The Estate Agent - March- April 2015

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Residential and commercial research Residential, retail and industrial research Median prices & rents Days on market Economic indicators and commentary Property market sentiment index Research Bulletin.

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Contents

18 ‘We are at record levels in terms of apartment development but also record levels in terms of population growth’ Knight Frank Victorian research director Richard Jenkins

Cover story living the high life

Demand for apartments is being driven by downsizers, local and overseas investors and first home buyers

Features

14 16 24 32 38

Auctions set hot pace Melbourne’s reputation as Australia’s auction capital was never in doubt, but 2014 was the year it sewed up the title

Under the hammer See the best in the business as REIV hosts the Australasian Real Estate Institute’s Auctioneering Championships

Tragedy’s legacy: be on your guard The death of a three-year-old girl has underscored the need for property managers to be ever vigilant on pool safety

Prostate cancer: why take a risk?

Medical science is offering men a lifeline by unlocking some of the secrets of prostate cancer

14

Why you need to look the part Looks can kill … especially that sale prospect if the agent doesn’t look smart and trustworthy on first impression

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38 The Estate Agent ❘ March–April 2015

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Contents

5 President’s Report 7

CEO Report

9 Bulletin 13 Market Forecast 26 Best Practice 28 Member Services 30 Market Update 34 REIA News 35 Member News

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36 Events Calendar 37 Training Calendar 41 Obituaries 43 REIV Directory

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EA

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

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

The Estate Agent

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

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The Estate Agent ❘ March–April 2015

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

President’s Report Ian McDonald President REIV

Challenging times ahead but we have the skills and commitment to win

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his is an exciting and challenging year for the REIV, with our industry going through substantial change and the economy in a state of flux. There is a need for the REIV board and management to be proactive on behalf of members in meeting the challenges ahead.

Having served on the board for a year before being selected as president, I can assure members we are aware of this need.

So, this year will be an important one for the REIV in responding politically and financially to deliver services to members.

The media has been paying considerable attention to current economic uncertainties such as declining resources prices, consumer and business confidence, unemployment and the Federal Government’s budget difficulties. There has been speculation this could impact on property prices.

While I believe confidence should continue, the economy has changed in the past year and will continue to change. As we know, it has become a slowing national economy, with our manufacturing and resources sectors both affected.

While this is so, and the property market may moderate at some stage in the next 12 months, it should still be a solid year. Interest rates, which had been at an historic low for 18 months, have already fallen further and the sales year has started well, with auction numbers high in the lead-up to the autumn selling season.

This is creating strong demand for

Knowledge is power: Training and development will improve skills across the industry.

skilled auctioneers and many agents are benefiting from our excellent auctioneering courses. As a real estate agent and valuer with almost 50 years’ industry experience, I am committed to increasing the professionalism in our industry.

Better training is always vital for the industry as a whole. It not only improves our knowledge and skills and therefore our ability to do our job, but

‘Training is always vital for the industry as a whole. It not only improves our knowledge and skills and therefore our ability to do our job, but enables us to provide a better service to buyers and vendors’

enables us to provide a better service to buyers and vendors.

When I entered the industry in the 1960s, it was drummed into me that I needed to become a highly proficient – and highly professional – agent.

I had two important mentors in those days, Bill Hogg and Keith Burnham.

Both believed new agents were representing the industry as a whole, and that I, as a new agent, needed to operate to the highest possible standards. I believe that this is still vital.

I believe most buyers and sellers have positive experiences in their dealings with real estate agents, but there is an ongoing need for the REIV and the Continued on page 6

The Estate Agent ❘ March–April 2015

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President’s Report

Continued from page 5

broader industry to lift the perception of real estate as a career.

This will ensure there is a continual renewal of agents entering the industry – delivering an ongoing, positive experience for those buying and selling property across the state.

I believe it is important for older agents such as myself to embrace change and I am excited at the opportunities offered by technological advances. REIV’s training department has been doing an excellent job of upskilling agents to benefit from the opportunities offered by technology and to learn about new advances which will boost their careers and businesses.

But I also believe we must work to ensure we control technology, not the other way around. The major online portals, locked in a head-to-head battle for market share, exist to make money for their shareholders, not to

‘REIV delivers many valuable services and serves several important functions for its members. These include training and advocacy on members’ behalf. We have a new government in Victoria, with which REIV has already established good relations’ help agents sell property. Our industryowned portal realestateVIEW.com.au serves only buyer, vendor and agents’ interests and is working to expand the services it offers in these challenging times.

REIV delivers many valuable services and serves several important functions for its members. These include training and advocacy on members’ behalf. We have a new government in Victoria, with which REIV has already established good relations and we will be working with the government to protect and advance the interests of our members.

It is important we reinforce to members the REIV is the “go-to” place to assist them, and all stakeholders. This is the core of the REIV Strategic Plan which was developed in late February by the board and management team.

Further information on this plan will be outlined in future editions of EA. I have high hopes for the REIV in 2015 – I believe it will continue to grow and meet members’ needs to the highest level possible. I look forward to serving members’ interests, along with other board members, over the year ahead – and in keeping you updated as progress is made.

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The Estate Agent ❘ March–April 2015

REIV 1

CEO Report Enzo Raimondo CEO REIV

Market outlook strong, but jobs and wages growth to play a part

iStock

T

he New Year opened with good news for homebuyers. With interest rates at an historic low for 18 months, the Reserve Bank dropped them by a further 25 basis points in February.

So the buoyant Melbourne and regional Victorian housing markets in the final months of last year looked set to flow on into 2015. Melbourne’s housing market rebounded in the final quarter of last year, with the city’s median house price of $669,000 up 5.3 per cent on the more subdued September quarter. The record-breaking auction boom, with more than 40,000 auctions in 2014, continued until just days before Christmas and helped push up prices.

Four Melbourne suburbs joined the million-dollar club for the first time ever in the final three months of 2014 – Richmond, Northcote, Strathmore and Flinders all had median prices of more than $1 million for the first time.

East Melbourne, Carlton North, Clifton Hill and Aberfeldie were back on the list of 59 Melbourne suburbs with million-dollar-plus median house prices – a total of eight additions

‘While ... we expect the market to remain solid, macro factors such as the unemployment rate and low wages growth are likely to have an impact. Consumer and business sentiment will also have a bearing’ to the list. The regional market also rebounded – the median house price in regional Victoria for the December quarter was $344,000, up 5.5 per cent on September. Many homebuyers are looking to regional Victoria for more affordable properties as city prices rise.

The REIV expects house prices to continue to grow nationally in 2015, and any further falls in interest rates will, of course, help this. NAB chief economist Alan Oster told a recent REIV/API function NAB is tipping at least one, perhaps two further cuts.

But the market is likely to be more evenly balanced. Predictions are also predicated on macro economic factors, making certainty difficult. While in the next three months we expect the market to remain solid, macro factors such as the unemployment rate and low wages growth are likely to have an impact. Consumer and business

sentiment will also have a bearing on the prospects of the market in the coming year.

News from the Australian Bureau of Statistics in late February that wages growth had dropped to its lowest level since 1997 was expected to increase the chance of further interest rate cuts. While this may seem positive it reflects variable business confidence, employment levels and income growth, which is bad news for homebuyers.

Of course, local factors play a key role in determining house prices. And while the Melbourne median provides a useful overview there can be substantial variations between suburbs.

The key growth suburbs in the final three months of 2014 illustrate this: for example, prices in Dandenong North and Thomastown are benefiting from the ripple effect as buyers priced out Continued on page 8

The Estate Agent ❘ March–April 2015

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CEO Report

of neighbouring suburbs closer to the CBD look further afield.

Also, Dromana and Mount Martha, both among the top 20 growth suburbs for the quarter, are benefiting from the completion of Peninsula Link.

Local factors such as unemployment levels, infrastructure and transport services and distance from Melbourne impact local property markets.

At a federal level, plans to strengthen compliance and enforcement of regulations on foreign investment in Australian residential real estate are important to note.

Although the House of Representatives Standing Committee on Economics found foreign investors were not competing with first-time buyers, the Federal Government has announced plans to introduce a fee for foreign buyers and strengthen fines.

The REIA, which represents us at a national level, advocated strengthening enforcement and compliance but

‘Foreign investment has been found to increase the supply of new housing at a time of shortage and we would not want to impact on this’

is monitoring the planned new application fees – $10,000 for properties between $1 million and $2 million and an extra $10,000 for every $1 million increment in price – to ensure they don’t discourage investment. Foreign investment has been found to increase the supply of new housing at a time of shortage and we would not want to impact on this.

We also strongly support the REIA’s pre-budget submission to the Federal Government urging it to retain negative gearing. This encourages property investment and ensures continued supply of rental properties.

The tax concessions available enable many ordinary Australians to invest in the property market.

We believe this is every Australian’s right and it was encouraging to see that by the end of February the Melbourne residential market had already experienced its first “super Saturday”, with more than 1300 auctions.

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The Estate Agent ❘ March–April 2015

Bulletin

reia pre-budget push on negative gearing Negative gearing must stay – that is the message from the Real Estate Institute of Australia to the Federal Government in the lead up to the next federal budget.

Retention of negative gearing was a key platform of the REIA’s pre-budget submission. It told the government negative gearing encourages investment in property and keeps rents down by ensuring supply of rental properties.

It said it was untrue negative gearing exacerbated housing affordability issues.

Rather, the current tax arrangements gave many Australians the chance to invest in property. In fact, the latest taxation statistics show 14.9 per cent of individual taxpayers – almost 1.9 million people – were investors in the residential property market, the submission said.

Most rental property owners were “ordinary mums and dads” with only one investment property. In 2011-12, seven out of 10 property investors benefiting from negative gearing earned a taxable income of up to $80,001 a year.

The release of the submission attracted considerable interest from online and print media. REIA chief executive officer Amanda Lynch’s message was clear: “The evidence is that both negative gearing and the capital gains tax discount feed the supply-side pipeline at a time of a chronic under-supply of houses in Australia. Any alteration to the current arrangements would likely result

Invested interest: Almost 1.9 million Australian taxpayers invest in the residential property market.

in a need for a greater investment by the government in social housing and could potentially increase rents – as recognised by the Henry Tax Review in 2010, which stated that the current provisions placed downward pressure on rents.”

The submission had eight key recommendations, including abolition of stamp duties, access to superannuation by young Australians for use as a house

deposit, no increase in capital gains tax on property investments and a uniform approach to first home buyer assistance for both new and established homes.

It said its aim was contributing to Australia’s continuing economic development and productivity while attracting first home buyers back into the property market and improving housing affordability.

Subscribe to a daily dose of real estate discussion There is a new addition to the real estate conversation, with the launch of online real estate news service RECON Daily. The free daily newsletter is billed as “a new and sophisticated take on the residential property market”, at a time when there has never been more issues surrounding home ownership.

It is a mix of issues-based discussion – taxation, foreign investment, interest rates, for example – and showcasing homes. There are regular blogs and a focus on industry movers and shakers – REIV’s Enzo Raimondo was featured in an early edition and contributes regularly. REIV’s data often features in its news columns.

It is published by SchwartzWilliams in association with Schwartz Media, the

publishing empire of Morry Schwartz with titles including The Monthly, The Quarterly Essay and The Saturday Paper, as well as the Real Estate Institute of Australia.

