The journal of the real estate institute of victoria
reiv.com.au
Seeds of success Farm life grows passion MEMBER news Magnificent milestones
The Estate Agent
july 2016 Volume 80 No.2
House rules The benefits of proposed legislation
Crowning glory
The best in the business present their ideas at Ignite 2016
Hammer time
Five bid for top honour as auctioneer battle heats up
Bare essentials
How short-term tenants energise vacant stores in shopping precincts
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Split System installations and cleans
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Smoke Alarm testing and inspection
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Gas heater installations and Carbon Monoxide testing
Contents
20 ‘It’s definitely one of the hardest auctions to undertake because you are being judged by your Adrian Butera peers’
Cover story Top auctioneers make bid for industry’s premier award
Features
14 18 26 28 30
Five finalists to be put to the test
Gurus share their insights and wisdom Eight industry leaders and motivators will headline this year’s REIV annual conference
Kevin found his true calling A young Kevin Biggin had all the right moves as a square dance caller, but then love intervened
China keeps us safe Asian investment protected Australia from impacts of GFC
On the road to recovery Short-term tenants are breathing new life into vacant shops on busy streets
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Farm life nurtured a passion Gary Driscoll recognises the lure of city life for the younger generation, but sees great opportunities in regional centres
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Contents
5 President’s Report 7
Acting CEO Report
9 Bulletin 12 Review 22 Profile 24 Market Update 32 Best Practice 34 Events Calendar 36 Member News
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37 Obituary
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32 22
EA
Publisher REIV 335 Camberwell Rd, Camberwell, Victoria 3124 Editor Jasmine Walters jwalters@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.
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The Estate Agent â?˜ July 2016
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 Joseph Walton President REIV
The reward of work well done is the opportunity to do more…
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iStock
ollowing an extended tenure of 16 years as CEO of the REIV, Enzo Raimondo has stepped down from the organisation, one in which he has invested an enormous amount of time and energy. As the REIV’s longest-serving CEO, Enzo’s contribution to the Institute is clear and one deserving of the applause and gratitude of its members. On behalf of the Institute, I would like to thank Enzo for his significant contribution to the REIV and the real estate industry. Under his leadership, the REIV has strengthened its public profile and expanded its suite of membership products and services. Enzo has been a driving force behind the launch of multiple digital products, including propertydata.com.au and realestateview.com.au. Importantly, the positive legacy that Enzo leaves us with extends to us the opportunity to build upon the work well done … and the opportunity to now do something more. The REIV now moves into a time of transition with former president Geoff White assuming the role of acting CEO, while the board moves through a comprehensive recruitment process through which it hopes to identify and establish the next great CEO for our organisation. Geoff’s move into the role of acting CEO enables the board to ensure continuity within the Institute while it moves through the important phase of engaging a permanent CEO. Well known to many, Geoff comes into the role extremely well credentialed having been involved with the REIV for more than 30 years – a period within which he has served as president on two occasions. Following Geoff’s resignation from the position of president, the REIV board has elected me to fulfil the role of president until the conclusion of the current term.
Making gains: The Real Estate Institute of Australia has actively campaigned for negative gearing to remain in its current form.
In addition to my appointment, Frank Hellier has been appointed senior vice president and Richard Simpson vice president.
On behalf of the Institute, I would like to thank Enzo for his significant contribution to the REIV and the real estate industry As many would be aware, board elections are underway with three positions available – two in metropolitan Melbourne and one in regional Victoria. One of these positions follows the retirement of Richard Earle, who has served a maximum term of nine years as a director. Richard, a highly regarded agent and director at Jellis Craig, has extensive industry experience and has been a
significant contributor and valuable member of the board. Members will have received nomination forms for the role of REIV directorship. Following the nomination process, it is expected the election process will begin later this month. While there has been internal adjustment at the REIV, the industry is also in the midst of substantial change with Consumer Affairs Victoria (CAV) undertaking the biggest review of property legislation in the state’s history. The reviews encompass the Sale of Land Act 1962, the Estate Agents Act 1980, the Residential Tenancies Act 1997, the Owners Corporation Act 2006, and the Conveyancers Act 2006. Advocacy is one of the REIV’s key functions and the Institute has actively Continued on page 6
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President’s Report
Industry change: Consumer Affairs Victoria is undertaking the biggest review of property legislation in the state’s history.
Continued from page 5
responded to multiple issues papers across the two reviews – Consumer Property Law Review and the Residential Tenancies Act Review. In preparing our responses, the Institute has consulted with parties comprising senior REIV members and sought input from the broader membership. Options papers are expected in the coming
months with the reviews likely to be ongoing until early next year. In the lead-up to the federal election, the Real Estate Institute of Australia along with the REIV and other REIs actively campaigned for the retention of negative gearing in its current form. The REIA’s campaign has received significant media coverage and involved a range of marketing collateral
including a custom designed website (negativegearingaffectsyou.com), media releases, posters and website banners. I’d like to thank REIV member agencies who have supported this important campaign initiative. Over the course of the next three months, I look forward to representing the interests of all REIV members to the best of my ability.
Like to sell your rent roll? Right now is the perfect time to sell. If you would like a confidential discussion about your rent roll call me today and together we can plan your selling strategy. We have a wide range of genuine buyers ready right now to negotiate confidentially and discreetly. Ross Hedditch Telephone: 9380 5999 Mob: 0418 321 952 rhedditch@bdhsolutions.com.au bdhsolutions.com.au 6
The Estate Agent ❘ July 2016
BDH SOLUTIONS ROSS HEDDITCH
REIV 2
CEO Report Geoff White Acting CEO REIV
A remarkable time as market continues to perform strongly
Stu Morley
Solid market: High auction volumes in winter; from top right, agents Luke Banitisiotis and Glenn Rea.
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s previously advised I assumed the position of acting CEO during the transitional period following the announcement Enzo Raimondo was stepping down to move into a new position in the property sector. I would like to express my thanks to Enzo for helping me during the transitional period. Enzo has made a significant contribution to both the Institute and the industry over many years, and has been a wonderful asset to the Institute over that time. The past two years of Enzo’s tenure has seen one of the strongest markets in memory for Victoria. While the market this year is yet to reach the remarkable heights of 2015, the Victorian property sector remains solid. In fact, the last few weeks in June saw one of the strongest finishes to the financial year in the state’s history, for the Melbourne market in particular. A range of factors,
including the federal election and upcoming school holidays, resulted in record auction numbers for the last fortnight in June with more than 2,000 auctions scheduled across the city. High auction volumes in winter indicated ongoing vendor confidence while solid
The last few weeks in June saw one of the strongest finishes to the financial year in the state’s history clearance rates signalled buyer demand coupled with a decline in stock on market. Meanwhile, new legislation governing how agents quote residential property is set to pass through Parliament later this year. The REIV has been heavily involved in drafting this legislation, with extensive consultation with the Minister for
Consumer Affairs – at that stage Jane Garrett – as well as the Premier’s office. While Minister Garrett has now resigned from her Cabinet position, the REIV will seek to build a productive relationship with her successor, the Hon. Marlene Kairouz MP. While it has been a busy few months for the policy sector, the REIV has also held many events and seminars across Victoria, including a state-wide divisional tour. Communications and Policy Manager Paul Bird and I toured the state earlier this year, gaining valuable feedback on key member services and input to submissions on several Government reviews. Given the success of the divisional meetings, another tour is being planned for later this year. In more event news, the REIV’s auction competitions – senior, novice and commercial – are now underway Continued on page 8
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CEO Report
Continued from page 7
with the Victorian Auctioneer of the Year finals being held later this month – coinciding with the REIV’s annual conference. I’d highly recommend members get behind this great event with both the winner and runner-up given the opportunity to represent Victoria at the Australasian Auctioneering Championships. Among this year’s finalists are last year’s winner Tom Roberts and the Australasian winner Harry Li. Taking place July 24-25, REIV Ignite features an impressive line-up of keynote speakers including former David Jones CEO Paul Zahra. A leading force in the Australian retail sector for more than 30 years, Zahra is credited
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The Estate Agent ❘ July 2016
Hot topics: Foreign investment and dynamics of a multicultural market will be key topics at REIV Ignite.
with leading the successful digital transformation of premium retailer David Jones. Zahra is joined by seven outstanding keynote speakers from a
The two-day conference will deliver a valuable insight into marketing and digital strategies diverse range of industries including real estate trainer Josh Phegan, TV personality Todd Sampson and digital disruption expert Steve Sammartino. Additional breakout sessions will focus on topical industry issues
including foreign investment, the dynamics of a multicultural market and prospecting to win in business. The two-day conference will deliver a valuable insight into marketing and digital strategies to drive business and personal growth. A comprehensive conference preview is available on page 14 of this issue. After a long and continuous involvement with the REIV over many decades, it is a great pleasure and an honour to be in the new role, and I look forward to representing the REIV in a range of forums and advocating members’ interests moving forward.
Bulletin
non-resident sellers need clearance note
New rules affecting non-Australian residents selling property valued at $2 million or above are now in effect. As of July 1, all vendors will need to apply for a ‘clearance certificate’ from the Australian Taxation Office (ATO) and where this is not provided by settlement, the buyer will be required to withhold 10 per cent of the purchase price and pay it to the ATO. This new tax applies to land, buildings, residential and commercial property. www.ato.gov.au
two STAFF members CELEBRATE 30 YEARS Two REIV staff members are celebrating 30 years with the Institute this year. Cathy Beach, Secretary to the Board and HR Manager, and Stationery Supervisor Betty Kenny have both been employed at the REIV since 1986. Cathy is one of the longest serving REIV staff members, second only to Joan Pottenger, and has worked alongside four CEOs – Brian Robinson, Ian Bremner, Norman Huon and Enzo Raimondo. Among her many career highlights, Cathy has been actively involved in the REIV Charitable
Foundation, overseen ongoing updates to the REIV Constitution and worked on the FIABCI International Congress, held in Melbourne in 1988. Betty was originally employed at the REIV-owned Multilist Bureau in Burnley as a supervisor of the despatch area and a standby photographer. The division was eventually incorporated into the Camberwell head office in 1991, where Betty has since held multiple roles. Congratulations to both Cathy and Betty on reaching this important milestone.
