OC) to keep correspondence for at least seven years, as part of its records. The Act does not define the term “correspondence” and, at present, there is no Victorian case law that clarifies its meaning. However, in recent interlocutory orders (unreported) following a directionshearing of the Victorian Civil and Administrative Tribunal, the records of the OC were taken to include –
to in the first bullet point, involves OC business, and that an individual committee member who may not be a lot owner has the status of an OC member; • Verbal communication is not OC correspondence, unless it is recorded or transcribed in written form; • Text messages and other forms of electronic communication may be OC correspondence; • A permanent copy should be made of a text message, before the text is deleted;
• Although the Act is silent on the destruction of OC correspondence within the seven-year period, it should be clearly understood that destruction in that time is not permitted. • An OC manager should consider if privacy law considerations apply, when making OC records available for inspection. • If privacy applies, the manager may need to consider suitably masking an individual’s personal information – such as their email and other addresses and telephone numbers. • As a guide, an OC manager with an annual turnover of more than $3 million must comply with the Privacy Act 1988 (Cth). OC managers with a smaller annual turnover may also like to consider adopting similar measures, bearing in mind community expectations about privacy protection.
Solicitor Norman Mermelstein is a Member of the REIV Owners Corporation Chapter Committee
• All correspondence (including email correspondence) between the: – Manager and members of the OC (including the committee); – Manager and non-members of the OC (third parties); – The committee and members of the OC (lot owners); – The committee and non-members of the OC. • The records of the OC do not include correspondence between committee members, between lot owners, or between individual committee members and other lot owners. The Tribunal also held • Correspondence protected by legal professional privilege is not correspondence for the purpose of section 144 (h); • An OC cannot make rules or resolutions about the disclosure of OC correspondence, if it is contrary to the Act.
1
Sections 144(h) & 1452 THE ESTATE AGENT – AUGUST 2019 | 19
XXXXX
In the author’s opinion • It is implicit that OC manager and OC committee correspondence, referred
Although the Act is silent on the destruction of OC correspondence within the seven-year period, it should be understood that destruction in that time is not permitted.
Membership
Members share the secrets to their success Andy Reid, Kaan Ristic and Chris Manolopoulos reflect on their careers and open up about the lessons they’ve learnt.
Andy Reid Founder, Sold by Group Member since 2017
My story started at my father-in-law’s dinner table. We agreed that if I was rubbish, he’ll bin me with no hard feelings… and almost 10 years later I’m going OK.
The biggest challenge was accepting the changed perception from being a muchloved bar manager to a much-loathed real estate agent. Coming into the role you know that you will face some rejection, especially in those first couple of years, but it can be very trying indeed. However, once I stopped focusing on income and gained a greater perspective through a focus on goal-setting, the whole game changed for me almost immediately. I would absolutely recommend making it the first thing a new entrant should do. My key driver is my family. My success means nothing if I haven’t got them to share it with.
I established the Sold By Group to focus on a few different aspects of the real estate business. A freelance auctioneering team of specialist auctioneers, with more than 80 years’ experience among them, our job is to enhance the reputation of the brands we work for. A marketing department that consults and provides a network catering for all aspects of marketing. A coaching department with more than 20 one-hour training courses, covering all aspects of real estate and delivered in the client’s office. We also run a ‘Mentorship Program’, designed to get the very best out of your sales team and set it up for success moving forward. Finally, our community department which is a total donation of skills and services towards charities and non-profit organisations.
Once I stopped focusing on income and gained a greater perspective through a focus on goal-setting, the whole game changed for me. Andy Reid Founder, Sold by Group
I have been an REIV member since the day I started my business. I am pleased to see how it has evolved into a booming place where ideas are encouraged. Progress is being actively soughtafter so I’m really glad to be a part of it. To the public it also gives you credibility, so if you use it wisely in your marketing, you’ll help your chances of success.
If you have recently joined the REIV, consider joining the New Members Chapter for peer support and guidance. Contact us on reiv@reiv.com.au 20 | THE ESTATE AGENT – AUGUST 2019
Membership
Kaan Ristic Managing Director & Co-Founder Ristic Real Estate Pty Ltd Member Since 2003
The father-son rule; I kind of fell into the role by following my father’s footsteps and starting at the tender age of 19. I began as an assistant before co-founding the family business at 23. The biggest challenge I believe for most agents starting out is managing your cash flow. It can take 12 to 18 months before you start to make a real impact in real estate, as what we do now may not come to fruition for three months or more. Stay committed, go all in – don’t have a backup plan or plan B. If you like what you are doing, be consistent, shadow a mentor or find a coach to keep you accountable. Consistency and transparency, be persistent when starting out. Having the passion to help people. The excitement of securing a listing and then the satisfaction of making the sale and most importantly having all parties in the transaction happy – sellers getting their most-valued asset sold successfully and buyers finding their dream home. Get up early, exercise and protect your energy. Schedule your day in advance. Do the most important stuff first in the morning, like making those important phone calls. It will boost your day and give momentum. People will always remember how you make them feel so you need to ensure you bring plenty of energy to the table.
Chris Manolopoulos Sales Agent, McGrath Manningham & Whitehorse Member since 2013
After university and a number of marketing roles but I felt like I needed less of a corporate job and more of a ‘work for myself’ job. I chose to get into real estate after being advised by family and friends that I would be suitable for a sales role with a big customer service focus. The key driver for my success would really be setting goals; both professionally
Stay committed, go all in – don’t have a backup plan or plan B. If you like what you are doing, be consistent, shadow a mentor or find a coach to keep you accountable. Kaan Ristic (above) Ristic Real Estate Managing Director and co-founder
Chris Manolopoulos Sales Agent, McGrath Manningham & Whitehorse (above)
and personally. I guess having a long-term approach from the beginning of my career and really understanding that things won’t just happen from day one and especially without me trying my hardest, played a big role too. Being nice to people always helps. I worked hard to get noticed and moved at the first opportunity to an agency that could help me not only grow but do better.
