The Estate Agent - April 2016 by Real Estate Institute of Victoria

The journal of the real estate institute of victoria

reiv.com.au

STRONG RESULTS Melbourne experiences record-breaking weekend MEMBER news Annual lunch raises $12,000 for charity

The Estate Agent

APRIL 2016 Volume 80 No. 1

Industry icon reflects on 47 years in business When it comes to experience, itâ&#x20AC;&#x2122;s hard to top Valda Walsh

80 years young

REIV celebrates a milestone anniversary

Protect clients and yourself

PPSR vital for commercial agents

The price is right

State Government reforms to target underquoting on residential properties

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Property Managers – Trust the Brand you know!

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By law, every residential property must have smoke alarms installed

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Smoke alarm maintenance, testing and battery replacement should be conducted at least annually

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Smoke Alarms must be replaced every 10 years

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Trust the Victorian experts: - We understand Property Managers better - No subcontractors - Insider knowledge - Victoria’s largest market share - Flexible appointments - Safety guaranteed - Peace of mind - State of the art safety equipment

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Contents

11 ‘We are sending a strong message to rogue agents who are doing the wrong thing. These laws will help clean up the industry and make it fairer for all Victorians’ Jane Garrett, Minister for Consumer Affairs,

Gaming and Liquor Regulation

Cover story Planned reforms to curb ‘rogue’ agents

Features

12 16 18 28 32

State Government reforms to tackle price quoting

Real estate icon reflects on career When it comes to real estate experience, it’s hard to top Valda Walsh, who has been in the industry since 1969

Safety in the workplace Agents frequently deal with strangers, but vigilance and precautions can help minimise risks

REIV celebrates 80 years The Real Estate Institute of Victoria still provides a united voice for the industry eight decades on

Buyer’s agents hint at real deal More and more buyers are getting professionals to act on their behalf

Knowledge you can trust Trust accounting requires a sound understanding of the bottom line

28 The Estate Agent ❘ April 2016

Contents

Presidentâ&#x20AC;&#x2122;s Report

CEO Report

9 Bulletin 14 REIA News 22 Profile 26 Market Update 28 Agents 31 Case Study 32 Trusts

33 Best Practice 34 Events Calendar 35 Training 37 Member News 38 Obituary

35 31

Publisher REIV 335 Camberwell Rd, Camberwell, Victoria 3124 Editor Paul Bird pbird@reiv.com.au

Advertising Rick Fiedler rfiedler@reiv.com.au 9205 6654

The Estate Agent

Estate Agent is published by the Real Estate Institute of Victoria.

The Estate Agent â?&#x2DC; April 2016

Cover photograph: Stu Morley The views and opinions expressed in articles and columns of Estate Agent are those of the writers and do not necessarily represent those of the Real Estate Institute of Victoria

President’s Report Geoff White President REIV

REIV working closely with Government to achieve goals

here’s been significant progress made by the REIV, in liaison with the State Government, since the new administration led by Premier Daniel Andrews won office in November 2014. This has resulted in outcomes in a number of areas, including the positive regulatory result on licensing of agents for large commercial transactions, achieved last year. The Andrews Government is now focusing on a range of legislative areas in relation to the property sector, through a series of reviews. These reviews include the Consumer Property Law Review encompassing the Estate Agents Act, Sale of Land Act, Owners’ Corporations Act and Residential Tenancies Act. The REIV is providing input to Government on these reviews at present. The first issues paper in the wide-ranging Consumer Property Acts review was released late last year with our submission provided to Government for consideration in mid-March. In our initial submission, the Institute lobbied strongly for amendments to Section 55, Section 49A and greater training of agents. The REIV sought feedback on this important review from multiple Chapter Committees and held division meetings at key regional centres. A further issues paper relating to the Owners’ Corporation Act 2006 is already underway. A significant review of the Residential Tenancies Act is also ongoing. The REIV will continue to work closely with the Property Management chapter on this important review with the third Issues Paper – Rights and Responsibilities of Landlords and Tenants – already in progress. In addition, I am representing the REIV on a review of the apartment sector at present – the Better Apartments review. A sub-committee

Flat chat: A sub-committee is considering the potential for new standards for apartments yet to be developed.

has been formed, headed by Planning Minister the Hon Richard Wynne, which is considering the potential for new standards for apartments yet to be developed. The REIV will continue to work with Government and regulators to ensure our members’ interests are represented in these significant legislative reviews. While this work is keeping us busy, we are also liaising with the Government on the important area of price quoting. The Minister for Consumer Affairs, Hon Jane Garrett, has announced proposed regulatory reforms to Section 47 of the Estate Agents Act to improve transparency and consistency in the way agents quote property to

both vendors and buyers. Further information on the proposed legislation is featured on page 11 of this edition. A further issue, which we are looking to engage with Government on, is training of agents and the professionalism of the industry. Aligned with this is a broader issue affecting the industry – mutual recognition legislation, which allows poorly trained and lowly qualified agents to practice in Victoria. This will be a major focus over the next 12 months as will broader training standards. The REIV Board and senior management team recently took part in its annual two-day strategic planning meeting. Continued on page 6

The Estate Agent ❘ April 2016

President’s Report

Continued from page 5

To address the challenges facing our industry in the years ahead, the REIV is aware the Institute needs to be proactive on behalf of members. The meeting was overwhelmingly positive with many new member services in the pipeline. I’m also pleased to announce Sam Tamblyn has joined the Board as an independently appointed director. Founder of Urban Property Australia, Sam has more than 16 years’ experience in local and international markets and currently chairs the REIV’s Valuation Chapter. A certified valuer, Sam has a passion for real estate and is an excellent addition to the Board. I would also like to take this opportunity to congratulate CBRE Victoria, winner of the Commercial Agency of the Year award at the 2016 REIA National Awards. In a sign of its continued excellence, CBRE has won this national award for the past three consecutive years.

Passionate: From left, Urban Property Australia f0under Sam Tamblyn has joined the REIV Board as an independently appointed director; Consumer Affairs Minister Jane Garrett has announced proposed regulatory reforms to improve transparency and consistency in the way agents quote property to both vendors and buyers.

The award recognises excellence in agency practice and is open to small, medium and large agencies in the commercial sector. Held in Melbourne, this year’s awards were a great success and acknowledge the high standard and

professionalism of agents across the country. Long-standing REIV member and past President Neil Laws was also recognised at this year’s national event, awarded the President’s Award. This is a tremendous honour.

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 ❘ April 2016

REIV 1

CEO Report Enzo Raimondo CEO REIV

Reaching out to get the best result from the market

hile Melbourne’s median house price moderated slightly in the December quarter to $718,000, buyer and vendor confidence remained high early in 2016. The city experienced one of the strongest February markets on record with almost 3,000 homes going under the hammer. Clearance rates in the early months were also some of the highest ever, at 78 per cent for January and 74 per cent for February. The weekend of 19-20 March saw the third highest auction weekend on record with 1,667 auctions held. While it fell short of the all-time record for auction numbers, the weekend broke the record for the highest number of homes sold in a single weekend with 1,230 homes sold under auction conditions. Meanwhile, the December 2015 quarter delivered good news for agents in regional Victoria, with both house and unit median prices recording solid capital growth. Houses rose 2.2 per cent in the last three months of 2015 to a median of $353,000 while units increased 2.3 per cent over the same period to a median of $268,500. The commuter town of Seymour was one of the strongest performers in the last three months of 2015, recording price growth of more than 16 per cent. This significant growth saw the town’s median house price rise to $219,000, up from $187,500 in September. More broadly, agents across Victoria have reported a solid autumn market. Meanwhile, 2016 has proved fruitful for former REIV President – and longstanding member – Valda Walsh, acknowledged in the Australia Day Honours. Valda has deservedly been appointed a Member (AM) in the General Division of the Order of Australia for her significant contribution to charity and the real estate industry. A Director of Walsh Cairnes and Co for more than four decades, Valda has also been involved

Risk management remains a topic of ongoing interest and importance for agents, particularly those in the property management sector with numerous charitable organisations over the years. This includes as a director of Open Family Australia, committee member for Mercy Hospital as well as involvements with Rotary Clubs in both Toorak and South Yarra. On behalf of the REIV, I would like to congratulate Valda on this incredible achievement. In the training area, the REIV has updated its CPD course offering with the frequency of the commercial training portfolio increased to cater for member interest. These courses are popular with residential property managers who are also handling commercial buildings. Our Business Broking training portfolio has also been updated with three new halfday CPD courses added. Furthermore, risk management remains a topic of ongoing interest and importance

for agents, particularly those in the property management sector. The Institute has recently conducted its first interactive online webinar on announced changes to price quoting. Engagement from members on this important issue was outstanding and the REIV will look at opportunities to provide more events and training courses in an online format. In regards to price quoting, the REIV continues to work closely with the Government and Consumer Affairs Victoria (CAV) in the best interests of members. Over the past few months, the REIV has liaised with Government on this area, to find a solution which best serves all stakeholders. This followed a comprehensive consultation process with members, with many of the supported options featured in the Continued on page 8

The Estate Agent ❘ April 2016

CEO Report

Continued from page 7

revised legislation. These included the provision of recent comparable sales to buyers; only single price or range to buyers (no ‘price-plus’ or ‘offers over’ advertising); and progressive updates to buyers. The Institute has also been active in responding to the wide-ranging review of the Residential Tenancies Act and its two published issues papers – Security of Tenure; and Rents, Bonds and other charges. These initial papers sought feedback on a range of topics including mandating long-term leases, pets in rental properties and removing the ‘no specified reason’ notice for landlords. The REIV consulted extensively with the Property Management Chapter in collating our submission and a targeted online survey for landlords and tenants has also been sent to members for distribution. Agencies with substantial rent rolls are asked to support the REIV in the distribution of these surveys, with results set to enhance our position with quantitative data for future papers.

The Estate Agent ❘ April 2016

Auction bonanza: March 19-20 saw a record number of homes sold in a single weekend.

A further four issues papers relating to this review are expected in the coming months. The REIV has also presented the State Government with a Budget submission on taxation and investment affecting the property sector. The REIV has acknowledged growth in the Victoria economy under the current

Government and called for further investment in key infrastructure in Melbourne’s outer suburbs and regional centres. Other key aspects of our submission related to further stamp duty reductions for first home buyers and extending the First Home Owners Grant to include established homes.

Bulletin

NEGATIVE GEARING limit

The Federal Opposition has announced plans to limit negative gearing to newly constructed investment properties. Under its policy proposal, the capital gains tax discount would also be reduced from 50 per cent to 25 per cent. The REIA has released independent research supporting the retention of negative gearing in its current form. The research shows the majority of individuals who benefit from negative gearing currently own one investment property and earn an annual income below $80,001. The REIV and REIA will continue to strongly oppose any change to negative gearing.