ASBESTOS GUIDE FOR property managers
Worksafe Victoria has released a guide on addressing and managing the risk of asbestos to assist property managers. The guide includes the legal duties of property managers and building owners and coincides with Worksafe personnel undertaking inspections in a range of commercial and residential premises. www.worksafe.vic.gov.au
new short-stay laws affect landlords
The Andrews Government has introduced new legislation under the Owners Corporation Act, allowing residents to seek redress from landlords of short-stay accommodation, such as Airbnb. Under the reforms, apartment owners could be liable for any damage, noise or loss of amenity caused by their guests with VCAT granted greater powers to award compensation up to $2,000 to affected parties. A `three-strike’ policy will see re-offending owners prohibited from renting out their property for short-term accommodation. “This is a common-sense approach which protects residents’ rights and supports our booming shared economy which attracts tourists from all over the world,” the Government said in a statement. The Estate Agent ❘ July 2016
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Bulletin
Agents alerted to new CHANGEs in COOLING OFF NOTICES A recent decision of the Victorian Supreme Court requires agents to be specifically authorised by their vendors to receive a cooling-off notice. With this in mind, the REIV has changed its online sale authorities to provide the authorisation. Hard copy authorities will be amended as they are reprinted.
Consumer affairs watchdog acts on dishonest spruikers
joint effort to counter outlaw gangs Victoria Police is working alongside the REIV to inform property managers of Outlaw Motorcycle Gangs (OMCG) using industrial premises for clubhouses and criminal activity. Over the past 12 months, Victoria Police has identified a large number of industrial premises rented by OMCG and used as clubhouses and various meeting locations. Once these premises are inhabited
by OMCG members, they are often modified with further construction and fortified against police intrusion. As a result, properties are often damaged with owners being left responsible for repairs. The REIV will be running a seminar with Victoria Police on August 27, highlighting ways to identify and prevent this activity.
Consumer Affairs Victoria (CAV) is responding to a rise in property investment spruikers, recently taking court action against two offenders with a third investigation underway. These spruikers entice potential buyers to ‘free’ seminars, only to subject them to high-pressure sales tactics to buy merchandise or buy property sight unseen. Seminar attendees have also been encouraged to sign up to risky ‘rent-tobuy’ schemes, or pressured to invest in developments in which the spruiker has an undisclosed interest. During a national campaign last year, CAV issued alleged spruikers with seven substantiation notices and 17 warning notices. To build on this work, consumer affairs agencies have launched a national campaign to alert people to the pitfalls of rent-to-buy arrangements.
REIA: NATIONAL HOUSE PRICE RISES TAKE A BREATHER
New data by the Real Estate Institute of Australia (REIA) shows the weighted average capital city median house price fell 1.3 per cent in the first three months of the year to $684,601 – the slowest annual growth in the past three years. Other dwellings also decreased in the March quarter, down 1.1 per cent to $537,591. 10
The Estate Agent ❘ July 2016
REIA President Neville Sanders attributes the decline to measures designed to curb investor activity. “Increases in the median house price in Melbourne and Adelaide were outweighed by decreases in other capital cities,” he says. “For other dwellings, Darwin was the only capital city to record an increase over the quarter.”
More information on high-risk property investments is available on the CAV website www.consumer.vic.gov.au
Budget
Budget on track to continue growth Melbourne’s outer suburbs are expected to benefit from investments in infrastructure
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he 2016 State Budget contained significant infrastructure and investment initiatives for Victoria, which will have flow-on benefits for the real estate sector. The Victorian Government committed $2.9 billion for Melbourne’s Metro Tunnel, $1.46 billion for the Western Distributor, $924 million for new and upgraded schools and $982 million in improvements to the state’s health system. Meanwhile, the Federal Government in its May Budget also made major investment commitments to infrastructure in Victoria, allocating $594 million for Victoria’s inland rail project and $857 million for the Metro Rail Project. A total of $1.5 billion is earmarked for the Monash Freeway, Murray Basin Freight Rail and M80 Ring Road as well as urban and regional roads. Given the growth in Melbourne’s
outer suburbs in the past two quarters, improved road and rail infrastructure is expected to drive continued price growth in areas further from the city and within commuting distance of the CBD.
Improved road and rail infrastructure is expected to drive continued price growth in areas further from the city In other Victorian Budget initiatives, the Andrews Government is investing in streamlining the planning process, including creating an online portal for applications, improved zone controls and faster approvals in commercial and industrial zones. In its second Budget, the State Government also announced changes to land tax and stamp duty for foreign
buyers of residential property, ensuring these purchasers contribute to ongoing infrastructure development and amenities. And in a vital commitment to the property sector, the Federal Treasurer in his Budget speech reiterated that his Government will not remove or limit negative gearing, as this will increase the tax burden on Australians trying to provide a future for their families. The capital gains tax was also left unchanged. This decision, supported by the REIV and the REIA, recognises that the current arrangements increase the supply of housing for the growing population, maintain rents at affordable levels and ease the burden on social housing. The Federal Budget also delivered an extension of small business concessions, modest tax cuts and the retention of the current arrangement for taxation of property investments; which will ensure the property sector remains an important driver of economic growth. Victorian rural communities will see the benefits of the Federal Government’s investment in regional rail and water infrastructure. Additional funding from both Governments was also allocated for essential services such as education and health.
2016 budgets AT A GLANCE State Budget ❚ $2.9 billion for Melbourne Metro Tunnel ❚ $1.46 billion for Western Distributor ❚ $924 million for education ❚ $982 million for health ❚ Streamlined planning process ❚ Changes to land tax and stamp duty for overseas buyers
Ticket to ride: The Victorian and Federal Budgets have focused on road and rail infrastructure.
Federal Budget ❚ $594 million for inland rail project ❚ $857 million for Metro Rail Project ❚ $1.5 billion for other rail and road projects ❚ More small business concessions ❚ Modest tax cuts for middle income earners
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Review
Security: REIV has called for risk-weighted insurance premiums for owners corporations and civil penalties for breaches of OC rules.
Working together for change REIV is working to benefit members as the State Government examines property legislation
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he Andrews Government is currently reviewing multiple pieces of legislation that relate to the buying, selling and leasing of property. These fall under two umbrellas: the Consumer Property Law review and the Fairer Safer Housing review. Consumer Affairs Victoria is conducting both, which are currently in the final stage of issues papers. The REIV has consulted with members and chapter committees before responding to seven issues papers this year on members’ behalf. The Consumer Property Law Review focuses on four key pieces of property legislation including the Estate Agents Act 1980, Sale of Land Act 1962, Owners Corporations Act 2006 and Conveyancers Act 2006. The review’s three issue papers – Conduct and institutional arrangements for estate agents, conveyancers and owners corporation managers; Owners corporations; and Sale of land and business – have already closed for public consultation. An options paper for this review is expected in coming months. The first issues paper in this review primarily focused on the Estate Agents
and Owners Corporations Acts, and considered the current training, licensing and conduct of agents and owners corporation managers. The REIV provided input and advocated for changes to Section 55; harsher penalties for unlicensed agents; higher training standards
REIV has advocated strongly on behalf of landlords and property managers to ensure any proposed legislative changes are balanced for estate agents and owners corporation managers; mandating professional indemnity insurance and continuous professional development; modernisation of the Act; and amendments to Section 49A and 50. The Owners Corporations issues paper looked at insurance, abandoned goods, short-stay accommodation and maintenance of common property. The REIV’s submission called for riskweighted insurance premiums for owners corporations; civil penalties for breaches of owners corporation rules;
Review
the introduction of model rules relating to smoking; and opposed individual lot owners being able to opt out of OC insurance policies. The last issues paper in this review covered the Sale of Land Act, and addressed online auctions, coolingoff provisions and off-the-plan sales. In its response paper, the Institute supported estate agency business not being conducted before 1pm on Anzac Day; the regulation of online auctions by a licensed estate agent; repealing the due-diligence checklist; and considerable changes to the statement by a vendor of a small business. Members can access all three policy papers on the REIV’s website. The Plan for Fairer Safer Housing is a comprehensive review of the Residential Tenancies Act 1997 (RTA). To date, four issues papers in this review have been finalised and a further two papers are due to be released shortly. The issues papers – Security of tenure; Rents, bonds and other charges; Rights and responsibilities of landlords and tenants; and Dispute resolution – followed a consultation paper, issued in mid-2015, called Laying the Groundwork. Given the prominence of the Tenants Union of Victoria in this sector, the REIV has advocated strongly on behalf of landlords and property
On notice: REIV has called for the retention of the no-specified reason notice as well as a reduction in the notice period.
managers to ensure any proposed legislative changes are balanced. As part of this process, an RTA Working Group – comprising senior property managers – has been established. The Security of Tenure issues paper considered the feasibility of long-term tenancies, rent increases and tenancy terminations. In response, the REIV called for the retention of the no specified reason notice and a reduction in the notice period, from 120 days to 90 days, to align Victorian legislation with at least one other state. The Institute highlighted tenancy durations are a reflection of market
Vendors must provide more information New legislation affecting the way agents quote residential property is in its final stages and is expected to be introduced to Parliament in the coming months. The REIV has worked alongside the Government in drafting this legislation, which is designed to improve transparency in the market. Under the changes, agents will be required to produce an information sheet for buyers, containing the suburb’s median house price, three comparable sales and an agent’s estimate. Agents can use median house price data from either of the past two quarters, displaying either an annual or quarterly figure. As part of the legislation, agents will be required to state the source of their data. In Melbourne, agents are required to provide three comparable sales within a finite radius of the property for sale,
which have sold within the preceding six months. In regional Victoria, the comparable sales must be within a broader radius of the property and sold within the preceding 18 months. These comparable sales must take into account the standard, condition and location of the property. In instances where the agent believes there are fewer than three comparable sales, the agent must state that there are insufficient comparable sales within the required parameters. The indicative selling price or agent’s estimate can be a single price or a price range; however the range must not be greater than 10 per cent. When a vendor’s selling price is known this figure will replace the agent’s estimate. The REIV will be providing more information for members as the legislation is introduced.
demand and that there is minimal demand from either tenants or landlords for mandated long-term leases. In its submission, the TUV made 10 recommendations relating to tenancies which, if implemented, were likely to make it difficult for a landlord to regain possession of their property. The Rents, Bonds and Other Charges paper considered the provision and regulation of bonds as well as the frequency of rent reviews. In its submission, the REIV strongly supported the implementation of an additional pet bond; called for the notice of rent arrears to be reduced from 14 days to seven; and rejected the claim that the availability of landlords’ insurance affects the need for exemptions from maximum bond amounts. The issues paper on Rights and Responsibilities of Landlords and Tenants focused on tenant databases, breach notices, unfair treatment and discrimination. The REIV’s response outlined the necessity of tenancy databases in establishing the suitability of a tenant; supported the current sevenday timeframe to remedy breaches of the Act; and suggested NSW legislation be adopted in relation to compensation for break lease situations. Finally, the Dispute Resolution issues paper, released in May, detailed the current methods available to stakeholders in resolving breaches of the RTA. In its submission, the institute highlighted the inconsistency of VCAT decisions and the need for more timely dispute resolution methods. The reviews are ongoing to late this year (CPA review) and early 2017 (RTA review). The Estate Agent ❘ July 2016
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Conference
Gurus share their insights and wisdom Eight industry leaders and motivators will headline this year’s REIV annual conference
Crown Conference Centre: REIV Ignite is taking place 24-25 July.
