The Estate Agent - November 2018

THE JOURNAL OF THE REAL ESTATE INSTITUTE OF VICTORIA

REIV.COM.AU

NEW BOARD NEW PRESIDENT Diverse knowledge and expertise

THE ESTATE AGENT NOVEMBER 2018 VOLUME 83 NO.3

Business Security Seven ways to help stop workplace fraud

Election priorities

Self first is not selfish!

Training, less regulation and efficient taxes

Make your mental health a priority

Victoria’s talent on show Annual awards showcase the best of the industry

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Contents

12 ‘It is pleasing to see the standard of entries year on year continues to rise … all entrants should be applauded for their dedication and pursuit of excellence.’ REIV CEO Gil King Cover story AWARDS NIGHT Annual ceremony showcases the best of the real estate industry and celebrates the achievements of members

Features

20 22 26 28 30

Self first is not selfish!

It’s time to take a personal stocktake on how you are travelling from a mental health perspective

Market research The REIV Residential Market Index provides a current and simple insight into real property price trends in Victoria

State election wishlist Training, less regulation and more efficient taxes among key priorities ahead of State election

Knowledge is key to agency growth A focus on education and training helps the award-winning Richardson Real Estate team

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Business security Seven ways to help stop workplace fraud

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28 The Estate Agent ❘ November 2018

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Contents

5 President’s Report 7

CEO Report

9 Bulletin 18 Member News 24 Industry News 25 Training Calendar 31 Best Practice 34 Member Milestones

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35 Events Calendar 36 Social

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36 34

EA

Publisher REIV 335 Camberwell Rd, Camberwell, Victoria 3124 Editor Emma Burton eburton@reiv.com.au

Advertising Sarika Bhalla sbhalla@reiv.com.au 03 9205 6696

THE ESTATE AGENT

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

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The Estate Agent â?˜ November 2018

Connect with REIV on social media. Find us on: facebook.com/REIVictoria @REIVictoria

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

@REI_Victoria

President’s Report Robyn Waters President REIV

Renewed and revitalised focus on members is Institute’s top priority

T

he REIV serves a vital role on the Victorian Real Estate stage.

Together with our members we are a vital business tool, a reliable source of information and a powerful voice for a profession with endless opportunities.

The mission of the REIV is to enhance the professional excellence of our members and their businesses to the benefit of the communities they work within and to advocate and represent their interests.

The REIV recognises and celebrates the professional excellence of its members at the most prestigious event on the Victorian real estate calendar: the 24th REIV Awards for Excellence.

We all know that real estate is a competitive business and the award submissions are testament to the individuals and agencies who demonstrate innovation, determination and passion in securing the best results for their clients. This year we have recognised agencies and individuals for their application to professional excellence.

The transaction of property is integral to Victoria’s economy. As the peak association for 2300 real estate agencies and 5000 individual members, the REIV relishes this annual opportunity to acknowledge the high standards that our members aspire to and reach in our communities.

The REIV provides great opportunities for its members to participate in ongoing professional development and supports new entries into the profession whilst studying towards a real estate qualification.

An REIV member provides benefits to the wider community by being better trained and well-informed real estate agents who help deliver a better level of services.

The Institute has gone through a strenuous process of strategic planning.

‘The REIV is a member-driven organisation – without the contribution of its members our organisation would die a definite and hasty death.’

The commitment of the Board of Directors and the Management to the implementation of the plan allows the Institute to focus on its goals and monitor its progress and achievements.

The REIV is a member-driven organisation – without the contribution of its members our organisation would die a definite and hasty death.

It is vital for the future of the REIV to focus on the membership, the membership who hold the knowledge and who are strategically placed to provide that knowledge to the wider community.

The Real Estate community is no longer limited to only selling houses, we cover all aspects of real estate activity – from sales, leasing, property management, owners corporation, developers, urban planning and valuation, to mention a few.

The consumer has an expectation

for our members to have a global vision with local knowledge, specialist expertise, that they have access to information and technology, that they have the right people providing service and that they have a great capacity for personal relationships and a wide network of contacts.

The REIV’s long-standing and highly respected presence in the Victoria community provides instant access to credible and dependable professional members.

During my Presidency, together with the organisation leadership, we will revitalise our membership involvement and membership relevance, and focus on member services.

This is why we are getting ready to launch our new member search tool: a data-driven, objective member search with web functionality.

Continued on page 6

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President’s Report

Continued from page 5

This will be a superior mechanism for Victorians to find an REIV agent and we are very excited by it.

Thank you to the immediate Past President Richard Simpson, who has provided exemplary leadership over the last year, which has been a year full of challenges where we have seen the biggest review of property legislation in the state’s history. Richard, together with CEO Gil King, has created a transparent and ongoing relationship with both sides of government. The REIV will continue to provide advocacy on behalf of its members, their clients and the future of the Real Estate profession.

Thanks must also go to the application of Leah Calnan and Sophie Lyon for their tireless contribution to

‘The REIV will continue to lobby all sides of politics … during the lead up to the Victorian Election.’

the examination of the proposed RTA legislation, working towards a fairer and more equitable outcome for all involved.

The REIV is committed to supporting Victoria’s competitive advantage and economic growth.

Property has underpinned our economic activity over the past decade and we need a sound legislative, policy,

infrastructure and funding base around that if we want this to continue.

Strong economic outcomes do not occur in a vacuum. Therefore, the REIV will continue to lobby all sides of politics to influence a healthy regulatory environment during the lead up to the Victorian Election in November. Pages 26-27 provide more detail on the Institute’s priorities.

The recent REIV Board election saw nominations from various sectors of our membership which is encouraging and hopeful for the future of our Institute. Cameron Way from Woodards in Blackburn was re-elected, together with immediate Past President Richard Simpson for a further term of three years. This provides some consistency, some continuity and credibility to the REIV Board of Directors, see page 18.

The REIV will continue its dialogue with members with visits to members offices and taking several roadshows to our regional communities – the REIV President is coming to a town near you!

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The Estate Agent ❘ November 2018

REIV 1

CEO Report Gil King CEO REIV

Upcoming election offers chance to resurrect vital legislation

O

nce again, we look back on a year of significant activity and as you receive this edition of EA, there will be considerable activity around state politics with the people of Victoria deciding the shape of government for the next four years.

The REIV stands ready to work with whichever government is in place, just as we have done in the past. We are well placed to work with either side of politics. The ability to work with the current government enabled a very good, but delayed, outcome to be achieved in relation to the rebate statement issue for authority documentation.

Retrospective legislation has passed through the Victorian Parliament in what was an ever-increasing legislative agenda. This was a significant outcome for the REIV and its membership.

It was the REIV and the REIV alone that brokered this outcome, with the changes paving the way to protect all real estate agents regardless of whether they are members of the Institute or not.

‘It was the REIV and the REIV alone that brokered this outcome, with the changes paving the way to protect all real estate agents.’

The make-up of the Parliament, in particular the Legislative Council where the government did not hold a majority, meant that progress of Bills through the two houses was never guaranteed. Many Bills failed to get passed and have now lapsed. Depending on the outcome of the election many

of these will be ‘resurrected’ in the new year and we will again be involved in significant advocacy to get the best result possible for our members. There is no doubt that the Estate Agents Act and the Sale of Land Act will feature significantly in the next year or so.

One piece of legislation that did get through was the Residential Tenancies Act, with close on 130 amendments to the previous legislation. It was disappointing that some of the critical issues that the REIV put forward were passed without amendment despite the sound reasoning behind our position.

The reality was that once Premier Daniel Andrews got behind the proposed Bill around the time of the Northcote by-election last year, this was always going to be a priority for the government.

Continued on page 8

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CEO Report

Continued from page 7

To that point, the Bill slotted into the government’s legislative agenda ahead of 23 other Bills already in the upper house.

The REIV was able to get some concessions during the consultation phase and we will be working very closely with government to ensure the best outcome possible. What is really important for our members to communicate is that this legislation is not yet law and it may take more than a year for it to become law.

Many people, particularly tenants, will think that with the passing of the Bill that they can now have a right to pets or to make modifications to the property.

This is not the case and members should have noticed a range of communications recently about this matter.

Keep an eye out for progress on the legislation and when it will come into effect. It is anticipated that certain parts of the legislation will be rolled out progressively.

The Hon. Heidi Victoria MP, Shadow Minister for Consumer Affairs with Janet Spencer, Buyer’s Agent of the Year.

‘Congratulations to all winners, finalists and participants.’

Once again the REIV Awards was a great success, with the best of the best being showcased. Congratulations to all winners, finalists and participants.

The standard of entries sees a ‘raising of the bar’ year after year. What was

a winning entry last year did not necessarily translate into a winning entry this year. What is required every year is a reinvigoration of the approach to the submissions, with higher standards being evident across all categories.

Thank you to the judges for their efforts this year in what proved to be a very difficult task to separate the stellar from the excellent.

