realestate...realestate advertise through reinz the real estate magazine is a quarterly publication...

A REAL ESTATE INSTITUTE OF NEW ZEALAND PUBLICATION

RealEstateSUMMER 2017–2018$13.80 excl. GST for members

HAPPY & SAFE HOLIDAYS

In the last year over 9.1 million buyers, renters and investors viewed over 258,000 listings on New Zealand’s No.1 property site. So let our marketing help yours by listing on realestate.co.nz.

Statistic from Google Analytics and internal metric system 1/1/2016 – 31/12/2016.

9,176,448 Users

258,299 Listings

1 Location

REA0247 Auctioneer Workbook REINZ Update FP ad.indd 1 26/05/17 2:58 PM

IN THIS ISSUE

KEY CONTACTS

DISCLAIMER: Any views or opinions included in this publication do not necessarily reflect the views of the Real Estate Institute of New Zealand Inc but remain solely those of the author(s). REINZ is grateful to the companies who have advertised in The Real Estate magazine who enable us to bring this publication to our members. However, placement of advertising in this publication does not constitute an endorsement of the products and/or services shown. Neither is REINZ responsible for the accuracy of any advertising material.

Real Estate Institute of New Zealand Inc PO Box 5663, Wellesley Street, Auckland 1141 Phone: 09 356 1755 Free Phone: 0800 473 469 Fax: 09 379 8471 Email: [email protected] www.reinz.co.nz

Chief Executive Bindi Norwell Please refer all queries in first instance to Miranda Chetham, Ph: 09 356 1752, [email protected]

Advisory Services Lisa Gerrard, Chief Legal Officer Ph: 09 356 1760, [email protected]

Membership Team Mary Rackham, Membership Services Manager Ph: 09 356 1750, [email protected]

Karen Chambers, Membership Services Admin Ph: 09 356 1845, [email protected]

Cindy Stowers, Membership Services & Web Admin Ph: 09 356 1849, [email protected]

Events Team Louise Gordon, Events Manager Ph: 09 359 5454, [email protected]

Communications Dee Crooks, Communications/PR Manager Ph: 09 356 1753, [email protected]

Kim Thompson, Digital Marketing Executive Ph: 09 356 1847, [email protected]

Technology Reuben Billings, Chief Innovation Officer Ph: 09 356 1761, [email protected]

Finance Department Rowan Dixon, Chief Financial Officer Ph: 09 356 1762, [email protected]

PropertySmarts Deborah Barns, Product Manager Ph: 09 359 5452, [email protected]

Editors Dee Crooks, Editor; Kim Thompson, Sub Editor Ph: 09 356 1753, [email protected]

Design and Layout MacWork Design & Print [email protected]

Printing Inkwise NZ

ANTI-MONEY LAUNDERING: AN UPDATE

NEW ZEALAND’S POLITICAL LANDSCAPE

JOURNEY TO THE LAUNCH OF THE AUCKLAND HOUSING SUMMIT

GETTING TO KNOW OUR REINZ AMBASSADORS!

2017 AUSTRALASIAN AUCTIONEERING CHAMPIONSHIPS

RUAKURA INLAND PORT TO MAKE BIG WAVES IN LOGISTICS SUPPLY CHAIN

‘LIMITED AS TO PARCELS’ TITLES AND WHAT THAT MEANS FOR LICENSEES

OUT & ABOUT 10 FEATURES 14SECTOR GROUPS 39INTEREST STORIES 48EDUCATION 56LEGAL 58

ISSN 2324-3791

1814

2226394262

A Real Estate Institute of New Zealand PublicationSUMMER 2017–2018

RealEstate

ADVERTISE THROUGH REINZThe Real Estate Magazine is a quarterly publication distributed to 14,000 members of REINZ. Ad packages are available. If you are interested in advertising contact Kim Thompson - [email protected]

Become a Member Benefit supplier. Contact Dee Crooks [email protected]

Wanting to sponsor a REINZ event? Contact Louise Gordon [email protected]

• Industry leading systems and technology• Generous referral incentives between 159 offices nationwide• Access to some of the leading sales coaches in the industry• Setting the highest standards in customer service - 14,000

customers have given our salespeople 10/10 for Customer Service for the past 3 years

If you are thinking about making a move, we would love to hear from you.

Ray White (Real Estate) Limited Licensed (REAA 2008)

Make the move to yellowJoin the largest Real Estate company in Australasia

Get in touch with one of our offices today.

North ShoreAlbany Beach Haven Birkenhead Browns Bay DevonportForrest HillGlenfieldPinehillTakapuna

Hibiscus CoastManlyMillwater

Waiheke IslandWaiheke Island

0274 459 999 021 476 849 021 368 542 021 946 408021 924 435021 685 944021 476 849021 0281 4343027 274 7137

021 952 388027 459 4386

021 924 435

our industry such as the importance and benefits of using a licensed real estate agent. This is something we will continue to advocate for – especially as new players continue to enter the market promoting the ‘so-called benefits’ of going it alone.

I’m really excited about all the great things we have in the pipeline going forward – including the launch of our new property management proposition and our new Centre of Excellence with more support in education. AML will also be a key focus to ensure we are equipped as an industry for the changes in legislation. Data and technology initiatives and improvements will also be paramount. So, watch this space as we detail more information over the coming months.

I’ve genuinely enjoyed getting to meet so many of our members across the country over the last 12 months and I’ll look forward to more events and occasions to do this again in 2018.

No doubt, you’re looking forward to a break with family and friends over the Christmas/New Year break. We will be closing the office on Friday 22 December and we’ll be back in the office from 8 January.

On behalf of all the team here at REINZ, I wish you a Merry Christmas and a Happy New Year! I hope you have happy and safe holiday and return to the office refreshed and ready for a prosperous 2018.

CEO UPDATE

Bindi Norwell, CEO, REINZ

We’ve continued to work with Government and policymakers

on the big issues impacting the industry including Anti-Money Laundering (AML), the Residential Tenancies Act Amendment Bill, the adjustments to restrictions on high-LVR residential mortgage lending, the New Zealand Standard for the Testing and Decontamination of Methamphetamine Affected Properties (NZS8510), the Unit Titles Act, the REAA’s practice of police vetting licensees, the Osaki Case, the Cates Bill and the New Zealand Institute of Forestry (NZIF) request for an exemption application under the REAA Act 2008. In every submission we make and every conversation we have, we continue to push for change that benefits our members and minimises interruptions to your day-to-day activity.

As technology continues to impact our lives in a more meaningful and impactful way, we continue to look to technology solutions that provide flexibility and value to our members. We’ve introduced the new eForms platform, developed the REINZ House Price Index, released custom territories in the statistics platform and introduced the one-click membership renewal process. 2018 will bring more initiatives in the data and digital space.

Another priority for REINZ is to continue being a trusted voice in the real estate industry. We have increased our media presence considerably and have advocated on a number of important issues affecting

Celebrating a successful 2017

It’s hard to believe that a year has gone by since I first stepped through the doors at REINZ as CEO. From my perspective it’s been a great first year in the industry and together with the team at REINZ we’ve focussed on achieving a number of great things on behalf of our members and the wider industry. We are excited about 2018 and look forward to continuing to support our members going forward.

PropertySmarts NZ’s most up-to-date property information tool

Find. Compare. Build. Done!

Utilising our up-to-date data, real estate professionals can prepare a quality CMA in PropertySmarts with ease and speed. The best value property information tool in New Zealand.

PropertySmarts is exclusive to members of REINZ.

Contact us for your Free Trial - Get PropertySmarts today! Call us toll free on 0800 473 469 or email [email protected]

FREE2 Week

Trial

8 | The Real Estate Institute of New Zealand

ECONOMY UPDATE

What lies ahead for the economy in 2018?

Global growth in 2017 looks like coming in at around 3.5%, itself a meaningful

improvement over the 3.1% in 2016, and the highest rate of growth since 2011. Among the key developed economies, recent data suggests positive growth momentum in the United States, Japan and the Eurozone. Stronger growth in both the latter two is especially pleasing as they have been a key drag on global growth in recent years. The United Kingdom remains a laggard as Brexit uncertainty exerts its influence on activity.

We expect another modest leg higher in global growth to 3.7% in 2018, largely on the back of US fiscal stimulus, though tax cuts/reform are still not guaranteed.

Risks are ever-present. Right now, the biggest worry is a surprise resurgence in inflationary pressure and a repricing of the pace of monetary policy normalisation. But to highlight the uncertainties surrounding the inflation outlook, there is still a risk that normalisation proceeds too quickly in some countries and derails the nascent cyclical recovery. The risk of this appears greatest in the UK where we remain unconvinced that recent higher-than-expected inflation outcomes are a signal of an economy hitting up against capacity constraints and generating a sustained pick up in core inflation pressures.

As growth recovers and nascent inflationary pressures continue to build, central banks will continue to normalise monetary

We expect 2018 to be another year of solid growth for the global economy. This will see a continued absorption of space capacity, higher inflation pressure and continued normalisation of monetary conditions among the key developed economies.