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ight highly regarded keynote speakers from a diverse range of industry sectors will headline this year’s REIV annual conference. Featuring two days of intensive sessions, Ignite 2016 will also host the Senior Auctioneer of the Year final, special interest break-out groups and a gala dinner. Ignite 2016, being held at Crown Conference Centre on July 24-25, will also coincide with the REIV’s 80th anniversary celebration. Those who attend the two-day conference will earn 16 CPD points – the equivalent of a member’s standard annual requirement. REIV acting CEO Geoff White says the event will look to the future of the industry with an impressive program. “While 2016 is a milestone year for the Institute, this year’s conference is forward-looking and will provide attendees with insights into strategies and opportunities for development,” he says. Keynote speakers include Paul Zahra, Todd Sampson, Daniel Flynn,
One of Daniel Flynn’s mottos is: ‘Impossibility is only someone’s opinion, not fact’. This has seen him navigate the team at Thankyou through obstacles in the start-up journey 14
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Mark McCrindle, Michelle Bowden, Jane Caro, Steve Sammartino and Josh Phegan. Paul Zahra How business should deal with a changing environment – the digital influence, how business should reflect this through its people, process and culture Heading the 2016 conference is Paul Zahra, former CEO and Managing Director of premium department store David Jones. A leading force in the retail sector for more than 30 years, Zahra has also held senior positions with Target Australia and Officeworks. Under his leadership, David Jones evolved from a traditional bricks and mortar store to a contemporary omni-channel retailer, resulting in the company’s average online order increasing to three times the average in-store transaction. The in-store experience underwent a complete reinvigoration under his direction. The Point of Sale system was replaced entirely and more physical fashion and service concepts were integrated, such as Bridal at David Jones, Personal Shopping Suites, Gift Gurus and Style Advisers. Zahra is credited with leading the digital transformation of one of the
Conference
Brains trust: Former David Jones CEO Paul Zahra (above) and TV personality Todd Sampson (right) are among this year’s speakers. Also pictured, Crown Conference Centre break out areas.
oldest department stores in the world, enabling it to achieve market-leading momentum, resulting in financial stability for the business during the worst retail conditions in 25 years. He is a Global Retail Advisory specialist, advising boards and companies in a variety of areas, including retail (both traditional and start-ups), leadership, transformational change and diversity. Zahra is also a member of the PwC Diversity and Inclusion Board and a Non-Executive Director of the Pinnacle Foundation, which provides scholarships and mentoring to disadvantaged LGBTI youth. Todd Sampson Brain power Star of hit TV show The Gruen Transfer, Todd Sampson is the non-executive chairman of leading creative advertising agency Leo Burnett. He is also the writer, host and human guinea pig of the award-winning Discovery Science series, Design My Brain. The series is based on the long-held premise that our brains are fixed, developing rapidly until age seven and then steadily declining from age 30. Sampson will take attendees behind the scenes of this scientific journey,
providing practical tools, strategies and techniques to improve your brain. Outside of work, Sampson is an accomplished mountaineer and has climbed Mount Everest unguided. Daniel Flynn Competing in a market dominated by big enterprise and the Thankyou group At the age of 19, struck by global poverty and excess consumer spending, Daniel Flynn and a group of his friends founded Thankyou Water (now Thankyou). Thankyou is a social enterprise that exists to empower Australians to change the world through simple everyday purchases. Through the sale of more than 34 consumer products across water, body care and food categories, Thankyou has donated more than $3 million to funding safe water access, hygiene and sanitation programs, and food aid in 16 countries.
As of July last year, Thankyou had funded safe water access to 170,177 people, hygiene and sanitation programs for 231,582 people and 19.1 million days of immediate food aid on top of its long-term food solutions to people in need. One of his mottos is: “Impossibility is only someone’s opinion, not a fact.” This has seen him navigate the team at Thankyou through obstacles in the start-up journey as well as two bold and ambitious marketing campaigns to get the range successfully stocked in prominent national retailers, including Coles and Woolworths. Mark McCrindle Perspective on the changing market/ demographics – the changing face Mark McCrindle is an award-winning social researcher, best-selling author, TedX speaker and influential thought leader. He is regularly commissioned to deliver strategies and advice to Continued on page 16
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Conference
Continued from page 15
the boards and executive committees of some of Australia’s leading organisations. McCrindle’s knowledge of key social trends as well as his engaging communication style places him in high demand in the press, radio and television programs such as Sunrise, Today, The Morning Show, ABC News 24 and A Current Affair. His research firm counts more than 100 of Australia’s largest companies as its clients and his highly valued reports and infographics have developed his regard as a data scientist, demographer, futurist and social commentator. Michelle Bowden Speak Up and Influence People An authority on persuasion and presenting in business, Michelle Bowden has been consulting for a list of blue chip international clients for the past two decades. Bowden is one of only 35 female Certified Speaking Professionals (CSPs) in Australia – the highest designation for speakers in the world – and for the past eight years, she has been nominated for the Educator Award for Excellence by the Professional Speakers Association (PSA). Bowden is the co-creator of the PRSI – a world-first psychometric indicator 16
The Estate Agent ❘ July 2016
Wise words: Clockwise from above, Daniel Flynn, a Crown Conference Centre break out area, Mark McCrindle and Michelle Bowden.
that reports on your persuasiveness at work. A master educator, she believes learning must be theory-based, filled with laughter and highly interactive in order to transform. In addition to these impressive credentials, Bowden is author of the best-selling internationally released How to Present, ultimate guide to presenting ideas and influencing people using techniques that actually work. Jane Caro How to hit your target Jane Caro wears many hats – novelist, author, mentor, social commentator, columnist, workshop facilitator, speaker, broadcaster and an awardwinning advertising writer. The common thread running through her career is a delight in words and a talent for using them to connect with other people, a skill she developed and honed during her successful 35
years as an advertising writer. During her career she won many national and international awards and was sought after as a judge of those same awards. Caro now runs her own communications consultancy firm. The author of eight books, Caro is in demand as a speaker and workshop facilitator by a diverse range of organisations spanning both public and private sectors. She is also sought after by media to comment on issues from advertising and marketing to education, feminism, women and work, and parenting. She writes regular columns in the Sun Herald, Leadership Matters and Women’s Agenda. Caro appears weekly on Sunrise and Weekend Sunrise. She also appears frequently on The Drum and Q&A. She is currently making her second four-part TV special with ABC Compass. She was also a regular panellist on the ABC’s top rating program The Gruen Transfer for six years.
Conference
Steve Sammartino The Great Fragmentation… Steve Sammartino is a marketing expert and a thought leader on technology and business. With stints in multiple large companies including the world’s biggest advertising agency and the world’s biggest consumer goods company (both at director level), Sammartino has also founded and sold start-up businesses. Director of Australia’s first new car company in more than 30 years (www.tomcar.com.au), he has also been involved in more eccentric projects including orbiting a Lego space shuttle around Earth. Sammartino’s book The Great Fragmentation: And Why the Future of All Business is Small discusses the digital revolution and what it means for business. His blog has been in Australia’s top 10 for the past five years. Josh Phegan Leadership in real estate Josh Phegan is widely considered as the “go-to” speaker, trainer and coach for high performance real estate agents and agencies worldwide. An international speaker, trainer and coach, Phegan is consistently hired by progressive agencies for his out-of-thebox thinking, sales skills and business process improvement concepts. Last year, he spoke at more than 200 events across Australia, New Zealand and the United Kingdom, including the Australasian Real Estate Conference, The Real Estate Leadership Conference and the Estate Agency Of The Year Awards in London. He also coaches more than 180 individual agents. Key topics include how to run highly successful estate agency businesses, from rapid growth and improvement at a boardroom level, to all the skills required to take an individual sales agent to over 100 sales per year. Phegan says his true passion is finding “unique, systematic and dynamic methods” to accelerate business performance. He has released a range of professional resources such as Prospecting School, List Sell Negotiate, Real Estate MasterClass and The Real Estate BluePrint.
Talking heads: Clockwise from top, keynote speakers Jane Caro, Josh Phegan and Steve Sammartino.
Conference break out sessions Time
Presenters
Leasing & Managing: Changes that will impact on Property Managers and Owners Corporations
1.15pm
Panellists: Sophie Lyon, Leah Calnan, Kate Yeowart; MC: Paul Bird, REIV
What It Takes to Win
1.15pm
Josh Phegan
Beyond Innovation
1.15pm
Panellists: Adrian Butera; Ash Martin; Emma Buxton
Property Management – setting up for success
3.30pm
Panellists: Regina McInnes, Sabina Aldouby, Josie Stewart, Dylan Emmett; MC: Sophie Lyon
Listing & Selling: Major changes that will impact sales agents and auctioneers
11:55am
Panellists: Phil Musat, Andrew Meehan, Paul Bird, REIV; MC: Geoff White, acting CEO REIV
The dynamics of working in a diverse market
11:55am
Panellists: Ryan Di Natali (Thomastown), Damian Moore (Glen Waverley), Eddie Van Pamelen; MC: Michael Choi
Gearing up your business for growth
11:55am
Panellists: Dean O’Brien (O’Brien Real Estate), Simone Bullen (Simone Bullen Property Management), Paul Stoner (Biggin & Scott); MC: Tonya Davidson – Novice Auctioneer of the Year
day 1 – sunday 24th july
day 2 – Monday 25th July
The Estate Agent ❘ July 2016
17
Agents
Launching pad: The original office of Biggin and Scott in Chapel Street, Prahran. The business has since expanded to 35 agencies across Melbourne and beyond.