On behalf of the REIV Board and wider team, I would also like to congratulate Luke Banitsiotis of Woodards Blackburn and Michael Wood from Marshall White & Co for their performance at the Australasian Auctioneering Championships in New Zealand last month. While the honours went to New Zealand’s Andrew North from Harcourts Cooper & Co, Luke and Michael should be applauded for their achievement and professionalism in this prestigious competition. @REIV_CEO

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The Estate Agent ❘ November 2018

Bulletin

2019 REIV DIARIES NOW AVAILABLE

The annual REIV Diary is a single, consolidated source of practical information for all real estate professionals. The diary includes rules of practice, real estate conventions, stamp duty and land transfer duty tables.

Ensure you start 2019 organised and informed.

Order today by calling 03 9205 6645.

FUNDING SET TO FAST TRACK VICTORIA’S GROWTH The Victorian Government is making it quicker and easier to build new homes and create jobs with the announcement of $5.7 million in grants and planning support for local governments across Victoria.

The Minister for Planning, Hon. Richard Wynne, announced funding for 51 projects that will cut red tape, streamline approval processes and help councils plan for the

future under the Streamlining for Growth program. Innovative projects will look at optimising land use, creating job hubs, planning for new suburbs, attracting investors, trialling new technology, revitalising tired areas and reducing bureaucratic hurdles, with support from the Victorian Planning Authority.

The full list of projects and locations is available at vpa.vic.gov.au.

REIV ANNUAL REPORT The REIV Annual Report is now available to all members on the REIV website.

The Annual Report incorporates the 2017/18 audited financial statements.

GIVE BACK BY BECOMING A TRAINER AND ASSESSOR

Are you passionate about the professionalism, qualifications and upskilling of real estate professionals?

Could you lead the next generation of

agents? REIV is seeking expressions of interest from potential trainers to join the contract team for both our accredited and professional development delivery.

Applicants are being sought with the following skill areas/specialisations: Auctioneering Residential sales Property management Family violence and vulnerable clients Buyers agents Owners corporation Business broking Commercial and industrial All trainers must: Be a current licensed real estate agent with proven experience Be a member of the REIV (or willing to become a member) Police check (or willing to obtain) Hold professional and public liability insurance (or willing to obtain) Workcover insurance or certificate of exemption To express interest or find out more about becoming a trainer or assessor, the responsibilities and its benefits to you, please contact the Learning & Development Operation Manager at training@reiv.com.au The Estate Agent â?˜ November 2018

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Bulletin

REIV OFFICE CLOSURE

The REIV will close for the holiday season at midday on Friday 21st December and will re-open again at 8.30am on Wednesday 2nd January 2019. We would like to take this opportunity to wish all members and their families the best over the festive season.

BUILDING MORE SOCIAL HOUSING IN MELBOURNE’S WEST The Andrews Government is building prefabricated studio units on unoccupied government land in Melbourne’s inner west to help meet the demand for social housing.

The architecturally designed modular housing units will provide housing for low-income earners priced-out of the private rental market. The project will see VicRoads-owned land earmarked for future

REFORMS TARGET UNRULY PARTIES IN APARTMENTS

Changes to Owners Corporations Act 2006, addressing the issue of unruly parties in apartments rented for short-stay accommodation, will come into effect on 1 February 2019.

Under the reforms, owners corporations and residents will be able to act against lot owners and their guests when an unruly party has been held in an apartment.

For more information visit www.consumer.vic.gov.au/ housing/owners-corporations/rules-and-resolving-disputes/ short-stay-accommodation

road-widening subleased to community housing agency Launch Housing.

Nine sites along Ballarat Rd in Footscray and Maidstone will be home to 57 prefabricated studio units. Additionally, the Government will invest more than $6.5 million in grants for a six-level, 54-unit housing facility at Napier St in Footscray and, a three-level, seven-unit apartment building at Gertrude St in St Albans.

ANNUAL GENERAL MEETING REMINDER Members are reminded that the REIV AGM will be held on Thursday 22nd November from 4pm to 5pm at the REIV office in Camberwell.

UNLOCKING ENTERPRISE IN A CHANGING ECONOMY Clusters of creative and technology jobs in Victorian areas such as inner Melbourne’s Cremorne will be strengthened by a new planning zone and policy to support Enterprise Precincts.

The Enterprise Precincts policy, recently announced by the Victorian Government, will support jobs growth in areas already attracting emerging economy businesses.

The policy will guide decisions around

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The Estate Agent ❘ November 2018

transport, governance, use of public land and business assistance, and includes the new tailor-made employment zone Commercial 3, which will reduce the council planning burden for a host of businesses, from urban makers to coworking spaces.

Cremorne, now dubbed as ‘Silicon Yarra’, is one of several Melbourne inner urban areas attracting creative, technology, and innovation start-ups,

drawn by the presence of like-minded entrepreneurs, heritage buildings, co-working spaces, a mix of large and small land parcels left by departing large industries, and good public transport.

Other Emerging Precincts identified by the State Government include parts of Collingwood, South Melbourne and Brunswick.

To learn more visit planning.vic.gov.au/ policy-and-strategy.

Awards

Four-time winner: Nicholas Lynch Real Estate, Medium Agency of the Year.

Showcasing the best of Victoria’s talent The 2018 REIV Awards for Excellence highlight the industry’s brightest

H

osted by comedian Fiona O’Loughlin, the 2018 REIV Awards for Excellence showcased the best of the real estate industry and celebrated the achievements of members, leading real estate agency practices and professionals. Attracting more than 800 people to Crown’s Palladium ballroom, the Awards recognised and rewarded members who have gone the extra mile in pursuit of service, ethics and results.

Congratulations to all winners, finalists and participants. Thank you to the judges for their efforts and time this year, Judging all the entries takes an enormous amount of time, with some judges reviewing more than 20 entries each.

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The Estate Agent ❘ November 2018

REIV CEO Gil King congratulates all winners, finalists and participants.

‘It is pleasing to see the standard of entries year on year continues to rise.

While there can only be one winner

‘I urge all winners and finalists to promote their achievements’ in each category, all entrants should be applauded for their dedication and pursuit of excellence.’

He recognised the continued excellence of several winners, including Stephen Briffa of Network Pacific Real Estate and Vicki Sayers from RT Edgar for their back-to-back wins of Owners

Corporation Manager of the Year and Residential Sales Person of the Year, respectively.

The following agencies also took out consecutive wins in their respective categories: Jellis Craig Northcote for Residential Marketing Award (Budget over $10k); O’Brien Real Estate, Corporate Promotion Award (Multiple Offices); Market Share Property, Innovation Award; Woodards Blackburn, realestateview.com.au Sales Agency Award and Large Residential Agency of the Year winner, Methven Professionals Mooroolbark. Nicholas Lynch won Medium Residential Agency of the Year for the fourth consecutive year.

‘In a highly competitive market where we are all trying to attract clients and build on our reputations, I urge all winners and finalists to promote their achievements not only to new or potential clients but those past and present,’ King said.

Awards

2018 PRESIDENT’S AWARD Courtney Thursfield An experienced Property Manager and Director at JPP Buyer Advocates, Courtney Thursfield is the recipient of this year’s President’s Award. Since joining the REIV in 2007, Courtney has dedicated significant amounts of her time to participate in the Institute’s activities.

It was after obtaining an Advanced Diploma in Hospitality Management that Courtney changed career direction to explore real estate, going on to complete her Agents Representative qualification and Certificate IV in Property Services at the REIV. She became an REIV Licensed Member in 2009. Courtney is currently a valuable member of the REIV Young Agents Chapter Committee, having also served as its Chair from 2015–2016.

She is a Members’ Council delegate and current Chair of the REIV Southern Division Committee, a position she has held for the past five years.

In addition to her time on committees, Courtney has participated as a bidder at both Novice and Senior Auctioneer

competitions, MC roles at various Young Agent events and regularly attends REIV property management events among others to ensure her CPD requirements are met.

‘Courtney demonstrates great enthusiasm and commitment to the REIV’ – Richard Simpson ‘Courtney should be commended for her active service to both the Institute and the broader real estate community to date,’ praises Richard Simpson, REIV Immediate Past President.

‘She has provided valuable input on a range of policy and training topics, including a family violence collaboration between Consumer Affairs Victoria, Uniting Kildonan Australia and the REIV. Courtney has always provided a fresh perspective and demonstrates great enthusiasm and commitment to the REIV and the growth

Honoured: President’s Award recipient Courtney Thursfield with REIV Immediate Past President Richard Simpson.

of the real estate industry. She is driven to be the best she can be and strives to advance her professional development.’

COMMUNITY SERVICE AWARD Compton Green This year’s highly competitive Community Service Award, supported by the REIV Charitable Foundation, saw an overwhelming number of entries received – a real testament to our industry.

2018 winner, Compton Green, have demonstrated that community partnership doesn’t always need to come in the form of a financial donation. In fact, opening the doors of your agency, sharing resources, local knowledge and offering mentor opportunities can be just as effective.

