IN THIS ISSUE MARKET SNAPSHOT AUS TRALIAN REAL ES TATE PROFE SSION AIMS AND OBJEC TIVE S REAL ES TATE INDUS TRY GENDER PAY GAP - REAL ESTATE ...
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
REIANEWS
I ss u e 7 9 : J U N E 2 0 1 8
IN THIS ISSUE
M a r k e t S n a p s h ot
Au s t r a l i a n R ea l Es tat e
P ro f e ss i o n A i ms a n d
O b j ec t i v e s
R ea l Es tat e I n d u s t ry
g e n d e r pay g a p
MORE WANT TO FIND OUT ABOUT PROMOTING YOUR BRAND IN REIA NEWS? CONTACT REIA ON 02 6282 4277 OR AT REIA@reia.com.au FOR FURTHER INFORMATION.
Mr Malcolm Gunning
REIA President
P resident ’ s
report
W e l c ome Welcome to the June edition of
REIA News.
including the largest decrease of
17.9 per cent in New South Wales and
From REIA’s Victoria. The reduction reflects the
REIA has just published its Housing
Pre siden t Affordability Report and Real Estate changing sentiment in the market and
Market Facts reports. This edition of can be attributed to APRA restrictions
REIA News provides a “snap shot” of on investment loans and more stringent
the outcomes. What is coming through home lending criteria in general.
in these reports as well as ABS lending
This edition also includes an article
figures is how the dynamics in the
on the Pathway to Professionalism
market have changed, in particular the
project which REIA has embarked
east coast residential property market
has moved relatively quickly from a on. Through enhanced practice and
seller’s to a buyer’s market. In the culture in the real estate industry
three months to end of March 2018 our aim is to become the trusted
the number of loans also decreased real estate adviser and provide a
across the country by 16.0 per cent, high level of consumer satisfaction
with falls in all states and territories not just facilitate a transaction.
Mr Malcolm Gunning
REIA P r e s i d en t
Follow us on Twitter @REIANational
It’s bridging finance,
but not as you know it.
Our Go-Between bridging loan stands out
for all the right reasons:
• Fixed or variable rate
• 100% offset
• Serviceability calculated on end debt
• Real valuations (no buffering for risk)
If you’re got a customer who wants to buy before selling,
contact your local BDM to learn more.
adelaidebank.com.au
Adelaide Bank a division of Bendigo and Adelaide Bank Limited ABN 11 068 049 178 AFSL/Australian Credit Licence 237879. (A274676-1177426) (04/18)
N AT I O N A L N AT I O N A L
MARKET AFFORDABILIT Y
SNAPSHOT SNAPSHOT
Extracted from Real Estate Market Facts EXTRACTED FROM ADELAIDE BANK/REIA HOUSING
March quarter 2018 AFFORDABILITY REPORT, MARCH QUARTER 2018
Quarterly Australian weighted Mar Dec Mar
median house price is $770,086 2018 2017 2017
Quarterly Australian weighted median Proportion of family income to meet:
other dwellings price is $593,188 Home loan repayments 31.3% 31.6% 30.4%
Rent payments 24.8% 24.5% 24.7%
Median house prices up:
Hobart 7.2% to $492,000 NSW Housing affordability improved
Melbourne 4.4% to $855,000 in NSW with loan repayments
Adelaide 1.1% to $470,000 decreasing by 1.3 percentage points
Median house prices down: VIC Both housing affordability and
Darwin 1.6% to $505,000 rental affordability declined in
Perth 1.9% to $510,000 Victoria over the March quarter
Sydney 2.6% to $1,150,357 QLD Housing affordability improved
Brisbane 2.8% to $515,000 while rental affordability
Canberra 3.6% to $641,000 declined in Queensland
Median other dwelling prices up: SA South Australia had the largest increase
Melbourne 2.4% to $607,000 in average loan amount (3.6%)
Hobart 1.7% to $348,000 WA Western Australia had improvements
in both rental and housing affordability
Median other dwelling prices down: over the March quarter
Sydney 0.5% to $740,041
Adelaide 0.9% to $366,500 TAS Tasmania had the largest decline
Canberra 1.6% to $433,000 in rental affordability
Perth 2.2% to $401,000 NT Northern Territory had the largest
Brisbane 5.1% to $393,750 decrease in the number of first home
Darwin 7.5% to $347,500 buyer loans over the quarter
ACT ACT had the largest annual increase
in the number of new loans (7.1%)
T he A ustra l ian R ea l E state
P rofession A ims and O b j e c tives
The Real Estate Institute of The purpose of the scheme is: • To create an environment
Australia is in the process of where Professional Agents are
• To raise the bar on ethics and
considered as Trusted Advisors
creating a National Professional practice standards for the
betterment of consumers • To hold Professional Agents
Standards Scheme for the Real accountable to their standards
• To transform the service experience
Estate Industry. and commitments
to exceed consumer expectations
• To show Agents there is a better
• To become more valuable and
more collaborative way, the
relevant in a rapidly changing
Pathway to be a Professional
world whilst still retaining the
emotive human element • To create the blueprint for
a thriving career in a new
• To set new education standards
transparent and evolved era
to meet the required skill
levels of our clients’ needs • To see Industry Associations
guiding Professional Agents on
• To address and influence
the way to service innovation
regulatory creep caused by
and consumer care.