Feedback given after ESTATE AGENTS ACT REVIEW After consultation with REIV Chapter and Division committees, the REIV has provided the State Government with feedback on a major review of a range of property Acts. The REIV’s submission was in response to the Government’s review of four key pieces of property legislation, including the EA Act and the Sale of Land Act, currently being carried out by Consumer Affairs Victoria (CAV). Released in late December, the first

Victoria leads the way

Victoria’s economy is leading the nation, growing faster than it has in more than five years. According to the Australian Bureau of Statistics, state final demand growth over the year to December 2015 was 4.6 per cent, nearly double 2014 figures of 2.4 per cent. Victoria’s economic growth was significantly higher than national growth of 1.1 per cent. NSW was the closest state to Victoria, recording state final demand growth of 3.4 per cent over the year.

issues paper addressed the training, licensing and conduct of estate agents and owners’ corporation managers. The REIV’s submission called for amendments to Section 55, Section 49A, and greater training of agents among other things. Two subsequent issues papers relating to this review have since been released, in the past month. These focus on the Sale of Land Act and the Owners’ Corporations Act.

Coulton wins prize

A questionnaire on this publication has paid dividends for one member with Graham Coulton, of Coultons Melbourne, winning the REIV’s EA Survey prize draw. Coulton was awarded an REIV training course to the value of $450 for his input. The EA survey sought member feedback on the content, and frequency, of the publication.

HOME BUYERS SEMINAR helps consumers

In conjunction with the Bendigo Bank, the REIV hosted a Home Buyers Seminar for consumers late last year. Attendees entered a draw to win one of two Bendigo Bank $500 savings accounts with the winners announced as Anthony Ling and Alexis Christodoulou. The free information seminar featured a comprehensive overview of the current market, a mock auction and legal advice.

Changes to HOME ACCESS LAWS

Legislation governing the way notices are issued under the Residential Tenancies Act is in line for an update in coming months. Existing legislation requiring a notice of entry be given to tenants by electronic communication is due to be clarified by Government, confirming notices can be sent electronically.

Be careful when USING ‘Subject to Council Approval’ Members using the acronym STCA (Subject to Council Approval) in advertising material and sales brochures need to ensure planning approval may be available. This involves agents undertaking elementary planning control checks,

before including STCA. If a check indicates a use is prohibited, STCA should not be mentioned in any way. Members who fail to undertake the appropriate checks run a distinct risk of engaging in misleading and deceptive conduct. The Estate Agent ❘ April 2016

Bulletin

Updated Commercial Lease form available to members on VicForms

The REIV has updated its Commercial Lease form, with the revised copy now available to members on VicForms. Designed to be easier to understand, the updated documentation includes Personal Properties Security Act (PPSA) requirements and allows for service of notices by email. Other major improvements include accommodating for up to four landlords and four tenants and differentiating between company and individual landlords and tenants.

NATION’S MEDIAN HOUSE PRICE FALLS In the last quarter of 2015, Australia’s median house price fell slightly for the first time in more than three years. New data from the REIA shows the nation’s median house price declined marginally in the three months to December 31, down 0.4 per cent to $695,788. The decline follows 13 consecutive quarters of growth and decreases in both the Melbourne and Sydney median house price. Decreases were also recorded for other dwellings in the December 2015 quarter, falling 0.7 per cent to $543,468.

REIA President Neville Sanders says these declines were offset by strong growth in Hobart, Canberra and Brisbane, as well as slight increases in Darwin and Perth. “Annual growth is still strong but lower compared to what we observed over the last couple of years. Compared to the December quarter of 2014, the weighted average median house price increased by 7.4 per cent while the figure for other dwellings went up by 5.7 per cent,” says Sanders.

New payment option for RENT COLLECTION from Centrelink payments

A new service which allows rent to be deducted directly from a tenant’s Centrelink payments may be an option for agencies with a large rent roll. Centrepay is a free, opt-in electronic payment service for people who receive Centrelink benefits. The secure, reliable and fast service is available at a minimal cost to agencies. To start using Centrepay, agencies must apply to the Department of Human Services (DHS) to be registered as a user.

Off-the-plan sales need everything in order

NEW CHECKLIST to help meet legal obligations Consumer Affairs Victoria (CAV) has developed a new property management checklist to help agents meet their legal obligations. The ‘self assessment checklist for property management businesses’ highlights key information that a 10

The Estate Agent ❘ April 2016

CAV inspector may ask for during an inspection. CAV will be carrying out inspections of property management businesses throughout 2016. The checklist can be downloaded from the CAV website at consumer.vic.gov.au

Members considering an appointment to sell property off-the-plan need to ensure Sale Authorities outline commission arrangements made with vendors. Depending on what is negotiated, agents may need to alter the standard commission wordings in the REIV General and Exclusive Sale Authorities (Item 1 Agent’s entitlement to commission) to do so. The VicForms versions of Item 1 in General and Exclusive Sale Authorities feature an appropriate reminder in regards to this, if you are going to sell off-the-plan. The reminder will be added to the hard copy versions of the authorities, as they are reprinted.

Cover story

Planned reforms to curb ‘rogue’ agents The State Government is planning to tackle property price quoting

he State Government has announced plans to introduce major regulatory reforms to price quoting legislation. The proposed changes to Section 47 of the Estate Agents Act include delivery of a new fact sheet for buyers, which will contain recent comparable sales, the median house for the suburb and the agent’s estimated sale price. Under the new legislation, agents will also be required to revise the property’s estimated selling price if a written

offer is received that is higher than the current advertised or estimated price. In addition, ‘offers over’ or ‘price-plus’ advertising will be prohibited with the selling price only to be provided as either a single price, or a price range – which must fall within 10 per cent of the upper and lower end. Set to apply to residential private sale and auctions – rather than rural or commercial properties – the revised legislation will shift the onus of proof on to agents to justify their choice of

Fairer rules: The proposed reforms will apply to residential private sales and auctions.

comparable sales with evidence of how they arrived at the property’s advertised price. Agents who are found guilty of breaching the price quoting laws will risk losing any sales commissions and face fines of 400 penalty units. Jane Garrett, Minister for Consumer Affairs, Gaming and Liquor Regulation, says the Andrews Government is committed to toughening up laws to stamp out underquoting. “We are sending a strong message to rogue agents who are doing the wrong thing. These laws will help clean up the industry and make it fairer for all Victorians,” she says. The reforms were the result of a collaborative approach by the REIV and the Office of the Minister for Consumer Affairs (CAV) and come after an online members’ survey found 71 per cent of respondents felt the current legislation was ineffective in curbing underquoting. The changes are designed to bring transparency and consistency to property transactions and to be effective in a variety of market conditions. CAV has emphasised that more inspections will be taking place over the year and agents are reminded to be vigilant in their price quoting and marketing activities. The proposed legislation will be introduced to Parliament later this year and the REIV will keep members informed as it progresses.

The Estate Agent ❘ April 2016

Profile

Paul Jeffers

Property expert: Valda Walsh has been recognised for her dedication to the real estate industry and the community.

Industry icon reflects on 47 years in the business When it comes to experience, it’s hard to top Valda Walsh, who has been working in real estate since 1969

The Estate Agent ❘ April 2016

ighly-respected REIV member Valda Walsh joined an exclusive club this year; awarded an Australia Day honour for her contribution to real estate and the community. Widely recognised as a trailblazer in the industry, Valda is one of only two women to head the REIV in the past 85 years and is currently celebrating 47 years in business – all as a director at Walsh Cairnes & Co in Kew. Valda took over the running of the business full-time, supported by son Simon, when her husband John died 27 years ago. Under her management, Walsh

Cairnes & Co has remained a small business, focused on providing the best possible services to its clients. It is her long-standing commitment to the real estate industry as well as her championing of small business and charity work that was acknowledged in this year’s Australia Day Honours when she was awarded a Member (AM) in the General Division of the Order of Australia. She will receive her medal in a ceremony at Government House in Melbourne in mid-April. “I’m honoured and thrilled to bits that just an ordinary person doing an ordinary job well, has been recognised,” she says.

Profile

A life member of the REIV, Valda is proud of her achievements in the competitive and male-dominated real estate industry. She was initially doing the bookwork for Cairnes Real Estate as a young mother before she and her husband were invited to take over the business in 1969. Back then, Valda drove clients from house to house for viewings, usually up to four properties at a time. “Now buyers look online and have all the information at their fingertips,” she says. “It was easier to sell some ‘harder to market’ properties in those days, especially on main roads. “People understood there were good buys on the main roads, often because they had large backyards and offered value for money. Because they personally viewed the homes, buyers gained a strong understanding of the ‘value proposition’ that was offered. Now people are often reluctant to buy on these roads because they look online and aren’t willing to view the property.” But this is not the only major change Valda has seen over the years. There were fewer auctions back in the ’70s, with the majority of homes sold privately. “Agents had a pretty good idea of the price as homes weren’t potentially getting a skyrocket price through multiple bidders at an auction,” she says. Technology has also transformed many aspects of the real estate industry. Gone are the old fax machines, photocopiers and scanners, replaced by computers and email. Valda recalls that up until the late 1990s, print advertising for agencies was “king” – now it’s online that dominates. Even rental payments have moved online. Valda recalls tenants who were on her rent roll for many years, paying their weekly rent in cash. “These days, everything is done online.” According to Valda, all contracts were once hand-typed. She recalls when the then premier, John Cain Snr, introduced the Section 32 document about 30 years ago. “People said it would be the end of the world with this extensive,

detailed new contract in place but it has worked well and now the majority of contracts are done online.” Valda says while buyers remain savvy, the features they look for in a home have changed. “Forty years ago, the size of the land was critical. People were big on backyards. The laundry was often at the rear of the home so it was easy to hang washing out. They also had a separate dining room which was regularly used. It was important for people to live on the ‘high’ side of the street for reasons like good drainage.

‘Forty years ago, the size of the land was critical. People were big on backyards. The laundry was often at the rear of the home so it was easy to hang washing out’ – Valda Walsh “This all changed in the 1980s when it became important to have a northfacing backyard for sunlight. Buyers also wanted a big family room and houses where the laundry was moved to within the home. The 1990s saw the dining room become a spare room or study and now all homes must have internet access and work desks.” Valda has watched the major growth of apartments across Melbourne in the past decade however refuses to sell them “off the plan”.“Buyers need to see and feel apartments to gain a good understanding of the outlook, size and shape,” she says. Buyers and vendors were “extremely” loyal to an agent back in the ’70s and ’80s, something she says has changed these days. However one thing that hasn’t changed is Valda’s commitment to the industry which she loves. Apart from her role as REIV President, she has served on a number of committees. She was on the Members Council for many years, a representative body that meets multiple times each year with divisional members across the state. But despite these active roles, she has always found time for her community.