Since 2013, Compton Green has been a major supporter and partner of the philanthropic Hobson’s Bay Community Fund (HBCF) which helps organisations and voluntary activities in their municipality strengthen the community for present and future generations. However, their recent support behind a three-year

Supportive: Compton Green accepts the award from REIV Charitable Foundation Chair Frank Hellier.

joint research project between HBCF and Melbourne University has culminated with far-reaching benefits of attitudinal and cultural change in community, sporting clubs and state and local government.

Since 2016, Compton Green has provided office space and resources to Melbourne University’s Master of Social

‘Without this, students wouldn’t have had the opportunity to truly understand the local community.’

– University of Melbourne and HBCF

Work students for work placement, helping them interpret local culture, observe client interaction and effectively research the local community.

The University of Melbourne and HBCF are exceptionally grateful to Compton Green. ‘Staff were truly impressive, open to discussion around local issues and happy to give guidance. They provided community culture insights and helped students interpret different local views, so they could better respond to identified needs. Without this, students wouldn’t have had the opportunity to truly engage and understand the local community,’ they commended.

On a broader scale, Compton Green’s support has enabled students to make impactful recommendations to the HBCF Board, who deliver grants to sporting clubs who have excelled at building an inclusive environment, in addition to the connection with government and governing sporting bodies to influence policy.

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Awards

WINNERS & FINALISTS 2018 INDIVIDUAL AWARDS

NOVICE AUCTIONEER OF THE YEAR Charles Shi of Jellis Craig Blackburn FINALISTS: Alex Dimopoulos, Nelson Alexander Ben Thompson, Jellis Craig Brighton Demi Liu, Woodards Blackburn Marcus Valmorbida, Jellis Craig Hawthorn

SENIOR AUCTIONEER OF THE YEAR Luke Banitsiotis of Woodards Blackburn FINALISTS: Andy Choi, Area Specialist Michael Choi, Area Specialist Stephen Smith, Marshall White & Co Paul Tzamalis, The Auction Company Michael Wood, Marshall White & Co BUSINESS BROKER OF THE YEAR Choon Ng of Xcllusive Business Sales BUYER’S AGENT OF THE YEAR Janet Spencer of Buyer Solutions FINALISTS: Lisa Parker, Parker Buyer Advocates Melissa Opie, Keyhole Property Investments Phillip Almeida, Performance Property Advisory COMMERCIAL PROPERTY MANAGER OF THE YEAR Megan Mander of Urbane Commercial FINALISTS: Stephen Fischl, Beller Commercial 14

COMMERCIAL SALESPERSON OF THE YEAR Brett Diston of Ray White Commercial Victoria – Nunawading FINALISTS: Justin Dowers, CBRE CORPORATE SUPPORT PERSON OF THE YEAR Katie Taplin of RT Edgar OUTSTANDING YOUNG AGENT OF THE YEAR AWARD Luke Spence of N Beller & Company FINALISTS: Anthony Cimino, Inner Real Estate NEXTRE Michael Webb, Philip Webb Sales Toby Campbell, Caine Real Estate OWNER’S CORPORATION MANAGER OF THE YEAR Stephen Briffa of Network Pacific Real Estate FINALIST: Kate Yeowart, Strata Equity

The Estate Agent ❘ November 2018

RESIDENTIAL PROPERTY MANAGER OF THE YEAR Heidi Sparks of Nicholas Lynch FINALIST: Trish Destito, Melcorp Real Estate RESIDENTIAL PROPERTY MANAGER OF THE YEAR (EXECUTIVES) Melanie Dennis of Domain & Co PM FINALISTS: Jayne Humphries, Compton Green Sam Nokes, Jellis Craig Armadale Zac Karvoun, Alex Kar Bon Real Estate RESIDENTIAL SALESPERSON OF THE YEAR (EXECUTIVES) Sam Rigopoulos of Jellis Craig Northcote Sales FINALISTS: Anthony Webb, Philip Webb Sales Matthew Scafidi, Noel Jones Mitcham

RESIDENTIAL SALESPERSON OF THE YEAR Vicki Sayers of RT Edgar FINALISTS: David Cowie, Nicholas Lynch Robert Groeneveld, Philip Webb Sales

MARKETING AWARDS RESIDENTIAL MARKETING AWARD (BUDGET UNDER $10K) Woodards (Northern) for 5/27 Flinders Lane, Melbourne FINALISTS: Ararat Ballarat Real Estate for 89 Picnic Road, Ararat Blackbird & Wren for 32 Macedon Street, Sunbury Nicholas Lynch for 765 Robinsons Road, Pearcedale Philip Webb Sales for Tiny Homes

Awards

RESIDENTIAL MARKETING AWARD (BUDGET OVER $10K) Jellis Craig Northcote for 6 Naroon Road, Alphington FINALISTS: First National Real Estate Lindellas for 39 Court Street, Box Hill RT Edgar Flinders for 19A Spindrift Avenue, Flinders Woodards Blackburn for 18 Orchard Grove, Blackburn South PROJECT MARKETING AWARD CBRE (RP) for Piper, 28-30 Linacre Road, Hampton FINALISTS: Colliers International for West Side Place, 250 Spencer Street, Melbourne Woodards Blackburn for 1-10/18-20 Blair Street, Lilydale RURAL MARKETING AWARD Nicholas Lynch for 895 Frankston-Flinders Road, Somerville

AGENCY AWARDS

BEST WEBSITE AWARD Philip Webb Sales FINALISTS: Woodards

COMMUNICATIONS AWARD O’Brien Real Estate FINALISTS: Harcourts Victoria Max Brown (Vic) COMMUNITY SERVICE AWARD Compton Green FINALISTS: Bon Accorde Property Services Methven Professionals Mooroolbark Ray White Chelsea CORPORATE PROMOTION AWARD (SINGLE OFFICE) T J Sparks FINALISTS: Wilson Property Residential Commercial Industrial CORPORATE PROMOTION AWARD (MULTIPLE OFFICES) O’Brien Real Estate FINALISTS: Harcourts Victoria Woodards INNOVATION AWARD Market Share Property FINALISTS: CBRE Philip Webb Sales Woodards

C&I GOLD AWARD FOR OVERALL EXCELLENCE Savills (Vic) FINALISTS: Burgess Rawson & Associates Colliers International (Victoria)

PROPERTYDATA SALES AGENCY OF THE YEAR AWARD – METRO Jellis Craig Brighton FINALISTS: Branon Real Estate Hill Real Estate (Wantirna) Pride Real Estate

COMMERCIAL AGENCY OF THE YEAR CBRE FINALISTS: Colliers International (Victoria) Savills (Vic)

PROPERTYDATA SALES AGENCY OF THE YEAR AWARD – REGIONAL Integrity Real Estate (Yarra Valley) FINALISTS: Cantwell Property Castlemaine Doepel Lilley & Taylor PH Property

SMALL RESIDENTIAL AGENCY OF THE YEAR Network Pacific Real Estate FINALISTS: Blackbird & Wren Market Share Property MEDIUM RESIDENTIAL AGENCY OF THE YEAR Nicholas Lynch FINALISTS: Jellis Craig Blackburn Noel Jones Blackburn Noel Jones Mitcham LARGE RESIDENTIAL AGENCY OF THE YEAR Methven Professionals Mooroolbark FINALISTS: Barry Plant Manningham Jellis Craig North Side

REALESTATEVIEW.COM.AU SALES AGENCY OF THE YEAR AWARD Woodards Blackburn FINALISTS: Millership & Co

REIA NATIONAL AWARDS FOR EXCELLENCE 2019 Thursday 21st March 2019 at Crown, Perth

SPECIAL THANKS TO OUR 2018 PARTNERS FOR THEIR CONTINUED SUPPORT OF THE REIV AWARDS Gold partners

Bronze partners

Event partners

The Estate Agent ❘ November 2018

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Awards

PROPERTYDATA SALES AGENCY OF THE YEAR AWARD Integrity Real Estate (Yarra Valley) Jellis Craig Brighton

Accolades: Integrity Real Estate (left) won PropertyData Sales Agency of the Year – Regional; Jellis Craig Brighton won the award for the Metro category.

The 2018 Awards program saw the introduction of the inaugural PropertyData Sales Agency of the Year Award.

Open to all REIV member agencies that are also subscribers of PropertyData, the Award was assessed on residential sales performance, as compared to the median price for the suburb, and the rate of growth for the agency in their relevant market. Performance and growth were measured using information provided to

the REIV and PropertyData.com.au.

Broken into metro and regional agency categories, the 2018 accolades go to Jellis Craig Brighton, winner of PropertyData Sales Agency of the Year – Metro, and Integrity Real Estate (Yarra Valley) for

The Award was assessed on residential sales performance

PropertyData Sales Agency of the Year – Regional. Jellis Craig Brighton’s sales performance against the median price showed improvement of 23 per cent yearon-year, and Integrity Real Estate achieved an 18 per cent increase. The finalists in the two sub-categories were Hill Real Estate Wantirna, Branon Real Estate and Pride Real Estate for metropolitan, and PH Property, Cantwell Property Castlemaine and Doepel Lilley & Taylor.