For anyone starting out in this industry (especially sales) – this is going to be hard work, filled with heaps of rejection and a lot of late hours. But this is the most rewarding career you could ever have so keep pushing through. Never be afraid to ask for help and never underestimate the importance of the work you put in just because you don’t see immediate results. THE ESTATE AGENT – AUGUST 2019 | 21
Membership
Shaping our future The 2019 REIV Annual General Meeting will include resolutions on improvements to the REIV Constitution designed to reflect today and position the REIV well for the future; whatever it may bring. The journey In 1936, Victoria’s population was about 1.2 million and the Berlin Olympics were the first televised sporting event. By 1961, Victoria’s population had risen to about 2.4 million and Russian Yuri Gagarin became the first human in space. By 1985, Victoria’s population had risen to about 3.7 million, Neighbours was
THE DIFFERENCETM WILL HELP YOU MAKE 2019 A REAL ESTATE SUCCESS.
born, mobile phones were large, heavy, expensive and the preserve of the few and the Sony Discman replaced the Walkman as the must-have technology. Today, Victoria’s population is about 6.3 million, some 19 per cent of the national population, and is growing by about 125,000 each year. More than 180 languages and dialects are spoken in Victoria with more than 20 per cent of Victorians (30 per cent of Melburnians) speaking a language other than English at home. Vinyl LPs and Polaroid may be enjoying a renaissance,
Institutions, such as the REIV, created by their members to help them prosper, must also keep on evolving if they are to remain relevant to their constituents.
but on-demand streaming whether of music, movies and TV shows is becoming the new normal across the generations. Payment by cheque is the exception not the rule with online banking and mobile wallets transforming how we manage our money. The world of 2019 is very different to that of yesteryear and will keep on changing. Global events, ideas, inventions, innovations will keep on coming, whether significant big bang disruptors or things that permeate into the day to day seemingly by stealth or products heralded as universal panacea one year and obsolete the next. Businesses ignore political, economic, social, technological, legal and environmental developments at their peril. We cannot predict the future, but we must ensure we remain relevant to customers. By being the best today, practising continuous improvement to keep pace with incremental changes and being sufficiently agile, structurally and culturally, to make more significant changes when needed. Only the fittest survive. Constitutional change during the life of any business is inevitable to ensure that the purpose for which it was established, what it can and cannot do, the rights and responsibilities of stakeholders and rules and procedures for decision making are fit for purpose. If they are not, then the business will struggle. The Board of Directors cannot change the Constitution. Members decide, generally at an Annual General Meeting. The real estate sector and the many professionals and businesses that operate within it are not immune. Institutions, such as the REIV, created by their members to help them prosper, must also keep on evolving if they are to remain relevant to their constituents.
1936
1961
1964
1985
1992
Establishment of Real Estate and Stock Institute Real estate education begins at RESI headquarters
Individual membership introduced
Novice Auctioneering Competition launched. Joins FIABCI, the International Real Estate Federation
RESI and REAA merge to form REIV
REIV becomes a Registered Training Organisation
22 | THE ESTATE AGENT – AUGUST 2019
Membership Section head
The REIV needs to attract, retain, engage and support an increasingly diverse membership throughout their careers.
web and cloud based interactions and services. The Board’s guiding principles for the review are: Membership: Protect Members’ fundamental rights under the Corporations Act;
Modernisation: Simplify, reflect Corporations Act requirements and good practice, including levels of procedural detail, and provide sufficient levels of flexibility and agility; Diversity: Be inclusive and reflect growth in the sector growing diversity; The REIV’s origins go back to 1936 when the Real Estate and Stock Institute (RESI) was established. Through the foresight, diligence and commitment of successive Boards of Directors acting in the best interests of the Institute and its Members, the REIV has changed with the times. For example, in 1961 RESI introduced individual membership. In 1985 the REIV was established through the merger of RESI and the Real Estate Agents Association. In 2015, the facility to hold elections by electronic means was introduced and used for the first time in 2018. Our collective thanks must go to all the Presidents and Directors over the past 83 years who were instrumental in delivering the REIV of today. Many continue to be active REIV members.
The destination The REIV Board believes it is time for some more change. Members were advised at the 2018 AGM and in the 2017-18 Annual Report that the Board would review the REIV Constitution with a view to putting proposals to Members for decision at the 2019 AGM.
The Board has considered political, economic, social, technological and legal developments and Institute governance best practice. Operational improvements continue to be made for the benefit of Members and to increase internal efficiency and effectiveness. These alone cannot ensure the delivery of the Mission, Strategy and Strategic Goals or a sustainable future for the REIV. The REIV needs to attract, retain, engage and support an increasingly diverse membership throughout their careers. While real estate is the thread that binds Members together, there is increasing specialism, the emergence of associated disciplines in need of a home, a highly regulated and increasingly litigious environment and impending changes to real estate training requirements. Our Members span several generations with different reasons for joining and staying and different views on how they prefer to interact. Everyone is time poor, but data rich with high expectations of instant access to up-to-date information and increasing demand for mobile, digital,
Standards: Support professional development and enhance consumer and wider stakeholder confidence in REIV Members; Leadership: Provide sufficient levels of certainty and continuity and ensure Director and Board arrangements reflect the Corporations Act and good practice. Work on proposals is well underway. A draft of the Constitution will be made available to Members for feedback in early September. This will allow the Board to consider Members’ comments and adjust as necessary in time for issue of the final proposals at the beginning of November and decision at the AGM. Whether you attend the AGM on 26 November, 2019 in person or exercise your vote by proxy, all Members are encouraged to play their part in shaping our future.
