Estate Agent Magazine August 2020 Issue

The magazine for agents who make a difference.

The Journal of the Real Estate Institute of Victoria AUG. 2020 / VOL. 84 NO. 2

Supporting each other to build a stronger sector CHANGE AMID CHAOS OF COVID-19

MENTAL HEALTH THE KEY

How the industry has evolved

Overall wellbeing crucial for success

PROPEL YOURSELF FORWARD The REIV’s new online learning platform

BUILDING RESILIENCE Tips from the AFL Coaches Association

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

Publisher REIV 335 Camberwell Rd, Camberwell, Victoria 3124 Editor Sarika Bhalla – sbhalla@reiv.com.au Partnerships & Advertising Emma Burton – eburton@reiv.com.au Established in 1936, the Real Estate Institute of Victoria (REIV) is the peak representative body for real estate professionals in Victoria. Our Mission is “To enhance the professional excellence of our members to the benefit of the communities they work within, and to advocate and represent their interests”.

Connect with REIV on social media.

Find us on: facebook.com/REIVictoria @REIVictoria REIV @REI_Victoria

Features 10 Adapting and evolving amid the chaos of COVID-19 The real estate sector had to think fast to adapt as the coronavirus pandemic took hold

16 Why resilience is the business buzzword of 2020 The AFL Coaches Association and the REIV have joined forces to share experience and learn together

PRODUCTION Pagemasters

20 PropEL yourself towards your goal The REIV’s new online learning platform will help launch and build impressive careers

30 Disclaimer Unless otherwise specifically expressed, the views or opinions appearing in The Estate Agent (EA) are those of the authors and do not represent the views of The Real Estate Institute of Victoria Ltd (REIV). The REIV gives no warranty about the accuracy, completeness, or reliability of the content of EA. The entire content is general information only. It is not advice or intended as advice and in no circumstances should be relied upon as such. Readers and third parties should verify the content and seek their own independent advice before making any decisions, financial or otherwise, based on what they have seen or read in EA. The REIV and EA do not endorse or take any responsibility for material on third party websites referred to in the EA.

2 | The Estate Agent – August 2020

Sex work industry: What you need to know The Sex Industry Co-ordination Unit provides subject matter expertise in relation to the sex work industry

Contents

Contents President’s report

Page 4

CEO’s report

Page 6

Bulletin

Page 8

COVID-19

Page 10

Development

14

Health and wellbeing hold key to business survival and success

Health and wellbeing hold the key to success Why resilience is the business buzzword of 2020

Page 14 Page 16

Best practice Page 18

Frequently asked questions

Training The REIV’s new online learning platform The Continuing Professional Development program

Page 20 Page 23

Upcoming events

Page 24

Data insights

32

Residential property prices in Victoria

Page 26

Resources

Four ways to improve your super balance

Video solutions to stand out Sex work industry: What you need to know Four ways to improve your super

Take action now to make a noticeable difference to how you retire in the future

Page 29 Page 30 Page 32

Membership Property managers rise to the challenge New members

Page 34 Page 36

Member milestones

Page 37

In memory

Page 38

34 Property Managers rise to the challenge Our dedicated colleagues continue to go above and beyond to support both tenants and landlords

THE ESTATE AGENT – AUGUST 2020 | 3

President’s report

Leah Calnan REIV President

The first things I have noticed is that we have a new range of terms and words that have become common language. Our day-to-day language and conversations include terms such as ‘social distancing’, ‘masks’, ‘stay at home’, ‘online learning’, ‘jigsaws’, ‘blended’ and ‘if you feel unwell get tested’ – and sometimes all in the same sentence.

While most days I feel like I am a duck – calm above the water and my legs

While most days I feel like I am a duck – calm above the water and my legs pushing hard through the upstream current every day – I can share with you that on a personal level, COVID-19 has taught me to STOP and take a breath.

Leah Calnan – REIV President

4 | The Estate Agent – AUGUST 2020

Half-way through 2020 and it’s a year like no one has seen in their lifetime (and hopefully they never have to see or experience again).

pushing hard through the upstream current every day – I can share with you that on a personal level, COVID-19 has taught me to STOP and take a breath. My family has often had to compete with my career, so in some ways COVID-19 and the lockdowns have given me a chance to remember and reflect on my highly important support network. My three boys have enjoyed more cooking by their mum; more cupcakes, more desserts and more dinners prepared on the night,

rather than the Sunday cook-up that normally takes place. I have even made jam. Who would have thought?

We have taught the boys to play gin rummy and blackjack (never for money) and lots of Uno. Although the strains and stresses are still around us, the time together has been particularly acknowledged by the boys.

The industry has become more agile and

President’s Sectionreport head flexible than it’s ever been. Often described as an old-fashioned industry, there is none of that to show anymore.

The government says change and you only say – how soon? From online auctions and prohibited open for inspections to private appointments, virtual inspections and virtual routine inspections.

For too long we have been a separated group of industry specialists. That is no longer the case. We are a united industry all speaking the same, doing the same, protecting the same.

We wear masks. We wipe down door handles and have multiple hand sanitisers in our car or bag. We now operate business in the new normal. COVID-19 has changed business practice for you and I and for the REIV potentially forever.

Although it may feel like the change has just happened during my term as President, I can Not once have I heard an assure you there was a lot of change happening agent complain. Everyone Leah Calnan – REIV President has acknowledged and and building over the past few years and with past humbly appreciated the presidents Robyn Waters, privileged position that our industry is in. It’s Richard Simpson and Joe actually not about selling Walton. The Board has been a constant voice and leasing property, it’s for change, and this was about providing shelter to showcased with the proposed changes everyone in our community. to the constitution. For the first time in many years, members were engaged, No more handshakes or hugs. We members wanted change and members stand or sit 1.5 metres away from our wanted to learn more. colleagues, our clients and the public.

I am in awe of the change.

Your change.

The REIV change.

With change we have seen our communication become fresh, vibrant and relevant. Members engaging with other members through Zoom and webinars (it’s taught us all we want connection but it doesn’t always need to be face-to-face).

Members helping each other through different social forums.

But the biggest change for me, has been a united approach by our industry.

For too long we have been a separated group of industry specialists (be that a sales person, property manager, admin or office based worker).

That is no longer the case. We are a united industry all speaking the same, doing the same, protecting the same.

Leah Calnan REIV President

THE ESTATE AGENT – AUGUST 2020 | 5

CEO report

Gil King REIV CEO

This year has challenged us all, across all industries, all demographics and all walks of life.

We have been challenged by the confusing messaging from government during this time. It is however important to cut them some slack because it is difficult to write rules, within very short time frames, that apply across

“Just when you thought it was safe to go back in the water…” Just as the notion of flattening the COVID-19 curve was in a relatively positive position, the second wave hit; and it hit hard.

the breadth of every possible scenario.

What springs immediately to mind is the confusion that existed around people travelling between restricted and unrestricted areas for private inspections and the misinterpretation of those rules by the police. How frustrating it was for the REIV to seek specific clarification on this issue from the highest level in the State from the

very beginning, communicate that advice to our members, only to have people turned around by police at checkpoints. This is not the only example, but it does really highlight the difficulty in applying a relatively small set of rules to a population of 6.5 million people and communicating the intent of those rules to those charged with enforcing them.

It is with much pride that I receive feedback from many sources lauding how responsible the real estate profession has been and how conscientious our members have been in protecting themselves, their staff, their clients and members of the public generally. Keep up the good work.

Gil King – REIV CEO 6 | THE ESTATE AGENT – AUGUST 2020

CEO report Section head The repeated use by the government of the maxim “there are only four reasons to leave home” has caused me to bite my tongue on more than one occasion. The stay-at-home directions at the time actually stated five reasons with the fifth being “other specified reasons”. Those “other specified reasons” included 10 additional reasons. So, there were in fact between 15 to 20 reasons for leaving home.

The real issue from the REIV’s point of view has been the inconsistent and unclear messaging around what can and cannot be done.

With every dark cloud there is a silver lining. We have experienced much learning during these times and the use of technology to communicate with our members, staff and stakeholders has been a real positive.

Gil King – REIV CEO

Adding to this challenge are people that refuse to comply with any rules because of their personal beliefs, and those that know the rules and try to find ways to circumvent them. This is a challenge for the government, and it is a challenge for us all as well.

As you may be aware the REIV office at 335 Camberwell Road has been closed since March and only essential staff have been allowed on site, particularly during the Stage 3 restrictions. When we first moved staff off-site in March, we thought this situation might last two or three months. We now know that it has been much longer and just how long it will eventually be is a matter that is still being worked through. The REIV staff have been fantastic in the way they have

adjusted to working from home and I am certain many of you will have similar experiences with your own offices. What we must never forget is the mental health of our staff in these difficult times. Some people adapt easily and happily to working from home; others miss the social interaction the workplace can provide. Add to this the uncertainty around employment, their personal finances, their health and the health of their family and we have an insidious mix.

Dealing with our clients can be a joy but it can also be a challenge. We can get engrossed in our daily life and days fly by with the risk we can forget the challenges that some people might face during these times. Looking out for one another is a priority in the best of times and now more than ever before, this is critical.