Kevin found his true calling A young Kevin Biggin had all the right moves as a square dance caller, but then love intervened and real estate took the lead
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The Estate Agent ❘ July 2016
A
s a young man, Kevin Biggin had no burning desire to work in real estate. But looking back over his 52-year career, which has seen him rise to the pinnacle of the industry, he has no regrets. In fact, he talks excitedly about plans for further business expansion. Biggin confesses it was love that led him into his real estate career. “I married the boss’s daughter,” he says with a smile. As a young man, Biggin was dating Jenny Scott, the daughter of Thomas G. L. Scott, who had taken over his father’s Prahran agency. Thomas Gemmell Logan Scott (TGL Scott senior) had opened the office in 1880. Biggin, who worked in the printing industry, was busy enjoying life. He met Jenny at the Bonbeach
Lifesaving Club in Victoria when he was a “caller” at the local square dance. Square dancing was very popular in the 1950s and ’60s and it was the caller’s role to prompt the dancers. Biggin, who played guitar and sang, had picked up calling and was in demand at three local clubs including Doric Hall in South Melbourne, the “home” of great square dancing caller Bill McGrath. Around that time, he was called up for compulsory national service and assigned to Ennogera in Brisbane. However, Biggin secured a transfer to Puckapunyal, still some way from Melbourne but closer than Queensland. On his return from national service, Jenny’s father offered him a job in his office at 256 Chapel St. By then, the Scott name was entrenched in the local real estate industry.
Agents
Proud lineage: Kevin Biggin (right), the talented dance caller who changed his tune to real estate, and Thomas Gemmell Logan Scott (far right), the man who started a proud family business.
“Grandpa Scott was immersed in the community,” Biggin says. “Prahran and Richmond were two of Melbourne’s oldest suburbs and a hive of activity. Old photos show people walking shoulder to shoulder along Chapel Street while horses, carts and jinkers filed down the street. Then came the cable trams.” Grandpa Scott, a Justice of the Peace, was elected mayor from 1912-13 and his portrait still hangs in the City of Stonnington council offices. He oversaw the expansion of the Prahran and Malvern Tramways system, which opened in 1910, and in just a few years had covered 48km of track. “My father-in-law was born in 1900 and went to work in the business with his father,” Biggin says. “The area was thriving.” After his national service was completed, Biggin joined the business, enrolling in a real estate and valuations course. In 1960, he and Jenny were married and in 1968, his father-in-law offered him a partnership. He accepted and at Thomas Scott’s insistence, the business name was changed to Biggin and Scott – a name now synonymous with the industry. “He said it sounded much better than Scott and Biggin,” Biggin says. “Back then I was selling five houses a week. Most were priced around
The founder: Thomas Gemmell Logan Scott
£1200 and all were sold on terms, generally with £250 or £500 deposit and balance in five years on terms. Some of the properties were auctioned and it was nothing to have four or five auctions each Saturday.” Biggin has lost count of the number of auctions he has run but it numbers in the thousands. He says one of the biggest changes with auctions today are that they are held on any day, with
‘The basic philosophies haven’t altered but … technology and communication have made our industry better’ twilight auctions popular. While he was studying, Biggin met brothers Barry and Tony Arnold and for about four years the two families amalgamated their businesses, however in 1968, they went their separate ways. Biggin’s vision for expansion saw offices open in Malvern and St Kilda. More followed. He can still list the names of all of them including Ballarat and Daylesford. Proud that the business name stretches across Melbourne and beyond, with 35 agencies, he wants to see more offices open in regional areas. “I have always had a plan to see us expand to more parts of regional Victoria which have great potential,” he says. These days his involvement is as a
director of Biggin and Scott Corporate and Biggin and Scott Land, with offices on St Kilda Road. Biggin is philosophical about the state of the industry today. While he believes real estate prices will remain at a similar level to what they are now, he says “there will always be fluctuations”. “Actually, I really believe that it has never been as easy to borrow money at such a low interest rate as it is today. It was difficult in 1967 and then in the 1980s when the interest rate was 17-18 per cent. “Back then, our parents and grandparents helped us get our first home and that attitude still exists today. “But today’s prices still blow me away!” Biggin says the biggest changes in real estate have been in technology and communication, proudly admitting he has embraced computers and smart phones. “The basic philosophies haven’t altered but changes to our processes through technology and communication have made our industry better.” A 50-year member of the REIV, he is also pleased to see the change in gender imbalance with as many women in property management and sales as men. Two of his four daughters, Trudy and Nicki, followed in his footsteps and with 10 grandchildren, you can be sure the family tradition will continue. The Estate Agent ❘ July 2016
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Cover story
Top auctioneers make bid for industry’s premier award Five finalists to test their skills in shootout for 2016 Auctioneer of the Year
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he 2016 Senior Auctioneer of the Year Competition is well underway with one of the strongest heats in recent years. Last month, 19 experienced senior auctioneers battled it out for a spot in the finals, including last year’s winner Tom Roberts and runner-up (and Australasian winner) Harry Li.
Held at the REIV Conference Hall in Camberwell, competitors conducted a mock auction on a home and suburb of their choice with complicated bidding sequences and challenging scripted questions from attendees. Competitors were tested on their knowledge of auction rules, foreign investment legislation and due diligence requirements in front of
And the bid goes to?: Clockwise from top left, finalist Spiros Karagiannidis, Michael Choi, Hugh Francis and finalists (from left) Michael Richardson, Michael Wood, Tom Roberts and Harry Li.
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The Estate Agent ❘ July 2016
Cover story
well-known judges Adrian Butera, Scott Patterson and Linda Wooley. As part of the script, contestants were asked what level of additional stamp duty a foreign buyer would be required to pay as of July 1 – one of the most difficult questions in the competition’s history. Judges also took into account the auctioneer’s accuracy, auction style, confidence and connection with the crowd. Butera, the Auction Chapter chair and chief judge, is a past winner of the competition, taking home the title in its inaugural year in 1998. He says the standard of this year’s competition was extremely high with many contestants improving on past performances. “There were elements of each performance which were exceptional but unfortunately we have to judge the
whole performance,” he says. While many of this year’s contestants are experienced auctioneers, Butera says the competition is tough regardless of how many auctions you’ve conducted. “It’s definitely one of the hardest auctions to undertake because you are being judged by your peers.” The five finalists – Harry Li from iSell Group, Nelson Alexander’s Spiros Karagiannidis and Tom Roberts, Michael Richardson from Fletchers, and Marshall White’s Michael Wood – will now compete for the prestigious title of 2016 Victorian Auctioneer of the Year. The grand final is being held on July 24, during this year’s REIV annual conference with the winner announced at the REIV’s 80th anniversary gala dinner, held the evening of the competition. Both the Victorian winner and the
Judges took into account the auctioneer’s accuracy, auction style, confidence and connection with the crowd
Big call: Senior Auctioneer of the Year finalist Harry Li.
runner-up will have the opportunity to compete in the Australasian Real Estate Institute Auctioneering Championships, being held in Alice Springs in September.
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The Estate Agent ❘ July 2016
21
Profile
Dream team: Mark Wizel, head of the Victorian Sales and Retail Investments Division of CBRE, with Lewis Tong, a key member of the team.
In the market for change Working for his father’s souvenir stall taught Mark Wizel how to think outside the box
M
ark Wizel was born to be in business. At only 13, he worked most weekends at his father’s stall in the Victoria Market. By 16, he was running the stall on his own and at 17, had started a small company with a school friend. Now, at 32, Wizel heads the Victorian Sales and Retail Investments Division for global commercial company CBRE. Since 2009, he and his team have transacted more than $7.5 billion in sales. Wizel attributes much of his business acumen to his Polish immigrant father who he says instilled a strong work ethic in his young son. “Dad had a small stall, selling Australian souvenirs to European migrants returning home to visit family,” he says. “In the early ’90s, he noticed a lot 22
The Estate Agent ❘ July 2016
more customers of Chinese descent so rather than continuing selling the same products as other stallholders, he remodelled his business to focus on the Chinese market.”
‘Standing there was this guy, with a great car, making people laugh. And I knew that’s what I wanted to do’ – Mark Wizel A student at Caulfield Grammar, Wizel always had a sense there were things to do in the world but couldn’t decide where he fitted. For a while, it was sports journalism that attracted him and he wrote the school’s football record. He and his friend, Matt Gudinski, son of music
promotor Michael, started a small company, running underage nightclub events at school. After witnessing his first auction one Sunday morning, Wizel finally decided on a future career. “Standing there was this guy, with a great car, making people laugh,” he recalls. “And I knew that’s what I wanted to do.” The guy turned out to be “gun” auctioneer Philip Kingston, who Wizel and his team hold a special personal and professional bond with today. Despite his father’s advice to forget it due to the demands of residential real estate, Wizel’s mother stepped in to help. President of the Bayside Make‑A‑Wish Foundation, she introduced her son to one of the members who was a receptionist with Colliers. She convinced her boss to give him some work experience. “I worked every school holidays,” he says. “I knew it’s what I wanted to do.” One of the more experienced agents was selling a property at 140 William
Profile
‘We put a great deal of time and effort into establishing relationships’ – Mark Wizel Street. He remembers “being in awe” of Martin O’Sullivan, a top-tier commercial agent who would later become his mentor. Still at university studying a Bachelor of Business Studies Valuation, he also worked three days a week on the market stall. While balancing his studies with market work, he was offered a full-time position at Colliers. Nine months later, the mentor who had taken Wizel under his wing was offered a contract with CBRE and wanted to take his protégé with him. Hesitant about leaving, Wizel’s father convinced him to go. An astute Wizel saw back then, in 2007, the company was strong in selling $100 millionplus properties so turned his focus to the sub $100 million market. He still remembers his first sale – Suite 1008 at 55 Swanston St for $167,000. His career took off from there. “I’m driven by purpose and like to ignite it all the time,” he says. “But I always think about my history; where I have come from and the values my parents taught me.” The only one in his “department” back then, he has gradually built the business up. Today, it numbers over 50, all head-hunted and hand-picked by Wizel and his senior leadership team. It hasn’t been all smooth sailing. In 2009 things were tough on the back of the Global Financial Crisis.