Bevan Graham NZ Chief Economist

AMP Capital

New Zealand GDP% change

Source: Statistics NZ and AMP Capital

Forecast

QoQ

YoY

2002 2004 2006 2008 2010 2012 2014 2016 2018 2020

7

6

5

4

3

2

1

0

-1

-2

-3

SUMMER 2017–2018 | 9

ECONOMY UPDATE

conditions. The US Federal Reserve will continue to raise interest rates, while the European Central Bank will continue to print money (quantitative easing) but at a slower pace. So while overall global monetary conditions are gradually tightening, they remain highly stimulatory overall.

New Zealand is expected to fare well in this environment. We expect solid growth in the period ahead, though not as strong as we have some seen in recent years. Fiscal policy is likely to be more stimulatory than expected in the next year or so, though the precise quantum and impact will remain uncertain until we see further detail from the new Labour-led Government.

The labour market is tightening as the unemployment rate falls. We expect the unemployment rate to nudge closer to 4% over the next few quarters. As the labour market continues to tighten we would expect some degree of increased wage pressures to emerge. This may be given some added impetus with an expected faster rate of increase in the minimum wage than we had previously been anticipating.

One of the key considerations for 2018 is the extent to which net migration slows. The annual net inflow has already started to turn lower and we expect this will accelerate, especially given the improved global growth environment. The relative performance of the New Zealand economy compared to

other parts of the world is a key determinate of net migration trends.

While lower net migration means lower growth, it also implies slower growth in the supply of labour at a time when the labour market is already tightening. In that case, lower growth can actually coincide with higher wage and ultimately inflationary pressure.

But for now, with subdued wage growth, core inflationary pressures remain equally subdued. The Reserve Bank of New Zealand (RBNZ) is expected to leave monetary conditions unchanged for a “considerable period”. The Bank continues to flag no tightening in monetary conditions until 2019, though in their latest set of projections they have moved that forward from late-2019 to mid-2019, closer to our forecast of the first rate hike of the cycle occurring in late 2018.

We are not anticipating any significant change in the operation of monetary policy as a result of the change in Government. We expect employment will become part

of a broadened mandate, but the Bank already takes labour market conditions into consideration in setting appropriate stance of monetary conditions. Furthermore, a broadened mandate brings New Zealand into line with the dual employment and inflation mandates of the US Federal Reserve and the Reserve Bank of Australia.

We are also likely to see a shift in the interest rate decision from the Governor to a committee structure. Again, we don’t see this leading to any significant change as this is probably not significantly different from what happens already in practice. The Bank of England already sets monetary conditions under a committee structure.

Economic predictions always carry some degree of uncertainty. Throw a change of government into the mix and there is suddenly an increased level of uncertainty, at least until we see the detail of new policy. We will have more to say on the outlook for the New Zealand economy as that detail emerges.

For the latest thinking on markets, economies and trends visit ‘Enlightenment’, the AMP Capital blog site at www.ampcapital.co.nz/news/blog


OUT & ABOUT

Harcourts Team UptownMark Barry, of Harcourts Team Uptown in Auckland City, says after several years of rapid growth, sales are not as easy as they once were.

“A year ago, you could be fairly confident your property would sell quickly at a good price. Now selling is not as simple as listing your property. Vendors need to choose a sales consultant who will be creative, work hard and guide you carefully through the sales process.”

It is in this market that Mark and Anita Barry have started the new Team Uptown office on Queen Street. The team will be servicing the CBD and city fringe, with a specialty in apartments. Mark and Anita have worked in real estate for more than 30 years, and have seen many cycles of the property market. Mark says they are confident of achieving the best possible results for their vendors, no matter what the circumstance.

“There are a lot of new real estate agents leaving the industry now because they have only worked in a heated market and are finding the change difficult. That’s not us. We will work closely and creatively with our vendors to ensure they get where they want to be, whether the market is rising, falling or flat.”

Barfoot & Thompson’s Young Authors Challenge turns 10This year marks the 10th storybook published for the Barfoot & Thompson Magic of Reading programme, which publishes the top stories written by school-aged children through the Young Authors Challenge.

With the proceeds from storybook sales, the programme puts a book into the hands of every child who stays overnight in Starship Hospital or the children’s ward at Whangarei Hospital.

In the past 10 years, Barfoot & Thompson’s Young Authors Challenge has captured the imaginations of aspiring authors and generated huge sums of funding, including:● Over 10,000 entries received (with a record 2,240 entries

received this year)● More than $250,000 raised for the Starship Foundation● Books given to 166,000 young hospital patients.

For our tenth edition of the storybook, our ten winning young writers (pictured here with editors Maria Gill and John Parker) have put pen to paper and created rich stories about characters trying new things, entering other worlds or striving to get something they really want, to cautionary tales of being careful what you wish for.

The book is available to purchase from www.barfoot.co.nz/storybook.

First National Annual Shareholders Conference and charity auctionThe annual shareholders conference in Wellington was extremely well attended with standout presentations from Ashley Church, Cameron Bagrie and REINZ’s own Lisa Gerrard. The major highlight without doubt was the charity auction on the Wednesday night, the mercurial Peter Wilson from Timaru did an outstanding job of entertaining the crowd and loosening the wallets. A tear jerking presentation was delivered immediately prior from Tracey Perret from Middlemore which no doubt assisted the group’s incredible generosity.

Middlemore Foundation public relations officer David Kemeys said news of the generosity came as no surprise.

“I know Tracey Perrett from the National Burns Centre was quite taken aback by the support shown, but if experience has taught me one thing in this job, is that it does not pay to underestimate how committed First National and its people are to backing the company’s burn education scheme. Tracey was very quick to report back to us how enthusiastic the bidding was, which I have to say, I would expect, given most of First National’s people must be dab hands at this auction lark.”

SUMMER 2017–2018 | 11

OUT & ABOUT

SPOTLIGHT

From the official welcome reception poolside at Sheraton Mirage Resort through the following two days of formal conferencing, the event produced amazing speakers, memorable social occasions and important networking opportunities, while long-standing friendships and business relationships were re-kindled and forged.

Eighteen regions now make up RE/MAX Asia Pacific, with Convention delegates also coming from other countries including Canada, United States, Poland, Argentina, South Africa and Italy. Many arrived early to partake in meetings and the charity golf day at RACV Royal Pines Resort on Tuesday and Wednesday.

Traditional welcomes from New Zealand and Australia signalled the start of the formal programme, with the powhiri drawing great pride from the hosts and stirring emotion among the guests. This was followed by a stirring flag-bearing ceremony welcoming all nations with representatives at the Convention.

Special guests and keynote speakers included author and inspirational speaker, Li Cunxin of Mao’s Last Dancer-fame; REA Group’s Nigel Dalton, who ranks in the top 10 most influential people in technology in Australia; RE/MAX Italia’s Dario Castiglia; Sebastian Sosa, international affairs professional and owner of RE/MAX Argentina-Uruguay; and John Witheriff, Chairman at Minter Ellison Gold Coast and Director of the Commonwealth Games Authority.

The Superwomen Panel of Lisa Claes, Managing Director of CoreLogic; Candice Cordero, Chief-of-Staff with the REA Group; and Dotti Sosa, co-founder and partner of RE/MAX Argentina, was facilitated by acclaimed sales coach and trainer Cindy Tate and proved a much-talked about feature on the Convention programme.

Almost 100 delegates opted for a Thursday night filled with classic Aussie experiences at Paradise Country on the Gold Coast, with everything from sheep shearing and whip-cracking stockmen and women, to koalas providing photo opportunities galore.

Friday’s Convention programme included the 2017 Auctioneer of the Year. When three RE/MAX agents battled for the title, two were trying to reclaim it and one was a last minute stand-in with less than 24 hours’ notice.

While Greg Parker from RE/MAX Regency, Robina, ultimately won the 2017 title, Ben Kloppers from RE/MAX Realty Group in Warkworth was a true winner in every sense. Mr Kloppers had nobly stepped in when New Zealand contender Eric Chase from RE/MAX Zest in Remuera was unable to get to the Convention because of unforeseen circumstances. He gave his two

opponents, Greg Parker and last year’s winner Paul Gaffney, a good run for their money despite the desperately little preparation time he’d had.

RE/MAX® gave delegates at the Convention a sneak preview of its new modern design for Australia and New Zealand, which was officially launched on September 27 and works brilliantly across social, digital, mobile and print platforms. This was the first major brand refresh since the global company began 44 years ago. RE/MAX New Zealand and RE/MAX Australia were the first of the regions globally to roll-out the new brand.

The 2017 RE/MAX Asia Pacific Convention’s final event, a spectacular cocktail party on Q1’s 77th floor, incorporated the RE/MAX Asia Pacific awards where New Zealander Zoran Mulovski from RE/MAX Zest and Australian offices RE/MAX Regency, Gold Coast, and the Sunshine Coast’s RE/MAX Hinterland, won top awards.

Singapore, South Korea, Malaysia and Guam figured strongly in top office accolades, with Eduardo Santos from the Philippines named top residential sales agent. Denver-based Larry Oberly, Cheryl Luster, Adele Qi and Jan Repa from RE/MAX, LLC were on hand to present the awards.

RE/MAX, LLC, (Denver) was named the leading real estate franchise for the ninth consecutive year in the annual Franchise Times Top 200+® survey and in the Top 10 ranking of all US-based franchises for the second consecutive year.

