SPEAKING OUT ABOUT REAL ESTATE IN THE ACT - THE PERFECT STORM - REIACT
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ISSUE 23 . APRIL 2021 SPEAKING OUT ABOUT REAL ESTATE IN THE ACT
REAL ESTATE
VOICE
THE PERFECT STORM ACAT STELLAR YEAR
Record breaking Update on ACT median now
suburb sales endorsement $750,000
applications
2 REIACT . Real Estate Voice . Issue 23 . April 2021
REIACT BOARD 2020–21
COMMITTEE STRUCTURE President Hannah Gill
2020–21 P 6209 1409 . M 0438 247 898
E hannah@thepropertycollective.com.au
Property Management
Craig Bright
Professional Practices Deputy President Stan Platis
Craig Bright / Michelle Tynan / P 6209 1502
Benjamin Grady E stan@independent.com.au
Awards
Stan Platis
Training Treasurer John Faulks
Michelle Tynan P 6264 8000
E john@nexis.com.au
Auction
Peter Walker
Finance
Director Craig Bright
John Faulks
P 6239 4555 . M 0419 394 555
Corporate Governance E craig@brightpartners.com.au
Michael Kumm
Commercial
Guy Randell Director Tom Ellis
M 0412 622 006
E tom@bertramellise.com.au
CONTACT REIACT Director Benjamin Grady
P 02 6274 0959
Phone 0499 881 168 E benjamin.grady@ballawyers.com.au
Email reception@reiact.com.au
Unit 7 - 1 Beaconsfield Street
Fyshwick ACT 2609 Director Sandra Masters
P 6255 3888 . M 0416 121 155
E sandra.masters@ljhooker.com.au
@realestateinstituteofACT
@REIofACT
Director Col McIntyre
www.reiact.com.au P 6294 9393
E col.mcintyre@mcintyreproperty.com.au
Images sourced from Unsplash
Director Chris Wilson
M 0418 620 686
E chris.wilson@creamresidential.com.au
Immediate Past President Michael Kumm
P 6295 9911 . M 0402 943 191
E mike.kumm@belleproperty.com
REIACT . Real Estate Voice . Issue 23 . April 2021 3
CONTENTS
Residential Tenancy 10 Is your business ready for 13 REIA Report 18
Ammendments the effects of La Nina After a near-apocalyptic year, the real
The most recent changes to the La Nina caused significant damage estate industry is once again open
Residential Tenancies Act 1997 (ACT) when it last made its way to Australia for business and moving into a better
came in the form of the Residential in 2010-12 season. And the Bureau of future. The year has kicked off with
Tenancies Amendment Act 2020 (No 2). Meteorology says the impacts associated some big news making the headlines.
These changes strengthened the legal with the weather pattern, such as
framework for share housing in the ACT. excessive rainfall, are expected to persist. Gender Super Gap 21
Did you know that more than 80 per
Allhomes - The Perfect Storm 11 Redundancy Road Map 15 cent of women are currently retiring
A "perfect storm” of economic factors and The fallout from the COVID-19 with insufficient superannuation savings
buyer activity is fuelling record price sales pandemic has resulted in many real to fund a comfortable lifestyle? In fact,
across a number of Canberra suburbs. estate agencies asking questions of how the average superannuation account
There have been more than a dozen to cope with business downturn and balance for women when they retire is
suburbs that have recorded new sales changes in operational requirements. around $80,000 less than the average
benchmarks since the start of the year. for men.
REIACT . ISSUE 23 . APRIL 2021
4 REIACT . Real Estate Voice . Issue 23 . April 2021
Pet Friendly Properties 24 Auction Bidding Tips 30 Three Mistakes with Real Estate 33
Allowing pets to be housed in a rental With auctions being more commonplace, IT can be considered costly, but it is
property is a major decision for landlords nowadays in the ACT, high levels of buyer the decisions made about IT that can
and their property managers. Under confidence in property have prompted be costly. Within 10% of the initial
legislation in the ACT, tenants can keep more spirited bidding at these auctions. project timeline, you are likely to have
pets at the property with the consent of determined 90% of the lifecycle costs.
landlords. Real Estate Training 32
By now you will be aware of the changes Australia's Real Estate and 35
Support to Cut Energy Costs 29 in legislation that came in on 23rd Housing Finance Crisis
The ACT Government’s Actsmart March, 2020. We have had year full Australia, we have a problem – a very
program helps businesses and of changes in legislation, Covid 19 big one. Whether you are an owner-
households in the ACT to save energy legislations changing and updating often occupier or a tenant, this problem
and water. We can help to reduce and a strange market, with lots of twists effects the roof over your head, and it
energy and water bills. Small steps can and turns. is not a COVID creation.
achieve big savings.
REIACT . Real Estate Voice . Issue 23 . April 2021 5
Canberra Airport
6 REIACT . Real Estate Voice . Issue 23 . April 2021
PRESIDENT
FROM THE
I’d like to acknowledge and thank our These committees will help drive
CEO Michelle Tynan, and Rebecca strategic direction and outcomes, and
Elton, REIACT Administrative Manager, while each area is important, training,
for their work over 2020. member services and events are all
high on the Board’s agenda for 2021.
In our November issue, I talked
We know how challenging it can be to
about the opportunities I was hopeful
recruit and retain good people in the
2021 would bring, and it’s fair to say,
industry and we believe the Institute
opportunities have been in abundance.
can play a role in helping make this
Last year highlighted the importance
easier.
of collaboration and innovation. We
were able to achieve things that in Congratulations to Narelle Casey, Alex
the absence of COVID, our market Ah Key, John Minns, Claire Corby,
wouldn’t have necessarily accepted, Rosalie Douglas and Grace Hooper for
but things that became commonplace your appointment to these committees.
very quickly such as remote property
As I am sure you are all aware, there
viewings, remote routine inspections
are several legislative changes on
and online auctions.