It is not Schwartz’s first venture into online real estate – in 2009, he launched a website which listed property worth more than $1 million as well as listings site thehomepage.com.au.

RECON Daily’s content is challenging and informative, much of it of interest to those in the industry – for example, recent analysis of 2015 market prospects, and a look at new tenancy regulations, analysis of first home buyer figures and provocative posts on improving the industry’s reputation. There is also a focus on interesting, sometimes lavish homes. There is plenty of opportunity for comments, which are moderated.

Go to therealestateconversation.com.au to sign up for the free subscription The Estate Agent ❘ March–April 2015

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Bulletin

House and land partnership looks a perfect match Agents who sell land, buyers seeking a house and land package, and builders and developers are all set to benefit from a realestateVIEW.com.au partnership with a house-and-land-matching online platform.

The new partnership with houseandland.com.au has led to a residential tab on realestateVIEW.com.au where buyers can search for and match new home designs and land.

The new platform complements realestateVIEW’s existing online offerings. It greatly benefits agents, driving greater traffic to the realestateVIEW site – with houseandland.com.au’s site also linking to realestateVIEW.com.au.

Petra Sprekos, general manager of realestateVIEW, said first time buyers in Victoria were likely to be attracted to these listings because the state’s first home owner grant was available to those who purchased a new property.

New horizons: Buyers can search for and match new home designs and land on realestateVIEW.com.au.

Listings include newly built homes and those available off the plan at a wide range of price points.

House-hunters can search home designs and display homes, including

viewing floorplans, land for sale and land estates, as well as complete house and land packages. realestateview.houseandland.com.au

Online property exchange rolls out in Victoria Australia’s first national conveyancing platform was rolled out in Victoria in February, enabling practitioners in Victoria to sign on, and complete online property transfers.

This follows its early steps towards this, with lawyers and conveyancers in the state able to lodge and remove caveats online since June.

Property Exchange Australia CEO Marcus Price said: “This marks a huge milestone in PEXA becoming the first truly national online property exchange and settlement platform in the world.

PEXA will automatically: Lodge documents with the Land Registry ■ Exchange funds and pay stamp duty and other third party beneficiaries ■ Remove the need for bank cheques and the wait that goes with them ■ Remove the need to physically attend settlement ■

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The Estate Agent ❘ March–April 2015

“The platform modernises conveyancing, improving cost efficiencies and almost eliminates the significant rework linked to mistakes made using traditional paper-based conveyancing.

PEXA is an unlisted public company owned by the Victorian, New South Wales, Queensland and Western Australian governments, as well as several large financial institutions. It removes the manual paperwork and processes associated with the exchange of property.

The company was formed in 2010 to deliver national electronic conveyancing to the Australian property industry.

Rollout began in Victoria and New South Wales with preselected property lawyers and conveyancers in Melbourne and Sydney in October.

Now the entire Victorian and New South Wales markets are being invited to join, PEXA has a team of people working with practitioners in Victoria to ensure they are PEXA-ready.

Queensland and Western Australia will follow in May, then the Northern Territory and remaining states. Land registries, financial institutions and practitioners will be able to transact together online.

PEXA says practitioners will save clients money – documents will be quicker to prepare and it won’t be necessary to attend settlements. It will also be more efficient and the technology will reduce errors.

The Real Estate Institute of Australia says this will make buying and selling property “simpler, quicker and more transparent” and will mean immediate access to the proceeds of sale.

All participants in a transaction must register with PEXA – there is no joining fee, fees are per transaction. It verifies their identity and they must verify the identity of their clients.

Lawyers and conveyancers open an online workspace where the registry documents and settlement schedule are created and all parties share the transaction information.

Subscribers with digital signing rights must be issued with a digital signing certificate.

Go to pexa.com.au for information on registration. To download a fact sheet on e-conveyancing, go to reia.asn.au/ agents/e-conveyancing-is-here

Bulletin

Agents, buyers embrace mobile listing platform The new mobile listing platform launched by realestateVIEW.com.au has been welcomed by agents around Australia, with more than 17,000 downloads since its launch six months ago.

App developers propertyVIEWlive.com.au, in conjunction with realestateVIEW.com.au and REIV, launched the new smartphone app. There have since been 122 agency versions of the app – spanning 162 offices – custom made.

This number is expected to increase exponentially, with almost 322,000 views since its launch.

PropertyVIEWlive enables agents to directly list properties without going via a website. They can do so using their custom-built, fully branded app as soon as properties hit the sales or rental market.

Clients who have downloaded the app free from the Apple and Android stores can be instantly updated about the new listings by push notifications.

REIV chief executive officer Enzo Raimondo calls the initiative “a real game-changer for the industry”.

“There is no other platform available that gives agents the same direct access to clients as quickly, and the opportunity to acquire leads before their listing hits the market,” he says.

“A property could be sold before listing on a web portal, saving vendors thousands in marketing fees.”

Futhermore, buyers benefit because they gain instant notification – eliminating

Features of the new mobile app include: ■ Check-in, so buyers can register for

open-for-inspections and follow a property ■ Display of agents’ news, such as staff profiles and business developments ■ Ability to host Section 32s and rental applications, streamlining administration ■ Live feeds from realestateVIEW.com. au and its current listings ■ Safety button, so agents working alone can alert their office if they feel threatened or need help at open-for-inspections ■ In-app advertising, an additional revenue stream

Mobile move: PropertyVIEWlive enables agents to directly list properties without going via a website.

the time between a listing being secured and it appearing on a website or in print.

Buyers have control over what messages they receive by setting their alerts. Their personal details are not needed. Agents are notified that a property is being followed, but not by whom unless the buyer registers their details.

Most importantly, the listings signed up belong to the agent. Web portals dilute this by placing the agent’s brand and listings up against the competition and charging to do so, Raimondo says.

He added that the app acts as an extension of the shop front, helping

‘This platform was created to further enhance and support the role of the agent in the property transaction’

– Enzo Raimondo agents maintain their local expert position in the marketplace.

“Agents can now have direct communication with any clients looking to buy in their area,” Raimondo says.

“This platform was created to further enhance and support the role of the agent in the property transaction – it’s going to be a real game changer for the industry.”

CAV guides go online CAV will no longer produce printed versions of several of its publications, with the information readily available on its comprehensive website.

Its buying and selling guide is now out of print and its guide to living in and managing an owners corporation soon will be.

As well as the website capturing

that information, with links to specific components such as model rules, enforcing owners corporation rules and handling complaints, the guide PDFs will remain on the CAV site for now.

This information can be found at: consumer.vic.gov.au/property consumer.vic.gov.au/ownerscorp consumer.vic.gov.au/ownerscorpmanagers The Estate Agent ❘ March–April 2015

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Bulletin

Rental blaze sparks action on fire safety After a fire in a Footscray rental property, Consumer Affairs Victoria has worked with the Metropolitan Fire Brigade to implement recommendations by the coroner.

One of these was that CAV update its Renting a Home – A Guide for Tenants to include more information on smoke alarm maintenance and fire safety messages, including the safe use of power boards.

The result was a new flyer, Be Fire Safe in Your Rental Property.

CAV says while it is the landlord’s responsibility to install a working smoke alarm and maintain the batteries, it is the tenant’s responsibility to carry out monthly testing and annual dusting of the alarm and to let the landlord know if there are problems with it.

REIV will shortly release a fire alarm checklist for property managers –

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The Estate Agent ❘ March–April 2015

BLA moves online

further details will be provided in an upcoming edition of e-news, and emailed to all REIV PMs.

The Business Licensing Authority (BLA) has moved to a new online transaction system for licensed estate agents.

It says the new system, which came into effect last December, is designed to make lodging annual statements and updating licence details easier. It will also save time and allow retrieval of passwords via email instead of physical mail.

The site, at which agents can login, set up an account, access company and individual licence forms, also offers links for lodging annual statements, changing details and changing agent representative details.

There are also links to relevant legislation on the page.

User IDs and passcodes for the previous system no longer work and a new account is needed.

For further details, contact PM Chapter chair Zac Karvoun on 9326 8883

For more information and to access the new system, visit consumer.vic.gov.au/ estateagents

Safety first: Landlords are responsible for fitting and maintaining smoke alarms in their properties.

Market Forecast

Jobless key to RBA’s moves Another interest rate cut or two and no substantial fall in Melbourne house prices are tipped by NAB’s chief economist

T

he NAB’s chief economist Alan Oster told the REIV’s annual State of the Market event there was no Australian housing bubble and a substantial fall in house prices – 20 to 30 per cent, for example – would not happen unless unemployment topped 10 per cent.

That would not happen, with NAB expecting the unemployment rate to hit about 6.6 per cent in 2015, and no more than 7 per cent, he predicted.

Oster was a keynote speaker at the February event, a partnership between REIV and the Australian Property Institute offering economic and major property market segment forecasts.

Fellow guest speaker Angie Zigomanis, senior manager with forecaster BIS Shrapnel, was equally upbeat, saying it expected to see 3 per cent house price growth in Victoria in 2015 and 2 per cent in 2016.

After the recent interest rate cut to 2.25 per cent, the lowest level since the 1950s and welcomed by REIA president Neville Sanders, Oster predicted a further cut of 25 basis points in May. There was a 30 per cent chance of a further cut this year.

While there was substantial downward pressure on the CPI, a result of the drop in fuel prices, the jobless rate would be the basis on which the Reserve Bank decided on a cut. House prices would not be the deciding factor – rather, high unemployment would mean cuts would continue.

Oster said 80 per cent of NAB home loan customers were four months ahead on their payments – substantially higher than historical rates, indicating many NAB customers did have discretionary spending cash.

However, “actual” personal income and wages growth were negative – the lowest in about 30 years – and contributing to consumer fears about the cost of living, utilities, education and housing being the main factors.

Upbeat: Alan Oster sees no housing bubble.

The apartments market also received attention, with Oster saying the Melbourne investor market generally had started to soften. While “officially” 30 per cent of new apartments in Melbourne were bought by overseas buyers, the figure may well be much higher than this, he said. He predicted this would continue regardless of how well China’s economy performed.

‘While Australia’s economic performance was mixed, a recession was ‘extremely unlikely’ – Alan Oster Zigomanis predicted the building and supply of inner-city high-density housing would continue for up to three years.

BIS Shrapnel expected one more rate cut in March, then no further cut this year.

Oster’s economic overview included the NAB’s expectation the Australian dollar would level out at the high $0.70c mark against the US dollar this year. It did not see the dollar as overvalued at this level.

The depreciated currency partially offsets the damaging effects of lower commodity prices, Oster said.

While Australia’s economic performance was mixed, a recession was “extremely unlikely”. Key trading partner China was in a good position and the US was improving.

And while oversupply of iron ore had been driving down prices, with BHP Billiton/Rio Tinto flooding the market, they were still able to deliver it more profitably than most of their competitors. But in the short-term the damage from these reduced prices outweighed the benefits of cheap oil, with Oster predicting oil prices would remain low in the long-term – NAB believes the current low prices are the new “normal”.

He said US oil production had dramatically increased recently, the result of production coming online with new oil rigs and shale oil. US production outstripped Russia and Saudia Arabia/OPEC. Meanwhile, business confidence had rebounded in February – despite leadership and other political turmoil in Canberra. Oster pointed out it was not all about politics, with confidence varying substantially between sectors. So while in mining and manufacturing confidence was low, personal services and entertainment were doing well.

