real estate voice

ISSUE 23 . APRIL 2021

V O I C E

ACAT

Update on endorsement applications

THE PERFECT STORM

Record breaking suburb sales

STELLAR YEAR

ACT median now $750,000

REAL ESTATE

SPEAKING OUT ABOUT REAL ESTATE IN THE ACT

2 REIACT . Real Estate Voice . Issue 23 . April 2021

REIACT . Real Estate Voice . Issue 23 . April 2021 3

REIACT BOARD 2020–21

Immediate Past President Michael Kumm P 6295 9911 . M 0402 943 191 E [email protected]

Deputy President Stan Platis P 6209 1502 E [email protected]

Treasurer John Faulks P 6264 8000 E [email protected]

Director Craig Bright P 6239 4555 . M 0419 394 555 E [email protected]

Director Tom Ellis M 0412 622 006 E [email protected]

President Hannah Gill P 6209 1409 . M 0438 247 898 E [email protected]

Director Benjamin Grady P 02 6274 0959 E [email protected]

Director Sandra Masters P 6255 3888 . M 0416 121 155 E [email protected]

Director Col McIntyre P 6294 9393 E [email protected]

Director Chris Wilson M 0418 620 686 E [email protected]

COMMITTEE STRUCTURE 2020–21Property Management Craig Bright

Professional Practices Craig Bright / Michelle Tynan / Benjamin Grady

Awards Stan Platis

Training Michelle Tynan

Auction Peter Walker

Finance John Faulks

Corporate Governance Michael Kumm

Commercial Guy Randell

CONTACT REIACTPhone 0499 881 168

Email [email protected]

Unit 7 - 1 Beaconsfield Street Fyshwick ACT 2609

@realestateinstituteofACT

@REIofACT

www.reiact.com.au

Images sourced from Unsplash


REIACT . ISSUE 23 . APRIL 2021

Residential Tenancy 10 Ammendments

The most recent changes to the Residential Tenancies Act 1997 (ACT) came in the form of the Residential Tenancies Amendment Act 2020 (No 2). These changes strengthened the legal framework for share housing in the ACT.

Allhomes - The Perfect Storm 11

A "perfect storm” of economic factors and buyer activity is fuelling record price sales across a number of Canberra suburbs.There have been more than a dozen suburbs that have recorded new sales benchmarks since the start of the year.

Is your business ready for 13 the effects of La Nina

La Nina caused significant damage when it last made its way to Australia in 2010-12 season. And the Bureau of Meteorology says the impacts associated with the weather pattern, such as excessive rainfall, are expected to persist.

Redundancy Road Map 15

The fallout from the COVID-19 pandemic has resulted in many real estate agencies asking questions of how to cope with business downturn and changes in operational requirements.

REIA Report 18

After a near-apocalyptic year, the real estate industry is once again open for business and moving into a better future. The year has kicked off with some big news making the headlines.

Gender Super Gap 21

Did you know that more than 80 per cent of women are currently retiring with insufficient superannuation savings to fund a comfortable lifestyle? In fact, the average superannuation account balance for women when they retire is around $80,000 less than the average for men.

CONTENTS


Pet Friendly Properties 24

Allowing pets to be housed in a rental property is a major decision for landlords and their property managers. Under legislation in the ACT, tenants can keep pets at the property with the consent of landlords.

Support to Cut Energy Costs 29

The ACT Government’s Actsmart program helps businesses and households in the ACT to save energy and water. We can help to reduce energy and water bills. Small steps can achieve big savings.

Auction Bidding Tips 30

With auctions being more commonplace, nowadays in the ACT, high levels of buyer confidence in property have prompted more spirited bidding at these auctions.

Real Estate Training 32

By now you will be aware of the changes in legislation that came in on 23rd March, 2020. We have had year full of changes in legislation, Covid 19 legislations changing and updating often and a strange market, with lots of twists and turns.

Three Mistakes with Real Estate 33

IT can be considered costly, but it is the decisions made about IT that can be costly. Within 10% of the initial project timeline, you are likely to have determined 90% of the lifecycle costs.

Australia's Real Estate and 35 Housing Finance Crisis

Australia, we have a problem – a very big one. Whether you are an owner-occupier or a tenant, this problem effects the roof over your head, and it is not a COVID creation.

6 REIACT . Real Estate Voice . Issue 23 . April 2021Canberra Airport


REIACT PRESIDENT Hannah Gill

FROM THE

PRESIDENT

Welcome to our first issue of Real Estate Voice for 2021.

It seems strange that we are already in April; we have passed the one year anniversary for the ACT real estate lock down (Tuesday 24 March 2020 to be exact), and I think it’s important to recognise the effort and contribution made by many in our industry during the months that followed.

Here is a snapshot of the work undertaken by the Institute for 2020:

• 17 new members joined

• The Institute received 456 member and public enquiries

• 53 COVID updates went out to Principals

• 19 COVID e-News updates went out to members

• The Institute had representation at 48 COVID related ACT Government consultation meetings and 29 National REIA Board & CEO COVID related meetings

I’d like to acknowledge and thank our CEO Michelle Tynan, and Rebecca Elton, REIACT Administrative Manager, for their work over 2020.

In our November issue, I talked about the opportunities I was hopeful 2021 would bring, and it’s fair to say, opportunities have been in abundance. Last year highlighted the importance of collaboration and innovation. We were able to achieve things that in the absence of COVID, our market wouldn’t have necessarily accepted, but things that became commonplace very quickly such as remote property viewings, remote routine inspections and online auctions.

I am confident that this appetite for innovation and positive change will not only remain but continue to strengthen in Canberra real estate.

The knowledge and experience of our members is second to none, and by working together, supporting one another and celebrating achievements (with a side of healthy competition, of course), we will continue to learn, improve and ultimately deliver a better service to our clients and experience for our people.

We know that from an Institute viewpoint we need to continue to deliver helpful information to our members. As a Board, we know we need to continue to improve our governance, diversity, scope of services and better leverage the knowledge and passion our members have.

As such, heading into the new financial year, we are pleased to introduce working committees for the board. These include: Governance, Legal and Due Diligence, Professional Standards, Member Services, Sponsorship, Events and Training.

These committees will help drive strategic direction and outcomes, and while each area is important, training, member services and events are all high on the Board’s agenda for 2021. We know how challenging it can be to recruit and retain good people in the industry and we believe the Institute can play a role in helping make this easier.

Congratulations to Narelle Casey, Alex Ah Key, John Minns, Claire Corby, Rosalie Douglas and Grace Hooper for your appointment to these committees.

As I am sure you are all aware, there are several legislative changes on the radar. The Institute is actively participating in discussions around these changes, in particular the abolishment of the 26 week no cause notice to vacate, and the upcoming introduction of minimum energy efficiency ratings in rental properties.

It is very much a priority to ensure we have a seat at the table for any discussion relating to policy which may have unintended or adverse consequences, further impacting issues around supply and affordability, and as we have more clarity and information, we will be sure to provide updates.

