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REIANEWS
I ss u e 7 9 : J U N E 2 0 1 8

                                 IN THIS ISSUE

                                 M a r k e t S n a p s h ot

                                 Au s t r a l i a n R ea l Es tat e
                                 P ro f e ss i o n A i ms a n d
                                 O b j ec t i v e s

                                 R ea l Es tat e I n d u s t ry
                                 g e n d e r pay g a p
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Mr Malcolm Gunning
                                                            REIA President

P resident ’ s
report

W e l c ome      Welcome to the June edition of
                 REIA News.
                                                            including the largest decrease of
                                                            17.9 per cent in New South Wales and
From REIA’s                                                 Victoria. The reduction reflects the
                 REIA has just published its Housing
Pre siden t      Affordability Report and Real Estate       changing sentiment in the market and
                 Market Facts reports. This edition of      can be attributed to APRA restrictions
                 REIA News provides a “snap shot” of        on investment loans and more stringent
                 the outcomes. What is coming through       home lending criteria in general.
                 in these reports as well as ABS lending
                                                            This edition also includes an article
                 figures is how the dynamics in the
                                                            on the Pathway to Professionalism
                 market have changed, in particular the
                                                            project which REIA has embarked
                 east coast residential property market
                 has moved relatively quickly from a        on. Through enhanced practice and
                 seller’s to a buyer’s market. In the       culture in the real estate industry
                 three months to end of March 2018          our aim is to become the trusted
                 the number of loans also decreased         real estate adviser and provide a
                 across the country by 16.0 per cent,       high level of consumer satisfaction
                 with falls in all states and territories   not just facilitate a transaction.

                                                            Mr Malcolm Gunning
                                                            REIA P r e s i d en t

                                                                   Follow us on Twitter @REIANational
IN THIS ISSUE MARKET SNAPSHOT AUS TRALIAN REAL ES TATE PROFE SSION AIMS AND OBJEC TIVE S REAL ES TATE INDUS TRY GENDER PAY GAP - REAL ESTATE ...
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IN THIS ISSUE MARKET SNAPSHOT AUS TRALIAN REAL ES TATE PROFE SSION AIMS AND OBJEC TIVE S REAL ES TATE INDUS TRY GENDER PAY GAP - REAL ESTATE ...
N AT I O N A L                            N AT I O N A L
          MARKET                                    AFFORDABILIT Y
          SNAPSHOT                                  SNAPSHOT

Extracted from Real Estate Market Facts   EXTRACTED FROM ADELAIDE BANK/REIA HOUSING
March quarter 2018                        AFFORDABILITY REPORT, MARCH QUARTER 2018

  Quarterly Australian weighted                                     Mar     Dec       Mar
  median house price is $770,086                                    2018    2017      2017

  Quarterly Australian weighted median     Proportion of family income to meet:
  other dwellings price is $593,188        Home loan repayments     31.3%   31.6%     30.4%
                                           Rent payments            24.8%   24.5%     24.7%
Median house prices up:
Hobart 7.2% to $492,000                   NSW     Housing affordability improved
Melbourne 4.4% to $855,000                        in NSW with loan repayments
Adelaide 1.1% to $470,000                         decreasing by 1.3 percentage points
Median house prices down:                 VIC     Both housing affordability and
Darwin 1.6% to $505,000                           rental affordability declined in
Perth 1.9% to $510,000                            Victoria over the March quarter
Sydney 2.6% to $1,150,357                 QLD     Housing affordability improved
Brisbane 2.8% to $515,000                         while rental affordability
Canberra 3.6% to $641,000                         declined in Queensland
Median other dwelling prices up:          SA      South Australia had the largest increase
Melbourne 2.4% to $607,000                        in average loan amount (3.6%)
Hobart 1.7% to $348,000                   WA      Western Australia had improvements
                                                  in both rental and housing affordability
Median other dwelling prices down:                over the March quarter
Sydney 0.5% to $740,041
Adelaide 0.9% to $366,500                 TAS     Tasmania had the largest decline
Canberra 1.6% to $433,000                         in rental affordability
Perth 2.2% to $401,000                    NT      Northern Territory had the largest
Brisbane 5.1% to $393,750                         decrease in the number of first home
Darwin 7.5% to $347,500                           buyer loans over the quarter
                                          ACT     ACT had the largest annual increase
                                                  in the number of new loans (7.1%)
IN THIS ISSUE MARKET SNAPSHOT AUS TRALIAN REAL ES TATE PROFE SSION AIMS AND OBJEC TIVE S REAL ES TATE INDUS TRY GENDER PAY GAP - REAL ESTATE ...
T he A ustra l ian R ea l E state
P rofession A ims and O b j e c tives