Dedicated to charity work since she was 16, Valda operates a community noticeboard and uses her contacts to help people find work or nursing homes. She collects donated clothes and distributes them to Fitted for Work, an organisation that helps disadvantaged women find work. Men’s clothing goes to the Sacred Heart Mission. Valda has served as director of Open Family Australia, a charity that provides outreach services to homeless young people, as a committee member for the Mercy Hospital and was also involved with the Rotary clubs of South Yarra and Toorak. She is on the board of the LaTrobe Society, overseeing Governor LaTrobe’s former home near Government House, is a member of the Lyceum Club, the MCC and the RACV, chairs a Body Corporate for MIRVAC and runs the Body Corporate in her own apartment block, Como, in South Yarra. She lists her family as her greatest asset. “I have achieved goals. I have two wonderful children and two grandchildren. I think that’s a better achievement than anything else.” However there is no doubt this icon of the industry still loves what she does. She still insists on attending all her open for inspections, preferring this personal approach. One vendor was heard to say: “She could pick a potential buyer at the MCG!” Proud that her agency remains independent, she believes these smaller agencies play an important role. “We can provide a caring service … there’s always a place for personal service.” She says that these agencies deliver an important injection to the state’s economy, adding, “we run a small business; an ordinary person employing people and paying tax”. And Valda shows no signs of slowing down. She works every day and most nights. She quips that she expects to work to the end, saying that “I’ll die ringing the auction bell!” She always has her finger on the pulse. As the familiar sign on top of her Kew agency says: “Ask Valda – she knows!” The Estate Agent ❘ April 2016

REIA News

Victorians shine at Nationals Victorians have taken out two awards at the Real Estate Institute of Australia’s 11th National Awards for Excellence, held in Melbourne last month. The national awards recognise the best agents and agencies Australia wide with 16 winners crowned at a gala dinner at Crown’s Palladium. CBRE Victoria was awarded the Commercial Agency of the Year for the third successive time while Neil Laws of Kerleys Real Estate in Queenscliffe was presented with the prestigious President’s Award, recognising significant contribution made by an individual to the real estate profession. REIV President Geoff White says the wins highlight the high standard of agents and agencies in Victoria. “Victorian agents and their

Top of their game: Recipients of awards at the Real Estate Institute of Australia’s 11th National Awards for Excellence, held in Melbourne last month.

businesses continue to lift professional standards nationally and are contributing to new best practice

Neil Laws President’s Award Auctioneering is a passion for Queenscliffe real estate agent Neil Laws. “Once it’s in your blood, it stays there,” he says. That’s certainly the case with Laws, a high-profile REIV member recently recognised by the REIA for his “significant contribution” to the real estate profession. Following his success at the REIV’s awards in October, Laws was awarded the prestigious President’s Award for 2016 at the REIA’s National Awards for Excellence. An REIV member since 1987, Laws still enjoys nothing better than running a local auction. But it wasn’t always that easy. “Initially I was petrified,” he recalls. “I used to stammer and stutter, and carry on, but I saw it as a challenge. As a young fella I watched good auctioneers and also did a number of courses with the REIV.” He is now in demand as a judge for auctioneering competitions throughout Australia and New Zealand. A member 14

The Estate Agent ❘ April 2016

Honoured: President’s Award winner Neil Laws.

of the national steering committee for the Australasian Auctioneering Championships, he is also a national judge. Laws says the competition criteria is similar to public speaking.

‘Initially I was petrified. I used to stammer and stutter, and carry on, but I saw it as a challenge’ – Neil Laws “Competitors are given an auction scenario. They are then judged on their technique including legal requirements for running an auction, ability, appearance and even concentration ... Overall, they are judged on how they connect with their buyers.”

benchmarks,” he says. Victorian winners at this year’s awards are featured below.

Laws, from the Goulburn Valley, followed his stock and station agent father into the industry, and studied as a valuer at RMIT. After working for the Government Valuer in Melbourne, he took a position at the Geelong office before moving into real estate. He joined the Geelong Division of the REIV and served terms as both branch President and secretary. He started his own agency in Queenscliffe which he later sold to Kerleys Real Estate. He remains there as branch manager as well as running an independent valuation practice. Laws moved on to state level with the REIV as a zone delegate and was asked to run for the board in 2002. He spent 10 years as a board director, including a term as President in 2007-2008. A former board director for REIA and member of the Estate Agents Council, he has served on various REIV committees, is a Fellow of the REIA and served as a director of realestateVIEW. com.au from 2002-15. He remains a member of various auction committees. Laws’ eldest daughter, Magenta, followed his footsteps, now working in the field. “We do talk valuations a lot when she comes home,” he laughs.

REIA News

CBRE Victoria Commercial Agency of the Year CBRE Victoria will be inducted into the REIA Hall of Fame next year after winning its third successive award at the 11th National Awards of Excellence. The Victorian arm of this global organisation was awarded the Commercial Agency of the Year at the recent awards, following wins in 2015 and 2014. Senior Managing Director Mark Coster says the business is proud to be recognised by the REIA, with the win capping off a series of awards from the Royal Institute of Chartered Surveyors (RICS) earlier this year. With 17 offices across Australia, CBRE is a global leader in commercial real estate and dedicated to delivering end-to-end solutions for clients across the property spectrum. Operating within the Victorian market for more than 50 years, CBRE Victoria has established itself as one of the leading commercial property services firms with a range of services including sales and leasing, valuations, property management and advisory services. CBRE Victoria also has dedicated teams specialising in agribusiness, debt and equity origination, sustainability and depreciation. The winner of the REIA 2015 Commercial Salesperson of the Year, Coster has overseen the growth of the Victorian business in the past 12 months. By the end of the year, staff numbers are projected to reach over 400. He highlights the ongoing development of the firm’s Corporate Social Responsibility program as a key achievement. “We see our CSR program as extremely important both culturally and in terms of our community involvement,” he says. The Victorian firm’s leading initiative is its annual Walk for a Wish, in which about 100 staff members participate to raise funds for charities such as Starlight, beyondblue and Unicef. Last year’s event raised $250,000. Staff are also given two days of paid leave to take part in the company’s Helping Hands volunteer program. “Our CSR program gives people

Winners are grinners: Clockwise from above, CBRE Victoria staff celebrate winning the Commercial Agency of the Year; MC Colin Lane; and REIV President Geoff White.

a sense of pride in CBRE, engenders teamwork and helps our employees support the community,” Coster says. Coster says client care is one of CBRE Victoria’s core priorities with the company’s mission to be “visible, proactive, consistent in our approach, and communicate effectively to build the strongest possible client relationships”.

‘Our CSR program gives people a sense of pride in CBRE, engenders teamwork and helps employees support the community’ – Mark Coster Its marketing plan dovetails with client care, focusing on innovation, providing the most comprehensive marketing support and investing in new strategies and tools – particularly in the digital space – to enhance client relationships and deliver results. Professional development of all staff is “essential”, with its ‘Leading with Impact’ program designed to attract, retain and develop the firm’s female talent. Among its many accomplishments, CRBE Victoria’s involvement with the

prestigious Australia 108 project is well known, achieving a record price for an Australian apartment last year. Currently under construction in Melbourne’s Southbank, the building will be the second tallest in Australia, comprising 1105 apartments over 100 floors. Coster says CBRE’s core priority is to deliver real advantage to clients by achieving superior client outcomes. “It’s all about the client – that’s what drives our business and our people.” He notes that CRBE’s ability to work seamlessly across borders is one of the factors that allows the firm to continue providing high levels of client service. An example of this is the Melbourne team steering a project to secure and fit out 56 Salvation Army Employment Plus (SAEP) sites nationally. This involved securing, designing and fitting out 43 new sites and managing 13 lease renewals within just eight weeks. “The technical skills of our tenant representation and project management team combined with out ‘one-stop shop’ service provision, was integral to the success of the project which was completed on time and delivered significant financial savings,” Coster says. “It is the depth and breadth of our platform that is one of our key strengths.” The Estate Agent ❘ April 2016

Safety

Alone at opens can be a risk Real estate agents frequently deal with strangers, but vigilance and precautions can avoid danger in the workplace

ike all industries, real estate is not without risks. Agents, particularly women, need to be aware of potential dangers in the workplace, especially when conducting inspections. Sabina Aldouby, Director of Luxe Property in South Yarra, and Josie Stewart, Director – Residential Property Management with DCK Real Estate of Bendigo, agree that while both women and men have been on the receiving end of violence at work, females are “an easier target”. More women than ever before are in the industry now and it is the nature of the work that sees agents often alone at clients’ properties or with prospective buyers and renters, leaving them vulnerable to risk of harm. WorkSafe Victoria says anecdotal information suggests assaults – both physical and sexual – happen within the real estate industry, but are often unreported. Just last year in Bendigo, an incident left a female real estate employee shaken. She expected to meet one male on a visit to a local property and, instead, another male was waiting inside too. Quick thinking on her part saw her escape. In particular, the 2005 murder of

Vigilant: Josie Stewart says the “safety message” needs constant reinforcing.

Melton agent Lorelle Makin heightened awareness of this issue. However, Aldouby and Stewart say the ‘safety message’ needs constant reinforcement. Aldouby says her agency has always placed a high priority on personal safety, to the point where female staff have even undergone self-defence training.

“We are a little luckier in the areas in which we work but we are also very aware of what can happen which is why we constantly use internal training around the issue,” she says. “It is quite usual for a female agent to meet a client on her own – clients want advice on a range of things such as business and residential property, rental returns and investment. Naturally we go to properties where we meet people we don’t know. “You need to trust your intuition. Certainly the infrastructure of property management doesn’t always allow us the luxury of sending two people to every inspection. But if someone feels uneasy about an appointment and doesn’t want to go on their own, then absolutely, we would send two people. “Our employees must be aware, cautious and keep in communication with the office, making sure we know where they are.” All Luxe Property staff have an emergency app on their phones, all appointments are recorded in calendars and staff must check in at the end of the day to ensure they are safe. Regular training on how to handle potential risks is undertaken and safety is a priority in the firm’s policy and procedure manual.

Where to get advice on risk management A range of support avenues are available to help REIV members manage risks in the workplace, including several phone apps. Apps available include propertyVIEWlive, which can be downloaded for free and features a discreet safety alert button. Help Me (pictured) is another app popular with agents, which allows for a distress message to be sent to up to five chosen contacts as well as activating the video recorder on to capture the situation.

The Estate Agent ❘ April 2016

The REIV also runs a Risk Management course which focuses on three key areas of concern – the office, out-of-office and vehicles used during work hours. Course components include identifying risks and implementing strategies to limit risk. WorkSafe has also developed a publication (also pictured) to help the real estate industry to identify “out-ofoffice work hazards”.

Safety

door to greet people and let clients walk in front of you; and when completing an inspection/condition report alone, close the door behind you and lock it to make sure you are secure inside the property.

