RealEstate - HAPPY & SAFE HOLIDAYS - SUMMER 2017-2018 - REINZ
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RealEstate
SUMMER 2017–2018
$13.80 excl. GST for members
A REAL ESTATE INSTITUTE OF NEW ZEALAND PUBLICATION
HAPPY & SAFE
HOLIDAYS
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Users
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Location
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viewed over 258,000 listings on New Zealand’s No.1 property site.
So let our marketing help yours by listing on realestate.co.nz.
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RealEstate
SUMMER 2017–2018 A Real Estate Institute of New Zealand Publication
KEY CONTACTS
Real Estate Institute of New Zealand Inc
PO Box 5663, Wellesley Street, Auckland 1141
Phone: 09 356 1755 Free Phone: 0800 473 469
Fax: 09 379 8471 Email: info@reinz.co.nz
www.reinz.co.nz
IN THIS ISSUE Chief Executive
Bindi Norwell
14
Please refer all queries in first instance to Miranda
NEW ZEALAND’S Chetham, Ph: 09 356 1752, mchetham@reinz.co.nz
POLITICAL LANDSCAPE Advisory Services
18
Lisa Gerrard, Chief Legal Officer
Ph: 09 356 1760, lgerrard@reinz.co.nz
ANTI-MONEY LAUNDERING:
AN UPDATE Membership Team
Mary Rackham, Membership Services Manager
22
Ph: 09 356 1750, mary@reinz.co.nz
JOURNEY TO THE LAUNCH OF THE Karen Chambers, Membership Services Admin
AUCKLAND HOUSING SUMMIT Ph: 09 356 1845, kchambers@reinz.co.nz
26
Cindy Stowers, Membership Services & Web Admin
Ph: 09 356 1849, cstowers@reinz.co.nz
GETTING TO KNOW OUR REINZ
AMBASSADORS! Events Team
Louise Gordon, Events Manager
39
Ph: 09 359 5454, lgordon@reinz.co.nz
2017 AUSTRALASIAN Communications
AUCTIONEERING CHAMPIONSHIPS Dee Crooks, Communications/PR Manager
Ph: 09 356 1753, dcrooks@reinz.co.nz
42 RUAKURA INLAND PORT TO MAKE BIG
WAVES IN LOGISTICS SUPPLY CHAIN
Kim Thompson, Digital Marketing Executive
Ph: 09 356 1847, kthompson@reinz.co.nz
Technology
62
Reuben Billings, Chief Innovation Officer
‘LIMITED AS TO PARCELS’ TITLES AND Ph: 09 356 1761, rbillings@reinz.co.nz
WHAT THAT MEANS FOR LICENSEES Finance Department
Rowan Dixon, Chief Financial Officer
OUT & ABOUT 10 Ph: 09 356 1762, rdixon@reinz.co.nz
FEATURES 14 PropertySmarts
SECTOR GROUPS 39 Deborah Barns, Product Manager
Ph: 09 359 5452, dbarns@reinz.co.nz
INTEREST STORIES 48
EDUCATION 56 Editors
Dee Crooks, Editor; Kim Thompson, Sub Editor
LEGAL 58 Ph: 09 356 1753, dcrooks@reinz.co.nz
Design and Layout
ADVERTISE THROUGH REINZ MacWork Design & Print
blair@macwork.co.nz
The Real Estate Magazine is a
Printing
quarterly publication distributed Inkwise NZ ISSN 2324-3791
to 14,000 members of REINZ.
DISCLAIMER: Any views or opinions included in this
Ad packages are available. If you publication do not necessarily reflect the views of the Real
are interested in advertising contact Estate Institute of New Zealand Inc but remain solely those
of the author(s). REINZ is grateful to the companies who
Kim Thompson - kthompson@reinz.co.nz have advertised in The Real Estate magazine who enable
us to bring this publication to our members. However,
Become a Member Benefit Wanting to sponsor a REINZ placement of advertising in this publication does not
supplier. Contact Dee Crooks event? Contact Louise Gordon constitute an endorsement of the products and/or services
shown. Neither is REINZ responsible for the accuracy of any
dcrooks@reinz.co.nz lgordon@reinz.co.nz advertising material.
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CEO UPDATE
Celebrating a
successful 2017 Bindi Norwell, CEO, REINZ
It’s hard to believe that a
year has gone by since I
W e’ve continued to work with
Government and policymakers
on the big issues impacting the industry
our industry such as the importance and
benefits of using a licensed real estate
agent. This is something we will continue
first stepped through the including Anti-Money Laundering (AML), to advocate for – especially as new players
the Residential Tenancies Act Amendment continue to enter the market promoting the
doors at REINZ as CEO. Bill, the adjustments to restrictions on ‘so-called benefits’ of going it alone.
From my perspective high-LVR residential mortgage lending, the
I’m really excited about all the great things
New Zealand Standard for the Testing and
it’s been a great first Decontamination of Methamphetamine
we have in the pipeline going forward –
including the launch of our new property
year in the industry and Affected Properties (NZS8510), the Unit Titles
management proposition and our new
Act, the REAA’s practice of police vetting
together with the team licensees, the Osaki Case, the Cates Bill and
Centre of Excellence with more support
in education. AML will also be a key focus
at REINZ we’ve focussed the New Zealand Institute of Forestry (NZIF)
to ensure we are equipped as an industry
request for an exemption application under
on achieving a number the REAA Act 2008. In every submission we
for the changes in legislation. Data and
technology initiatives and improvements
of great things on behalf make and every conversation we have, we
will also be paramount. So, watch this
continue to push for change that benefits our
of our members and the members and minimises interruptions to your
space as we detail more information over
the coming months.
wider industry. We are day-to-day activity.
I’ve genuinely enjoyed getting to meet so
excited about 2018 and As technology continues to impact our lives
many of our members across the country
in a more meaningful and impactful way, we
look forward to continuing continue to look to technology solutions that
over the last 12 months and I’ll look forward
to more events and occasions to do this
to support our members provide flexibility and value to our members.
again in 2018.