The Real Estate Institute of       The purpose of the scheme is:           • To create an environment
Australia is in the process of                                               where Professional Agents are
                                   • To raise the bar on ethics and
                                                                             considered as Trusted Advisors
creating a National Professional     practice standards for the
                                     betterment of consumers               • To hold Professional Agents
Standards Scheme for the Real                                                accountable to their standards
                                   • To transform the service experience
Estate Industry.                                                             and commitments
                                     to exceed consumer expectations
                                                                           • To show Agents there is a better
                                   • To become more valuable and
                                                                             more collaborative way, the
                                     relevant in a rapidly changing
                                                                             Pathway to be a Professional
                                     world whilst still retaining the
                                     emotive human element                 • To create the blueprint for
                                                                             a thriving career in a new
                                   • To set new education standards
                                                                             transparent and evolved era
                                     to meet the required skill
                                     levels of our clients’ needs          • To see Industry Associations
                                                                             guiding Professional Agents on
                                   • To address and influence
                                                                             the way to service innovation
                                     regulatory creep caused by
                                                                             and consumer care.
                                     poor consumer experiences
                                   • To provide Professional Agents        Please see P2P website for further
                                     with a readily identifiable           details and register your interest.
                                     consumer “mark” for personal
                                     and community credibility
IN THIS ISSUE MARKET SNAPSHOT AUS TRALIAN REAL ES TATE PROFE SSION AIMS AND OBJEC TIVE S REAL ES TATE INDUS TRY GENDER PAY GAP - REAL ESTATE ...
This article is brought to you
                                                                           by Mr Malcolm Gunning
                                                                           REIA President

Real Estate Industry
on Pathway to
Professionalism

Real estate agents across        “On behalf of its member Real Estate      “This scheme will not be for all
Australia are taking steps to    Institutes, REIA has applied to the       agents as only those prepared to
                                 Professional Standards Authority          raise the bar on their own standards,
be recognised as a profession
                                 for admission as a profession,” REIA      skills, education, performance
which will see benefits to the   President Malcolm Gunning said.           and commitments will qualify.”
consumer, according to the
                                 “The Authority is an independent          Mr Gunning said as a result there
Real Estate Institute of
                                 statutory body established with           will be two types of practitioners;
Australia (REIA).                specific responsibilities under           real estate professionals who are
                                 professional standards legislation        members of the scheme and those
                                 for assessing and approving               outside the rigors of the scheme.
                                 applications for, and supervising
                                                                           “Consumers will have a clear choice
                                 the application of, Professional
                                                                           between a valued professional
                                 Standards Schemes,” he said.
                                                                           and the low cost listing services
                                 “For those agents wishing to pursue       entering the industry and they will
                                 a professional path, education and        be able to determine the value
                                 training standards will be raised far     and effectiveness of both when
                                 beyond those currently required for       they come to sell their property.
                                 regulatory purposes which will result
                                                                           “It is expected that state and federal
                                 in significant consumer benefits.
                                                                           Governments across Australia will also
                                 “REIA is completing four distinct         welcome the move as has already been
                                 and demanding phases as part of           documented in the NSW Parliament.
                                 the process which is expected to be
                                                                            “We are forging a new
                                 finalised by the end of 2019,” he said.
                                                                           direction for the industry, and
                                 Mr Gunning said in addition there         as a result better experiences
                                 will be a uniform robust code of          and outcomes for property
                                 ethics that participating professionals   consumers,” Mr Gunning said.
                                 will need to adhere to and a set of
                                                                           For more information on the
                                 auditable accountability commitments
                                                                           program visit: reip2p.com.au
                                 to maintain membership.
                                 “Individuals will need firstly to be
                                 members of their state Real Estate
                                 Institute and then pass rigorous
                                 tests to achieve recognition.
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This article is brought
                                                                                           to you by Zoe Arthur
                                                                                           Senior Partnerships
                                                                                           Adviser

                 R ea l E state I ndustry
                 gender pay gap
                 rea c hes re c ord high

The Real Estate Industry has one of the highest gender
pay gaps in Australia, according to the latest data from
the Workplace Gender Equality Agency.