‘Our industry is generally made up of younger property managers who at times think they are invincible. It is so important to be aware’ – Sabina Aldouby

On alert: Sabina Aldouby says her agency has always placed a high priority on personal safety.

Aldouby advises agents attending inspections to familiarise themselves with their surroundings before beginning inspections; stand at the

“Our industry is generally made up of younger property managers who at times think they are invincible and that nothing will happen to them,” she says. “It is so important to be aware and be prepared to ensure we are protected at all times.” Stewart says the tragic death of the Melton agent certainly “heightened” awareness across the industry with many agencies, including her own, developing procedures to protect

employee safety. However she is still concerned that many employees have become complacent and ignore advice about taking precautions. “In my 23 years in the industry, I have only experienced two situations where I felt my safety was compromised,” Stewart says. “But I’m aware of other incidents that have affected other women and men.” Stewart suggests procedures and policies be developed for the industry as a whole and then modified to suit individual workplaces. “And we need to ensure the awareness and importance of these are regularly applied and followed by all employees. “It is easy for people to become complacent and not follow safety procedures, but that’s when their individual safety is potentially compromised. “We really need to do all we can as an industry and individuals to ensure we can all perform our duties in our roles and feel protected and safe.”

The Estate Agent ❘ April 2016

History

Still at top of the game 80 years on Institute continues to provide united voice for the industry

he Real Estate Institute of Victoria will mark a significant milestone this year – its 80th anniversary. The Real Estate and Stock Institute of Victoria was formed on 15 July, 1936, and while the name may have changed over time, the aim of the Institute has remained constant and is still relevant today. The REIV – renamed from RESI in 1985 – has been the peak professional association for the Victorian real estate industry for the past 80 years and today represents more than 2000 member agencies from across the state. The Victorian real estate industry has always been collaborative with formative groups representing Melbourne and regional agents before the establishment of RESI in 1936. One of these was the Auctioneers and Estate Agents Association of Victoria, formed in early 1886, although its

membership was predominantly Melbourne-based. This was followed by key regional branches in the early 1900s. The Ballarat branch was established in 1910 and Geelong followed two years later although the latter was an independent body. The Bendigo branch was formed in 1941. These formative groups were influential in forging early legislation with laws to oversee the sector introduced through the Estate Agents Act in 1922. While there was no requirement for agents to be formally trained, these early member associations recognised the need for a real estate qualification. A course of lectures in capital cities was later prescribed, upon the incorporation of the REIA. After many different industry associations and branches, the Estate

Agents and Auctioneers Institute of Victoria and the Auctioneers Estate and Stock Association of Victoria amalgamated to become RESI. The first meeting of the “new” body was held on 14 August, 1936, under the leadership of inaugural chairman, Lloyd Davies. RESI’s aims were “to formulate and maintain ethical standards for the guidance of its members in their relations with each other and with the public; to afford a means of adjusting professional differences; to decide all questions of usage or courtesy in connection with the profession; to protect and promote the neutral interest of its members; to suppress dishonourable and unprofessional conduct or practices; and to improve the status of real estate agents, auctioneers and stock agents generally”. This objective remains relevant today.

Glimpse into past provides foundation for future

1956 September

1966 December

New headquarters

Training for the future

Bringing the industry together

The Estate Agent ❘ April 2016

History

RESI membership at its inception comprised members (individual, partnerships and companies) eligible by way of licence and for those in good standing with the two previous amalgamated bodies. Much like today, members were required to make a formal application for admission before being assigned to branches according to their geographic location. Initially, women were a rare breed in the industry with Kate Gardner of K Gardner & Lang the first female principal in Victoria. However, it wasn’t until 1987-88 that a woman took the reins of the Institute as President, through Di Baker, Managing Director of D Baker Pty Ltd. While the industry has experienced substantial change over the years, the change in gender balance has been one of the most significant. In 1984, RESI and the Real Estate Agents’ Association (of Victoria) merged and as a result the combined association’s name changed to the Real Estate Institute of Victoria on 1 July, 1985. The name change was designed to better reflect its new role and combined membership. It was fitting that the REIV’s inaugural President was Noel Allen, who years earlier had attended the first RESI meeting in 1936. Under its new name,

1976 November A wealth of information

REIV’s major milestones 1936 The Real Estate and Stock Institute of Victoria founded

1985 Name change to Real Estate Institute of Victoria

1987 First female REIV President, Di Baker

1988 REIV hosts FIABCI the organisation has continued to achieve many important milestones for the industry, guiding members through the challenges of the new millennium. In 1988, the REIV attracted worldwide attention when it hosted the international FIABCI conference. In the same year, it moved offices from Powlett Street in East Melbourne to its present location at 335 Camberwell Road, Camberwell and introduced REIV Chapter Committees. Training has been another central function of the REIV with an external real estate course first run in 1950 and prerequisites to obtaining a real estate licence implemented around 1970. This initial licence involved completing a two-year prescribed course and satisfying the statutory Estate Agents Board, or three years’ full-time experience as an Agent’s Representative during the four years immediately preceding application. Recognising the importance of acknowledging the achievements of its members, REIV took part in the inaugural Australasian Senior Auctioneers Competition in 1993 with Victorian members well represented among the winners - Peter Batrouney (1995), Peter Hawkins (1997), Michael McCarthy (2001), Peter Kakos (2003), Justin Long (2005) and Harry Li (2015). Earlier, in 1964 the REIV launched a Novice Auctioneers’ Competition, with Malcolm Gray the inaugural winner. The annual REIV industry awards were launched in 1995, and in 1998, the Victorian Senior Auctioneers Competition started with Adrian Butera the inaugural winner. The REIV continues to represents its

1993 REIV participates in the inaugural Australasian Senior Auctioneers Championship

1995 REIV Industry Awards launched

2001 realestateview.com.au launched

members at all levels of Government and in 2000, successfully lobbied for the ‘Stamp Out Stamp Duty’ campaign and more recently, commercial licensing and price quoting. At present, the REIV is heavily involved in multiple Government reviews of legislation including the Residential Tenancies Act and Estate Agents Act. Technology has revolutionised the industry with the REIV keeping pace with change, launching realestateview. com.au in 2001, electronic Property Data in 2002 and online Property Data in 2003. In 2000, there were 983 agency members and this year the number has grown to 2228. Licensed agents have risen from 1540 in 2000 to 3038 in 2016 and representatives from 1077 to 1792. Other major milestones have included being granted RTO status and running specialised courses for Agent’s Representatives and Estate Agents; the review and implementation of the new REIV Constitution in 2002 and 2014; the re-alignment of REIV Division Boundaries; establishment of the Charitable Foundation; rebranding of the REIV logo; and CPD introduced as part of REIV membership. The REIV importantly provides a united voice for the industry as well as embracing a philosophy of improving knowledge, education and training for its members. A key role is also to respond both financially and politically to deliver services to members. The Institute continues to be proactive to achieve the best possible outcomes for the industry, dedicated to its mission: “To lead and represent the real estate industry and advance the professionalism of members”. The Estate Agent ❘ April 2016

History

Family legacy: From left, John William Allan Simpson, Darrell Simpson and his son Richard Simpson of the real estate agency WB Simpson & Son.

Simpsons keep it in the family Since it was opened in 1872, the North Melbourne firm has been a part of the same family for five generations

eal estate was the main topic of conversation around the dinner table when Darrell Simpson was growing up. It would be stating the obvious to say real estate is in his blood, with a business that spans five generations of the one family. WB Simpson & Son is an institution in North Melbourne, servicing not only that suburb but nearby West Melbourne, Flemington, Kensington, Carlton and Parkville, with Darrell and his son Richard now principals. It all started with Darrell’s greatgrandfather, William B Simpson, who opened a real estate business in Collins Street, Melbourne, in 1872 called WB Simpson & Son. Back then, real estate mainly involved collecting rents and debts, with the odd house sold. Melbourne experienced a population boom in the 1850s and William obviously saw an opportunity to be involved in that growth. The “Son” in the business name was John William Allan, known as William, who partnered and then succeeded his father. When young William set out on his round of collecting rents, he wasn’t to know that the daughter of one of his tenants would later become his wife.

The Estate Agent ❘ April 2016

By 1927, William’s son Allan (Darrell’s father) joined him in the business, later followed by son Jack. The staff moved into an expanded property on the other side of Victoria Street in 1934, before moving to 30 Errol Street, North Melbourne, four years later.

‘I would come into the office after school and in my university holidays. It was inevitable that I would end up in the industry’ – Darrell Simpson “I would come into the office after school and worked there in my university holidays,” says Darrell, who has a commerce degree. “It was inevitable that I would end up in the industry.” William remained active in the business for many years, still going into the office until he died, aged 95. Darrell fondly remembers a photograph of his grandfather on the front page of The Herald newspaper playing golf at 91! Darrell became a partner in 1966 with the fifth generation of the family – Darrell’s son Richard – joining the firm

15 years ago. Richard is an accountant and now member of the REIV Board of Directors. Allan Simpson was president of the REIV in 1949-50, Darrell following in his father’s footsteps from 1978-79. His involvement today continues through membership on the Valuations Committee. When Darrell reflects on the industry he has loved since he started more than 45 years ago, he cites the significant increase in values and rents, compared with inflation, as one of the most interesting changes. A North Melbourne house back in 1977 was valued at just $30,000. “The sociological changes have also been enormous,” he adds. “North Melbourne and other inner Melbourne suburbs had a huge amount of overseas migration from Europe in the ’50s and ’60s. “Now we have seen a change from small business, manufacturing and warehousing to where developers are converting these into residential properties or demolishing them to build medium-rise apartment blocks.” One thing is certain though, it’s a “fantastic” industry to be in, says Darrell. “It is always stimulating, always changing and always interesting.”

History

Bartrop maintains link with Ballarat Agency still has a connection to its founding family after 85 years of operating in the gold-mining town

he history of Bartrop Real Estate in Ballarat can be traced back to the late 1800s in the halcyon days of the gold-mining boom. While Edgar Bartrop established his business at 54 Lydiard Street, South Ballarat in 1930, the premises had housed a real estate agency since 1878. One-time mayor of Ballarat, William Little, purchased the address after taking over the estate agency business of Ballarat’s first licensed auctioneer, James Oddie, often termed “the Father of Ballarat and its property sector”. However Edgar’s foray into real estate began in 1921 when he started his own business in a two-roomed office along the road at 22 Lydiard Street. Historic documents note his “irritation” at having to obtain an Estate Agents Licence following legislative recognition. Business was looking up and Edgar soon purchased the Ballarat office of

G Morris at 35 Lydiard Street. He later acquired two more agencies – Estate Agencies of Ottaway and Blomeley and Blomeley. Then, in 1930, he seized on an opportunity to purchase the business of Estate Agency of H J Dunston (who took over from William Little) at 54 Lydiard Street and then later the freehold of the building. The business continued to expand with Edgar supporting Ballarat’s first Ideal Homes Exhibition, the first Contrast Home Show and setting up an active Home Building Service.