This rebound represented a turnaround of the slow decline which had followed the election of the Abbott Coalition government. Although there had been a peak when the government was elected, this decline had continued until December last year. Now, things are looking up.

The Estate Agent ❘ March–April 2015

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Auctions

Auctions set hot pace Melbourne’s reputation as Australia’s auction capital was never in doubt, but 2014 was the year it sewed up the title by smashing all previous records

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here were 40,725 auctions in Victoria last year, most in Melbourne, up from 34,504 in 2013 and breaking the previous record of 34,619 in 2010. What’s new was not only the auction numbers and record auction weekends – 1682 on October 26 and 1529 on December 7 – but the increase in outer suburban and regional auctions and the changing face of auctioneering.

November was the biggest auction month on record with 5336 auctions – 3579 resulting in sales. The previous record was November 2013, with 5035 auctions. After Cup Day weekend there were four consecutive “super Saturday” weekends, each with more than 1000 auctions.

It’s no surprise the inner suburbs were a focus of this auction boom, with 15,692 of the auctions there. But it was the middle ring suburbs – 10km to 20km from the CBD – where most auctions were held – 15,759.

Although numbers in the outer suburbs were smaller – 6418 auctions – this was up 40 per cent, with auctions held in many areas previously the sole preserve of private sales. That was the story in regional centres, too, with 2850 auctions across regional Victoria last year, a 21 per cent increase.

In Melbourne, the most auctions were in the large northern suburb of Reservoir, while Richmond, always an auction hotspot, was second on the top-10 list with 412 auctions compared with Reservoir’s 425. Other suburbs with many auctions included Bentleigh

Complementary skill: Experienced agent Ruth Roberts says auctioneering has increased her profile.

East, Glen Waverley, Mount Waverley, Glen Iris, South Yarra, Preston, Hawthorn and Camberwell.

Although auctioneering remains a profession dominated by experienced male agents, that is changing. Young agents, women and agents from a variety of ethnic backgrounds are now learning and practising the skill, offering their clients a full service from listing to auction sale and reflecting the diversity of the state’s population.

Luke Banitsiotis, REIV’s 2014 novice auctioneer competition winner, says

‘I have auctioneer on my business card. People look at it and go, “You must know what you’re doing”.’

– Luke Banitsiotis 14

The Estate Agent ❘ March–April 2015

there has definitely been a shift to a more diverse group. “There are definitely a lot of younger auctioneers getting into it and the novice competition really helps with that,” he said.

Banitsiotis, a sales consultant with Woodards Blackburn, finds he is taken more seriously now than he was as a younger salesperson. He describes becoming an auctioneer as “having that (extra) notch in your belt”.

“It has alleviated the age thing,” Banitsiotis, 25, says. “I did not expect that to happen but it has probably been the best outcome out of it. I have auctioneer on my business card. People look at it and go, ‘You must know what you’re doing’.”

That offers a competitive advantage,

Oc, opoAuctions

Winning formula: Luke Banitsiotis took out last year’s REIV novice auctioneer competition.

he believes. Instead of telling clients he will be working the crowd during their auction, he can say he will be conducting it.

“I got three listings in the same street after doing the auctions. It definitely does make it easier,” he says.

Jaymee Le, a single mother of Vietnamese background, has been in real estate for six-and-a-half years.

“There are not a lot of female auctioneers out there, it is definitely a point of interest. I don’t know of any Asian, Vietnamese female auctioneers out there,” she says.

Being able to auction a property means “walking into a listing, presenting and saying, ‘I can auction your property as well’,” she says.

A contestant in last year’s REIV novice auctioneering competition, Le trained with last year’s REIV senior auctioneer of the year winner Harry Li and with Michael Choi, who has represented Victoria in the Australasian Auction Championships.

A sales consultant with Ray White Noble Park for the past 18 months, she also trained in-house with Ray White principal auctioneer Jeremy Tyrrell and won the Ray White novice auctioneering competition in February.

Le describes herself as “stumbling” into real estate after walking into McDonald Real Estate in Springvale, where she would work with Choi.

Divorced, with three children, she needed a job – her first-ever. “The director said, ‘You have no resume’.

I asked for two weeks unpaid and it pretty much went from there, I started off as PA,” she says. “I have always

wanted to do auctioneering from the very first day I got on the McDonald books, I used to watch Michael. I went to Michael’s first public auction.”

Le, who made the semi-final of the REIV competition but not the finals – “I completely choked, it was just so nerve-racking” – agrees with Banitsiotis that doing public auctions is less difficult and much more relaxed.

While she has been inspired by talented mentors, she says they are pleased at her interest.

“They think it is great a woman

wanted someone different – describes it as very male-dominated. But she says auctioneering is crucial for anyone wanting to be “a fully rounded agent”.

“I would not be where I am today if I was not an auctioneer,” she says.

“The key to any success is practice and I did the hard yards in order to be successful in this arena.”

Roberts, who has two decades of experience in the business, counts herself lucky to have been mentored by Patrick Halpin, from whom she bought her business 10 years ago, building it from four to 18 staff.

“Auctioneering has increased my profile and complemented my negotiating skills, she says.

“This in turn has expanded my confidence in controlling the selling process in its entirety.”

Terrifying? “No. Challenging? Yes. Rewarding? Absolutely. I had three young children and I knew if I was going to get ahead in the game I needed to get that string to my bow. If you are selling a property and you are there doing the auction as well, it gives you the edge.”

These days, Roberts does at least five auctions a weekend, having begun about 15 years ago.

“It has been fantastic because that is where a lot of my listings come from,

‘I would not be where I am today if I was not an auctioneer’

– Ruth Roberts wants to do it because the perception of auctioneers is some old guy that has been in real estate forever,” she says.

“When I do the auction, people are surprised, they do not expect it.”

Le has vowed to keep learning: “You just get better and better in more auctions.”

And now she is training her PA to work the auctions to help her.

Ruth Roberts, principal of Woodards Carnegie/Glen Huntly, promotes herself as “one of Melbourne’s few leading female auctioneers” with “an appetite for the adrenalin an auction creates”.

Roberts, who did the first auction on The Block for Josh and Jenna – who

people coming to auctions,” she says.

“It has been enormously important in my career.”

Her approach is different from many men – but it is a double-edged sword.

“Buyers will see a variety of auctions over a weekend with men generally calling the auction, so to see a woman is not so common therefore they remember my auctions and I cannot afford to be off my game,” she says.

“Every auction is of extremely high priority. First and foremost I am a sales person and auctioneering is a skill that complements this vocation. The benefit to my client is that I hold their hand throughout the entire process not just on auction day,” she says.

The Estate Agent ❘ March–April 2015

15

Auctions

Under the hammer See the best in the business as REIV hosts the Australasian Real Estate Institute Auctioneering Championships

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EIV will host this year’s prestigious Australasian Real Estate Institute Auctioneering Championships. The event will be held on September 2-3 at Crown, during this year’s REIV annual conference, so all members attending the conference will have the chance to see these experts in action.

The Australasian competition’s chief judge, Neil Laws, a member of REIV’s auctions committee, said: “The timing and location offer a great opportunity for Victorian members to watch the best auctioneers in Australia and New Zealand compete”.

The Victorian leg of the senior auctioneers competition, REIV’s Senior Auctioneer of the Year competition, begins with heats on June 16. Five finalists will be chosen to compete on July 22 for the state title – one of REIV’s most prestigious and coveted awards.

Both the winner and runner-up will have the opportunity to compete against the best two from the other states and territories and New Zealand.

The title is held by New Zealand, which took out the championships in Auckland last year.

Melbourne last hosted the event in 2011. Laws said it offered the chance for members to get involved.

Winner: Harry Li took out last year’s REIV Senior Auctioneer of the Year title.

“We are looking for volunteers to help in a variety of roles,” Laws said.

That help is also needed for the rapidly growing Novice Auctioneers Competition, which attracts up to 40 entrants, all of whom must be REIV members but never have conducted a public auction. This year’s novice heats will be held on August 18, the semifinal on September 25 and the final on October 13.

“We are looking forward to strong

participation by local members, I hope that many people will take the opportunity to come and watch,” Laws said.

He said those interested in participating as a bidder would find it enjoyable and auctioneer members may pick up a few tips. But behind the scenes, the auctions are carefully scripted, with the scripts rehearsed and timed to ensure each competitor has the same opportunity.

“Bidders need to be experienced, we prefer them to be experienced auctioneers,” he said.

“The scripts are there to test the competitors, they may be asked a couple of questions, they may be challenged. The script is the same for each contestant … and it is all run according to the Australasian guidelines.”

Competition entrants, or anyone interested in volunteering, contact Michaela Versteegen on 9205 6633

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The Estate Agent ❘ March–April 2015

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The Estate Agent ❘ March–April 2015

17

Cover Story

More love living the high life An increasing demand for apartments is being driven by downsizers, local and overseas investors and first home buyers

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hree years ago, REIV vicepresident Geoff White and his wife Susan downsized from a four-bedroom suburban home to a twobedroom apartment at Yarra’s Edge, opposite Docklands. The downsizing was an adjustment.

“We had to simplify our life,” he says. But it has freed the couple from spending weekends maintaining home and garden. Now, White has so embraced apartment living he is Lucas Real Estate’s general manager of sales – and Yarra’s Edge branch manager – working from the building in which he lives.

Their story is not uncommon.

Downsizers and empty-nesters are key drivers of the Victorian

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The Estate Agent ❘ March–April 2015

apartment market, along with local investors, particularly self-managed superannuation funds, overseas investors and first home buyers seeking a housing market foothold.

New-build apartments offer a range of benefits often not found in shared accommodation, including gyms and pools.

These lifestyle factors, and the often competitive cost of apartments compared with many inner-city houses, are encouraging Victorians to embrace apartment living – with implications for property prices, capital growth, rental returns and the city skyline.

This is a market that has grown exponentially. In inner Melbourne alone – the CBD, Southbank, Docklands and part of North Melbourne –

apartment numbers have doubled from 22,000 to 44,000 since 2002, Knight Frank Victorian research director Richard Jenkins says.

From the early 2000s that was largely refurbished office buildings, but now demolition precedes new developments.

“The products are becoming more and more sophisticated,” Jenkins says.

“The rates (of return) per square metre is justifying demolition, whereas probably they did not 15-20 years ago.”

Jenkins says there are 11,600 apartments under construction in inner Melbourne with completion due by 2017. Last year, 6300 were completed – 133 per cent higher than the 10year average. “Looking ahead, there are potentially 46,000 mooted, not including those under construction.”

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That includes those at early feasibility or planning application, and not all will be built, he says.

Forty-eight per cent are in the CBD grid, 23 per cent in Southbank and 13 per cent at Docklands. St Kilda Road and south Carlton make up the rest.

For the real estate industry this raises the crucial question: can all these apartments be absorbed or will oversupply drive down prices and

rents? “We are at record levels in terms of apartment development but also record levels in terms of population growth,” Jenkins says.

For example, in the year to June 2013, the population of the CBD core grew by 5400. Most of the new arrivals are young – average age 28.

Thirty-nine per cent of all residential growth in inner Melbourne is overseas immigration led by China, Malaysia and India, Jenkins says.