poor consumer experiences
• To provide Professional Agents Please see P2P website for further
with a readily identifiable details and register your interest.
consumer “mark” for personal
and community credibility
This article is brought to you
by Mr Malcolm Gunning
REIA President
Real Estate Industry
on Pathway to
Professionalism
Real estate agents across “On behalf of its member Real Estate “This scheme will not be for all
Australia are taking steps to Institutes, REIA has applied to the agents as only those prepared to
Professional Standards Authority raise the bar on their own standards,
be recognised as a profession
for admission as a profession,” REIA skills, education, performance
which will see benefits to the President Malcolm Gunning said. and commitments will qualify.”
consumer, according to the
“The Authority is an independent Mr Gunning said as a result there
Real Estate Institute of
statutory body established with will be two types of practitioners;
Australia (REIA). specific responsibilities under real estate professionals who are
professional standards legislation members of the scheme and those
for assessing and approving outside the rigors of the scheme.
applications for, and supervising
“Consumers will have a clear choice
the application of, Professional
between a valued professional
Standards Schemes,” he said.
and the low cost listing services
“For those agents wishing to pursue entering the industry and they will
a professional path, education and be able to determine the value
training standards will be raised far and effectiveness of both when
beyond those currently required for they come to sell their property.
regulatory purposes which will result
“It is expected that state and federal
in significant consumer benefits.
Governments across Australia will also
“REIA is completing four distinct welcome the move as has already been
and demanding phases as part of documented in the NSW Parliament.
the process which is expected to be
“We are forging a new
finalised by the end of 2019,” he said.
direction for the industry, and
Mr Gunning said in addition there as a result better experiences
will be a uniform robust code of and outcomes for property
ethics that participating professionals consumers,” Mr Gunning said.
will need to adhere to and a set of
For more information on the
auditable accountability commitments
program visit: reip2p.com.au
to maintain membership.
“Individuals will need firstly to be
members of their state Real Estate
Institute and then pass rigorous
tests to achieve recognition.
Protect
your
client’s
rental
property
and
income
Landlord insurance from just $1 a day*
Terri Scheer is Australia’s leading landlord insurance specialist, offering protection for your client’s rental
property from risks that standard building and contents insurance may not cover.
Loss of rent
Malicious and accidental damage by tenants
Theft by tenants
Flood, storm and water damage
Damage by pets
May be fully tax deductible
Call 1800 804 016 or visit terrischeer.com.au
Australia’s Leading Landlord Insurance Specialist
*Across Australia, 71% of Terri Scheer customers paid $1 or less a day for their Landlord Insurance Policy. Premium is based on all Terri Scheer Landlord Preferred and Landlord Self-Managed Insurance
policies purchased or renewal in the 12 months 01/03/16 to 28/02/17, inclusive of taxes. Conditions and legibility criteria apply. Consult your tax advisor in relation to tax deductibility of premium. Insurance
issued by AAI Limited ABN 48 005 297 807 AFSL 230859 trading as Vero Insurance. In arranging your insurance, Terri Scheer Insurance ABN 76 070 874 798 AFSL 218585 acts under authority given to
it by Vero Insurance. Read the Product Disclosure Statement before buying this insurance and consider whether it is right for you. Call 1800 804 016 for a copy.
This article is brought
to you by Zoe Arthur
Senior Partnerships
Adviser
R ea l E state I ndustry
gender pay gap
rea c hes re c ord high
The Real Estate Industry has one of the highest gender
pay gaps in Australia, according to the latest data from
the Workplace Gender Equality Agency.