We’ve introduced the new eForms platform,
going forward. developed the REINZ House Price Index, No doubt, you’re looking forward to a break
released custom territories in the statistics with family and friends over the Christmas/
platform and introduced the one-click New Year break. We will be closing the
membership renewal process. 2018 will bring office on Friday 22 December and we’ll be
more initiatives in the data and digital space. back in the office from 8 January.
Another priority for REINZ is to continue On behalf of all the team here at REINZ,
being a trusted voice in the real estate I wish you a Merry Christmas and a Happy
industry. We have increased our media New Year! I hope you have happy and safe
presence considerably and have advocated holiday and return to the office refreshed
on a number of important issues affecting and ready for a prosperous 2018.
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ECONOMY UPDATE
What lies ahead for
the economy in 2018?
We expect 2018 to be another year of solid growth for the global Bevan Graham
economy. This will see a continued absorption of space capacity, NZ Chief Economist
higher inflation pressure and continued normalisation of monetary AMP Capital
conditions among the key developed economies.
G lobal growth in 2017 looks like coming
in at around 3.5%, itself a meaningful
improvement over the 3.1% in 2016, and
Risks are ever-present. Right now, the
biggest worry is a surprise resurgence in
inflationary pressure and a repricing of the
the highest rate of growth since 2011. pace of monetary policy normalisation. But
Among the key developed economies, to highlight the uncertainties surrounding
recent data suggests positive growth the inflation outlook, there is still a risk that
momentum in the United States, Japan normalisation proceeds too quickly in some
countries and derails the nascent cyclical
and the Eurozone. Stronger growth in both
recovery. The risk of this appears greatest
the latter two is especially pleasing as they
in the UK where we remain unconvinced
have been a key drag on global growth in
that recent higher-than-expected inflation
recent years. The United Kingdom remains
outcomes are a signal of an economy
a laggard as Brexit uncertainty exerts its hitting up against capacity constraints and
influence on activity. generating a sustained pick up in core
We expect another modest leg higher in inflation pressures.
global growth to 3.7% in 2018, largely on As growth recovers and nascent inflationary
the back of US fiscal stimulus, though tax pressures continue to build, central banks
cuts/reform are still not guaranteed. will continue to normalise monetary
7
New Zealand GDP
6
% change
5
Forecast
4
3
2
1
0
-1
QoQ
-2 YoY
-3 Source: Statistics NZ and AMP Capital
2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
8 | The Real Estate Institute of New Zealand
ECONOMY UPDATE
conditions. The US Federal Reserve will other parts of the world is a key determinate of a broadened mandate, but the Bank
continue to raise interest rates, while the of net migration trends. already takes labour market conditions
European Central Bank will continue to print into consideration in setting appropriate
While lower net migration means lower
money (quantitative easing) but at a slower stance of monetary conditions.
growth, it also implies slower growth in
pace. So while overall global monetary Furthermore, a broadened mandate
the supply of labour at a time when the
conditions are gradually tightening, they brings New Zealand into line with the dual
labour market is already tightening. In that
remain highly stimulatory overall. employment and inflation mandates of the
case, lower growth can actually coincide
New Zealand is expected to fare well in this with higher wage and ultimately inflationary US Federal Reserve and the Reserve Bank
environment. We expect solid growth in pressure. of Australia.
the period ahead, though not as strong as We are also likely to see a shift in the
But for now, with subdued wage growth,
we have some seen in recent years. Fiscal interest rate decision from the Governor to
core inflationary pressures remain equally
policy is likely to be more stimulatory than a committee structure. Again, we don’t see
subdued. The Reserve Bank of New
expected in the next year or so, though the this leading to any significant change as this
Zealand (RBNZ) is expected to leave
precise quantum and impact will remain is probably not significantly different from
monetary conditions unchanged for a
uncertain until we see further detail from the what happens already in practice. The Bank
“considerable period”. The Bank continues
new Labour-led Government. of England already sets monetary conditions
to flag no tightening in monetary conditions
The labour market is tightening as the until 2019, though in their latest set of under a committee structure.
unemployment rate falls. We expect the projections they have moved that forward Economic predictions always carry some
unemployment rate to nudge closer to 4% from late-2019 to mid-2019, closer to our degree of uncertainty. Throw a change
over the next few quarters. As the labour forecast of the first rate hike of the cycle of government into the mix and there is
market continues to tighten we would occurring in late 2018.
suddenly an increased level of uncertainty,
expect some degree of increased wage
We are not anticipating any significant at least until we see the detail of new
pressures to emerge. This may be given
change in the operation of monetary policy policy. We will have more to say on the
some added impetus with an expected
as a result of the change in Government. outlook for the New Zealand economy as
faster rate of increase in the minimum wage
We expect employment will become part that detail emerges.
than we had previously been anticipating.
One of the key considerations for 2018 is
the extent to which net migration slows. The
annual net inflow has already started to turn
For the latest thinking on markets, economies and
lower and we expect this will accelerate,
trends visit ‘Enlightenment’, the AMP Capital blog site
especially given the improved global growth
environment. The relative performance of at www.ampcapital.co.nz/news/blog
the New Zealand economy compared to
SUMMER 2017–2018 | 9
OUT & ABOUT
Harcourts Team Uptown
Mark Barry, of Harcourts Team Uptown in Auckland City, says after several years
of rapid growth, sales are not as easy as they once were.
“A year ago, you could be fairly confident your property would sell quickly at a
good price. Now selling is not as simple as listing your property. Vendors need to
choose a sales consultant who will be creative, work hard and guide you carefully
through the sales process.”
It is in this market that Mark and Anita Barry have started the new Team Uptown
office on Queen Street. The team will be servicing the CBD and city fringe, with a
specialty in apartments. Mark and Anita have worked in real estate for more than
30 years, and have seen many cycles of the property market. Mark says they are confident of achieving the best possible results for their
vendors, no matter what the circumstance.