REIACT PRESIDENT the radar. The Institute is actively
Hannah Gill I am confident that this appetite for participating in discussions around
innovation and positive change will not these changes, in particular the
only remain but continue to strengthen abolishment of the 26 week no cause
in Canberra real estate. notice to vacate, and the upcoming
Welcome to our first issue of The knowledge and experience of
introduction of minimum energy
Real Estate Voice for 2021. efficiency ratings in rental properties.
our members is second to none, and
by working together, supporting one It is very much a priority to ensure
It seems strange that we are already another and celebrating achievements we have a seat at the table for any
in April; we have passed the one year (with a side of healthy competition, discussion relating to policy which
anniversary for the ACT real estate of course), we will continue to learn, may have unintended or adverse
lock down (Tuesday 24 March 2020 to improve and ultimately deliver a better consequences, further impacting
be exact), and I think it’s important to service to our clients and experience issues around supply and affordability,
recognise the effort and contribution for our people. and as we have more clarity and
made by many in our industry during information, we will be sure to provide
the months that followed. We know that from an Institute
updates.
viewpoint we need to continue to
Here is a snapshot of the work deliver helpful information to our We recently held the President’s
undertaken by the Institute for 2020: members. As a Board, we know breakfast which was a sold out
• 17 new members joined we need to continue to improve event at Hotel Realm. With special
our governance, diversity, scope guests REIA CEO Anna Neelagama,
• The Institute received 456 member of services and better leverage the Jarrod Coysh CEO REI Super and
and public enquiries knowledge and passion our members Chris Richardson from Deloitte
have. Access Economics, the morning
• 53 COVID updates went out to
was engaging and full of relevant,
Principals As such, heading into the new
helpful information. Thanks to our
• 19 COVID e-News updates went out financial year, we are pleased to
event partner, REI Super and to the
to members introduce working committees for the
members who joined us – we received
board. These include: Governance,
great feedback and look forward to
• The Institute had representation at Legal and Due Diligence, Professional
seeing you all at the next one!
48 COVID related ACT Government Standards, Member Services,
consultation meetings and 29 Sponsorship, Events and Training. As always, if we can assist you in any
National REIA Board & CEO COVID way, please don’t hesitate to reach out!
related meetings
REIACT . Real Estate Voice . Issue 23 . April 2021 7
FROM THE CEO
Nationally, we have been heavily The REIACT Annual General Meeting
involved in the federal mandate for has been set down for Thursday, 27th
Automatic Mutual Recognition. This May 2021. Next week you will receive
mandate was intended to remove “red an email communication detailing all
tape and allow ease of movement the information for Board Nominations
for employment”, which, for many for 2021-2022. I ask that you give
industries is achievable as they have this serious consideration and the
national standards, however, for real skill set that you, as an individual, can
estate there is no national standard bring to the Institute. The Institute has
for either legislation or training, so we established seven new Committees,
have implored the ACT Government to commencing 1 July 2021, to
exempt the real estate industry on the enhance and increase the services
grounds of consumer protection. to be provided to Institute members
going forward. All Board members
Locally, we are now participating in
will play an important role on these
consultation with the ACT Government
committees. If you would like further
on a number of proposed changes
REIACT CEO information on the role of a Board
to the Residential Tenancies Act.
Michelle Tynan member, please contact me.
These include; removal of 26 weeks
no cause termination, mandatory Finally, Awards season will soon be
Hot, hot, hot is how all my EER rating, rent bidding and the upon us. On 10th June we will be
right to grow food. To our Property represented by our 2020 REIACT
conversations start these days Management Committee in advance, Awards for Excellence winners at the
and everyone is a property expert. thank you – the work required over REIA National Awards for Excellence
the next six months will be extensive. to be held in Darwin. I would like to
No matter where you are in this great On 3rd March, the Committee met take this opportunity to thank all of our
country we live in, the conversation with the Attorney General in a round nominees for the considerable effort,
is the same, and I’m sure you are all table discussion to advise Minister during a very busy time, to complete
having the exact same conversations. Rattenbury on the “unintended” the submissions for the National
Whilst we had hopes for 2021 consequences for removal of the 26 Awards. On behalf of the REIACT
continuing the recovery after the weeks no cause termination clause. Board and Secretariate, we wish you
year that was, it now seems all the The professionalism and expertise every success in Darwin.
economists share our hope, predicting showcased during that 45-minute
the continuing rise of property sales We can also confirm that the 2021
meeting, with a detailed and data-
and values for at least the next two REIACT Awards for Excellence will
based presentation, implored the
years. So, with this renewed optimism, be held on Saturday, 23rd October
Minister to now seek further guidance
I look forward to being the centre 2021, at Hotel Realm. The REIACT
and consultation for both the removal
of attention at all my future social Auctioneering Championships will
of the 26 weeks no cause termination
gatherings for a little while to come! make their long-awaited return on
and mandatory EER ratings. We will
Wednesday, 1st September 2021
With the first quarter of the year now also be representing our members
with the competition also to be held
done and dusted, here at the Institute in the consultation process for the
at Hotel Realm. Nominations for the
we have been very busy, our attention development of the new real estate
2021 REIACT Awards for Excellence
now focused on advocacy for our training package which must be
will open on Monday 31st May 2021.
members on many fronts. implemented by June 2021.