1994
1998
2004
2016
2019
REIV Awards for Excellence Launched
REIV Seniors Auctioneering Competition starts
Vicforms and PropertyData Online launched
REIV Master Auctioneers program commences
Choose a Member, online portal launched
THE ESTATE AGENT – AUGUST 2019 | 23
Data insights
UNITS V HOUSE SALES
Is Melbourne becoming an apartment city? If you live in inner or middle Melbourne you would have observed the changing landscape – houses with large front yards being replaced by units, townhouses and apartments. Real estate professionals have recognised the opportunity and many have become specialists in apartment sales. It has also created a demand for Owners Corporation Managers (confirmed by the surge in demand for REIV training on the topic). The REIV research team conducted a deeper analysis into this trend to get a better understanding of how widespread it really is.
total sales. Interestingly, in the March 2019 quarter units and apartments in the City of Melbourne recorded both the most affordable median price in the metropolitan area of $410,000 and the highest turnover with 115 sales between 1 January and 31 March 2019 alone.
The facts: Our analysis reveals that units and apartments represent 35.4 per cent of total sales in metropolitan Melbourne which is a similar level to 2007-09 when the sector experienced a huge influx as a result of the completion of high-rise apartments in Docklands (Refer to Figure 1 below).
The inner Melbourne suburbs of St Kilda, South Yarra, Richmond, Southbank and Docklands also recorded large numbers of sales in the first quarter of 2019. Inner-city living is popular with CBD workers, students and downsizers who want to be close to the action with minimal fuss. New apartments are also eligible for the Victorian Government’s First Home Owner’s Grant of up to $10,000 for new properties in the metropolitan area and $20,000 in regional Victoria valued up to $750,000.
Before 2007, units accounted for under 30 per cent of total sales, the big change happened in 2007-09 and has stabilised since then, staying above 33 per cent for the past 10 years.
Media reports suggest the surge in apartment living is being spurred by booming population growth and Melbourne’s increasing popularity as a provider of higher education. Busy 24/7 lifestyles may also play a role in necessitating a lower maintenance lifestyle for more and more Victorians.
Middle Melbourne The REIV has also recorded an increase in demand for apartments in middle Melbourne (10-20km from the CBD) with apartment sales accounting for more than 38 per cent of all sales in 2018. Policy and planning strategies encouraging greater densification along public transport corridors is helping to boost these
Looking closer at the geographic spread of apartments, there are clear trends in inner, middle and outer Melbourne (Refer to Figure 2 on opposite page). Inner Melbourne Unit and apartment sales in inner Melbourne reached their highest levels in 2018, accounting for 58.5 per cent of
100.0% 90.0% 80.0% 70.0% 60.0% 35.5% 64.5%
33.9% 66.1%
35.8% 64.2%
34.2% 65.8%
33.2% 66.8%
33.5% 66.5%
34.4% 65.6%
33.8% 66.2%
33.0% 67.0%
33.3% 66.7%
33.7% 66.3%
20.0%
32.3% 67.7%
30.0%
31.0% 69.0%
House
40.0%
29.2% 70.8%
50.0%
Unit
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
35.4% 64.6%
FIGURE 1 RATIO OF UNITS, TOWNHOUSES AND APARTMENTS TO HOUSES FOR TOTAL RESIDENTIAL SALES, ACROSS MELBOURNE
10.0% 0.0%
24 | THE ESTATE AGENT – AUGUST 2019
2018
Data insights Section head
FIGURE 2 PROPORTION OF UNITS, APARTMENTS AND TOWNHOUSES RELATIVE TO ALL RESIDENTIAL PROPERTIES SOLD (BY REGION)
56.7%
Inner (<10 Km from CBD)
56.3%
57.7%
57.1%
Middle (10 -20 Km from CBD)
55.7%
Outer (>20 Km from CBD)
56.4%
54.9%
55.9%
55.0%
34.8%
34.7%
34.5%
18.1%
18.5%
17.5%
17.3%
13.5%
13.8%
13%
11.8%
12.5%
2011
2012
2013
2014
2015
Regional
58.5%
56.7%
56.9%
35.7%
36.8%
16.9%
16.9%
17.5%
11%
11%
11.2%
2016
2017
2018
51.9% 48.4% 43.8%
26.87%
15.2%
2004
2005
32.6%
19.3% 16.2% 13.9%
18.4%
14.3%
14.6%
2006
2007
33.3%
32.7%
11.6%
21.3%
2008
18.2% 15.9%
2009
16.8%
14.4%
2010
as of 31 March, 2019; Preston where the median is $482,500; Croydon, with a $486,500 median; St Kilda, with a $495,000 median; and North Melbourne with a median unit and apartment price of $500,000.
numbers. We are seeing increasing levels of subdivision in these middle Melbourne areas, where owners are knocking down older homes and putting several units or apartments on the same block. ‘Granny flat’ type arrangements are also becoming more prevalent for adult children or parents to live on the same property but maintain independence.
Brighton is home to metropolitan Melbourne’s most expensive unit and apartment market with a $1.02 million median, followed by Bentleigh East at $1 million and Mount Waverley where the median is $900,000.