“There are a lot of new real estate agents leaving the industry now because they have only worked in a heated market and are finding the
change difficult. That’s not us. We will work closely and creatively with our vendors to ensure they get where they want to be, whether the
market is rising, falling or flat.”
Barfoot & Thompson’s
Young Authors
Challenge turns 10
This year marks the 10th storybook published for the Barfoot
& Thompson Magic of Reading programme, which publishes
the top stories written by school-aged children through the
Young Authors Challenge.
With the proceeds from storybook sales, the programme
puts a book into the hands of every child who stays
overnight in Starship Hospital or the children’s ward at
Whangarei Hospital.
In the past 10 years, Barfoot & Thompson’s Young Authors
Challenge has captured the imaginations of aspiring authors
and generated huge sums of funding, including:
● Over 10,000 entries received (with a record 2,240 entries
received this year)
● More than $250,000 raised for the Starship Foundation
● Books given to 166,000 young hospital patients.
For our tenth edition of the storybook, our ten winning
First National Annual young writers (pictured here with editors Maria Gill and John
Shareholders Conference Parker) have put pen to paper and created rich stories about
characters trying new things, entering other worlds or striving
and charity auction to get something they really want, to cautionary tales of
being careful what you wish for.
The annual shareholders conference in Wellington was extremely well
attended with standout presentations from Ashley Church, Cameron The book is available to purchase from www.barfoot.co.nz/
Bagrie and REINZ’s own Lisa Gerrard. The major highlight without storybook.
doubt was the charity auction on the Wednesday night, the mercurial
Peter Wilson from Timaru did an outstanding job of entertaining the
crowd and loosening the wallets. A tear jerking presentation was
delivered immediately prior from Tracey Perret from Middlemore which
no doubt assisted the group’s incredible generosity.
Middlemore Foundation public relations officer David Kemeys said news
of the generosity came as no surprise.
“I know Tracey Perrett from the National Burns Centre was quite taken
aback by the support shown, but if experience has taught me one thing
in this job, is that it does not pay to underestimate how committed First
National and its people are to backing the company’s burn education
scheme. Tracey was very quick to report back to us how enthusiastic
the bidding was, which I have to say, I would expect, given most of First
National’s people must be dab hands at this auction lark.”
10 | The Real Estate Institute of New ZealandOUT & ABOUT
SPOTLIGHT
RE/MAX Asia Pacific Convention wins over the world
Hundreds of RE/MAX Asia Pacific Convention delegates were wooed and wowed by the outstanding event
hosted by RE/MAX New Zealand and RE/MAX Australia on the Gold Coast, Queensland, earlier this year.
From the official welcome
reception poolside at Sheraton
Mirage Resort through the
following two days of formal
conferencing, the event
produced amazing speakers,
memorable social occasions
and important networking
opportunities, while long-
standing friendships and
business relationships were
re-kindled and forged.
Eighteen regions now make
up RE/MAX Asia Pacific, with
Convention delegates also coming from other countries including opponents, Greg Parker and last year’s winner Paul Gaffney, a
Canada, United States, Poland, Argentina, South Africa and Italy. good run for their money despite the desperately little preparation
Many arrived early to partake in meetings and the charity golf day time he’d had.
at RACV Royal Pines Resort on Tuesday and Wednesday.
RE/MAX® gave delegates at the Convention a sneak preview of
Traditional welcomes from New Zealand and Australia signalled its new modern design for Australia and New Zealand, which was
the start of the formal programme, with the powhiri drawing great officially launched on September 27 and works brilliantly across
pride from the hosts and stirring emotion among the guests. This social, digital, mobile and print platforms. This was the first major
was followed by a stirring flag-bearing ceremony welcoming all brand refresh since the global company began 44 years ago.
nations with representatives at the Convention. RE/MAX New Zealand and RE/MAX Australia were the first of
Special guests and keynote speakers included author and the regions globally to roll-out the new brand.
inspirational speaker, Li Cunxin of Mao’s Last Dancer-fame; REA The 2017 RE/MAX Asia Pacific Convention’s final event, a
Group’s Nigel Dalton, who ranks in the top 10 most influential spectacular cocktail party on Q1’s 77th floor, incorporated the RE/MAX
people in technology in Australia; RE/MAX Italia’s Dario Castiglia; Asia Pacific awards where New Zealander Zoran Mulovski from
Sebastian Sosa, international affairs professional and owner of RE/MAX Zest and Australian offices RE/MAX Regency, Gold Coast,
RE/MAX Argentina-Uruguay; and John Witheriff, Chairman at and the Sunshine Coast’s RE/MAX Hinterland, won top awards.
Minter Ellison Gold Coast and Director of the Commonwealth
Games Authority. Singapore, South Korea, Malaysia and Guam figured strongly in
top office accolades, with Eduardo Santos from the Philippines
The Superwomen Panel of Lisa Claes, Managing Director of named top residential sales agent. Denver-based Larry Oberly,
CoreLogic; Candice Cordero, Chief-of-Staff with the REA Group; Cheryl Luster, Adele Qi and Jan Repa from RE/MAX, LLC were on
and Dotti Sosa, co-founder and partner of RE/MAX Argentina, was hand to present the awards.
facilitated by acclaimed sales coach and trainer Cindy Tate and
proved a much-talked about feature on the Convention programme. RE/MAX, LLC, (Denver) was named the leading real estate
franchise for the ninth consecutive year in the annual Franchise
Almost 100 delegates opted for a Thursday night filled with classic Times Top 200+® survey and in the Top 10 ranking of all US-
Aussie experiences at Paradise Country on the Gold Coast, with based franchises for the second consecutive year.
everything from sheep shearing and whip-cracking stockmen and
women, to koalas providing photo opportunities galore. RE/MAX New Zealand and RE/MAX Australia Managing Director
Michael Davoren said “The Convention programme, with world-
Friday’s Convention programme included the 2017 Auctioneer class, highly sought-after speakers, networking events and
of the Year. When three RE/MAX agents battled for the title, two
entertainment, was sensational, and certainly matched anything
were trying to reclaim it and one was a last minute stand-in with
I’ve witnessed anywhere globally, RE/MAX or otherwise. And the
less than 24 hours’ notice.