‘Back when I first started, people were keeping the same family home … These days there is greater mobility and change’ – Bruce Bartrop

Historical connection: From left, grandson Thomas Reardon, Bruce Bartrop and Tim Etchells.

Son Bruce joined his father in 1953 when he was in his teens. “It is a decision I have never regretted,” Bruce says. One of three children, Bruce left school at 16 and was employed as the “office boy”. “That’s what you did back in those days,” Bruce recalls. “Every business in the street had an office boy who emptied the bins, lit the fires in the winter, ran the errands and did anything else needed.” Young Bruce studied for his Estate Agents Licence and attended the Valuer’s Institute, as it was known then. Bruce became managing director in 1964 but Edgar remained in the business until 1989, still going to work in his 80s. The firm’s expertise in real estate, auctioneering and property valuation in the Greater Ballarat area has been widely acknowledged. “Over many years, we have had the privilege of acting, and in a continuing capacity, on behalf of a number of Governments, semi-Government, statutory, public and other bodies as well as a residential service,” Bruce says. Members of the firm have always been active in the real estate industry, not only through Ballarat’s REIV Branch but the Victorian and Australian bodies as well as the International Real Estate Federation. Edgar was a founding member of what is now the REIV while both father and son are past presidents and Life Members. Bruce, whose involvement in real estate now exceeds 66 years, says the industry is “incredible rewarding” and still interesting despite major changes. “Back when I first started, people were keeping the same family home for life and then selling it on to the next generation. These days there is greater mobility and change.” Bruce says the market remains strong in Ballarat. “The expansion is incredible. It is exciting to see and take part in this development.” Although Bruce still goes into the office, the day-to-day running of Bartrop Real Estate is left to Tim Etchells, who joined the firm in 1983. Bruce’s grandson, Thomas Reardon, has inherited the “real estate gene” and joined the firm five years ago. So the Bartrop connection lives on. The Estate Agent ❘ April 2016

Profile

Morleys pass on the family baton I Four generations share this boutique agency and there’s no end in sight to its thriving tradition

t would hardly be a surprise if Glen Morley had an auctioneer’s hammer in his hands before he could talk. He was born into real estate and it was inevitable he would follow in the footsteps of his father and grandfather. And now the stalwart of the industry in Melbourne’s inner south has handed over the reins of the business to the fourth generation – son Matthew, who has been in the real estate profession

Founder’s son: R. H. Morley’s son George. The pair began an enduring family tradition which continues today.

The Estate Agent ❘ April 2016

for the past 28 years. “Four generations of one family business, handed directly down from father to son, is something to be proud of,” Glen says. Morleys boutique family agency spans 110 years, founded in 1910 by Robert H. Morley, just down from its current location at 103 Brighton Rd, Elwood, opposite what was then the cable tram terminus. R.H. was the manager and accountant for the A1 Mine Settlement, a small gold mining town near Woods Point. However, with that industry waning, he brought his wife and children to live in East St Kilda where there were more opportunities. He opened his new business and the family lived upstairs. “R.H. was a larger-than-life, jovial character who dedicated himself to the local community,” his grandson says. “He served as a councillor and Justice of the Peace, becoming an intrinsic part of the history and fabric of the local area.” When R.H. was stricken with rheumatoid arthritis and wheelchairbound, his son George took over the business in the early 1930s. He was only 21. “He was probably the more suited [to real estate] out of the five siblings,” Glen recalls. “The local area was booming after the Second World War, welcoming many immigrants from Italy, Poland, Greece and Russia. Dad had a special rapport with these emigres. He also continued the tradition of serving his community.” George and his wife Doris had three children – Margaret, Craig and Glen. Young Glen had his first taste of earning money when he worked part-time at the local garage, serving petrol. It ignited a spark for working that still burns today.

Profile

Rich history: Morleys founder Robert H. Morley was also a local councillor, pictured above (back row, second from the right) and below.

“I couldn’t wait to get out into the business world,” Glen says. It was an unwritten rule that before joining the family firm, you “earnt your stripes” working for someone else. So for seven pound 10 shillings a week, Glen worked as a junior for Buxtons Real Estate in Elsternwick, initially spending a lot of time sharpening pencils. “I didn’t even have a driver’s licence – I was only 17,” Glen recalls. “But I loved it. They opened a branch in Hampton and I was asked to run it so I took on the challenge.” After 18 months and ready for his next adventure, Glen returned to the family business in Brighton Rd. “I had done mostly managing and was dead keen to get into the selling side of the business,” he says.

It was not long before Glen had his first investment property … the start of what is still a passion. “It was a twobedroom, single-fronted weatherboard house on a pea-dodger of a block in Ripponlea,” he says. “I had no money but asked the local bank manager for a £4500 loan. He gave it to me, I cleaned it up, painted it and got someone to lay new carpet. Almost 12 months later, I sold it for £6500. That got me going. I learnt a lot by doing it myself and could see quite clearly what this industry was all about.” Then Glen’s career took another direction. Before settling down to married life, he set off for the United Kingdom by boat, disembarking at Naples because of bad weather and making his way to London. His father had organised a job

‘I didn’t even have driver’s licence – I was only 17 ... They opened a branch in Hampton and I was asked to run it so I took on the challenge’ – Glen Morley

for him with a firm of London land surveyors (real estate agents). Glen decided it was not for him, describing the agency as “a bit stuffy” and not keen to wear a bow tie to work. So he joined a development company client of the firm. “The developer had two blocks of flats sitting empty while waiting for permits,” Glen says. Continued on page 24

The Estate Agent ❘ April 2016

Profile

Over to you, son: (left to right) Morleys staff Linda Chadwick, Matthew Morley, Lucy Morley, Ally Wajcman, Glen Morley, Mark Oliver, Heather Whiting, Nicole Symeonidis. Glen Morley has passed on the family business to son Matthew, creating an unbroken four generations of Morleys running the agency.

Continued from page 23

“I offered him 20 pound a week to rent out as many as I could until he needed vacant possession. “Four were fully furnished and I spread items around to fill other flats. I knew enough people from the boat to fill them with short-term rentals.” A year-and-a-half later, the young entrepreneur felt it was time to move on so he sold his “business” to one of the tenants which was a great incomeearner for him and set off for Australia, via Jamaica, ready for the next phase in his career. “Everything seemed slow [in Australia] after what I had been doing in London so I turned to developing properties.” While father George concentrated on the day-to-day business, Glen built blocks of 12-14 one-bedroom apartments in the CaulfieldMurrumbeena areas, then sold them on to investors, many of them still managed by Morleys today. Ironically, many of the blocks were sold to Glen by a well-known agent, the late Bob White, the father of current REIV president Geoff White. In 1965, Glen married Joan and they had five sons. He bought 10 acres at Wheelers Hill when market gardens were being sold off, keeping a house block and horse block, then 24

The Estate Agent ❘ April 2016

subdividing the rest, selling them from the back of a truck. “The 1970s arrived and we were about to get into land subdivision when the recession hit so we focused on the core real estate business again,” he says. Glen’s passion for the industry is still evident today. His knowledge in residential, commercial and industrial real estate is widely regarded, so much so that in recent years, he has been a consultant to some of Australia’s major corporations.

‘Matthew has three sons and his youngest, Freddie, could sell iceblocks to the eskimos ... definitely the frontrunner!’ – Glen Morley The Real Estate Institute of Victoria has been a major presence in the lives of the Morley family. George not only served as REIV president but headed the REIA. Glen is a past president of the REIV Southern Branch. He is a strong supporter of REIV’s training programs in particular, believing it is important to “lift the image of the real estate agent in the market place”.

“One of the biggest transformations for me has been in technology,” he says. “Moving the bulk of our files online has really streamlined our operations.” He is also amazed at the increase in real estate values throughout the local area. Glen says he has learnt many valuable lessons on his career journey but one of the most important is to diversify from the mainstream. “It’s important not to have all your eggs in one basket; you become stale,” he says. These days, Glen still enjoys going into the office and especially loves to chat with long-time clients. However, he leaves the day-to-day running of the agency to Matthew. “Matthew is a fully licensed real estate agent and auctioneer, and has great managerial skills in running a professional boutique agency,” Glen says proudly. A long-time Rotarian, Glen is also immersed in community life. When he’s not watching “South Melbourne” (Swans) play or having a game of golf, he dotes on his 15 grandchildren, confident there will be a fifth generation running Morleys one day. “Matthew has three sons and his youngest, Freddie, could sell iceblocks to the eskimos … definitely the frontrunner!”

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The Estate Agent ❘ April 2016

Market Update

Popular: Auction numbers remained at record highs in both November and December with multiple national records falling.

Melbourne turns down heat Auction numbers continue their hot run, but metropolitan house price growth slows after a year of strong results

fter four successive quarters of growth, Melbourne’s property market moderated in the last three months of 2015. Driven by a high proportion of sales in the city’s outer suburbs, metropolitan Melbourne’s median house price fell marginally in the December quarter, down 0.1 per cent to $718,000. Auction numbers remained at record highs in both November and December with multiple national records falling. The last weekend in November surpassed the previous record, set in October 2014, for the highest 26

The Estate Agent ❘ April 2016

number of auctions held on a single day and week. A record 1682 homes went under the hammer on Saturday, November 28, with 1749 auctions held over the week. November 2015 was also the strongest auction month with

Metropolitan Melbourne’s median house price fell marginally in the December quarter, down 0.1% 5778 auctions held, 368 more than the previous record set in November 2014. House prices in Melbourne’s outer ring saw the strongest growth in the

three months to December 31 with the region’s median house price increasing 2.9 per cent over September figures to $559,000. Suburbs more than 20km from the CBD also dominated the top growth list with Warrandyte and Greenvale recording the state’s highest quarterly price increases, up by 19.1 and 17.8 per cent respectively. Other affordable suburbs seeing double-digit price growth in the last three months of 2015 were Sunshine, up 17.3 per cent to $645,000; Frankston South, up 12.4 per cent to $682,250; Hillside, up 11.8 per cent to

Market Update

$534,000; and Werribee, up 11.6 per cent to $357,000. Growth was also recorded in Melbourne’s desirable inner suburbs, where the median house price rose 1.3 per cent to a record high of $1,252,000. The region saw the highest annual growth in 2015, up by a significant 17 per cent. The city’s inner ring remains home to nine of the city’s most expensive suburbs including Toorak ($2.84 million), Canterbury ($2.432 million), Malvern ($2.23 million) and Kew ($2.14 million). Meanwhile, prices in the city’s middle ring declined in the December quarter, falling 2.2 per cent to a median house price of $837,000. The number of million-dollar suburbs continues to grow with eight Melbourne suburbs entering the

Melbourne’s outer ring was the main driver of this growth with the median unit price increasing 3.2 per cent to $425,000 million-dollar club for the first time in the December quarter, bringing the total to 92 suburbs. First-time entrants included Sorrento, Parkville, Hampton East, Parkdale, Research, Brunswick East, Thornbury and Rosanna – all recording medians of $1 million or higher. Five other suburbs – East Melbourne, St Kilda West, Middle Park, Flinders and Warrandyte – also rejoined the milliondollar list in the latest quarter. Unit and apartment price growth was widespread across the city with the $537,500 median up 1.6 per cent on the previous quarter and 5 per cent in the 12 months to December 31. Melbourne’s outer ring was the main driver of this growth with the median unit price increasing 3.2 per cent to $425,000 while middle ring suburbs rose 1.8 per cent to $596,500. Suburbs showing strong apartment price growth over the quarter included Coburg with a 17.1 per cent increase; St Kilda, up 16.5 per cent; and Prahran, up 14.9 per cent. Apartment prices in Brighton East rose 8.6 per cent in the December quarter to a median of just over $1 million – most expensive in the city.