‘There are potentially 46,000 mooted, not including those under construction … We are at record levels in terms of apartment development but also record levels in terms of population growth’ – Richard Jenkins

New builds: There are 11,600 apartments under construction in inner Melbourne with completion due by 2017.

“Melbourne’s growth rate of 10 per cent was the fastest-growing municipality across Australia. At the moment that growth is offsetting that development,” he says.

White agrees: “If everything that was out there was built at the same time we would be in trouble but the way it is going, with some of the staging and the way they get on to the market, it’s not bad. Providing there is some sensible release on to the markets of apartments, it will be absorbed.”

But Jenkins sounds a warning note: “As of December 2014, (rental) Continued page 20

The Estate Agent ❘ March–April 2015

19

Cover Story

Continued from page 19

vacancy was up at 4.4 per cent. I could say the jury is out in terms of whether we have got a glut … the test will no doubt come when we start seeing some resales.”

January data shows this inner-city rental vacancy rate falling by 0.2 per cent month on month to 4.2 per cent, while the Melbourne rate tightened to 3.1 per cent, as did the rate for suburbs within 10km of the CBD. Decreased vacancies pushed rents up – median inner suburbs unit rents increased sharply, from $400 to $415 a week, pushing the Melbourne median up 3.8 per cent.

Apartment price growth is also good news for owners and investors – the December median price, $511,500, was up 5.7 per cent over last year. The middle-ring suburbs fared best with a median of $556,500 and 7.2 per cent annual growth. In the inner ring it was $540,500, reflecting annual growth of 4 per cent.

Jenkins believes that while some Melbourne apartment developments are of variable levels of quality, competition will force changes – a view echoed by Arch Staver, sales director with Nelson Alexander, REIV’s 2014 large residential agency of the year.

Jenkins says offshore developers are needed to offset our shortage of housing supply, but developers will need to reduce density and create apartments appealing to domestic as well as overseas buyers.

Key factors include location, apartment views, size, finish quality and building amenities.

“There are a number of sites with approval of certain schemes that may not captivate the local market due to their size or scale,” he says.

‘A number of sites with approval of certain schemes … may not captivate the local market … If you don’t have good amenities or views in five years time there may be something of a loss of value’ – Richard Jenkins

These density concerns are borne out by a new report from Melbourne City Council, suggesting central Melbourne’s density is greater than some other major cities, including New York.

Jenkins says 40 per cent of the

APARTMENTS CREATE GREATER DIVERSITY While managing apartments is in some ways easier for property managers than managing houses – no gardens, no external maintenance, no land tax bills or building insurance – they come with added challenges, property manager Sam Nokes says.

He says managing apartments also has different rewards from managing houses.

“Letting the property tends to be easier once the first lettings are gone – then there can be 200 to 300 apartments on the market at the same time,” he says.

“They do let well and are designed well.”

Nokes, who chairs REIV’s Young Agents Chapter, says the range of apartments on the letting market is so large those on his books range from tiny studios with foldout beds to 2500 sq m penthouses.

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The Estate Agent ❘ March–April 2015

The tenants are just as varied.

“The perception of tenants has changed significantly over the last five years,” Nokes says. “The vast majority of our tenants now have more money (to spend).

“There has been a significant growth of tenants by choice – as opposed to tenants by necessity who can’t afford to buy or are unable to – over the last decade and especially the past five years.”

Nokes says this has created a wider variety of tenants in 2015. This includes those in their 50s and 60s, who own beach homes and rent a city pad, and younger tenants who choose to live close to the CBD or in prime innercity locations.

apartments under construction are developments by Asia-based companies, principally for buyers in Hong Kong, China and Singapore. They can outbid domestic developers because “they have a pipeline of buyers, investors ready to buy up their products globally, they don’t necessarily need to spend the same on marketing that domestic purchasers do”.

“Many of the developers don’t have the same hurdles as domestic ones – for example, many domestic developers cannot sell more than 25 per cent to offshore purchasers if their finance is domestic,” he says.

“If you don’t have good amenities or views in five years time, there may be something of a loss of value.”

White says with the change of state government it is unclear how many projects will proceed. “There are some projects around that I think we’ll raise eyebrows at.”

He says floorplans and rooms are becoming smaller.

“A 40-storey building, you might have had 160 apartments, now (you have) more than 200,” White says.

This is particularly so in the CBD, with some small two-bedrooms half the size they were 10 years ago.

They may be harder to sell, especially if built to a specific niche market place and that marketplace changes, White says.

Staver also has quality concerns – if there is an oversupply, quality will win out, he says. Agents face challenges selling the also-rans – some small apartments sold off the plan are already struggling to realise their purchase price. “There are more people quite willing, particularly in Fitzroy and Collingwood, to live in an apartment,” he says.

But many off-the-plan apartments coming on the market are less than 50 sq m and “the resale value of these has not been strong”, Staver says. That is compounded by banks’ reluctance to lend on them.

“Buyers are now more mindful of what they are buying,” he says.

In the inner north, where his agency has 13 offices, the trend is small density developments, architect-designed, larger apartments, particularly catering

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Burning question: Can the rising number of apartments be absorbed or will oversupply drive down prices and rents?

to owner-occupiers. “Downsizers, baby boomers are less inclined to go to a large development. They are selling their two-storey Fitzroy terraces and wanting to stay in the same location.”

This is the case in suburbs such as Brunswick and Essendon, Staver says.

“What we are seeing in our area is low-rise – three to four levels, buildings of about 18 apartments.

We just recently sold out the Whitlam (11 high-spec, $1 million-plus Fitzroy apartments) – that is a good example of what will continue to be very successful, a small boutique development near lifestyle attractions.

“A lot of people have been seduced by apartment living, but one critical factor, they must be near the lifestyle

drawcards – public transport, eating, established cultural attractions.

We are starting to see that across all the suburbs.”

White agrees: “Most owneroccupiers, whether they are 30 or 60, they tend to want the same thing.

Amenities around the precinct, public transport, cafes and restaurants.”

Staver is more downbeat than Jenkins on absorption.

“I suspect there are more apartments being built than will be able to be absorbed,” he says. “What is that going to do to the rent, these increases in tenantable properties? We may see the yield drop, the value drops – there are a whole lot of chain reactions that could impact in five years.”

‘Buyers are now more mindful of what they are buying …

Downsizers, baby boomers are less inclined to go to a large development. They are selling their two-storey Fitzroy terraces and wanting to stay in the same location’ – Arch Staver

Particularly concerning are planned large developments of hundreds of apartments, for example at Flemington and Moonee Valley racecourses.

“I think there will be too many out there in the market impacting on the rental return,” he says.

“I think it is time for us agents to be absolutely candid about the prospects of some of these apartment developments, both to the developers and the buyers who are inquiring.”

Apartment quality has been most problematic in the inner city.

In Boroondara, where the growth market has been high-spec, boutique apartments in blocks of 20 to 30, up to 70 per cent sell before construction, according to RT Edgar director Glen Coutinho.

“We have got a mix of investors and offshore buyers and retirees,” Coutinho says.

“There is a lot on the market.

But at the moment it is reasonably well-balanced, they are all selling.”

Continued on page 22

The Estate Agent ❘ March–April 2015

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Cover Story

Continued from page 21

‘A lot of people have been seduced by apartment living, but one critical factor, they must be near the lifestyle drawcards – public transport, eating, established cultural attractions. We are starting to see that across all the suburbs’ – Arch Staver While the cashed-up downsizers seek $1.5 million-plus penthouses with features such as hydronic heating, built-in televisions, extra-large balconies and storage in the garage, most of the apartments are in the $700,000-$800,000 range – ideal for first home buyers priced out of houses, he says.

Jenkins says Boroondara and Stonington are “hotspots for apartment development”, catering mostly to downsizers who want to stay there.

Many developments are near transport and retail strips such as Burke Rd, Glenferrie Rd and High St. He tips that retail strips in the doldrums – Bridge Rd and Chapel St, for instance – will be boosted by the influx of residents from apartment developments nearby.

“With an ageing population and affordability problems, I think the market for apartments is pretty strong for suburban locations,” he says.

In regional centres, there has also been increasing apartment construction.

Matt Bowles, director of sales at Dungey Ketterer in Bendigo, says the top end of the market is sought after there.

Apartments sell for $600,000$800,000 – the top end of Bendigo’s market – to owner-occupiers.

Investors were more focused on the $300,000 to $400,000 unit and townhouse market, offering higher returns. “Investors can buy a $300,000 unit and get $300 a week rent,” he says.

“There is no issue of demand outstripping supply. We are not having people turning up and building sixstorey apartment buildings with onebedroom apartments, we are not in that market at all.”

Rather, apartments are usually generous, walking distance from the town centre but with parking. The trend began with the conversion of

Sky view: Clockwise from left, inner-city apartment blocks; Nelson Alexander sales director Arch Staver has concerns about oversupply; Baden Lucas, Geoff White and Danielle Tadi from Lucas Real Estate Yarra’s Edge, pictured at 50 Lorimer St.

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The Estate Agent ❘ March–April 2015

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existing buildings, but purpose-built construction is underway. Selling off the plan is difficult.

“Usually people want to see construction underway,” Bowles says.

He says many of the buyers are empty-nesters with an apartment in Bendigo and one in Melbourne or at the beach.

He attributes the drawcard exhibitions at Bendigo Art Gallery with showing these buyers what the city had to offer. As well, commuters have become interested in apartments close to the railway station, such as those currently being constructed in Mitchell St.

‘I think the market for apartments is pretty strong for suburban locations’

– Richard Jenkins

CHALLENGES FOR OWNERS CORPORATIONS More apartment buildings mean more owners corporations and therefore more strata managers to run them, negotiating the minefield of legislative requirements and budgets which can top $1 million.

“Managing these owners corporations is more complex than it has ever been in the past and it is clearly a growth area for property management in Victoria,” says Neville Sanders, Real Estate Institute of Australia (REIA) president and former REIV president.

Despite this complexity, the standards required for entry to this role could be higher in Victoria, says Sanders, general manager of Whittles Australia, strata title services specialists.

“REIV has pushed for a higher bar and proper licensing, like real estate. In some states that exists but not in Victoria and that is frustrating. There is a shortage of experienced managers,” he says.

“More strata companies are popping up. Because of lax licensing laws you can be mowing lawns one day and a strata manager the next.”

He says Land Victoria officials said recently about half of all subdivisions

registered in Victoria had an owners corporation. “More and more Victorians are either working or living in real estate that is affected by an owners corporation,” he says.

An increasing number involve highrise buildings, and for strata managers of buildings higher than three storeys, compliance with essential services maintenance – lifts, fire sprinklers and fire panels –is a major task.

Sanders says the increasing popularity of apartments means more residents without experience of living in an owners corporation building. This is challenging for managers, particularly as many buyers don’t read their section 32 information, such as owners corporation rules and details of multiple owners corporations and therefore multiple fees.

Some of the buildings his company manages have eight owners corporations – four is common. Those whose car park is on a separate title receive double the number of bills.

“The reality is owners are often not paying attention to it, they are caught up in the euphoria of buying the apartment,”

he says. “We do find there is an element of surprise when the first round of invoices is sent out.”

Sanders says strata managers face complaints from new residents now living in close quarters with others.