8 REIACT . Real Estate Voice . Issue 23 . April 2021
NEW REIACT MEMBERS
BASTION PROPERTY GROUP THE PROPERTY COLLECTIVE
02 6176 3426 02 6209 7777
10/285 Canberra Avenue Unit 16, Level 1, 175 Anketell Street
Fyshwick ACT 2609 Tuggeranong ACT 2901
bastionpropertygroup.com.au thepropertycollective.com.au
HARCOURTS PRIME RESIDENTIAL STONE GUNGAHLIN
02 6162 0002 0410 125 475
Unit 3, Cooyong Centre 16A, Stage 2, The Marketplace 33 Hibberson St
1 Torrens St, Braddon ACT 2612 Gungahlin ACT 2912
primeresidential.harcourts.com.au stonerealestate.com.au
JONNY WARREN PROPERTIES TIMOTHY ROAD
0431 797 891 0401 097 568
806/241 Northbourne Avenue Level 1 / 11-17 Swanson Court
Lyneham ACT 2602 Belconnen ACT 2617
jonnywarren.com.au timothyroad.com.au
REIACT . Real Estate Voice . Issue 23 . April 2021 9
CO-TENANCY CHANGES
RESIDENTIAL TENANCIES AMENDMENTS
The stated purpose of the changes • create a framework for managing the
is to facilitate the availability of stable transfer of a co-tenants interest in the
and secure housing in the ACT and to security bond when there is a change
protect parties from unfair practices by: to the co-tenancy; and
• creating mandatory minimum • set out a framework to resolve
Benjamin Grady & Daniel Page principles for occupancy agreements; disputes between co-tenants or
BAL Lawyers disputes between the landlord and
• introducing a security deposit
co-tenants.
framework for occupancy
agreements; and Due to the changes, landlords and
tenants no longer need to ‘restart’
• introducing enforceable conciliation
an agreement upon a change to the
of occupancy disputes.
tenancy and managing agents can move
The changes: forward with greater certainty as to the
role of each party during that transition
• introduce the legal concept of a ‘co-
and their respective obligations. Whilst
tenant’, who has the same rights of
The most recent changes to possession and quiet enjoyment;
the changes aim to provide greater
the Residential Tenancies Act support and representation for tenants,
• create the ability for tenants to be it remains to be seen whether the long-
1997 (ACT) came in the form added to or removed from a tenancy term benefit will facilitate the availability
of the Residential Tenancies agreement (with the consent of the of stable and secure housing in the ACT.
Amendment Act 2020 (No landlord) without the agreement
The Property Team at BAL Lawyers
coming to an end;
2), part of which commenced have extensive experience managing
on 3 March 2021. These • create a framework for managing the rights and obligations of parties to a
the condition of the property (and tenancy agreement. Should you require
changes strengthened the legal
the condition report) as at the advice or further information, please
framework for share housing in commencement of the term, or upon do not hesitate to get in touch with a
the ACT. a change to the co-tenancy; member of the Property Team.
10 REIACT . Real Estate Voice . Issue 23 . April 2021THE PERFECT STORM
‘THE PERFECT STORM’: WHAT’S
DRIVING CANBERRA’S RECORD
BREAKING SUBURB SALES?
Michael Braddon of Blackshaw “Like all storms, they come to pass but
Gungahlin said the capital’s ability to we don’t know how long this storm will
contain the virus well had encouraged last,” he said.
buyers and investors to purchase here.
“The market is going to be dictated by
“There are a number of economic the current economic conditions and
Jessica Taulaga factors that have supported these sales if that stays, the trajectory will remain
Allhomes and, backed by the low supply of houses the same because more buyers are in
for sale and a high demand from buyers, the market and more money is being
it’s created the perfect storm for sellers borrowed.”
and buyers,” he said.
Mr Morrissey quietly broke Curtin’s
“So I’m not surprised that we’ve seen record in February after a house sold for
these strong sales across a number of $2.7 million off-market.
suburbs.”
“If more stock comes to market, prices
Mr Braddon broke the Higgins record in will flatten but there’s no indication of
early March when a house sold under prices declining anytime soon,” he said.
A "perfect storm” of economic the hammer for $980,000.
In the December quarter, Canberra’s
factors and buyer activity is
“We had a lot of people ask us how median house price leapt to a record
fuelling record price sales much it was worth during the open for high of $855,530, up 6.4 per cent over
across a number of Canberra inspections, which we gave, but when the quarter and 9.1 per cent over the
suburbs. we took it to auction, bidders were year, Domain’s House Price Report
willing to pay more,” he said. showed.
There have been more than a dozen In February alone, Mr Braddon met 980 “We entered 2021 with record-high
suburbs that have recorded new sales buyers and that figure has increased this house prices and, in an environment
benchmarks since the start of the year. month, he said. where prices are rising, we would
Domain senior research analyst Dr expect records to be achieved across
“With interest rates being as low as they
Nicola Powell said there were a number Canberra,” Dr Powell said.
have been, getting a loan has been
of factors contributing to Canberra’s easy for house hunters and they’re now “We have record-low interest rates and
stellar selling spree. purchasing out of the fear of missing they're going to be here at least for the
“Ultimately, it’s low interest rates and low out,” Mr Braddon said. rest of this year.
mortgage repayments that are spurring “They're not worried about paying a “The RBA is watching what's happening
buyers to purchase,” Dr Powell said. bit extra now because they're seeing to lending environments and to house
“With the winding back of responsible themselves in a property for a long time.” prices so the market doesn't get over-
lending, borrowers are taking out bigger inflated but I think at the moment, those
loans and are buying properties with Josh Morrissey of Hive Property said
rising house prices will continue and we
more [money] in their back pocket.” that, should these low-rates remain,
will see more records being achieved.”
more suburb records will be broken.
REIACT . Real Estate Voice . Issue 23 . April 2021 11For REIACT members
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12 REIACT . Real Estate Voice . Issue 23 . April 2021INSURANCE
LA NINA MIGHT BE OVER BUT
IS IT BUSINESS AS USUAL?
La Nina caused significant While this year has so far been relatively There is no question that businesses
damage when it last made its tame in comparison, climate scientists have heard time and again about the
have warned that natural disasters importance of preparing when disaster
way to Australia in 2010-12 still pose a threat for Australian small strikes. But many still prefer to take a
season. And while the 2020-21 businesses, including the flood-inducing chance - a choice that can leave them
version of La Nina has likely La Nina climate pattern, which is likely far worse off when the unexpected
to impact Queensland and the rest of comes to pass.
reached its peak, the Bureau of
eastern Australia.