We recently held the President’s breakfast which was a sold out event at Hotel Realm. With special guests REIA CEO Anna Neelagama, Jarrod Coysh CEO REI Super and Chris Richardson from Deloitte Access Economics, the morning was engaging and full of relevant, helpful information. Thanks to our event partner, REI Super and to the members who joined us – we received great feedback and look forward to seeing you all at the next one!

As always, if we can assist you in any way, please don’t hesitate to reach out!


FROM THE CEO

REIACT CEO Michelle Tynan

Nationally, we have been heavily involved in the federal mandate for Automatic Mutual Recognition. This mandate was intended to remove “red tape and allow ease of movement for employment”, which, for many industries is achievable as they have national standards, however, for real estate there is no national standard for either legislation or training, so we have implored the ACT Government to exempt the real estate industry on the grounds of consumer protection.

Locally, we are now participating in consultation with the ACT Government on a number of proposed changes to the Residential Tenancies Act. These include; removal of 26 weeks no cause termination, mandatory EER rating, rent bidding and the right to grow food. To our Property Management Committee in advance, thank you – the work required over the next six months will be extensive. On 3rd March, the Committee met with the Attorney General in a round table discussion to advise Minister Rattenbury on the “unintended” consequences for removal of the 26 weeks no cause termination clause. The professionalism and expertise showcased during that 45-minute meeting, with a detailed and data-based presentation, implored the Minister to now seek further guidance and consultation for both the removal of the 26 weeks no cause termination and mandatory EER ratings. We will also be representing our members in the consultation process for the development of the new real estate training package which must be implemented by June 2021.

The REIACT Annual General Meeting has been set down for Thursday, 27th May 2021. Next week you will receive an email communication detailing all the information for Board Nominations for 2021-2022. I ask that you give this serious consideration and the skill set that you, as an individual, can bring to the Institute. The Institute has established seven new Committees, commencing 1 July 2021, to enhance and increase the services to be provided to Institute members going forward. All Board members will play an important role on these committees. If you would like further information on the role of a Board member, please contact me.

Finally, Awards season will soon be upon us. On 10th June we will be represented by our 2020 REIACT Awards for Excellence winners at the REIA National Awards for Excellence to be held in Darwin. I would like to take this opportunity to thank all of our nominees for the considerable effort, during a very busy time, to complete the submissions for the National Awards. On behalf of the REIACT Board and Secretariate, we wish you every success in Darwin.

We can also confirm that the 2021 REIACT Awards for Excellence will be held on Saturday, 23rd October 2021, at Hotel Realm. The REIACT Auctioneering Championships will make their long-awaited return on Wednesday, 1st September 2021 with the competition also to be held at Hotel Realm. Nominations for the 2021 REIACT Awards for Excellence will open on Monday 31st May 2021.

Hot, hot, hot is how all my conversations start these days and everyone is a property expert.

No matter where you are in this great country we live in, the conversation is the same, and I’m sure you are all having the exact same conversations. Whilst we had hopes for 2021 continuing the recovery after the year that was, it now seems all the economists share our hope, predicting the continuing rise of property sales and values for at least the next two years. So, with this renewed optimism, I look forward to being the centre of attention at all my future social gatherings for a little while to come!

With the first quarter of the year now done and dusted, here at the Institute we have been very busy, our attention now focused on advocacy for our members on many fronts.


THE PROPERTY COLLECTIVE

02 6209 7777 Unit 16, Level 1, 175 Anketell Street Tuggeranong ACT 2901 thepropertycollective.com.au

HARCOURTS PRIME RESIDENTIAL

02 6162 0002 Unit 3, Cooyong Centre 1 Torrens St, Braddon ACT 2612 primeresidential.harcourts.com.au

JONNY WARREN PROPERTIES

0431 797 891 806/241 Northbourne Avenue Lyneham ACT 2602 jonnywarren.com.au

STONE GUNGAHLIN

0410 125 475 16A, Stage 2, The Marketplace 33 Hibberson St Gungahlin ACT 2912 stonerealestate.com.au

TIMOTHY ROAD

0401 097 568 Level 1 / 11-17 Swanson Court Belconnen ACT 2617 timothyroad.com.au

BASTION PROPERTY GROUP

02 6176 3426 10/285 Canberra Avenue Fyshwick ACT 2609 bastionpropertygroup.com.au

NEW REIACT M

EMBERS


CO-TENANCY CHANGES

RESIDENTIAL TENANCIES AMENDMENTS

The most recent changes to the Residential Tenancies Act 1997 (ACT) came in the form of the Residential Tenancies Amendment Act 2020 (No 2), part of which commenced on 3 March 2021. These changes strengthened the legal framework for share housing in the ACT.

The stated purpose of the changes is to facilitate the availability of stable and secure housing in the ACT and to protect parties from unfair practices by:

• creating mandatory minimum principles for occupancy agreements;

• introducing a security deposit framework for occupancy agreements; and

• introducing enforceable conciliation of occupancy disputes.

The changes:

• introduce the legal concept of a ‘co-tenant’, who has the same rights of possession and quiet enjoyment;

• create the ability for tenants to be added to or removed from a tenancy agreement (with the consent of the landlord) without the agreement coming to an end;

• create a framework for managing the condition of the property (and the condition report) as at the commencement of the term, or upon a change to the co-tenancy;

• create a framework for managing the transfer of a co-tenants interest in the security bond when there is a change to the co-tenancy; and

• set out a framework to resolve disputes between co-tenants or disputes between the landlord and co-tenants.

Due to the changes, landlords and tenants no longer need to ‘restart’ an agreement upon a change to the tenancy and managing agents can move forward with greater certainty as to the role of each party during that transition and their respective obligations. Whilst the changes aim to provide greater support and representation for tenants, it remains to be seen whether the long-term benefit will facilitate the availability of stable and secure housing in the ACT.

The Property Team at BAL Lawyers have extensive experience managing the rights and obligations of parties to a tenancy agreement. Should you require advice or further information, please do not hesitate to get in touch with a member of the Property Team.

Benjamin Grady & Daniel Page BAL Lawyers


A "perfect storm” of economic factors and buyer activity is fuelling record price sales across a number of Canberra suburbs.

There have been more than a dozen suburbs that have recorded new sales benchmarks since the start of the year.

Domain senior research analyst Dr Nicola Powell said there were a number of factors contributing to Canberra’s stellar selling spree.

“Ultimately, it’s low interest rates and low mortgage repayments that are spurring buyers to purchase,” Dr Powell said. “With the winding back of responsible lending, borrowers are taking out bigger loans and are buying properties with more [money] in their back pocket.”

Michael Braddon of Blackshaw Gungahlin said the capital’s ability to contain the virus well had encouraged buyers and investors to purchase here.