“I have seen a lot of people who have moved in from a detached house and a fair sized parcel of land,” he says.

“They love the inner-city lifestyle but they are not accustomed to the shared environment there, people above and below you, and you do have noise from time to time and share common areas.”

One increasingly common issue is wafting smoke from adjoining balconies.

“Not everyone is suited to apartment living, but it is quite correct to say more and more people are becoming accepting of it,” Sanders says. “There is a lot of merit in apartment living. But there are compromises – you are sharing your environment with other people.”

REIV runs three levels of owners corporation management training courses. For further information contact the REIV on (03) 9205 6666.

The Estate Agent ❘ March–April 2015

23

Property Management

Tragedy’s legacy: be on your guard The tragic death of a three-year-old girl has underscored the need for property managers to be ever vigilant on pool safety

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Melbourne property manager who experienced the tragedy of a child drowning in the swimming pool of the property she managed, has highlighted to EA the important lessons for all property managers.

Laura Teal, of Brad Teal Real Estate, was managing the rented Essendon property where a three-year-old was found floating in the pool by her mother in September 2008. She died later that

day at the Royal Children’s Hospital. The issue of pool fence safety standards was under scrutiny because of the tragedy and inquest. It remains the subject of media attention, with changes to the Residential Tenancy Act in Western Australia, which come into effect this month, requiring tenants be given an information sheet outlining their key rights and obligations – these forms include safety information on dangers

Peter Lowenstern is REIV’s corporate solicitor 24

The Estate Agent ❘ March–April 2015

such as blind and curtain cords and swimming pools.

REIV chief executive officer Enzo Raimondo says this was an important reminder for property managers in all states to be aware of the need for vigilance on pools and home safety.

With more than 139,000 backyard pools in Victoria, there is content relating to pool fences in the REIV licensing course, with an assessment on the issue.

Teal told EA she supports a stronger Victorian compliance regime and more vigorous building code to ensure all pool and spa safety fences meet higher standards. She also supports thorough training for property managers, especially younger and less-experienced ones, on the issue.

While the coroner could not determine exactly how three-year-old Lauren Harris got into the pool area, one possibility was climbing over a bluestone barbecue built into the fence.

Property Management

Be vigilant: Even the most tranquil pool setting can present danger if the greatest care is not embraced and enforced.

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“Over time trees will grow, fences move, play equipment is erected and plant pots get shifted,” Teal says.

“All of these things can provide easy access to climbing over a pool fence and people need to be aware so they can make changes and improve the safety around their property.”

Brad Teal Real Estate has introduced a system whereby every property under its management with a pool or spa must have a current certificate of compliance or written notice that the pool/spa is compliant, and it surrenders management where this is not supplied – an innovation commented on by Deputy State Coroner Iain West in his finding.

He said the pool fence safety barrier at the Essendon home failed to comply with Australian standards and regulations in many ways and the mandatory final inspection had never taken place after it was built. For Teal, the inquest meant her paperwork, processes and recollection of events and conversations was subject to intense scrutiny.

“Laura has been working in the family business for 18 years and she has been an agent for 14 of those years,” her father, agency director Brad Teal, told EA. “Laura is very experienced with a thorough and diligent approach and the rigorous paperwork she maintained as a property manager in the lead-up to this case stood up beyond reproach in the Coroner’s Court.”

This traumatic experience continued for six years from Lauren’s death until the coroner delivered his findings last October, vindicating Teal and finding “she would not be expected to have an understanding of the industry requirements for Australian Standards in respect to swimming pools and/or swimming pool fences”.

He also found Brad Teal Real Estate was entitled to rely on the Section 32, prepared for an auction at which the property was passed in before being

‘Through the heartbreaking loss of a young life, the mental anguish of the child’s family and on us as agents, and the strains on us as a company, a lot can be learned – Laura Teal from this case’ rented. It said there were no outstanding orders against the property, although an order had been issued in 2004 after an inspection found the safety barrier noncompliant – an order the owner denied receiving and of which City of Moonee Valley Council had no record.

That owner was former AFL footballer Mark Harvey, who had lived in the home with his family until moving to Perth to take up a coaching role.

His celebrity, combined with the tragedy of Lauren’s death, meant the fence surrounding it, the inquest – which began in November 2011 – and Laura Teal’s management attracted prominent media attention.

“When a tragedy such as this occurs, as an agent, you can become the target of blame,” Brad Teal says.

“This was a highly emotional situation for all involved and for Laura.

“She felt the brunt of so much scrutiny and speculation. As a company, we absorbed the stresses that this intensive investigation placed on our business. But you can never forget it, and you come out of it with a number of lessons that can be shared with the industry and the wider community.”

The Teals believe community awareness and education is key to helping people understand their responsibilities for maintaining secure fencing and the safety of young children around household pools and spas – the public, councils and relevant authorities all have a role to play.

This was also a key issue identified by the coroner. Had Lauren been properly supervised while playing, the tragedy would not have occurred, the coroner said.

Laura Teal says: “The sad reality of this tragedy is the enormous magnitude and impact it has had on everyone involved.

“Through the heartbreaking loss of a young life, the mental anguish of the child’s family and on us as agents, and the strains on us as a company, a lot can be learned from this case.

“Hopefully it will highlight the need for stronger legislative and building codes to ensure we don’t see drowning accidents like this in the future.”

The Estate Agent ❘ March–April 2015

25

Best Practice

Pool checklist guide to keep agents out of hot water If taking on a property with a pool, agents need to ensure it meets safety regulations. By REIV Corporate Solicitor Peter Lowenstern

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The Estate Agent ❘ March–April 2015

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he outcome of the Lauren Harris inquest is a wake-up call for REIV residential property managers.

If you manage a residence with a swimming pool, what has the inquest emphasised?

First, if asked to manage a property with a pool, before accepting a formal engagement, inspect the pool and, importantly, the state of its surrounds. Is there safety fencing and gates and, if there is, what is the condition?

Second, if fencing and gates are nonexistent or in poor condition – or you think what is there may not comply with building regulations – you need to carefully think about whether you should undertake the management of the property at all.

Third, assuming the pool and its surrounds comply with building regulations, you need to think about how you will manage them.

This is where the REIV Exclusive Leasing and Managing Authority for

residential property is useful to record the property services you have agreed to perform.

It has a detailed level of service.

In the part dealing with property management services, you and your landlord can choose the level of service to apply to your management of the pool.

‘Importantly, the Authority recognises you do not necessarily have the knowledge or expertise to inspect pool safety barriers with an eye to compliance’ At one extreme, you may agree you will not manage the pool at all. At the other, you may agree to undertake inspections every six months.

Importantly, the Authority recognises you do not necessarily have the

knowledge or expertise to inspect pool safety barriers with an eye to compliance with building regulations.

With this in mind, your landlord can instruct you to manage the safety barriers via an appropriate contractor.

For example, you may agree the contractor is to inspect the pool safety barriers every 12 months.

Allied to this, your landlord provides you with a limited power of attorney to engage the contractor on his or her behalf coupled with their authorisation for you to pass on their details so the contractor can, for instance, forward their accounts direct.

If you have your own level of service document dealing with pools and other aspects of property management and you want to use it, you can incorporate it in the Authority by simply indicating it is to apply and attaching it.

If you do this, the services set out in the Authority will not apply.

Best Practice

Agents must have proof of trust Industry warned to comply with legal obligations for trust accounts and audits

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onsumer Affairs Victoria has warned real estate agents it is conducting regular monitoring inspections to ensure compliance with trust account obligations.

In the lead-up to its autumn inspections it has issued a reminder to agents to comply with their legal obligations regarding trust accountkeeping and auditing practices.

As a result of its inspection program it has identified a number of agents who have failed to maintain their trust accounts in accordance with the requirements of the legislation.

It also found agents who have failed to lodge their trust account audits on time – auditing by an approved auditor

for the financial year July 1 to June 30 is required annually within three months of June 30. The auditor’s report must be lodged within 10 days of receiving it from the auditor.

Accounts must be kept in a way that allows a proper, convenient audit, and the auditor’s report has to be kept for seven years and produced on demand.

CAV has also identified agents who have improperly withdrawn funds held in trust until a property has settled.

It told EA one agent had received infringement penalty notices of more than $3500 for offences including early withdrawal of commissions.

“Under the provisions of the Sale of Land Act 1962, agents must not

withdraw funds from a trust account until a property has settled without a written agreement from the vendor,” CAV said, adding it “considers such action to indicate that a business may be under financial pressure and that further serious breaches may follow.”

It said forthcoming inspections would be statewide and compliance and/or enforcement would be taken against those found to be in breach of the law. This can include compliance notices, infringements, disciplinary procedures and prosecution in court.

REIV chief executive officer Enzo Raimondo urged agents to ensure they were compliant.

“Maintaining a trust account in accordance with the law is an essential part of a real estate agent’s duties. These accounts offer important protections to buyers and enable buyers to have full confidence in the integrity of licensed agents. Agents have a responsibility to both vendors and buyers to ensure compliance,” he says.

For more information about trust account and other obligations see consumer.vic.gov.au

The Estate Agent ❘ March–April 2015

27

Member Services

Expert advice is just a phone call away REIV’s information officers have been on the front line so they know how to answer your questions

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hen David Dundas began work as an REIV information officer three-and-a-half years ago, he expected to spend his days dealing with hostile, angry members of the public. So it was a pleasant surprise to discover most callers make sensible inquiries, not complaints.

Dundas, a licensed agent who started in real estate sales in 1997 and had his own business for 10 years, is one of the voices on the phone when REIV members and the public call the REIV. In an adjoining office sits the other information officer, Jim Lourandos. Fourteen years in the role, he is a licensed agent and former business broker.

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The Estate Agent ❘ March–April 2015

Both information officers have busy days. It is not unusual for each to field 40 or more calls a day about purchases and sales of real estate and businesses, commercial and residential lettings and agents’ authorities.

Ask what tops their lists of calls and they are unanimous: residential tenancies. Dundas says that’s not surprising.

“In real estate, the most transactions relate to residential tenancies,” he says.

“In a very large percentage of properties people stay in them for a

Good advice: David Dundas, Bronwyn Brilliant and Jim Lourandos are here to help.

shorter time than when purchasing.

“People have ongoing dealings with the agent; landlords have ongoing obligations and tenants have ongoing obligations.

“People talk about complaints, but often it is something they need clarification on. You can explain things to them, offer some suggestions. Most can be sorted out in one phone call.”

‘People talk about complaints, but often it is something they need clarification on’ – David Dundas

Member Services

Dundas says members often have trust account queries, while Lourandos says issuing statutory notices under the Residential Tenancies Act and its interpretation are regular property manager calls. Often they just want to confirm what they know, when a landlord wants them to do something the law does not allow, he says.

There are, of course, quirky calls which liven up the day; Lourandos recalls an elderly woman complaining of “passionate noises” from upstairs.

In addition to his role as an information officer, Lourandos handles complaints about REIV members made by the public and is the secretary of the REIV’s business brokers and rural chapter committees.

“Most complaints are resolved with the co-operation of the member.

Very often all the person wants is an apology,” Lourandos says. “On very rare occasions we have to forward a complaint to a higher authority such as Consumer Affairs Victoria, the party’s lawyer or the police.”