The Workplace Gender Equality                Identifying blockages that prevent            strategies or policies on remuneration
Agency’s (Agency) 2016-17 data               women from rising to the top can lead         and there was a rise of almost
shows that women in the industry             to better outcomes for all employees          11 percentage points in employers
earn on average 41 per cent less             and help improve the business bottom          analysing their data for pay gaps.
than men a year, a figure that has           line. Research shows that gender
increased year-on-year from 2013 and         equality is important for workplaces          Improving gender equality will not
is almost double the overall average         not only because it is ‘fair’ or ‘the right   happen accidentally, and like any
gender pay gap of 22 per cent.               thing to do’ but also because it can          other business issue, a strategic and
                                             improve organisational performance            systematic approach is required. A key
This large gender pay gap is fuelled
                                             and help attract and retain top talent.       starting point for many organisations
by a lack of women in leadership
                                             Research by McKinsey examined 366             is through annual reporting to the
positions across the industry. Women
                                             companies across Canada, the UK               Agency. The Agency also has range of
make up 50 per cent of the workforce
                                             and the United States and found that          tools and resources to help employers
but only account for 22 per cent of
                                             companies within the top quartile for         on our website: www.wgea.gov.au.
key management personnel. This
                                             gender diversity were 15 per cent more
figure drops off even further at the
                                             likely to have higher financial returns       The Workplace Gender Equality
CEO level with men holding 91 per
                                             than their national industry medians.         Agency is a federal government agency
cent of top positions. The data shows
                                                                                           charged with promoting and improving
that women dominate lower paid               Australian employers are increasingly
occupations in the sector, such as           realising the benefits that gender            gender equality in the workplace. Non-
clerical and administrative roles. The       equality can bring and prioritising           public sector organisations with 100
female talent pipeline in the industry       gender pay equity as a business               or more employees are required to
appears be blocked – Real Estate             imperative. In 2016-17, over half of          report to the Agency annually against
Agents, it is time to call in the plumber!   reporting organisations have formal           a range of gender equality indicators.
IN THIS ISSUE MARKET SNAPSHOT AUS TRALIAN REAL ES TATE PROFE SSION AIMS AND OBJEC TIVE S REAL ES TATE INDUS TRY GENDER PAY GAP - REAL ESTATE ...
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 14 October               15 October                16 October
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 6pm - 7:30pm              10am - 7pm                10am - 5pm

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Industry Update
Industry news from around Australia

Reforms signal positive change             In fact this career path progression for        could not be possible without the NSW
for Real Estate Profession                 those involved in the areas of advice           Real Estate Reform package raising the
                                           and negotiation is singularity the most         bar to a new Industry wide height to
John Cunningham, Immediate
                                           significant part of the reform package.         enable the professional standards bar
Past President, REINSW
                                           Anyone desiring to progress their career        to be raised even higher. For further
Some of the most important reforms         must within four years of obtaining             information in regard to the reforms
to real estate practice in over 30         their certificate of registration complete      go to www.reinsw.com.au/reforms.
years will be introduced in New            the balance of units required for the
South Wales in July of this year.          Cert IV. This will result in better trained,    Source: The Real Estate Institute
                                                                                           of New South Wales
The overwhelming need for positive         more highly skilled and more capable
change in our regulatory environment       participants in the industry and that is
was identified over 10 years ago when it   the outcome REINSW set out to achieve.          Update on Rebate Statements
was becoming evident that the Federal      We saw that the better the education,
Government’s desire for increased                                                          There has been an announcement
                                           ongoing training, skills and standards the
competition in various industry sectors                                                    by government recently on the issue
                                           better the performance of our people
was starting to have negative impacts.                                                     of rebate statements. This has come
                                           and the better the experiences and
                                                                                           about because of some very recent
The opportunity to rort the system by      outcomes for property consumers.
                                                                                           discussions and correspondence between
unscrupulous training organisations was    The reforms will be far reaching including
                                                                                           our CEO, Gil King, the Government
resulting in an abundance of providers     new disclosure requirements and the
                                                                                           and Consumer Affairs Victoria.
ripping off the system and producing       introduction of the new licence class
either incompetent or incapable students   of Licensee in Charge a new education           The Government has advised that it
with the necessary qualifications but      standard will be set. This class will require   will amend the Estate Agents Act 1980
without the necessary skills to do the     a Diploma qualification and as a result         to protect agent commissions after
required jobs. Real Estate was right in    a new course has been developed with            contracts with incomplete rebate
the thick of this environment and the      the desire to build business skills for         statements were used. The Government
results are still being seen today.        business owners. Better run businesses          is taking action to ensure estate agents
                                           mean better run teams and better                who have followed their regulatory
The reforms being implemented on
                                           consumer experiences and outcomes.              responsibilities in good faith are paid
1 July 2018 hope to address that by
                                                                                           for the work they performed.
bringing more stringent course content,    This new qualification will also mirror
with increased units for certificate       the impending professional standards            This announcement will have the effect
of registration courses and a focus        program to finally create a uniform             of stopping all claims on foot as well as
on foundation knowledge that will          set of standards for the industry in            any future potential claims against the
enable students to then progress their     Australia under a Federal Government            REIV or its members. This is an excellent
careers in both sales and property         recognised Professional Standards               result for the REIV, its members and the
management and progress to their           Scheme that will see our industry finally       real estate profession and a significant
licence Cert IV qualification.             achieve professional status. This step          win for the REIV. The legislative fix being
                                                                                                                     »» article continues
Industry Update
Industry news from around Australia