The Workplace Gender Equality Identifying blockages that prevent strategies or policies on remuneration
Agency’s (Agency) 2016-17 data women from rising to the top can lead and there was a rise of almost
shows that women in the industry to better outcomes for all employees 11 percentage points in employers
earn on average 41 per cent less and help improve the business bottom analysing their data for pay gaps.
than men a year, a figure that has line. Research shows that gender
increased year-on-year from 2013 and equality is important for workplaces Improving gender equality will not
is almost double the overall average not only because it is ‘fair’ or ‘the right happen accidentally, and like any
gender pay gap of 22 per cent. thing to do’ but also because it can other business issue, a strategic and
improve organisational performance systematic approach is required. A key
This large gender pay gap is fuelled
and help attract and retain top talent. starting point for many organisations
by a lack of women in leadership
Research by McKinsey examined 366 is through annual reporting to the
positions across the industry. Women
companies across Canada, the UK Agency. The Agency also has range of
make up 50 per cent of the workforce
and the United States and found that tools and resources to help employers
but only account for 22 per cent of
companies within the top quartile for on our website: www.wgea.gov.au.
key management personnel. This
gender diversity were 15 per cent more
figure drops off even further at the
likely to have higher financial returns The Workplace Gender Equality
CEO level with men holding 91 per
than their national industry medians. Agency is a federal government agency
cent of top positions. The data shows
charged with promoting and improving
that women dominate lower paid Australian employers are increasingly
occupations in the sector, such as realising the benefits that gender gender equality in the workplace. Non-
clerical and administrative roles. The equality can bring and prioritising public sector organisations with 100
female talent pipeline in the industry gender pay equity as a business or more employees are required to
appears be blocked – Real Estate imperative. In 2016-17, over half of report to the Agency annually against
Agents, it is time to call in the plumber! reporting organisations have formal a range of gender equality indicators.
The 2018 Australasian
Auctioneering Championships
Registration is now open
visit www.auctionchampionships.com
Save
the date
14-16 Oct 2018
Sunday Monday Tuesday
14 October 15 October 16 October
Championship Championship Schools / Senior
Draw Heats Finals
10am - 5pm
6pm - 7:30pm 10am - 7pm 10am - 5pm
REINZ, Auckland Q Theatre Q Theatre
Gala Dinner | Maritime Room | 6:30pm - 10:30pm | TuesdayYour life your fund
Getting by
just fine,
thanks!
With our pension options you can
convert your super into an income
stream in retirement while enjoying
great tax advantages.
When you retire you’ll need to get by without
a regular pay cheque. REI Super’s Retirement
Pension will fill that gap.
If retirement’s still a few years away, you
might consider an REI Super Transition to
Retirement Pension, allowing you to access
some of your super now, while still working.
To find out more about REI Super’s
retirement income options or to
obtain expert advice on structuring
your retirement income, contact
1300 13 44 33 or visit
www.reisuper.com.au/retirement
Low fees
Profits to members
Strong returns
Ceil Rosenbaum, REI Super member www.reisuper.com.au
The information provided does not constitute financial product advice. However, to the
extent that the information may be considered to be general financial product advice, REI
Super advises that it has not considered any individual person’s objectives, financial situation
or particular needs. Individuals need to consider whether the advice is appropriate in light of
their goals, objectives and current situation. Members should obtain and read the Product
Disclosure Statement for REI Super before making any decisions. REI Superannuation Fund
Pty Ltd ABN 68 056 044, 770 AFSL 240569, RSE L 0000314, REI Super ABN 76 641 658 449,
RSE R1000412 MySuper unique identifier 76641658449129. February 2018. REI 53677Industry Update
Industry news from around Australia
Reforms signal positive change In fact this career path progression for could not be possible without the NSW
for Real Estate Profession those involved in the areas of advice Real Estate Reform package raising the
and negotiation is singularity the most bar to a new Industry wide height to
John Cunningham, Immediate
significant part of the reform package. enable the professional standards bar
Past President, REINSW
Anyone desiring to progress their career to be raised even higher. For further
Some of the most important reforms must within four years of obtaining information in regard to the reforms
to real estate practice in over 30 their certificate of registration complete go to www.reinsw.com.au/reforms.
years will be introduced in New the balance of units required for the
South Wales in July of this year. Cert IV. This will result in better trained, Source: The Real Estate Institute
of New South Wales
The overwhelming need for positive more highly skilled and more capable
change in our regulatory environment participants in the industry and that is
was identified over 10 years ago when it the outcome REINSW set out to achieve. Update on Rebate Statements
was becoming evident that the Federal We saw that the better the education,
Government’s desire for increased There has been an announcement
ongoing training, skills and standards the
competition in various industry sectors by government recently on the issue
better the performance of our people
was starting to have negative impacts. of rebate statements. This has come
and the better the experiences and
about because of some very recent
The opportunity to rort the system by outcomes for property consumers.
discussions and correspondence between
unscrupulous training organisations was The reforms will be far reaching including
our CEO, Gil King, the Government
resulting in an abundance of providers new disclosure requirements and the
and Consumer Affairs Victoria.