Lourandos says most complaints result from an agent’s lack of feedback

FINDING MIDDLE GROUND Bronwyn Brilliant, the REIV’s rental determinations co-ordinator, handles three other services offered by the REIV – valuer and agent appointments and rental determinations.

When parties cannot agree in a family breakdown or deceased estate dispute, court orders can lead to the REIV appointing a valuer to determine a property’s worth or appointing an REIV member to conduct a sale.

Brilliant, 10 years with REIV and previously a legal PA and paralegal, says most of the requests for appointments come from lawyers or agents, but occasionally members of the public

and poor communication with buyers and vendors. A lack of response to a verbal offer or expression of interest is a common cause of complaint if the agent does not get back to that buyer after receiving a higher offer.

call. She often needs to explain the need to follow processes to obtain an appointment or have a valuation carried out.

“With Family Court matters emotions run high, people feel hard done by,” Brilliant says.

So far she has opened eight Family Court or deceased estate files in the first two months of this year. Last year applications for valuer or agent appointments ran to about one a week.

The REIV also offers fee-for-service commercial rental determinations.

Twenty-one determinations were made last year.

“If they’d just pick up the phone and get back to them in a timely manner a lot of this would be avoided,” he says.

REIV member information service, 9.30am–4pm, 9205 6666

Real Estate Recruitment

Buxton Pratt Consulting sources the best and most experienced Real Estate professionals in the industry.

Our database consists of highly experienced and qualified: • Property Managers – Residential and Commercial • Head of Departments • Leasing and Business Development Managers • Trust Accountants • Sales and Rental Administrators • Receptionists We only work with candidates who have outstanding references and a solid work history. Our clients deserve the best.

Buxton Pratt Consulting Pty Ltd Rear, Level 1, 540 Malvern Road, PRAHRAN VIC 3181 T - 9533 8164 / F - 9576 2706 www.buxtonpratt.com.au

Sarah Monaghan 0417 143 600

Emma Buxton 0438 448 806

Amanda Buxton 0403 901 013

Caitlin Mios 0499 161 614

Nikki Hartmann 0419 338 314

The Estate Agent ❘ March–April 2015

29

Market Update

House prices rebound as buyers broaden search Richmond, Northcote, Strathmore and Flinders join million-dollar club for the first time

M

elbourne’s residential market finished 2014 on a high with the city hosting its two largest auction weekends ever and the auction boom driving a house price rebound.

The December quarter median of $673,500 was up 6 per cent on the more subdued September quarter. Over the year, Melbourne prices were up 11.7 per cent, compared with 2013, with increases in inner, middle and outer suburbs. Inner Melbourne was up 11.7 per cent with middle Melbourne up by 13.2 per cent and outer Melbourne at 8.9 per cent.

Five suburbs recorded growth of more than 15 per cent and prices in 18 suburbs were up more than 10 per cent. Kew, with a median of $2.04 million, was the city’s top growth suburb, up 18.2 per cent on September. It was followed by Carlton North at 17.4 per cent, Dromana, reaping the benefits of Peninsula Link at 16.5 per cent and Northcote at 16.4 per cent.

Four more suburbs joined the million dollar club for the first time – Richmond, Northcote, Strathmore and Flinders. All had medians of more than $1 million in the December quarter, and East Melbourne, Carlton North, Clifton Hill and Aberfeldie returned to the list of 59 Melbourne suburbs with million dollar-plus medians – a total of eight additions to the December quarter list.

The increases in some of these suburbs new to the million-dollar club further illustrated a trend in the Melbourne market – they benefited from “the ripple effect”, with buyers priced out of neighbouring suburbs

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The Estate Agent ❘ March–April 2015

seeking homes further out, pushing prices up there. So, for example, as Fitzroy North prices increased buyers sought Northcote. Then, as its prices increased, buyers moved out to Thornbury, then to Preston.

Meanwhile, the quarterly bedroom medians data found large homes and units had bigger percentage price increases than those with one or two bedrooms – reflecting homebuyers’ desire for space for their families.

Citywide, the median for a threebedroom house was up 12.7 per cent to $575,000, and 12.5 per cent to $720,000 for a four-bedroom house.

This compared with 8.7 per cent over the year for a two-bedroom house.

Melbourne’s unit and apartment median was up 1.8 per cent to $512,000, but, as with houses, three-bedroom units showed better growth than smaller ones – 9.7 per cent in 2014 compared with 1.8 per cent for a one-bedroom unit.

This trend was reflected across the

Affordability issues mean first home and tight-budget buyers are opting for smaller, more affordable properties in outer suburbs to get a foothold on the property ladder

Market Update

It is likely the buoyant finish to the 2014 house sales year will give a fillip to the coming autumn season, particularly given the February interest rate cut and predictions of more to come inner and middle suburbs, but outer suburbs bucked the trend. The year’s biggest increase was outer suburban one-bedroom unit median – up 18.7 per cent.

Also, the price of a two-bedroom house in the outer suburbs was up 9.7 per cent to $395,000, compared with 6.7 per cent for a three-bedroom and 8 per cent for a four-bedroom.

As developers include more apartments and townhouses in new outer suburban estates, they offer greater choice to investors, including self-managed superannuation funds.

Also, affordability issues mean first home and tight-budget buyers are opting for smaller, more affordable properties in outer suburbs to get a foothold on the property ladder.

The most sought-after areas in 2014 included Glen Waverley, Ringwood, Malvern East, Footscray, and Balwyn North – all with increases of more than 20 per cent for threebedroom homes.

Mount Martha and Blackburn experienced growth of more than 20 per cent for four-bedroom homes.

REIV believes it is likely the buoyant finish to the 2014 house sales year will give a fillip to the coming

autumn season, particularly given the February interest rate cut and predictions of more to come. But CEO Enzo Raimondo says economic factors

such as unemployment, business and consumer confidence will play a role in determining whether prices remain buoyant or moderate.

Regional market attracts new buyers With many homebuyers looking to regional Victoria for more affordable properties, the regional market rebounded in the December quarter. The median house price was $344,000, up 5.5 per cent on September.

This shows that market’s increasing strength – a year ago its median house price of $320,500 was a new record. In 2012, it was just $302,000.

Despite a quieter September quarter, during which the regional market fell by 0.3 per cent, the regional median price was up 5.8 per cent in 2014.

Agents report more interstate and overseas investor interest in regional centres. The year-on-year increase for units and apartments was 3.3 per cent, with this market up a healthy 4 per cent over the December quarter to a median unit price of $257,000.

Of course, there are substantial variations across the state as local

factors such as seasonal demand, employment levels and transport links impact on prices. For example, in the Alpine region, 2014 prices rose by 11 per cent, while in Greater Ballarat, the increase was 4.1 per cent, in Greater Bendigo 4.5 per cent and in Greater Geelong there was a slight fall – 0.5 per cent.

In East Gippsland the increase was 4.9 per cent over the 12 months, in Greater Shepparton it was 3 per cent and in the City of La Trobe there was a 2.1 per cent fall. In Benalla the increase was 25 per cent and in Colac-Otway it was 25.1 per cent.

But in many of the towns and suburbs within these municipalities there were fewer than 50 sales over the year, so while the median is still an important indicator, it is based on less data than in Melbourne suburbs with significantly more sales.

The Estate Agent ❘ March–April 2015

31

Health

Prostate cancer: more options today, so why take a risk?

Unlocking secrets of prostate cancer, medical science is offering men a lifeline. By Associate Professor Nathan Lawrentschuk

A

bout one in six Australian men will be affected by prostate cancer. In fact, just as with real estate, where we are world leaders in prices, Australia (along with New Zealand) has the world’s highest incidence of prostate cancer. And while it is predominantly a disease among men over 65, it can happen in men in their 40s and can be very aggressive.

Its causes remain unclear but are a combination of genetics, diet, sedentary lifestyle and environment.

Men with at least one first-degree relative affected essentially double their risk of prostate cancer. With more such relatives affected, so the risk increases.

Prostate cancer has become one of the most controversial areas in medicine, primarily due to the uncertainty of whether we should be screening for it.

Larger studies with long follow-up, combined with improved imaging, mean we now watch most men with low-grade cancer – known as active surveillance. The more serious cancers will still need surgery or radiation, or both. The side effects (erectile dysfunction and incontinence, for example) are still present, but reduced by more precise treatments.

Also, the development of new drugs and improved chemotherapy mean survival from advanced disease has increased dramatically. In the past 20 years, survival of metastatic disease has effectively doubled, while localised disease cure rates have jumped.

So why aren’t we screening men, as with breast cancer or cervical cancer?

The data on closely observing many cancers is very new and the trials showing a benefit of screening are still maturing. So many people, including “experts”, believe more harm than

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The Estate Agent ❘ March–April 2015

good can result if men who were going to die of something else are treated.

However, this does not take into account active surveillance where side effects are minimal for men with lowrisk disease.

did not mean cancer but may have led to a biopsy. About half the time there was cancer present. In the other half very small cancer may have been missed or there was inflammation or benign disease. The arrival of PSA

‘Prostate cancer has become one of the most controversial areas in medicine ... due to the uncertainty of whether we should be screening for it’ Offering no screening means many men who could have had their cancers detected and treated will suffer from metastatic disease and/or die from prostate cancer. So a balance must be found until longer-term data on screening establishes its benefits beyond doubt.

Prostate cancer typically spreads to bones, lymph nodes and even liver and lungs. Before the 1990s, by the time the men sought medical help, it had usually spread beyond the prostate.

When that happens, men almost always die of it – though it could mean five to 10 years of living with symptoms such as intractable bone pain and urinary problems.

Researchers found the protein prostate-specific antigen (PSA) in the bloodstream of men. Raised levels often, but not always, indicated prostatic disease, much of it due to cancer. Urologists could now find cancer before it had spread.

However, because PSA naturally occurs in everyone, how much should be in anyone’s blood? Also, as a prostate enlarges, as it does with age, so the blood PSA level increases.

Large studies were conducted to find “normal” PSA levels in the blood of men of different ages. Higher levels

enabled screening for prostate cancer – allowing the disease to be detected early, intervening and lengthening the patient’s life. But until about five years ago, those with low-grade prostate cancer, which probably would not kill them, and those with high-grade cancer were treated the same.

Treatment may be done surgically (radical prostatectomy), increasingly these days with a robot-assisted keyhole platform. Radiation may be applied with seeds placed (brachytherapy) or from the outside (external beam radiation).

In advanced disease hormone therapy may be used to starve the cancer of testosterone. Such therapies may also be used in lesser disease to increase the impact of radiation.

The Prostate Cancer Foundation of Australia (PCFA) has been involved in developing new suggested treatment guidelines. These include: • Screening all men with a family history of prostate cancer 10 years before their relative had it diagnosed. For example, if your father had prostate cancer at 55 you would start screening at 45.

• Starting screening at 40 for men to get a baseline PSA (much like cholesterol) and testing less often,

Health

REIV’s late lunch REIV’s Charitable Foundation is hosting The Late Lunch for Prostate Cancer on June 24, 2015.

Held at the iconic MCG’s Members’ Dining Room, the lunch will run from 1pm to 5pm and includes pre-lunch drinks and canapés in the Percy Beames Bar. The event is in support of the Prostate Cancer Foundation of Australia (PCFA) and will be hosted by John Deeks. Guests will be treated to entertainment by Greg Champion and keynote speakers Sam Kekovich and David Parkin.