In good company: The number of million-dollar suburbs continues to grow with 92 in the illustrious club.

Regionals set pace for price growth Regional Victoria was the state’s main growth driver in the December quarter, up 2.2 per cent to a median house price of $353,000. Units also saw price growth in the last three months of the year with the median price increasing 2.3 per cent over September figures to $268,500. The commuter town of Seymour recorded the highest quarterly growth, increasing 16.8 per cent to a median house price of $219,000. This was up from $187,500 in September. Double-digit quarterly growth was also seen in Maldon, up 13.5 per cent to a median of $339,500; Moe, up 10.9 per cent to a median of $173,000; and Brown Hill, up 10.7 per cent to $335,000. Hepburn Springs was the bestperforming town over the full year with the median house price there increasing 26.9 per cent to $425,000.

House prices in Portland rose 23.9 per cent over the year to a median of $277,500 while Daylesford saw similar growth of 20 per cent and a median of $450,000. Other areas seeing significant annual growth included Horsham, up 19.3 per cent to $250,000; Waurn Ponds, up 19 per cent to $487,750; and Canadian, up 18.4 per cent to $356,500. Coastal areas commanded some of the state’s highest median house prices with Lorne and Barwon Heads both recording median house prices above the metropolitan Melbourne median. Lorne’s median house price reached $860,000 in the December quarter while Barwon Heads has a median of $795,000. Other regional centres with median house prices comparable to their city counterparts are Lake Wendouree ($670,000), Jan Juc ($635,000), Woodend ($630,000) and Anglesea ($630,000).

Country retreat: The median house price in regional Victoria was up 2.2 per cent to $353,000.

The Estate Agent ❘ April 2016

Agents

Buyer’s agents hint at the real deal More and more buyers are getting professionals to act on their behalf as advocates help level the playing field

he presence of a buyer’s agent at an open for inspection or on auction day sends a strong message to the agent acting on behalf of the vendor – there’s very likely a qualified purchaser in the mix. It’s a welcome moment, but it wasn’t always seen that way. At times, the relationship between buying and selling agents may not have been as close and interactive, as it is today. With a significant rise in both the number of buyer’s agents and the number of people using them during a property purchase, a stronger relationship has emerged leading to a system that is working effectively for both buyers and vendors. Buyer’s agents are a relatively new profession. Ian James, director of JPP

Buyer Advocates in Paterson Lakes, has been working as an advocate for the past 14 years. “I worked as a selling agent before so I know both sides of the coin,” he says. “Personally, I think it’s ridiculous that both parties aren’t represented in a property purchase. The vast majority of people don’t know much about real estate – they may buy anything from one to three properties in their lifetime. “The selling agent is legally obligated

‘The selling agent is legally obligated to act in the best interests of the vendor – so buyer’s agents can level the playing field’ – Ian James

to act in the best interests of the vendor – so buyer’s agents can level the playing field.” James says it wasn’t that long ago that buyer’s agents were regarded as pariahs in the industry. “When we started in 2001 we were the magicians letting out the secrets, which didn’t go down well. Some selling agents wouldn’t deal with us and others didn’t take us seriously.” It took ‘a buyer’s market’ to change the industry perception about the role of the buyer’s agent. The vast majority of selling agents now recognise that when there’s a buyer’s agent on the other side, deals get done that perhaps wouldn’t have been, because we have an informed buyer.” James cites a case of assisting a client who spent all of 2014 looking to buy in Glen Iris. “Literally, he was always looking at properties he couldn’t buy. Finally, a selling agent said, ‘Go and see Ian’. Six weeks after he signed with me, he bought. We helped him think outside

Shifting landscape: There has been a significant rise in both the number of buyer’s agents and the number of people using them during a property purchase.

The Estate Agent ❘ April 2016

Agents

the square; some buyers need to hear they have to change their budget or accept an unrenovated home. The selling agent would see him roll up at yet another open for inspection and know he didn’t have the money to buy that house, but they couldn’t help him.” James says his business has changed over the years, including downsizing in 2011. While there is very little information on the percentage of buyers using an advocate, James estimates it would account for between 2 and 10 per cent of the market. “Anecdotally, we probably represent buyers in about 5-7 per cent of purchases over $1 million.” The relationship between buying and selling agents has undergone a major shift, he says. “Selling agents are very, very professional when I roll up to an auction, they realise they have an informed buyer at the property, unless I’m just there to observe, which I tell the auctioneer straight up,” he says. “In some deals, where there’s an unsophisticated buyer, the selling agent will have no chance of moving them. We’re able to negotiate for deals at a level where everyone is happy.” Kim Easterbrook, of Elite Property Advisory in Brighton, turned her self-confessed “total obsession with property” into a career in 2011. The former accountant bought her first property when she was 21, before going on to build a portfolio. Over the past four years, Easterbrook’s business has grown dramatically to encompass a team of nine. “We’ve seen about 15 per cent growth each year which is due to us getting our name out there but also growing demand for buyer’s advocates,” she says. “I’m seeing a lot more advocates at auctions now.”

Experts: Clockwise from top, Cate Bakos believes any advocate entering the industry needs to “earn their stripes” with selling agents; Ian James says the relationship between buying and selling agents has undergone a major shift; and Kim Easterbrook says the relationship with selling agents is on a heightened level of appreciation.

Savvy and first-time buyers alike are using Easterbrook’s services. “People are time poor and there are a lot of uncertainties among buyers,” she says. “They’re trying to work out what type of property they buy, what they can spend. In this rising market, there are a lot of frazzled buyers out there. Adjusting client expectations can be quite difficult and there are lots of people who can’t give themselves a reality check. We do it for them.”

‘There’s definitely mutual respect; we both recognise we have the best interests of our clients in mind’ – Kim Easterbrook

Easterbrook says the relationship with selling agents is on a heightened level of appreciation. “They know we’re not there to waste their time; all our buyers are highly qualified and we only take them through properties they can buy,” she says. “That’s led to very good relationships with selling agents. They’re more transparent with us and happy to work with us. Having said that, they’re tough to deal with in a negotiation. It’s a bit of a sporting match; we both play a hard game and once it’s over, we go out for a beer. “There’s definitely mutual respect; Continued on page 30

The Estate Agent ❘ April 2016

Agents

Continued from page 29

we both recognise we have the best interests of our clients in mind.” The biggest issue for buyers and their agents in the current market is lack of stock. “With the lack of quality stock on the market, I think it’s essential for buyers to get representation.” Former mortgage broker Cate Bakos, who runs her eponymous consultancy out of Yarraville with business partner Amy Mylius, has been in business for just over four years. A trained chemist, Bakos left behind her lab coat in 2003 to go into property sales. “My interest was as an investor,” she says. “My first property purchase was at 21. It was an enormous leap of faith to leave what I was trained for to go into a sales role paid by commission.” Bakos says she takes an analytical approach to property. “I like to look

‘If we were to have an “us and them” culture, we definitely wouldn’t get the best from the – Cate Bakos relationship’

with an investor’s eye and that’s not really suited to being a selling agent,” she says. While buyer’s agents are becoming more commonplace, Bakos believes any advocate entering the industry needs to “earn their stripes” with selling agents. “That’s in terms of respect; most of them now recognise that we’re not there to ruin their campaign or drive a hard bargain for their vendors,” she says. “We’re there to help our clients get the right property for the right price

and we’re respectful of the fact that they have a vendor to look after. “Once you gain their trust, it’s a fantastic relationship. They help us out; they give us the heads-up on offmarket opportunities. They recognise that when they do a deal with us the chances of the buyer rescinding or finance not working out is minimal. It may not be 100 per cent, but it’s as close to a sure thing as you can get.” Bakos says a key development in her relationship with selling agents is giving opinions on hard to appraise properties. “It’s a two-way street, they can bounce ideas off us and we can help them with listings, given we don’t have to buy everything they offer. “It’s a collegial atmosphere. If we were to have an ‘us and them’ culture, we definitely wouldn’t get the best from the relationship.”

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The Estate Agent ❘ April 2016

REIV Gold Sponsor

Case Study

Spotless records come into play Property management paperwork vital in personal injury cases. By Nancy Rainbird, Realcover’s Claims Manager Facts The plaintiff was an invitee of the tenant and issued District Court proceedings. She alleges that a wooden stairway which led from the back of the house to the pool area was defective, dangerous and unstable. She alleges she was walking down the stairs when she slipped, fell and suffered injury. Owners were co-defendants together with the agent, who was listed as the third defendant. The key issue against the agent was the allegation that the tenants had reported the condition of the stairway to the agent and the agent had failed to carry out repairs despite the tenant allegedly reporting the condition of the stairwell “on numerous occasions”.

Defence The agent denied ever having received any complaints about the condition of the stairs and could prove the key issues to the defence, being: ❚ Regular inspections. Thoroughly documented and copies of all routine inspection reports were sent to the owners. ❚ Very detailed file notes as to every phone call with the tenant. During the course of the case, the tenant was asked to particularise all dates when such complaints were allegedly made. Those dates coincided with contemporaneous and detailed notes of the conversation the agent took of all calls. The notes revealed that the only issues that were discussed had to do with the tenancy – and never about the stairwell. The claim was successfully resisted due to the excellent record keeping by the agent.

End Result Verdict in favour of the agent. Owners insurance settled on Terms Not to be Disclosed basis.