RESIDENTIAL MARKETING AWARD (BUDGET UNDER $10K) Woodards (Northern) This year’s Residential Marketing Award entrants adopted an innovative and creative approach to the selling proposition for their respective properties. Traditional marketing techniques were challenged with agencies developing unique campaigns to combat the changing face of Victorian real estate and the emotional attachment to a property with buyers.

Woodards, winner of this year’s Award, created a campaign purely focused on the rewarding investment opportunity through short-stay rental providers such as A‌i‌r‌b‌n‌b‌. A small 65sqm ground floor apartment in the heart of Melbourne’s CBD with no car parking, heating or cooling

A small apartment sold for over 20 per cent of the reserve price 16

The Estate Agent ❘ November 2018

Creative mind: Seth Watts (left) from Neo awards Luke Piccolo of Woodards Northcote.

sold at auction for over 20 per cent of the reserve price. Additionally, only 0.75 per cent of the selling price was invested in the marketing campaign to sell the property.

A resounding success for both Woodards and the vendor.

Other finalists included: P hilip Webb Real Estate for their

campaign selling Tiny Homes, which are becoming increasingly popular throughout the world. The dwellings provide an affordable (and transportable) alternative for those looking to downsize, invest or go off-grid; B lackbird & Wren for the high-end marketing approach of a non-heritage Sunbury home in the million-plus price range. The wait staff offering Veuve Champagne, sparkling mineral water and canapes at the open for inspection was a unique touch aiming to attract high-end buyers; N icholas Lynch Real Estate ran a successful campaign utilising the vendor’s emotional attachment to the 10-acre property. The home, architecturally designed and built in the mid-1970s, may have been Australia’s first energy-independent home.

Awards

OUTSTANDING YOUNG AGENT OF THE YEAR Luke Spence Shortlisted as a Finalist for the 2017 REIV Outstanding Young Agent of the Year and Business Development Manager of the Year (Property Management) in the 2017 Real Estate Business Awards, Luke strives to be a leader in his field.

His 10 years of experience in Property Management, and more recently as a Business Development Manager, provided him with the drive to obtain his real estate licence, which he passed in May this year.

His licence, together with his experience in various facets of the industry spanning both Victoria and Queensland, allows Luke the opportunity for future success and growth.

Luke identifies Airbnb and other

short-stay companies as the largest business challenge in the Property Management space. They “offer landlords the opportunity to change the style of their investment strategies, cutting out the need for a traditional Property Manager”, he outlines. To combat disruptors, Luke strives to remain consistent in his approach and persistent with his level of service for his clients.

“I have an ultimate goal of being named a Director at Beller Real Estate.

However, in the short-term my aim is to slowly transition into a full-time sales consultant role and further extend my experience within the sales whelm of real estate,” he says.

‘In the short-term my aim is to slowly transition into a full-time sales consultant role’ – Luke Spence

REI 20077_CustRsrch_180mm x 127mm_HP_OTLN.indd 1

Outstanding young agent: Luke Spence.

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12/7/18 1:56 pm

Member News

Introducing the REIV President & Board The Institute’s new President, Robyn Waters, has an unrivalled list of achievements in the real estate industry

A

s we welcome in a new REIV President, Robyn Waters, and pass on our thanks to Immediate Past President, Richard Simpson, it is timely to acknowledge the outstanding efforts of all REIV Directors. A lot of work takes place behind the scenes at REIV, some of which may not be known to many members.

The REIV Board comprises a diverse range of knowledge and expertise –

5 MINUTES

with Robyn Waters, REIV President Dogs or Cats?

Neither, I much prefer spending time with my two-year-old granddaughter, Isla.

Favourite restaurant?

I’m definitely a savoury person as opposed to a sweet tooth.

Unfortunately, I can’t name one single restaurant as a favourite, there are so many!

It really depends on what part of the world you are in.

If travelling through the UK and Europe, you must dine at Nopi in London and Osteria del Sostegno in Rome. Locally I love il sogno in Surrey Hills, or if in central Melbourne an old-time favourite is Grossi Florentino Cellar Bar. Funnily 18

enough there seems to be a theme here…

Favourite movie?

I love all the lovey-dovey romantic movies. A recent one would have to be Mamma Mia! Favourite holiday destination?

Queenscliff, however I also must mention Rome. It’s very close to my heart.

You’ve had an extensive career in real estate, both locally and internationally.

Can you pinpoint a career highlight?

I was born and raised in a real estate family in the northern

The Estate Agent ❘ November 2018

with Directors, all rich in experience, representing several real estate sectors, including sales, auctioneering, property management, commercial, industrial and valuation.

Our newly elected REIV President, Robyn Waters is a formidable force in the Victorian real estate industry.

Robyn is the first Australian woman to be appointed World President of the International Real Estate Federation (FIABCI) in May 2014. She served on the REIV Board as Senior Vice President and REIV representative to the REIA Board in 2017-18 and as Director from 2001 to 2006, as well as being a ministerial appointment to the Estate Agents Council from 2015 to 2018.

Robyn is a licensed estate agent who operates as a sole trader providing real estate services to a select portfolio of clients. She is the REIA’s Trustee to the International Ethics Standards Coalition and a fellow of the REIA and Royal Institution of Chartered Surveyors.

suburbs of Melbourne. My father was heavily involved with the Asia Pacific Real Estate Federation. In the early 80s I was fortunate to travel to the US on an exchange program and have been involved in real estate ever since.

My career highlight would be my tenure as World President at the International Real Estate Federation (FIABCI). I was elected in May 2014, the first Australian woman to hold the position.

FIABCI is a business network of real estate professionals first established in 1948 and includes 48 countries throughout the world. FIABCI is the only non-governmental organisation (NGO) adviser to the Economic and Social Council of the United Nations.

It was a very busy role that saw me visit 33 countries in 12 months.

Do you have any advice for young agents or those starting out in real estate?

Network, network, network.

Build relationships and develop skills in all facets of the industry before deciding on your speciality. Ensure you engage with regular face-toface dialogue with clients.

Nothing beats watching the whites of someone’s eyes!

What do you stand for?

Honesty, integrity, trust and diligence.

You were originally elected to the REIV Board in 2001, what made you nominate?

Encouragement from other respected colleagues played a large part in my decision and ultimate nomination. I thought I had the skills necessary to make a contribution.

Member News

REIV BOARD MEMBERS

Robyn Waters President Founder, get Robyn Robyn is in her first term of a new period, after being elected on the Board in 2016.

Robyn served previously as a Director from 2001 to 2006 and has served as both Senior Vice President and Vice President.

Frank Hellier Director Senior Executive, Barry Plant Mordialloc Frank served previously as a Director from 1998 – 2009 and 2013 – 2016.

Frank was also REIV President from 2002 to 2003. He is now in his first term of a new period, after being elected again in 2017.

Sophie Lyon Director Director and General Manager Property Management, Jellis Craig Boroondara Sophie served previously as a Director from 2008 – 2014. She is now in her first term of a new period, after being elected again in 2016.

Leah Calnan Senior Vice President Director, Metro Property Management & Metro Property Sales Leah is in her second term on the Board, after first being elected in 2014. Leah has previously served as Vice President.

Lee Maher Director Managing Director, Urban Property Melbourne Lee is in her first term on the Board, after being elected in 2017.

Adam Docking Vice President Director, MJ Docking & Associates Adam is in his first term on the Board, after being elected in 2017.

Michael Blake Director Director, Youngs & Co Pty Ltd Michael is commencing his third term on the Board, previously serving between 2009 – 2011.

Richard Simpson Director and Immediate Past President Partner, W. B. Simpson & Son Richard is commencing his second term on the Board, after being first elected in 2015. Richard has previously served as Senior Vice President and Vice President.

Cameron Way Director Managing Director, Woodards Blackburn Cameron is commencing his second term on the Board, after being first elected in 2015.

Noel Dyett Director Sales Consultant, Tweed Sutherland First National Noel is in his first term of a new period, after being elected on the Board in 2016.

Noel is a previous REIV President and Senior Vice President, after serving as a Director from 1999 – 2007. In addition, Noel has served as Victorian REIA Director from 2006 – 2009 and as REIA President 2008 - 2009.

The Estate Agent ❘ November 2018

19

Health

Self first is not selfish!

By Tony McManus, Mental Health Advocate, McManus Consulting Services

R

eal Estate offers a diverse range of interactions with clients and staff that can be exhilarating one day and then completely draining the next.

The requirement to be ‘on call’, the temptation to check emails and client inquiries after hours, can prevent you properly switching off to recharge your batteries. Bad habits like a poor diet and a failure to make time for exercise and social connection may evolve.

As we move into the festive season and start to attend Christmas parties and family get-togethers, we may experience a range of feelings and emotions. However, it is also a great time for a personal stocktake on how we are travelling from a mental health perspective.