For tickets or more information, please contact Jessica Davis on 9205 6601.

‘Treatments from surgery to chemotherapy are increasingly refined ... real estate agents are excellent at due diligence, predictions and knowing the market. But are you the same when considering the options for your own (or your partner’s) health?’ for example three to five years, based on the baseline level.

• Having patients understand screening and discuss it with their family doctor, loved ones, friends, etc, so they can make an informed choice.

• Recognising having a prostate cancer mostly just means having surveillance, as with people with bowel polyps – regular inspections, biopsies and tests – converting to radical treatments only when and if needed.

• Testing after 50 – a blood test with a rectal exam optional yearly (although this would be a good idea at baseline).

PCFA disseminates information

about prostate cancer to encourage awareness and to educate men, their families and friends about it and their options. This is done person-to-person, with publications, social media and fundraising events such as the Biggest Ever Blokes Lunch. This fundraising helped establish prostate cancer support nurses to assist men having treatment.

It also co-ordinates Australiawide support groups for men and their partners and friends providing advanced information, plus emotional support to men with the disease.

PCFA funds and helps research into the cause, treatments and, ultimately, cure of prostate cancer. It partners with organisations such as Movember, but

relies heavily on its volunteer members and public and corporate donations.

Prostate cancer is common but, in most instances, curable. A diagnosis does not mean radical treatment but often surveillance, with treatment reserved for those who need it. Treatments from surgery to chemotherapy are increasingly refined and offer the chance to cure the cancer or, if this is not possible, control it for many years. Real estate agents are excellent at due diligence, predictions and knowing the market.

But are you the same when considering the options for your own (or your partner’s) health?

Associate Professor Nathan Lawrentschuk MB BS FRACS PhD is a urologist and urologic oncologist with the University of Melbourne, Peter MacCallum Cancer Centre, Austin Hospital and Epworth Freemasons Hospital. He is also a member of the Prostate Cancer Foundation of Australia Victorian board.

The Estate Agent ❘ March–April 2015

33

REIA News

First home buyers priority in rate cuts National policy achievements and objectives outlined for 2015. By REIA President Neville Sanders

I

t has been a busy and great start to the 2015 year for the real estate sector and an equally productive one for the sector’s peak body – the Real Estate Institute of Australia.

I was very privileged and humbled to be elected as the president of REIA in December and my appointment came at a significant time politically with the Federal Government set to release its much-anticipated taxation discussion paper.

REIA strongly advocated in 2014 and early 2015 for the Reserve Bank of Australia to reduce interest rates to help stimulate activity in the residential market. While the media, particularly on the eastern seaboard, has been dominated with headlines about record house prices in Sydney and Melbourne, Australia’s real estate market has been somewhat patchy.

With the mining boom consolidating from exploration into a production phase, residential house prices in Perth, regional Western Australia, Darwin and some parts of Queensland have all softened. High

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The Estate Agent ❘ March–April 2015

unemployment figures in parts of South Australia and Tasmania have also contributed to cooling markets.

In fact, Sydney and Melbourne are far more the exception rather than the rule. So it was very pleasing when, in January, the RBA gave the start of the year a boost by lowering the official interest rate by 25 basis points.

‘It is very pleasing to see the banks passing this rate cut on to consumers’ This will mean a lot for home owners nationally and it is very pleasing to see the banks passing this rate cut on to consumers. REIA will continue to advocate for lower interest rates for home owners, if it believes the economic conditions are right as, in addition to helping ease any current mortgage stress, lower rates help stimulate investor activity and provide an additional incentive for first home buyers to enter the market.

In REIA’s Pre Budget Submission,

released in February and which received much positive media coverage nationally, we focused on two main policy areas of concern: the retention of negative gearing and the implementation of mechanisms to improve housing affordability.

REIA is committed to ensuring Australia’s strong home ownership levels continue and we believe the Federal Government needs to assume a leadership role on the issue of first home buyers. On our regular visits to Parliament, we have strongly advocated for a uniform approach to assistance for first home buyers, including stamp duty concessions and grants for both new and existing homes. We also believe the government should consider allowing first home buyers to access their superannuation to help them with their home deposits. Successful schemes already apply in New Zealand, Canada and Singapore.

Late last month, the Prime Minister gave an address to the National Press Club when he mentioned the government’s intention to implement recommendations from the House of Representative’s Inquiry into Foreign Investment in Residential Real Estate.

During the inquiry’s public hearings and the committee deliberations, REIA echoed the sector’s repeated calls for greater enforcement of current regulations.

We worked very closely with the committee chair, Parliament Secretary Kelly O’Dwyer, in advocating for the retention of the current regulations, which we believe helps encourage foreign investment, which in turn helps stimulate new housing supply.

It was therefore very pleasing to see the recommendations included more resources for the Foreign Investment Review Board to pursue breaches, such as investors not selling houses within three months after they return to their countries of origin, given that the last prosecution was in 2006. We believe this inquiry produced a series of common sense recommendations.

Our focus is now to ensure the government formally commits to these recommendations.

Member News

Maskell keeps it in the family

T

hroughout his long real estate career Barry Maskell has looked up to those awarded the Certificate of Associate of the Real Estate Institute of Australia. So when it was suggested he nominate for the honour, he felt it would be an achievement to be proud of.

“That’s something I have always aspired to,” he says of the AREIA award he received in mid-February. “You have to be in the REIV for a number of years, of high standing and ethical.”

Maskell, a Bendigo-based valuer, is both a licensed real estate agent and a certified practising valuer. Originally from Tatura, where his grandfather Charlie Maskell established a stock and station agency in 1914, he is a thirdgeneration real estate agent.

That business was sold during World War II, but his father Percy Maskell began working as a stock agent in 1963 and was later joined by his brother Clarence, the pair forming Maskell Brothers. Although he studied applied science at technical school, Maskell began working in his father’s business in 1979 and in 1982 obtained his subagent’s license.

He and his brother Ron then began studying for the real estate agent license at night school, driving to RMIT after work and graduating in 1986.

But it was in 1988 that he decided to fulfil a lifelong dream – studying to become a valuer. For many years he had kept safe a small brochure about careers in valuing which had been given to him by a careers counsellor.

By 1994, when he completed his Bachelor of Business (Property), work for valuers was in short supply so he opened his own real estate business in Tatura, building it up to 10 staff.

“We were early adopters of the internet and digital marketing systems,” he says.

In 2003, he accepted an offer for his business, taking the opportunity to work full-time as a valuer. He did so in Bendigo, then for two years with CBRE

Proud tradition: Third-generation real estate agent Barry Maskell and his wife Megan with his Certificate of Associate of the Real Estate Institute of Australia.

in Brisbane, returning to Bendigo where he now works as a commercial and residential property valuer.

He mentions his experience working as a commercial valuer for CBRE in the Brisbane CBD as invaluable and a career highlight, including valuing a substantial state of the art abattoir and part of the Wesley Hospital at Auchenflower, Brisbane. “It was high pressure but at the same time very rewarding,” he says.

REIV chief executive officer Enzo Raimondo said Maskell was a deserving recipient of the Certificate of Associate.

A conscientious REIV member, he had fulfilled the requirement to attend an average of at least 32 hours a year professional development activities in the two years before his application, attending virtually all the valuation

seminars conducted by the REIV. He had also been an active member of the Australian Property Institute and became a member of the Royal Institute of Chartered Surveyors in 2013.

“Barry is passionate about ethics and the importance of behaving honourably and is extremely familiar with the REIV rules and codes,” Raimondo said.

Maskell describes his achievement as “wanting to be more of a part of the REIV. I am hoping that I will be able to keep applying its ethics and sharing knowledge with others.”

In particular, the code of ethics is about “providing good service to clients and doing unto others what you would expect them to do to you”, he says.

The Estate Agent ❘ March–April 2015

35

Events Calendar

Networking opportunity: REIV runs a range of events relevant to real estate professionals.

reiv events to look forward to april

JUNE

10th

Business Brokers Chapter Lunch

4th

Property Management Lunch

11th

Auction Field Day

16th

Senior Auctioneering Competition – Heats Bendigo Division Training Session

21st

Property Management Knowledge Network – Ballarat

19th

Commercial & Industrial Chapter Breakfast Seminar

23rd

Buyer’s Agents Chapter Breakfast Seminar

may 6th

Owners Corporation Chapter Seminar

JULY

15th

Young Agents Chapter Breakfast

2nd

Valuation Chapter Seminar

19th

Bendigo Division Meeting and Training Session

7th

Southern Division Lunch

21st

Commercial & Industrial Principals Forum

17th

Commercial & Industrial Economic Forecast Lunch

26th

Property Management Knowledge Network – Geelong

22nd

Senior Auctioneering Competition – Final

reiv.com.au –

your first source for REIV events in 2015

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The Estate Agent ❘ March–April 2015

Training Calendar

Courses to sharpen those skills The REIV runs a wide range of courses aimed at those involved in the commercial and residential sector of the property market.

These courses specialise in sales, property management, owner corporation, business broking, auctions and more.

We have scheduled the following CPD-approved courses, designed to help all members maintain their skills and knowledge base.

JUNE Residential Property Sales 1st

1.30pm – 5pm

Residential Property Sales Refresher

22nd – 25th

9am – 5pm

Job Ready – Residential Property Sales

24th

9am – 5pm

Advanced Auctioneering (Please note: This class is for Senior Auctioneer Competition Competitors only)

april

Residential Property Management

Residential Property Sales 1st

1.30pm – 5pm

Residential Property Sales Refresher

1st

9am – 12.30pm Residential Property Management Refresher

9th

9am – 5pm

Advanced Auctioneering

12th

9am – 5pm

Advanced Residential Property Management

19th

9am – 5pm

Preparing for and Presenting at VCAT

Business Broking 20th – 22nd

9am – 5pm

Job Ready – Business Broking

Commercial Property Management

Owners Corporation Management 12th

9am – 5pm

Advanced Owners Corporation Management

1st

9am – 5pm

Commercial Property Management Fundamentals (Geelong)

Commercial Property Management

16th

9am – 5pm

Commercial Property – Listing for Lease

5th

9am – 5pm

Commercial Property Management – Lease Admin (Geelong)

17th

9am – 5pm

Leasing Commercial Property

11th

9am – 5pm

Commercial Property – List for Lease

23rd

9am – 5pm

Commercial Property Management – Listing for Lease (Geelong)

18th

9am – 5pm

Leasing Commercial Property

24th

9am – 5pm

Leasing Commercial Property (Geelong)

Residential Property Management

JULY

1st

9am – 12.30pm Property Management Refresher

Residential Property Management

10th

9am – 5pm

Preparing for and Presenting at VCAT

13th

9am – 5pm

10th

9am – 5pm

Intermediate Residential Property Management

27th

9am – 5pm

14th

9am – 5pm

Advanced Residential Property Management

Owner’s Corporation Management

Leadership & Best Practice

24th

27th

Business Broking

9am – 12.30pm Safety Risks in Estate Agency Practice

6th – 8th

9am – 5pm

9am – 5pm

may

Commercial Property Sales

Residential Property Sales

17th

20th

9am – 5pm

Introduction to Auctioneering

9am – 5pm

20th

9am – 5pm

4th – 7th

9am – 5pm

Job Ready – Residential Property Management

31st

9am – 5pm

15th

9am – 5pm

Intermediate Residential Property Management

Leadership & Best Practice

22nd

9am – 5pm

Commercial Property Management Fundamentals

29th

9am – 5pm

Commercial Property Management Fundamentals – Lease Administration

Owners Corporation Management 1st

9am – 5pm

Introduction to Owners Corporation Management

14th

9am – 5pm

Intermediate Owners Corporation Management

Introduction to Owners Corporation Management

Job Ready – Business Broking

Commercial Property Sales Fundamentals

Commercial Property Management

Residential Property Management

Commercial Property Management

Intermediate Residential Property Management Advanced Residential Property Management

20th

Commercial Property Management Fundamentals Commercial Property Management Fundamentals – Lease Administration

9am – 12.30pm Safety Risks in Estate Agency Practice

For more information, email cpd@reiv.com.au or visit www.reiv.com.au/training PLEASE NOTE: The listed courses, dates and times in this schedule are subject to change or cancellation at the discretion of the REIV.