ripping off the system and producing introduction of the new licence class
either incompetent or incapable students of Licensee in Charge a new education The Government has advised that it
with the necessary qualifications but standard will be set. This class will require will amend the Estate Agents Act 1980
without the necessary skills to do the a Diploma qualification and as a result to protect agent commissions after
required jobs. Real Estate was right in a new course has been developed with contracts with incomplete rebate
the thick of this environment and the the desire to build business skills for statements were used. The Government
results are still being seen today. business owners. Better run businesses is taking action to ensure estate agents
mean better run teams and better who have followed their regulatory
The reforms being implemented on
consumer experiences and outcomes. responsibilities in good faith are paid
1 July 2018 hope to address that by
for the work they performed.
bringing more stringent course content, This new qualification will also mirror
with increased units for certificate the impending professional standards This announcement will have the effect
of registration courses and a focus program to finally create a uniform of stopping all claims on foot as well as
on foundation knowledge that will set of standards for the industry in any future potential claims against the
enable students to then progress their Australia under a Federal Government REIV or its members. This is an excellent
careers in both sales and property recognised Professional Standards result for the REIV, its members and the
management and progress to their Scheme that will see our industry finally real estate profession and a significant
licence Cert IV qualification. achieve professional status. This step win for the REIV. The legislative fix being
»» article continuesIndustry Update
Industry news from around Australia
»» continued
worked through is likely be introduced “It’s always up to the agent, in consultation
into parliament in the next few weeks. with the vendor, to choose the most
Should you have any questions, please appropriate method of sale for each
contact the REIV on 03 9205 6666 property – REBid simply offers another
during business hours. option to choose from” they said.
Richard Simpson, President, REIV REBid has been developed by an
Source: The Real Estate Institute of Victoria Adelaide-based company, REBid Pty
Ltd, whose founders combine both
REIs in WA and SA support online property and technology experience.
real estate sales platform REBid CEO, Bill Waterhouse, said “In an
A new online sales platform for real estate era when people do just about everything
agents is being supported by the Real online, we thought it was time for real
Estate Institutes in Western Australia estate to also embrace the digital age.
(REIWA) and South Australia (REISA). But we also know that buying and selling
a house is usually the biggest financial
The platform, REBid, has been designed
transaction most people undertake,
to be used by real estate agents, while
so the role of the real estate agent is
offering benefits to both buyers and sellers.
critical – that’s why we’ve set out to
Neville Pozzi, CEO of REIWA, said work with the industry, not disrupt it.”
“All industries need to embrace new
REBid was launched at AREC 2018
technologies or they face the risk of
on the Gold Coast on 27-28 May.
digital disruption from outside. At
REIWA we have partnered with REBid Source: The Real Estate Institute
of Western Australia
to offer an online solution that’s not
only beneficial to our members, but
also enhances the customer experience
for the real estate buying public.”
Greg Troughton, CEO of REISA, said “Best
practice and professionalism are a major
focus for our members, so we’ve partnered
with REBid because the transparency of
the online sales transaction enhances
the integrity of the sales process.”
Both Pozzi and Troughton agreed REBid
offered an alternative method of sale that
would suit some, but not all, properties.Professional indemnity claims: A real risk for real estate professionals When you’re focused on racing to property inspections, managing tenants and negotiating contracts, professional indemnity risk is probably the last thing on your mind. But the reality is that these everyday real estate scenarios can expose you to risks that could lead to a compensation claim. Professional Indemnity insurance can act as a safety net to provide protection from the costs associated with any claims, including legal costs and any damages awarded. If you would like to find out more or discuss your insurance needs, please contact Aon today. 1300 734 274 au.realestate@aon.com aon.com.au/realestate * Conditions apply. For full policy wording please contact 1300 734 274. © 2018 Aon Risk Services Australia Limited | ABN 17 000 434 720 | AFSL 241141. This information is general in nature and should not be relied on as advice (personal or otherwise) because your personal needs, objectives and financial situation have not been considered. So before deciding whether a particular product is right for you, please consider the relevant Product Disclosure Statement or contact us to speak to an adviser. AFF0987 0618
G o ing , g o ing , g o ne: D o n ’ t
l et professiona l indemnity
risk ruin your business
When you’re focused on racing to property – this could be due to a the wording and accuracy
property inspections, managing tenant skipping town without paying of information supplied by
tenants and negotiating contracts, their rent, or causing malicious vendors or Landlords
professional indemnity risk is damage to their rental property. • Implement policies, training and
probably the last thing on your • Employment Practices Liability: procedures for staff including
mind. But the reality is that these EPL claims arising from outgoing or social media and email policies
everyday real estate scenarios can current employees. These can be • Be proactive to staff matters
expose you to risks that could lead very costly - proven Unfair Dismissal involving bullying or harassment,
claims can lead to payment of up and seek immediate advice
to a compensation claim – causing
to 26 weeks salary, and claims from your broker or Insurer
financial and reputational harm to
relating to bullying, underpaying if an issue arises
you personally, and to the business and sham contracts are uncapped.
you’ve worked so hard to build.