I congratulate all of you for the manner in which you have adapted to the thought-provoking environment that we face. It is with much pride that I receive feedback from many sources lauding how responsible the real estate profession has been and how conscientious our members have been in protecting themselves, their staff, their clients and members of the public generally. Keep up the good work.

Resilience is one of the key personal

attributes that we must all build to navigate through this period.

Looking for innovative ways to deliver this crucial message, the REIV partnered with the AFL Coaches Association on this very issue. The AFL too, despite all the challenges, has pushed forward, adapted and evolved on an almost daily basis as the rules in each state or territory evolved, even to the point of the unthinkable happening with the AFL grand final not being played at the MCG. The more we discussed the issue with the Coaches Association, the more we found greater alignment and inspiration that real estate professionals would empathise with and learn from.

With every dark cloud there is a silver lining. We have experienced much learning during these times and the use of technology to communicate with our members, staff and stakeholders has been a real positive. You might recall that in the November 2019 edition of EA I mentioned that we would be travelling around the State to connect with our members during 2020. Well that has not been possible since March. What we have been able to do, and what we intend to do into the future is to ‘lock in’ virtual meetings with each regional Division at least twice a year, even when we are able to travel again. This initiative has been received very well during the first half of the year and we will continue this into the second half of 2020 and beyond.

I look forward to engaging with our regional members more frequently and in greater numbers.

Gil King REIV CEO

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THE ESTATE AGENT – AUGUST 2020 | 7

Bulletin

Launching the Xchange series REIV Chapters are special interest groups to help Members engage with like-minded professionals, learn and develop in aspects that are relevant to their area of work.

We are excited to launch the REIV Xchange series, virtual catch-ups between members from a Chapter and their respective representative Committee.

The Xchange series will provide a forum for members to share ideas, provide input, discuss topical issues and more.

We are here to help Your representative Chapter Committee will lead and support these discussions and work with the REIV on any follow up required.

Members can update their Chapters by logging in to reiv.com.au and updating their “areas of expertise” under the “Member Profile” page.

Look out for notification on your Chapter Xchange.

We are excited to launch the REIV Xchange series, virtual catch-ups between members from a Chapter and their respective representative Committee.

Over the past few months, the REIV has been sharing information, tools and resources across several platforms to make access easier for all members. You can join the conversation through whichever medium suits you best.

Email updates • Please make sure you have provided a correct personal email address.

• Update your subscription preferences as we will only send you the information that interests or impacts you.

• You can login at reiv.com.au and update your preferences at any time.

Website • A range of guides, webinars and updates are available on reiv.com.au/covid-19

Social media • Join a bespoke REIV Facebook Group where members can exchange ideas, discuss issues and help each other through these challenging times.

“Managing real estate business during COVID-19 pandemic”.

• REIV updates are also shared on Instagram, Twitter and LinkedIn.

Information Officers • The REIV Information Officers are available during business hours to assist with any specific queries.

8 | THE ESTATE AGENT – AUGUST 2020

Bulletin

Keeping your membership active is even easier now We understand that some members will be feeling the financial impact of the pandemic. REIV is offering a simple, cost effective way to renew your membership while managing cash flow.

29EA Additional prohibited terms contracts Sale of Land Act Background information – Sale of Land Amendment (Exemption) Regulations 2020

What is a terms contract?

• No additional cost or fees for choosing monthly Direct Debit, helping members better manage cash flow.

A terms contract for the sale of land is a contract where a seller and buyer agree that the buyer will pay the purchase price of the property in instalments prior to the seller completing a transfer of land in the buyer’s favour. They are sometimes called ‘vendor terms’ contracts or ‘vendor finance’ contracts.

• Due date of the membership renewal invoice extended to 1 October, 2020.

During the Victorian Government’s Consumer Property Law Review, it was suggested that:

If you have any queries, or seek to request temporary suspension of your Membership please don’t hesitate to contact the team by phoning 9205 6666 or email membership@reiv.com.au

• Market changes over the past 50 years, in particular in the competitive mortgage market, mean that there is no longer a compelling reason to continue to allow the use of terms contracts, and

• No CPI related fee increase this financial year.

2020 has posed many challenges for everyone. At the REIV, we have been working tirelessly to support our Members over this period and will continue to do so. The strength and engagement of our membership has been crucial in achieving some of the very important outcomes we have successfully accomplished over this period. Thank you for your ongoing support of the REIV.

Resources for business Members will soon have access to an online library of REIV Guidelines, Notes and other tools covering a range of business issues. The guidelines are being developed to assist Members implement best practice processes in their business. Further information will be available soon.

• These contracts should be restricted to avoid exploitation of vulnerable consumers who cannot access conventional mortgage finance.

Relevant sections inserted into the Sale of Land Act 1962 are: 29EA, 29EB and 29EC to be inserted into the Sale of Land Act 1962 (the Principal Act) by the Sale of Land Amendment Act 2019 (the Amendment Act), establish a number of new offences where the price of residential land under a terms contract ‘is less than the prescribed amount’.

(Consultation on the prescribed amount is underway).

Changes effective 1 March, 2020: 29EA Additional prohibited terms contracts A person must not knowingly sell any residential land (other than residential land that is agricultural land) under a terms contract where the sale price of the land is less than the prescribed amount. Penalty: For a natural person, 240 penalty units or imprisonment for two years or both; For a body corporate, 1200 penalty units 29EB Offence to arrange, broker or induce certain terms contracts (1) A person must not knowingly arrange or broker the sale of any residential land (other than residential land that is agricultural land) under a terms contract where the sale price of the land is less than the prescribed amount. Penalty: For a natural person, 240 penalty units or imprisonment for two years or both; For a body corporate, 1200 penalty units.

(2) A person must not knowingly induce another person to enter into a sale of any residential land (other than residential land that is agricultural land) under a terms contract where the sale price of the land is less than the prescribed amount. Penalty: For a natural person, 240 penalty units or imprisonment for two years or both. For a body corporate, 1200 penalty units.

29EC Offence to advertise certain terms contracts A person must not knowingly advertise the sale of any residential land (other than residential land that is agricultural land) under a terms contract where the sale price of the land is less than the prescribed amount. Penalty: For a natural person, 120 penalty units; For a body corporate, 500 penalty units.

THE ESTATE AGENT – AUGUST 2020 | 9

COVID-19

Adapting and evolving amid the chaos of COVID-19 The real estate sector had to think fast to adapt as the coronavirus pandemic took hold.

Since entering Victoria’s second lockdown, businesses have recognised that the serious challenge that is the COVID-19 pandemic is no longer characterised by a short-term adjustment, but will change the real estate market forever.

To deal with such drastic changes, businesses across the industry have developed plans and strategies that help them deal with adversity and change, effectively and efficiently. The adaptability of individuals within the real estate industry has played a pivotal role in reducing the damage done to the market and ensuring all stakeholders are well prepared to deal with the new norm.

To learn from our peers, we asked some Members to share their experiences over this time.

time in respect of the available relevant data at that time. Valuations cannot be based on data alone; inspection and measurement are essential. The REIV’s win on inspections during lockdown was critical for Valuers too. Despite all of our diligence, there is a high degree of valuation uncertainty and, as a result, valuations have more limited shelf lives and require more frequent review.

“The impact on types of valuation work varies across the State. It is probably safe to say that generally, mortgage valuations have decreased and advisory work for Landlords and Tenants and support for Property Managers has increased as we all grapple with the Commercial Code, Residential Rent Relief, other support measures and Government directions.

“In many respects, the COVID-19 pandemic represents another serious market challenge. In such crises, every Valuer’s first response must be the conscious reinforcement of their professional standards, due diligence, research, reliance on evidence, comprehensive reporting and ethics.

“Like everyone else, Valuers have implemented their Business Continuity Plans. For small practices and sole traders, little has changed. For larger ones, remote working and getting the most out of available technology has been critical. Social distancing, hand hygiene and being efficient with the time that we need to spend with clients and on premises are part of our new normal. While physically we may all be more isolated, we are making conscious effort to maintain connections with our colleagues, peers and networks inside and outside real estate.”

“It would be all too easy to be distracted and influenced by media stories about the market and economy, but Valuers must stay focused on the evidence. It is problematic when there is limited sales and leasing activity, but valuations are always made at specific points in

While Property Managers across residential and commercial property have been negotiating financial relief measures with individual tenants and landlords, the Owners Corporation “cannot treat individual owners differently as they are liable to pay their share of the OC

Market Dynamics The REIV Valuers Chapter Committee’s summary of challenges is mirrored across all aspects of real estate.

10 | THE ESTATE AGENT – AUGUST 2020

budget in proportion to their lot liability”.

Neville Sanders, REIV and REIA Past President, said: “We are encouraging committees to authorise turning off penalty interest on overdue OC fees.

This means that owners that are normally prompt payers, will not accrue interest. Those owners with old arrears will not incur new interest but the old interest remains unless the committee resolves to waive.”

The pandemic has impacted everyone in some way. Bill Di Donna from the REIV Commercial & Industrial Chapter Committee said: “Some businesses that you would expect to be doing well, have actually seen a large drop in trade.