Aside from Melbourne, affordable unit and apartment markets can be found in Noble Park, with a median of $423,000
FIGURE 3 2018 VS 2017 PERCENTAGE DECLINE IN SALES BY PROPERTY TYPE
40.0% 35.0% 30.0%
20.6%
23.8%
20.1%
17.9%
23.0%
5.0%
12.3%
10.0%
16.7%
15.0%
24.4%
25.0% 20.0%
33.5%
38.1%
30.2%
29.4%
13.7% 11.6%
33.5%
34.6%
0.0% METRO
INNER
MIDDLE
OUTER
House Unit
Outer Melbourne Not surprisingly, houses remain the most common dwelling type in outer Melbourne, where larger parcels of land can easily accommodate this dwelling type, accounting for 82.5 per cent of sales. Last year alone more than 17,000 houses changed hands in outer Melbourne compared with 3596 units and apartments. Data reported to the REIV reveals that while sales volumes for both houses and apartments/units was down in 2018, units and apartments had a much softer fall (Refer to Figure 3 on left). The number of unit and apartment sales in metropolitan Melbourne decreased by 17 per cent comparing 2017 with 2018, while transactions of houses declined by 23 per cent. As densification of housing increases, units and apartments will continue to be a growing market for the Victorian real estate industry. Get the latest market updates on reiv.com.au/market-insights THE ESTATE AGENT – AUGUST 2019 | 25
GET THE COMPLETE PICTURE More than
More than
Vic agencies regularly report results
historical sales records are available to access
1,550
8,400,000
More than
3,000,000
Over
Over
of auction results are collected on a weekly basis
of auction results are published and distributed by 7pm Saturday
96%
sales results are appended with photos and plans
Data Collection Agent Reporting
89%
of auction results collected on the day of auction
Automatic Upload Set up a direct feed of your sales results. Simple and Seamless. AgentBox
Eaglesoftware
Listonce
Rexsoftware
MyDesktop
Box+Dice
Call Center
iDashboard
Mcgrath
Email Results
iProperty
and more
SOURCES
Direct Entry
Listing Portals Data uploaded from listing portals daily.
Valuer General
Address, price, date, property type. Description, photos, floor plan. Vendor/purchaser details, lot & plan, volume & folio.
Historical sales data spanning back to
1970s
Updated Daily
89%
Clean, consolidate, complete and check For your business SOI Report CMA Report
Cross checked; One record per transaction
iOS App APIs
Where and how it is used/published Published on REIV social channels and shared widely
Generates market commentary from the REIV
Choose a Member
Published across Victorian media and publications
Let others know when you make a sale!
Market insights for your brand and the industry
17,500 emails on Saturday night SOLD
TODAY.COM.AU
Events
Banitsiotis plays the numbers game Mathematical ability has helped push Luke Banitsiotis of Woodards Blackburn to the top of the pack in the REIV Senior Auctioneers Competition for the second year in a row
REIV Senior Auctioneers Competition Luke Banitsiotis of Woodards Blackburn took out the title of 2019 REIV Senior Auctioneer of the Year for the second consecutive year while Paul Tzamalis of The Auction Company was runner-up. The two were declared the top performers from a field of nine contenders, which was narrowed to five finalists over a two-day competition on 21 and 22 May at REIV headquarters in Camberwell. The competition was followed by an interactive training session with threetime Australasian Auction Champion, Mark Sumich. Luke and Paul will go on to represent Victoria at the Australasian Auctioneering Championships to be held in Melbourne from 22 to 24 October, 2019, in association with the Real Estate Institute of Tasmania (REIT).
Luke said his secret weapon is his mathematical ability which enables him to call bids quickly and accurately. “I felt a bit of pressure going in after winning it last year so it’s good to come out with a win and I’m looking forward to October, going into the Australasians in my home state,” he said. “The Australasian competition is a great experience. It’s one level up so it’s all about learning and developing and hopefully this year we go one better and make the final.” REIV Vice President, Auction Chapter Chair and Chief Judge, Adam Docking said the competition was strong. “Luke was technically superior, head and shoulders above everybody else, while Paul’s calling had a lot of life,” he said. “They were outstanding. In competition, just like in today’s market, it is all about being technically correct while putting on a performance and engaging with the crowd.” The REIV was delighted to again have the Herald Sun and Leader as our Auction Partners. For the first time this year, the competition was live-streamed the
From left, the finalists Michael Richardson (Fletchers Glen Iris), Joshua Kalender (Nelson Alexander), Luke Banitsiotis (Woodards Blackburn), Paul Tzamalis (The Auction Company) and James Doherty (Vision Real Estate). Above right, REIV competitors for the 2019 Australasian Auctioneering Championships with Judges of the 2019 REIV Senior Auctioneering Competition. Left to right, Peter Kakos, Adam Docking, Paul Tzamalis, Scott Patterson, Luke Banitsiotis and Mark Sumich.
28 | THE ESTATE AGENT – AUGUST 2019
Events Section head
competition via our Auction Partner GAVL with links for each competitor updated on the REIV’s social media channels throughout the competition. Other finalists: • Michael Richardson (Fletchers Glen Iris) • Joshua Kalender (Nelson Alexander) • James Doherty (Vision Real Estate)
Luke inducted as an REIV Master Auctioneer
Honour Roll REIV Master Auctioneers The Master Auctioneering Program has been developed by the REIV and its Auctioneering Chapter to recognise some of our best auctioneers and set a benchmark for best practice auctioneering. The accolade celebrates auctioneers who have excelled in their field, particularly in state or national competitions. Winners of the Senior Auctioneers’ Competitions receive and retain the title of Master Auctioneer while they continue as members of the Institute.