Gold Coast turned on its perfect weather to top off the event.”
While Greg Parker from RE/MAX Regency, Robina, ultimately
With a presence in more than 100 countries and territories, and
won the 2017 title, Ben Kloppers from RE/MAX Realty Group in
a force of more than 116,000 agents, no other real estate brand
Warkworth was a true winner in every sense. Mr Kloppers had
matches RE/MAX’s global footprint and its selling power.
nobly stepped in when New Zealand contender Eric Chase from
RE/MAX Zest in Remuera was unable to get to the Convention The fourth annual RE/MAX Asia Pacific Convention will be hosted
because of unforeseen circumstances. He gave his two next year by RE/MAX South Korea.
SUMMER 2017–2018 | 11OUT & ABOUT
Servicing one of the fastest
growing parts of Auckland
Top sales consultant Todd Murray has launched
Northwest Realty, which will operate out of
the Northwest shopping complex and service
the Massey North area. Born and bred in
Whenuapai, Todd says he is excited about the
development happening in Massey North.
“Hobsonville, for example, is one of the
fastest growing parts of Auckland. There
is a lot of interest and my team and Starship celebrates
I know this part of our beautiful city
extremely well.” 25th birthday with Barfoot
Although the property market has cooled over the past several
months, Todd is very optimistic about his local area.
& Thompson
Barfoot & Thompson is proud to have been the Principal Event
“This is an up and coming part of Auckland. It’s much more Sponsor for the Starship ‘Through the Looking Glass’ 25th Birthday
affordable than the central suburbs, but close enough for a city Ball, which was held at the end of October.
commute and our local amenities are outstanding.” This was a momentous occasion for all who attended. Some of the
highlights included performances from Tiki Taane, the Royal New
Zealand Ballet and Hollie Smith. But the real standout of the evening was
Harcourts partners with the result of the fundraising efforts. Barfoot & Thompson auctioneer, Tony
Loughran, commanded the room in a live auction which saw the event’s
the Auckland Diwali and fundraising goal more than double.
The grand total of the auction, donations, and raffle sales, equalled
Lantern festivals over $530,000. These funds will go towards clinical priorities for
Harcourts is a new major partner to the Auckland Lantern Starship – vital equipment and improved facilities, staff professional
and Diwali festivals in 2018, 2019 and 2020. Harcourts CEO development, research and innovation, and service improvement –
Chris Kennedy says it’s a three-year commitment to two iconic all ensuring that Starship provides the best healthcare possible for
Auckland events. the children of New Zealand.
“Diwali and the Lantern Festival are joyful celebrations of the
cultural diversity that makes Auckland the amazing city it is.
Barfoot & Thompson
“Our Auckland, Whangarei and Bay of Islands franchise owners
have banded together to sponsor the events and we couldn’t wins Best Sports Event
be happier to announce our partnership.”
Sponsorship of the Year
Kennedy says Harcourts is proudly multi-cultural, represented At the New Zealand Events
by 2,500 sales consultants in New Zealand from a diverse Association Awards in
range of backgrounds. early October, Barfoot &
“Celebrating diversity, what makes us unique and what brings Thompson won the Best
us together, is at the core of our Harcourts’ value of ‘People Sports Event Sponsorship of
First’. That’s why this partnership is so important to us.” the Year for their partnership
with the World Masters
The 2018 Auckland Lantern Festival takes place from Thursday Games 2017.
1 – Sunday 4 of March at the Auckland Domain, where the city
will welcome in the Year of the Dog. Sir John Wells, Chairman of
the World Masters Games,
The Auckland Diwali Festival, or Festival of Light, will take place highlighted that the staff at Barfoot & Thompson enhanced the whole
over two days in Aotea Square in October 2018. experience through volunteering, competing or supporting more than
25,000 athletes who attended from New Zealand and around the world,
and played a major part in having the event declared “the best World
Masters Games ever” by International Masters Games Association
president Kai Holm.
Sponsorship Manager Mildie Meyer-Els was a finalist for Event
Sponsorship Professional of the Year. Although she didn’t win,
Managing Director Peter Thompson acknowledged Mildie’s activation
and dedication to the event, without which the company would not
have won the Best Sports Event Sponsorship award.
“This award was a real testament to the leadership and teamwork involved
in pulling everything together and I was honoured to accept the award on
behalf of the company,” said Managing Director Peter Thompson.
12 | The Real Estate Institute of New ZealandREINZ’s new Digital
Product Manager
Hamish Macdonald has recently joined REINZ as the new Digital
Product Manager. Here he shares his background, why he’s
passionate about building great digital products and his fur baby.
H amish comes from a strong commercial
background in some of New Zealand’s
most successful technology companies.
members provide the best possible service
to their clients. Hamish looks forward to
working with members, and other industry
innovation and technology. He wrote his
final paper on the challenges for young
New Zealand technology companies in
His previous roles include Digital Product stakeholders, to fulfil this ambition. retaining New Zealand ownership and
Specialist at Datacom and Global exceeding $1 billion in market value. He
Development Manager at Trade Me. Hamish has a strong ethos that technology
has been very active in the New Zealand
done well can improve people’s lives and the
As Digital Product Manager at REINZ, he start-up community providing mentorship
New Zealand economy. He is passionate
provides product leadership to the array and voluntary work to help grow the local
about building great digital products by
of products which REINZ offers their entrepreneurial eco-system.
involving users in the process and letting them
membership and other stakeholders in the guide the creation and enhancement of REINZ Hamish looks forward to involving many
real estate industry. Hamish defines Product products for the future. Hamish describes of you in defining the future of REINZ
Management as being the intersection of himself as a bit of a geek when it comes to products and shaping the real estate
Technology, Business and Design. The aim the latest trends in Product Management and industry in New Zealand!
is to create truly valuable digital products ‘Design Thinking’, but he also possesses
which are intuitive to use and provide a Hamish’s love of his life is his dog, David the
strong business acumen which helps ground
delightful experience. REINZ, by having Dachshund. When not paddle boarding on
a vision in commercial reality.
the most up-to-date and comprehensive the Hauraki Gulf, David visits care homes
property data in New Zealand, is in the Hamish has an MBA from The University and children’s hospitals as part of the
unique position to use this data to help of Auckland which he focused around Canine Friends programme.