• Personal injury: Claims arising from Protect your finances, your
Despite your best efforts to provide a client or employee being injured business and your livelihood
a quality service to your clients, the at your workplace or anywhere you
reality is that mistakes can happen. It’s do business, including property Even if you implement all the risk
therefore important to be aware of the inspections and auctions. minimisation strategies, accidents
risks involved with your line of work, so and mistakes can still happen.
you can put steps in place to help avoid How can you prevent That’s where Professional Indemnity
them and ensure that you’re protected falling victim to a claim? insurance can act as a safety net to
provide protection from the costs
with the right insurance cover. While it’s important to be aware of associated with any claims (including
the risks impacting your professional legal costs and any damages awarded).
The top risks facing real practice, it’s even more important to be With cover options tailored to the
estate professionals diligent and put steps in place to avoid unique requirements of real estate
Some common risks and claims or minimise them. We’ve compiled professionals, Professional Indemnity
relating to professional indemnity for some tips to help minimise some of insurance provides peace of mind
real estate professionals include: the most common real estate risks: and security – so you can keep
• Misrepresentation: Disputes arising • Complete thorough focusing on what you do best.
when the purchaser feels they have and regular property
been misled by advertising – such inspections with supporting We’re by your side
as describing a property with 4 documentation and photos
To learn more about minimising risk
bedrooms (instead of 3 + study) • Implement electronic systems
or to discuss your insurance coverage
• Mismanagement: Rental property to ensure timely follow ups of
properties and maintenance please contact Aon on 1800 466 894.
mismanagement claims occurring
when a Landlord incurs costs due • Ensure the accuracy of
to a loss of rent or damage to advertisements by vettingJOIN US IREC 2018, September 5 - 9, 2018 VIETNAM—A WORLD OF OPPORTUNITIES National Convention Center—Hanoi, Vietnam Photo: The Vietnam National Convention Center by Vu Long. IREC 2018 is a premier International Real Estate Conference gathering experts and real estate industry influencers from all over the world to connect, learn, network, share, and transact. Attending IREC 2018 you will: EARLY BIRD REGISTRATION * Connect with global influential industry leaders: builders, developers, Registered Through May 31, 2018 real estate professionals, global institutional investors US$150 / Person * Explore investment opportunities globally US$130 / Person for 10 or more * Empower yourself with market and industry knowledge through many educational sessions including latest trends, good practices, technology, NAR MEMBERS leadership, entrepreneurial, motivational and marketing skills US$140 / Person * Meet and be inspired by successful entrepreneurs US$120 / Person 10 or more * Networking opportunities with real estate professionals from around the world * Unique opportunity to showcase your products and services with over 1,300 vendors and over 60,000 foot traffic at the exhibition * Experience Vietnam’s culture and hospitality IREC 2018 is one conference you DO NOT want to miss! info@IREC2018.com www.IREC2018.com Host Strategic Partner
Political Watch
Information and news from government
Business losses to scams up 23% “With employment and investment “The total dwellings series has been
scams, scammers offer services commonly relatively stable for the past eight months,
Scammers swindled nearly $4.7 million used by businesses such as web page with around 19,000 dwellings approved
from Australian businesses in 2017 development, search engine optimisation, per month,” said Justin Lokhorst, Director
according to the ACCC’s latest Targeting small business loans and business of Construction Statistics at the ABS. “The
scams report – a 23 per cent increase directory listings. The business signs strength in approvals for houses is being
compared to 2016. up to what seems like a good deal but offset by weakness in semi-detached
quickly discover they receive no service and attached dwelling approvals.»
The ACCC’s Scamwatch service
and that the offer was not legitimate.” Among the states and territories, dwelling
received 5,432 reports from businesses
about scams in 2017. Businesses “It’s vital Australian businesses are approvals fell in April in Tasmania (3.7 per
that fell victim to scammers lost aware that scammers are actively out cent), Victoria (2.3 per cent) and Western
an average of nearly $11,000. there targeting them and to ensure they Australia (2.2 per cent) in trend terms.
have strong processes in place to avoid Dwelling approvals rose in trend terms
“Scammers don’t discriminate and
becoming victims,” Dr Schaper said. in the Australian Capital Territory
businesses have what scammers
Australian businesses are encouraged (14.8 per cent), the Northern Territory
want: money. They’ll use a variety
to visit www.scamwatch.gov.au (link (6.7 per cent), South Australia (1.7 per
of cons to swindle busy workers
is external) to learn more about scams cent), New South Wales (0.9 per cent)
and it can be very devastating to a and Queensland (0.7 per cent).
targeting them. They can follow
business’s bottom line,” ACCC Deputy
@scamwatch_gov (link is external) on In trend terms, approvals for private
Chair Dr Michael Schaper said.