“My dad, who is now 62, has always been extremely savvy when it comes to business. He read an article about the Asian investment market and spoke to me about selling development sites to the Chinese market.” Wizel’s interest was again sparked. He always felt a connection to China after visiting the country with his school and through the many strong customer relationships he established selling sheepskins at the Victoria Market. His long-term partner is also Chinese. “It felt like fate,” he says. He employed Lewis Tong after convincing Tong’s parents that real estate agents weren’t “bad people”. Tong worked in valuations and also dealt with any Chinese buyers who couldn’t speak English. Wizel and Tong took their “sales road show” to Asia. Using their own funds, they flew to Asia 15-18 times in a year to “sell” Melbourne. It was hard work and expensive but eventually paid off. Later in the year, Wizel and Tong sold the first major development in Melbourne – Stonnington Mansion – to Chinese company Everbright International. Wizel says Melbourne’s development market in 2008-2009 and 2014 was dominated by Asian buyers and developers. “We put a great deal of time and effort into establishing relationships,”
Popular: Mark Wizel says Melbourne’s development market in 2008-2009 and 2014 was dominated by Asian buyers and developers.
Sold: 38 Freshwater Place, Southbank.
he says. “No one here had ever heard of these companies. We provided great customer service, collecting Asian business people from the airport and making sure they were looked after. “We enabled them to develop confidence in Melbourne and at the same time, assisted job creation and job retention here. Many buyers have bought three, four and sometimes five sites from our team at CBRE and this really pleases us to know our customers are making great profits.” Since 2009, Wizel and his team have completed around $5.5 billion in transactions in China, Malaysia and Singapore alone. Last year, they completed 276 transactions totalling $2.8 billion. Wizel admits to “ruffling some feathers” along the way and is proud to have instilled some change in the huge organisation that is CBRE. However he is under no illusions about his success and feels very fortunate. “I’ve had an incredible upbringing … loving parents, a great family and a company that has continued to back my vision, no matter which direction I want to move in.” The Estate Agent ❘ July 2016
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Market Update
View from the top records slight, steady growth Melbourne house prices in the first quarter remained relatively stable, while several new suburbs joined the million-dollar list
Bright outlook: In the first three months of 2016, Melbourne was home to 77 million-dollar suburbs – up from 61 for the same period last year.
F
or the second consecutive quarter, Melbourne’s median house price remained relatively stable at $713,000 for the first three months of the year. While the metropolitan median was steady, slight price growth was recorded in Melbourne’s inner and outer rings, up 0.2 and 0.5 per cent respectively to medians of $1,256,500 and $557,500. Top performing suburbs in the March quarter reflected this trend
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The Estate Agent ❘ July 2016
and were a mix of million-dollar suburbs and areas traditionally known for their affordability. The highest quarterly increase was experienced in the inner east suburb of Malvern East, where the median house price rose 13.7 per cent to $1,729,000. Meanwhile, six of the top-10 growth suburbs were located more than 20km from the city’s CBD. These included Epping, up 10.8 per cent to a median of $455,250; Caroline Springs, up 9.6 per cent to $570,000; Werribee,
up 9.4 per cent to $380,000; Langwarrin, up 8.8 per cent to $502,500; Mill Park, up 8.2 per cent to $536,000; and Doreen, up 7.6 per cent to $511,000. In the first three months of 2016, Melbourne was home to 77 milliondollar suburbs – up from 61 for the same period last year – with three new suburbs entering the list for the first time. New entrants in the March quarter were Ascot Vale ($1,165,000) and Brunswick West ($1,050,000)
Market Update
in Melbourne’s inner north and Mentone ($1,026,000) in the city’s south-east. Melbourne’s most expensive suburbs were predominantly in the city’s east and south-east with Kew and Hawthorn topping the list with median house prices of $2,325,000 and $2,035,000 respectively. Other suburbs making the most expensive suburbs list with a minimum of 30 sales in the quarter were Brighton ($1,897,000), Camberwell ($1,890,000) and Glen Iris ($1,825,000). The city’s most affordable suburbs were exclusively located in Melbourne’s outer ring. Wyndham Vale was Melbourne’s most affordable suburb in the March quarter with a median house price of $350,000. This was followed by Cranbourne and Sunbury with median house prices of $366,500 and $370,000 respectively. Meanwhile, the city’s unit and apartment median moderated after strong growth last quarter, falling
Despite the citywide decline, multiple inner and middle suburbs experienced significant apartment price growth in the first three months of the year.
Booming ’burbs: Six of the top-10 growth suburbs were located more than 20km from the city’s CBD.
1.8 per cent to $525,500. Despite the citywide decline, multiple inner and middle suburbs experienced significant apartment price growth in the first three months of the year. Apartments in Port Melbourne recorded the highest growth, increasing 19.4 per cent over the quarter to a median of $815,000.
This was up from a median of $682,500 in December. Double-digit quarterly growth was also recorded in Footscray, up 16.3 per cent to a median of $426,500; and Pascoe Vale, up 12.3 per cent to $498,500. Suburbs listed as the city’s most expensive for apartments included Port Melbourne ($815,000) and Kew ($697,500). Melbourne’s most affordable apartments in the March quarter were located in Carlton, which recorded an apartment median of $250,000. This was followed by St Albans ($316,000), Frankston ($324,275) and Seaford ($360,000).
regional report: MEDIAN PRICE moderates BUT PRICE GROWTH IN SEVERAL SUBURBS SOLDIERS ON After recording solid price growth last quarter, regional Victoria’s median house price moderated slightly in the first three months of 2016, down 0.6 per cent to a median of $347,500. The Ballarat suburb of Soldiers Hill recorded the strongest capital growth in the March quarter with the median house price there increasing 14.8 per cent to $373,000. This was up from $325,000 in December. Price growth was also seen in the Geelong suburb of Herne Hill, up 8.7 per cent to a median of $388,000; and Churchill in the Latrobe Valley, where the median house price rose 8.6 per cent to $195,000. Other towns recording solid growth in the March quarter were Bacchus Marsh, up 8.4 per cent to a median of $400,000; Inverloch, up 8 per cent to
$475,000; Daylesford, up 7.8 per cent to $485,000; and Hamilton, up 7.2 per cent to $275,000. Horsham in the state’s west was the best performing town in the year to March 31 with the median house price there increasing 28.1 per cent to $237,000. House prices in Daylesford rose 20.8 per cent over the year to a median of $485,000 while growth of 17.5 per cent was seen in Soldiers Hill. Double-digit annual price growth was also recorded in West Wodonga, up 16.9 per cent to a median of $331,500; Ballarat North, up 13.3 per cent to $342,750; Warragul, up 11.3 per cent to $345,000; Bell Park, up 11.2 per cent to $342,000; Cowes, up 10.9 per cent to $380,000; and Brown Hill, up 10.6 per cent to $340,000. With a median house price of $805,000, Barwon Heads had the highest median
house price in regional Victoria. This was followed by Lake Wendouree ($680,000), Torquay ($648,000) and Geelong ($610,000). For the second consecutive quarter, units saw solid price growth, increasing 1.5 per cent in the first three months of the year to a median of $273,500.
The Estate Agent ❘ July 2016
25
Commercial
China keeps us safe Asian investment protected Australia from impacts of GFC
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The Estate Agent ❘ July 2016
Top Snap
he dynamic Chinese economy has unified the major high-end property markets in the developed world, especially Australia, the UK and the US, says Herald Sun columnist Terry McCrann. Speaking at the Commercial & Industrial Chapter’s economic forecast lunch last month, McCrann says Chinese investment in Australia, particularly in the residential property market, prevented Australia from being heavily impacted by the Global Financial Crisis. At present, the RBA estimates $US20 billion is moving from China every month, injected into international investor markets. “The strength of the Chinese yuan compared to the Australian dollar has encouraged investment here, but the Chinese economy has slowed.” McCrann suggests the rise and fall of spending in Macau is a proxy for what is happening in global property sectors. “We’re seeing global equity markets rise and a chase for safety and a chase for yield, but the only asset class which can deliver both security and a high yield is property,” he says. While property prices have increased significantly, McCrann predicts low interest rates are going to continue, particularly given the global consensus to keep interest rates artificially low. “There is now more incentive for people to pour money into the family home, which is protected from tax.” Despite projected spending cuts and tax increases, McCrann expects no reduction in the Budget deficits and warns this may affect Australia’s Triple-A rating. “The problem with big deficits is you do have to pay a penalty for big debt and at some point that will flow through to higher interest costs.” Held at Zinc in Federation Square, the lunch attracted more than 250 attendees with forecasts by McCrann and economic expert Nicki Hutley. Both speakers were confident the nation’s robust tourism and education industries were far more important
Front and centre: Herald Sun columnist Terry McCrann and economic expert Nicki Hutley speak at the Commercial & Industrial Chapter’s economic forecast lunch last month.
than declines being seen in the manufacturing sector. “Financial and insurance services and other industries, such as tourism, are seeing good growth and Australia’s competitive advantage remains in these services sectors,” Hutley says. Other business services currently represent about 14 per cent of GDP, financial business services account for eight per cent while manufacturing has declined to six per cent. Hutley says this change in the Australian economic landscape was altering demand in the commercial and industrial property sectors. With greater availability of online shopping, Hutley foresees there will be fewer retail premises but a greater need for storage and delivery.
“Commercial landlords can expect different types of tenants, with more activity-based working and shared working environments.” Technological advances are also resulting in a shift in the nation’s industrial sector, away from traditional manufacturing premises. “The industrial sector in Australia is going to have a big focus on data in the next 10-20 years with less manufacturing and more storage and distribution,” Hutley says. Hutley predicts robotics and smart technology will improve inventory management, increasing the productivity of floorspace. In turn, this will deliver increases in rents per sqm and result in the consolidation of fewer larger sites.
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
Retail
On the road to recovery Brodie Butler-Robey
Short-term tenants are breathing new life into vacant shops on busy streets Eye-popping: Northern Thread, a “pop-up” shop in High Street, Thornbury.
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wo inner-city councils are using new initiatives to reduce the number of long-term vacant retail premises in shopping precincts. Darebin and Yarra councils believe a co-operative approach can deliver a win-win situation for all stakeholders – landlords, estate agents, start-up businesses and existing traders. Darebin Council’s award-winning Active Spaces program continues to receive widespread acclaim for its innovative approach to driving retail development and diversification. Yarra Council is also targeting empty commercial properties, working through new retail strategies with a local traders group. Now in its fourth year, the Active Spaces program was created to activate shopping strips by linking creatives and 28
The Estate Agent ❘ July 2016
entrepreneurs with affordable shortterm commercial leases across Darebin. The aim of the program is to reduce the number of vacant shops and graffiti-clad properties, transforming them into destinations for the community to enjoy. The program was initially designed to target Northcote, along High Street.