»» continued

worked through is likely be introduced          “It’s always up to the agent, in consultation
into parliament in the next few weeks.          with the vendor, to choose the most
Should you have any questions, please           appropriate method of sale for each
contact the REIV on 03 9205 6666                property – REBid simply offers another
during business hours.                          option to choose from” they said.
Richard Simpson, President, REIV                REBid has been developed by an
Source: The Real Estate Institute of Victoria   Adelaide-based company, REBid Pty
                                                Ltd, whose founders combine both
REIs in WA and SA support online                property and technology experience.
real estate sales platform                      REBid CEO, Bill Waterhouse, said “In an
A new online sales platform for real estate     era when people do just about everything
agents is being supported by the Real           online, we thought it was time for real
Estate Institutes in Western Australia          estate to also embrace the digital age.
(REIWA) and South Australia (REISA).            But we also know that buying and selling
                                                a house is usually the biggest financial
The platform, REBid, has been designed
                                                transaction most people undertake,
to be used by real estate agents, while
                                                so the role of the real estate agent is
offering benefits to both buyers and sellers.
                                                critical – that’s why we’ve set out to
Neville Pozzi, CEO of REIWA, said               work with the industry, not disrupt it.”
“All industries need to embrace new
                                                REBid was launched at AREC 2018
technologies or they face the risk of
                                                on the Gold Coast on 27-28 May.
digital disruption from outside. At
REIWA we have partnered with REBid              Source: The Real Estate Institute
                                                of Western Australia
to offer an online solution that’s not
only beneficial to our members, but
also enhances the customer experience
for the real estate buying public.”
Greg Troughton, CEO of REISA, said “Best
practice and professionalism are a major
focus for our members, so we’ve partnered
with REBid because the transparency of
the online sales transaction enhances
the integrity of the sales process.”
Both Pozzi and Troughton agreed REBid
offered an alternative method of sale that
would suit some, but not all, properties.
Professional indemnity claims:
A real risk for real estate professionals
When you’re focused on racing to property inspections, managing tenants and negotiating contracts,
professional indemnity risk is probably the last thing on your mind. But the reality is that these
everyday real estate scenarios can expose you to risks that could lead to a compensation claim.

Professional Indemnity insurance can act as a safety net to provide protection from the costs
associated with any claims, including legal costs and any damages awarded.

If you would like to find out more or discuss your insurance needs,
please contact Aon today.

1300 734 274
au.realestate@aon.com
aon.com.au/realestate

  * Conditions apply. For full policy wording please contact 1300 734 274. © 2018 Aon Risk Services Australia Limited | ABN 17 000
  434 720 | AFSL 241141. This information is general in nature and should not be relied on as advice (personal or otherwise) because
  your personal needs, objectives and financial situation have not been considered. So before deciding whether a particular product
  is right for you, please consider the relevant Product Disclosure Statement or contact us to speak to an adviser. AFF0987 0618
G o ing , g o ing , g o ne: D o n ’ t
            l et professiona l indemnity
            risk ruin your business