As Jeff Kennett, beyondblue Founder, once said: “It’s OK to put yourself first”. Don’t be led into thinking you’re being selfish. If you aren’t firing on all cylinders then you will struggle to have the energy to juggle all of the responsibilities that you are accountable for. Give thought to: 20

The Estate Agent ❘ November 2018

1. Self 2. Relationships 3. Finances 4. Health (Physical and Mental) 5. Work, and 6. Leisure When I first reflected on these six points, I discovered that 70 per cent of my thoughts were about work, with the balance evenly spread between

‘At my lowest I can remember sitting in my real estate office behind a closed door hoping that the phone would not ring.’

relationships, finances and health. I had no focus on self or leisure. I had basically evolved into a workaholic with no idea of the concept of self, let alone self-care. An inevitable decline in my mental health eventuated.

Think about isolation. Traditionally

we think of physical isolation, being away from others. However the mental health version, is that of emotional disconnect, or ‘presenteeism’. You or one of your colleagues is physically at work, but your head is elsewhere.

At my lowest I can remember sitting in my real estate office behind a closed door hoping that the phone would not ring. I was so anxious about my ability to handle phone calls. This was around the time that my younger brother (a member of the sales team) had taken his own life. I was very reluctant to share how unhappy I was actually feeling with my family or colleagues.

Eventually, by reaching out to some close mates, talking to my GP about how I was feeling, and a combination of medication and therapy with a psychologist, I was able to turn things around.

Some lifestyle changes and a completely different career path that aligns strongly with my personal values have been vital in turning

Health

TAKE NOTICE • Remember the simple things that give you joy

USE THE DOWNTIME OF THIS FESTIVE SEASON TO EXPLORE YOUR FIVE WAYS TO WELLBEING:

things around. My key relationships have improved, along with a very clear sense of self. I am less driven by money and the accumulation of assets. I am well aware of what I have to do to maintain both my physical and mental health. My leisure time involves more social connection and engagement with others who share similar interests. In short, over time I have become much happier and more balanced.

A solution of social connection, through volunteering, can be fun.

A great example for me was the establishment of the ‘Grey Cats’ - a combination of my support of the Geelong Football Club, engaging past players, and providing a community engagement program for residents of a local retirement village. The Grey Cats is as simple as adding two afternoon teas to normal social activities.

Barry Plant Highton sponsors a footy tipping competition, sparking a lot of

CONNECT • Talk & listen • Be there • Feel connected

BE ACTIVE • Do what you can • Enjoy what you do • Move your mood

GIVE • Your time • Your words • Your presence

KEEP LEARNING • Embrace new experiences • See opportunities • Surprise yourself

interest. A simple win-win outcome that any estate agent in any city or town in Victoria could easily replicate.

Sharing social connections with colleagues, friends and family members will help them, and you, identify similar potential connections in their area with an organisation that resonates

with them. Share ideas, talk and learn from others.

I established a Facebook page, ‘Connect2Grow’, where I share stories about community groups and charities that I have either engaged with or had a positive referral about.

BTW, I am OK now!!

For more on Wellbeing visit: wellbeinginfo.org/self-help/wellbeing/5-ways-to-wellbeing/ ggs.vic.edu.au/Institute/Resources/Our-Model/wellbeing-domains facebook.com/ConnectTwoGrow/

Tony McManus was an Estate Agent for 25 years as the second generation of a family real estate business based in Lara. After selling that business he now offers a boutique Mental Health Mentoring Service for individuals, businesses and community groups. He delivers solutions tailored to the specific needs, circumstances and issues of his audiences and clients that lead to win -win outcomes. His solutions initially focus on building team culture and resilience and then evolves into greater Corporate Social Responsibility outcomes and profiles in the community. m 0417 33 44 34 or e tony@mcmcs.com.au

WE ’LL TAKE CARE OF YOUR CUSTOMERS, WE ’LL TAKE CARE OF

you too

Direct Connect is about more than just connections, we’re about making moving easy for your customers and adding value to your business.

Call our dedicated Member Services Team for more information on: 1300 558 169 or visit agents.directconnect.com.au

The Estate Agent ❘ November 2018

21

Research

RMX offers edge in precision Index provides industry with a useful contrast to median prices

T

he REIV Residential Market Index (RMX) is a residential property price index (RPPI) designed to provide a current, simple insight into real property price trends in Victoria. An RPPI measures the price change of the stock of residential dwellings over time.

input into the Consumer Price Index.

The REIV team developed the RMX as a more frequent, alternative measure to quarterly medians so members can access the latest price movements as they happen.

Why use a Residential Property Price Index?

Both measures have a role to play in understanding the property market.

While the medians are an indicator of sale price during a period, the RMX is a measure of price movement over time.

A limitation of medians and simple median indices as measures of price change is that the properties used to calculate a median are only those traded during the period in question.

This comparatively small number of properties are not always representative

There are several areas where RPPIs play a role. Because of the importance of the housing market in the Australian economy, RPPIs are of interest to policy makers, market analysts, researchers, and home buyers and sellers for a range of economic and social reasons. They can be used as a macro-economic indicator of economic activity, for use in monetary policy and inflation targeting, and as an

Medians or RMX?

RMX

MEDIAN PRICES

Index based on total properties in the region

Price based on properties sold during the period

Updated weekly for a current price trend

Updated quarterly for a more macro view of the market

Indicates overall pricing changes, taking into account the total supply in the region

Medians can be influenced by type of properties sold during the period

of the total stock of housing. Changes in the mix of properties sold during a period will therefore affect the sample median price much more than the overall median price of the housing stock. For example, if more higher-end houses sell this quarter than last, the median price will rise regardless of whether that reflects what is going on in the wider market.

RMX Methodology There are several methods for calculating RPPIs. The method utilised for the RMX is the stratification method. This involves separating all the residential properties in Victoria into sub-groups called strata, then calculating medians for these strata.

The subgroup medians are then given a ‘weight’ based on the number of dwellings in that subgroup (based on the 2016 census information) to obtain an overall measure of price for the state.

This means that if more properties at the upper end of the market sell during the period in question, more ‘weight’ is given to the lower-end strata to balance the impact on the RMX. Currently the REIV tracks three indices: the RMX, which includes all residential properties in Victoria; the House Index, which includes all houses in Victoria; and the Unit Index, which includes all units, apartments and townhouses in Victoria.

The three charts opposite show the data for the RMX, the House Index and the Unit Index from January 2017 to September 2018.

22

The Estate Agent ❘ November 2018

Research

REIV RMX The RMX has been quite volatile over the past year, ranging from 121.1 to 136.3.

It is currently stabilising at around 127-128 following the usual dip in July, slightly below the 12-month average of 129.9.

REIV RMX

12 Month Average

150 129.9 128.4

130

110 1/17

5/17

9/17

1/18

5/18

9/18

MONTH/YEAR

REIV House Index The REIV House Index has been more stable than the RMX and less vulnerable to seasonal dips in January and July.

The recent dip is therefore more likely to be a price correction than due to seasonal factors.

REIV House Index

12 Month Average

150

129.6

130

124.5

110

1/17

5/17

9/17

1/18

5/18

9/18

MONTH/YEAR

REIV Unit Index The REIV Unit Index has been mainly stable barring severe seasonal dips in January.

The Unit Index sits at 129.4, 1.6 per cent above the 12-month average.

REIV Unit Index

12 Month Average

150

129.4 127.4

130

110

1/17

5/17

9/17

1/18

5/18

9/18

MONTH/YEAR

STAY UP TO DATE WITH PRICE TRENDS AT

reiv.com.au/rmx

The Estate Agent â?˜ November 2018

23

Industry News

Cladding rectification agreements New laws enable flammable cladding to be replaced, with cost paid off via council rates

By Scott Bocskay, CEO, Sustainable Melbourne Fund

T

he 2014 fire at the Lacrosse apartment building in Melbourne’s Docklands and the tragic Grenfell fire in London in June 2017 highlighted the fire safety risks arising from the non-compliant use of exterior cladding. Upon the recommendations of the Victorian Cladding Taskforce, the Victorian Government has passed new laws to assist owners of property with known flammable cladding to pay for the rectification works through a new form of finance known as a Cladding Rectification Agreement (CRA).

CRAs are similar in operation to existing Environmental Upgrade Agreements (EUAs), which enable owners to upgrade their property to make them more environmentally friendly and pay it off via their council rates. CRAs are specific to cladding rectification works specified by the Minister and may be entered into by the owners’ corporation on behalf of 24

The Estate Agent ❘ November 2018

the owners following a 75 per cent resolution of lot owners. Each lot owner is then liable for their own repayments under a CRA, with new council rates showing up on the rates notices, which equal the loan repayments.

‘A CRA can transfer to new owners upon sale of a property, similar to the way current council rates do.’

A CRA is a three-way agreement between a lender, property owner and local council. Under a CRA, a lender agrees to advance the capital required for the rectification works, which is repaid via individual lot owners’ council rates notices over a long period (more than 10 years). Stretching out payments over a long period of time reduces the repayments in any given year, reducing the annual repayment

commitments of the financing. This is potentially a more beneficial way for owners to fund the rectification works when compared to alternatives.

While no lenders currently offer a CRA product, when compared to EUAs, owners can expect the product to be a fixed-interest loan product.