“There are a number of economic factors that have supported these sales and, backed by the low supply of houses for sale and a high demand from buyers, it’s created the perfect storm for sellers and buyers,” he said.

“So I’m not surprised that we’ve seen these strong sales across a number of suburbs.”

Mr Braddon broke the Higgins record in early March when a house sold under the hammer for $980,000.

“We had a lot of people ask us how much it was worth during the open for inspections, which we gave, but when we took it to auction, bidders were willing to pay more,” he said.

In February alone, Mr Braddon met 980 buyers and that figure has increased this month, he said.

“With interest rates being as low as they have been, getting a loan has been easy for house hunters and they’re now purchasing out of the fear of missing out,” Mr Braddon said.

“They're not worried about paying a bit extra now because they're seeing themselves in a property for a long time.”

Josh Morrissey of Hive Property said that, should these low-rates remain, more suburb records will be broken.

“Like all storms, they come to pass but we don’t know how long this storm will last,” he said.

“The market is going to be dictated by the current economic conditions and if that stays, the trajectory will remain the same because more buyers are in the market and more money is being borrowed.”

Mr Morrissey quietly broke Curtin’s record in February after a house sold for $2.7 million off-market.

“If more stock comes to market, prices will flatten but there’s no indication of prices declining anytime soon,” he said.

In the December quarter, Canberra’s median house price leapt to a record high of $855,530, up 6.4 per cent over the quarter and 9.1 per cent over the year, Domain’s House Price Report showed.

“We entered 2021 with record-high house prices and, in an environment where prices are rising, we would expect records to be achieved across Canberra,” Dr Powell said.

“We have record-low interest rates and they're going to be here at least for the rest of this year.

“The RBA is watching what's happening to lending environments and to house prices so the market doesn't get over-inflated but I think at the moment, those rising house prices will continue and we will see more records being achieved.”

THE PERFECT STORM

Jessica Taulaga Allhomes

‘THE PERFECT STORM’: WHAT’S DRIVING CANBERRA’S RECORD BREAKING SUBURB SALES?


1 3000 [email protected]/reiact

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LA NINA MIGHT BE OVER BUT IS IT BUSINESS AS USUAL?

INSURANCE

La Nina caused significant damage when it last made its way to Australia in 2010-12 season. And while the 2020-21 version of La Nina has likely reached its peak, the Bureau of Meteorology says the impacts associated with the weather pattern, such as excessive rainfall, are expected to persist.

This time last year, plumes of dark smoke covered Australia with bushfires sweeping across New South Wales, Victoria, South Australia, and Queensland. The Black Summer resulted in more than $2.32 billion in insurance payouts, with small and medium-sized businesses among the hardest hit. This was further amplified by subsequent floods and hailstorms, leading to the catastrophe insurance bill surpassing $6 billion.

A report by The Australian Small Business and Family Enterprise Ombudsman's sent shockwaves when it said that an alarming number of affected businesses were either under-insured or had no insurance at all.

While this year has so far been relatively tame in comparison, climate scientists have warned that natural disasters still pose a threat for Australian small businesses, including the flood-inducing La Nina climate pattern, which is likely to impact Queensland and the rest of eastern Australia.

La Nina caused significant damage when it last made its way to Australia in 2010-12 season. And while the 2020-21 version of La Nina has likely reached its peak, the Bureau of Meteorology says the impacts associated with the weather pattern, such as excessive rainfall, are expected to persist across eastern and northern parts of the country through to the end of summer and into autumn.

When it comes to potentially damaging natural disasters, business owners should seek advice on how best to manage risks and take practical steps to prepare. This can help to avoid financial ruin in the case of a damaging weather event, like a flood or cyclone. This starts with ensuring your business is equipped with a strong risk management plan, which factors in the need for adequate insurance that is tailored to your needs.

There is no question that businesses have heard time and again about the importance of preparing when disaster strikes. But many still prefer to take a chance - a choice that can leave them far worse off when the unexpected comes to pass.

If your business is yet to draw up a protection plan in preparation for extreme weather events, it's never too late to get started. For those who already have an existing plan in place, there is no harm in regularly reviewing and updating it to better reflect your current needs and the ever-changing landscape.

Even as we farewell summer, the weather dangers associated with the season are likely to linger around for longer. So, don't wait until a catastrophe occurs to find out you don't have the cover you need in place to properly protect your business.

Contact Coverforce today on 1300 503 503 or visit coverforce.com.au for tailored risk advice and the right insurance program to protect your business and assets.


Bryan Wilcox CEO of the Real Estate Employers' Federation

The fallout from the COVID-19 pandemic has resulted in many real estate agencies asking questions of how to cope with business downturn and changes in operational requirements. What can I do when there’s no longer enough work to go around? Is redundancy an option? And how do I safely navigate the redundancy process?

If 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.

A position is redundant where an employer has reached the conclusion that they no longer require someone to perform that role in the future. The duties of the redundant position will either disappear completely or will be absorbed other existing positions.

For example, an employer has decided to make the position of Bookkeeper redundant. Why? Because the bookkeeping function can be outsourced to a third- party supplier. Alternatively, it can be carried out by the Office Manager.

Because it’s the position, not the employee, being made redundant, it’s dangerous to attempt to disguise the termination of an under-performing employee as a redundancy. If you do, the risk of litigation increases significantly.

For a redundancy to be genuine, the following criteria must be met:

• The role is no longer required to be performed by anyone due to changes in operational requirements; and

• The employer complied with its obligations set out in the relevant award regarding consultation and redeployment opportunities.

CONSULTATION OBLIGATIONS

Award obligations require an employer to consult with employees when redundancies are being considered and these obligations apply to all businesses, big or small. This consultation must occur as soon as possible and prior to any final decision being made about the positions.

Consultation involves meeting with all employees who may be affected by any proposed redundancy. This is relatively straightforward in circumstances where the redundant position is singular within your business structure; for example, where you only employ one Leasing Agent in the agency.

It becomes more complex, however, where there are multiple employees performing similar roles; for example, where you have four residential salespeople. Let’s assume that you’ve made the decision to reduce your sales team from four to three salespeople. In this situation, you are clearly making one position redundant. You need to discuss this situation with all four members of the sales team before deciding which salesperson will be chosen for retrenchment.

REDUNDANCY ROAD MAP

REEF


So, what does the consultation process involve?

HERE ARE THE STEPS:

1. Give notice in writing of the proposed changes to all affected employees.

2. As soon as practicable, discuss with the affected employees how the proposed changes are likely to impact them and any measures being considered to mitigate that impact. This includes discussing the nature of what is being proposed and the key reasons for consideration of such proposals.

3. Seek feedback from the affected employees on the proposals and give their feedback due consideration.

4. Consider whether there are any suitable redeployment options to other vacant positions within the agency. While this is unlikely to be the case, legal difficulties will arise where there is an employment

opening in the business that the retrenched employee is qualified to perform, and you fail to consider them for the position.