‘Our first business … has transformed an empty shell into a site which is cared for and has come alive’ While High Street remains a priority area, the program has expanded to include Thornbury, Preston and Reservoir, from Oakhill Village on
Plenty Road and either side of Tyler Street. Other areas in the municipality are continuing to be refreshed, too. According to the council’s latest statistics, the program has found a first home for 26 “pop-up” businesses, creating more than 100 jobs and generating more than $300,000 in rent. It has also acted as host to many art installations, displaying work from local artists. Active Spaces assists those considering opening a creative business by helping them through the permit process. It also provides start-up businesses with a basic commercial understanding by offering relevant information and new business support. Property owners taking part in the program have the opportunity to earn reasonable rental returns while
Retail
New lease of life: Entrepreneurs and creatives are being brought together to rejuvenate tired shopping strips and vacant shops in a win-win for clients and landlords.
Active Spaces
enjoying the benefits of showcasing their commercial premises. The community also benefits from this arrangement, with the transformation of previously vacant properties into vibrant new businesses. Tom Moss, director of Moss Estate Agents in Northcote, has been involved in Active Spaces for years. Some of his clients with vacant commercial premises in High Street in Northcote and Preston embraced the program once the advantages were outlined to them. “They saw the benefits of getting income from their shops during the vacancy period and it had the added benefit of showcasing the shop in a far better state,” he says. “The clients were very receptive to the program. One short-term tenant went on to take a long-term lease.” Darebin property owner and developer Richard Levy also sees the advantages of the program. “After we contacted Active Spaces, prospective tenants were brought to us almost immediately,” Levy says. “Our first business has been a great success and has transformed an empty
shell into a site which is cared for and has come alive.” In the City of Yarra, council is actively working with current traders and some local estate agents to find solutions. Co-ordinator of Economic Development Kim Swinson says her council is “passionate” about achieving good outcomes for everyone in areas where there are vacant shops, especially the renowned Bridge Road shopping strip, between Punt Road and Church Street. Swinson says council is working closely with Bridge Road Mainstreet, a local trader association. According to Swinson, a range of factors have contributed to the empty shops at the western end of Bridge Road. These include broader macroeconomic and sectorial trends such as changes in consumer behaviour, outer centre developments, the growth of e-commerce and cheaper imports, which have all had their effect especially on the western end of the strip where clothing retailing has been dominant. The concentration of clothing retail has made Bridge Road particularly vulnerable due to greater competition from the new forms of DFOs in other areas of Melbourne, consumers saving more and spending less on clothing, and expenditure moving to personal services and food. The impacts on the strip are not
uniform due to the different types of retailing and businesses that occur along the whole length of Bridge Road. “In effect, its strength (clothing retail) became its vulnerability,” Swinson says. “And because of its iconic status, the cost of rental properties in this area of Bridge Road has been quite high which can be a barrier for new emerging entrepreneurs who want to test the market.” Swinson says council staff have been working in tandem with traders to deliver on a marketing program with a strategic approach to position the street in the future. Council is also investigating initiatives such as Active Spaces. “We’ve noticed that things run in cycles and these macro-economic pressures are clearly a challenge,” she says. “But change is happening on Bridge Road. It is fair to say that the centre is in ‘transition’, changing from a strip with a strong retail clothing focus to a broader mix of retailing. While once businesses in that western end of the strip were heavily invested in clothing, it now has more cafes, restaurants and other businesses opening up. “We are also seeing significant residential development in the area, which will bring in new customers to the street with the potential to serve new markets and create more business opportunities.” The Estate Agent ❘ July 2016
29
Agents
A growing business: Gary Driscoll established Driscoll, McIllree & Dickinson in Nhill in 1994 with branches in Horsham and Stawell to follow.
Farm life nurtured a passion Gary Driscoll recognises the lure of city life for the younger generation, but sees great opportunities in regional centres
W
immera agent Gary Driscoll has the real estate business pumping through his veins. In his 40th year in the industry, he says without hesitation he has loved every one of them. “It’s in my blood,” he laughs. “There is nothing better than this industry, because you are dealing with people and you never stop learning along the way.” No-one can doubt his passion for regional and rural Victoria, which he traces back to growing up on a small farm at Navarre in the Pyrenees district, bordered by Stawell, St Arnaud and 30
The Estate Agent ❘ July 2016
Avoca. For Driscoll, this small farming community planted the seed for what was to come. “With three brothers and a small holding, I knew my future wasn’t on the farm,” he says. “But the closest thing to farming I could find was being a stock and station agent.” So he headed for the big smoke and obtained a position as an auctioneer’s clerk at the Newmarket Saleyards with
a small company called the Australian Estates Co Ltd. His job was to book the stock coming in and going out, and importantly balance the books at the end of sale day. If real estate is in Driscoll’s blood then so is Newmarket. They were exciting times for him and the memories remain. “Newmarket was the lifeblood of the industry back then. I loved it, especially watching the auctioneers at work. My only disappointment was my then boss would not allow me to sell as a trainee like other company clerks and I wanted to learn. “Prices were very strong back then, especially for bullocks. The first
‘I knew my future wasn’t on the farm. But the closest thing to farming I could find was being a stock and station agent’
Agents
live weight scales were introduced in around 1979 and the bullock companies were spending big money.” The company transferred Driscoll back to Stawell, where he was given his first taste of selling both rural and residential properties. He also encountered his first true mentor in sworn valuer Valentine Wortley, who encouraged him to obtain his sub-agent and auctioneer’s licence. Company mergers and transfers saw Driscoll spend time at MarnooSt Arnaud, Natimuk-Horsham and finally Beaufort in 1984 where he became branch manager of Dalgety’s. As well as securing his first manager’s position, he conducted his first auction, which he remembers fondly. “It was a large rural property of around 1,000 acres and the auction was in the Elmhurst Town Hall,” he recalls. “I was completely on my own and it was an exhilarating experience. It was a case of sink or swim.” And he swam. Although the property didn’t sell on auction day, it was sold a few days later. Driscoll says that from then on, there were never any barriers. He treated “every challenge as another opportunity”. Looking back on those days, he says he was fortunate to have great mentors – people such as Ron Richards, Bill Ower, Jeff Harfield, Brian Wood and Ken Dickinson, all well known in the rural industry. In 1987, he moved to Nhill with Dalgety’s which in turn was taken over by Wesfarmers. Driscoll, McIllree & Dickinson Pty Ltd was established in Nhill in 1994, with Driscoll and Andrew McIllree as directors. Branches at Horsham and Stawell followed. Throughout his career Driscoll says he has always tried to achieve the best results for his clients. He also believes that helping develop young or new staff in their roles is very satisfying. Driscoll has a long history of being actively involved in advancing the professionalism of rural agents through committees such as the REIV’s Wimmera Division, in which he once
In the blood: Wimmera agent Gary Driscoll has had a long and colourful career in the real estate industry and he has loved every moment of his 40 years so far.
acted as chair, the Australian Livestock & Property Agents (ALPA) and the Rural Marketing Agents (RMA). He is also a strong advocate for
‘Kids head for the city ... they think that’s where the jobs are but there are many opportunities in regional Victoria’ the REIV’s rural chapter and has put forward recommendations for greater training in these areas. “Rural and city needs are often very different,” he says. The perception there are diminished opportunities in rural and regional areas concerns Driscoll. “Kids head for the city because they think that’s where the jobs are but there are still many opportunities in regional Victoria,” he says. “Nothing magnifies this more than seeing diminishing numbers of young people in local
sporting clubs which are the life of their communities. Many clubs are struggling to stay alive. “In the Wimmera, the picture is positive despite the perception rural properties are being taken over by overseas investors. That’s not happening here.” According to Driscoll, rural property prices have increased “dramatically”. “In the last 15 years, the region has experienced its worst seasonal conditions for many years but while once there was mixed farming, it is now predominantly grain and hay production. Farmers have diversified to meet different needs. The fact interest rates are at their lowest level ever has seen them able to expand.” Outside of work, Driscoll is busy following his children in their various activities which he enjoys, although he doesn’t see any following in his footsteps. But for Driscoll, that’s okay. “I’m doing what I love.” The Estate Agent ❘ July 2016
31
Best Practice
Australia Post delivery times impact on RTA notices to vacate The choice of mail service can affect the serving of a notice to vacate to tenants
A
ccording to buyers’ advocates, it is all too common to attend an auction and listen to an auctioneer inform intending bidders the tenant, occupying the property, will be given 60 days’ notice; the property being offered with vacant possession at settlement. While an auctioneer may say this, the seller’s agent needs to be mindful of the impact of Australia Post’s new mail deliveries on the serving of a notice to vacate to tenants, if mail is to be used to give the notice. While the Residential Tenancies Act provides for a 60-day notice, the time involved in giving it will blow out depending on the choice of registered mail, as the 60 days begins on the day after the day the notice is given. According to information on the VCAT website, if a notice is sent by regular registered post, the minimum days an agent needs to allow in calculating the earliest termination date for a 60-day notice depends on
The time involved in giving [notice] will blow out depending on the choice of registered mail the day on which it will be posted. If that’s a Sunday or Monday, allow 66 days. If it is between Tuesday and Friday, allow 68 days. If it’s Saturday, allow 67 days. If a notice is sent by priority registered post, once again the minimum days needed to allow in calculating the earliest termination date for a 60-day notice depends on the day on which it will be posted. If that is a Sunday or Monday, allow 64 days. If it’s
between Tuesday and Friday, allow 66 days. If it is Saturday, allow 65 days. Bearing in mind these dates are the bare minimums, agents may wish to be more conservative and allow extra days. For example, if using regular registered post and posting on a Wednesday calculate the termination date allowing 70 days, instead of 68. Also, remember the notice needs to be prepared and despatched within 14 days after the day of sale.