Meteorology says the impacts If your business is yet to draw up a
La Nina caused significant damage protection plan in preparation for
associated with the weather
when it last made its way to Australia in extreme weather events, it's never too
pattern, such as excessive 2010-12 season. And while the 2020-21 late to get started. For those who already
rainfall, are expected to persist. version of La Nina has likely reached its have an existing plan in place, there
peak, the Bureau of Meteorology says is no harm in regularly reviewing and
This time last year, plumes of dark the impacts associated with the weather updating it to better reflect your current
smoke covered Australia with pattern, such as excessive rainfall, are needs and the ever-changing landscape.
bushfires sweeping across New South expected to persist across eastern and
Wales, Victoria, South Australia, and northern parts of the country through to
Even as we farewell summer, the
Queensland. The Black Summer the end of summer and into autumn.
weather dangers associated with
resulted in more than $2.32 billion
When it comes to potentially damaging the season are likely to linger
in insurance payouts, with small and
natural disasters, business owners around for longer. So, don't wait
medium-sized businesses among the
should seek advice on how best to until a catastrophe occurs to find
hardest hit. This was further amplified
manage risks and take practical steps to out you don't have the cover you
by subsequent floods and hailstorms,
prepare. This can help to avoid financial need in place to properly protect
leading to the catastrophe insurance bill
ruin in the case of a damaging weather your business.
surpassing $6 billion.
event, like a flood or cyclone. This starts
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said that an alarming number of affected insurance that is tailored to your needs.
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businesses were either under-insured or
and assets.
had no insurance at all.
REIACT . Real Estate Voice . Issue 23 . April 2021 1314 REIACT . Real Estate Voice . Issue 23 . April 2021
REEF
REDUNDANCY ROAD MAP
The fallout from the COVID-19 For a redundancy to be genuine, the
pandemic has resulted in many following criteria must be met:
real estate agencies asking • The role is no longer required to be
performed by anyone due to changes
questions of how to cope with
in operational requirements; and
business downturn and changes
• The employer complied with its
Bryan Wilcox in operational requirements.
CEO of the Real Estate obligations set out in the relevant
Employers' Federation
What can I do when there’s award regarding consultation and
no longer enough work to go redeployment opportunities.
around? Is redundancy an
option? And how do I safely CONSULTATION OBLIGATIONS
navigate the redundancy
Award obligations require an employer
process? to consult with employees when
redundancies are being considered and
If you’re considering redundancy as
these obligations apply to all businesses,
an option, the most important thing to
big or small. This consultation must
remember is that it’s the position being
occur as soon as possible and prior to
made redundant, not the employee.
any final decision being made about the
A position is redundant where an positions.
employer has reached the conclusion
Consultation involves meeting with all
that they no longer require someone
employees who may be affected by any
to perform that role in the future. The
proposed redundancy. This is relatively
duties of the redundant position will
straightforward in circumstances where
either disappear completely or will be
the redundant position is singular within
absorbed other existing positions.
your business structure; for example,
For example, an employer has where you only employ one Leasing
decided to make the position of Agent in the agency.
Bookkeeper redundant. Why? Because
It becomes more complex, however,
the bookkeeping function can be
where there are multiple employees
outsourced to a third- party supplier.
performing similar roles; for example,
Alternatively, it can be carried out by the
where you have four residential
Office Manager.
salespeople. Let’s assume that you’ve
Because it’s the position, not the made the decision to reduce your sales
employee, being made redundant, it’s team from four to three salespeople. In
dangerous to attempt to disguise the this situation, you are clearly making one
termination of an under-performing position redundant. You need to discuss
employee as a redundancy. If you this situation with all four members
do, the risk of litigation increases of the sales team before deciding
significantly. which salesperson will be chosen for
retrenchment.
REIACT . Real Estate Voice . Issue 23 . April 2021 15If you’re
considering
redundancy as
an option, the
most important
thing to
remember
is that it’s
the position
being made
redundant, not
the employee
So, what does the consultation process opening in the business that the
involve? retrenched employee is qualified
If you’re a member of REEF and
to perform, and you fail to consider
are considering redundancy, we
them for the position.
HERE ARE THE STEPS: strongly encourage you to call the
5. Once you’ve undertaken the initial REEF helpline on 1300 616 170
1. Give notice in writing of the proposed consultation and considered before you commence any action.
changes to all affected employees. feedback, you should make a
definite decision and inform affected
2. As soon as practicable, discuss
employees. If your agency employs Our Workplace Relations Advisors
with the affected employees how
15 or more employees at the time of will step you through the process
the proposed changes are likely to
implementing the redundancy, keep from beginning to end.
impact them and any measures
in mind that there are likely to be
being considered to mitigate that The Real Estate Employer’s
redundancy pay obligations that need
impact. This includes discussing the Federation (REEF) is the real
to be met.
nature of what is being proposed and estate industry’s leading not-for-
the key reasons for consideration of Failure to meet your consultation profit employer and workplace
such proposals. obligations will leave your business relations advisory association. It
exposed to a claim that the employee’s has more than 1700 members
3. Seek feedback from the affected
termination was not a case of genuine and subscribers across Australia.
employees on the proposals and give
redundancy and that it was unfair. Each year, REEF receives
their feedback due consideration.
more than 20,000 calls from
The redundancy process is complicated
4. Consider whether there are any real estate employers needing
and a potential minefield for employers.
suitable redeployment options to help and guidance on matters
Employers should therefore always
other vacant positions within the affecting the employment
seek professional advice about their
agency. While this is unlikely to relationship.
redundancy obligations.
be the case, legal difficulties will
For more information about
arise where there is an employment
joining, go to www.reef.org.au or
call 1300 616 170.