RE/MAX New Zealand and RE/MAX Australia Managing Director Michael Davoren said “The Convention programme, with world-class, highly sought-after speakers, networking events and entertainment, was sensational, and certainly matched anything I’ve witnessed anywhere globally, RE/MAX or otherwise. And the Gold Coast turned on its perfect weather to top off the event.”

With a presence in more than 100 countries and territories, and a force of more than 116,000 agents, no other real estate brand matches RE/MAX’s global footprint and its selling power.

The fourth annual RE/MAX Asia Pacific Convention will be hosted next year by RE/MAX South Korea.

RE/MAX Asia Pacific Convention wins over the worldHundreds of RE/MAX Asia Pacific Convention delegates were wooed and wowed by the outstanding event hosted by RE/MAX New Zealand and RE/MAX Australia on the Gold Coast, Queensland, earlier this year.


OUT & ABOUT

Starship celebrates 25th birthday with Barfoot & ThompsonBarfoot & Thompson is proud to have been the Principal Event Sponsor for the Starship ‘Through the Looking Glass’ 25th Birthday Ball, which was held at the end of October.

This was a momentous occasion for all who attended. Some of the highlights included performances from Tiki Taane, the Royal New Zealand Ballet and Hollie Smith. But the real standout of the evening was the result of the fundraising efforts. Barfoot & Thompson auctioneer, Tony Loughran, commanded the room in a live auction which saw the event’s fundraising goal more than double.

The grand total of the auction, donations, and raffle sales, equalled over $530,000. These funds will go towards clinical priorities for Starship – vital equipment and improved facilities, staff professional development, research and innovation, and service improvement – all ensuring that Starship provides the best healthcare possible for the children of New Zealand.

Barfoot & Thompson wins Best Sports Event Sponsorship of the YearAt the New Zealand Events Association Awards in early October, Barfoot & Thompson won the Best Sports Event Sponsorship of the Year for their partnership with the World Masters Games 2017.

Sir John Wells, Chairman of the World Masters Games, highlighted that the staff at Barfoot & Thompson enhanced the whole experience through volunteering, competing or supporting more than 25,000 athletes who attended from New Zealand and around the world, and played a major part in having the event declared “the best World Masters Games ever” by International Masters Games Association president Kai Holm.

Sponsorship Manager Mildie Meyer-Els was a finalist for Event Sponsorship Professional of the Year. Although she didn’t win, Managing Director Peter Thompson acknowledged Mildie’s activation and dedication to the event, without which the company would not have won the Best Sports Event Sponsorship award.

“This award was a real testament to the leadership and teamwork involved in pulling everything together and I was honoured to accept the award on behalf of the company,” said Managing Director Peter Thompson.

Harcourts partners with the Auckland Diwali and Lantern festivals Harcourts is a new major partner to the Auckland Lantern and Diwali festivals in 2018, 2019 and 2020. Harcourts CEO Chris Kennedy says it’s a three-year commitment to two iconic Auckland events.

“Diwali and the Lantern Festival are joyful celebrations of the cultural diversity that makes Auckland the amazing city it is.

“Our Auckland, Whangarei and Bay of Islands franchise owners have banded together to sponsor the events and we couldn’t be happier to announce our partnership.”

Kennedy says Harcourts is proudly multi-cultural, represented by 2,500 sales consultants in New Zealand from a diverse range of backgrounds.

“Celebrating diversity, what makes us unique and what brings us together, is at the core of our Harcourts’ value of ‘People First’. That’s why this partnership is so important to us.”

The 2018 Auckland Lantern Festival takes place from Thursday 1 – Sunday 4 of March at the Auckland Domain, where the city will welcome in the Year of the Dog.

The Auckland Diwali Festival, or Festival of Light, will take place over two days in Aotea Square in October 2018.

Servicing one of the fastest growing parts of AucklandTop sales consultant Todd Murray has launched Northwest Realty, which will operate out of the Northwest shopping complex and service the Massey North area. Born and bred in Whenuapai, Todd says he is excited about the development happening in Massey North.

“Hobsonville, for example, is one of the fastest growing parts of Auckland. There is a lot of interest and my team and I know this part of our beautiful city extremely well.”

Although the property market has cooled over the past several months, Todd is very optimistic about his local area.

“This is an up and coming part of Auckland. It’s much more affordable than the central suburbs, but close enough for a city commute and our local amenities are outstanding.”

SUMMER 2017–2018 | 13

Real-iQ is an approved provider of the Skills Organisation’s New Zealand Residential Property Management (Level 4) Qualification

realiq.nz | 0800 REALIQ (0800 732 547) | L icensed under REAA 2008

Register your interest for the revised New Zealand Residential Property Management (level 4) qualification by emailing [email protected]

What gives you the right to tell your clients you are a professional Property Manager?

REINZ’s new Digital Product ManagerHamish Macdonald has recently joined REINZ as the new Digital Product Manager. Here he shares his background, why he’s passionate about building great digital products and his fur baby.

Hamish comes from a strong commercial background in some of New Zealand’s

most successful technology companies. His previous roles include Digital Product Specialist at Datacom and Global Development Manager at Trade Me.

As Digital Product Manager at REINZ, he provides product leadership to the array of products which REINZ offers their membership and other stakeholders in the real estate industry. Hamish defines Product Management as being the intersection of Technology, Business and Design. The aim is to create truly valuable digital products which are intuitive to use and provide a delightful experience. REINZ, by having the most up-to-date and comprehensive property data in New Zealand, is in the unique position to use this data to help

members provide the best possible service to their clients. Hamish looks forward to working with members, and other industry stakeholders, to fulfil this ambition.

Hamish has a strong ethos that technology done well can improve people’s lives and the New Zealand economy. He is passionate about building great digital products by involving users in the process and letting them guide the creation and enhancement of REINZ products for the future. Hamish describes himself as a bit of a geek when it comes to the latest trends in Product Management and ‘Design Thinking’, but he also possesses strong business acumen which helps ground a vision in commercial reality.

Hamish has an MBA from The University of Auckland which he focused around

innovation and technology. He wrote his final paper on the challenges for young New Zealand technology companies in retaining New Zealand ownership and exceeding $1 billion in market value. He has been very active in the New Zealand start-up community providing mentorship and voluntary work to help grow the local entrepreneurial eco-system.

Hamish looks forward to involving many of you in defining the future of REINZ products and shaping the real estate industry in New Zealand!

Hamish’s love of his life is his dog, David the Dachshund. When not paddle boarding on the Hauraki Gulf, David visits care homes and children’s hospitals as part of the Canine Friends programme.

FEATURE


New Zealand’s political landscapeOver the past couple of months, a significant portion of New Zealand’s attention has been focused towards activity in the Beehive. First came the election, then the coalition announcement and now policy announcements are coming thick and fast. Here we outline some of the announcements made as part of Labour’s 100-day plan that are likely to have an impact on the real estate industry.

Since the election, the Prime Minister, Jacinda Ardern, has confirmed that the following are all to happen during her first 100 days in government:

• Pass the Healthy Homes Guarantee Bill (No.2), requiring all rentals to be warm and dry

• Ban overseas speculators from buying existing houses

• Begin work to establish the Affordable Housing Authority and begin the KiwiBuild programme.

Here we outline the policies in a little more detail and give REINZ’s view on what the impact on the industry might be.

Healthy Homes Guarantee BillAccording to a report from the Building Research Association, nearly a third of rentals felt damp by varying degrees and 40,000 children a year are admitted to hospital due to diseases that are related to poor housing. Additionally, 1,600 New Zealanders’ lives are cut short by illnesses caused by living in cold, damp conditions.

While landlords already have obligations under the Residential Tenancies Act, there is no specific guidance about the exact standards they must meet to ensure warm and dry accommodation. In order to address these problems, Labour has confirmed that the Healthy Homes standards will cover heating, insulation, ventilation, draught stopping, drainage and moisture. Many landlords will already meet these standards, but for those needing to upgrade their properties, government grants of up to $2,000 for installing heating and insulation will be available.

The Hon. Phil Twyford, Minister for Housing and Urban Development says “The Government will run a consultation process over the next 18 months to ensure that tenants, landlords, public health and building science experts and industry representatives have an opportunity to get involved in creating robust minimum standards. The

minimum standards will be implemented through supplementary regulations that will be developed after the Bill has been passed, and after public consultation.

• the Healthy Homes Guarantee Bill (No 2) will commence on 1 July 2019

• all residential tenancies must comply with the regulations within five years of the Healthy Homes Guarantee Bill (No 2) commencing; and

• earlier compliance dates may be prescribed by the regulations in some circumstances.”

REINZ’s view is that we welcome the principles behind the Healthy Homes Guarantee as there are significant pockets of New Zealand’s housing stock that are below par by world standards. Any improvement to housing standards will be of benefit to the health and wellbeing of Kiwis – particularly in relation to respiratory illnesses caused by cold and damp housing e.g. asthma and rheumatic fever which can have significant impacts for children and elderly people.

However, the Bill will be more effective if it is practical and doesn’t penalise landlords or place an unnecessary cost burden on landlords. Many private landlords and even some investors may struggle to find funding to upgrade their properties to the requirements outlined in the Bill. This could cause them to sell their rental property to prevent financial difficulties, which may lead to a lack of rental properties. Government schemes that help fund compliance, such as insulation, will be beneficial and support the objectives of the Bill.