Steven Abbott Luke Banitsiotis Peter Batrouney Adrian Butera Phil de Fegely Peter Hawkins Peter Kakos
Harry Li Justin Long Allan Lord (posth) John Matthews Michael McCarthy (posth) John Nichols (posth) Scott Patterson
The program was launched at the Australasian Auctioneering Championships Award presentation in September 2015. The REIV works
closely with the Master Auctioneers to continually enhance the skills and expertise of Victorian auctioneers.
Australasian Auctioneering Championships The Australasian competition was last held in Melbourne in 2015, the year our own Harry Li took out the title, which was the first time in 10 years that a Victorian won. Will 2019 be Victoria’s year again? The Championships will kick off on 22 October, 2019, with a welcome cocktail event where the competition order for the heats will be drawn.
Following two intensive stages of the competition, the winner will be announced at the REIV Awards for Excellence Gala Dinner on 24 October, 2019. The Australasian Auctioneering Championships is an annual event showcasing some of the best professional auctioneers in Australia and New Zealand.
Barry Plant Milo Rasinac Tom Roberts Geoff Sutherland Jeremy Tyrrell Marshall White (posth) Matthew Young
Originally established in 1991 as a competition between the Real Estate Institutes of Tasmania and Victoria, the concept was quickly adopted by South Australia and held every two years. Over time the remaining Australian states and territories joined the competition as well as New Zealand.
The Australasian competition is a great experience … it’s all about learning and developing. Luke Banitsiotis – 2019 REIV Senior Auctioneer of the Year
For all event information visit auctionchampionships.com.au
THE ESTATE AGENT – AUGUST 2019 | 29
THANK YOU
TO ALL OUR CONNECT 2019 PARTNERS
MAJOR PARTNERS
SUPPORTING PARTNERS
The REIVâ&#x20AC;&#x2122;s Connect 2019 series of events across Victoria help our members understand current legislation and the impact on their businesses. Visit reiv.com.au to find one near you.
Events
2019 Upcoming Events AUGUST
SEPTEMBER
6
REIV Connect - Sandringham
10
REIV Connect – Wantirna South
9
Award Entries Close
12
Commercial & Industrial Marketing Awards – RACV City Club
17
REIV Connect – Hoppers Crossing
16 20
Economic Forecast Luncheon with Treasurer of Victoria, Hon. Tim Pallas River Room at Crown Towers Novice Auctioneers Competition – Heats
27
Novice Auctioneers Competition – Final
29
A Focus on Small Business Reforms – Breakfast with the Small Business Commissioner – Kew Golf Club
Dates correct at time of printing. Topics and speakers are added online as information becomes available.
OCTOBER 22 - 24
Australasian Auctioneering Championships – Federation Square
24
Awards for Excellence – Palladium Ballroom at Crown Towers
NOVEMBER 14
Commercial & Industrial Breakfast – Kew Golf Club
19
Golf Day – Woodlands Golf Club
26
Annual General Meeting – REIV Camberwell
29
Business Brokers Christmas Lunch
Hosted by
REIV_Ad_Halfpage_127x180.indd 1
24/7/19 4:20 pm
THE ESTATE AGENT – AUGUST 2019 | 31
Training
THE JOB READY PROGRAM In a more challenging market, employers and employees recognise the value of these practical skills, the uptake of these courses has increased by 86 per cent year on year. Contact training@reiv.com.au for further information.
Ready for the real estate challenge? The Job Ready program equips new Agents Representatives with the skills and knowledge they need to perform day-to-day tasks efficiently and with confidence Help at hand to be as prepared as possible The Agent’s Representative course gives new entrants the necessary education to work in real estate, but does it equip them well enough to navigate the fast-paced and demanding industry? Starting out in real estate can be daunting. Over the years we have found that a little extra time spent in training can make a big difference to job performance and results. The REIV developed a special program focused on practical information to help new entrants complete their day-to-day tasks efficiently. The Job Ready program builds on the knowledge gained at the Agents Representative Course and prepares students for the day-to-day rigours of real estate. 32 | THE ESTATE AGENT – AUGUST 2019
Delivered as two distinct three-day courses, residential sales and residential property management, the courses go deeper into some of the critical aspects of an agent’s day-to-day role.
Job Ready – Residential Property Management Course On completion you can expect the student to have the information required to: • Apply legislation to processes and procedures • Undertake property inspections and end of tenancy procedures including claiming of bond money • Accurately complete property listing authorities, lease agreements, entry condition reports and routine inspection reports • Communicate effectively with owners corporations, landlords, tenants and tradespeople • Issue notices
• Undertake repairs and maintenance procedures • Deliver listing presentations and devise strategies to grow the rent roll • Understand the role of VCAT and preparation for VCAT hearings • Use strategies to handle complaints and resolve issues • Implement systems and procedures for managing properties including record-keeping.
Job Ready – Residential Sales Course On completion, you can expect the student to have the information required to: • Identify and understand the application of relevant government agencies, legislation and regulations to sales • Understand the functions, roles and responsibilities within an agency team • Research the real estate market • Identify the types of Sale Authorities and when to use them • Understand legislation and implications to real estate sales • Complete a Sales Authority with accuracy • Complete a vendor’s checklist and associated documentation • Define and implement a marketing schedule • Use strategies to communicate and negotiate effectively throughout the sales process • Carry out tasks to show properties and follow-up leads • Apply the Contract of Sale process • Understand relevant legislation and regulations for auctioning of property • Implement procedures to conduct an auction.