Chemists have experienced a turnover drop, not because drug and prescription sales are down but because the other lines of cosmetics and other products sold by chemists are not moving.

“Suppliers to the retail trade can also be impacted where their payment terms have changed significantly. On paper their business turnover may not have declined, and they may not be eligible for rent relief despite having severe cash flow issues.

“Business that have relied on overseas mail delivery such as online stores have suffered since Australia Post cut overseas services in mid-March. There are many countries now that have surprisingly cut their air freight services and have severely restricted online business.”

Technology – Managing business and relationships With the growing importance of maintaining physical distancing, the real estate sector embraced and implemented digital tools to keep the business of real estate open. Nicholas Lynch Managing Director Andrew Meehan and his team exemplify the adaptability of the real estate sector. Following forewarning of a second wave, Meehan and his team “immediately created walk-through videos for all [their] properties” to ensure that buyers were still guaranteed a chance to view a location from the relative safety and comfort of their own homes. It was the efforts of the Nicholas Lynch team in

COVID-19

While physically we may all be more isolated, we are making conscious effort to maintain connections with our colleagues, peers and networks.

adapting quickly and effectively that even allowed for a property to sell “to a buyer in California based solely off the property video”.

Owners Corporation Management at Ross-Hunt Real Estate also resorted to an online format for meetings and announcements which many others have also done. “Following trials of the online meeting space, the feedback received from clients has been extremely positive, many considering permanent change after clients indicated it was more convenient and useful than face-to-face meetings.” As such, changes across the sector have been legitimised by positive feedback which not only improves efficiency in the short term but may well become a feature of business in the long term.

Well-respected auctioneer and trainer Andy Reid also commented on the flexibility that technology has offered over the COVID period. “For some, the auction timetable simply did not work.

It was the simplicity of an online auction that allowed this time to be shifted forward to a reasonable date that allowed “all bidders” to attend.

The sheer flexibility that technology has offered clients, has not only improved customer-business relations but also allowed for improved efficiency and customer satisfaction.”

Buyers Advocate Mark Errichiello talks about the opportunity to have deeper relationships with a few clients: “Technology allowed us to focus on thorough communication between parties, while standard operating practices were processed and accelerated by many of the online tools we embraced.”

These are only some of the examples of the implementation of technology across the real estate sector that have made business possible during the pandemic, and it looks like some of these changes are here to stay.

Dealing with the uncertainty “An important issue facing all businesses in the real estate sector is dealing with the unknown. Genuine buyers are concerned or reluctant to purchase amid the uncertainty which has led to a small decline in sales prices and invited a greater number of bargain hunters looking for property.

At the beginning of lockdown, it was this reluctance to purchase which led to many buyers walking away from Contracts of Sale and a dip in the market for Business Brokers.”

Gloria Ammerlaan and her team at Connect Business Agents saw the full force of this wave and were hit hard by

the pandemic. However, it was their resilience as a team that helped them survive this pandemic.

Property Managers such as Nikki Jensen were faced with a range of challenges from rent negotiations to managing property maintenance requests in a safe manner. “The multiple legislative changes over the period put Property Managers under a lot of pressure. Lack of clarity and communication from government authorities made this period even more challenging. A range of issues like insurance implications, protecting landlord interests etc. were not addressed by government authorities, leaving Property Managers to find solutions for their clients.”

Most selling agents have reported low stock levels. Leyden Burdett referred to the importance of dealing with “vendor anxiety – keeping safe, selling at this time, generally the unknown”. Agents themselves have the added burden of “making sure procedures are up to date”. Some vendors have adapted to the lockdown by doing their own video walk through for appraisals. It’s allowed the vendors to be proactive in filming their own homes and highlighting features that stand out.

CONTINUED ON PAGE 13

THE ESTATE AGENT – AUGUST 2020 | 11

12 | The Estate Agent – AUGUST 2020

COVID-19 CONTINUED FROM PAGE 11

Personalised service Paul Murphy, from the team at Murphy Jacobs, said understanding the uncertainty of the coronavirus pandemic led his team to develop a “new approach to buying and selling property”. He has noticed a strong change, like others in the real estate sector, of the buyer market. Now that physical distancing has limited the number of patrons that can visit a property, more and more so, the individuals who are showing interest in visiting a property are more than likely to be committed buyers. This has meant that teams are better suited to delivering information to these clients as they understand the level of interest they hold. As Murphy insists, the “real estate market is always moving”.

The Agency’s Christine Henderson resonates with this view: “Hi-tech is crucial however it was the high-touch that was most important. Handwritten cards were so appreciated by my clients – something to brighten their day.

Phone conversations were longer and more meaningful. It wasn’t just about real estate but rather checking in and reaching out to clients to see how they were coping.

“Longer phone conversations lead to more qualified buyers coming through properties. I’ve enjoyed the challenges during this time as I feel the slower pace has led to more personalised service and more meaningful relationships being built with my clients.”

Agility, adaptability and resilience

Physical distancing has limited the number of patrons that can visit a property.

“It has been an opportunity for our team to reflect individually, and to revisit and assess their own personal skills in the areas of resilience, agility, and adaptability. We believe we will come out of this better prepared Phone conversations pandemic to face the challenges were longer and of our everyday life as a business broker. And more meaningful. after every difficult time It wasn’t just about that has occurred in the real estate but past, we have always rather checking in come through it.”

and reaching out to clients to see how they were coping.

Christine Henderson – The Agency

Ian Wollerman says: “Like everyone else, the onset of COVID-19 was going to require our people to learn to operate under a very different environment. When we gave thought to how this was going to work, we were reminded that resilience, agility, and adaptability were personal skills which were already present in successful business brokers.

Clementina Tralongo adds: “The skill and mindset of managing the expectation, stress, exhaustion, and anxiety of the customer regardless whether it’s a tenant or a landlord has shown the resilience of the property manager.”

Supporting each other has been the biggest strength Stories of Owners Corporation Managers and Property Managers working together to assist clients have become more common. One such story was shared by

REIV Member Bill Hegarty where a maintenance issue in a property with a resident in isolation, was addressed with assistance from the OC Manager stepping in.

While some people are loving work from home (more productive, less travel, more work life blend, time spent with kids and pets and family) and others are hating it (missing the office environment & infrastructure, missing the connection with colleagues & missing the instant support of leaders). Grita Angelucci shared some of the positives of working from home “I have made the most of this pandemic by rejuvenating and spending quality time with my family.” A sentiment that’s mirrored by many.

Gloria Ammerlaan commented on newfound bonds and friendships that have emerged through this pandemic between competing businesses.

Understanding that everyone is struggling during this period has allowed for mentorship and support programs between businesses to form that has improved resilience and adaptability. Competitors are now working more closely than they ever have, to make sure that their industry survives this pandemic.

The Estate Agent – August 2020 | 13

Development

Health and wellbeing hold key to business survival and success The real estate industry is competitive by its nature, but when it comes to pandemic pressures we’re all in uncharted territory.

The work of real estate professionals can be highly rewarding but also exposes them to a range of mental health risks.

The sales role is highly competitive, incessant, and can lead to feeling isolated and lonely. It can often compromise family relationships to accommodate client needs. Property managers may be exposed to family violence in tenancies, tenant suicide, tenant aggression and be forced to manage conflict resolution between landlords and tenants.

In addition, there are ongoing changes to legislation and training requirements and agents operate in a market subject to external financial pressures beyond their control.

A recent survey across industry members indicated that 56 per cent felt stressed either often or always; 46 per cent experienced stress and anxiety symptoms often or always; and 23 per cent had no time at all to enjoy interests and pursuits outside of their work.

Since March all estate agents, their staff and clients have had the added stress of working during the ongoing COVID-19 pandemic. The pandemic has impacted on the ways sales are conducted and added additional stress to landlord/tenant relationships.

This highlights the importance of including mental health as an integral part of all estate agents’ business planning. Staff, including the business owner, are the most important asset in any estate agency. Their health and 14 | THE ESTATE AGENT – AUGUST 2020

You want an environment that encourages people to recognise when they are not coping, and know that it’s OK to put their hand up and ask for help.

Patrice O’Brien – Chief Community Officer, Beyond Blue

wellbeing is critical to achieving success.

A positive workplace mental health culture is an integral part of a successful estate agent’s business plan and includes components of: • Business continuity • Risk management • People management • Occupational health and safety

This approach will contribute to business survival and ongoing success.

Beyond Blue’s Chief Community Officer Patrice O’Brien says: “I’m sure it is every business leader’s desire to have resilient employees who can manage their mental health, but evidence shows that is unlikely.

“It’s crucial for business leaders to

Development

Physical activity keeps the body strong and healthy and can improve mental health by decreasing symptoms of depression, anxiety, pain and loneliness.

create an environment where as many staff as possible are thriving, productive and enjoy being at work. You want an environment that encourages people to recognise when they are not coping, and know that it’s OK to put their hand up and ask for help.”

Recognising the key role that agency owners play, Beyond Blue recently released a booklet “Supporting small business owners to improve their mental health and wellbeing at work”.