The other important factor that needs to be taken into consideration, is that many landlords may look to pass the costs of upgrading on to their tenants, which could potentially increase rents across the country.

The Bill will require a fine balancing act in order to avoid penalising one specific sector of the market.

FEATURE

SUMMER 2017–2018 | 15

Banning overseas residentsLabour believes that foreign speculators are pushing prices out of reach of first home buyers. In order to address this, the Government has announced a policy which means that foreign speculators will no longer be able to buy houses in New Zealand from early in 2018. Non-residents and non-citizens will not be able to purchase existing residential dwellings – only new build properties. Australians will be exempt from the new regulations.

To introduce the ban, an amendment to the Overseas Investment Act was required in order to classify residential housing as “sensitive”. Legislation is expected to be introduced before Christmas and take effect immediately once passed early in 2018.

REINZ’s view is that there is little data or evidence that clearly links the role foreign buyers have in allegedly increasing house prices. Looking across the Tasman, we can see that the impact of a similar policy on banning foreign buyers is minimal, with Australia still remaining the third most unaffordable country in the world.

Additionally, many of the large banks here have already made restrictions to offshore buyers without a local income, yet we’ve still seen the national median house price increase 1.2% year-on-year from $510,000 in October 2016 to $530,000 in October 2017.

Lastly, there is no evidence that all foreign buyers are speculators – a point reiterated by BNZ’s Tony Alexander. So, from our

perspective, we would just like some clarification on what the ban is trying to achieve. We await further clarity on how the ban will be implemented going forward.

KiwiBuild ProgrammeIn her speech to the Throne, the Rt Hon Jacinda Adern said: “The State will take the lead in building affordable houses. Through its KiwiBuild programme, this government pledges to build 100,000 high quality, affordable homes over the next 10 years; half of them in Auckland. A Housing Commission will work with the private sector, councils and iwi to cut through red tape, undertake major projects and ensure new, affordable homes are built rapidly.”

The programme will be driven by a newly-created Affordable Housing Authority, an urban development authority which will be an independent Crown entity. This authority will hold all surplus urban Crown land, and will be able to use this land in its development projects. It will partner with the private sector, councils and iwi in development companies to undertake major greenfields and revitalisation projects, and will deliver new, quality, affordable housing and the associated infrastructure.

It will also be empowered to cut through red tape and implement a fast-tracked planning process.

REINZ’s view is that any moves to help first time buyers get a foot on the property ladder such as affordable sections are

welcomed. Given the significant housing shortfall across the country – particularly in Auckland, the promises to build more homes are welcomed as we need to ensure there are enough houses to meet demand. However, any build numbers need to be realistic enough to take into consideration any constraints placed on the market (e.g. RMA, labour supply).

We need a mix of housing to meet the diverses needs of our population and more social and emergency housing needs to be built.

Any reduction of red-tape or use of pre-fabricated housing in order to speed up the process of building houses would broadly be applauded, as it helps to fill gaps in the shortfall of housing.

What next?This is just the key housing related policies announced in Labour’s first 100-days plan - there are of course a number of other policies that will be announced over time and that are likely to have an effect on the real estate industry going forward. Examples of these policies include the extension of the Bright Line test to five years, the removal of the ability to negatively gear investment properties, amendments to improve tenants’ rights and the Auckland petrol tax. As more detail on these policies is announced, we will continue to keep members updated on what is happening and what REINZ’s view of the political environment is.

FEATURE


COFFIX stores add value to commercial and retail settings

Natan Yehezkely Franchise Director, COFFIX

Like many areas of the real estate industry, the commercial and retail property rental industry can be challenging. The sector is subject to all manner of hurdles, one of which is attracting the right kind of tenant. Dependable, quality tenants who add value to a commercial or retail property setting and attract customers are worth their weight in gold.

One company who is proving to be just that kind of tenant, is COFFIX – an organisation founded in 2014 with a view to providing quality, affordable coffee and food to New Zealanders in an ethical manner.

COFFIX’s franchise model is based on a small, takeaway concept which allows COFFIX to keep their overheads low and pass the savings on to customers. COFFIX’s coffee is organic, fair trade and costs just $2.50 per regular cup which includes two espresso shots. An extra espresso shot, syrup or soy milk are free of charge. COFFIX also offers food such as sandwiches, bagels, muffins and wraps for just $2.50 each.

The first COFFIX store opened on ‘K’ Road in Auckland. It wasn’t long before there were queues of people outside the corner kiosk each day to get their caffeine fix. Hospitality industry worker Daniel Danin noticed the store and the crowds it was attracting and made an offer with his wife Rhonda, to lease the store with a view to purchasing it in 2015.

Things went so well for Daniel and Rhonda as the first official COFFIX franchisees that

they have since opened another store in Hohipere Street. Although only a few months old, the store already has a loyal following.

13 COFFIX stores are now up and running across New Zealand with two more stores in the pipeline. Wherever COFFIX stores pop up, foot traffic in the area picks up. The Elliott Street COFFIX store in Auckland is a case in point.

Prior to COFFIX occupying one of the mini-container style kiosks which line the street, the other kiosks were empty and people didn’t linger in the area. With the advent of the COFFIX kiosk, foot traffic in the area picked up markedly. The kiosk quickly became a ‘people magnet’ which attracted people from surrounding offices and businesses. Interestingly, all the other kiosks are now tenanted and there is a waiting list to lease them.

The Takapuna COFFIX store has enjoyed similar success, albeit via a slightly different format. Located as a stand-alone store within the Country Corner furniture shop, the Takapuna COFFIX store has proven highly

FEATURE

SUMMER 2017–2018 | 17

popular with locals and caters to a steady stream of coffee-lovers who inevitably end up browsing the adjacent furniture store while they wait for, or enjoy their coffee.

The Takapuna store is currently the only store of its kind. I am keen to roll out more stores of this nature as it has demonstrated that such formats are mutually beneficial for both COFFIX and the ‘host’ store as they entice people inside the respective stores, keep people inside longer which potentially boosts sales and maximises retail space. The associated rental costs are also lower as the rent is effectively split between COFFIX and the host store.

COFFIX stores make good business sense. COFFIX stores can help unlock and maximise the value of small, underutilised retail sites which are ‘off the beaten track’. Because the stores offer a takeaway menu only, they do not pose a threat to existing traditional cafes or their clientele who are typically more inclined to want a full, sit down café experience. Additionally, no consents are needed for kitchens or

PRIOR TO COFFIX OCCUPYING ONE OF THE MINI-CONTAINER STYLE KIOSKS WHICH LINE THE STREET, THE OTHER KIOSKS WERE EMPTY AND PEOPLE DIDN’T LINGER IN THE AREA. WITH THE ADVENT OF THE COFFIX KIOSK, FOOT TRAFFIC IN THE AREA PICKED UP MARKEDLY.

extraction systems given that all food products are delivered ready-made.

The simple, attractive appearance of the stores, coupled with quality, affordable coffee, good food and great service is a winning formula that keeps people coming back for more. This is a particularly important consideration in the context

of livening up quiet pockets in retail and commercial settings.

COFFIX has achieved a lot in a short space of time and has big things planned. If the company’s progress to date is anything to go by, it won’t be long before COFFIX becomes a household name.

FEATURE


Richard Manthel AML Solutions

Lisa Gerrard Legal Counsel, REINZ

Anti-Money Laundering and Countering the Financing of Terrorism legislation: An update In August 2017, the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) amendment bill was passed meaning that lawyers, accountants, real estate agents, the NZ Racing Board and high value dealers will now need to comply with the AML/CFT Act. Real Estate firms will need to be compliant from 1 January 2019.

FEATURE

SUMMER 2017–2018 | 19

REINZ has been actively involved in discussions and feedback on the Phase

2 AML/CFT reforms and how these will impact Real Estate firms. This has included submissions on the draft amendment bill, from the initial consultation paper released in August 2016 to submissions to the Select Committee.

AML Solutions, a specialist AML/CFT firm, has been working with REINZ and explains what this means for the real estate industry.

The use of real estate is an established method of money laundering internationally. Criminals buy high-value goods such as real estate as a way of laundering or concealing illicit funds. Criminals are drawn to real estate to launder funds due to:

• The ability to buy real estate using cash

• The ability to disguise the ultimate beneficial ownership of real estate

• The relative stability and reliability of real estate investment

• The ability to renovate and improve real estate (often in cash) thereby increasing the value.

Criminals are also motivated by property for profit or lifestyle reasons.

While some of the above may be hard to detect, there are many indicators or ‘red flags’ to assist to identify potential money-laundering. These red flags are well documented internationally and assist real estate firms in identifying their risks and training their staff. Such red flags include:

• The client appears to be acting on behalf of another person and is reluctant to identify those they represent

• The client sells, or the customer buys multiple properties in a short period of time

• Introduction of unknown parties at a late stage of the transaction

• A customer buys or sells above or below market value while apparently unconcerned about the economic outcome of the transaction.

Real estate capture under New Zealand legislationReal estate firms are captured as a ‘designated non-financial business or profession’ as they provide real estate agency work (within the meaning of section 4(1) of the Real Estate Agents Act 2008).