What gives you the right to tell your clients you
are a professional Property Manager?
Register your interest for the revised New Zealand
Residential Property Management (level 4)
qualification by emailing getqualified@realiq.nz
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2008
realiq.nz | 0800 REALIQ (0800 732 547) | Licensed under REAA
SUMMER 2017–2018 | 13FEATURE
New Zealand’s political landscape
Over the past couple of months, a significant portion of New Zealand’s attention has
been focused towards activity in the Beehive. First came the election, then the coalition
announcement and now policy announcements are coming thick and fast. Here we
outline some of the announcements made as part of Labour’s 100-day plan that are
likely to have an impact on the real estate industry.
Since the election, the Prime Minister, minimum standards will be implemented
Jacinda Ardern, has confirmed that the through supplementary regulations that will
following are all to happen during her first be developed after the Bill has been passed,
100 days in government: and after public consultation.
• Pass the Healthy Homes Guarantee Bill • the Healthy Homes Guarantee Bill (No 2)
(No.2), requiring all rentals to be warm and dry will commence on 1 July 2019
• Ban overseas speculators from buying • all residential tenancies must comply
existing houses with the regulations within five years of
the Healthy Homes Guarantee Bill (No 2)
• Begin work to establish the Affordable
commencing; and
Housing Authority and begin the KiwiBuild
programme. • earlier compliance dates may be
prescribed by the regulations in some
Here we outline the policies in a little more circumstances.”
detail and give REINZ’s view on what the
impact on the industry might be. REINZ’s view is that we welcome the
principles behind the Healthy Homes
Healthy Homes Guarantee Bill Guarantee as there are significant pockets
According to a report from the Building of New Zealand’s housing stock that
Research Association, nearly a third of are below par by world standards. Any
rentals felt damp by varying degrees and improvement to housing standards will be
40,000 children a year are admitted to of benefit to the health and wellbeing of
hospital due to diseases that are related Kiwis – particularly in relation to respiratory
to poor housing. Additionally, 1,600 New illnesses caused by cold and damp housing
Zealanders’ lives are cut short by illnesses e.g. asthma and rheumatic fever which can
caused by living in cold, damp conditions. have significant impacts for children and
elderly people.
While landlords already have obligations
under the Residential Tenancies Act, there However, the Bill will be more effective if it
is no specific guidance about the exact is practical and doesn’t penalise landlords
standards they must meet to ensure or place an unnecessary cost burden on
warm and dry accommodation. In order landlords. Many private landlords and
to address these problems, Labour even some investors may struggle to find
has confirmed that the Healthy Homes funding to upgrade their properties to the
standards will cover heating, insulation, requirements outlined in the Bill. This could
ventilation, draught stopping, drainage and cause them to sell their rental property to
moisture. Many landlords will already meet prevent financial difficulties, which may lead
these standards, but for those needing to to a lack of rental properties. Government
upgrade their properties, government grants schemes that help fund compliance, such
as insulation, will be beneficial and support
of up to $2,000 for installing heating and
the objectives of the Bill.
insulation will be available.
The other important factor that needs to
The Hon. Phil Twyford, Minister for Housing
be taken into consideration, is that many
and Urban Development says “The
landlords may look to pass the costs of
Government will run a consultation process
upgrading on to their tenants, which could
over the next 18 months to ensure that
potentially increase rents across the country.
tenants, landlords, public health and building
science experts and industry representatives The Bill will require a fine balancing act in
have an opportunity to get involved in order to avoid penalising one specific sector
creating robust minimum standards. The of the market.
14 | The Real Estate Institute of New ZealandFEATURE
Banning overseas residents perspective, we would just like some welcomed. Given the significant housing
Labour believes that foreign speculators clarification on what the ban is trying to shortfall across the country – particularly
are pushing prices out of reach of first achieve. We await further clarity on how the in Auckland, the promises to build more
home buyers. In order to address this, the ban will be implemented going forward. homes are welcomed as we need to ensure
Government has announced a policy which there are enough houses to meet demand.
means that foreign speculators will no longer KiwiBuild Programme However, any build numbers need to be
be able to buy houses in New Zealand from In her speech to the Throne, the Rt Hon realistic enough to take into consideration
early in 2018. Non-residents and non- Jacinda Adern said: “The State will take any constraints placed on the market (e.g.
citizens will not be able to purchase existing the lead in building affordable houses. RMA, labour supply).
residential dwellings – only new build Through its KiwiBuild programme, this
government pledges to build 100,000 high We need a mix of housing to meet the
properties. Australians will be exempt from
quality, affordable homes over the next 10 diverses needs of our population and
the new regulations.
years; half of them in Auckland. A Housing more social and emergency housing needs
To introduce the ban, an amendment to Commission will work with the private to be built.
the Overseas Investment Act was required sector, councils and iwi to cut through red Any reduction of red-tape or use of pre-
in order to classify residential housing as tape, undertake major projects and ensure fabricated housing in order to speed up the
“sensitive”. Legislation is expected to be new, affordable homes are built rapidly.” process of building houses would broadly
introduced before Christmas and take effect
The programme will be driven by a newly- be applauded, as it helps to fill gaps in the
immediately once passed early in 2018.
created Affordable Housing Authority, an shortfall of housing.