A CRA can transfer to new owners upon sale of a property, similar to the way current council rates do. Utilising a CRA is a means for property owners to remedy urgent works needed on a property to protect its value, minimise risk to life and access 100 per cent of the capital required for the works.

Entering into a CRA may be a short-term solution for building owners pursuing other legal remedies associated with their specific circumstance. By having the works undertaken owners may reduce insurance premiums and provide owners the opportunity to sell more easily knowing a risk is not present to prospective buyers.

The current drafting of the CRA bill makes a CRA transactionally cumbersome for each of the parties involved, and owners will still be required to be approved by a lender for the provision of credit under a CRA. The final details of the scheme are not yet released, and councils and lenders are yet to have a process or finance product to offer under the scheme.

Notwithstanding these issues, CRAs may be a powerful tool for property owners where a simple, centralised and regulated approach can be adopted by all involved. Individuals will need to consider their own personal circumstance to understand if a CRA could be right for them.

Scott Bocskay is CEO of the Sustainable Melbourne Fund, which finances building upgrades through Environmental Upgrade Agreements and provides services to councils to offer this form of financing in an administratively simple and efficient manner to their communities.

Training

Training calendar NOVEMBER

DECEMBER continued

Auction

Commercial

22nd

9am – 5pm

Advanced Auctioneering

Property Management 26th–28th

9am – 5pm

Job Ready – Residential Property Management

27th

9am – 5pm

Challenging Situations in Property Management – Your Role & Responsibilities

Property Sales 20th

9am – 5pm

Multi-unit Development – Sales Fundamentals

5th

9am – 5pm

Commercial Property Sales Fundamentals

12th

9am – 5pm

Listing & Leasing Commercial Property

Owners Corporation 10th

9am – 5pm

Advanced Owners Corporation Management

Property Management 17th

9am – 5pm

Preparing for and presenting at VCAT

18th

9am – 5pm

Intermediate Residential Property Management

Property Sales 17th - 19th

DECEMBER Auction 7th

9am – 5pm

Introduction to Auctioneering

9am – 5pm

Job Ready - Residential Property Sales

2019 CPD Course Schedule now available:

reiv.com.au/learning

The Estate Agent ❘ November 2018

25

Advocacy

Priorities for State Election Training, less regulation and more efficient taxes 1 Smart industry: Promoting education and employment opportunities in real estate The REIV welcomes measures designed to improve training quality, strong performance assessments of training providers and targeted funding to address barriers to training.

The REIV believes the main political parties should commit to building capacity by investing in the education and skills of the real estate industry.

This includes strategies such as the promotion and marketing of the value of traineeships, particularly for new entrants in regional areas, increasing the number of real estate agents that go on to further qualifications, and developing a mandatory continuous professional development course that is run by the REIV.

Retaining and enhancing liveability Government must work with industry to develop precinct plans that incorporate housing, jobs and soft infrastructure along transport corridors. Political parties must review the relevant planning schemes to prioritise development along these corridors. The REIV advocates the benefits of increasing housing variety and supply across the 2

Win-win proposition: REIV believes lower property tax rates will have positive effects for the state’s economy.

state to house the growing population, encourage growth and vibrancy, attracting business and employment.

3 Growing regional Victoria The REIV is uniquely positioned to represent the interests of Regional Victoria given the network of real estate agents and associated professions in

regional towns and centres. They are often the linchpin in communities and significant employers.

REIV believes the next Government should investigate the value of a Parliamentary Inquiry, as there was in NSW, to identify how Melbourne’s growing reputation as a global elite city can benefit Regional Victoria.

Melbourne is a globally elite city. We are a magnet for people, business, investment, economic and cultural activity. We need to leverage that to benefit regional Victoria. Keeping Victoria competitive requires a steady supply of residential and commercial stock, a depoliticised planning system and a stable regulatory and investment environment.

– Gil King, REIV Chief Executive Officer 26

The Estate Agent ❘ November 2018

Advocacy

Property has, and will continue to, underpin Victoria’s economic activity.

We are asking the political parties to commit to promoting education, training and employment opportunities in real estate; remove legislative impediments, reduce business costs and provide a secure investment environment. That is what will secure our competitive advantage and ensure we retain our liveability.

– Robyn Waters, REIV President

4

The growth of Melbourne’s CBD CBD planning controls need to be reviewed, particularly in relation to the commercial building sector. Melbourne’s CBD planning controls should replicate those in place in Sydney’s CBD, which is flourishing compared with Melbourne in terms of the commercial office stock pipeline. REIV is concerned about the future pipeline of stock. Commercial stock is crucial for our growing population, ability to attract and retain global companies, jobs and creative people.

5 Depoliticise the planning system REIV asks the main political parties to commit to examining models where planning decisions are made by independent planning panels that remove arbitrary decision-making.

This will ensure planning approvals are subject to a transparent and technical approval process.

Keeping Victoria competitive REIV urges the major political parties to commit to reviewing the rates and 6

REIV believes there should be a Parliamentary Inquiry to identify how Melbourne’s growing reputation as a global elite city can benefit Regional Victoria.

thresholds for property taxes with a view to achieving lower and flatter property tax rates.

7

Reducing business costs – payroll tax The payroll tax threshold should increase from $650,000 to $850,000.

The next Government must collaborate with REIV to examine ways of offering traineeships and other employment opportunities for young people in the real estate industry. This may include further incentivising real estate businesses in the regions by reintroducing payroll tax exemptions.

8 Removing legislative impediments REIV has worked constructively with all political parties to ensure the best outcome for its members.

9 Protecting the livelihood and reputation of our members REIV believes the Government should commit to repealing Section 55 (4) (b) of the Estate Agents Act 1980 which prohibits an estate agent from selling a property to associated parties.

This is unworkable particularly in country towns and significantly affects small businesses by restricting their capacity to receive a fair commission for the work carried out.

10 Review the regulatory approach to real estate REIV advocates for the creation of a Property Services Commissioner overseeing all aspects of the property market including land development, building and construction and the sale and rental of real estate.

The Estate Agent ❘ November 2018

27

Training

Focused on continued professional development: Troy Kincaid, Erica McNama and Mark Theodore of Richardson Real Estate.

Knowledge is key to agency growth Focus on education and training helps the award-winning Richardson Real Estate team

A

fter stumbling into real estate almost 30 years ago, Mark Theodore attributes knowledge and relationships as the key to growth and success within the industry.

Originally a dairy farmer based on the outskirts of Colac, it was a football teammate who identified traits within Mark that suited him to a career move to real estate.

“I was looking for a new home after selling my farm when the agent mentioned that one of the Directors was retiring and would I like a career in real estate. I said yes, had an interview, got the job and as they say, the rest is history,” Mark recalls.

In 2004, after 15 years in sales with a competing agency, Mark was offered the opportunity to become Branch Manager of the newly opened HF Richardson Colac Office. During his first year there he completed his full real estate licence and worked to build 28

The Estate Agent ❘ November 2018

a strong team. By taking an honest approach to business and combining it with his passion for the local area, it wasn’t long before HF Richardson Real Estate became known as the local specialists. Regardless of success, Mark, now a Director, remains focused on continuous improvement to deliver an

‘I am constantly training and attending seminars to refine strategies and processes to help our sellers achieve their ambitions.’ exceptional real estate experience for clients.

“I am constantly training and attending seminars to refine strategies and processes to help our vendors achieve their ambitions,” he says.

One of the most significant changes Mark has witnessed throughout his real

estate career is the effects of technology.

Previously “managing buyers would be in a situation where you would put them in your car, drive them around and show at least three properties at a time. Then doing the same thing again the next day until you had shown them all the suitable listings”,’ he recalls.

“Today, the buyer has already seen the property online, so an open house is just a reassurance of what they have already seen. The opportunity now, with this impact of technology, is to enhance how we relate and market ourselves to customers.”

Winners of two Colac Otway Business Professional Services Awards, the team at Richardson Real Estate were judged on business improvements including customer satisfaction, leadership, business planning, growth, profit and marketing. To maintain their success and ensure continued growth, Mark and Richardson’s other Director Troy Kincaid are focused on the team, education and training. Having grown from two full-time employees to the current nine, Richardson’s have tried various staff recruitment approaches.

“However, it always comes back to attitude,” Mark said. “Staff with the right thinking are easy to train.”

“Knowledge and its implementation is the key to agency growth. When staff are more knowledgeable, and that knowledge is used, they will perform at a higher level,” Mark says.

Training

“Undertaking further education and training ensures we keep up with the increasingly complex, highly regulated and changing environment in which agencies operate. Maintaining currency of knowledge is of paramount importance and provides a level of confidence to buyers, vendors and the community at large.

“The REIV Traineeship program was a great option for us due to its workplace delivery model. It enables staff to remain in the office and at home with their families. We simply allowed two mornings a week where the staff involved were able to study.

They would come into the office early and study 8am to 10am both days.”

Since completing the traineeship program, Mark and Richardson Real Estate have seen an enormous increase in staff satisfaction within their roles and a shift within the agency itself.