Tips for Property Managers ❚ F ollow up on all requests

for maintenance. Pass this on to the owner and recommend the use of experts for suspect structural areas. ❚ Complete paperwork and documentation is the key for a successful defence in any court proceedings so make sure it is in writing or detailed file notes are kept. ❚ Place liability back to owners when they refuse to invest in repairs

and/or maintenance by recording your recommendations in writing. ❚ Ensure owners, contractors and handymen all have their own public liability insurance so it does not come back on your own professional indemnity policy. Make sure all certificates of insurance are updated annually. ❚ Stick to your scope under your Management

Agreement – you are not accountants and/or tax advisers – all owners should make their own enquiries and ascertain their liability for land tax and statutory charges. ❚ Make use of the modern technology that now exists to protect you against a claim and manage your risks by investing in the updated software.

Disclaimer: While care has been taken in preparing this article, and the information in it has been obtained from sources that Realcover believe to be reliable, Realcover does not warrant, represent or guarantee the accuracy, adequacy, completeness or fitness for any purpose that the article may be used. Realcover accepts no liability for any loss or damage (whether caused by negligence or not) resulting from the use of this article. For a quote for Realcover call 1800 990 312 or email realcover@jlta.com.au

The Estate Agent ❘ April 2016

Trusts

Knowledge you A sound understanding of can trust in the bottom line will help with times of need trust accounting

ighly regulated by Government and subject to annual auditing, trust accounting is an important part of the day-to-day running of a real estate business. Agents hold money in trust accounts on behalf of clients until the funds are needed to complete a sale or transaction. These can represent a range of transactions including sales deposits, rents, advertising or maintenance fees paid in advance and owners’ corporation fees. Trust accounting specialist John Collings says many large agencies now have a full-time trust accountant in-house. “However a lot of smaller agencies can’t afford this,” he says. “Smaller agencies sometimes get an administration employee or property manager to look after this side of the business but if they don’t have a sound understanding of accounting, it can be a struggle to manage the process. “If you are an agency that has a lot of money going through the trust account, it needs to be managed by someone who understands accounting. “If you are a director of such an agency, you also need to understand those reports you sign off on at the end of the month. Your licence is on the line and you need to be sure there are no irregularities and be confident in those reports.” Penalties for trust account breaches can be significant and may be up to 120 penalty units – which is currently the equivalent of $18,200. Any abuse

‘Your licence is on the line and you need to be sure there are no irregularities and be confident in those reports’ – John Collings 32

The Estate Agent ❘ April 2016

Numbers man: Trust accounting specialist John Collings works for Jambehl Investments.

of a trust account or trust account deficiency can result in suspension or termination of an estate agents licence. Due to the seriousness of the crime, this could also lead to legal action which could result in a jail sentence. Collings is unusual in that he has a solid understanding of real estate practice, having worked part-time in a real estate agency on the Mornington Peninsula when he was an accounting student. “I was doing my accounting degree when I was also asked, through a family association, to fill in at a local agency,” he says. “I did it for a month. Then three months later, the same person left

and I was offered the job full-time.” Collings put his accounting skills to good use and although he has “dabbled” in property management and sales, he has always specialised in trust accounting. In the early days of his career, everything was done manually. “It was very busy,” Collings recalls. “Especially when you had holiday bookings coming in and out weekly. And at the end of the month, I had to balance, reconcile and ensure everything was correct. There were no computers to help.” After stints in large agencies in Melbourne’s eastern suburbs and CBD, Collings set up his own consultancy business six years ago. He specialises in supporting agents who use RP Office software, helping with trust accounting but also in-staff training and other projects. “RP Office is a specific computer program that manages the whole trust account process – looking after money coming in, while it’s sitting in the trust account and then when it is being distributed,” he says. Collings, who works for Jambehl Investments, has a long association with the Real Estate Institute of Victoria, going back to 1987 when he became an Agents’ Representative. Under regulations set out by Consumer Affairs Victoria, agents must have their trust accounts audited each financial year by a CAV-approved auditor. The audit report must be lodged with CAV by agencies within 10 business days of receiving it from the auditor and within three months of June 30. As part of the annual auditing process, agencies are required to provide the auditor with all books, papers, accounts, documents, securities, statements and reports necessary for the audit.

Best Practice

Protect clients and yourself PPSR vital for commercial agents. By Commercial Lawyer Philip Sheezel

I ❚

❚

f you are an estate agent involved in commercial leasing, I strongly recommend you: Advise your landlord clients to register their “security interests” on the national Personal Property Securities Register (PPSR). Such interests include security deposits, landlord’s chattels, landlord’s installations and fit outs. If they are not registered your landlord clients could lose their property if their tenant goes into liquidation. The tenant’s liquidator would be able to seize their property and use the sale proceeds for the benefit of the tenant’s creditors. Even if your client does not wish to register their security interests on the PPSR, you should send them a letter explaining how the PPSR can protect their interests or, at the very least, make a file note confirming you have explained the risks if they do not register. In that way, you protect yourself from a claim of negligence if your client ultimately loses their property because they did not register. Ensure your PPSR registrations are completed correctly and on time otherwise you run the real risk of the

registration being ineffective. Make sure your commercial leases include up-to-date PPSR and security deposit clauses that clearly spell out the landlord’s rights and remedies in the event of the tenant’s default. I recommend agents register all existing leases that contain security deposits arrangements of more than $10,000 – even if they do not contain the most up to date PPSA clauses. While there may be risks if the registration is ❚

The case highlights the need for landlords to register their security interests in security deposits on the PPSR

after 20 days of execution of the lease, the landlord is still better off than not registering at all. When a new lease is executed, or the old one renewed, you should take the opportunity to add appropriate PPSA and security deposit provisions and arrange for a new PPSR registration to be made. A recent case highlighted some problems agents face when acting for landlords in commercial lease

situations. The agent used the security deposit held in an interest earning account to pay outstanding rent after the tenant company was put into liquidation. The liquidator of the tenant company sought the return of the monies arguing that they were a security interest under Section 12 of the PPSA that “in substance secured the payment or performance of an obligation” – i.e. the payment of rent under the lease. The agent had not registered the tenant’s security interest and accordingly the liquidator claimed that the monies had vested in the tenant company on his appointment. The liquidator also claimed that the landlord had received an unfair preference against other creditors and foreshadowed a claim against the landlord and the estate agent for conversion, interest and costs. Sensibly the matter did not proceed to trial and settled on commercial terms. However, the case highlights the need for landlords to register their security interests in security deposits on the PPSR. Registration would have not only protected the landlord from the liquidator’s claim, it would have also avoided the substantial costs and time involved in defending such a claim. It would have also avoided any potential claim against the agent for negligence by its failure to register their client’s security interest.

Down to business: Registering landlord’s security interests on the PPSR will protect your client if the tenant goes into liquidation.

The Estate Agent ❘ April 2016

Events

Economic gurus to share their insights Attendees at the 2016 Commercial & Industrial Economic Forecast lunch will gain insight into the current economic environment and its potential impact on commercial real estate. This year’s event has been scheduled for June 10 at Zinc in Federation Square and will feature presentations by Terry McCrann and Nicki Hutley. A columnist and media commentator, McCrann has extensive experience in economics, business and finance. He has a solid understanding of the forces that drive development and is able to provide critical analysis of trends. With more than 25 years’ experience in the economic and financial sectors, Hutley provides macroeconomic forecasts for both global and domestic markets. Director of Economic Advisory at Urbis, Hutley was previously the

Expert views: Media commentator and columnist Terry McCrann (left) and finance whiz Nicki Hutley (right) will share their wisdom and insights into the current economic environment at a special lunch.

chief economist at KPMG and Access Economics. The annual event offers networking opportunities for attendees.

april

For more information:

email cpd@reiv.com.au or visit reiv.com.au/training

may continued

6th

Buyers Agent Chapter Breakfast

11th

North West Division Meeting (Essendon)

8th

Business Brokers Chapter Lunch

12th

North East Division Meeting (Greensborough)

13th

Sunraysia Division Meeting (Mildura)

13th

Young Agents Chapter Breakfast

15th

Gippsland Division Meeting (Traralgon)

24th

Property Management Knowledge Network - Geelong

21st

Murray Alpine Division Meeting (Wangaratta)

22nd

Goulburn Valley Division Meeting (Shepparton)

27th

Wimmera Division Meeting (Horsham)

28th

Otways Division Meeting (Warrnambol)

28th

Valuation Chapter Seminar

may

june 2nd

Property Management Lunch

7th

Bendigo Division Meeting

10th

C&I Economic Forecast Lunch

14th

Senior Auctioneering Competition – Heats

21st

Buyers Agents Chapter Breakfast

3rd

Southern Division Meeting

4th

Inner East Division Meeting

5th

Geelong Division Meeting

4th

Owners Corporation & Property Management Chapter Seminar (joint)

24th

Senior Auctioneering Competition – Final

5th

Mornington Peninsula Division Meeting

24th

Senior Auctioneering Gala Dinner

10th

South East & Eastern Division Meeting (Wantirna)

24th–25th

REIV Annual Conference

july

Please note: The listed courses, dates and times in this schedule are subject to change or cancellation at the discretion of the REIV.

The Estate Agent ❘ April 2016

Training

Courses boosted for demand Extra dates scheduled to help commercial agents, property managers and business brokers explore their expertise Commercial courses Due to growing demand, the REIV has increased the frequency of its six commercial training courses with additional dates added in 2016. The REIV’s specialised commercial courses provide agents with in-depth knowledge of the sector, exploring the complexities of selling and managing commercial property, which differs greatly to the residential market. On offer are four property management-focused courses, which cater to the increasing number of residential property managers handling commercial buildings. These are Administration of the Commercial Lease; Applying the Commercial Lease Process; Commercial Property Management Fundamentals; and How to List Commercial Property for Lease. The two sales-driven courses – Commercial Property Sales Documentation & Formalities and Commercial Property Sales Fundamentals – develop the technical knowledge, legislative requirements, skills and professional standards expected from commercial agents. The REIV’s fundamentals courses are the most popular in the commercial training portfolio, allowing residential agents to transition into the commercial space. The commercial portfolio also allows for continuing professional development for practising commercial agents. While designed for agents, the REIV’s commercial training courses also appeal to developers, investors, accountants and financial advisers. Experienced trainer Wendy Thomson is highly regarded within the sector, heading up an agency specialising in the sale, lease and management of commercial property in both Victoria and New South Wales. Passionate about the industry, she has maintained an extensive clientele and network over many years. As a former board member and president of Sunraysia Institute of TAFE, Thomson

Learn and earn: REIV courses are valuable for agents, developers, investors, accountants and financial advisers.

has been involved with both the State and Federal Governments and has a solid understanding of commercial legislation. New business broking courses The REIV has expanded its business broking training portfolio to include three new Continuous Professional Development (CPD) courses. Designed for practising business brokers and agents looking to build their industry skills, the new training offering

Understand financial records to price a variety of businesses includes Pricing a Business; Market Property & Businesses for Sale; and Negotiate to Achieve Goals & Manage Disputes. The new courses are all halfday in duration, four CPD points and entail skill development as well as best practice. Pricing a Business enables attendees to understand financial records in order to price a variety of businesses. Upon completion participants will be able to

ascertain the financial health of a business, aiding in the way the business is promoted and valued for prospective buyers. Delivered by a qualified CPA, this course is ideal for practising business brokers, small business owners, valuers and developers. Market Property & Business for Sale details how to market all types of property and businesses effectively to gain sales. This includes gaining a marketing budget, developing a marketing plan, preparing marketing materials, implementing marketing activities and reviewing and reporting on marketing plans and activities. This course will appeal to sales agents, OIEC, small business owners and business brokers of all levels. As negotiation is a core skill for agents and business brokers, Negotiate to Achieve Goals & Manage Disputes short course will provide participants with communication techniques to maintain positive interaction and gain an effective resolution where possible. This course is suitable for all agents in the property industry. The Estate Agent ❘ April 2016

Events Training

Courses vital to industry’s standards, performance Continuing Professional Development (CPD) is central to increased professionalism in the industry and is a component of REIV membership – a key point of difference for REIV members. To strengthen industry standards and performance, members are required to undertake learning and skill development throughout their real estate careers, accruing 48 CPD points every three calendar years.