16 REIACT . Real Estate Voice . Issue 23 . April 2021REIACT . Real Estate Voice . Issue 23 . April 2021 17
REIA
REAL ESTATE INDUSTRY SET
FOR STELLAR YEAR
According to our REMF, the December motivated by low interest rates and the
quarter 2020, showed the weighted range of first-home buyer incentives on
average capital city median price for both offer.
houses and other dwellings increased
Seeing this trend in conversion to home
in the Australian residential property
ownership is particularly great news
market.
given the challenges many tenants
Adrian Kelly The weighted average capital city median and investors faced over the pandemic
REIA President price increased by 6.0% for houses and however surging house prices could
by 0.9% for other dwellings. see housing affordability obliterated
unless measures to improve supply are
The weighted average median house
implemented. This particularly applies to
price for the eight capital cities increased
regional parts of Australia.
to $825,205.
The proportion of income required to
At $1,211,488, Sydney’s median
meet loan repayments increased to
After a near-apocalyptic year, house price continues to be the highest
34.8% or 0.9 percentage points.”
amongst the capital cities, 46.8% higher
the real estate industry is once
than the national average. The measure for housing affordability
again open for business and – the proportion of income required to
Perth has the lowest median house
moving into a better future. The meet loan repayments – ranged from
price across Australian capital cities at
year has kicked off with some an increase of 0.1 percentage points in
$490,000. Canberra’s housing price rose
Victoria to an increase of 2.3 percentage
big news making the headlines. by 2% to a median of $750,000 with
points in New South Wales.
other dwellings rising to $560,000.
REIA recently announced a unique new Over the December quarter, housing
Of course, the strong growth has
sponsorship agreement with Australia’s affordability declined in the Australian
impacted housing affordability. The latest
#1 address in property, realestate.com.au Capital Territory with the proportion of
HAR shows that housing affordability
income required to meet home loan
The affiliation of the two key industry in Australia declined nationally in the
repayments increasing to 23.7%, an
leaders represents an exciting phase for December quarter 2020 although,
increase of 1.6 percentage points over
both the REIA and realestate.com.au who overall it improved over the year by 0.7
the quarter and an increase of 1.0
will be utilising and expanding on each percentage points.
percentage points over the past year.
entity’s strengths.
The decline in affordability is largely
New South Wales is the least affordable
We’re predicting that it’s going to be a big attributable to higher house prices and
state, where the proportion of income
year for Australia’s housing sector which larger loans.
required to meet loan repayments is
has already enjoyed immediate recovery
The market defied the doomsday 44.6%.
with median house prices rising across
predictions with median house prices
the country. The Northern Territory is the most
rising across the country in 2020 with
affordable with the proportion of income
REIA has just produced our quarterly demand driven mostly from first home
required to meet loan repayments
Real Estate Market Facts (REMF) and buyers.
21.9%. It is now more affordable to buy
Housing Affordability Report (HAR)
Australian first home buyers increased than rent in the Northern Territory,” he
which show just how resilient Australian
their market share by 50.4% over 2020, said.
real estate has been.
18 REIACT . Real Estate Voice . Issue 22
23 . December
April 2021 2020ACAT
CHANGES TO RENTAL BOND AND
SECURITY DEPOSIT DISPUTES AT ACAT
Kristy Carter or grantor wants the bond or security Referrals from ACT Rental Bonds only
Registrar, ACT Civil and deposit distributed, and why. give ACAT the power to make orders
Administrative Tribunal (ACAT) about the bond or security deposit
If agreement is reached at the
dispute.
conference, ACAT will make orders about
the disbursement of the bond or security If the claim is for more than the bond or
deposit. ACT Rental Bonds will then security deposit, the lessor or grantor will
disburse the bond or security deposit. need to complete and lodge a residential
tenancy dispute application. There is a
If there is no agreement, the matter will
fee for this application (except in special
be scheduled for hearing and ACAT
circumstances). The tenant or occupant
will make directions giving each party a
Recent changes to the law will then be asked to complete and lodge
timetable to prepare for the hearing. The
a response to the application.
have meant some changes directions may require:
to the way the ACT Civil and On the day of the hearing an ACAT
• the lessor or grantor to complete a
Member will consider all of the
Administrative Tribunal (ACAT) Rental Bond Claim form and give it to
documents lodged by the parties, and
handles referrals from ACT the tenant and ACAT. There is no fee
may hear from the parties and their
for this document.
Rental Bonds about rental witnesses. The ACAT member will
bonds and security deposits. • the tenant or occupant to complete a usually make a decision at the end of the
Rental Bond Claim Response and give hearing, or reserve the decision and give
If there is a disagreement about the it to the lessor and the ACAT. There is it later.
distribution of a rental bond or security no fee for this document.
You can find more information, and links
deposit which is referred to ACAT, ACAT • all parties to provide supporting to the forms and other documents, on the
will list the dispute for a conference. At documents, which may include the ACAT website:
least seven days before the conference, lease or occupancy agreement, in-
the lessor or grantor must provide a list https://www.acat.act.gov.au/case-types/
going and outgoing condition reports,
of claims which shows how the lessor rental-disputes/rental-bond-disputes.
quotes, invoices, receipts, a timeline
and/or witness statements.
REIACT . Real Estate Voice . Issue 23 . April 2021 19To assist in
obtaining quicker
and more efficient
outcomes the
ACAT has made
changes to the
endorsement
application
process
UPDATE ON ACAT
ENDORSEMENT APPLICATIONS
the ACAT has made changes to the parties. Only clauses that clearly form
endorsement application process, part of the signed agreement can be
including: considered for endorsement.
• Parties are no longer required to • Make sure the application for
provide a ‘proforma for endorsement’ endorsement:
(a draft ACAT order).
+ shows the name of the lessor and
During the COVID-19 • Generally, applications will be tenant and each party’s contact
pandemic, processing of considered by an ACAT member in details;
applications for endorsement chambers within a month of filing.
+ is signed by the lessor (or their
of inconsistent terms was • If the ACAT member has questions representative) and tenant;
delayed due to staffing about the application, it will be listed
+ attaches a copy of the tenancy
for a short (15 minute) telephone
constraints at the ACT Civil and agreement;
hearing.