“Staff are a lot more confident. They have grown within themselves and have

Award winners: The Richardson Real Estate team at the Colac Otway Business Excellence Awards 2017.

a better understanding of the industry – a true win-win situation,” Mark says. “Our staff agree, the in-office training, easy access to trainers and the flexibility to train when it suited them, made the training a lot more enjoyable.”

To find out more about REIV Traineeships and how they could benefit your staff and agency contact the Learning & Development team on 03 9205 6666, traineeships@reiv.com.au, or visit reiv.com.au/traineeships.

Direct Debit coming soon to REIV Members Making it simple to pay your membership fees With IntegraPay it’s simple and fast to setup regular payments with your nominated bank account.

With direct debit you’ll never miss a payment and have to play catch up again.

Sit back and relax knowing your membership fees are being managed safely and securely just like your phone, gas and electricity bills.

IntegraPay provides the highest level of data security available, so you can rest assured your bank account information is in safe hands.

IntegraPay holds Payment Card Industry Data Security Standard Level 1 Compliance

The Estate Agent ❘ November 2018

29

Industry News

Business security: Seven ways to help stop workplace fraud Scammers continually find new ways to target businesses, vigilance is crucial in stopping them.

Article supplied by Macquarie Bank.

CONFIRM INSTRUCTIONS WITH CLIENTS A scam may appear as a routine email from a client, asking you to transfer money on their behalf. But really, the scammer may have taken control of your client’s email address, diverting any email you send to your client to themselves. Whenever anyone receives a request to transfer money, always ask: “Does this really sound like my client?”

Follow up with a phone call – preferably to a land line – whenever you’re in doubt or wherever there’s a reasonable amount of money involved.

Exercise special caution where the request is urgent or where the client says they’re overseas.

and telling you that they’ve detected a problem on your computer network.

Really, the scammer wants access to your bank account. Make sure everyone in your business is cautious about giving away account details. And never enter a PIN online, except on the bank’s website – and only then when you’ve navigated to the website yourself.

NEVER CLICK ON SUSPICIOUS LINKS Email scams don’t always appear as a client asking for money. More commonly, the scammer impersonates an organisation that needs you to take immediate action. For instance, it could be Australia Post with news of a parcel that needs collecting or the Office of State Revenue emailing about a speeding fine. Either way, the scammer’s goal is exactly the same – they want you to click on a link which will start downloading ransomware or another type of malware onto your computer. The results could be devastating for your business, so never click on a suspicious link.

Make sure everyone in your business is cautious about giving away account details

1

2

B E CAREFUL ABOUT GIVING AWAY BANK DETAILS One of the most effective ways scammers target unsuspecting businesses is by simply getting you or your team to hand over bank account details. This could be by setting up a fake bank login page and directing victims to it by email – under the ruse that they’ll receive some money or, otherwise, need to make a payment.

Or it could be by posing as Microsoft 3

30

The Estate Agent ❘ November 2018

UPDATE YOUR SECURITY AND ANTI-VIRUS SOFTWARE Constantly needing to update your security and anti-virus software can seem like a pain. But it’s vital if you want to have the best chance of stopping fraudsters from corrupting 4

your system. Scammers are constantly creating new and more powerful forms of malware, which out of date antivirus software simply won’t detect.

In other words, the less up-to-date your anti-virus software is, the more vulnerable your business is. So make sure yours is always updated as a matter of routine and make sure your staff do the same.

A firewall (a barrier between your computer system and external network traffic) can also boost your computer’s security. Ensuring your computer’s operating system is up to date will also add a level of security.

5 BACK-UP YOUR DATA By backing up your data regularly, you’re putting your business in the best position to minimise any damage if fraudsters access your system. That’s because, if they try to ransom your files – or to destroy or corrupt them – you’ll have another up-to-date copy of the same file which you’ll still be

able to use. The best way to make sure your files are safe is to use software that backs them up automatically. If your system isn’t capable of this, make sure everyone backs up their files as often as they can.

UNDERSTAND YOUR WORKPLACE PROTOCOLS Your efforts to stay vigilant about the threat of fraud will be sabotaged if others aren’t doing the same, so it’s important that your agency has protocols in place to deal with the threat of fraud. These should cover such things as the correct use of the internet and what to do if you’re suspicious about an email, as well as processes on how to deal with a client request to transfer.

More importantly, it’s crucial these protocols are communicated across the agency and that everyone understands their responsibilities. If you don’t have comprehensive policies in place, work with your staff to develop some and make sure everyone knows what they are.

6

SPEAK UP The sad reality is that as much fraud happens as the result of internal factors (employees) as external ones.

And, where the perpetrator is a senior employee, the amount lost is likely to be 10 times as high. If you notice something suspicious, speak up and encourage all your employees to do the same. After all, there is no better safeguard to loss than a staff member who’s prepared to call others out for doing the wrong thing.

7

AND FINALLY...

These seven steps will go some way to protecting your agency against fraud.

But because scammers keep finding new ways to target business, the best solution is always to be vigilant about detecting fraud in everything you do.

Best Practice

Commission sharing: “Oh Mr Hart, what a mess!”1

By Peter Lowenstern, Secretary REIV Estate Agency Practice Committee

W

hen restrictions on estate agents sharing commission were lifted in 20032 the accompanying disclosure regime quickly proved to be an opaque world, designed to ensnare the unwary. It remains so to this day.

Unfortunately, whoever designed the regime had no real estate industry experience. If they had, they would have known it is a dynamic world. One requiring practical regulation, not legal straight-jackets.

When an agent wants to share commission during a sale campaign, often to facilitate a vendor’s sale, a straight-jacket is applied.

To be able to share, an agent needs to obtain a fresh authority, even though the existing one is perfectly good.3 If this is not done, commission cannot be shared.4 However, if it is, the agent may be prosecuted and fined up to $16,1905.

It is mystery why a fresh authority is needed. Is it perceived ‘consumer

detriment’ or is it something else? To this day, the rationale for it is unknown.

Of course, a vendor should be advised their commission will be shared beforehand. Sharing does not mean they will pay more, just what they pay will be shared between two or more estate agencies.

Providing the advice does not require a fresh authority. It requires a simple notice be given to a vendor, at the time commission sharing is agreed. That is all. Over the years, the REIV has sought the removal of the straight-jacket and will continue to do so.

The need for conjunctional agents to provide a commission sharing statement provides another glimpse into the opaque world. Many think it’s unnecessary. It’s not an unreasonable thought. After all, it’s a conjunctional appointment, the agents are named in the authority, it’s obvious they will share the commission.

Things, however, are not as they seem. The law6 says if commission

is shared with anyone other than an agency’s employee agents or agent’s representatives, or a business partner who is an agent, the agency must provide a commission sharing statement.

In a typical conjunctional arrangement, the agencies are independent businesses. Even though it is quite apparent they will share the commission, to comply with the law, and safeguard their commission, they must provide a commission sharing statement with their authority.

1. I conic 1980’s Australian TV ad for Stainmaster© carpet.

In it a famous artist, the late Pro Hart, decorates a carpet with a dragonfly he creates with wine, spaghetti and other ingredients. On seeing it, his long-suffering Italian cleaning lady exclaims: “Oh Mr Hart, what a mess!” and, memorably, as she finishes cleaning the carpet, “nearly finito!”.

2. E state Agents and Sale of Land Acts (Amendment) Act 2003.

3. The straight-jacket is applied by section 48 (2) of the Estate Agents Act 1980: “Before obtaining a person’s signature to an engagement … the agent must ensure the person is given” (a commission sharing statement).

4. Estate Agents Act 1980, section 48 (4).

5. Ibid. A penalty unit in the 2018-2019 financial year is $16,190.

6. Estate Agents Act 1980, sections 48(1) & 48 (2).

The Estate Agent ❘ November 2018

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Best Practice

Supreme Court practise pointers for RTA notices

By Peter Lowenstern, Secretary REIV Estate Agency Practice Committee

V

ictorian Supreme Court Judge Melissa Daly recently gave property managers guidance about the wording of RTA notices, while confirming the wording of Consumer Affairs Victoria’s (CAV) precedent section 258 notice.

Her Honour had to decide if a 258 notice Newport Real Estate based on CAV’s precedent and gave to a residential tenant was valid.

In their notice, under the heading “Reason for notice to vacate”, Newport wrote: “258(1) – occupation by landlord’s family. The premises are to be occupied by my great-grandson who is dependent on me immediately after the termination date.”

In the ensuing litigation, the tenant said the notice was invalid because it did not adequately specify the reasons for giving it.

The tenant alleged the reasons did not state whether the landlord’s greatgrandson normally lived with him.

Nor did they provide relevant facts or evidence of his great-grandson’s dependence.

Her Honour rejected the suggestion the landlord needed to provide evidence in support of the notice

Watch point: The amount of detail required for notices to vacate will vary depending on the reason for the notice.

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The Estate Agent ❘ November 2018

This meant the tenant didn’t know the case she had to face or the facts she’d need to address. In short, she had been denied procedural fairness.