This interactive resource provides information on: • Signs and symptoms of mental health conditions • Actions you can take to support someone • Speaking with someone you’re concerned about • Solutions for small business owners • Resources and links • Creating a personal wellbeing plan and a workplace wellbeing plan Additional information and resources are available on the Beyond Blue workplace mental health website headsup.org.au which includes information on:

• Healthy workplaces • Your mental health • Supporting others • Free training and resources Ms O’Brien says it is important for employers to understand that their workers will experience a range of wellbeing levels, particularly during the COVID-19 pandemic.

“Some employees will be resilient and show high levels of wellbeing. Others may have difficulty coping, experience severe mental health symptoms or have suicidal thoughts,” she says.

“However, it is important to remember that support is always available. Reaching out to someone can often be the first step towards recovery.”

In response to the mental health impacts of COVID-19, Beyond Blue, with funding from the Federal Government, has established the Coronavirus Mental Health Support Service. This service has been developed to address growing concerns about the pandemic including fear about the virus, financial stress, family stress, anxiety and loneliness.

Through an online site, the service offers a range of practical supports from online wellbeing tips and self-help tools, while a team of trained mental health professionals and peer-to-peer workers are available to provide free counselling, advice and referrals over the phone. – Beyond Blue

The new Coronavirus Mental Wellbeing Service is available 24/7. Its dedicated phone line is open on 1800 512 348 or you can visit coronavirus.beyondblue.org.au The digital site provides specific information on how agents and their staff can identify and manage the impact of the pandemic on their work coronavirus.beyondblue.org.au/ impacts-on-my-work.html For mental health concerns not related to COVID-19, mental health professionals are available at the Beyond Blue Support Service via phone 24/7 on 1300 22 4636 or via beyondblue.org.au/get-support for online chat (3pm-midnight AEST or email responses within 24 hours).

Refer to reiv.com.au/wellbeing for a range of tools and resources for business and personal wellbeing.

The Estate Agent – AUGUST 2020 | 15

Development

The REIV has teamed up with the AFL Coaches Association to share transferable skills in an environment that is testing the resilience of people from all walks of life.

Why resilience is the business buzzword of 2020 The REIV and the AFL Coaches Association have taken a unique step to support their members through these difficult times, joining forces to share experience and learn together.

Whether it’s your work, sport, education or life in general, we all are truly having our mettle tested. The pandemic has set life to a crawling pace around the globe and while uncertainty reigns, one word has become a condition for success in each sector: resilience.

The REIV partnership with the AFL Coaches Association, is helping share transferable coaching strategies and insights learned from iconic AFL coaches.

“At this time, resilience is what every individual needs to build – not just in real estate but in all walks of life. We feel lucky to be in an industry that already attracts people with such qualities,” REIV CEO Gil King said.

“We’re confident that the sector will emerge strongly from these challenges and as a peak body we’re looking at 16 | The Estate Agent – AUGUST 2020

innovative ways to help our members in these challenging times.”

The REIV believes the challenges of 2020 mean there needs to be renewed focus on helping members understand and enhance foundational elements of success.

“Real estate is a sector that rewards the entrepreneurial spirit. Professional development requires continually updating your skills and adapting to the world around you. Those that embrace change and adapt are more likely to succeed in the long run,” King said.

Working with a coach, “provides more than training – they create an environment where the individual can thrive. A coach provides leadership, direction and support that extends to the individual’s personal wellbeing.”

Sport and real estate: the perfect partnership When asked about the collaboration with the AFL Coaches Association, King explained that, “the AFL coaches are some of the best and most experienced people when it comes to building resilient, high performing teams. The two organisations have come together to learn and share experiences that will help members adapt, learn and grow in their fields.”

A mutually beneficial collaboration, some of the AFL coaches have even decided to extend their repertoire of skills by undertaking REIV training while the REIV taps into the extensive knowledge and experience the AFL Coaches have in getting the best out of people.

“This is professional development done in an innovative way, said King.

“The coaches know the importance of resilience in a game and real estate professionals have seen their industry go through changes, ups and downs.”

“Some of the great examples of human resilience can be found in sport. We take inspiration from the physical and mental strength demonstrated by the players.”

Explore all the resources developed in association with AFLCA at reiv.com.au/best-you-can-be

Development

AFL Coaches Association CEO Mark Brayshaw on what makes a great coach

earn the players’ trust with a deep knowledge of the game.”

To celebrate the REIV partnership we asked AFL Coaches Association CEO Mark Brayshaw to share his thoughts on what makes a great coach.

Lead by example

Curiosity is key “All the great coaches I know of have sustained their position at the pinnacle by relentless curiosity and genuine continuous improvement. Their journeys are very dependent upon others with complementary expertise coaching the coach to improve certain aspects of her or his performance.”

“A great coach must have a deep and respected understanding of the game, to achieve the players’ collective trust.

Frankly, if the coach isn’t a subject matter expert it’s very hard to credibly lead an elite team. S/he doesn’t have to have all the answers and can always rely on experts here and there, but s/he must

“Impeccable integrity is non-negotiable. Without it, a coach is dead. The coach must also lead by setting a first-class example. S/ he must be the role model of the values the team professes to hold dear.”

Impeccable integrity is non-negotiable.

Without it, a coach is dead. The coach must also lead by setting a first-class example. S/he must be the role model of the values the team professes to hold dear.

feedback – especially when it comes from an expert – can be gold. More often than not, they praise in public, but criticise in private. Great coaches seem to have the ability to treat people with dignity but at the same time tell them honestly the bad news if necessary.”

“The best coaches “I’ve never seen a Mark Brayshaw unlock the potential great coach who hasn’t – AFL Coaches Association CEO of each individual developed a deep and then conduct understanding of each the orchestra in such individual player, because a way as to optimise the alignment of unless the players feel the coach cares each individuals’ contribution for the about them, they’re unlikely to optimise best result of the team. It’s not possible their potential.” for the majority of individuals to provide optimal effort levels without the coach Know when and how to talk weaving her or his magic to align each to people individual for the best interest of the “All professionals ought to be open collective team.” minded to receiving feedback and that THE ESTATE AGENT – AUGUST 2020 | 17

Best practice

What are we talking about?

Jim Lourandos & David Dundas REIV Information Officers

REIV Information Officers David Dundas and Jim Lourandos address some of the current common questions from Members.

What needs to be disclosed about real estate when it is being bought or sold?

Section 32 of the Sale of Land Act imposes some disclosure requirements on the vendor, but by no means leads to the disclosure of all relevant facts about a property. However, recent changes to section 12 of the Sale of Land Act place onerous disclosure requirements on “any person” acting to induce another person to buy land. Such people would obviously include an agent acting for a vendor or for a buyer. The section should be read in full, but the key words are that “Any person who, with the intention of inducing any person to buy any land …

knowingly conceals any material facts… shall be guilty of an offence…”.

There is no definition of “material facts” in the Act, but as permitted by the Act, the Director of CAV has provided guidelines to assist vendors and agents to understand what a material fact is likely to be.

CAV’s attempt to define a material fact covers one-and-a-half pages and includes the following: “A material fact is a fact that would be important to a potential purchaser in deciding whether or not to buy any land.

In the context of a proposed sale of land,

a material fact is one that influences a purchaser in deciding whether or not to buy any land at all, or to buy land only at a certain price.”

The vendor and the agent are required to disclose material facts, yet CAV acknowledge that what may be a material fact to one purchaser may not be to another. It therefore falls to the agent to ascertain from a potential buyer what they consider to be material facts.

A material facts checklist is available to members as a complimentary form to aid the vendor in declaring material facts.

The agent can then use this information to inform the buyer of the facts that are material to them.

Should my employer be treating JobKeeper as part of my retainer to be recovered through commission on sales?

Under the Real Estate Industry Award salespeople, unless they are employed on a commission only basis, are entitled to a wage. Their employment agreement should also contain details of how commission will be calculated.

The retainer debit/credit system is not contained in the Award, it is instead adopted by many agencies as a convenient way to calculate commission entitlement.

A material fact is a fact that would be important to a potential purchaser in deciding whether to buy land.

18 | THE ESTATE AGENT – AUGUST 2020

In regular times the wage paid to a salesperson comes out of the employer’s “pocket” and is recovered from the commission the salesperson earns. The salesperson is then paid the amount by which commission earned exceeds the amount that has come out of the employer’s “pocket”.

Best practice Under JobKeeper, a portion of the wage each fortnight comes from the government rather than the employer, so if the employer “recovered” it they would be recovering something which has not been an expense to them and in effect they would not be passing on the JobKeeper payment to the employee.

The ATO is working to ensure the integrity of JobKeeper and among the fraudulent behaviours they have identified is employers not passing on the full JobKeeper payment to employees.

The vendor’s solicitor claims I am not entitled to commission, how can this be so?

Unlike many other businesses, real estate agents must adhere to onerous compliance requirements to be entitled to payment for work done or expenses incurred. The relevant sections in the Estate Agents Act and are 47A, 48, 48A, 48B, 49A and 50.

Failure to comply with any of these

sections will void the agent’s claim to payment of commission and/or expenses, even if there has been no detriment to the client.