Cooling-off notices: simple solution The decision of the Victorian Supreme Court in March in which a judge ruled an estate agent is not the agent of the vendor for the purpose of receiving a cooling-off notice under the Sale of Land Act, unless specifically authorised, raised eyebrows in real estate and CAV circles and has been criticised in the legal community. Fortunately for all concerned, the ruling is easily sidelined by a seller simply authorising their agent to receive the notice for them. There’s 32
The Estate Agent ❘ July 2016
no magic in giving the authorisation and it can be done by email or potentially an SMS message, provided it’s done before the notice is received. It’s an ill-wind that blows no good. The decision has focused attention on things an agent may do during the course of acting in a sale, which nowadays are second nature, but are at the edges of the core things of listing, marketing and selling and could be said to be outside the scope of an agent’s authorisation to sell. With this in mind, the REIV has
revised its sale authorities so they provide an agent with specific authorisations to arrange on their seller’s behalf the drawing-up of a Section 32 statement and contract, completing the contract by including terms finalised during the course of negotiations and obtaining the seller’s and buyer’s signatures, exchanging contracts, receiving the purchase price or part of it and receiving notices about cooling‑off, finance, pest inspections and building reports.
Best Practice
Written consent key By Peter Lowenstern, REIV Corporate Solicitor Swan v. Uecker – Victorian Supreme Court, June 10, 2016 A Victorian Supreme Court decision has overturned a contentious Airbnb VCAT ruling relating to short-term stays in rental properties. Justice Croft set aside the March 24 decision by VCAT member Kylea Campana, who had ruled an agreement made by residential tenants Barbara Uecker and Michael Greaves with an Airbnb guest was a licence and could not be terminated as sought by their landlady, Catherine Swan, who asserted the agreement was a sublease, made without her consent. In a comprehensive, 28-page decision Justice Croft ruled the arrangement
made by the Airbnb hosts – Ms Uecker and Mr Greaves – with their Airbnb guest was a sublease made without Ms Swan’s consent, ordered Campana’s ruling be set aside and Ms Swan be granted a possession order. Although Justice Croft pointed out his ruling related to the circumstances involving Ms Swan, her tenants and Airbnb, it will have widespread application in Victoria, so far as residential tenants making short stay arrangements are concerned. This is because the Airbnb arrangements between a person who creates a listing (a host), for example, a residential tenant, and their Airbnb guest(s) are governed by a standard
Top 10 tips for managing trust accounts Consumer Affairs Victoria (CAV) is focused on ensuring estate agents who operate trust accounts are meeting their compliance responsibilities. The following tips, provided by CAV, will help you to avoid some of the most common issues and comply with the law. 1 Notify Consumer Affairs Victoria within 14 days of opening or closing a trust account, using the forms available from consumer.vic.gov.au/ estateagents. 2 A trust account name must contain the words ‘estate agency business statutory trust account’ (or ‘a/c’) and the name under which your agency is licensed. 3 Keep accurate records of all trust account transactions. Records must be in English and retained for seven years. 4 Never pay out any trust money without the appropriate written authority. 5 If you cannot correct a deficiency in your trust account within three business days of becoming aware of it, you must notify Consumer Affairs Victoria (even if you have since corrected the error). 6 If you use accounting software, it must only allow you to alter a record by adding a new transaction (known as ‘addend only’ software). You must also keep regular back-ups at another location.
7 Trust account reconciliations must be completed within 14 calendar days of the end of the month, and include all days for the month. 8 If you didn’t receive or hold money in your trust accounts during an audit period, you may notify CAV of this using the statutory declaration available from consumer.vic.gov.au/estateagents. Otherwise, make arrangements for your trust accounts to be audited by an approved, independent auditor within three months of the end of your audit period. 9 More than 90 per cent of Victorian estate agencies have an audit period ending on June 30. It can be more difficult to engage an auditor during this busy time, so plan ahead. 10 It is your responsibility – not the auditor’s – to submit the audit report to Consumer Affairs Victoria within 10 business days of receiving it. More information about managing your trust accounts, including a downloadable reference guide, is available from consumer.vic.gov.au/estateagents
Sublease dangers: Landlord’s written permission is required if premises are further rented out.
form agreement posted on Airbnb’s website and are non-negotiable. Anyone who deals with Airbnb as a host or a guest has to accept Airbnb’s terms. The Residential Tenancies Act prohibits a residential tenant subletting the whole or part of their residence without first obtaining their landlord’s consent. The prohibition is carried through into the prescribed form of residential tenancy agreement via clause 10. The practical outcome for REIV property managers is the prohibition in clause 10 of the prescribed form of residential tenancy agreement will adequately deal with instances where a residential tenant has become an Airbnb “host” and sublet their residence or part of it to an Airbnb “guest”, without first obtaining their landlord’s consent. The court’s decision is unlikely to have any great impact on Airbnb short-stays as it does not affect lease arrangements made by Airbnb “hosts”, who are property owners, with Airbnb “guests”. For other short-term stay accommodation providers who may provide the accommodation by a licence, rather than a sub-lease, the REIV recommends members consider including a term in their residential tenancy agreements: “The tenant must not grant a licence or part with occupation of the premises, or a part of the premises to provide accommodation for a fee or other benefit, without, in each instance, obtaining the landlord’s prior written consent which, if given, may be subject to reasonable conditions.” The Estate Agent ❘ July 2016
33
Events
Investment in your career will pay off in the future
REIV events and competitions are an integral part of the Continuing Professional Development (CPD) opportunities offered by the Institute. Each Chapter and Division event is designed in consultation with the representative committee to address topical issues and challenges faced by members. Major events, such as the
july
annual REIV conference, provide perspective and insight on new developments and opportunities in the industry. CPD is an investment in your career. Nominations for this year’s REIV Awards for Excellence are now open, encompassing more than 30 categories. A further 14 categories are open to commercial and industrial professionals.
These annual awards are the highlight of the industry’s event calendar and recognise individuals and agencies who are setting new standards in customer service and sales results. pcoming events and U competitions are available below. Members can register online at reiv.com.au
september
5th
Geelong Division Meeting
13th
Novice Auctioneers Competition – Semi-final
24th
REIV Annual Conference and Senior Auctioneering Competition – Final
15th
24th
Senior Auctioneering Competition Final Gala Dinner
Commercial & Industrial Novice Auctioneers Competition Final, and Commercial & Industrial Marketing Awards
23rd
Business Brokers Lunch
25th
REIV Annual Conference
october 4th
Buyer’s Agents Chapter Breakfast Seminar
11th
Novice Auctioneers Competition – Final
27th
Awards for Excellence
november
august
8th
Southern Division Lunch
10th
Property Management Knowledge Network
15th
Bendigo Division Meeting
17th
Commercial & Industrial Chapter Breakfast Seminar
2nd
Young Agents Chapter Lunch Event
24th
Young Agents Future Leaders Afternoon
3rd
Owners Corporation Chapter Seminar
24th
Valuation Chapter Seminar
9th
Bendigo Division Meeting
25th
Business Brokers Christmas Lunch
9th
Property Management Knowledge Network – Bendigo
11th
Valuation Chapter Seminar
17th
Commercial & Industrial Novice Auctioneers Competition – Heats
23rd
Southern Division Meeting
31st
Novice Auctioneers Competition – Heats
34
The Estate Agent ❘ July 2016
Nominations for this year’s REIV Awards for Excellence are now open
reiv.com.au – your first source
for REIV events in 2016
Training
Indigenous representatives get informed
Broadening horizons: Fourteen participants from Indigenous Community Housing undertook the Agent’s Representative course during May.
august (continued) Owners Corporation
The REIV recently teamed up with the Department of Health and Human Services (DHHS) to enhance Aboriginal Community Housing Organisations’ understanding of property management and the real estate industry. Fourteen participants, many located throughout country and regional Victoria, undertook the Agent’s Representative course in May. The specialised course
covered important aspects of property management including the Residential Tenancies Act as well as the role of VCAT and Consumer Affairs Victoria. Aboriginal Community Housing Organisations are building strong and sustainable housing programs and are responsible for the daily management of housing for their communities.
4th
9am–5pm
Advanced Owners Corporation
18th
9am–5pm
Introduction to Owners Corporation
Property Management 10th
9am–12.30pm Residential property management refresher
24th
9am–12.30pm Managing risk in estate agency practice
25th
9am–5pm
Intermediate residential property management
Property Sales 29th
9am–5pm
Job Ready - Residential property sales
30th
9am–5pm
Job Ready - Residential property sales
31st
9am–5pm
Job Ready - Residential property sales
july september
Property Management 14th
9am–5pm
Preparing for and presenting at VCAT
Commercial
19th
9am–5pm
Intermediate Owners Corporation
2nd
9am–5pm
How to list commercial property for lease
21st
9am–5pm
Advanced residential property management
22nd
9am–5pm
Commercial property management fundamentals
Commercial 13th
9am–5pm
Commercial property management fundamentals
Property Management 6th–9th
9am–5pm
Job Ready – Residential property management
Property Sales
august Auction 31st
9am–5pm
Introduction to Auctioneering
1st
9am–5pm
Job Ready - Residential property sales
28th
9am–12.30pm
Residential property sales documentation; getting it right
Business Broking
Commercial 4th
9am–5pm
Commercial property sales documentation and formalities
9th
9am–5pm
Applying the commercial lease process
15th–16th 9am–5pm
Business Broking Fundamentals
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 ❘ July 2016
35
Member News
Exciting member milestones More than 150 REIV members have celebrated significant membership milestones this year, signifying their commitment to the industry. This includes 97 members marking 10 years with the Institute, 16 individuals have been
members for 20 years, 29 members celebrated 30 years and nine individuals have achieved the commendable feat of 40 years as an REIV member. Don Brindley (left) and Darrell Simpson are celebrating 50 years while Kris Callaghan and Peter Hancock have been members for a remarkable 60 years.