Training
Emerging opportunities
With the real estate market constantly evolving, it pays to continually build your skillset so youâ&#x20AC;&#x2122;re ready to seize the moment
Are you prepared for the evolving property market?
Multi-Unit Development â&#x20AC;&#x201C; Sales Fundamentals
To say that the real estate market is dynamic would be stating the obvious.
Presented by trainer Michael Hall, this one-day professional development course focuses on the fundamentals of property development, specifically local multi-unit developments. If you practice in an area where multi-unit developments are becoming popular, this course can open new opportunities.
The size of homes, backyards is reducing. The proportion of units and apartments is increasing. The perceived boundaries of Melbourne metro have expanded. The type, size and location of the properties being sold and leased continues to change, as do the expectations of clients. This requires us to continually build our skills, to maximise the opportunities presented. Consider expanding your knowledge of the market by undertaking some of the specialist training developed to focus on these emerging opportunities.
Owners Corporation Management As multi-unit developments increase, the demand for OC Managers will continue to grow. The REIV offers three OC Management courses aimed at all levels of experience in the field.
Are you keeping your team up-to-date with changes to real estate laws? The Solution: Customised REIV training, at your office. A convenient and cost- effective way to upskill your team and have their questions answered. Contact training@reiv.com.au
THE ESTATE AGENT â&#x20AC;&#x201C; AUGUST 2019 | 33
Philanthropy
REIV Charitable Foundation supports housing projects We are pleased to advise that the REIV Charitable Foundation has made two grants of $10,000 each to Launch Housing and the Foundation for Rural and Regional Renewal. The REIV Charitable Foundation provides a platform for Members to channel funds to charities and causes that are important to them. Since inception, the Foundation has distributed more than $275,000 – that’s an average of more than $21,000 a year. Last year, we surveyed Members to seek input on the causes that they wanted the Foundation to support. As expected, providing housing assistance, was nominated as the key area of emphasis. We are proud to be able to help two very important programs this year.
SUPPORTING THOSE IN NEED You may want to consider the role of a mentor to a young person living in one of the supported accommodation facilities. These young people often have few adult role models, so mentoring offers them a great deal of guidance and support.
34 | THE ESTATE AGENT – AUGUST 2019
From left, Launch Housing’s Chris Mills, HomeGround Real Estate Manager Simone Curley, REIV Charitable Foundation Chair Sophie Lyon and REIV President Robyn Waters.
Launch Housing – Emergency Relief and Material Aid Program The Emergency Relief and Material Aid Program is a cornerstone of Launch Housing. This program consists of flexible funding that is distributed on a greatest need basis across 13 sites. Delivered as part of a comprehensive support plan, it assists individuals, couples and families with their immediate needs that they are otherwise unable to afford. Emergency relief and material aid includes: • Accommodation, rental assistance and housing establishment (e.g. rent arrears, rent in advance, bond, furniture) • Food, clothing and consumables (e.g. food vouchers, food parcels, toiletries, clothing) • Children’s education assistance (e.g. school-books, uniforms, excursions) • Adults education assistance (e.g. course fees, books) • Preschool, early childhood assistance and childcare assistance
(e.g. costs associated with childcare, kindergarten or playgroups) • Employment assistance (e.g. uniforms, equipment) • Minor household items (e.g. kettle, toasters, cookware, crockery, cutlery, linen) • Travel assistance (e.g. myki cards, driving lessons) • Utilities assistance (e.g. gas, electricity, internet, phone) • Medical and therapeutic assistance (e.g. essential medications) In 2017-18, Launch Housing’s Emergency Relief and Material Aid program assisted 610 households 1344 times. Several of these households had accompanying children who also benefited from receiving flexible and timely support. At an average of $129 per person (2017-18), the REIV Charitable Foundation’s donation will directly assist up to 62 people who are at risk of or experiencing homelessness.
Find out more at launchhousing.org.au
Philanthropy
Funds to boost housing projects in rural and regional Victoria The REIV Charitable Foundation’s $10,000 donation to the Foundation for Rural and Regional Renewal will help build vibrant and sustainable communities The REIV Charitable Foundation “Our Strengthening Rural Communities donated $10,000 to the Foundation program can fund virtually anything, for Rural and Regional Renewal including kitchen sinks, so long as it’s (FRRR). The funds will be distributed for a charitable purpose and benefits the through FRRR’s Strengthening Rural whole community,” she said. Communities program. In collaboration with “Donations like this other generous trusts, one from the REIV Donations like this foundations, businesses Charitable Foundation one are significant and governments, REIV’s are significant funds will strengthen because it means that because it means the social fabric of rural, communities can get that communities regional and remote support for what they can get support for Victorian communities. deem important.” FRRR CEO Natalie Egleton explains that FRRR believes that local leaders are best-placed to know what their community needs.
what they deem important.