Some common mistakes to avoid include:

The ATO is working to ensure the integrity of JobKeeper and among the fraudulent behaviours they have identified is employers not passing on the full JobKeeper payment to employees.

Using outdated authorities: From time to time changes are made to authorities, with some being to ensure continuing compliance with the Act. This may mean that hardcopy authorities held by the agency may be out of date and should be destroyed.

Authorities available on Vicforms, or as complimentary forms on the members’ website, are the most up to date versions of those authorities.

No estimated commission: If commission is to be calculated as a percentage the authority must

contain the percentage formula and the dollar amount payable on the reserve price or other relevant amount in the authority. If an incentive or bonus commission is involved the example calculation should demonstrate the operation of the incentive or bonus, in other words on a sale price above the point where the bonus commission comes into effect.

No dollar amount for advertising/marketing/ other expenses: The amount that can be claimed is limited to the amount recorded on the authority, and then only if it does not exceed the amount payable by the agent for those expenses. A schedule of expenses signed by the client is not sufficient, the maximum amount of the potential claim must also be on the authority.

Call us: 0451 042 234 commonareacleaner.com.au

THE ESTATE AGENT – AUGUST 2020 | 19

Training

PropEL yourself towards your goal The REIV’s new online learning platform will help launch and build impressive careers While we were all finding new ways of dealing with the pandemic, the REIV has been strengthening the learning and development offering for our Members and the wider real estate sector in general.

The remit was broad ranging. From building online learning capability through to attracting high quality people with relevant experience to grow the REIV learning offering. We are pleased and excited with the outcomes so far and look forward to building on this strong foundation.

20 | THE ESTATE AGENT – AUGUST 2020

Online learning Earlier this year, the REIV launched its new online learning platform PropEL – a property e-learning platform that will help launch and build impressive real estate careers. The platform has been successfully delivering and managing the REIV Agents Representative Course since April 2020. A wide range of ongoing professional development courses are being added to PropEL making it easier for you to access high-quality information at a time and place convenient to you.

Qualified and experienced team The REIV is a Registered Training Organisation delivering nationally accredited training and working closely with government agencies like the Department of Education to upskill real

estate professionals across a range of areas. The REIV Training Manager’s role is critical in maintaining a compliant RTO and delivering the high-quality training that is expected from Victoria’s peak real estate body.

Introducing our new Training Manager Tammi Burke. Tammi has more than 10 years’ experience in RTOs with hands-on experience in online learning and ongoing professional development training. But what makes Tammi a perfect leader for the REIV training team is her 10-year experience in real estate. Tammi brings a depth of experience and relevant expertise that will help deliver the best real estate training in the State.

To find out more about the REIV training options visit reiv.com.au/training

Section head

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Technicians not turning up to appointments?

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Landlord details leaving your office?

Office keys required for majority of your appointment bookings?

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Offshore call centres trying to make appointments with your tenants?

Sub-contractors completing your work?

Alarms being relocated when not required?

Invoicing for works that has not yet been completed?

Smarthouse Australia is Victoria’s leading smoke alarm and gas heater specialist’s, proudly partnering with the REIV to deliver best practice servicing to the real estate industry.

We hear the above from many clients in the industry and are here to ensure your smoke alarm service runs smoothly and efficiently… The way it should.

Specific appointment times locked in with tenants

Smarthouse Carbon Monoxide Servicing

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● Gas plumbers directly employed by Smarthouse

Your individual account manager with property management experience

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Please make contact with the friendly staff at Smarthouse if the above problems are all too familiar with your office. We would love the opportunity to provide guidance on the best way your service should be run, and allow you to focus on what really matters to your business. We look forward to talking with you soon.

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03 9822 3223 | smarthouseaustralia.com.au

The Estate Agent – AUGUST 2020 | 21

Section head Training

Strategic focus to enhance professionalism in the sector Ongoing professional development has always been a core purpose of the REIV. The mission statement states, “To enhance the professional excellence of our members to the benefit of the communities they work within, and to advocate and represent their interests”.

The REIV CPD program provides a framework to ensure continued focus on this aspect of membership.

There are many definitions of “professionalism”. Almost all interpretations refer to skills, competence, ethics, and manner to distinguish a professional from an amateur. The REIV Professional Development Program has been reviewed and reinvigorated to cover a wider range of initiatives that contribute to professionalism in real estate.

To truly build and maintain the REIV Difference, it is important that Members continually dedicate time and effort to staying a cut above the rest.

accessible, and flexible. The objective is to raise the standard of our members over and above those who are not REIV members.

The REIV Professional Development Program is designed to be simple,

Find out more on reiv.com.au/CPD

Are you keeping your team up-to-date with changes to real estate laws?

The Solution: Customised REIV training, at your office.

A convenient and cost- effective way to upskill your team and have their questions answered.

Contact training@reiv.com.au

22 | The Estate Agent – AUGUST 2020

Training Section head

The REIV CPD Program A well informed, skilled and responsible Membership supports consumer confidence, improves public perception, demonstrates the REIV Difference, and gives consumers even more reason always to choose an REIV Member.

Some key aspects of the program: What activities qualify as Professional Development: Activities that support professional development include those that: extend your real estate related skills, knowledge and understanding; support the operation of compliant and responsible real estate business and demonstrate your contribution to the overall development of the real

estate sector. Relevant activities will be assigned an REIV CPD Point value. This may include some compulsory training each year.

Who needs to comply: CPD requirements must be met by all REIV Licensed and Representative Members.

Honorary Life Members, who are also Licensed Members, must also achieve the required CPD points.

CPD Year: 1 April – 31 March CPD Requirements: A minimum of 12 REIV CPD Points* must be achieved in a CPD year. At least eight of these points must be from REIV activities and initiatives. The REIV Ethics Module (two points) must be completed each year.

The Member is responsible for reporting any external professional development activity to be reflected in their CPD record. The REIV will determine the CPD point allocation for any such external activity.

Compliance with CPD requirements will be considered for Members applying for any REIV Board, Chapter and Division Committee roles.

Professional development activities undertaken outside the REIV: Please submit evidence of the completed activity. Allocation of points will be at the discretion of the REIV. No fees apply.

Examples include formal training such as a business qualification training, and events provided by AICD, API, AVI, RICS, Victorian Chamber of Commerce and training/event/competitions by or through your employer/franchise group.

External event/training providers may apply to REIV to have their event or training pre-approved for REIV CPD points recognition. The REIV will determine the CPD points that may be awarded and any applicable fee to evaluate the event or training. The allocation of points will be at REIV’s sole discretion.

Recording CPD Points: Points allocated to REIV events and training will be automatically allocated to the Individual Member. All other initiatives must be reported by the Member in order to be reflected in their REIV CPD record.

The 2020/21 CPD year is now underway. To assist members comply with requirements in this period, only 8 REIV CPD points need to be accumulated by 31 March, 2021 (including any points accumulated since 1 April, 2020).

The updated program is being refined and related processes will be gradually rolled out over coming months.

Managing shortfall: If a Member fails to accumulate the requisite number of CPD points in the CPD year, they will be required to make up the shortfall in the following CPD year (in addition to the 12 CPD points of the new CPD year). Should the Member not achieve the required number of points in the second year, the Scheme provides that this could result in action by the Board.

THE ESTATE AGENT – AUGUST 2020 | 23

Events

Upcoming Events – September to November September 2

Webinar: Inside Property Management – Accurate Depreciation Schedules

3

Webinar: Mental Health and Coping with Change

22

Novice Auctioneering Competition – Heats – Watch Online

29

Novice Auctioneering Competition – Final – Watch Online

October 1

Webinar: Buyers - Understand the Potential

7

Webinar: Inside Property Management

13

Senior Auctioneering Competition – Watch Online

14

Webinar: How to Rebuild and Grow Your Super

22

Awards for Excellence and Commercial & Industrial Marketing Awards Online announcement

28

Webinar: Short-term Finance Options for Vendors

Dates correct at time of publishing.

Topics and speakers are added online as information becomes available. For the latest updates, please refer to reiv.com.au Events will be held as webinars while restrictions on gatherings are in place. Please refer to reiv.com.au for details or contact us on events@reiv.com.au

November 4

Inside Property Management

20

Economic Forecast Lunch

Thank you to all our Partners for their continued support

Home

24 | THE ESTATE AGENT – AUGUST 2020

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The Estate Agent – August 2020 | 25

Data insights

Residential property prices in Victoria There have been many observations about the size and duration of the impact the coronavirus crisis is having on residential property prices. The uncertainty around the pandemic’s longevity and accompanying restrictions play a huge part in the confidence of consumers and performance of the real estate market.

Both Median Prices and the Residential Market Index (RMX) have a role to play in understanding the property market.

The latest quarterly median prices revealed that the market is still strong.

While there has been a small adjustment from the previous quarter, the market is in much better shape than it was in 2019 across all property types.

An important tool to help monitor current price trends is the RMX, updated weekly.

The RMX considers all properties (not just the ones sold) and gives weekly insight into real price movement over time, a more accurate and up to date reflection on current price trends.