Twitter and subscribe to Scamwatch sector houses rose 0.9 per cent in April.
Small businesses with fewer than radar alerts (link is external). Private sector house approvals rose in
20 staff were most likely to be targeted Queensland (1.6 per cent), Victoria (1.5 per
They can also sign up to the ACCC’s
by scammers and accounted for more Small Business Information Network cent) and New South Wales (0.6 per cent),
than 50 per cent of reports to the to receive emails about new or updated but fell in Western Australia (0.9 per
ACCC. Businesses were most likely to resources, enforcement action, changes cent) and South Australia (0.4 per cent).
be targeted with false billing scams to Australia’s competition and consumer In seasonally adjusted terms, total
(1,323 reports), while employment laws, events, surveys and scams dwellings fell by 5.0 per cent in April,
and investment scams caused the relevant to the small business sector. driven by a 11.5 per cent decrease
most losses at nearly $1.7 million. Source: Australian Competition & Consumer in private sector dwellings excluding
“We’ve seen a worrying and dramatic Commission houses. Private sector houses rose 0.1 per
jump in losses reported to us about cent in seasonally adjusted terms.
these two scams. False billing scams are The value of total building approved fell
Dwelling approvals fall in April 0.7 per cent in April, in trend terms, and
where a scammer tries to trick a business
into paying fake invoices for directory has fallen for six months. The value of
The number of dwellings approved
listings, advertising, domain name residential building fell 0.5 per cent while
in Australia fell by 0.1 per cent in
renewals or office supplies. The scammers non-residential building fell 1.0 per cent.
April 2018 in trend terms, according
are very aggressive and persistent in to data released by the Australian Source: The Australian Bureau of Statistics
demanding payment,” Dr Schaper said. Bureau of Statistics (ABS) recently.
»» article continuesPolitical Watch
Information and news from government
»» continued
New laws better protect process with set timeframes for taking • the date and time of the representation
vulnerable tenants action in response to a breach. • any other information that is prescribed
“What this means is that in those cases by the regulations (section 73B(2)(a)).
The Government has moved to where the ACAT orders a payment The record of the statement must be
protect tenants and consumers while plan for overdue rent, the process kept at a real estate agent’s principal
it continues to consider commercial for dealing with breaches of that plan place of business for at least three
alternatives to the traditional bond. by either a tenant or landlord will be years (section 73B(2)(b)). A maximum
People renting in Canberra will also have certain,” Minister Ramsay said. penalty of 200 penalty units (currently
a more suitable option manage overdue $22,000) applies for breaching this law.
Source: Gordon Ramsay, MLA ACT Government
payments under new laws passed in
the Legislative Assembly today. Source: The Real Estate Institute
of New South Wales
Attorney-General Gordon Ramsay said NSW Fair Trading law crackdown
the amendments to the Residential
Tenancies Act 1997 made these NSW Fair Trading confirmed at the REINSW Housing finance, Australia, April 2018
two very important changes to the Roadshow that they are targeting real
residential tenancy legislation. estate agents who are not keeping a The trend estimate for the total value of
“We have reinstated the delay on the use written record of their conversation when dwelling finance commitments excluding
of commercial guarantees as an alternative they are discussing the price of a property. alterations and additions fell 0.8%. Owner
to a rental bond to give the Government A REINSW member recently contacted occupied housing commitments fell 0.1%
more time to consider the implications for the Helpline and advised us that NSW and investment housing commitments
Canberra renters,” Minister Ramsay said. Fair Trading called to enquire about fell 2.0%. In seasonally adjusted terms,
“We need to make sure that tenants a property anonymously, before the total value of dwelling finance
and consumers continue to be turning up at their office the next commitments excluding alterations
protected under the legislation.” day to ask for their written record of and additions fell 0.2%. In trend terms,
their specified price or guide given. the number of commitments for owner
The legislation also replaces conditional
occupied housing finance fell 1.1% in
termination and possession orders with What does the law say about
April 2018. In trend terms, the number
a new type of order called a payment written records?