When you’re focused on racing to              property – this could be due to a          the wording and accuracy
property inspections, managing                tenant skipping town without paying        of information supplied by
tenants and negotiating contracts,            their rent, or causing malicious           vendors or Landlords
professional indemnity risk is                damage to their rental property.         • Implement policies, training and
probably the last thing on your             • Employment Practices Liability:            procedures for staff including
mind. But the reality is that these           EPL claims arising from outgoing or        social media and email policies
everyday real estate scenarios can            current employees. These can be          • Be proactive to staff matters
expose you to risks that could lead           very costly -  proven Unfair Dismissal     involving bullying or harassment,
                                              claims can lead to payment of up           and seek immediate advice
to a compensation claim – causing
                                              to 26 weeks salary, and claims             from your broker or Insurer
financial and reputational harm to
                                              relating to bullying, underpaying          if an issue arises
you personally, and to the business           and sham contracts are uncapped.
you’ve worked so hard to build.
                                            • Personal injury: Claims arising from     Protect your finances, your
Despite your best efforts to provide          a client or employee being injured       business and your livelihood
a quality service to your clients, the        at your workplace or anywhere you
reality is that mistakes can happen. It’s     do business, including property          Even if you implement all the risk
therefore important to be aware of the        inspections and auctions.                minimisation strategies, accidents
risks involved with your line of work, so                                              and mistakes can still happen.
you can put steps in place to help avoid    How can you prevent                        That’s where Professional Indemnity
them and ensure that you’re protected       falling victim to a claim?                 insurance can act as a safety net to
                                                                                       provide protection from the costs
with the right insurance cover.             While it’s important to be aware of        associated with any claims (including
                                            the risks impacting your professional      legal costs and any damages awarded).
The top risks facing real                   practice, it’s even more important to be   With cover options tailored to the
estate professionals                        diligent and put steps in place to avoid   unique requirements of real estate
Some common risks and claims                or minimise them. We’ve compiled           professionals, Professional Indemnity
relating to professional indemnity for      some tips to help minimise some of         insurance provides peace of mind
real estate professionals include:          the most common real estate risks:         and security – so you can keep
• Misrepresentation: Disputes arising       • Complete thorough                        focusing on what you do best.
  when the purchaser feels they have          and regular property
  been misled by advertising – such           inspections with supporting              We’re by your side
  as describing a property with 4             documentation and photos
                                                                                       To learn more about minimising risk
  bedrooms (instead of 3 + study)           • Implement electronic systems
                                                                                       or to discuss your insurance coverage
• Mismanagement: Rental property              to ensure timely follow ups of
                                              properties and maintenance               please contact Aon on 1800 466 894.
  mismanagement claims occurring
  when a Landlord incurs costs due          • Ensure the accuracy of
  to a loss of rent or damage to              advertisements by vetting
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Photo: The Vietnam National Convention Center by Vu Long.

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* Connect with global influential industry leaders: builders, developers,         Registered Through May 31, 2018
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* Experience Vietnam’s culture and hospitality

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  info@IREC2018.com                 www.IREC2018.com                                     Host         Strategic Partner
Political Watch
Information and news from government