How to read the RMX The current RMX reference period is 2016, equivalent to 100.0. This aligns property prices with the most recent ABS census data at the time of release.

Prices of housing in Victoria has been on a positive trajectory after the introduction of eased restrictions in mid-May The illustration shows weekly RMX values and highlights the timeline of tightening restrictions in Victoria (grey) and easing restrictions (blue). Data up to week ending 9 August 2020.

130

120

110

100 JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

The price trend for residential homes in the past 12 months appears similar with the same period two years ago The illustration compares same week in previous years. Data up to week ending 9 August 2020.

2020/19

2019/18

2018/17

135

This means that the property price weighted average in 2016 was given a value of 100.0 and price movements over time are relative to this ‘base’ reference period. In simple terms, the current RMX value of 132.3 (9 August, 2020) means that on average, properties in Victoria today are worth 32.3 per cent more than they were in 2016.

Victorian price performance so far this year After the expected seasonal dip around January, the RMX recorded strong price growth across all residential homes. The incline began in February and peaked in mid-March, where the price index was heading into possible new record levels.

At the end of March, COVID-19 restrictions first came into effect. Around this time, the value of homes in Victoria started to gradually decline each week.

26 | THE ESTATE AGENT – AUGUST 2020

132.3

130 125 120

118.4 118.3

115 110 Sep ‘19

Nov ‘19

Jan ‘19

The trend began to change its course following the announcement of first stages of easing restrictions halfway through May. Note: The RMX usually dips in January and July when transaction volumes are typically lower.

The recent reintroduction of stage 4 restrictions for metro Melbourne and stage 3 restrictions for regional Victoria are causing concern over its impact on property value, the latest RMX result

Mar ‘20

May ‘20

Jul ‘20

Sep ‘20

for the week ending 9 August (132.3) suggests prices continue to grow strong for the time being. Monitoring the RMX weekly can give some insight into the scale of impact it may have in the coming weeks.

The impact varies for different regions The latest quarterly median price for houses in regional Victoria showcases its stability, with prices up 0.1% from the previous quarter. Although units contribute a small portion of regional

Data insights Section head Private sales in Victoria recorded the highest median prices in history, for both house and unit House

years ago (2017/2018), during a high growth period in the property market.

For the past seven weeks, the RMX is at a historic high for the end of June to early August period. This can be attributed in part to seasonal dips around July which affect historic results due to low sales activity during the holiday season.

Unit

950k 800k 750k 700k

In Victoria, the price of homes for the past 10 months to August has continued to outperform its value for the same time last year. Despite the disruptions brought about by the pandemic, property prices remain resilient.

650k 600k 550k

Signs that prices of homes remain resilient

500k 450k 2016 Q1

2017 Q1

sales, the median price reached a new historical record of $339,000. The value of units has grown exceptionally, rising by 13.6%, the highest recorded quarterly increase.

Expectedly, prices of homes in the metropolitan region declined over the quarter. However, remains higher compared to previous years.

Private and auction market In Victoria, the value of privately sold homes reached a historical record in the latest quarterly median price release, where houses typically sold for $819,500 and units for $596,500. This is partially attributed to sales of high end homes which were earlier expected to go under the hammer, but were changed to private sale due to COVID-19 restrictions.

Auction sales are more common in metropolitan Melbourne than in regional Victoria. The price of homes sold through auction fell by about 2% over the quarter.

However, price levels are still stronger than last year, up 6.5% for houses to $1,005,000. The value of units sold by auction rose by 7.3Â per cent to $705,000.

House vs. unit A few weeks before COVID-19 restrictions, which started at the end of March, the House Index (132.6) and Unit Index (133.9) reached peak levels for the

2018 Q1

2019 Q1

2020 Q1

year. Compared to historic values, housing prices were at one of the highest points during this time. From this peak price level, the value of houses dropped by 6.6% to its lowest point (House Index of 123.9) during the time restrictions were in effect. The decline only lasted for six weeks before starting to recover from its lowest value.

The impact was deeper and longer for unit prices, which saw a continuous decline over nine weeks before seeing a turn-around. From its peak, the Unit Index fell 9.5% to its lowest point of 121.2.

The latest price index in the week ending 9 August revealed houses recovered remarkably well. The House Index stood at 132.4, among the highest levels historically.

Following eased restrictions the price trend for units had been on an incline, the re-introduction of tightened restrictions had disrupted its recovery for several weeks, however the Unit Index has recorded rises in value in the latest two consecutive weeks to 9Â August climbing to 128.7.

Overall, the price trend for homes in Victoria have been on an incline for more than two months. The RMX stood at 132.3 in the week ending 9 August, up 11.8% compared to same time last year, and 11.7% higher than two years ago.

On average, properties in Victoria today are worth 32.3 per cent more than they were in 2016, prices are currently at some of the strongest levels. Recent results indicate resilience of residential property prices, and the presence of serious buyers and sellers in a restricted real estate market.

Sales volume has remained lower than expected at this time of year, although sales have been increasing for three consecutive months to July, with 8,274 transactions for the month.

According to the REA Group, before the six-week restrictions were re-introduced, serious buyer activity in Victoria was at its highest level for the year. The demand index was at its peak (174.7) with many buyers close to making a purchase decision. However, the demand index has since fallen following tightened restrictions.

Historic comparison of prices

The recent announcement of tightened restrictions across the State may have an impact on property prices over the coming weeks, continue to monitor the RMX to understand the scale of impact.

For the majority of the past 12 months, the price performance for residential properties appears comparable with two

For more information, please visit reiv.com.au/rmx THE ESTATE AGENT – AUGUST 2020 | 27

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Resources Section head

PropertyData subscribers can now access professional, data-based videos that are generated automatically.

Video solutions to stand out With personal contact down to a minimum, online content has become an even more dominant factor in generating interest. Earlier this year, the REIV launched a unique online video solution that would help PropertyData subscribers stand out in a competitive marketplace.

The solution does more than just create professional videos. It supports your brand with reliable, credible data. Market data plays an integral part in real estate business. Whether you are working with a vendor, a buyer, or a potential client; your sales pitch is almost always backed up by data.

Until now, the cost and resources required for professional videos was prohibitive for some and often time consuming.

PropertyData subscribers can now access professional, data-based videos that are generated automatically. Intelligent video solutions that work in the background to generate engaging content for your social media, other digital communications and listing portals like realestate.com.au.

You select the theme that best showcases your listings. Each video includes your listings, high resolution floorplans, relevant PropertyData suburb statistics,

your agent profile including client reviews and additional information like a mortgage estimate from an REIV partner broker.

PropertyData subscribers have experienced exponential growth in their online presence, recording 700% better engagement on Google and 350% increase in email open rates. PropertyData and our video partner, Epik Video, do all the heavy lifting so you can focus on what you do best, listing and selling real estate.

For further illustration on what Epik Video can do for your business, please visit epik.video/realestate Please contact us to know more about how automated videos can enhance your agency profile and brand. Call 03Â 9205 6656 or email support@propertydata.com.au

The Estate Agent – August 2020 | 29

Resources

Victoria Police is the lead agency for the enforcement of laws relating to the sex work industry in the state.

Sex work industry: What landlords and property managers must know The Sex Industry Co-ordination Unit provides subject matter expertise in relation to the sex work industry As a result of the 2010 Inquiry into People Trafficking for Sex Work, the Government made Victoria Police the lead agency for the enforcement of laws relating to the sex work industry in Victoria.

In 2012, the Sex Industry Co-ordination Unit (SICU) was established. The unit provides subject matter expertise in relation to the sex industry and co-ordinates activities between external stakeholders including information sharing between relevant agencies.

The role of SICU is to: • Protect vulnerable people from exploitation within the sex industry; • Act as the central co-ordination unit of 30 | THE ESTATE AGENT – AUGUST 2020

• Enforce the Sex Work Victoria Police to identify Act 1994; illegal brothels and/or Should a landlord • Educate and report on illegal activity associated find themselves in human trafficking. with the sex industry; the situation where • Liaise with their premises The unit is not only stakeholders within the responsible for managing sex industry; have been used the extensive illegal • Co-ordinate and for illegal sexual sex industry, but also strategically manage activity and police monitors the legal sex intelligence and are involved, the industry, such as licensed information on the sex brothels and escort industry in Victoria; consequences can agencies. In doing this, • Identify emerging be serious.

SICU takes a whole-oftrends in illegal brothel government approach activities; and engages with a wide • Develop strategies to range of internal and address identified trends; external stakeholders, • Develop protocols and namely local councils, non-government procedures to facilitate the collection organisations, Consumer Affairs Victoria, and sharing of data and intelligence Australian Border Force, Australian Federal with stakeholders to assist with the Police. The unit also looks to foster greater identification of unlawful activities relationships with external organisations within the sex industry; such as the REIV as a key stakeholder in • Provide subject-matter expertise to investigations involving the commercial other members of Victoria Police and to and residential tenancy sector. stakeholders

Resources One emerging trend in the operation of illegal brothels is the use of Airbnb properties, both in apartments and houses.