Natalie Egleton – Foundation for Rural and Regional Renewal CEO
Established in 2000 by the Federal Government and the Sidney Myer Fund, FRRR’s mission is to stimulate rural and regional renewal in Australia, working
STRENGTHENING COMMUNITIES REIV Charitable Fund Directors chose FRRR because of a shared passion for vibrant, sustainable and adaptive rural, regional and remote communities. The donation will support housing-related projects.
in partnership with philanthropy, government and business. FRRR can grant to not-for-profit groups that often can’t access that kind of support due to their tax or legal status. FRRR has funded more than 9500 projects, distributing more than $85 million in grants and providing advice and capacity building support. Previous such projects include supporting governance training for an organisation providing ‘tiny houses’ for people experiencing homelessness; a project to attract people to live in small country towns for a peppercorn rent, helping to keep the town alive; and funding for professional advice to determine the most appropriate organisation and legal structure for an independent living accommodation provider. FRRR will update the REIV community on the impacts of the donation. For more information, visit frrr.org.au or call FRRR on 1800 170 020 To find out more or get involved with the REIV Charitable Foundation, please email foundation@reiv.com.au FRRR Partnerships & Services Manager Sarah Matthee with REIV Charitable Foundation Chair Sophie Lyon and REIV CEO Gil King. THE ESTATE AGENT – AUGUST 2019 | 35
Feature
Game, set and match – it’s the real deal Real tennis – also known as ‘the sport of kings’ – is the original racquet sport from which the modern game is derived, and it’s got plenty of fans. I walked into what was a nondescript property in Sherwood St, Richmond; an area I was quite familiar with. What suddenly appeared before me was akin to an oasis in the desert. The Royal Melbourne Tennis Club premises is hidden away behind high walls and is unremarkable from the outside but quite remarkable on the inside. The Club, founded in 1884 and originally located in Exhibition St, moved to the Richmond premises in 1975. I was met by the Deputy Head Professional Jonathan Howell and was instantly made to feel welcome. I sat and watched a game being played on a court which appeared to be something from Lewis Carroll’s Alice’s Adventures in Wonderland. The game itself defied all the logic of what I grew up knowing to be tennis. As I was later informed, what I knew to be tennis was in fact properly termed Lawn Tennis. What I was watching was in fact Real Tennis, played on ‘real tennis’ courts. The first thing that caught my eye was that the net noticeably sags in the middle; the walls are not uniform as you would see on a squash court; the serve is done
at first seem to be an ‘underground’ sport clearly has a large following, with more than 600 members of the Club which was hosting me.
Deputy Head Professional Jonathan Howell and Woodards Group CEO John Piccolo.
somewhere around the halfway mark and only occurs at one end of the court; and the racquet is asymmetrical with the ball looking like a tennis ball but acting more like a squash ball (sort of). A few minutes later I was joined by the man I had come to the venue to see. John Piccolo, the CEO of the Woodard’s group and the Chair of realestateview.com.au, was about to travel to Philadelphia to compete in the 2019 World Masters Championship and he had come in to pick up his racquet. What was instantly obvious was that people of all ages play this game, and they play it all day and every day. What might
The World Champion honour board was fascinating with the first entry at circa 1750 and the last being 2018. It is the longest running continuous championship of any sport. What distinguished this type of world champion, however, was that fact that there have been only 29 of them, with only two this century. The honours are shared between France, England, the US and Australia with Australia having three of the past four world champions (1987, 1994 and 2018). Only 47 Real Tennis Courts are in operation around the world. If you are interested in finding out more about the sport, or even participating, more information can be found at rmtc.com.au And for the record, John won his first match but was unfortunately knocked out in the second round by the ultimate winner of the 60s singles event, John Prenn of England. Gil King REIV CEO
36 | THE ESTATE AGENT – AUGUST 2019 REIV_EA-Ad.indd 1
3/6/19 2:36 pm
In memory Section head
Remembering John Holdsworth This master sales negotiator brought just as much passion and commitment to his community as he did to business.
Passionate and fiercely competitive was the way John conducted his real estate dealings spanning some 37 years. With the sales skills he honed in the motor trade, John started his real estate career in the Bayside suburb of Albert Park. Having grown up locally, John’s enthusiasm for his beloved Bayside district was an endearing feature of his approach to every sale. Over the years, John mentored many real estate professionals, instilling in them the same high ethical standards he displayed. A master sales negotiator, John built his career on repeat and referral business.
social gathering. As past President of the South Melbourne Districts Sports Club junior football and long-term President of Neighbourhood House Kindergarten, John was widely respected for his generosity within the local community. As a Swans tragic he was overjoyed at their droughtbreaking 2005 Grand Final victory. Aged 72, John passed away peacefully at home on 26 March after a battle with cancer. He was one guy who wished he had spent more time at the office. A true gentleman, The Old Master, will be sadly missed.