5. Once you’ve undertaken the initial consultation and considered feedback, you should make a definite decision and inform affected employees. If your agency employs 15 or more employees at the time of implementing the redundancy, keep in mind that there are likely to be redundancy pay obligations that need to be met.

Failure to meet your consultation obligations will leave your business exposed to a claim that the employee’s termination was not a case of genuine redundancy and that it was unfair.

The redundancy process is complicated and a potential minefield for employers. Employers should therefore always seek professional advice about their redundancy obligations.

If you’re a member of REEF and are considering redundancy, we strongly encourage you to call the REEF helpline on 1300 616 170 before you commence any action.

Our Workplace Relations Advisors will step you through the process from beginning to end.

The Real Estate Employer’s Federation (REEF) is the real estate industry’s leading not-for-profit employer and workplace relations advisory association. It has more than 1700 members and subscribers across Australia. Each year, REEF receives more than 20,000 calls from real estate employers needing help and guidance on matters affecting the employment relationship.

For more information about joining, go to www.reef.org.au or call 1300 616 170.

If 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


https://reisuper.com.au/women-and-super

18 REIACT . Real Estate Voice . Issue 23 . April 202118 REIACT . Real Estate Voice . Issue 22 . December 2020

After a near-apocalyptic year, the real estate industry is once again open for business and moving into a better future. The year has kicked off with some big news making the headlines.

REIA recently announced a unique new sponsorship agreement with Australia’s #1 address in property, realestate.com.au

The affiliation of the two key industry leaders represents an exciting phase for both the REIA and realestate.com.au who will be utilising and expanding on each entity’s strengths.

We’re predicting that it’s going to be a big year for Australia’s housing sector which has already enjoyed immediate recovery with median house prices rising across the country.

REIA has just produced our quarterly Real Estate Market Facts (REMF) and Housing Affordability Report (HAR) which show just how resilient Australian real estate has been.

According to our REMF, the December quarter 2020, showed the weighted average capital city median price for both houses and other dwellings increased in the Australian residential property market.

The weighted average capital city median price increased by 6.0% for houses and by 0.9% for other dwellings.

The weighted average median house price for the eight capital cities increased to $825,205.

At $1,211,488, Sydney’s median house price continues to be the highest amongst the capital cities, 46.8% higher than the national average.

Perth has the lowest median house price across Australian capital cities at $490,000. Canberra’s housing price rose by 2% to a median of $750,000 with other dwellings rising to $560,000.

Of course, the strong growth has impacted housing affordability. The latest HAR shows that housing affordability in Australia declined nationally in the December quarter 2020 although, overall it improved over the year by 0.7 percentage points.

The decline in affordability is largely attributable to higher house prices and larger loans.

The market defied the doomsday predictions with median house prices rising across the country in 2020 with demand driven mostly from first home buyers.

Australian first home buyers increased their market share by 50.4% over 2020,

Adrian Kelly REIA President

motivated by low interest rates and the range of first-home buyer incentives on offer.

Seeing this trend in conversion to home ownership is particularly great news given the challenges many tenants and investors faced over the pandemic however surging house prices could see housing affordability obliterated unless measures to improve supply are implemented. This particularly applies to regional parts of Australia.

The proportion of income required to meet loan repayments increased to 34.8% or 0.9 percentage points.”

The measure for housing affordability – the proportion of income required to meet loan repayments – ranged from an increase of 0.1 percentage points in Victoria to an increase of 2.3 percentage points in New South Wales.

Over the December quarter, housing affordability declined in the Australian Capital Territory with the proportion of income required to meet home loan repayments increasing to 23.7%, an increase of 1.6 percentage points over the quarter and an increase of 1.0 percentage points over the past year.

New South Wales is the least affordable state, where the proportion of income required to meet loan repayments is 44.6%.

The Northern Territory is the most affordable with the proportion of income required to meet loan repayments 21.9%. It is now more affordable to buy than rent in the Northern Territory,” he said.

REAL ESTATE INDUSTRY SET FOR STELLAR YEAR

REIA


Recent changes to the law have meant some changes to the way the ACT Civil and Administrative Tribunal (ACAT) handles referrals from ACT Rental Bonds about rental bonds and security deposits.

If there is a disagreement about the distribution of a rental bond or security deposit which is referred to ACAT, ACAT will list the dispute for a conference. At least seven days before the conference, the lessor or grantor must provide a list of claims which shows how the lessor

or grantor wants the bond or security deposit distributed, and why.

If agreement is reached at the conference, ACAT will make orders about the disbursement of the bond or security deposit. ACT Rental Bonds will then disburse the bond or security deposit.

If there is no agreement, the matter will be scheduled for hearing and ACAT will make directions giving each party a timetable to prepare for the hearing. The directions may require:

• the lessor or grantor to complete a Rental Bond Claim form and give it to the tenant and ACAT. There is no fee for this document.

• the tenant or occupant to complete a Rental Bond Claim Response and give it to the lessor and the ACAT. There is no fee for this document.

• all parties to provide supporting documents, which may include the lease or occupancy agreement, in-going and outgoing condition reports, quotes, invoices, receipts, a timeline and/or witness statements.

Kristy Carter Registrar, ACT Civil and Administrative Tribunal (ACAT)

Referrals from ACT Rental Bonds only give ACAT the power to make orders about the bond or security deposit dispute.

If the claim is for more than the bond or security deposit, the lessor or grantor will need to complete and lodge a residential tenancy dispute application. There is a fee for this application (except in special circumstances). The tenant or occupant will then be asked to complete and lodge a response to the application.

On the day of the hearing an ACAT Member will consider all of the documents lodged by the parties, and may hear from the parties and their witnesses. The ACAT member will usually make a decision at the end of the hearing, or reserve the decision and give it later.

You can find more information, and links to the forms and other documents, on the ACAT website:

https://www.acat.act.gov.au/case-types/rental-disputes/rental-bond-disputes.

CHANGES TO RENTAL BOND AND SECURITY DEPOSIT DISPUTES AT ACAT

ACAT


To assist in obtaining quicker and more efficient outcomes the ACAT has made changes to the endorsement application process

During the COVID-19 pandemic, processing of applications for endorsement of inconsistent terms was delayed due to staffing constraints at the ACT Civil and Administrative Tribunal (ACAT). This has led to a backlog of endorsement applications which is still being worked through.

ACAT recognises that where a tenant and lessor enter into a tenancy agreement which is different to the prescribed terms, they will need to know as soon as possible which clauses of the agreement will be binding. To assist in obtaining quicker and more efficient outcomes

the ACAT has made changes to the endorsement application process, including:

• Parties are no longer required to provide a ‘proforma for endorsement’ (a draft ACAT order).

• Generally, applications will be considered by an ACAT member in chambers within a month of filing.

• If the ACAT member has questions about the application, it will be listed for a short (15 minute) telephone hearing.

A shorter, simpler endorsement application form is being developed. Parties can continue to use the current application form until the new form is available.