Short-term accommodation presents an opportunity for illegal brothels to conduct their illegal activities and move on before being detected by police. This reiterates the need for any information to be passed to police in a timely manner to ensure a quick response.

As is often the case, landlords are not aware of what type of behaviour tenants are engaging in. It should be noted this illegal activity is not limited to Melbourne metro areas but also in regional towns.

In addition to residential properties there has been an increase in the use of hotels and motels.

Should a landlord find themselves in the situation where their premises have been used for illegal sexual activity and police are involved, the consequences can be serious. Police may take the matter to court and make an application to have the premises declared a Proscribed (Illegal) brothel under the Sex Work Act 1994. If the business owner/operator is unable to be located, the landlord will be named as the Respondent in the matter and will be expected to appear at court. This is a civil matter, not a criminal matter.

A successful prosecution will see police place a large notice on the front door of the premises stating it is an illegal brothel.

The declaration notice can be made for an indefinite period of time but can be removed earlier if the landlord applies to the Court to have it removed. Obviously, this can have a serious financial and emotional impact on the landlord (and the Agent) as they will most probably be unable to let the property while the notice is in force.

The following is a list of indicators that illegal activity may be taking place. Agents should keep a look out for and consider these factors prior to or during the leasing of any property: • A prospective tenant paying in cash, often for several months in advance • A massage type business is to be established – not sports/professional type massage • A Google check on the business/ customer mobile takes you to a website offering massage featuring scantily clad females

Short-term accommodation presents an opportunity for illegal brothels to conduct their illegal activities and move on before being detected by police.

• Lack of relevant references • Nil ACN / ABN • Nil evidence of professional massage qualifications • Scantily clad workers • Complaints from neighbours (agents are encouraged to leave business cards with local businesses) • Extended trading hours • Advertising obscuring the front of the business window • Excessive amount of CCTV located internally and externally of the business • Internal doors with locks (legitimate businesses should be open plan with curtains separating customers) • Vague answers to probing questions.

In conclusion, agents can also check with their local Council Planning Departments to determine any restrictions they may have on how massage shops should present their business. For example, some councils do not allow front windows to be totally blocked out with advertising.

Once an agent knows the local planning restrictions, this can be used as a tick list during inspections.

If you have concerns that illegal activity is taking place, please contact Crime Stoppers on 1300 333 000 or at crimestoppersvic.com.au Article contributed by Victoria Police, Sex Industry Co-ordination Unit (SICU) THE ESTATE AGENT – AUGUST 2020 | 31

Resources

It makes sense to pay a little attention to superannuation now, so you can make the most of it over the long-term.

Four ways to improve your super Take action now to make a noticeable difference to how you retire Super’s a lot like property – the more attention you give it, the more likely it will grow.

Here are four simple things you can do today that could help improve your super and make a noticeable difference to how you retire.

1. Check your contact details It doesn’t sound important, but if you can’t be contacted when legislation changes, you might miss out on important information.

When it comes to email addresses, our tip is to supply your personal email address, rather than your work email, that way your super fund can continue communicating with you even when you 32 | THE ESTATE AGENT – AUGUST 2020

move jobs. Log into your account and update your details and communication preferences.

2. Investment option right for you?

You should choose where your money is invested, and be comfortable with your level of risk.

Tools such as risk profile quizzes will help you understand which investment options might be right for you and your circumstances.

We understand it’s a volatile time for financial markets at the moment, but try not to panic and remember what goes down must come up. Call our helpline 1300 13 44 33. They can help you select investment options that you are comfortable with.

Did you know one of the ways REI Super

supports the real estate industry is by investing in unlisted properties? Unlisted property assets are those investment assets that are not included in portfolios listed on the stock exchange. They are generally not readily available to individual investors. Read REI Super’s latest unlisted property investment update.

3. Give your super a boost Things might be challenging now, however as your situation changes you might want to consider boosting your super by making extra contributions. Whether you make a before or after-tax contribution, any amount can make a big difference to your retirement.

4. Are you properly covered?

As life changes, it’s important to regularly review your insurance to ensure that you still have the right level of cover.

Most super funds usually provide Death, Total & Permanent Disability (TPD)

Resources Section head

Whether you make a before or after-tax contribution, any amount can make a big difference to your retirement.

and Income Insurance cover. REI Super services the real estate industry by offering a unique Income Protection Insurance type which caters for the predominantly commission based industry.

has been inactive for 16 months it is likely that you have lost your insurance. Check your account status today, and if you want your insurance cover to remain ensure that you opt-in to keep your cover.

If you have accessed your super early, and your balance is now less than $6,000, or

Getting on top of your super is really important. So, as we start to reopen our

DISCLAIMER In presenting this information REI Super has not considered any individual person’s objectives, financial situation or particular needs. Individuals need to consider whether the advice is appropriate in light of their goals, objectives and current situation. Members should obtain and read the Product Disclosure Statement for REI Super before making any decisions and consider talking to a financial adviser before making an investment decision. Past performance is no indication of future performance.

businesses and lives, take some time to review your super account. A few small changes now can make a big difference to your future.

Not a member of REI Super? It’s easy to switch to REI Super, now anyone can join.

Head over to reisuper.com.au/switch

This information has been prepared and published by REI Superannuation Fund Pty Ltd ABN 68 056 044 770 RSE L0000314 AFSL 240569. REI Super ABN 76 641 658 449 and RSE R1000412 MySuper unique identifier 76641658449129 for the general information of members of REI Super.

Although REI Super makes every reasonable effort to maintain current and accurate information, you should be aware that there is still the possibility of inadvertent errors and technical inaccuracies. The REI Super Helpline and the REI Super website are provided by Mercer Outsourcing (Australia) Pty Ltd ABN 83 068 908 912 and Mercer Financial Advice (Australia) Pty Ltd (MFA) ABN 76 153 168 293, Australian Financial Services Licence (AFSL) #411766. June 2020.

When was the last time your super was...

Super’s a lot like property - the more attention you give it, the more likely it will grow.

Take our Super Health Inspection to help boost your future at reisuper.com.au/open 1300 13 44 33 | reisuper.com.au REI Superannuation Fund Pty Ltd ABN 68 056 044 770 RSE L0000314 AFSL 240569. REI Super ABN 76 641 658 449 and RSE R1000412 MySuper unique identifier 76641658449129 for the general information of members of REI Super. It does not take into account any member’s individual financial objectives, financial situation or needs. REIS 56780

THE ESTATE AGENT – AUGUST 2020 | 33

Membership

Property Managers rise to challenge Our dedicated colleagues continue to go above and beyond to support both tenants and landlords during the COVID-19 pandemic Over the past few months, the real estate sector has come together and worked hard to continue servicing the community. This continues to be a year of challenges and it is important that we support and recognise the work everyone is doing under difficult circumstances.

Property Managers on a well-deserved coffee break to celebrate and recognise each other.

Property Managers have been at the front line of real estate matters as they endeavour to support both tenants and landlords. Property Managers have gone above and beyond in their duties to serve the community during the ongoing COVID-19 pandemic.

We thank our Residential and Commercial Property Managers for their exceptional efforts.

The REIV was proud to be part of a national day of recognition for the work our Property Managers continue to do during this stressful period.

34 | The Estate Agent – AUGUST 2020

Membership

New members From 1 February, 2020 to 30 June, 2020 we welcomed 316 members to the REIV community. Building new relationships through networking is an important aspect of REIV membership. Please find the time to reach out to the new members.

Ezi Aleixo Elizabeth Alessandrello Mazrooh Shadab Ali Fletcher Anderson Rodney Anderson Rodric Anderson Tiffany Andrew Raman Arun Sween Arya Karen Avallone Andrew Baird Ilham Bakesy Johann Bancilhon Dash Barolli Jess Barr Stephen Baster Melissa Bell Toshit Bhardwaj Sahil Bhasin Manoj Bhoomla Steven Biggins Rebecca Billingham Paul Blain Mark Blaskovic Toni Bloodworth-Barker Victoria Bocchetti Anna Bottomley Rahima Bowyer Andrew Brisk Debra Brough Alvy Buffon Darren Burnham Claire Burt Rod Burton Amanda Bury Donna Bye Brendan Cain Sonia Cammarano Sonia Cannataro Nick Carah Renee Carbery Justine Carlin Lucy Carson Sarah Case Tiffany Chan Julie Chen Cheng Chen Alana Chew Rosa Chik Allen Chitty Wendy Chong Charles Christodoulou Justin Chua Emily Chwyla Danielle Clarke Danielle Clifford Cher Coad Diana Coad Sue Colic Rebecca Collins Melissa Condon Gab Cornwall David Curran Aneesha Dagore