REINZ’s view is that there is little data or urban development authority which will
evidence that clearly links the role foreign be an independent Crown entity. This What next?
buyers have in allegedly increasing house authority will hold all surplus urban Crown This is just the key housing related policies
prices. Looking across the Tasman, we land, and will be able to use this land in announced in Labour’s first 100-days
can see that the impact of a similar policy its development projects. It will partner plan - there are of course a number of
on banning foreign buyers is minimal, with with the private sector, councils and iwi other policies that will be announced
Australia still remaining the third most in development companies to undertake over time and that are likely to have an
unaffordable country in the world. major greenfields and revitalisation effect on the real estate industry going
projects, and will deliver new, quality, forward. Examples of these policies include
Additionally, many of the large banks here have
affordable housing and the associated the extension of the Bright Line test to
already made restrictions to offshore buyers
infrastructure. five years, the removal of the ability to
without a local income, yet we’ve still seen the
negatively gear investment properties,
national median house price increase 1.2% It will also be empowered to cut through red
amendments to improve tenants’ rights
year-on-year from $510,000 in October 2016 tape and implement a fast-tracked planning
and the Auckland petrol tax. As more detail
to $530,000 in October 2017. process.
on these policies is announced, we will
Lastly, there is no evidence that all foreign REINZ’s view is that any moves to help continue to keep members updated on
buyers are speculators – a point reiterated first time buyers get a foot on the property what is happening and what REINZ’s view
by BNZ’s Tony Alexander. So, from our ladder such as affordable sections are of the political environment is.
SUMMER 2017–2018 | 15FEATURE
COFFIX stores add
value to commercial
and retail settings Natan Yehezkely
Franchise Director, COFFIX
Like many areas of the One company who is proving to be just that they have since opened another store in
kind of tenant, is COFFIX – an organisation Hohipere Street. Although only a few months
real estate industry, the founded in 2014 with a view to providing old, the store already has a loyal following.
commercial and retail quality, affordable coffee and food to New
13 COFFIX stores are now up and running
Zealanders in an ethical manner.
property rental industry across New Zealand with two more stores
COFFIX’s franchise model is based on a in the pipeline. Wherever COFFIX stores
can be challenging. The small, takeaway concept which allows pop up, foot traffic in the area picks up.
sector is subject to all COFFIX to keep their overheads low and The Elliott Street COFFIX store in Auckland
pass the savings on to customers. COFFIX’s is a case in point.
manner of hurdles, one coffee is organic, fair trade and costs just
of which is attracting Prior to COFFIX occupying one of the mini-
$2.50 per regular cup which includes two
container style kiosks which line the street,
the right kind of tenant. espresso shots. An extra espresso shot,
the other kiosks were empty and people
syrup or soy milk are free of charge. COFFIX
Dependable, quality also offers food such as sandwiches, bagels,
didn’t linger in the area. With the advent
of the COFFIX kiosk, foot traffic in the area
tenants who add value muffins and wraps for just $2.50 each.
picked up markedly. The kiosk quickly
to a commercial or retail The first COFFIX store opened on ‘K’ Road became a ‘people magnet’ which attracted
in Auckland. It wasn’t long before there were people from surrounding offices and
property setting and attract queues of people outside the corner kiosk businesses. Interestingly, all the other kiosks
customers are worth their each day to get their caffeine fix. Hospitality are now tenanted and there is a waiting list
industry worker Daniel Danin noticed the to lease them.
weight in gold. store and the crowds it was attracting and
The Takapuna COFFIX store has enjoyed
made an offer with his wife Rhonda, to lease
similar success, albeit via a slightly different
the store with a view to purchasing it in 2015.
format. Located as a stand-alone store
Things went so well for Daniel and Rhonda within the Country Corner furniture shop, the
as the first official COFFIX franchisees that Takapuna COFFIX store has proven highly
16 | The Real Estate Institute of New ZealandFEATURE
popular with locals and caters to a steady extraction systems given that all food of livening up quiet pockets in retail and
stream of coffee-lovers who inevitably end products are delivered ready-made. commercial settings.
up browsing the adjacent furniture store
The simple, attractive appearance of the COFFIX has achieved a lot in a short space
while they wait for, or enjoy their coffee.
stores, coupled with quality, affordable of time and has big things planned. If the
The Takapuna store is currently the only coffee, good food and great service is company’s progress to date is anything
store of its kind. I am keen to roll out more a winning formula that keeps people to go by, it won’t be long before COFFIX
stores of this nature as it has demonstrated coming back for more. This is a particularly becomes a household name.
that such formats are mutually beneficial for important consideration in the context
both COFFIX and the ‘host’ store as they
entice people inside the respective stores,
keep people inside longer which potentially PRIOR TO COFFIX OCCUPYING ONE
boosts sales and maximises retail space.
The associated rental costs are also lower OF THE MINI-CONTAINER STYLE
as the rent is effectively split between
COFFIX and the host store. KIOSKS WHICH LINE THE STREET,
COFFIX stores make good business
sense. COFFIX stores can help unlock and
THE OTHER KIOSKS WERE EMPTY
maximise the value of small, underutilised
retail sites which are ‘off the beaten track’.
AND PEOPLE DIDN’T LINGER IN THE
Because the stores offer a takeaway AREA. WITH THE ADVENT OF THE
menu only, they do not pose a threat to
existing traditional cafes or their clientele COFFIX KIOSK, FOOT TRAFFIC IN
who are typically more inclined to want a
full, sit down café experience. Additionally, THE AREA PICKED UP MARKEDLY.
no consents are needed for kitchens or
SUMMER 2017–2018 | 17FEATURE
Anti-Money
Laundering
and Countering
the Financing Lisa Gerrard
Legal Counsel, REINZ
Richard Manthel
AML Solutions
of Terrorism
legislation:
An update
In August 2017, the Anti-Money Laundering and Countering the Financing of
Terrorism (AML/CFT) amendment bill was passed meaning that lawyers, accountants,
real estate agents, the NZ Racing Board and high value dealers will now need to
comply with the AML/CFT Act. Real Estate firms will need to be compliant from 1
January 2019.