Business losses to scams up 23%             “With employment and investment             “The total dwellings series has been
                                            scams, scammers offer services commonly     relatively stable for the past eight months,
Scammers swindled nearly $4.7 million       used by businesses such as web page         with around 19,000 dwellings approved
from Australian businesses in 2017          development, search engine optimisation,    per month,” said Justin Lokhorst, Director
according to the ACCC’s latest Targeting    small business loans and business           of Construction Statistics at the ABS. “The
scams report – a 23 per cent increase       directory listings. The business signs      strength in approvals for houses is being
compared to 2016.                           up to what seems like a good deal but       offset by weakness in semi-detached
                                            quickly discover they receive no service    and attached dwelling approvals.»
The ACCC’s Scamwatch service
                                            and that the offer was not legitimate.”     Among the states and territories, dwelling
received 5,432 reports from businesses
about scams in 2017. Businesses             “It’s vital Australian businesses are       approvals fell in April in Tasmania (3.7 per
that fell victim to scammers lost           aware that scammers are actively out        cent), Victoria (2.3 per cent) and Western
an average of nearly $11,000.               there targeting them and to ensure they     Australia (2.2 per cent) in trend terms.
                                            have strong processes in place to avoid     Dwelling approvals rose in trend terms
“Scammers don’t discriminate and
                                            becoming victims,” Dr Schaper said.         in the Australian Capital Territory
businesses have what scammers
                                            Australian businesses are encouraged        (14.8 per cent), the Northern Territory
want: money. They’ll use a variety
                                            to visit www.scamwatch.gov.au (link         (6.7 per cent), South Australia (1.7 per
of cons to swindle busy workers
                                            is external) to learn more about scams      cent), New South Wales (0.9 per cent)
and it can be very devastating to a                                                     and Queensland (0.7 per cent).
                                            targeting them. They can follow
business’s bottom line,” ACCC Deputy
                                            @scamwatch_gov (link is external) on        In trend terms, approvals for private
Chair Dr Michael Schaper said.
                                            Twitter and subscribe to Scamwatch          sector houses rose 0.9 per cent in April.
Small businesses with fewer than            radar alerts (link is external).            Private sector house approvals rose in
20 staff were most likely to be targeted                                                Queensland (1.6 per cent), Victoria (1.5 per
                                            They can also sign up to the ACCC’s
by scammers and accounted for more          Small Business Information Network          cent) and New South Wales (0.6 per cent),
than 50 per cent of reports to the          to receive emails about new or updated      but fell in Western Australia (0.9 per
ACCC. Businesses were most likely to        resources, enforcement action, changes      cent) and South Australia (0.4 per cent).
be targeted with false billing scams        to Australia’s competition and consumer     In seasonally adjusted terms, total
(1,323 reports), while employment           laws, events, surveys and scams             dwellings fell by 5.0 per cent in April,
and investment scams caused the             relevant to the small business sector.      driven by a 11.5 per cent decrease
most losses at nearly $1.7 million.         Source: Australian Competition & Consumer   in private sector dwellings excluding
“We’ve seen a worrying and dramatic         Commission                                  houses. Private sector houses rose 0.1 per
jump in losses reported to us about                                                     cent in seasonally adjusted terms.
these two scams. False billing scams are                                                The value of total building approved fell
                                            Dwelling approvals fall in April            0.7 per cent in April, in trend terms, and
where a scammer tries to trick a business
into paying fake invoices for directory                                                 has fallen for six months. The value of
                                            The number of dwellings approved
listings, advertising, domain name                                                      residential building fell 0.5 per cent while
                                            in Australia fell by 0.1 per cent in
renewals or office supplies. The scammers                                               non-residential building fell 1.0 per cent.
                                            April 2018 in trend terms, according
are very aggressive and persistent in       to data released by the Australian          Source: The Australian Bureau of Statistics
demanding payment,” Dr Schaper said.        Bureau of Statistics (ABS) recently.
                                                                                                                  »» article continues
Political Watch
Information and news from government

»» continued

New laws better protect                      process with set timeframes for taking         • the date and time of the representation
vulnerable tenants                           action in response to a breach.                • any other information that is prescribed
                                             “What this means is that in those cases          by the regulations (section 73B(2)(a)).
The Government has moved to                  where the ACAT orders a payment                The record of the statement must be
protect tenants and consumers while          plan for overdue rent, the process             kept at a real estate agent’s principal
it continues to consider commercial          for dealing with breaches of that plan         place of business for at least three
alternatives to the traditional bond.        by either a tenant or landlord will be         years (section 73B(2)(b)). A maximum
People renting in Canberra will also have    certain,” Minister Ramsay said.                penalty of 200 penalty units (currently
a more suitable option manage overdue                                                       $22,000) applies for breaching this law.
                                             Source: Gordon Ramsay, MLA ACT Government
payments under new laws passed in
the Legislative Assembly today.                                                             Source: The Real Estate Institute
                                                                                            of New South Wales
Attorney-General Gordon Ramsay said          NSW Fair Trading law crackdown
the amendments to the Residential
Tenancies Act 1997 made these                NSW Fair Trading confirmed at the REINSW       Housing finance, Australia, April 2018
two very important changes to the            Roadshow that they are targeting real
residential tenancy legislation.             estate agents who are not keeping a            The trend estimate for the total value of
“We have reinstated the delay on the use     written record of their conversation when      dwelling finance commitments excluding
of commercial guarantees as an alternative   they are discussing the price of a property.   alterations and additions fell 0.8%. Owner
to a rental bond to give the Government      A REINSW member recently contacted             occupied housing commitments fell 0.1%
more time to consider the implications for   the Helpline and advised us that NSW           and investment housing commitments
Canberra renters,” Minister Ramsay said.     Fair Trading called to enquire about           fell 2.0%. In seasonally adjusted terms,
“We need to make sure that tenants           a property anonymously, before                 the total value of dwelling finance
and consumers continue to be                 turning up at their office the next            commitments excluding alterations
protected under the legislation.”            day to ask for their written record of         and additions fell 0.2%. In trend terms,
                                             their specified price or guide given.          the number of commitments for owner
The legislation also replaces conditional
                                                                                            occupied housing finance fell 1.1% in
termination and possession orders with       What does the law say about
                                                                                            April 2018. In trend terms, the number
a new type of order called a payment         written records?
                                                                                            of commitments for the construction
order to manage overdue rent.                The requirements for written                   of dwellings fell 1.7%, the number
“Conditional termination and possession      records on selling price statements            of commitments for the purchase of
orders were causing a lot of concern for     fall under the Property, Stock and             established dwellings fell 1.0% and
vulnerable tenants, and uncertainty in       Business Agents Act 2002.                      the number of commitments for the
the law was making the process difficult     NSW Fair Trading’s underquoting                purchase of new dwellings fell 0.9%. In
and potentially costly for both landlords    guidelines state a real estate agent who       original terms, the number of first home
and tenants,” Minister Ramsay said.          says the property is likely to be sold for     buyer commitments as a percentage of
“These changes make the process for          a specified price or within a specified        total owner occupied housing finance
managing payment plans much clearer,         price range must make a written record         commitments rose to 17.6% in April
which benefits vulnerable tenants by         of the statement (section 73B(1)).             2018 from 17.4% in March 2018.
ensuring that they have certainty and
                                             The record of the statement must contain:      Source: ABS
have the ability to make a case to the
ACAT about hardship. It also benefits        • the address of the property
landlords by setting out a very clear        • the price or price range
F I A B C I N ews