Elyse Damches Alexandra Dando Kristie Davies Roberta De La Torre Jono Deague Elia Defreitas Cheyenne Delamere Therese Dennis Mary Dickson-Kotefski Robert Ding Amy Djuric Melanie Djuric Joanne Docherty Seda Doganay Darren Doyle Robert Dres Michael Duncan Sammy Dutka Jordan Efthimiadis Yashar Egder-Moradi Nat Eisen Rachel El Deir Brittany Ellis Meg Emond Michelle Errichiello Andrew Evans Shaun Evans Cena Farahmand Khalid Farooq Laleendra Fernando Sean Fernando Lina Fichera Belinda Fischer Melissa Foca Maris Fowler Andrew Freeman Lisa Frendo Josie Galati Garry Gale Greg Gannon Bo Gao Kirsty Gardiner Sunny Gill Shane Glanford Kate Goulopoulos Neville Govender Lauren Grant Praveen Gulati Lian Guo Sarah Hall James Hallahan Anita Harrington Pesia Harrison Bec Hazell Lisa Hearn Jack Henderson Naomi Henderson Jenna Heywood Linda Hinh Hien Ho Dave How Joanne Hughes Fatima Dib Ibrahim Tony Ievoli

36 | The Estate Agent – AUGUST 2020

Lloyd Ioannou Yvonne Jackson Lia Jagielka Christian Jenkinson Lea Johnson Dimitrios Kallitsis Julie Kaye Karen Kerr Nick Kerr Hari Khadka Kubir Khanal Ali Khatib Benjamin Klein Jake Kostrzewa Kulbhushan Kulbhushan Rakesh Kumar Jeanetta Laffan Mandy Lai Say Guan Lai Pravinesh Lal Jonathan Lane Louise Lasscock Brennan Latimer Kim Le Stephane Leblond Sally-Anne Lechte Chee Lee Conway Lee Rachel Lee Daniel Leskie Bonnie Levinge Brian Lewin Eric Li Peter Lieu Alise Lim Rachel Lima Jo Lin Taylah Lindsay Alpha Liu Serena Liu Vincent Liu Alan Lobley Gary Lockett Gillian Loft Kelvin Loh Kylie Lok Lauren Lowther Paul Lynch Sweta Malik Daniel Marazita Shelli Martin Carol Masliczek Jeffry Mather Heath Mathias Tim McDermott Casey McDonald Adriana McDonald Lucas McEntee Kerren McNamara Dhaval Mehta Tracey Melville Tanya Menz Paul Merry James Mikulicz

Katie Minchinton Alexandra Mitanis Sally Monro Paul Mulquiney Shivendra Naidu Pramila Naidu Nitesh Narayan Harriet Nash Katrina Nash Laxmi Nijjer Graham Nixon Michelle O’Brien Sally O’Connell Rachel O’Connor Phil Omann Patrick Ong Paul O’Regan Jeanette Otto Jamie Owen Sateesh Palliyil Theo Panay Michelle Paproth Rohullah Paykari Bradley Pearce Nicholas Petreski Amy Pickering Scott Pickering Jeanne Pickering David Pino Madeleine Pizzey Francesco Placanica Jacob Platt Loren Popovits Spencer Porter Ren Potter Karla Poustie Dom Pronesti Andrew Prowse Alicia Puyol Sally Rabbas Christopher Rae Erik Rambingan Justin Reed Nisha Reehal Cameron Reid Mandy Resegati David Robinson Charlotte Roche Jayne Rosevear Baley Row Atul Sama Jack Sammut Danielle Sampson Fran Sanders Harman Sandhu Michael Santoro Deepanshu Sareen Peter Sarmas Roxanne Sarthou Trent Schmidt Adam Schutz Clayton Scott Ritchie Sean Nadine Seller

Vaughan Sexton Rahul Sharma Elise Shaw Louine Shaw David Sheehy David Sia Jimmy Singh Ethan Slater Ruby Smith Bonnie Spottiswood Lisa Stafford Veronica Staniszewska Scott Stekelenburg Rebecca Storey Courtney Sullivan Thushari Sumanasekera Zara Szakiel Marie Tahu Connor Tait Simon Taylor Sally Taylor Hunter Taylor-Ryan Lawrance Teo Charlotte Terray Peter Tesic Belinda Thomas Barry Thompson Callum Thompson Alastair Thomson Brian Tian Erica Toth Maxine Troon Loretta Truscott Nicoletta Tzouroutis Luke Van Der Venne Suzanne Vitagliano Arthur Vlanes Anna Voon Janet Vu Minh Vuong Vikas Wadhwa Sanch Walia Faye Wang Donna Waters Lauren Webster Bailey White Ingrid White Las Widanage Rob Wiederstein Carole Wilson Dean Wilson Gary Woods Daisy Wright Sheree Xie Terence Yeh Cheng Yeoh Yuwei Zhang Garry Zhou Perry Zhou Rosa Zoccali

Membership Section head Milestones

10 years

We congratulate the Members who completed important milestone Membership Anniversaries during the April - August 2020 period.

60 years Bill Appel

50 years Glen Morley

40 years Peter Batrouney John Monahan Peter Stickley

30 years Allan Barry Craig Bell Mark Imbesi Paul Lunardi Stephen Paull Craig Shearn

20 years Mandy Baird Ian Barnabas Justin Barnet Charles Bongiovanni Con Constantinou Mark Dudley Simon Eishold Colin Ibbs Jock Langley Michelle Lanigan Thomas Lee Wayne Millership

Theo Mouratidis Michael Nincevic Leo O’Brien Damien O’Shannessy Jerry Papaluca Catherine Ralph Marcus Rayner James Scoones David Stewart Joel Wald Marie Washington Anthony Webb Peter White

Nick Adamson KD Ahuja Chad Arbid Elvira Bafto Keith Burns Renn Carroll Corene Chan George Chen Sun Chen Eric Cheung Anthony Cimino Mark Clyne Lorry Colussi Singh Dandiwal Andrew DeSanto Jade Diep Mark Di Giulio Tanya Di Loreto Andrew Dufty Georgina Dungey Charles Emmett Ingrid Filmer Lisa Fitzpatrick David Gargaro Thomas Georgiou Matthew Gilbee Stewart Grigg John Hadley Amanda Haimona Hagan Haimona Ashleigh Hall Sonya Hancock

Jonathan Hayden Richard Hulls Guy Iacona Terry Karoutsos Daniel Kon Joe Ledda Carole Lenander Harry Li Leo Mancino Ash Marton Stephen McHenry Joe McKenzie Mike Muncey Charles Nguyen Peter Ongarello Upali Panangala Michael Passarella Joe Perillo Sue Potts Rosa Romano Richard Rose Tom Ryan Mina Saad Robyn Schrader Rong Shi John Sier Andrew Stone Stuart Svec Eddie Van Pamelen Peter Vigano Nick Warren Angela Wu Michael Zimbler

SIGNED, SEALED AND DELIVERED. now available on VicForms.

Custom built for Victoria and reviewed regularly, REIV VicForms are compliant, current documents that Members can use with confidence.

• No additional charges for digital signatures (DocuSign) • No set up fees • No ongoing subscription fees. Only pay per form completed and downloaded

Contact vicforms@reiv.com.au to get started.

The Estate Agent – AUGUST 2020 | 37

In memory

Remembering those we have lost Katie O’Dwyer

Peter Hay

Katie started at McLaren Real Estate in 1995 as a receptionist and quickly moved into Property Management, soon becoming the Head of Property Management.

When McLaren Real Estate was sold to Nelson Alexander in 2014 Katie became a partner in the business. Highly regarded in the industry, Katie was an integral part of the REIV Property Management Chapter for many years.

A highly regarded valuer, mentor and guide to many, Peter was the Founder of Hay Property Group, established in 1961. Peter was a Fellow of the API (Valuer & Land Economist) and Associate of the Real Estate Institute of Australia (AREI).

1975 – 2020 REIV Member for 14 years

1959 – 2020 REIV Member for 30 years

Peter Hancock

1931 – 2020 REIV Past President 1977 - 78 REIV Member for 60 years Peter Hancock, former President of the REIV 1977 and 1978, passed away on 17 May, 2020.

Peter started his career as an Estate Agent in 1950, when he joined the firm A.E. Hancock, which had been founded by his father in Camberwell in 1922.

Peter completed his studies in Real Estate and Valuations at RMIT and received certification as a Victorian Valuer in 1957, from the Commonwealth Institute of Valuers in 1961 and became a Fellow of the Australian Institute of Valuers.

Peter joined the Real Estate and Stock Institute in 1956 and began roles on the RESI Executive from 1973. In 1976, Peter served as Vice-President of RESI, and between 1977 and 1978 he was the RESI President. He represented the RESI at the International Real Estate Convention in Amsterdam, Holland, in 1977. In 1979, Peter served as Chairman of the Multiple Listing Bureau.

Walter Kastelan on the cover of the Real Estate and Stock Journal in 1980.

Walter Kastelan

1947 – 2020 REIV Member for 40 years An REIV Member since starting his own real estate business in 1979, Walter was a runner-up in the Novice Auctioneering competition. Walter was an Associate of the Real Estate Institute of Australia (AREI). Featured above in the RESI Journal in 1980.

38 | THE ESTATE AGENT – AUGUST 2020

RACV Landlord Insurance.

Peace of mind for your investment properties.

1300 170 883 RACV Landlord Insurance is issued by Insurance Manufacturers of Australia Pty Limited ABN 93 004 208 084 AFS Licence No. 227678. Please consider the Product Disclosure Statement before buying. For a copy call 13 RACV (13 7228) or visit racv.com.au.