18 | The Real Estate Institute of New ZealandFEATURE
R EINZ has been actively involved in
discussions and feedback on the Phase
2 AML/CFT reforms and how these will
The real estate sector will be supervised
by the Department of Internal Affairs (DIA)
and real estate firms are considered to be
and to manage and mitigate the risk of it
occurring. This is written document that
addresses each applicable obligation under
impact Real Estate firms. This has included ‘reporting entities’ under the legislation. Real the AML/CFT Act with commentary on how,
submissions on the draft amendment bill, estate agents will have obligations to meet practically, that obligation is satisfied by the
from the initial consultation paper released from 1 January 2019. reporting entity.
in August 2016 to submissions to the Select
What obligations will apply to Training and vetting
Committee.
Real estate firms must ensure that senior
AML Solutions, a specialist AML/CFT firm,
real estate firms?
managers, the AML/CFT Compliance
has been working with REINZ and explains Real estate firms will be subject to the same
Officer and all salespeople are vetted and
what this means for the real estate industry. obligations as existing reporting entities.
undertake AML/CFT training.
These include:
The use of real estate is an established CDD
method of money laundering internationally. • Appointment of an AML/CFT Compliance
The Act requires all reporting entities to
Criminals buy high-value goods such as real Officer
conduct CDD on its clients – for real estate
estate as a way of laundering or concealing • Preparation and maintenance of an AML/ agents this will usually be the vendor.
illicit funds. Criminals are drawn to real CFT written Risk Assessment Conducting CDD requires the agent to
estate to launder funds due to: collect and verify identity information on the
• Preparation and maintenance of an AML/
• The ability to buy real estate using cash vendor. This will include those individuals
CFT written Compliance Programme
who own or control the vendor (in the case
• The ability to disguise the ultimate • Training and vetting of staff of companies and trusts for example).
beneficial ownership of real estate Where the agent is acting as a buyer’s
• Conducting Customer Due Diligence (CDD)
• The relative stability and reliability of real agent, they will need to conduct CDD on
estate investment • Monitoring transactions for unusual the buyer.
behaviour and reporting any suspicious
• T
he ability to renovate and improve real Reporting of Suspicious Activities
activity to the Police Financial Intelligence
estate (often in cash) thereby increasing Real Estate firms will be required to report
Unit (FIU)
the value. suspicious activity to the FIU, that is, activity
• Filing prescribed transaction reports (in which the reporting entity suspects may be
Criminals are also motivated by property for relation to domestic cash transactions related to criminal offending including money
profit or lifestyle reasons. over $10,000) to the FIU laundering and financing of terrorism.
While some of the above may be hard • Filing an annual report with the DIA; and
to detect, there are many indicators or Next steps for the Industry
‘red flags’ to assist to identify potential • Arranging an independent audit of AML/ REINZ will be providing brands and firms
money-laundering. These red flags are well CFT documents and procedures every with more information over the coming
documented internationally and assist real two years. months on solutions being developed
estate firms in identifying their risks and for the industry and individual firms. The
training their staff. Such red flags include: Appointment of AML/CFT DIA is expected to release a sector risk
Compliance Officer assessment in December 2017 and will be
• The client appears to be acting on behalf providing guidance material during 2018.
A reporting entity must appoint an AML/
of another person and is reluctant to REINZ will continue to work with AML
CFT compliance officer to administer and
identify those they represent
maintain the AML/CFT programme. This Solutions and engage with the DIA and
• The client sells, or the customer buys must be an employee who is, or reports to, the Ministry of Justice on this legislation
multiple properties in a short period of time a senior manager of the reporting entity. including the finalisation of key regulation.
• Introduction of unknown parties at a late If you have any questions please
Risk Assessment
stage of the transaction contact Lisa Gerrard, Legal Counsel,
The first step in establishing an AML/
REINZ (lgerrard@reinz.co.nz) or Richard
• A customer buys or sells above or CFT compliance regime is the preparation
Manthel, AML Solutions
below market value while apparently of a written risk assessment. The risk
(richard@amlsolutions.co.nz)
unconcerned about the economic assessment must identify and assess the
outcome of the transaction. risks that the business reasonably expects AML Solutions is New Zealand’s leading
to face from money laundering and financing specialist AML/CFT consultancy and has
Real estate capture under New of terrorism (ML/FT) across a number of been working with REINZ for more than
Zealand legislation specific business areas. 18 months in preparation for real estate
Real estate firms are captured as a capture. AML Solutions works across all
‘designated non-financial business or Compliance Programme sectors and has now assisted well over
profession’ as they provide real estate The Compliance Programme must set out 500 reporting entities with their AML
agency work (within the meaning of section internal policies, procedures and controls compliance programmes or audits.
4(1) of the Real Estate Agents Act 2008). necessary to detect money laundering www.amlsolutions.co.nz
SUMMER 2017–2018 | 19FEATURE
Health & Safety
Dog Safety and Responsibilities
in the Workplace
Joanna Clough
The Dog Safe Workplace
In the past 10 years, dog
bites in Property Services
have increased by a huge
49%. Are you aware that
on the hazard register for
real estate agents and
property managers, dog
bites rate second only to
slips and falls?
I n 2016, The Dog Safe Workplace
addressed REINZ Members at events
around New Zealand regarding the increase
know from reports in Europe that less than
40% of dog bites are actually reported. I was
surprised how many people approached me
in dog bites in the industry. The presentation after each event I spoke at; they had either
discussed the importance of being had a close call or had been bitten by a
educated regarding canine body language. dog. This happened both when the owners
This is especially relevant to REINZ were at home and when they had to enter a
Members as your roles often take you onto premises alone. There were also situations
properties where the owners may be out, where loose dogs had bailed up agents
leaving the dog home alone. when they were out marketing. Most went
unreported either because they felt it was
In 2016, I voiced concerns that if we don’t
not a serious enough situation, or they were
increase our awareness around dogs, by
concerned about losing the listing.