Administrative Tribunal (ACAT). + specifies (by number) the clauses
A shorter, simpler endorsement
This has led to a backlog of which are to be endorsed.
application form is being developed.
endorsement applications which Parties can continue to use the current • If the application is made by an
is still being worked through. application form until the new form is agent on behalf of a lessor, ensure a
available. Power of Attorney or Authority to Act
ACAT recognises that where a tenant and for a Corporation is lodged with the
Things that agents can do to assist in
lessor enter into a tenancy agreement application for endorsement.
an application for endorsement being
which is different to the prescribed
determined quickly include: More information about applications for
terms, they will need to know as soon as
endorsement is on the ACAT website
possible which clauses of the agreement • Make sure the residential tenancy
here: https://www.acat.act.gov.au/case-
will be binding. To assist in obtaining agreement has every clause
types/rental-disputes/endorsements.
quicker and more efficient outcomes numbered and is signed by the
.
20 REIACT . Real Estate Voice . Issue 23 . April 2021Many women take
an average of five
years out of the
workforce to care for
children or family
members, which can
cause their super
savings to stagnate
and begin to fall
behind
WHAT IS THE GENDER SUPER GAP?
women to accrue sufficient savings for a
WHY IS THE SUPERANNUATION GAP
comfortable retirement.
SO LARGE?
An estimated 220,000 women miss
As we are reminded in the media, there out on $125 million of superannuation
still remains to be a gender inequality contributions as they do not meet the
when it comes to full-time earnings, with requirement to earn $450 per month
Did you know that more than 80 women earning 18% less than men.~ (before tax) from one employer, as many
This results in further disparity when women work more than one part-time
per cent of women are currently
it comes to employer superannuation job.~
retiring with insufficient contributions, known as super
superannuation savings to fund guarantee. Currently, employees receive
a comfortable lifestyle? In fact, a super guarantee contribution of 9.5% THE FUTURE OF THE WORKING
the average superannuation
of their total salary earnings. If women ENVIRONMENT
are already earning 18% less than men,
account balance for women this gap is also transferred over to their REI Super’s insurance provider MetLife’s
when they retire is around super earned by employers. Employee Benefit Trends Study 2020
investigates the changing face of
$80,000 less than the average Many women take an average of five the Australian workplace landscape.
for men*. years out of the workforce to care for Understanding how to improve
children or family members, which can employee wellbeing is key to helping
There are a number of reasons why
cause their super savings to stagnate employers navigate this new work-life
the super gap is so large, but it doesn’t
and begin to fall behind.~ reality. The study highlights that while
have to be this way. By taking control of
personal finances and pursuing greater When women return to work, they are employers are prioritising the mental
financial independence, this may help more likely to be in part-time or low-paid aspect of their employee wellbeing, right
women feel more confident to enjoy employment. There are an estimated now, financial health is the top concern
financial wellbeing today as well as in 43% of women in part-time work.~ for employees, and plays an especially
retirement. The current 9.5% Superannuation important role in their overall wellbeing,
Guarantee does not enable most and mental health in particular.
REIACT . Real Estate Voice . Issue 23 . April 2021 21SUPERANNUATION
With many working remotely throughout Get the app in three easy steps
2020, it’s to be seen that employers
1. Set up your online account at
are starting to adopt a position in
reisuper.com.au
which roles can continue to be worked
remotely and flexibly, which could 2. Download the mobile app from the
benefit women in the workforce who App Store or Google Play.
have family or caring responsibilities.
3. Login with the username and
Some employers are also offering
password from your online account.
expanded parental leave schemes.
Learn more about Women and Super
These types of workplace changes will
at www.reisuper.com.au/women-and-
help create a positive culture, where
super
employees can confidently feel they
can access these types of initiatives to
* https://www.superguru.com.au/about-super/
maintain a work-life balance, increase women-and-super
productivity and not compromise their
~ https://www.womeninsuper.com.au/content/the-
careers and finances, thus alleviating a facts-about-women-and-super/gjumzs
superannuation gap.
Disclaimer: The information contained in
this article does not constitute financial
product advice. However, to the extent that the
WHAT NEXT? information may be considered to be general
financial product advice, REI Super advises that
Take control of your finances by REI Super has not considered any individual
following our simple steps and join our person’s objectives, financial situation or
particular needs. Individuals need to consider
community of financially empowered whether the advice is appropriate in light of
women in real estate. It’s easy to get their goals, objectives and current situation.
started. Members should obtain and read the Product
Disclosure Statement for REI Super before
making any decisions. REI Superannuation Fund
Pty Ltd ABN 68 056 044 770 AFSL 240569.
MANAGE YOUR SUPER, ANYTIME, RSE L 0000314 REI Super ABN 76 641 658
ANYWHERE 449 RSE R1000412 MySuper unique identifier
76641658449129. January 2021.
Staying on top of your REI Super
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new mobile app.
22 REIACT . Real Estate Voice . Issue 23 . April 2021REIACT . Real Estate Voice . Issue 23 . April 2021 23
Landlords, while recognising
there are inherent risks
associated with having pets
in their property are also
recognising the benefits to
having pets at their property
24 REIACT . Real Estate Voice . Issue 23 . April 2021MANAGEMENT
PROPERTY
MINIMISING RISK FOR
PET-FRIENDLY PROPERTIES
pet) will look at the property and treat it OBTAIN LANDLORD INSURANCE
with respect.
Landlord insurance policies across the
Reference checks should include follow
industry vary in their coverage for pet
up with the tenants’ previous landlord
damage.
or agent.
Sarah Barton Pets are no longer required to be named
on the lease agreement for properties
Terri Scheer Insurance Distribution PET PROOF insured by Terri Scheer in order for the
Channel Manager
Pet-proofing a property can help landlord to make a pet damage claim.
alleviate a landlord’s fear of pet damage. Do your research and find a tailored
Pet-proofing can include installing landlord insurance policy that’s right for
animal runs to enclose cats and dogs to you.
specific areas of the home or replacing For further information, visit
carpets with tiles and floorboards which www.terrischeer.com.au or call
are easier to maintain. 1800 804 016.