The real estate sector will be supervised by the Department of Internal Affairs (DIA) and real estate firms are considered to be ‘reporting entities’ under the legislation. Real estate agents will have obligations to meet from 1 January 2019.

What obligations will apply to real estate firms?Real estate firms will be subject to the same obligations as existing reporting entities. These include:

• Appointment of an AML/CFT Compliance Officer

• Preparation and maintenance of an AML/CFT written Risk Assessment

• Preparation and maintenance of an AML/CFT written Compliance Programme

• Training and vetting of staff

• Conducting Customer Due Diligence (CDD)

• Monitoring transactions for unusual behaviour and reporting any suspicious activity to the Police Financial Intelligence Unit (FIU)

• Filing prescribed transaction reports (in relation to domestic cash transactions over $10,000) to the FIU

• Filing an annual report with the DIA; and

• Arranging an independent audit of AML/CFT documents and procedures every two years.

Appointment of AML/CFT Compliance OfficerA reporting entity must appoint an AML/CFT compliance officer to administer and maintain the AML/CFT programme. This must be an employee who is, or reports to, a senior manager of the reporting entity.

Risk AssessmentThe first step in establishing an AML/CFT compliance regime is the preparation of a written risk assessment. The risk assessment must identify and assess the risks that the business reasonably expects to face from money laundering and financing of terrorism (ML/FT) across a number of specific business areas.

Compliance ProgrammeThe Compliance Programme must set out internal policies, procedures and controls necessary to detect money laundering

and to manage and mitigate the risk of it occurring. This is written document that addresses each applicable obligation under the AML/CFT Act with commentary on how, practically, that obligation is satisfied by the reporting entity.

Training and vetting Real estate firms must ensure that senior managers, the AML/CFT Compliance Officer and all salespeople are vetted and undertake AML/CFT training.

CDD The Act requires all reporting entities to conduct CDD on its clients – for real estate agents this will usually be the vendor. Conducting CDD requires the agent to collect and verify identity information on the vendor. This will include those individuals who own or control the vendor (in the case of companies and trusts for example). Where the agent is acting as a buyer’s agent, they will need to conduct CDD on the buyer.

Reporting of Suspicious Activities Real Estate firms will be required to report suspicious activity to the FIU, that is, activity which the reporting entity suspects may be related to criminal offending including money laundering and financing of terrorism.

Next steps for the IndustryREINZ will be providing brands and firms with more information over the coming months on solutions being developed for the industry and individual firms. The DIA is expected to release a sector risk assessment in December 2017 and will be providing guidance material during 2018. REINZ will continue to work with AML Solutions and engage with the DIA and the Ministry of Justice on this legislation including the finalisation of key regulation.

If you have any questions please contact Lisa Gerrard, Legal Counsel, REINZ ([email protected]) or Richard Manthel, AML Solutions ([email protected])

AML Solutions is New Zealand’s leading specialist AML/CFT consultancy and has been working with REINZ for more than 18 months in preparation for real estate capture. AML Solutions works across all sectors and has now assisted well over 500 reporting entities with their AML compliance programmes or audits. www.amlsolutions.co.nz

FEATURE


Health & SafetyDog Safety and Responsibilities in the Workplace

In the past 10 years, dog bites in Property Services have increased by a huge 49%. Are you aware that on the hazard register for real estate agents and property managers, dog bites rate second only to slips and falls?

Joanna Clough The Dog Safe Workplace

In 2016, The Dog Safe Workplace addressed REINZ Members at events

around New Zealand regarding the increase in dog bites in the industry. The presentation discussed the importance of being educated regarding canine body language. This is especially relevant to REINZ Members as your roles often take you onto properties where the owners may be out, leaving the dog home alone.

In 2016, I voiced concerns that if we don’t increase our awareness around dogs, by 2020 we could see around 16,000 reported dog bites per year. However, just one year later, I would like to retract that statement as it is in fact happening much faster than was originally projected. In 2015 more than 12,900 dog bites were reported across New Zealand. This was based on a 31% increase in dog bites over the previous 10 years. I had estimated that we would see around 16,000 dog bites by 2020. Unfortunately, the statistics for 2016 showed that more than 14,000 dog bites were reported for that calendar year. If this trend continues, dog bites can be projected to hit 16,000 by 2018.

But how does this affect the property industry?ACC has the most comprehensive reporting for dog bites available in New Zealand. However, their figures are still based only on bites that require medical attention. We

know from reports in Europe that less than 40% of dog bites are actually reported. I was surprised how many people approached me after each event I spoke at; they had either had a close call or had been bitten by a dog. This happened both when the owners were at home and when they had to enter a premises alone. There were also situations where loose dogs had bailed up agents when they were out marketing. Most went unreported either because they felt it was not a serious enough situation, or they were concerned about losing the listing.

This is extremely concerning for our personal health and safety. When the new Health and Safety at Work Act was introduced it added a new level of personal responsibility and created PCBU’s (person conducting a business or undertaking). This role also allows for individuals to be personally responsible for workers under their jurisdiction.

So how can you keep yourself and your team safe?Education is the best option. If you understand the fundamentals around canine body language you are in the best situation to help yourself. How many times have we heard – don’t worry about Fluffy he has never bitten anyone – well that is until he does. What’s that saying? There’s always a first time for everything.

FEATURE

SUMMER 2017–2018 | 21

IF THIS TREND CONTINUES, DOG BITES CAN BE PROJECTED TO HIT 16,000 BY 2018.

Dogs don’t go out of their way to bite us. But for thousands of years we have trained our dogs to protect our property and they do a really good job. Consequently you need to ensure that you understand that Fluffy may be great when their owner is there but Fluffy could turn to Cujo when the owner is not around. Or possibly even the other way around, as Fluffy may be very protective of his owner.

Many organisations have policies such as Don’t enter if there is a dog or make sure the dog is locked away from where you are, either in a kennel or room. This sounds great, but it only works if the rules are strictly followed, and the dog stays where it has been put. We often hear stories of dogs being let out, or escaping, with dire consequences. In some situations you may

not be able to follow these policies, as you have not been informed that there is a dog on the property (this can be common with rental properties).

Here are some tips if you find yourself at risk:• DO NOT run• DO NOT look the dog in the eye• Get something between you and the dog• If the dog does try to bite you, use your

folder, an umbrella or your bag and let the dog bite that (anything you have on you that is not YOU)

• Do not let go of the object as the dog will lose interest as soon as you let it go and come back to you

• Move away and don’t turn your back on the dog

• Learn the stress signs that a dog will show when it is scared and may bite.

Training yourself and your staff on risks associated with Health & Safety is essential. With the new laws in place, it is important to understand that you cannot delegate responsibility.

When training your staff ensure that you are using a reputable company, that the training programme is designed to specifically suit your requirements. Get testimonials and

references, there should be a process to check your staff are tested on what they learn, is there a reporting process or LMS for your Health & Safety records, can they offer the same training nationally and internationally for your business, and ensure that your staff understand that it is their, as well as your, responsibility to be trained in the latest safety programmes? This could save you a lot of time and money down the track. We did a case study last year for a company that reported 15 bites, initially they thought it had cost them $23,000 until we investigated. The cost to the company was actually over $85,000.

Businesses have to consider all aspects of Health & Safety including cost and think about how much money they could have saved with training (remember all Health & Safety training is 100% tax deductible). Education is the key to reducing most risks including dog bites. In turn, it reduces an organisation’s exposure to the associated costs and trauma involved in dealing with the aftermath.

Organisations: www.dogsafeworkplace.com www.barkbusters.co.nz

Some local Council offices may also offer this service.

NEW AREAS OPENED LAST MONTH - Borders Kerikeri, Paihia/Russell | Borders Napier Borders Papatoetoe | Borders Christchurch Commercial

AVAILABLE LICENCE AREAS - Wellsford | Auckland x 20 | Wellington x 6 Tauranga x 2 | Mt Maunganui, Papamoa Hastings | Nelson | Queenstown

Professional, Relaxed Real EstateLICENSEE SALESPEOPLE AND AREA OWNERS WANTED IN ALL AREAS NOW,

a Salesperson License only is required for both opportunities.

NZREAA

PHONE Carl Barakat 021 687 999Alison Barakat 027 272 3194Kieran Barakat 021 949 108

OR EMAIL [email protected] Realty Limited, REAA Licensed 2008

For full details visit www.myownrealestatebusiness.co.nz

FEATURE


Journey to the launch of the Auckland Housing Summit Leonie Freeman

Housing Strategist, Thehomepage.nz

Auckland’s housing issues affects all Aucklanders. Whether it is the child who misses out on a maths teacher as their school struggles to recruit teachers because of housing costs, or the medical practice whose experienced nurse leaves Auckland to live in the provinces. The shortage of safe, stable and affordable housing is affecting our children, our communities, our co-workers, our employers, our city and our lives. Housing impacts everyone.

Auckland is not alone in facing these issues, other cities around the country such as Christchurch and Queenstown, are staring down the barrel of the same gun pointed at Auckland.

There’s no sense finger pointing, blaming others or just talking about the problem. We know problems and we know many of the solutions. What we need is action. There is no single organisation, idea or person, no matter how innovative or powerful, that can solve Auckland’s housing crisis.