For Judge Daly the issue was being satisfied the amount of detail included in the notice sufficiently informed the tenant of the landlord’s reasons for re-possessing his property. The detail needed to allow the tenant to respond to relevant issues.

She was satisfied the notice was valid. Information in it complied with the requirements of the RTA. It stated the great-grandson as the immediate occupier, he was dependent on the landlord and specified the section of the RTA under which the notice was given.

Her Honour rejected the suggestion the landlord needed to provide evidence in support of the notice, or the RTA required him to identify evidence which supported his assertion his great-grandson was wholly or substantially dependent on him.

She went further, saying: “I reject any contention that evidence should be submitted by a landlord in support of reasons for any notice to vacate.” That is, while evidence does not have to be provided with a notice, if it is disputed it will be required at a hearing.

Judge Daly discussed detail to be included in notices to vacate. Without laying down hard and fast rules, she indicated relevant considerations include: t he length of the notice period – the shorter the period, the more detail needed; t he nature of the reasons in the notice. More detail will be needed if misconduct is alleged, or where a breach can be made good by a tenant; w here there may be genuine debate about the need to vacate, more detail will be required. For example, if repairs or renovations are to be carried out; f or section 258 notices, details of the family relationship between a landlord and the person who will be living in the property, at the least.

Member News

The REIV difference

Tools to help members stand out from the crowd

I

n a dynamic and competitive industry like real estate, REIV supports Members to constantly enhance their professional excellence that in turn also benefits the communities they work within.

REIV Members are well equipped with the right knowledge, resources and tools to give their clients the right professional advice and service to protect their interests.

When someone chooses an REIV Member, they choose a professional who has completed the required training; undertakes continuing professional development training; is covered by professional indemnity insurance; and, importantly, is required to follow REIV guidelines to always act ethically, honestly and fairly.

This is “The Difference” an REIV Member brings to a property transaction. It is what makes an REIV Member unique. “The Difference” is something the REIV proudly and

constantly strives to deliver with over 80 years of service to all Victorians, and it is our promise for the future.

To better convey the value that an REIV Member brings to real estate, we are updating our brand communications and launching a new Member Search portal. We are revamping the way people search for an agent.

We are updating our brand communications and launching a new Member Search portal The REIV member search is a datadriven, objective search to help people make informed decisions. Each agency and individual member has a dedicated profile page on reiv.com.au giving them an equal opportunity to showcase their expertise.

Encourage your team to become

individual REIV members, giving them a greater chance to build a profile in a competitive market. To best position yourself and your agency: M ake sure you review and update your profile information on REIV records. Members can login to the REIV website to update their details.

E nsure that your sales results are reported to PropertyData in a timely manner. Reporting of results can be automated to make sure that your reporting is always up to date. Get in touch with us to set this up today.

L ink to your REIV profile page from your website and other electronic communication to let your clients and prospects recognise your membership.

Find out more at: reiv.com.au/thedifference The Estate Agent ❘ November 2018

33

Member News

Member milestones REIV members, your businesses, employ more than 15,000 people across Victoria, in a market that handles around $76 billion in transactions.

This totals approximately 20 per cent of Victoria’s gross state product.

It is with delight that we commend Geoff Sutherland on 60 years of membership with the Institute. An outstanding commitment to both the REIV and our industry at large, congratulations and thank you Geoff.

Meanwhile, Kevin Nixon, John Wallace, John Dowling and Valda Walsh AM have all been members of the Institute for half a century.

Leighton Kidman is observing 40 years as a member, while nine agents are celebrating 30 years. More than 25 members have marked their 10-year

10 YEARS

Remarkable achievement: Geoff Sutherland has been an REIV member for six decades.

60 YEARS

Geoff Sutherland

50 YEARS

Kevin Nixon John Wallace John Dowling Valda Walsh AM

40 YEARS

Leighton Kidman

30 YEARS Christopher Dzanovski George Metaxotos Steven Tsimos Andrew Macmillan Andrea Thomson Joan Gladman Denny Darras Antonio Ciancio Neville Hurst

20 YEARS David Bourke Michael Burke Peter Gorman Sheryl Emerson Barry Maskell Darren Evans Linda Mills

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The Estate Agent ❘ November 2018

Trevor Gange Ai-Goh Ng Anthony Baliviera Christopher Price Graham Reynolds Joseph Carbone Francesco Perri Joseph Nowicki Clyde Lobo Sam Nokes Michael Hodges Danielle Kennedy Craig Parker Timothy Grant Katie Smith Jess Densley Ekaterini Moschoyiannis Kay Matthews Rocco Raco Michael Yardney Linnelle Coulthard William Wong Graham Brewer Dennis O’Connor Daniel Joyce Deborah Robinson

NEW LICENSED MEMBERS Danny Al Saad Ali Alsherifi Thava Arumugam Azad Azad Joseph Barbara Andrew Bell Sally Bell George Bornyan Mike Brown Lucas Burton Matt Carver

anniversary in the past six months, while seven have achieved two decades of membership. REIV would also like to take this opportunity to welcome the 82 new agencies, the 119 Representative members and the below-mentioned Licensed members that have joined the Institute since July 1.

Unfortunately, it is with great sadness that the REIV advises of the passing of Denis Basile, Mike Michelson, Toni Planinsek and Troy Robinson. We extend our deepest sympathy and thoughts to their families and friends.

Ken Chen Loger Chen Michael Ching Peter Clarke Adil Demirtas Vince Di Grazia Toni El-Helou Brett Fuller Doris Garofalo Yash Ghedia Ender Gok Pete Grover Geoff Hall Peter Hansen Malcolm Hautop Madhawa Hewawasam Travis Hore Andrew Ingham Anna Ioannidis Amy Jackson Chris Jarvis Rohit Joshi Rodney King James Kirkland Matthew Koster Erici Li Bojan Lojanica Andy Lou Paul Magafas Ben Malaga Rick Massese Jarrod McCabe Marina Meldrum Liza Milchman Dilshan Wijerathna Mudalige Nazmon Naher Sam Nathan Boris Papuga Amit Parmar

Nicola Parreira Yogi Patel Toby Pinhol Luigi Pomponio Sandeep Rana Rodney Roberts Michael Ryan Anthony Salce Fahey Younger Scott Younger Karan Sharma Varun Sharma Vikas Sheoran Ram Shetty Andy Shi Tim Sillcock Kalley Singh Sam Singh Vicki Sparks Shane Spiteri John Spottiswood Michelle Stephens Jason Stojanovski Nina Sutton Meingfeng Tang Justin Tong Leonie Toso Thomas Tregonning Ellie Wang Campbell Ward Tom Ward James Wardrop Michele Whelan Jason Wieremiejczyk John Wong Hollie Wood Wayne Wrigley Allen Zhang Eric Zhang Xuesong Zhang

Events

Events calendar NOVEMBER 21

Owner’s Corporation Chapter Seminar

30

Business Brokers Christmas Lunch

2019 FEBRUARY TBC

API State of the Market Seminar

MARCH 15

Business Broker’s Chapter Lunch

29

Young Agents Chapter Networking Event

APRIL

AUGUST 13

Novice Auctioneers Competition – Heats Commercial & Industrial Novice Auctioneers Competition

16

Property Management Chapter Event

17

Buyer’s Agents Chapter Breakfast

20

Novice Auctioneers Competition – Semi-final

18

Owner’s Corporation Chapter Seminar

23

Young Agents Chapter – Future Leaders Forum

27

Novice Auctioneers Competition – Final

MAY 7

Senior Auctioneering Competition – Heats

SEPTEMBER

8

Senior Auctioneering Competition – Final

12

Commercial & Industrial Marketing Awards

16

Valuation Chapter Seminar

17

Valuation Chapter Seminar

OCTOBER

JUNE 20

Commercial & Industrial Chapter Breakfast

TBC

Australasian Auctioneering Championships

24

Awards for Excellence

JULY 17

Buyer’s Agent Chapter Breakfast

NOVEMBER

19

Business Brokers Chapter Lunch

14

Commercial & Industrial Chapter Breakfast

23

Sales Chapter Seminar

21

Owner’s Corporation Chapter Seminar

26

Commercial & Industrial Economic Forecast Lunch

29

Business Brokers Chapter Christmas Lunch

Dates correct at time of printing. Topics and speakers are added online as information becomes available.

reiv.com.au/events The Estate Agent ❘ November 2018

35

Social

Industry night of nights The real estate industry gathered on October 25 to celebrate high achievers at the annual REIV Awards for Excellence at Crown Palladium. A wonderful networking opportunity, the Awards recognise the industry’s top performing individuals and agencies from various real estate disciplines. Many thanks to the 2018 Award sponsors, without their ongoing support events such as the Awards would not be possible.

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The Estate Agent â?˜ November 2018

Social

The Estate Agent â?˜ November 2018

37

Social

REIV WOULD LIKE TO THANK THE FOLLOWING PARTNERS FOR THEIR ONGOING SUPPORT Gold partners

Bronze partners

Event partners

38

The Estate Agent ❘ November 2018

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