The Estate Agent ❘ March–April 2015

37

Lifestyle

You won’t get a look-in if you don’t look the part Yes, looks can kill … especially that sale prospect if the agent doesn’t look smart and trustworthy on first impression

iStock

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The Estate Agent ❘ March–April 2015

Lifestyle

W

hen Mark Twain wrote that clothes make the man, he didn’t have the benefit of scientific studies about first impressions which give new insights into human behaviour. But the American writer and humourist, who added, “naked people have little or no influence on society”, was on to something.

There is a wealth of evidence that says what we wear is crucial to the snap judgments people make about us.

So, for real estate agents, wanting to inspire trust and confidence, and exude professionalism and reliability in those crucial first seconds, clothing choice is vital.

So, too, for website photographs.

Househunters increasingly start searching there and can decide, based on that picture, whether to approach an agent.

Image consultant and stylist Julie Hyne says this goes further than the obvious “no-nos”: tie with lunch stains, scuffed heels, ill-fitting suits, sleeves too long, too much cleavage and unflattering colour choices.

“Walking down the street and looking at people you don’t know, you form an opinion of them really, really quickly – of their social status, level of professionalism, occupation, personality, whether they are trustworthy,” Hyne says.

“Convert that into the image a real estate agent has and that’s why it is so important they get this presentation right.

“From the clients’ perspective they are looking at this person thinking, are they credible, for me are they likeable, are they attractive to me in terms of whether there is anything there that is really turning me off, how confident are they coming across – and confidence in your overall image is very much influenced by what you wear.”

Studies bear this out: last year a European study on the influence of clothing on first impressions had 300 men and women look at photographs of a man in a suit then make snap judgments. Colour and fabric were the same, but in some he wore an offthe-peg suit, in others a tailor-made suit.

They found the man in the tailormade suit was not only judged better dressed, but more confident, successful,

First impressions: Meredith Fuller advises agents to dress in a way that reflects their personality

flexible and a higher earner. One of the study authors, Dr Ben C. Fletcher, wrote in Psychology Today that women rated photographs of women in which the only variations were an extra blouse button unfastened and slightly shorter skirt. Managers who were dressed more conservatively rated more favourably, whereas there was no difference in the rating of receptionists.

Hyne says real estate agency uniforms

‘Don’t do the body scan … often the people who look like they have just come out of the garden are the ones with the most money’

– Psychologist Meredith Fuller

are often in brand colours – the same coloured jacket and pants, same tie or scarf for everyone citywide or even nationally – regardless of who, if anyone, it suits.

“Style and fit of uniform has a big impact on a person’s level of self-esteem,” she says. “It is important to select something that can have some flexibility – to take into account different body shapes, different proportions, not all people can wear the same colours.”

Hyne says for those unsure what suits them, an image consultation can be a useful investment.

Psychologist Meredith Fuller says: “The best advice I can give is, you need to dress in a way that reflects your personality and how comfortable you feel in your clothes, because you are trying to project your level of alertness, competence and professionalism.

“It is about you wearing your clothes, not your clothes wearing you.

“I see blue suits everywhere,” Fuller says of agency uniforms. “The real estate agents get out and you know they are real estate agents.”

She says it is important to be aware of uniforms’ unconscious reminders. For example, yellow and blue scarves remind people of school.

“I don’t think it is a good idea to have that outrageous branding – you can still show you are part of a team with some badging or some accoutrement that shows who you are.”

Fuller says it takes at least 30 minutes with someone to overcome impressions formed in the first few seconds – and agents often don’t get that long.

“We will subconsciously gravitate to one of the people we feel comfortable with. The problem when you are all in the same suits …(is that) it does not enable individual difference in the mind of the buyer.”

Fuller has another tip, which many experienced agents would already live by: don’t judge buyers by their clothes.

“When people come through, greet them with your eyes, smile and keep your eyes focused on their face – don’t do the body scan, looking at their clothes totting up what they are potentially worth. Often the people who look like they have just come out of the garden are the ones with the most money.”

Julie Hyne offers package discounts of up to 35 per cent for REIV members. See www.reiv.com.au/Members/MemberBenefits-Program/Health-and-lifestyle Contact Meredith Fuller at meredithfuller.com.au The Estate Agent ❘ March–April 2015

39

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Call 1300 695 645 or email success@propertydata.com.au to find out more.

Oc, opoObituary

The man who set the standards Neil Dalton was a key figure in developing minimum qualification standards for sub-agents and enforcing the law against fraud

W

hen Neil Dalton was appointed chief executive officer of the Estate Agents Board in 1983, it was the beginning of a career-long association with the real estate industry.

As chief executive, he played a key role, in conjunction with industry, in developing minimum qualification standards for sub-agents – today’s agent’s representatives course. He was also involved in the development of section 55 of the Real Estate Act, his son James Dalton said.

Futhermore, his role included overseeing board investigations – fraud cases for example. James was told by a former board member his father was proactive in working with agents to improve their knowledge of the law.

Neil’s efforts to share knowledge of business licensing practices across jurisdictions included being invited to address conferences of the US Association of Real Estate Licence Law Officials.

After deregulation 12 years later, he established his own business, Neil Dalton Consulting, using his expertise as a University of Melbourne commerce graduate and knowledge gained with the board to benefit his clients.

In doing so, he earned their friendship and respect, with tributes after his death at 68 in September including praise for his “legendary and encyclopaedic” knowledge of industry practices and related legislation.

“He told me he was very much focused on increasing the educational standards across the industry,” James

Neil Patrick Dalton April 26, 1946 – September 15, 2014

and advising on selling and buying businesses and rent rolls. And it advised on licensing issues and business growth.

James said his father had the opportunity to work in other industry sectors, but chose to focus on real estate to provide his clients with the most comprehensive and knowledgeable advice.

Neil was also a family man, remembered by a former board staff member as a boss who stressed work-family balance. He tutored his son in maths, coached his junior basketball team and they shared a passion for cricket, football and basketball.

“Dad grew up in Port Melbourne and was a passionate Swans supporter.

He continued to support them when they moved to Sydney, when other supporters’ loyalty wavered,” James said.

Neil Dalton is survived by his wife of 45 years, Margaret, son James and granddaughter Isabel (pictured below).

said. His father ran trust accounting training seminars throughout Victoria.

James, a chartered accountant who is now operating his father’s business, said his father “loved the industry, he loved the people in the industry and he really wanted to continue being involved in the industry after deregulation”.

Neil Dalton Consulting specialised in auditing trust accounts. It was also involved in fraud and franchise investigations, trust account training

‘(He) loved the industry, he loved the people in the industry and he really wanted to continue being involved in the industry after deregulation’ – son James Dalton The Estate Agent ❘ March–April 2015

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Obituary

Frank’s lifetime of giving He started at the bottom, passed on his knowledge over a long career and continued to serve his community in retirement

F

rank Kerley, mentor to many of the new generation of Geelong real estate agents during his 65 years in the business and a man devoted to serving his local community, has died aged 87.

An REIV member for more than 60 years and twice president of the Geelong division (1954-55 and 1965-66) Frank was “a gentleman of the industry”, according to the REIV tribute in The Geelong Advertiser after his death. He was also president of the disputes committee for 30 years.

His friend for more than 50 years, Bill McKewan, also a former Geelong division past president, described him as “scrupulously honest, a good man.

He was very active in the branch.

He was always a great mentor for everybody, especially young people coming into the industry”.

Family business JT Kerley Real Estate & Auctioneers was started by Frank’s father, John Thomas Kerley, in Geelong’s Moorabool St in 1910.

A Geelong landmark, the auction rooms, sold to Steven Robinson and Richard Howells in 1993, still operate as furniture and antique auctions today.

Frank worked there part-time from 11 and full-time from 15.

At 16, he started night school in Melbourne, studying accounting and auctioneering, and at 17 began studying real estate.

In 1949, he obtained his full real estate agent’s licence and later became a Fellow of the Real Estate Institute.

In 1950, he conducted his first house auction – an 1880s weatherboard house in Fitzroy St, East Geelong, which sold for £1800. It was the first

Frank Kerley October 15, 1927 – November 27, 2014 of about 2000 auctions he conducted during his career, as well as conducting weekly furniture auctions for more than 50 years.

He continued to work, essentially seven days a week, until retirement at 80. He maintained his punishing schedule, along with his charitable work and family life, despite overcoming a childhood handicap – polio. A shortage of iron lungs meant a grim diagnosis – he was told he would never grow to be a teenager, nor hold a job and have a family. But his mother Theresa, a war nurse who learned alternative medicine in India, Asia and

‘He was always a great mentor for everybody, especially young people coming into the industry’ – Bill McKewan 42

The Estate Agent ❘ March–April 2015

the Middle East, treated him using exercise and a daily swim at the beach.

He recovered and was left with only a barely discernible limp.

Neil Kerley, Frank’s brother, joined the auctioneering side of the business and retired early, leaving Frank to manage the real estate business.

“You could not ask for two better bosses,” Steven Robinson told EA. “A gentleman’s agreement or handshake was as good as your word. They were good mentors for both Richard and I – we are probably old-school as well.

“When the boys started in the business his father gave them the broom and said, ‘You are going to start at the bottom, no favours’.”

A devout Catholic, much of Frank’s community service focused on his faith, including serving on the Geelong Christian Brothers advisory committee, St Mary’s parish council, ethics committees at Deakin and Melbourne universities, and working tirelessly for local orphanages and homes for the elderly. He was also a member of the Geelong Hospital board, as was his father, a 60-year member of the Knights of the Southern Cross and a donor to the Geelong Art Gallery Foundation. He was also a life member of Geelong West Rotary Club.

As well as the Geelong real estate business, Frank opened a Point Lonsdale branch in 1963. After selling the auction business, he operated the real estate business until he retired. He continued to work at Kerley’s Coastal Real Estate in Point Lonsdale for two years after selling it to current director Damian Cayzer.

Frank married his wife Patricia in 1962, and she and their three children – Sarah, Elizabeth and Linus – all worked in the family real estate office.

He is survived by Patricia, his children and four grandchildren.

Directory

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The Real Estate Institute of Victoria has been the peak professional association for the Victorian real estate industry since 1936.

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Members specialise in all facets of real estate, including residential sales, commercial and industrial sales, auctions, business broking, buyers agency, property management, owners’ corporations management and valuations.

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