Transformative social change in the face of complex issues is not achieved by ‘top down’ initiatives alone. Aucklanders need to step up and be part of the solution. Which is why I formulated a small, voluntary team who were equally dedicated to the task of showing what could be done by collaboratively working together and addressing the issue in an innovative and transformational way.

In addition to myself, the Committee comprised:

Anna Crosbie Russell McVeagh

Robyn Phipps Massey University

Kitty Rothschild Knight Frank

Paul Gilberd New Zealand Housing Foundation

It was Collective Impact in action. It was all about connecting minds and collective action. It was about leadership, standing up and doing what’s right!

JourneyWhy did I stand up? It’s simple. I’m a proud Kiwi who believes we live in the best place in the world. I’ve spent a career involved in many aspects of the property sector – development, valuation, property management – both in the public and private sector often leading strategic transformational change.

There is a favourite quote of mine by Margaret Mead which says:

NEVER BELIEVE THAT A FEW CARING PEOPLE CAN’T CHANGE THE WORLD. FOR, INDEED, THAT’S ALL WHO EVER HAVE.Instead of looking around to find out who should solve our Housing crisis – I have had to wrestle with the question – what was I personally prepared to do to help fix the Housing crisis?

The work I have embarked on has been about two things:

1. Improving the understanding of the housing issues in terms that all of us can recognise and understand

2. Presenting a comprehensive solution to Auckland’s housing crisis with a plan of how to go forward as a stake in the ground.

The summit and the solution to Auckland’s housing crisisThe first independent not for profit Auckland Housing Summit was held on August 1st, 2017. 130 people attended representing a wide range of public and private sector organisations including Property Developers, Lawyers, Planners, Architects, Construction companies and material suppliers, Community Housing Providers, Independent Directors, Government officials, Council representatives, Infrastructure providers and Property consultants.

FEATURE

SUMMER 2017–2018 | 23

The goal was to create a future in which all players in the housing industry work together to ensure every Aucklander, every New Zealander, across all sectors of the community, has adequate, decent and affordable housing.

Chief Human Rights Commissioner David Rutherford, addressed the 130 participants by acknowledging the basic rights of every New Zealander to housing.

“Our Governments accept that international human rights obligations must be considered when drafting legislation, regulations and policy. To obey the rule of law is to meet those obligations. Our Governments have promised for decades to respect, protect and fulfil our human rights in New Zealand,” said Mr Rutherford, “What we seem to have forgotten here in New Zealand, is that the human rights obligation of the State to fulfil the right to adequate housing is not owned by any political party. Housing has become a political football - a way to score points and curry favour, an ‘us and them’ conversation.”

Establishing an independent not for profit organisation, tasked with solving the City’s housing woes is crucial - and just one

STRENGTHENINGCOMMUNITIES

HOUSING AT THE HEART OF CONNECTING

AUCKLAND AND STRENGTHENING

COMMUNITIES

EXISTING HOUSING QUALITY

HOUSING SUPPLY

HOMELESSNESS

HOMEOWNERSHIP

SOCIAL HOUSING

FIGURE 1

of the key actions identified in the first Auckland Housing Summit report released. A copy of the report can be found at aucklandhousingsummit.co.nz

A wide range of innovative concepts were identified at the Housing Summit but it was clear that all sectors identified the need for a comprehensive approach and a plan with targets and accountabilities. Better quality data, clear benchmarking and reporting shared amongst everyone involved, was also vital to ensure key initiatives were on track.

The report highlights the importance of “a central vision” and engaging all Aucklanders on the journey to fix the issue.

A successful Collective Impact initiative has 4 key steps:

1) A Vision 2) Structure 3) Housing Framework 4) A unified Action Plan.

1. A Vision Imagine if we likened our housing journey to a waka journey. To get moving, the first step is having a clear goal – and a finish line. The leader stands in the middle giving directions

and everyone is facing forward paddling in unison. All the paddlers are pulling together as a collective.

At the moment, in our housing, we have no one co-ordinating and leading the way, the paddlers are all on the waka but are pulling in different directions. You know what then happens – the boat sinks!

My vision is made up of a simple central statement of aspiration, and six key activity areas with goals attached to each of them. These are the deliverables.

The six activity areas are: Housing Supply, Home Ownership, Existing Housing Quality, Social Housing, Homelessness and Strengthening Communities. The targets are illustrated in FIGURE 1 above.

2. Structure I am committed to a Collective Impact approach which involves:

• multiple players working together toward the same goal and measuring the same things

• Shared accountability with differentiated responsibility for achieving the outcomes – which means taking out the “blame game”

• Increase tenure options for tenants

• 80% of residents rank their community as highly desirable

• 95% of existing housing to be categorised as warm, safe and dry

• 420,000 new homes by 2045 with 125,000 by 2025

• 50% of which are to be classified as ‘Affordable’

• Home ownership levels to reach 65% including Maori and Pacific Islanders by 2025

• 3,000 more social housing places by 2018

• 20% of social housing to be provided by the Community Housing Providers by 2025

• Comprehensive social housing solution for the elderly

• An end to homelessness in central Auckland by 2022

FEATURE


• Having all the groups - government, non-profit, philanthropic and private sectors as partners

• A framework with specific rules and guidelines so that the organisations actively co-ordinate their action and share lessons learned.

In New Zealand, a successful Collective Impact initiative has been The People’s Project in Hamilton. In 2014, a goal was set to end homelessness in the city by 2016. Through the collective action of local and central government, and not for profit organisations, 254 people were housed in just two years with support provided to 311 people seeking housing solutions. Of those housed, 94% remain in their own homes two years later. Further details are available on the website www.thehomepage.nz

3. Housing Framework A major barrier to conceptualising a solution to the housing crisis, is that we’re likely to be overwhelmed by the sheer number of parts that make up the housing jigsaw puzzle.

There are numerous moving parts. The debate has identified some of them. It’s the demand side. No, it’s about supply.

Immigration’s to blame. No, it’s the investors. It’s the banks. It’s the planning limits strangling city growth etc.

I liken it to a Rubik’s cube. If you turn one bit – it can stuff up everything! So, before we can focus on fixing our housing issues, we need to make sense of it first.

As a starting point I’ve created a Housing Framework. The objective is to provide the necessary structure to help make sense of all the pieces of all the housing jigsaw to determine exactly where things sit.

It starts in the middle with demand – understanding the different types of purchasers – home owners, investors, and social housing providers as well as tenants – both private tenants and social housing tenants.

The next ring has 3 key influencers

• Community and City Perspectives – this is the wider perspective of what the communities and our city at large needs, wants and directs

• Policy/Regulatory Environment – this includes government legislation and policy as well as Auckland Council strategy, unitary plan, consenting, infrastructure and development costs

THINK OF IT AS SOMETHING LIKE A THREE MUSKETEERS INITIATIVE: ‘ALL FOR ONE AND ONE FOR ALL.’

• Housing Market Influencers – this is everything from the Property Market and where in the cycle are we, demographics, supply and demand, economic factors, costs of construction, rental market, property prices, financing.

The next ring reflects Housing Delivery. This section covers land and infrastructure supply, size quality and type of development projects, who is doing what in the private sector, iwi, not for profit and public sector. Other issues like industry capacity and capability, partnering models and risk management.

The final circle is communication. It’s about telling the story through a range of communication avenues. See FIGURE 2.

4. Unified Action PlanWe need a clear unified action plan.

It’s that old adage – if you fail to plan, then you plan to fail.

How would we plan:

1) We’d figure out where we currently are within the context of the Housing Framework.

2) We can then overlay Council and Government plans to understand what

FEATURE

SUMMER 2017–2018 | 25

they are working on along with other players in the housing market

3) We can then determine who is responsible for what

4) What are the key outcomes, targets and timeframes

5) We can then identify and test new policy and delivery initiatives focused on improving outcomes – short, medium and long term. Learnings can then be shared amongst all.

6) Tell the story – transparent and open communication to all the housing participants and to all Aucklanders

The idea is – like the waka analogy – we can all paddle together so we are all clear on where we are going and how we get there together.

Since the summit was held, feedback from groups and individuals has been overwhelming and a number of initiatives are being explored as a result of the day.

It is clear from this first summit that we have the ideas, people and organisations to solve the housing crisis. What is required now, is a show of hands and commitment from other key market players, policy makers and

FIGURE 2

other groups to ensure an immediate and collective approach.

How do we get from here to there? Having read this far, right now some of you will be thinking – Leonie, you’re a bit crazy. And that’s okay – there have been some days when I have been working on this, when I’ve thought I’m a bit crazy! But just before I start taking the pills, I remind myself of the times when people have thought I was crazy before.

On 13 August 2017 we marked the 21st anniversary of the launch of the website now called realestate.co.nz. I was responsible for its launch 21 years ago – back then it was called realenz.co.nz. The reason I mention it, is that today, it feels like something that was always inevitable. But 22 years ago, when I first started talking about it, it wasn’t. RealENZ was one of the first major commercial websites launched in NZ, and it was born at the same time as Telecom launched its internet service Xtra.

There was huge resistance in the real estate industry to doing something together. Technology wasn’t common place and many people in the industry used to say to me – Leonie – no one will ever buy property this way. It would be fair to

say that believers and supporters weren’t exactly thick on the ground!