Things that agents can do to assist in an application for endorsement being determined quickly include:

• Make sure the residential tenancy agreement has every clause numbered and is signed by the

parties. Only clauses that clearly form part of the signed agreement can be considered for endorsement.

• Make sure the application for endorsement:

+ shows the name of the lessor and tenant and each party’s contact details;

+ is signed by the lessor (or their representative) and tenant;

+ attaches a copy of the tenancy agreement;

+ specifies (by number) the clauses which are to be endorsed.

• If the application is made by an agent on behalf of a lessor, ensure a Power of Attorney or Authority to Act for a Corporation is lodged with the application for endorsement.

More information about applications for endorsement is on the ACAT website here: https://www.acat.act.gov.au/case-types/rental-disputes/endorsements.

.

UPDATE ON ACAT ENDORSEMENT APPLICATIONS


WHAT IS THE GENDER SUPER GAP?

Did you know that more than 80 per cent of women are currently retiring with insufficient superannuation savings to fund a comfortable lifestyle? In fact, the average superannuation account balance for women when they retire is around $80,000 less than the average for men*.

There are a number of reasons why the super gap is so large, but it doesn’t have to be this way. By taking control of personal finances and pursuing greater financial independence, this may help women feel more confident to enjoy financial wellbeing today as well as in retirement.

WHY IS THE SUPERANNUATION GAP SO LARGE?

As we are reminded in the media, there still remains to be a gender inequality when it comes to full-time earnings, with women earning 18% less than men.~ This results in further disparity when it comes to employer superannuation contributions, known as super guarantee. Currently, employees receive a super guarantee contribution of 9.5% of their total salary earnings. If women are already earning 18% less than men, this gap is also transferred over to their super earned by employers.

Many 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.~

When women return to work, they are more likely to be in part-time or low-paid employment. There are an estimated 43% of women in part-time work.~ The current 9.5% Superannuation Guarantee does not enable most

women to accrue sufficient savings for a comfortable retirement.

An estimated 220,000 women miss out on $125 million of superannuation contributions as they do not meet the requirement to earn $450 per month (before tax) from one employer, as many women work more than one part-time job.~

THE FUTURE OF THE WORKING ENVIRONMENT

REI Super’s insurance provider MetLife’s Employee Benefit Trends Study 2020 investigates the changing face of the Australian workplace landscape. Understanding how to improve employee wellbeing is key to helping employers navigate this new work-life reality. The study highlights that while employers are prioritising the mental aspect of their employee wellbeing, right now, financial health is the top concern for employees, and plays an especially important role in their overall wellbeing, and mental health in particular.

Many 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


With many working remotely throughout 2020, it’s to be seen that employers are starting to adopt a position in which roles can continue to be worked remotely and flexibly, which could benefit women in the workforce who have family or caring responsibilities. Some employers are also offering expanded parental leave schemes.

These types of workplace changes will help create a positive culture, where employees can confidently feel they can access these types of initiatives to maintain a work-life balance, increase productivity and not compromise their careers and finances, thus alleviating a superannuation gap.

WHAT NEXT?

Take control of your finances by following our simple steps and join our community of financially empowered women in real estate. It’s easy to get started.

MANAGE YOUR SUPER, ANYTIME, ANYWHERE

Staying on top of your REI Super account is now even easier using the new mobile app.

Get the app in three easy steps

1. Set up your online account at reisuper.com.au

2. Download the mobile app from the App Store or Google Play.

3. Login with the username and password from your online account.

Learn more about Women and Super at www.reisuper.com.au/women-and-super

* https://www.superguru.com.au/about-super/women-and-super

~ https://www.womeninsuper.com.au/content/the-facts-about-women-and-super/gjumzs

Disclaimer: The information contained in this article does not constitute financial product advice. However, to the extent that the information may be considered to be general financial product advice, REI Super advises that REI Super has not considered any individual person’s objectives, financial situation or particular needs. Individuals need to consider whether the advice is appropriate in light of their goals, objectives and current situation. Members should obtain and read the Product Disclosure Statement for REI Super before making any decisions. REI Superannuation Fund Pty Ltd ABN 68 056 044 770 AFSL 240569. RSE L 0000314 REI Super ABN 76 641 658 449 RSE R1000412 MySuper unique identifier 76641658449129. January 2021.

SUPERANNUATION


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


MINIMISING RISK FOR PET-FRIENDLY PROPERTIES

Allowing pets to be housed in a rental property is a major decision for landlords and their property managers.

Under legislation in the ACT, tenants can keep pets at the property with the consent of landlords.

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 – including that tenants who find a pet-friendly rental property may choose to sign longer leases knowing they can keep their beloved animal.

There’s a number of ways property managers can help make their landlord’s property pet-friendly and minimise potential risks.

SCREEN TENANTS

Screening tenants is an important part of a property manager’s role and can help determine if a tenant (and the tenant’s

pet) will look at the property and treat it with respect.

Reference checks should include follow up with the tenants’ previous landlord or agent.

PET PROOF

Pet-proofing a property can help alleviate a landlord’s fear of pet damage.

Pet-proofing can include installing animal runs to enclose cats and dogs to specific areas of the home or replacing carpets with tiles and floorboards which are easier to maintain.

RELATIONSHIP WITH TENANT

Maintaining a good relationship with your tenant is a must and may mean a tenant will pay greater attention to detail when it comes to cleanliness of the property and take greater care with their pets also.

Additionally, a tenant with a good relationship with their landlord or property manager may feel more comfortable raising any issues regarding housing pets, allowing them to be addressed sooner rather than later.

REGULAR PROPERTY INSPECTIONS

Scheduling more regular property inspections is a good opportunity for a property manager to build a better relationship with a tenant at the start of a tenancy but also assess how the property is being looked after by the tenant and their pet.

Property managers should check for signs of any potential damage including soiled carpets, claw or teeth marks on walls and door frames, and damage to gardens and exterior fences.

Sarah Barton Terri Scheer Insurance Distribution Channel Manager

OBTAIN LANDLORD INSURANCE

Landlord insurance policies across the industry vary in their coverage for pet damage.

Pets are no longer required to be named on the lease agreement for properties insured by Terri Scheer in order for the landlord to make a pet damage claim.

Do your research and find a tailored landlord insurance policy that’s right for you.

For further information, visit www.terrischeer.com.au or call 1800 804 016.

Media contact: Corporate Conversation, 08 8224 3535

Editor’s note

About Terri Scheer Insurance

Terri Scheer Insurance Pty Ltd ABN 76 070 874 798 (Terri Scheer) provides insurance cover for landlords, helping to protect them against the risks associated with owning a rental property. These include malicious damage by tenants, accidental damage, landlord’s legal liability and loss of rental income. Terri Scheer acts on behalf of AAI Limited ABN 48 005 297 807 AFSL 230859 trading as ‘Vero Insurance’, the insurer which issues the insurance cover. Terri Scheer has not taken into account the reader’s objectives, financial situation or needs. If you are interested in any of Terri Scheer’s insurance products, the relevant Product Disclosure Statement should be considered first. It can be viewed online at www.terrischeer.com.au or obtained by calling 1800 804 016. Based in Adelaide, Terri Scheer services all states, territories and capital cities.