                                                                          Samantha Payne
                                                                          P resident, F I A B C I
                                                                          Au s t r a l i a

FIABCI was founded in           The Australian Chapter of FIABCI          FIABCI’s active involvement with other
                                was founded in 1970 with its current      Worldwide Real Estate Industry related
1951 in Paris and exists in
                                Principle Members being REIA and          groups and the level of respect that
all continents representing     REIV. Having been an active member        FIABCI deservedly commands makes
40 Professions of the Real      of FIABCI for several years, to be        being a member a priceless. I would
Estate Industry. FIABCI         provided with the opportunity to          recommend every Australian Property
provides access and             take on the role of President of          Professional to become a member
                                FIABCI Australia was a great honour.      of FIABCI no matter what discipline,
opportunities for real estate   Australia is a large sparsely populated   age or nationality, it is a Global
professionals interested in     country and as such, the wealth that      Property ‘Family’ and has proved
gaining knowledge, sharing      being a member of FIABCI comes            invaluable to me and my Business!
information and conducting      not only from being able to contact,
                                network, learn and do business with
international business                                                    To join, please visit the FIABCI website
                                Property Professionals from all over
with each other. With           the world but even down to within
members in 65 countries,        other States across Australia.
including 87 professional       From the moment I joined FIABCI, I
associations and 79 academic    have gained not just knowledge but
institutions, FIABCI is         fantastic business relationships and
                                more importantly like-minded friends
the most representative,
                                all over the world and have been
non-political real estate       made to feel very welcome wherever
organization in the world and   I have travelled within the FIABCI
holds special consultative      network. Wherever you visit, there
status with the Economic        is always a FIABCI member who will
                                be happy to welcome you to their
and Social Council (ECOSOC)     country and offer their hospitality to
of the United Nations.          you, your friends and your family!
Secure your ticket and put the date in your calendar for Australia’s
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The agility of small businesses provides our society with the capability
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•   Women in business                       betterment of our small business people.
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The World
 Property news from around the world