Media contact: Corporate Conversation,
RELATIONSHIP WITH TENANT 08 8224 3535
Allowing pets to be housed in
Maintaining a good relationship with your
a rental property is a major tenant is a must and may mean a tenant Editor’s note
decision for landlords and their will pay greater attention to detail when it About Terri Scheer Insurance
property managers. comes to cleanliness of the property and Terri Scheer Insurance Pty Ltd ABN 76 070 874
take greater care with their pets also. 798 (Terri Scheer) provides insurance cover for
Under legislation in the ACT, tenants landlords, helping to protect them against the
can keep pets at the property with the Additionally, a tenant with a good risks associated with owning a rental property.
These include malicious damage by tenants,
consent of landlords. relationship with their landlord or accidental damage, landlord’s legal liability and
property manager may feel more loss of rental income. Terri Scheer acts on behalf
Landlords, while recognising there are comfortable raising any issues regarding of AAI Limited ABN 48 005 297 807 AFSL
inherent risks associated with having pets 230859 trading as ‘Vero Insurance’, the insurer
housing pets, allowing them to be which issues the insurance cover. Terri Scheer has
in their property are also recognising the addressed sooner rather than later. not taken into account the reader’s objectives,
benefits to having pets at their property financial situation or needs. If you are interested
in any of Terri Scheer’s insurance products, the
– including that tenants who find a
pet-friendly rental property may choose to REGULAR PROPERTY INSPECTIONS relevant Product Disclosure Statement should be
considered first. It can be viewed online at
sign longer leases knowing they can keep www.terrischeer.com.au or obtained by calling
Scheduling more regular property 1800 804 016. Based in Adelaide, Terri Scheer
their beloved animal. services all states, territories and capital cities.
inspections is a good opportunity for
There’s a number of ways property a property manager to build a better Disclaimer
managers can help make their landlord’s relationship with a tenant at the start The information contained in this article is
property pet-friendly and minimise intended to be of a general nature only. Terri
of a tenancy but also assess how the Scheer does not accept any legal responsibility for
potential risks. property is being looked after by the any loss incurred as a result of reliance upon it.
tenant and their pet. Insurance issued by Vero Insurance. Read the
Product Disclosure Statement before buying this
SCREEN TENANTS Property managers should check for insurance and consider whether it is right for you.
Contact Terri Scheer on 1800 804 016 or visit our
signs of any potential damage including
website at www.terrischeer.com.au for a copy.
Screening tenants is an important part of soiled carpets, claw or teeth marks on
a property manager’s role and can help walls and door frames, and damage to
determine if a tenant (and the tenant’s gardens and exterior fences.
REIACT . Real Estate Voice . Issue 23 . April 2021 25REIA
MARKET FACTS -
DECEMBER QUARTER 2020
“Australian first home buyers increased “The Northern Territory is the most
their market share by 50.4% over 2020, affordable with the proportion of income
motivated by low interest rates and the required to meet loan repayments
range of first-home buyer incentives on 21.9%. It is now more affordable to buy
offer.” than rent in the Northern Territory,” he
said.
COVID-19 PANDEMIC “Seeing this trend in conversion to
home ownership is particularly great Mr Kelly said rental affordability over the
SEES FIRST HOME BUYERS news given the challenges many tenants quarter declined, with the proportion of
INCREASE MARKET SHARE and investors faced over the pandemic
however surging house prices could
income required to meet rent payments
increasing to 24.0%.
BY 50.4% see housing affordability obliterated
“Rental affordability declined by 0.2
unless measures to improve supply are
Real Estate Institute of Australia’s percentage points over the quarter but
implemented. This particularly applies to
(REIA) latest Housing Affordability increase of 0.4 percentage points over
regional parts of Australia.”
Report (HAR) shows that housing the past 12 months nationally.”
affordability in Australia declined Mr Kelly said the proportion of income
“Tasmania is now the least affordable
nationally in the December quarter required to meet loan repayments
state to rent with the proportion of income
2020 although, overall it improved over increased to 34.8% or 0.9 percentage
required to meet rent repayments now a
the year by 0.7 percentage points. points.”
staggering 29.5%, 5.5 percentage points
REIA President, Adrian Kelly said that “The measure for housing affordability higher than the national level.”
the decline in affordability is largely – the proportion of income required to
“Western Australia is the most affordable,
attributable to higher house prices and meet loan repayments – ranged from
despite the proportion of income required
larger loans. an increase of 0.1 percentage points in
to meet median rents increasing to
Victoria to an increase of 2.3 percentage
“The market defied the doomsday 17.8%,” he said.
points in New South Wales.
predictions with median house prices Subscriptions to HAR, and the underlying
rising across the country in 2020 with “New South Wales is the least affordable
data, can be purchased from https://reia.
demand driven mostly from first home state, where the proportion of income
asn.au/research/reia-data-har/
buyers. required to meet loan repayments is
44.6%.
26 REIACT . Real Estate Voice . Issue 23 . April 2021REIA
“At $490,000 Perth has the lowest “Darwin had the largest increase over the
REIA REPORTS A RISE IN median house price across Australian quarter (6.6%).
HOUSING AND RENTAL capital cities, 40.6% lower than the
“In the 12 months to the December
national average. Over the 12 months
PRICES ACROSS MOST OF to the December quarter, the weighted
quarter, the median rent for 2-bedroom
other dwellings increased in Brisbane,
AUSTRALIA average capital city median house price
increased by 6.6%.