Disclaimer

The information contained in this article is intended to be of a general nature only. Terri Scheer does not accept any legal responsibility for any loss incurred as a result of reliance upon it.

Insurance issued by Vero Insurance. Read the Product Disclosure Statement before buying this insurance and consider whether it is right for you. Contact Terri Scheer on 1800 804 016 or visit our website at www.terrischeer.com.au for a copy.

PROPERTY M

ANAGEMENT


COVID-19 PANDEMIC SEES FIRST HOME BUYERS INCREASE MARKET SHARE BY 50.4% Real Estate Institute of Australia’s (REIA) latest Housing Affordability Report (HAR) shows that housing affordability in Australia declined nationally in the December quarter 2020 although, overall it improved over the year by 0.7 percentage points.

REIA President, Adrian Kelly said that the decline in affordability is largely attributable to higher house prices and larger loans.

“The market defied the doomsday predictions with median house prices rising across the country in 2020 with demand driven mostly from first home buyers.

“Australian first home buyers increased their market share by 50.4% over 2020, motivated by low interest rates and the range of first-home buyer incentives on offer.”

“Seeing this trend in conversion to home ownership is particularly great news given the challenges many tenants and investors faced over the pandemic however surging house prices could see housing affordability obliterated unless measures to improve supply are implemented. This particularly applies to regional parts of Australia.”

Mr Kelly said the proportion of income required to meet loan repayments increased to 34.8% or 0.9 percentage points.”

“The measure for housing affordability – the proportion of income required to meet loan repayments – ranged from an increase of 0.1 percentage points in Victoria to an increase of 2.3 percentage points in New South Wales.

“New South Wales is the least affordable state, where the proportion of income required to meet loan repayments is 44.6%.

“The Northern Territory is the most affordable with the proportion of income required to meet loan repayments 21.9%. It is now more affordable to buy than rent in the Northern Territory,” he said.

Mr Kelly said rental affordability over the quarter declined, with the proportion of income required to meet rent payments increasing to 24.0%.

“Rental affordability declined by 0.2 percentage points over the quarter but increase of 0.4 percentage points over the past 12 months nationally.”

“Tasmania is now the least affordable state to rent with the proportion of income required to meet rent repayments now a staggering 29.5%, 5.5 percentage points higher than the national level.”

“Western Australia is the most affordable, despite the proportion of income required to meet median rents increasing to 17.8%,” he said.

Subscriptions to HAR, and the underlying data, can be purchased from https://reia.asn.au/research/reia-data-har/

MARKET FACTS - DECEMBER QUARTER 2020

REIA


REIA REPORTS A RISE IN HOUSING AND RENTAL PRICES ACROSS MOST OF AUSTRALIA Real Estate Institute of Australia’s latest report, Real Estate Market Facts found that in the December quarter 2020, the weighted average capital city median price for both houses and other dwellings increased in the Australian residential property market.

Real Estate Institute of Australia’s latest report, Real Estate Market Facts found that in the December quarter 2020, the weighted average capital city median price for both houses and other dwellings increased in the Australian residential property market.

REIA President, Adrian Kelly said the weighted average capital city median price increased by 6.0% for houses and by 0.9% for other dwellings.

“The weighted average median house price for the eight capital cities increased to $825,205. Over the quarter, the median house price increased in all capital cities.

“At $1,211,488, Sydney’s median house price continues to be the highest amongst the capital cities, 46.8% higher than the national average.

“At $490,000 Perth has the lowest median house price across Australian capital cities, 40.6% lower than the national average. Over the 12 months to the December quarter, the weighted average capital city median house price increased by 6.6%.

“Other dwelling sales In the December quarter 2020, the weighted average median price for other dwellings for the eight capital cities increased to $601,345, a quarterly increase of 0.9%.

“Over the quarter, the median price for other dwellings increased in all capital cities except Adelaide. Over the 12 months to the December quarter, the weighted average capital city median price for other dwellings increased by 0.6%,” he said.

According to Mr Kelly, house rents In the December quarter, the median rent for 3-bedroom houses increased in Brisbane, Adelaide, Perth, Canberra and Darwin and remained steady in Sydney, Melbourne and Hobart.

“Over the past 12 months, the median rent increased in all capital cities except for Melbourne and Hobart where it remained steady.

“Other dwelling rents During the quarter, the median rent for 2-bedroom other dwellings increased in Perth, Canberra and Darwin, remained steady in Brisbane and Hobart but decreased in Sydney, Melbourne and Adelaide.

“Darwin had the largest increase over the quarter (6.6%).

“In the 12 months to the December quarter, the median rent for 2-bedroom other dwellings increased in Brisbane, Adelaide, Perth, Hobart, Canberra and Darwin but decreased in Sydney and Melbourne,” Mr Kelly said.

To order a copy, go to this link: https://reia.asn.au/product/reia-reports-subscription-remf/

For any further information please contact:

Olwyn Conrau, REIA Media Consultant,T: 0413 600 350 E: [email protected]

About the Real Estate Institute of Australia

Established in 1924, REIA is a federated body of State & Territory Real Estate Institutes representing 85% of Australian real estate agencies. We are a national advocate for the Australian real estate industry which is made up of 46,793 Australian businesses that employs 133,360 Australians.

For more information visit www.reia.asn.au

REIA


ACTSMART

FREE SUPPORT TO CUT ENERGY COSTS The ACT Government’s Actsmart program helps businesses and households in the ACT to save energy and water. We can help your business and the residential property owners and tenants you work with to reduce energy and water bills. Small steps can achieve big savings.

Here’s how to find out more about the advice, support and rebates on offer.

Free energy efficiency advice for everyone

• Find information, videos and webinars on ways to save energy and costs, and how to make your home or business more sustainable by visiting www.actsmart.act.gov.au.

Help for residential property owners

• For technical advice on ways to save energy, ACT residents can call the Actsmart Sustainable Home Advice line on 1300 141 77, Monday to Friday, 9am to 5pm, or email [email protected].

• The Actsmart Sustainable Home Advice Program also runs free webinars on home energy efficiency that are recorded and available online at www.actsmart.act.gov.au.

Help for tenants

• Actsmart offers renters in the ACT free home energy assessments and energy-saving materials - see www.actsmart.act.gov.au/renter-hea or email [email protected].

• People can do their own free home energy assessment with a new online tool tailored for renters in the Canberra region, by visiting https://actsmart-hea.com.au. This tool can also be used by rental property owners and homeowners.

Help for businesses

• Rebates are available to eligible ACT businesses wanting to upgrade to more water-efficient and energy-efficient technologies. This includes lighting, hot water systems, heating or cooling, refrigeration, insulation, toilets and tapware.