                                              and are able to act on these before             on foreigner property investors and
                                              other investors are even looking”.              rapid capital appreciation over the past
                                              To help Australian property investors           12 months makes Germany one of the
                                              get ahead, Charles shares his                   most lucrative destinations within Europe.
                                              predictions for the next top five               A growing number of start-ups and new
                                              international property hotspots:                business is fueling population growth in
                                                                                              Berlin, as it increased by over 300,000
                                                                                              between 2005 and 2016 and is predicted
                                              Manchester (England)
                                                                                              to increase by another 400,000 new
Charles Pinckney                              Compared to London, Manchester’s                residents by 20302. New construction in
Managing Director, CityYield                  market is undervalued and has significant       Berlin is lower than in any of Germany’s
                                              potential for uplift. This is due to the fact   other major cities, and with population
Expert predicts the next                      that they have a number of upcoming             growth outlined above driving housing
international property hotspots               projects to support regeneration                demand, prices are responding positively
                                              and economic growth. These include              as expected and are predicted to continue
Research reveals that 1 in 2 Australians
                                              The Manchester Airport which is                 to do so. The €5.3 billion investment into
would choose to purchase investment
                                              undergoing a dramatic £1 billion-               the Berlin Brandenburg Airport is also
properties overseas, and from those
                                              pound transformation, the 50 billion+           scheduled to open in 2020 bringing with it
respondents, 50% would prefer to
                                              High Speed Rail 2 (HS2) project which           direct flights to global cities and opening
purchase overseas compared to buying
                                              will connect London and the North               up Berlin as a central business destination.
locally if they had the funds, information,
                                              of England, a £350 million major new
tools and resources to do so1.
                                              Metrolink extension and a £1 billion            Edinburgh (Scotland)
Charles Pinckney, Managing Director of        expansion of MediaCityUK (phase 2)
CityYield a premiere global agency that                                                       A high quality of life, affordability and
                                              which is set to double the size of a
specialises in the sale of investment                                                         competitive cost base make Edinburgh
                                              rapidly growing sector in Manchester.
properties – says, “Investing overseas is                                                     an attractive choice for property
                                              Manchester is also one of Europe’s              investors. House prices have been
an ideal way for Australians to enter the
                                              largest student populations with the            soaring over the past 18 months, and
property market as investors can earn
                                              highest retention rate post-graduation,         have only slowed due to an increase in
higher returns and build a profitable
                                              therefore increasing rental demand. In          properties available on the market.
portfolio. With international property
                                              order to retain these skilled workers,
becoming more accessible and popular                                                          Edinburgh is the busiest international
with everyday Australians, finding            iconic British brands including the
                                                                                              hub in Scotland and has the strongest
lucrative opportunities and acting fast       BBC and ITV studios have relocated
                                                                                              economy of any city in the UK outside
is even more crucial than ever”.              parts of their operations to this City.
                                                                                              of London. Their business focused
Charles continues, “At CityYield, we                                                          ecosystem, highly skilled workforce and
                                              Berlin (Germany)
use our extensive partnerships, expert                                                        strong reputation for start-ups pushes
knowledge and innovative technology to        The continuous regeneration of key              the population of Edinburgh up, and
identify valuable trends for our clients      German cities, lack of restrictions             subsequently housing demand. They

1 Analysis by WorldFirst 2018                                                                 2 Institute for Economic Research (IW)

                                                                                                                         »» article continues
The World
 Property news from around the world

»» continued

are also making improvements to their           place to buy in the US at this stage.4
public transport network as Waverly             Their home prices also increased 9% in
Station currently has over 20 million           2017 and rental value went up by 8%
users per year, making it the largest           in 2016 alone, offering strong yields
British train station outside London.           to investors. Aside from this, Orlando
                                                has a strong technology hub and is the
Tokyo (Japan)                                   base of several businesses in the film,
                                                television, and video game industries.
With a strong capital appreciation, stable
                                                Charles concludes, “With Australian
rental yields, a weakening yen, and the
                                                properties being inaccessible for
upcoming 2020 Olympics, the Tokyo
                                                a majority of investors, it is crucial
property market is an attractive choice.        that investors leverage the power of
Although Japan as a whole is facing an          international property in order to increase
aging population crisis, the 5 central          their chance of success. With services
wards of Tokyo recorded increases in            available to predict hotspots and offer
population ranging from 16% to 54.7%            advice every step of the way, there is no
since October 2010. Rental yields in Tokyo      longer a reason for Australians to fear
are also more favorable in comparison to        international property investment”.
other Asian countries, sitting at 3.5-4%.3      CityYield is a premiere global agency
As a result of its positive yield spread        specialising in the sale of investment
between real estate assets and the cost         property for rental yield across leading
of capital, Japanese banks generally            international markets. By helping non-
lend real estate at low interest rates.         institutional investors find, analyse and
                                                acquire properties for rental yield around
Orlando (USA)                                   the world, they are revolutionising
                                                international property investment.
The strength of the US dollar and high
degree of economic stability adds an
increased level of safety to a property
portfolio. Orlando homes are still grossly
undervalued as they have taken time
to recover from the property crash,
suggesting a healthy potential for capital
growth. A perfect combination of job
growth (7.1% job growth over the past two
years), population growth (7.6% population
                                                4 https://www.forbes.com/sites/
growth over the last three years) and             samanthasharf/2018/02/01/best-buy-cities-where-
affordability places Orlando as the               to-invest-in-housing-in-2018/#19a536c1298b

3 https://coown.world/city-guide-tokyo-japan/
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