Adelaide, Perth, Hobart, Canberra and
Darwin but decreased in Sydney and
Real Estate Institute of Australia’s “Other dwelling sales In the December Melbourne,” Mr Kelly said.
latest report, Real Estate Market Facts quarter 2020, the weighted average
found that in the December quarter To order a copy, go to this link: https://
median price for other dwellings for
2020, the weighted average capital city reia.asn.au/product/reia-reports-
the eight capital cities increased to
median price for both houses and other subscription-remf/
$601,345, a quarterly increase of 0.9%.
dwellings increased in the Australian For any further information please
residential property market. “Over the quarter, the median price for
contact:
other dwellings increased in all capital
Real Estate Institute of Australia’s latest cities except Adelaide. Over the 12 Olwyn Conrau, REIA Media Consultant,
report, Real Estate Market Facts found months to the December quarter, the T: 0413 600 350
that in the December quarter 2020, the weighted average capital city median E: olwyn.conrau@reia.com.au
weighted average capital city median price for other dwellings increased by
price for both houses and other dwellings 0.6%,” he said.
increased in the Australian residential
According to Mr Kelly, house rents In About the Real Estate Institute
property market.
the December quarter, the median rent of Australia
REIA President, Adrian Kelly said the for 3-bedroom houses increased in Established in 1924, REIA is a
weighted average capital city median Brisbane, Adelaide, Perth, Canberra and federated body of State & Territory
price increased by 6.0% for houses and Darwin and remained steady in Sydney, Real Estate Institutes representing
by 0.9% for other dwellings. Melbourne and Hobart. 85% of Australian real estate
“The weighted average median house “Over the past 12 months, the median agencies. We are a national
price for the eight capital cities increased rent increased in all capital cities except advocate for the Australian
to $825,205. Over the quarter, the for Melbourne and Hobart where it real estate industry which is
median house price increased in all remained steady. made up of 46,793 Australian
capital cities. businesses that employs 133,360
“Other dwelling rents During the quarter, Australians.
“At $1,211,488, Sydney’s median the median rent for 2-bedroom other
house price continues to be the highest dwellings increased in Perth, Canberra For more information visit
amongst the capital cities, 46.8% higher and Darwin, remained steady in Brisbane www.reia.asn.au
than the national average. and Hobart but decreased in Sydney,
Melbourne and Adelaide.
REIACT . Real Estate Voice . Issue 23 . April 2021 2728 REIACT . Real Estate Voice . Issue 23 . April 2021
ACTSMART
FREE SUPPORT TO CUT ENERGY COSTS
The ACT Government’s Actsmart Help for tenants
program helps businesses and
households in the ACT to save energy • Actsmart offers renters in the ACT
and water. We can help your business free home energy assessments and
and the residential property owners and energy-saving materials - see www.
tenants you work with to reduce energy actsmart.act.gov.au/renter-hea or
and water bills. Small steps can achieve email ActsmartAdvice@act.gov.au.
big savings. • People can do their own free home
Here’s how to find out more about the energy assessment with a new
advice, support and rebates on offer. online tool tailored for renters in the
Canberra region, by visiting https://
actsmart-hea.com.au. This tool
Free energy efficiency advice for can also be used by rental property
everyone owners and homeowners.
• Find information, videos and
webinars on ways to save energy and Help for businesses
costs, and how to make your home or
business more sustainable by visiting • Rebates are available to eligible ACT
www.actsmart.act.gov.au. businesses wanting to upgrade to
more water-efficient and energy-
efficient technologies. This includes
Help for residential property owners lighting, hot water systems, heating
• For technical advice on ways to save or cooling, refrigeration, insulation,
energy, ACT residents can call the toilets and tapware.
Actsmart Sustainable Home Advice • To find out more, email
line on 1300 141 77, Monday businessenergy@act.gov.au, call 13
to Friday, 9am to 5pm, or email 22 81 or visit https://www.actsmart.
ActsmartAdvice@act.gov.au. act.gov.au/what-can-i-do/business/
• The Actsmart Sustainable Home business-energy-and-water-program.
Advice Program also runs free By taking action you can keep warmer in
webinars on home energy efficiency winter, cooler in summer and keep your
that are recorded and available online costs down. Take the first step today to
at www.actsmart.act.gov.au. feel the benefits all year.
REIACT . Real Estate Voice . Issue 23 . April 2021 29PRACTICAL TIPS AND GOOD THINGS TO KNOW WHEN
ATTENDING AND BIDDING AT ACT AUCTIONS
During these moments of high tension, "Registering a bidder after the auction
auctioneers and agents can display has commenced"
varying degrees of understanding. At
You can register a bidder after the
such times, or when the unexpected
auction has commenced. The bidder will
or unplanned happens, it pays to be
need to provide suitable ID and confirm
aware of what may be happening or not
Peter Walker
they have read the contract for sale and
happening as is required by legislation.
will pay the agreed deposit.
The following are a few shared thoughts
As the selling agent, you indicate to the
and ideas for your greater understanding
vendor that you will not register a bidder
of the terms and conditions governing
after the auction has commenced, it
the conduct of auctions in the ACT.
With auctions being more can only be with the vendor’s approval
that they don't register the prospective
commonplace, nowadays in "The auctioneer must identify and bidder/s. A prospective bidder who has
the ACT, high levels of buyer announce the bidder number when proof of ID, has read the contract for
confidence in property have accepting a bid" sale and can prove they can pay the
prompted more spirited bidding required deposit is entitled to register
The auctioneer must announce the
and bid under auction conditions.
at these auctions. In these bidder number when accepting the
situations, bidders are often bid. This is mandatory and is always
required. Why? it ensures accountability “Understanding the terms and
feeling rushed when seeing to afterwards and ALSO identifies who has conditions of an ACT auction”
make critical decisions. Please this bid. With multiple bidders attending
While it may not seem important, just
consider the following to help auctions, they need to know if their bid
like the instructions to any new device
you understand the process has been the one accepted or whether
or gadget, best practice is to encourage
it's a bid accepted from someone else
more fully and maybe feel more your bidders to understand the terms
who is in the auctioneer's same line of
and conditions of auction to ensure that
confident during these pressure sight.
they are bidding with confidence on the
moments. day of auction.
30 REIACT . Real Estate Voice . Issue 23 . April 2021You can also read