Outside of real estate John enjoyed time with his family and friends. He especially enjoyed the camaraderie of the office team and was a prominent feature at many a
New members Licensed Members Safwan Ahmad Lauren Allingham Christopher Anderson Louis Bai Paul Basso Ralph Battista Matthew Belford Michael Bevan Dhruv Bhardwaj George Bito Anthony Bloomfield Gerard Bohan Stuart Bonning Keith Brain Sandra Brizzi Leyden Burdett Toby Campbell Matthew Carroll Adam Casan Patricia Chuah Danielle Corner Jeff Cowan Marc Cox Chris Cunliffe Sean Cussell Robin Dhalla Matt Dhull Jim Dimitropoulos Luciana Dinoto Steven Dong Josh Dunstan Kim Durrand Timothy Egan Dylan Emmett
Emilia Faba Melissa Ferrier Serge Fikir Shane Foenander Man Fong Joel Fredman Jeffrey Garvey Farzin GhaffariHesari Susan Gratton Gu Gu Mia Hamilton-Kerr Danny Harris Steve Hatzi Tara Hore Paul Jones David Kalb Harry Karageorge Theo Karseras Ekansh Kohli Damian Larkin Glen Laybourne Brenda Letson Andrew Leung Iris Li Jason Lien Matthew Lynch Shaun Ma Lauren Macpherson Tom Maidment Avi Mann Dinesh Mann Taryn Mann Mikhala McCann Joseph McCurry
Jason McDaniel Susan Mitrevski Daniel Nestor Nam Nguyen Tim Noonan Rob O’Keeffe Paul Organtzidis Evan Pang Mandy Peck Justin Pell Hellen Peng Anthony Perera Peter Perrignon Nick Petrovski Vinod Rathore Andrew Rice Marc Romeo Kate Rushton Priscilla Selloyee Abhishek Seth Daniel Sheean Karan Singh Namneet Singh Preet Rathore Singh RJ Singh Adam Sorrell Joanne Spencer John Stack Shani Stevens Quader Syed Dean Teuma Trent Tran Sumit Vishal Alain Warisadi Theresa White Donchi
Sharon Whorlow Scott Wilkie Brant Williams Matthew Wood John Wysham Roger Zhao Max Zhu Timothy Zou Representative Members Rizwan Ahmed Gurmit Aiden Leigh Allingham Amanda Angus Jeremy Brown Vicki Caravias John Carrazza Ricky Chander Uday Chandran Sam Chebib Bo Chen Jie Chen Jun Chen Laura Cook Gary Cooke Julia De Campo Fedele Dennaoui Vikkas Dhingra Joanne Douglas Stephanie El-Bitar Megan Fawcett Sean Fernando Aldo Galante Rachel Garel
Rebecca Gargaro Martijn Groen Cheryl Hargreaves Anne Haynes Sharon Hibberd Brittany Holley Erin Hopkins Joanna Jiang Peter Jones Ash Kalkat Justine Kantanis James Kerr Gemma Kilcoyne Michael Kojdo Andrew Koulaouzos Kristin Kwon Jamie Lampard Jyeyih Lee Lynn Li Macy Li Peter Li Eugene Louey Bill Lu Alexa Manthos Nathan May Sarah Meldrum Claude Mery Randy Navaratne Zack Ninkovic Georgina Paganis Jake Parish Markella Pehlivanidis Sandy Phan Temika Rae-Peters Shaun Rayment
Linc Reynolds Ian Ross Maurizio Scorrano Leah Sharma Xiao She Abhi Singh Karan Singh Virender Singh Nicole Smith Tania Smith Maree Sofra Mark Stafford Jim Stephens Katya Tetyukhina Kim Tiong Vivian Trantan Cassie Turner Robert Valvo Zelda Van Rensburg Inderbir Vasu Michaela Versteegen Jay Wane Shawn Wang Ericka Wong Melissa Xuereb Steven Yuen Steven Zarokostas Lily Zhu
THE ESTATE AGENT – AUGUST 2019 | 37
Membership Milestones We congratulate the Members who completed important milestone Membership Anniversaries during the April-August 2019 period.
ABOVE: Members celebrating 30 years with the REIV, in order from left to right.
40 YEARS DEREK DAVIDSON
30 YEARS SCOTT BANKS RICK BERRY MICHAEL BLAKE TREVOR BOOTH TERRY BURGOYNE GERALD DELANY NICHOLAS GANGEMI JEFF GOLE HARRY KYRIAKOU TONY LATESSA METKA MCDONALD CHRIS PEART DARYL RAYNER TERRY SPARKS TONY SUMMERFIELD PETER WEATHERBY
38 | THE ESTATE AGENT â&#x20AC;&#x201C; AUGUST 2019
20 YEARS KAY ALEXANDER DOROTHY ALKEMADE JASON BARNETT RODNEY BAXENDALE MICHAEL CHAN GRAHAM COULTON SIMON DERHAM ANTHONY GUNN TOM HARROP PAUL KEANE COLIN KITNEY ANTHONY MCDONALD SHAYNE MOONEY LEX NOBLE BEN QUIGLEY VIN QUIRK SIMON REGAN GREG SCHERWINSKI DANIEL SHEEAN JANET SPENCER GREG SUPER ROSS TITHERIDGE LUC TOMASINO TIM VALPIED
10 YEARS HUSEYIN ALPOZGEN DION BESSER JOHN CATANZARITI BRANDON CHUAH SHANE CLOSE BRETT DISTON DARREN DODD JUSTIN DUNNE KIM EASTERBROOK EDDIE FAKHRI STEVE FEREN STEVE FOSTER RICHARD FRANK MARTIN GILES CHRIS HASSALL BRUCE HEDDITCH GEORGIA HESTER MELISSA HICKSON CRAIG KERR EUGENE KHOO JERRY LEE
CALLIE LEONG PHIL LILLEY ALLASON LYNCH ARTHUR MITSINIKOS MARCUS PENNEY BEELAN RERKSIRATHAI LEWIS ROTH TRACEY RUSSELL MICHAEL RYAN HUSS SAAD MATT SPICER JOSH STIRLING CORINNE SUKROO ANDREW TURNER CRAIG WEBSTER LUMA WHITEHEAD BRANT WILLIAMS LILIAN YOON CHRIS ZERVAS LISA ZHOU
Section head
CHOOSING AN AGENT WITH THE DIFFERENCE IS NOW EASIER THAN YOU THINK.
When you decide to sell, buy or rent a property you need to be confident you have the right agent on your side. Choosing the right agent for your property is, at last, easy to do. Visit reiv.com.au and you will find real estate professionals with the relevant skills, knowledge, expertise and results. The REIV Difference means our Members are qualified professionals, committed to ongoing training, protected by professional indemnity insurance and most importantly, they are people who have undertaken to follow the REIV Guidelines to always act ethically, honestly and fairly. Choose an REIV Member, visit reiv.com.au/thedifference