• To find out more, email [email protected], call 13 22 81 or visit https://www.actsmart.act.gov.au/what-can-i-do/business/business-energy-and-water-program.

By taking action you can keep warmer in winter, cooler in summer and keep your costs down. Take the first step today to feel the benefits all year.


PRACTICAL TIPS AND GOOD THINGS TO KNOW WHEN ATTENDING AND BIDDING AT ACT AUCTIONS

With auctions being more commonplace, nowadays in the ACT, high levels of buyer confidence in property have prompted more spirited bidding at these auctions. In these situations, bidders are often feeling rushed when seeing to make critical decisions. Please consider the following to help you understand the process more fully and maybe feel more confident during these pressure moments.

During these moments of high tension, auctioneers and agents can display varying degrees of understanding. At such times, or when the unexpected or unplanned happens, it pays to be aware of what may be happening or not happening as is required by legislation.

The following are a few shared thoughts and ideas for your greater understanding of the terms and conditions governing the conduct of auctions in the ACT.

"The auctioneer must identify and announce the bidder number when accepting a bid"

The auctioneer must announce the bidder number when accepting the bid. This is mandatory and is always required. Why? it ensures accountability afterwards and ALSO identifies who has this bid. With multiple bidders attending auctions, they need to know if their bid has been the one accepted or whether it's a bid accepted from someone else who is in the auctioneer's same line of sight.

"Registering a bidder after the auction has commenced"

You can register a bidder after the auction has commenced. The bidder will need to provide suitable ID and confirm they have read the contract for sale and will pay the agreed deposit.

As the selling agent, you indicate to the vendor that you will not register a bidder after the auction has commenced, it can only be with the vendor’s approval that they don't register the prospective bidder/s. A prospective bidder who has proof of ID, has read the contract for sale and can prove they can pay the required deposit is entitled to register and bid under auction conditions.

“Understanding the terms and conditions of an ACT auction”

While it may not seem important, just like the instructions to any new device or gadget, best practice is to encourage your bidders to understand the terms and conditions of auction to ensure that they are bidding with confidence on the day of auction.

Peter Walker


Please consider the following comments regarding a selection of these terms and conditions:

Condition 1:

The auctioneer may make one bid for the seller of the property at any time during the auction

Knowing a vendor bid must be announced if and when it is made during an auction is important. More important is to know that the auctioneer can only make a vendor bid below the reserve price set and it must always be referred to as a vendor bid. Making a vendor bid above the reserve price is illegal and worthy of an auctioneer losing their licence.

Condition 3:

The auctioneer may refuse a bid.

An auctioneer can refuse a bid not deemed in the best interests of the owner. Simply offering a higher bid than the previous bid is not always sufficient to be an acceptable bid. For example, a $1000 increased bid over $1million when bidding has been in significantly higher amounts beforehand and/or the value of the property is still well above this suggested incremental increase. This is at the auctioneers’ discretion and may be understandable if the perceived value of the property is significantly higher than this proposed bid.

Other reasons an auctioneer may refuse a bid from a registered bidder:

• A vendor can instruct the auctioneer not to accept a bid from someone they choose not to be able to own their home.

• While a bidder cannot be denied being able to register, their bids can be rejected, if the owner decides such.

• If it became apparent that a registered bidder reveals a condition to their bidding that makes the offer conditional, the bid can be rejected. For example, if a bidder advises that their bid is subject to the agreement of their partner who has not seen the property, their bids can be argued to be conditional and inconsistent with the terms and conditions of the auction. If a bid is made with the condition no further bids are accepted, this is again a conditional offer and able to be rejected by the auctioneer.

Condition 10:

The highest recorded bidder shall be the buyer

The name/s on the bidder's registration form is/are those that must go on the contract for sale. This removes the opportunity for a buyer to buy using another person to bid and buy the property.

Condition 12:

The buyer must sign the contract and pay the deposit immediately after the fall of the hammer

If the successful bidder refuses to sign the contract and pay the agreed deposit, immediately after the auction, they are vulnerable to being in breach of the terms and conditions of the auction. In this situation, the auctioneer may decide to refer to the under bidder, deem their

highest bid as a disputed bid as they have made a bid and not complied with the terms of the auction when buying the property at this bid amount. The auctioneer and agent can argue this point.

DID YOU KNOW?

The great thing about law is the differing interpretations of the same laws. The purpose of this article is to increase your understanding a be more knowledgeable about auctions.

Under ACT law, the seller can withdraw the property from sale at any time during the auction. Even if above the reserve price and announced onto the market. WHY? It is to enable/allow a seller/s the opportunity to withdraw from a sale if they change their mind in wanting to sell, or if they were under duress at the time of setting the reserve, or if they feel they have been misled by the agent with respect to where the buyer interest in the home has been. In such situations, the highest bidder is entitled to withdraw their bids. Especially, if they had been bidding on the condition the property was for outright sale and now this is no longer the case. These situations are possible, while very, very rare do occur. It’s just good to know and understand why such situations can and do occur.

AUCTIONS


By now you will be aware of the changes in legislation that came in on 23rd March, 2020.

We have had a year full of changes in legislation, Covid 19 legislations changing and updating often and a strange market, with lots of twists and turns.

Because of the year we have had, NSW Fair Trading gave us a reprieve on being fined for not being up to date with the new requirements for agents in NSW.

THIS ENDED ON 1ST APRIL 2021.

Already, NSW Fair Trading Inspectors are being very active in doing inspections, and it is expected that NSW Fair Trading will be increasing the number of inspectors and will be targeting all NSW regions to ensure all new regulatory and compliance requirements are being met.

So, here is a quick summary of the changes you must have implemented by 1st April 2021:

• You must have a new policy and procedure manual to show you have implemented changes

• A Gifts and Benefits Register must now be in operation

• There must be a Register of Who is Licensee at any time.

• There were positive changes to “Material Facts” regulations implementing time limits on the need to disclose certain facts

Fines are were being issued for Insufficient Seller Identification and those fines have now been expanded to include Insufficient Landlord Identification.

Fines that the writer has witnessed have included $1100 for a first offence, with possible $3,300 each further file in breach.

There is a NSW Fair Trading checklist available on their website: https://www.fairtrading.nsw.gov.au/__data/assets/pdf_file/0008/371888/Real_estate_fraud_prevention_guidelines.pdf

With the increase of identity theft and fraud, I suggest that using this form is the best option for Canberra transactions as well.

Agents are required to prove in writing the have sighted and/or obtained copies of 1 primary form of ID and 2 secondary forms. Then we must also prove we have ensured the correct ownership of the property was known to us at the time of signing the agency agreement.

Rosalie Douglas Real Mastery

There have been changes to the rules around submitting offers to Sellers, and how the Estimated Selling Price is monitored.