So, when people have said over the years my vision sounds a bit crazy I often say: “I get that. You see what we have now. But, in this case, I think I can see clearly, what could be and how to get there.”

The journey around solving Auckland’s Housing crisis follows exactly the same path and I have no doubt that in another 22 years – 2039 – we will look back to today and think my housing solution was just as obvious a decision to make.

It starts with all of us asking ourselves - What am I prepared to do to fix our housing crisis?

The thing is, we all have plenty of ideas – there is no shortage of them. The challenge is to co-ordinate them and bed them into action, and that’s where the hard work begins.

I say this to all Aucklanders. If Auckland wants to solve its Housing crisis, then it is up to us as Aucklander’s to solve it.

If you want to be part of this, show your support. Let me know what you can do, help with or support and fund. Let’s go on this journey together.

DEMAND

POLICY/ REGULATORY

ENVIRONMENT

COMMUNITY AND CITY

PERSPECTIVE

HOUSING MARKET

INFLUENCERS

HOU

SING

DELIVERY HOUSING DELIVERY

H

OU

SIN

G D

ELIV

ERY

HOUSING DELIVERY

INTERNET COMMUNICATION RADIO COMM

UNIC

ATION

TELEVISION COMMUNICATION SOCIAL COMMUNIC

ATIO

N

PR

INT

CO

MM

UNIC

ATIO

N

FEATURE


Getting to know our REINZ Ambassadors!

Ashburton, Hamish Niles Property Brokers – Hastings McLeod

1. Years in the Industry 27 years

2. Why did you get into real estate? Offered a position at Hastings McLeod and saw it as a career

3. Cats or Dogs? Dogs

4. How do you take your coffee? Prefer black tea

5. If there was a movie about your life, what actor/actress would you cast to play you? Robin Williams

6. What was the last gift you gave someone? Rimu chopping board

Blenheim, Mark Davis Marlborough Real Estate 2008


2. Why did you get into real estate? Family business, so trained around the dinner table

3. Cats or Dogs? 1 cat called Ziggy and 1 dog named Chase (I do most of the chasing)

4. How do you take your coffee? Hot chocolate boy, I never really liked coffee

5. If there was a movie about your life, what actor/actress would you cast to play you? The actor to play me would be either Will Ferrell or Bruce Willis depending on movie genre

6. What was the last gift you gave someone? Surfing lesson for my wife’s birthday

7. What is something unexpected about you? I can still barefoot water-ski

Central & Gulf Islands Mike Cavanagh imarket Real Estate


2. Why did you get into real estate? Had been an investor for some years prior so had the buy/sell bug.

3. Cats or Dogs? Nil

4. How do you take your coffee? Tea thanks

5. If there was a movie about your life, what actor/actress would you cast to play you? The late Robin Williams, he was so clever & funny, and I like the funny side of life

6. What was the last gift you gave someone? Money – I truly believe in the pay it forward principle

7. What is something unexpected about you? Played bass guitar in a rock band for five years as a teenager

Central & Gulf Islands, Kitty Rothschild Knight Frank New Zealand


2. Why did you get into real estate? To be honest… I got into real estate initially to try it out (giving it 6 months) while I looked for a real job (and found it to be an unreal job that’s taken me around the world)

3. Cats or Dogs? Dogs (I’m the Kitty who is allergic to cats!)

4. How do you take your coffee? Takeaway flat white, but in a café a long black (have you ever burnt your tongue on a long black in a takeaway cup?)

5. If there was a movie about your life, what actor/actress would you cast to play you? Whoopi Goldberg

6. What was the last gift you gave someone? The gift of my time and tenacity as a part of the Steering Group who organised The Auckland Housing Summit in pursuit of an answer to the question: What will we do to solve the Auckland housing crisis?

7. What is something unexpected about you? I began my working life as a Cardio Thoracic Operating Nurse (in my next life I will be the Surgeon)

Central Otago Lakes, Chris Campbell Bayleys Queenstown


2. Why did you get into real estate? Being a real people person and having grown up in Queenstown, my local contact and knowledge made real estate sales a natural industry for me to get into

3. Cats or Dogs? Big golden retriever named Jake

4. How do you take your coffee? 3 shot flat white, small cup

5. If there was a movie about your life, what actor/actress would you cast to play you? Jim Carey

6. What was the last gift you gave someone? Travel voucher

7. What is something unexpected about you? I can play the drums

FEATURE

SUMMER 2017–2018 | 27

Christchurch, Vanessa Golightly Ray White Morris & Co

1. Years in the Industry 13 years2. Why did you get into real estate?

I completed a business degree and then wanted to travel so took a job as a receptionist at a real estate office just by chance to earn some money. I then decided it was the industry for me and have worked my way up through ever since, to now being a licensee agent and business owner

3. Cats or Dogs? Cats, Watson is the boss of our household too

4. How do you take your coffee? I like to mix it up, sometimes I’ll even have tea!

5. If there was a movie about your life, what actor/actress would you cast to play you? I wasn’t so sure so I went to the ever handy Google and took a quiz, “You may always be the classiest one in the room, but you aren’t afraid to get your hands dirty when going gets tough. You need someone bold and fierce to play you, and the Golden Globe-nominated Kerry Washington is the perfect choice.”

6. What was the last gift you gave someone? My husband just had a milestone birthday and bought himself a new surfboard and said it was from me, does that count?

7. What is something unexpected about you? I was a business owner at age 27 thanks to the opportunities afforded me by other senior members of the industry

Dunedin, Judd de la Roche Living Corporation


2. Why did you get into real estate? Nothing is as exciting as the real estate industry – the people, their homes, their scenarios and we have buyers and lawyers in the mix along with many

other professionals. It is a dynamic work space and one that is ever changing and challenging

3. Cats or Dogs? I am never home long enough to pat a cat or dog, let alone feed one, so sadly it would probably not live too long, so I choose to let others love these great life companions

4. How do you take your coffee? Americano with cream or cappuccino with cinnamon. It is good to mix it up during the week especially when feeling particularly sugar deprived

5. If there was a movie about your life, what actor/actress would you cast to play you? Leonardo DeCaprio of “Wolf of Wall Street” fame – some days there are similarities

6. What was the last gift you gave someone? A reduction in a commission so some young people could afford their first home

7. What is something unexpected about you? I am a closet conspiracy theorist, have an affinity to anything resembling a gadget, fascinated with politics, believe New Zealand’s news reporting is the country’s biggest handbrake and think all plastic bags should be banned

East Auckland, Stephen Young Barfoot & Thompson Dannemora


2. Why did you get into real estate? It was a combination of things – it’s something I’ve always wanted to get into as I love buildings and architecture, and at the time I had a business which ended up breaking up, so I needed to find work

3. Cats or Dogs? Cats – we have two cats, a rabbit and a budgie at home

4. How do you take your coffee? It depends, but I like a cappuccino with no topping or an Italian espresso with plenty of sweetener

5. If there was a movie about your life, what actor/actress would you cast to play you? I wouldn’t have a clue!

6. What was the last gift you gave someone? A trip to Wellington for my wife’s birthday

7. What is something unexpected about you? I appreciate the chance to get into the garden, but something people probably don’t know about me is that when I go on holiday I never stay in hotels. I often end up undertaking volunteer work e.g. recently I’ve done some work for churches in the Philippines – it’s all about giving back

Franklin, Wayne Rawson Barfoot & Thompson


2. Why did you get into real estate? To escape from the binds of salary constraints

3. Cats or Dogs? Not necessary, I already have one wife, four children and eleven grandchildren!

4. How do you take your coffee? Long black (must be hot)

5. If there was a movie about your life, what actor/actress would you cast to play you? Hugh Laurie

6. What was the last gift you gave someone? Gift card to our grand-daughter Hannah for her birthday

7. What is something unexpected about you? I can cook, knit and sew. Very metro-sexual

Greymouth, Andrew MacDonald Harcourts West Coast


2. Why did you get into real estate? I started as a real estate cadet

3. Cats or Dogs? Both

4. How do you take your coffee? Flat white, one sugar, tulip cup

5. If there was a movie about your life, what actor/actress would you cast to play you? Jason Statham

FEATURE


6. What was the last gift you gave someone? The best gift of all… A hug

7. What is something unexpected about you? I collect vinyl records

Kerikeri, Sharon Roberts Real Property Kerikeri


2. Why did you get into real estate? Something completely different from the air stewardess I was in my youth, more fitting for a 40 year old I thought!