of commitments for the construction
order to manage overdue rent. The requirements for written of dwellings fell 1.7%, the number
“Conditional termination and possession records on selling price statements of commitments for the purchase of
orders were causing a lot of concern for fall under the Property, Stock and established dwellings fell 1.0% and
vulnerable tenants, and uncertainty in Business Agents Act 2002. the number of commitments for the
the law was making the process difficult NSW Fair Trading’s underquoting purchase of new dwellings fell 0.9%. In
and potentially costly for both landlords guidelines state a real estate agent who original terms, the number of first home
and tenants,” Minister Ramsay said. says the property is likely to be sold for buyer commitments as a percentage of
“These changes make the process for a specified price or within a specified total owner occupied housing finance
managing payment plans much clearer, price range must make a written record commitments rose to 17.6% in April
which benefits vulnerable tenants by of the statement (section 73B(1)). 2018 from 17.4% in March 2018.
ensuring that they have certainty and
The record of the statement must contain: Source: ABS
have the ability to make a case to the
ACAT about hardship. It also benefits • the address of the property
landlords by setting out a very clear • the price or price rangeF I A B C I N ews
Samantha Payne
P resident, F I A B C I
Au s t r a l i a
FIABCI was founded in The Australian Chapter of FIABCI FIABCI’s active involvement with other
was founded in 1970 with its current Worldwide Real Estate Industry related
1951 in Paris and exists in
Principle Members being REIA and groups and the level of respect that
all continents representing REIV. Having been an active member FIABCI deservedly commands makes
40 Professions of the Real of FIABCI for several years, to be being a member a priceless. I would
Estate Industry. FIABCI provided with the opportunity to recommend every Australian Property
provides access and take on the role of President of Professional to become a member
FIABCI Australia was a great honour. of FIABCI no matter what discipline,
opportunities for real estate Australia is a large sparsely populated age or nationality, it is a Global
professionals interested in country and as such, the wealth that Property ‘Family’ and has proved
gaining knowledge, sharing being a member of FIABCI comes invaluable to me and my Business!
information and conducting not only from being able to contact,
network, learn and do business with
international business To join, please visit the FIABCI website
Property Professionals from all over
with each other. With the world but even down to within
members in 65 countries, other States across Australia.
including 87 professional From the moment I joined FIABCI, I
associations and 79 academic have gained not just knowledge but
institutions, FIABCI is fantastic business relationships and
more importantly like-minded friends
the most representative,
all over the world and have been
non-political real estate made to feel very welcome wherever
organization in the world and I have travelled within the FIABCI
holds special consultative network. Wherever you visit, there
status with the Economic is always a FIABCI member who will
be happy to welcome you to their
and Social Council (ECOSOC) country and offer their hospitality to
of the United Nations. you, your friends and your family!Secure your ticket and put the date in your calendar for Australia’s
only event bringing together senior politicians, policy makers and
regulators who are influencing policy for small business.
Power and the people
Small businesses across Australia are powered by the over
4.5 million people they employ, and contribute a valuable
$3.4 billion to the Australian economy annually.
The agility of small businesses provides our society with the capability
to innovate, and respond to adversity faster than big business,
while remaining connected to our communities and culture. It is
the power of small business people that make a difference.
By August 2018, we will be closer to a Federal Election, so we can focus
and promote the policies we want front-and-centre for all political parties.
Key sessions will cover: You’re invited to attend Australia’s
premier policy event driving discussion
• Workplace relations
between small business, senior
• Superannuation
politicians as well as bureaucrats and big
• Paid parental leave business representatives. In a three-
• Contract law and way exchange of minds, we will debate
competition policy policy and build productivity for the
• Women in business betterment of our small business people.
• Vocational education
Register today to connect and hear from
and training
key decision makers and influencers,
• Compliance and such as the Small Business & Family
regulation demands
Enterprise Ombudsman, Fair Work
• Mental health and wellness Ombudsman, Commissioner of
• Cyber security and Taxation, ACCC and Council of Small
data protection Business Australia (COSBOA).The World
Property news from around the world
and are able to act on these before on foreigner property investors and
other investors are even looking”. rapid capital appreciation over the past
To help Australian property investors 12 months makes Germany one of the
get ahead, Charles shares his most lucrative destinations within Europe.
predictions for the next top five A growing number of start-ups and new
international property hotspots: business is fueling population growth in
Berlin, as it increased by over 300,000
between 2005 and 2016 and is predicted
Manchester (England)
to increase by another 400,000 new
Charles Pinckney Compared to London, Manchester’s residents by 20302. New construction in
Managing Director, CityYield market is undervalued and has significant Berlin is lower than in any of Germany’s
potential for uplift. This is due to the fact other major cities, and with population
Expert predicts the next that they have a number of upcoming growth outlined above driving housing
international property hotspots projects to support regeneration demand, prices are responding positively
and economic growth. These include as expected and are predicted to continue
Research reveals that 1 in 2 Australians
The Manchester Airport which is to do so. The €5.3 billion investment into
would choose to purchase investment
undergoing a dramatic £1 billion- the Berlin Brandenburg Airport is also
properties overseas, and from those
pound transformation, the 50 billion+ scheduled to open in 2020 bringing with it
respondents, 50% would prefer to
High Speed Rail 2 (HS2) project which direct flights to global cities and opening
purchase overseas compared to buying
will connect London and the North up Berlin as a central business destination.
locally if they had the funds, information,
of England, a £350 million major new
tools and resources to do so1.