2020 we could see around 16,000 reported
dog bites per year. However, just one year This is extremely concerning for our
later, I would like to retract that statement personal health and safety. When the
as it is in fact happening much faster than new Health and Safety at Work Act was
was originally projected. In 2015 more than introduced it added a new level of personal
12,900 dog bites were reported across New responsibility and created PCBU’s (person
Zealand. This was based on a 31% increase conducting a business or undertaking).
in dog bites over the previous 10 years. I This role also allows for individuals to be
had estimated that we would see around personally responsible for workers under
16,000 dog bites by 2020. Unfortunately, their jurisdiction.
the statistics for 2016 showed that more
than 14,000 dog bites were reported for that So how can you keep yourself
calendar year. If this trend continues, dog and your team safe?
bites can be projected to hit 16,000 by 2018. Education is the best option. If you
understand the fundamentals around canine
But how does this affect the body language you are in the best situation
property industry? to help yourself. How many times have we
ACC has the most comprehensive reporting heard – don’t worry about Fluffy he has
for dog bites available in New Zealand. never bitten anyone – well that is until he
However, their figures are still based only does. What’s that saying? There’s always
on bites that require medical attention. We a first time for everything.
20 | The Real Estate Institute of New ZealandFEATURE
IF THIS TREND not be able to follow these policies, as you
have not been informed that there is a dog
references, there should be a process to
check your staff are tested on what they
CONTINUES, DOG on the property (this can be common with
rental properties).
learn, is there a reporting process or LMS
for your Health & Safety records, can
BITES CAN BE Here are some tips if you find yourself at risk:
they offer the same training nationally and
internationally for your business, and ensure
• DO NOT run
PROJECTED TO HIT • DO NOT look the dog in the eye
that your staff understand that it is their, as
well as your, responsibility to be trained in
16,000 BY 2018. • Get something between you and the dog
the latest safety programmes? This could
save you a lot of time and money down the
• If the dog does try to bite you, use your track. We did a case study last year for a
folder, an umbrella or your bag and let the company that reported 15 bites, initially they
dog bite that (anything you have on you thought it had cost them $23,000 until we
Dogs don’t go out of their way to bite us.
that is not YOU) investigated. The cost to the company was
But for thousands of years we have trained
our dogs to protect our property and they •D
o not let go of the object as the dog will actually over $85,000.
do a really good job. Consequently you lose interest as soon as you let it go and
Businesses have to consider all aspects
need to ensure that you understand that come back to you
of Health & Safety including cost and think
Fluffy may be great when their owner is •M
ove away and don’t turn your back on about how much money they could have
there but Fluffy could turn to Cujo when the the dog saved with training (remember all Health
owner is not around. Or possibly even the & Safety training is 100% tax deductible).
•L
earn the stress signs that a dog will show
other way around, as Fluffy may be very Education is the key to reducing most risks
when it is scared and may bite.
protective of his owner. including dog bites. In turn, it reduces an
Training yourself and your staff on risks organisation’s exposure to the associated
Many organisations have policies such as
associated with Health & Safety is essential. costs and trauma involved in dealing with
Don’t enter if there is a dog or make sure
With the new laws in place, it is important the aftermath.
the dog is locked away from where you
to understand that you cannot delegate
are, either in a kennel or room. This sounds Organisations:
responsibility.
great, but it only works if the rules are www.dogsafeworkplace.com
strictly followed, and the dog stays where When training your staff ensure that you are www.barkbusters.co.nz
it has been put. We often hear stories of using a reputable company, that the training
dogs being let out, or escaping, with dire programme is designed to specifically suit Some local Council offices may also offer
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SUMMER 2017–2018 | 21FEATURE
Journey to the launch
of the Auckland
Housing Summit Leonie Freeman
Housing Strategist, Thehomepage.nz
Auckland’s housing issues Auckland is not alone in facing these issues, There is a favourite quote of mine by
other cities around the country such as Margaret Mead which says:
affects all Aucklanders. Christchurch and Queenstown, are staring
Whether it is the child down the barrel of the same gun pointed at
who misses out on a Auckland.
NEVER BELIEVE
There’s no sense finger pointing, blaming
maths teacher as their others or just talking about the problem. We THAT A FEW
school struggles to know problems and we know many of the
recruit teachers because solutions. What we need is action. There is CARING PEOPLE
no single organisation, idea or person, no
of housing costs, or matter how innovative or powerful, that can CAN’T CHANGE
the medical practice solve Auckland’s housing crisis.
whose experienced Transformative social change in the face
THE WORLD. FOR,
nurse leaves Auckland of complex issues is not achieved by ‘top
down’ initiatives alone. Aucklanders need
INDEED, THAT’S
to live in the provinces. to step up and be part of the solution. ALL WHO EVER
Which is why I formulated a small, voluntary
The shortage of safe,
stable and affordable
team who were equally dedicated to the
task of showing what could be done
HAVE.
housing is affecting our by collaboratively working together and
Instead of looking around to find out who
addressing the issue in an innovative and
children, our communities, transformational way.
should solve our Housing crisis – I have had
to wrestle with the question – what was I
our co-workers, our In addition to myself, the Committee personally prepared to do to help fix the
employers, our city and comprised: Housing crisis?
our lives. Housing impacts Anna Crosbie The work I have embarked on has been
Russell McVeagh about two things:
everyone.
Robyn Phipps 1. Improving the understanding of the
Massey University housing issues in terms that all of us
can recognise and understand
Kitty Rothschild
Knight Frank 2. Presenting a comprehensive solution
to Auckland’s housing crisis with a
Paul Gilberd
plan of how to go forward as a stake
New Zealand Housing Foundation
in the ground.
It was Collective Impact in action. It was
all about connecting minds and collective The summit and the solution to
action. It was about leadership, standing up Auckland’s housing crisis
and doing what’s right! The first independent not for profit Auckland
Housing Summit was held on August 1st,
Journey 2017. 130 people attended representing
Why did I stand up? It’s simple. I’m a a wide range of public and private sector
proud Kiwi who believes we live in the organisations including Property Developers,
best place in the world. I’ve spent a career Lawyers, Planners, Architects, Construction
involved in many aspects of the property companies and material suppliers,
sector – development, valuation, property Community Housing Providers, Independent
management – both in the public and Directors, Government officials, Council
private sector often leading strategic representatives, Infrastructure providers and
transformational change. Property consultants.
22 | The Real Estate Institute of New ZealandYou can also read