It seems timely to remind you that the Underquoting legislation is alive and well, in case your processes have slipped at all in this very busy time.

MAKING THE CHANGES SIMPLE FOR YOU

REAL MASTERY CONSULTING has produced a Policy and Procedure Manual that will be your best place to start - REIACT Members $350-00, all others $450-00. It comes with updates, all the new checklists and forms, ready for you to merge your company details on.

Order yours right now by emailing: [email protected]

We have provided a simple step by step checklist called “A Good Place to Start” at the front of the Manual. It couldn’t be simpler!

If you have decided to build your own Manual, or have purchased from elsewhere, you may find it useful to have the “A Good Place to Start” checklist to assist you to be compliant.

Just email [email protected] and we will send you a free copy.

DO YOU HOLD A NSW REAL ESTATE LICENCE?

TRAINING


It is not only the

initial outlay

that can be the

real cost. It is the

compounding

effects of

inefficiency. Tens

of dollars a day

compounds to

tens of thousands

of dollars over the

years.

IT can be considered costly, but it is the decisions made about IT that can be costly. Within 10% of the initial project timeline, you are likely to have determined 90% of the lifecycle costs. The possible mistakes are then generated from the outset, and you continue to pay for them throughout your Real Estate practice. It is key to get it right from the outset, but it is never too late to identify and address the issues. But it is likely that the cost of remediation increases over time.

Andrew Caudle www.4Data.com.au - We Fix IT02 6299 4433Your local Microsoft Gold Partner

It is not only the initial outlay that can be the real cost. It is the compounding effects of inefficiency. Tens of dollars a day compounds to tens of thousands of dollars over the years. Inefficiencies reduce your monetary resources and require a significant ongoing contribution. So it is important to understand your complete lifecycle costs for implementation and ongoing maintenance. Some implementations start high and drop off as you progress; or your initial implementation costs are low, and the overhead builds over time. Or you can choose to under-invest initially and continue to maintain low-maintenance costs – therefore under-budgeting your IT and the business capability. There are three mistakes to avoid for a Real Estate business:

3 BIG MISTAKES WITH REAL ESTATE IT


1. Misconception that more money buys more capability and quality.

There is the belief that the more you spend, the more features and capability you get. A mature, real-life example would be the purchase of a car; the more you spend, the better the brand, model, build or features. This is not always the case with IT. Within IT there is not always a direct relationship between money spent and the quality of the system implemented. The role of IT is to simplify work tasks, reduce labour, act as an information store, increase accuracy and increase the speed of results. IT is new, and as an emerging capability we are only a small way into the innovation journey. A business that spends openly with an ambition to gain the best IT systems could be a mistake. The mistake is because excess spending leads to complexity, confusing systems, expensive maintenance, complex dependencies and specialised IT support. There is, however, a direct relationship between money spent and complexity. More money results in more complexity. The KISS Principle works here: “Keep it simple, stupid”. It is recommended that you seek to minimise your expense and tie expenditure to identifiable value.

2. Unrealised, data capture and storage can be one of the biggest costs to an agency and is a slow resource drain; and, if done poorly, can be a waste.

A routine practice is to capture prospects or contacts information. There is a wide range of attributes collected such as: name, address, phone number, preferences, property details, etc. Real Estate success can be based on the successful capture and retention of prospects, clients and opportunities. The capture, updating and maintenance of the client data can be expensive in dollars, time, investment and missed opportunity (or opportunity cost). A daily contribution of data collection and data quality over time can grow to be a significant investment. For example, good quality data can be a component value of a rent role. The aim should be to get significant contacts – at high-quality integrity, for the lowest possible cost. A good-quality contact list improves Real Estate results and adds value to the agency.

3. Avoid inefficiencies generated by business systems and IT processes.

Time is money, and both of these qualities can be drained by inefficient business systems and IT processes. You should aim to avoid or reduce inefficiencies. Just like a leak, inefficiency grows in its impact over

IT

time. Aspiring to the most efficient processes possible is an idealistic goal. Inefficiencies can come in the labour guise of: rework, new work, and work without reward. Different IT systems, blended IT vendors and software applications, different operating systems software and confusing installations all generate inefficiencies. It is your labour force that interface with applications or plug the process gaps, and you should aim for staff to be as efficient and accurate as possible. If you are faced with a dilemma about inefficient capability, people can change the quickest; not technology or hardware. Staff just need to be taught the tools – directed, monitored, corrected and acknowledged.

It is recommended to spend additional time and effort in setting IT up right. Any additional time spent in planning is seldom wasted. Focus on the detail of things. Analyse and question what you are doing, and it is never too late to adjust and improve.

4Data has a strong partnership with the Real Estate Institute of Australia, and the Real Estate Institute of the Australian Capital Territory, and accordingly make the following offer to members: 2 free hours of consultation or technical support, obligation free, to address your Cybersecurity or IT related issues – No matter who does your IT.

So call and book you free 2 hours of consultation or technical support.


LOCKED-UP: AUSTRALIA HAS ITS WORST EVER REAL ESTATE AND HOUSING FINANCE CRISIS

Australia, we have a problem – a very big one. Whether you are an owner-occupier or a tenant, this problem effects the roof over your head, and it is not a COVID creation.

It greatly concerns me that no one truly understands the extent of what can only be described as a horrible mess.

Australia is currently in the midst of the two (2) biggest housing and finance crisis in our 230-year history as follows:

1 Grossly insufficient national rental stock to accommodate the 35 percent of Australians who choose to rent (Sydney and Melbourne are the exception to the rest of Australia). There is currently a crazy situation wherein 60 percent of Australia’s population are competing for only 25 percent of all the nation’s properties currently advertised for rent. Research conducted by Propertyology confirms that, as at the end of February 2021, 136 out of Australia’s 150 biggest towns and cities are officially in rental crisis (their vacancy rate is below 1.5 percent). Consequently, the cost to rent all over Australia is booming and people are living in makeshift accommodation such as cars, tents, and couches; and

2 Of the 65 percent of Australians who live in owner-occupied accommodation, there is a horrible mobility crisis for anyone with aspirations to move. For several years, the volume of properties listed for sale right across Australia has reduced to such a small volume that the system is now gridlocked. While Australia

has added 958,000 extra dwellings to our housing stock over the last 15-years, we now have 16 percent less properties change hands than 15-years ago – insane! One’s home is one’s castle, unless one no longer wants to live there. For those in that situation right now, it is one’s ‘prison’. Thow shalt not leave even if thou wants to.

While both crisis are different problems,

Simon Pressley Propertyology Head of Research

they have a common cause (a series of horrible decisions by various government departments over the last 6-years) and I am incredibly fearful that the wrong reins are about to be pulled, making the problem even worse for many years to come.

For the most comprehensive report ever produced about Australian real estate, mobility and housing finance, click here.

OPINION

https://www.propertyology.com.au/locked-up-australian-real-estates-mobility-and-rental-crisis/

real estate voice

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