Metrolink extension and a £1 billion Edinburgh (Scotland)
Charles Pinckney, Managing Director of expansion of MediaCityUK (phase 2)
CityYield a premiere global agency that A high quality of life, affordability and
which is set to double the size of a
specialises in the sale of investment competitive cost base make Edinburgh
rapidly growing sector in Manchester.
properties – says, “Investing overseas is an attractive choice for property
Manchester is also one of Europe’s investors. House prices have been
an ideal way for Australians to enter the
largest student populations with the soaring over the past 18 months, and
property market as investors can earn
highest retention rate post-graduation, have only slowed due to an increase in
higher returns and build a profitable
therefore increasing rental demand. In properties available on the market.
portfolio. With international property
order to retain these skilled workers,
becoming more accessible and popular Edinburgh is the busiest international
with everyday Australians, finding iconic British brands including the
hub in Scotland and has the strongest
lucrative opportunities and acting fast BBC and ITV studios have relocated
economy of any city in the UK outside
is even more crucial than ever”. parts of their operations to this City.
of London. Their business focused
Charles continues, “At CityYield, we ecosystem, highly skilled workforce and
Berlin (Germany)
use our extensive partnerships, expert strong reputation for start-ups pushes
knowledge and innovative technology to The continuous regeneration of key the population of Edinburgh up, and
identify valuable trends for our clients German cities, lack of restrictions subsequently housing demand. They
1 Analysis by WorldFirst 2018 2 Institute for Economic Research (IW)
»» article continuesThe World
Property news from around the world
»» continued
are also making improvements to their place to buy in the US at this stage.4
public transport network as Waverly Their home prices also increased 9% in
Station currently has over 20 million 2017 and rental value went up by 8%
users per year, making it the largest in 2016 alone, offering strong yields
British train station outside London. to investors. Aside from this, Orlando
has a strong technology hub and is the
Tokyo (Japan) base of several businesses in the film,
television, and video game industries.
With a strong capital appreciation, stable
Charles concludes, “With Australian
rental yields, a weakening yen, and the
properties being inaccessible for
upcoming 2020 Olympics, the Tokyo
a majority of investors, it is crucial
property market is an attractive choice. that investors leverage the power of
Although Japan as a whole is facing an international property in order to increase
aging population crisis, the 5 central their chance of success. With services
wards of Tokyo recorded increases in available to predict hotspots and offer
population ranging from 16% to 54.7% advice every step of the way, there is no
since October 2010. Rental yields in Tokyo longer a reason for Australians to fear
are also more favorable in comparison to international property investment”.
other Asian countries, sitting at 3.5-4%.3 CityYield is a premiere global agency
As a result of its positive yield spread specialising in the sale of investment
between real estate assets and the cost property for rental yield across leading
of capital, Japanese banks generally international markets. By helping non-
lend real estate at low interest rates. institutional investors find, analyse and
acquire properties for rental yield around
Orlando (USA) the world, they are revolutionising
international property investment.
The strength of the US dollar and high
degree of economic stability adds an
increased level of safety to a property
portfolio. Orlando homes are still grossly
undervalued as they have taken time
to recover from the property crash,
suggesting a healthy potential for capital
growth. A perfect combination of job
growth (7.1% job growth over the past two
years), population growth (7.6% population
4 https://www.forbes.com/sites/
growth over the last three years) and samanthasharf/2018/02/01/best-buy-cities-where-
affordability places Orlando as the to-invest-in-housing-in-2018/#19a536c1298b
3 https://coown.world/city-guide-tokyo-japan/REIANEWS
IS A PUBLICATION BROUGHT TO YOU BY THE REAL
ESTATE INSTITUTE OF AUSTRALIA. FOR FURTHER
INFORMATION ABOUT ADVERTISING, PLEASE
CONTACT REIA ON 02 6282 4277
OR AT REIA@REIA.COM.AU
16 THESIGER COURT, DEAKIN ACT 2600
02 6282 4277 I WWW.REIA.COM.AUYou can also read