The REIV CPD program recognises both formal and informal learning opportunities with a range of training courses, events and seminars on offer. In addition, agents can apply to have external training recognised. Upcoming CPD courses are outlined below, with members able to register for these programs online at reiv.com.au

April

may continued

Residential Property Management

26th

6th

9am–5pm

Intermediate Residential Property Management

9am–5pm

Advanced Residential Property Management

11th–14th

9am–5pm

Job Ready – Residential Property Management (4-day course)

6th

9am–5pm

Advanced Owners Corporation

21st

9am–5pm

Preparing for and Presenting at VCAT

11th

9am–5pm

Introduction to Owners Corporation

Residential Property Sales

Bill Holloway Series 8th

9am–12.30pm

How to Prepare Compensation & Bond Applications

Auctioneering 18th

9am–5pm

Introduction to Auctioneering

Commercial 19th

9am–5pm

Applying the Commercial Lease Process

Business Broking Fundamentals (2-day course)

Owners Corporation 29th

9am–5pm

Intermediate Owners Corporation

may

9am–5pm

Understanding Business Finances

Residential Property Sales Documentation; Getting it Right

30th– 2nd June

9am–5pm

Job Ready – Residential Property Sales

Commercial 2nd

9am–5pm

Commercial Property Sales Fundamentals

17th

9am–5pm

Administration of the Commercial Lease

28th

9am–5pm

How to List Commercial Property for Lease

Bill Holloway Series

9am–12.30pm

Using a Breach Notice and Obtaining Possession

9am–12.30pm

How to Defend a Repairs Application; Injunctions & Pets

Property Management 6th–9th

Bill Holloway Series 5th

9am–12.30pm

3rd

Business Broking 3rd

25th

june

Business Broking 19th–20th 9am–5pm

Owners Corporation

9am–5pm

Job Ready – Residential Property Management (4-day course)

Auctioneering

Residential Property Management

9th

9am–5pm

Introduction to Auctioneering

5th

9am–5pm

Managing Risk in Estate Agency Practice

23rd

9am–5pm

Advanced Auctioneering

10th

9am–12.30pm

Residential Property Management Refresher

reiv.com.au –

your first source for REIV events in 2016

The Estate Agent ❘ April 2016

Member Training News

REGIONAL meetings REIV President Geoff White and CEO Enzo Raimondo will be visiting Victorian divisions in the coming months. The visits, between February and May this year, provide members with information on local markets as well as garner input on multiple Government reviews including the Estate Agents Act, Sale of Land Act and Residential Tenancies Act. The first three meetings have already been held in Geelong, Ballarat and Bendigo with a further 12 meetings planned for April and May. REIV President Geoff White says it is important that the Institute seek regular feedback from our regional members on REIV services as well as a range of industry issues. “The comprehensive legislative reviews currently underway will affect all Victorian agents, so feedback at every level is imperative to ensure our submissions are reflective of our membership views and needs.” A list of upcoming division meetings is available on the REIV website.

BRAINBEATS winners Four REIV members won tickets to the inaugural Brainbeats 2015 as part of an REIV member referral competition. To enter, members were required to refer at least two members to the REIV over the period of a month to go in the draw to win four double passes, valued at almost $800. The lucky winners were Jesse Needham, Linda Evans, Jonathan O’Donoghue and Vanessa Maher.

A good cause: Left to right, Father Bob Maguire, artist Gloria Ammerlaan and REIV CEO Enzo Raimondo at the Business Brokers lunch which raised more than $12,000 for the Father Bob Maguire Foundation.

Business Brokers lunch raises $12,000 for Father Bob charity The REIV’S Business Brokers Christmas Luncheon was a resounding success with more than $12,000 raised. Held at the Box Hill Golf Club late last year, the annual event was attended by more than 70 members and featured a wine-tasting competition and charity auction. Proceeds from the auction, run by Phil Defegely, were donated to guest speaker Father Bob Maguire’s foundation for homeless youths.

Established in 2003, the Father Bob Maguire Foundation aims to end homelessness and provide all children with a fair start to life. A Member of the Order of Australia, Father Bob has been feeding the homeless for more than 30 years. Auction items included Crown vouchers, Australian Open Tennis finals tickets, sheets, billboard advertising and weekend getaways to Bright in the Victorian High Country region.

Cubbies auctioned off to help homeless kids Three REIV competition-winning auctioneers have raised money for youth homelessness by auctioning off five architect-designed cubby houses at the Melbourne International Flower and Garden Show. Australasian Auctioneer of the Year Harry Li, Victorian Senior Auctioneer of the Year Tom Roberts and former Novice Auctioneer of the Year Luke Banitsiotis helped raise more than $100,000 for the Kids Under Cover charity. Li achieved the highest result on the day with The Relic (pictured) by Porter Davis Homes selling for $17,200. The Estate Agent ❘ April 2016

Obituary

A passion for family and life Industry stalwart and community leader, Vin Ketterer tried his hand at many jobs but real estate stayed with him long after he retired

he Bendigo community and, in particular, the real estate industry has lost one of its stalwarts with the death of Vin Ketterer late last year. Aged 90, Vin was synonymous with real estate in Bendigo and even though he retired 23 years ago, the name has continued through son Robert, the Managing Director of DCK – Dungey Carter Ketterer Real Estate. Vin is survived by his wife of almost 63 years, Elaine. Together they had five children – Tricia, Peter, Anne (dec), Geoff and Robert, who joined his father in the business in 1981, taking over when he retired. Robert delivered the eulogy at his father’s funeral, painting a picture of a man who not only loved his wife and family, but life. And although he retired from the business at 67, the “real estate bug” never left him, running clearing sales for the St Vincent De Paul Society and hosting garage sales with the “pinpoint precision” of the old days. Vin was born Joseph Vincent Ketterer to Catherine and Joseph on February 25, 1925, brother to four siblings. His parents were farmers in the Sebastian area. Not a great lover of school, he joined the Victorian Railways as a lead labourer at the Newport Workshops. It was while boarding with a family in Footscray that he became a life-long, avid Bulldogs supporter. Vin decided to leave and find something with better hours and pay. He worked at a soft furnishing manufacturer in North Melbourne and started an apprenticeship as a cabinet maker and furniture maker. However this career was cut short when his father died suddenly and Vin returned home to look after the farm, which was later sold at the end of the war. During these years he was very active in the local tennis and football clubs, taking on roles as president, secretary

The Estate Agent ❘ April 2016

Vin Ketterer February 25, 1925 – December 16, 2015 and treasurer. In 1949, Vin met Elaine Whitfield at a local dance before marrying three years later. Vin went on to be an agent for Colonial Mutual Life Insurance for three years, then area rep for Prudential

‘Many people thought he would go out of business ‘up there’ (next to the cinemas) but he proved them wrong’ – Robert Ketterer Insurance Company for a further two years before being bitten by the “real estate bug”. He held several roles at different agencies until opening his own business in 1961 in what was the old Princess Theatre Complex (now Rural Finance in View St, Bendigo) trading as Kett’s Real Estate. Two years later he moved to Hargreaves St, then to Mitchell St, a few doors from LL Dungey and Sons.

As well as running the agency, Vin also operated a retail electrical and secondhand business, moving his real estate business to there. “In 1986, he bought a house that was considered ‘out of town’ next to the cinemas,” Robert says. “Many people thought he would go out of business ‘up there’ but he proved them wrong, as well as opening an office in Shepparton.” Vin held many positions within the Real Estate Institute of Victoria during his long career, including president on two occasions and local delegate for nine years. According to Robert, “the real estate agent in him might have wanted to move often, but Mum kept his young family centred at Marshall Cres for 23 years. It was, after all, 100m to the school gate – essential for such a large family!” Vin retired in 1992, leaving the business in the hands of Robert who had worked with him since joining the firm at 18. Four years later, the agency merged with Dungey & Carter to become DCK, now employing 40 staff. After retiring, Vin and Elaine sold the family home with many weeks spent travelling around Australia in the late 90s. Vin loved poring over the Carters Antique Guide, trawling antique shops far and wide, adding to his extensive collection of crockery. His retirement also included plenty of golf. Over the years, Vin was also involved with Knights of the Southern Cross, St Therese’s School and the local Rotary Club, holding positions with most. He had a keen lifelong interest in woodwork and his garden. “I don’t think one member of his extended family doesn’t have something he made, repaired or tweaked on his workbench,” Robert says. And if anyone asked how he was, the familiar response would be: “Ahh, pretty good for an old fella.”

Oc, opo

TAKE CHARGE OF YOUR CAREER BECOME A LiCEnsEd EsTATE AGEnT

As a licensed estate agent you can act on behalf of a vendor, landlord, purchaser or tenant in Victoria to sell, lease or manage real estate or business. The qualification opens up a range of options and opportunities to develop your career prospects. The REiV offers flexible learning options to help you on your path to a successful career: • Choose from face to face or distance learning. Evening classes are also offered. • study while you work with evening classes or; study at your own pace with regular day time classes.

• Funding may be available from the Victorian Government to qualifying learners. • And most importantly, you learn from professionals working in the industry. The REiV believes in continually enhancing the skills and expertise of people working in the industry. We are focused on developing real estate professionals who command respect with their knowledge, skill and expertise. The REiV takes great pride in representing Victorian real estate professionals.

• Credit transfer and RPL (recognition of prior learning) allows you to benefit from your past experience.

Contact: Real Estate institute of Victoria 335 Camberwell Road, Camberwell ViC 3124 RTO 4042

training@reiv.com.au F 03 9205 6699 T 03 9205 6666 ABn 81 004 210 897 The Estate Agent ❘ April 2016

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