Kris Callaghan
60 year
Kenneth Rose
40 year
Neil Jens
30 year
John Piccolo
30 year
Peter Hancock
60 year
Roger Trevaskis
40 year
Bruce Ludeman
30 year
Alan Rossignoli
30 year
Don Brindley
50 year
John Bailey
30 year
Richard Mackinnon
30 year
Greg Sinclair
30 year
Darrell Simpson
50 year
Jock Bing
30 year
David Macrae
30 year
30 year
David Cooper
40 year
Milton Cations
30 year
John Marasco
30 year
Michael Stavropoulos
Robert Dawson
40 year
Malcolm Chiverton
30 year
Frank Molinaro
30 year
Grant Stinear
30 year
Geoff Earney
40 year
Chris Foley
30 year
Peter Morrison
30 year
Paul Sutherland
30 year
John Keating
40 year
Joyce French
30 year
Peter Nicolls
30 year
Lucky Teneketzis
30 year
Chris Lang
40 year
Leigh Hallamore
30 year
Richard O’Brien
30 year
Abe Wiser
30 year
Janice Meallin
40 year
Greg Hocking
30 year
Michael Palmer
30 year
Anton Wongtrakun
30 year
Simon O’Donoghue
40 year
Rob Hooper
30 year
David Phillips
30 year
Matthew Addison
20 year
Renato Cenedese
10 year
Michael Lang
10 year
Will Richardson
10 year
Jeff Anderson
20 year
J M Coghlan
10 year
Luke Lawlor
10 year
Nicole Roberts
10 year
Paul Denver
20 year
Stephen Conley
10 year
Kevin Lee
10 year
Melanie Rowe
10 year
Paul Evans
20 year
Julian Conte
10 year
Peter Lindeman
10 year
Carlo Ruscitti
10 year
John Furniss
20 year
Luke Craven
10 year
Andrew Lochhead
10 year
Jason Salan
10 year
Susan Gray
20 year
Michael David
10 year
Geoffrey Luff
10 year
Jens Schoppert
10 year
Anthony Grimwade
20 year
Ben Dawson
10 year
Lana Maher
10 year
Garry Seddon
10 year
Roslyn Jenner
20 year
David Dundas
10 year
Amrish Majeethia
10 year
Rustu Senol
10 year
Russell Jones
20 year
Chee-Ky Dunlop
10 year
Shaun Marijanovic
10 year
Troy Sheehan
10 year
Marty Maher
20 year
Laurie Eddy
10 year
Nick Mavrodoglos
10 year
Matt Sims
10 year
Kaye Mollet
20 year
Monique Fitzgerald
10 year
Sally McDonald
10 year
Kevin Stapleton
10 year
Larry Takis
20 year
Michael Furlong
10 year
Russell McInnes
10 year
Carmen Stenta
10 year
Noel Tanis
20 year
Vicki Gardiner
10 year
Shane McLoughlan
10 year
Peter Street
10 year
Trish Tebb
20 year
Colin Gooding
10 year
Cathie McRae
10 year
Bill Thompson
10 year
Andrew Waddell
20 year
Anne Grabyn
10 year
Amit Miglani
10 year
Steve Torre
10 year
Cameron Way
20 year
Jeffrey Grochowski
10 year
Matthew Monaghan
10 year
Nekti Tzouroutis
10 year
Anthony Anile
10 year
Sajjad Haider Rizvi
10 year
Christopher Moxon
10 year
Sheryl Upton
10 year
Elaine Arnold
10 year
Wayne Hall
10 year
Brendan Murphy
10 year
Michelle Varney
10 year
Justin Barrot
10 year
Jen Harlow
10 year
Chris Nagy
10 year
Aldo Verga
10 year
Russell Bartlett
10 year
David Hart
10 year
Jane Nunn
10 year
Bill Verhagen
10 year
Joe Borg
10 year
James Hatzolos
10 year
Ian Oldstein
10 year
Gabi Vertessy
10 year
Mark Boyer
10 year
Bradley Hinton
10 year
Robert Ozzimo
10 year
Narelle Waller
10 year
Brian Boyle
10 year
Danelle Hunter
10 year
Silvana Pannia
10 year
Jennefer West
10 year
Tim Bradler
10 year
David Ibrahim
10 year
Toby Parker
10 year
Kieran Whaley
10 year
Glenn Bricker
10 year
Chris Janssens
10 year
Alex Pyrlis
10 year
Alphie Wong
10 year
Greg Bright
10 year
Matthew Jinks
10 year
Martin Rankin
10 year
Kevin Wright
10 year
Antony Bucello
10 year
Jim Kalakias
10 year
Graeme Rayner
10 year
Carmelo Caputa
10 year
Jan Kaufman
10 year
Jason Reid
10 year
Lachlan Castran
10 year
Daniel Lamanna
10 year
Gary Richards
10 year
36
The Estate Agent ❘ July 2016
Obituary
A master mentor who shared wisdom, skills Allan Lord was passionate about his profession and, as a renowned trainer, passed on his knowledge and insight to many
T
he real estate industry lost a true gentleman in May when long-standing REIV member and respected trainer Allan Lord passed away unexpectedly. A passionate auctioneer, Allan served on the REIV Auction Committee for a number of years, winning the REIV Novice Auctioneer Competition in 1967. A member of the REIV for 50 years, Allan was dedicated to improving professional standards within the industry and was active on a number of REIV committees, including the Education and Valuation Chapter Committees. Allan began his real estate career in 1961, joining the family business H Lord & Sons in Ormond before going on to qualify as a sworn valuer in 1966. A distinguished auctioneer, Allan was known for being able to create interest in a property under auction conditions. In 1968, Allan became principal of the family business, which was rebranded as Lord’s First National. He served as secretary to the Malvern Caulfield branch for five years until 1972, before going on to be awarded a Diploma of Associate of the Real Estate Institute of Australia (AREI) in 1981. In the early 1990s, Allan began real estate training at Swinburne and RMIT as well as formal lecturing at
ALLAN LORD November 11, 1941 – May 17, 2016
‘He possessed the ability to impart wisdom and knowledge, was never judgmental, always saw the good in people and all the while was highly principled’ the REIV, only retiring at the end of 2014. Notably, Allan spearheaded the REIV Senior Auction Schools and the Australasian Senior Auctioneers Competition. He also conducted the first Home Charity auction for the Royal Children’s Hospital Good Friday Appeal and introduced the Victorian auction system in South Africa. Recognised as REIV’s Trainer of the Year in 1995, Allan went on to receive the REIV Industry Award for Excellence in 2001. Allan’s significant
contribution to the Institute was further acknowledged in 2011 when he was awarded the REIV President’s Award. REIV auction trainer Phil Musat says Allan always had time for others and was an exceptional teacher. “He possessed the ability to impart wisdom and knowledge, was never judgmental, always saw the good in people and all the while was highly principled and ethical. A passionate real estate agent, Allan was a magnificent auctioneer and a gentleman to the end. His friendship, good counsel and wicked sense of humour will be missed, yet never forgotten,” he says. REIV acting CEO Geoff White says Allan was a popular face around the Institute and will be remembered for his integrity and ethics. “Allan was highly regarded by all who knew him and he was an active member of the Institute for many decades. His capability, knowledge and teaching style has influenced many hundreds of practising agents,” he says. Fellow agent Kevin Sheehan worked with Allan on many occasions over several decades, primarily in the area of auction training. Kevin says the real estate industry has benefitted enormously from Allan’s contribution. “Allan’s friendship, good humour, fine judgment and generous nature were inspirational and will be sadly missed,” says Kevin. Actively involved in his local community, Allan was a member of Kiwanis for many decades, including as the charity’s youngest appointed Australian District Governor in 1977-78. Allan will be fondly remembered by many of today’s top auctioneers as a mentor and friend. He is survived by his wife Joan, son Andrew and daughter Michelle. The Estate Agent ❘ July 2016
37
Obituary
Bill kept his hand in the game An enormous desire for education drove this respected veteran to become an industry leader with a focus on helping others
W
hen Bill Hogg first started working in real estate, his job was to ride his bike around Footscray collecting rents. Although he retired years ago from his long and successful career in the industry, he maintained a keen interest in what was happening in real estate until his death in May. His long-time friend and colleague, Footscray estate agent Frank Trimboli, delivered the eulogy at Bill’s funeral. “Bill’s involvement, commitment and friendship to every person he came across and the community at large, made you appreciate what a truly special person he was,” Frank says. Bill started his working life employed by a Footscray grocer before being offered a job by local estate agent, Alf Greenwood. His career was interrupted by the Second World War, however Alf not only promised him his job back when he returned but an opportunity to take over the business. That was the start of his successful career under the name of William R. Hogg, trading as Alf Greenwood. He built the business at 184 Barkly St, Footscray, to the stage where it employed 20 staff and became a household name in the western suburbs. Frank first met Bill in October 1958 as an “ambitious” 17-year-old who wanted a career in real estate. “At the time, he listened very intently and then asked what I had to offer,” Frank recalls. “I felt I’d got the usual brush-off… ‘I’ll think about it and get in touch’. “For the next three months, I approached Bill on a weekly basis and got the same answer… ‘Don’t contact me, I’ll contact you’.
WILLIAM HOGG March 23, 1918 – May 6, 2016 “Finally, probably to get me off his back, he agreed to employ me on a three-month probation and to this day, I have never been told I finished that probation.” Frank officially started work in February 1959, the beginning of a “wonderful employer/employee relationship and friendship”. Bill encouraged Frank to continue his tertiary and real estate education. Similarly, he encouraged all his staff to concentrate on their education and become fully licensed estate agents and auctioneers. “Bill was a great believer in education,” Frank says. “His favourite expression was that he wanted to employ fully licensed estate agents, not taxi drivers who just drove around prospective clients.” He taught his employees the same ideals and ethics, always making time to offer advice on real estate and life.
‘Bill’s involvement, commitment and friendship to every person he came across and the community at large, made you appreciate what a truly special person he was’ – Frank Trimboli 38
The Estate Agent ❘ July 2016
He was also highly respected by clients and competitors. A man with “great vision”, he was the first agent to introduce computer accounting in the 1960s. “He had an enormous desire for education, so much so that well into his 80s, he was a regular participant in the various REIV training programs on various aspects of specialised agency practice,” Frank says. In 1966, he joined the Rotary Club of Footscray and was particularly involved with membership development. Rotary bestowed on Bill its highest award - a Paul Harris Fellowship. Such was his love of Rotary, he lived his personal and business life based on its Four Way Test ideals: Is it the truth? Is it fair to all concerned? Will it build goodwill and better fellowships? Will it be beneficial to all concerned? “Bill Hogg was a true gentleman,” Frank says. “His integrity and ethics were beyond reproach and coupled with a friendly and practical approach to life, he was a leader in his field.” Bill’s wife predeceased him and he is survived by his two children.
2016 Nominations open
Nominations close
Finalists announced
Winners presented
2016 Awards for Excellence
Friday, 1 July 2016
Friday, 12 August 2016
Thursday, 22 September 2016
Thursday, 27 October 2016
2016 Commercial & Industrial Marketing Awards
Friday, 1 July 2016
Friday, 12 August 2016
Friday, 2 September 2016
Thursday, 15 September 2016
Find out more at
reiv.com.au/awards2016
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