3. Cats or Dogs? Dogs, Dogs, Dogs!

4. How do you take your coffee? Preferably free from one of the other agents in the office, but always de-caf!

5. If there was a movie about your life, what actor/actress would you cast to play you? Glenn Close in her ‘Fatal Attraction’ days…. Same hair…

6. What was the last gift you gave someone? An outfit for my 18-year-old daughter that she couldn’t afford or live without (she said) and then I find it screwed up on the floor, unworn and still with the labels on…

7. What is something unexpected about you? I love to be in bed by 8pm

Napier-Hastings, Elanor MacDonald Ray White


2. Why did you get into real estate? It looked like fun, people, houses, nice car, busy, oh and flexible haha


4. How do you take your coffee? Half black with trim

5. If there was a movie about your life, what actor/actress would you cast to play you? Drew Barrymore

6. What was the last gift you gave someone? A lovely leather phone case

7. What is something unexpected about you? I lived in 10 cities and 3 countries, visited at least 7 other countries, had no fixed abode for nearly 2 years before I was 19. No wonder I love houses

Nelson, Darryl Marshall Haven Realty

1. Years in the Industry Commenced in 1978 (39 years)

2. Why did you get into real estate? This was a progression in a selling career after ten years involved with contracting/capital plant employed with a major New Zealand company specialising in earthmoving/forestry/trucking/general contracting industrial equipment. The attraction for me at that time was our industry providing recognised community standing combined with the lifestyle and the opportunities that were on offer (as they are today) to set your own income level in conjunction with potential business ownership

3. Cats or Dogs? I prefer a woof woof to a meow meow. Having said that our family has never had a dog, but we have 5 cats!

4. How do you take your coffee? I am not a coffee follower, however I am a long term addict to green tea for my caffeine

5. If there was a movie about your life, what actor/actress would you cast to play you? Jeff Bridges. He has performed in a variety of roles. I feel sure he could do someone like me justice or he could get one of his talented family as a fill-in if needed

6. What was the last gift you gave someone? A noisy green toy Kea for my granddaughter

7. What is something unexpected about you? I still slide (slowly) down a mountain on a board without unplanned air

New Plymouth, Garry Malcolm RE/MAX Team Realty


2. Why did you get into real estate? Saw an opportunity to build a career and business

3. Cats or Dogs? Neither

4. How do you take your coffee? Trim flat white

5. If there was a movie about your life, what actor/actress would you cast to play you? Robert Redford

6. What was the last gift you gave someone? A gift voucher

7. What is something unexpected about you? My favourite musician is Cat Stevens

Palmerston North, Andy Stewart Professionals, Unique Realty


2. Why did you get into real estate? I was looking for a different career after serving in the New Zealand Army for 21 years

3. Cats or Dogs? Nil at present, usually I have a dog

4. How do you take your coffee? Usually cold by the time I get to drink it

5. If there was a movie about your life, what actor/actress would you cast to play you? Liam Neeson or Rowan Atkinson

6. What was the last gift you gave someone? Souvenirs for my Grandkids on return from a recent trip to the UK

FEATURE

SUMMER 2017–2018 | 29

7. What is something unexpected about you? I love riding my Harley Davidson Screamin’ Eagle Road King Motorbike with the Central District Harley Owners Group (HOG). Singing Karaoke

Rodney, Greg Allen-Baines Harveys Real Estate - Warkworth


2. Why did you get into real estate? Had a car accident which put me off work for a year – sold my sport retail business during that time and got into real estate while rehabilitating. My intention was to get fit enough to join a friend who had a PI business. Enjoyed real estate so much, I stayed

3. Cats or Dogs? Like all animals, I live on a lifestyle block and have a feral house cat called Harriet Houdini

4. How do you take your coffee? Flat white or long black – no sugar

5. If there was a movie about your life, what actor/actress would you cast to play you? Steve Martin

6. What was the last gift you gave someone? I gave my wife the pleasure of my presence and a work colleague a good bottle of Irish Whiskey

7. What is something unexpected about you? I like to cook, do my own ironing and like classical music, the opera and hate ballet

Rotorua, Ann Crossley Rotorua First National


2. Why did you get into real estate? I had a bad experience when selling a home, so I thought I could give better service.

3. Cats or Dogs? 2-year-old Mini Schnauzer called Sam

4. How do you take your coffee? Trim flat white

5. If there was a movie about your life, what actor/actress would you cast to play you? I love Helen Mirren

6. What was the last gift you gave someone? A baby layette for Baby Henry

7. What is something unexpected about you? I’ve just bought an electric bike so that I can bike to work and discover Rotorua’s wonderful bike trails

South Auckland, Garry Mason Harcourts


2. Why did you get into real estate? Moved to Tauranga from Wellington and unable to find a high enough paying job in my chosen career, architecture, so switched to real estate starting with Matthewson Real Estate under the guidance of Bill Matthewson who was REINZ president at the time

3. Cats or Dogs? Have had both but currently have a Maltese named Bella

4. How do you take your coffee? Long black

5. If there was a movie about your life, what actor/actress would you cast to play you? George Clooney (of course) in the movie “The Dreamer”!

6. What was the last gift you gave someone? Tickets to the latest Roger Hall play, “Last Legs”

7. What is something unexpected about you? Difficult question – represented Wellington for 5 consecutive years in soccer as a junior

Southland, Jonothan Irving Professionals, Invercargill


2. Why did you get into real estate? I met someone who was selling real estate and I felt like a change after 10 years working for a government department. Real estate represented more freedom and creativity and less bureaucracy!


6. How do you take your coffee? Long black, flat white, as long as there’s caffeine in my coffee, I don’t mind. I don’t even mind instant/Nescafe!

7. If there was a movie about your life, what actor/actress would you cast to play you? Kevin Costner

8. What was the last gift you gave someone? A side of salmon to a colleague

9. What is something unexpected about you? I’m an accountant by training, so I’m very predictable and don’t like surprises. One thing that people might not know about me, is that I collect things – especially old fashioned toys, for example I’ve got some old steam engine trains and a steam engine boat from 1910

FEATURE


Taupo, Rosie Harvey Harcourts


2. Why did you get into real estate? Looking for a new challenge in my life and knew real estate business owners who encouraged me into the industry

3. Cats or Dogs? Dogs. Love them and have 2

4. How do you take your coffee? Flat white, soy if I’m watching my dairy!

5. If there was a movie about your life, what actor/actress would you cast to play you? Elizabeth Hurley, elegance and class

6. What was the last gift you gave someone? Baby clothes for my new granddaughter Teana Rose

7. What is something unexpected about you? Although I have a tough exterior I have a gentle heart

Tauranga/Bay of Plenty, Dickie Burman Manager and Licensee for Bayleys Tauranga and Success Realty


2. Why did you get into real estate? Due to the re-structuring of the company that I was working for, I was uncertain of my future within the company and at the same time a friend and I saw an opportunity to enter the real estate industry, so we did. The rest, as they say, is history

3. Cats or Dogs? Neither really

4. How do you take your coffee? Long black, straight

5. If there was a movie about your life, what actor/actress would you cast to play you? Jack Nicholson

6. What was the last gift you gave someone? Money, it’s easy and you never have to supply return receipts if they don’t like it

7. What is something unexpected about you? Growing up I always thought that I would end up being a farmer (like most of my family). I guess in some ways I have, I have just traded animals for people

Thames-Coromandel, Neil Christie Richardsons Real Estate


2. Why did you get into real estate? I had been in fabric retailing in Thames, which was in decline, and was offered the opportunity to join the Pauanui sales team

3. Cats or Dogs? None at the moment

4. How do you take your coffee? Prefer tea

5. If there was a movie about your life, what actor/actress would you cast to play you? Don’t honestly know, early years possibly Peter Sellers but he’s long gone

6. What was the last gift you gave someone? Mickey Mouse lollipops brought back from Disneyland LA for our staff from our recent holiday with our grandchildren

7. What is something unexpected about you? A great sixth sense

Timaru, Julian Blanchard Harcourts


2. Why did you get into real estate? I was asked to join Harcourts as the boss thought I would be a good fit

3. Cats or Dogs? Cats!

4. How do you take your coffee? I don’t drink it

5. If there was a movie about your life, what actor/actress would you cast to play you? Benico del Torro

6. What was the last gift you gave someone? A scooter for my son

7. What is something unexpected about you? I stood as a Labour Party candidate in 2005, 2008 and 2011 elections

Wellington, Vicki Collins Property Specialists


2. Why did you get into real estate? Accident…. Moved from Australia and was looking for a different career path

3. Cats or Dogs? NO, 8 grandchildren

4. How do you take your coffee? Vanilla latte

5. If there was a movie about your life, what actor/actress would you cast to play you? Pink would have to give up singing and become the actress from my movie, she is crazy, fun and full of craziness/unexpected

6. What was the last gift you gave someone? Trip for my husband’s 50th

7. What is something unexpected about you? My 8 grandchildren and the fact that I am an Aussie living in New Zealand

Whakatane, Chris Timmins Harcourts Whakatane


2. Why did you get into real estate? I knew it was an opportunity to meet people. It’s a people industry, and I enjoy talking to people and hearing their stories – especially first time buyers

3. Cats or Dogs? Neither

4. How do you take your coffee? Black espresso

5. If there was a movie about your life, what actor/actress would you cast to play you? Clint Eastwood

6. What was the last gift you gave someone? Packaged wine

7. What is something unexpected about you? Nothing really, I wear my heart on my sleeve

FEATURE

SUMMER 2017–2018 | 31

Figuring out social media

Social media is no longer just a place to watch cat videos, post photos of your dinner, and keep up with the latest (Twitter) wars. It’s also been around for too long, and is used by too many people, to be called a fad - in fact, more than 2 billion people are on Facebook around the globe alone, more than the population of China! With more than 3.2 million Kiwis active

on social media, it is so important that you and your business are there to engage and build relationships with people online.

Our research shows that when people are looking for property, 44% of people go online first before they do anything else. So, if you’re an agent that is online and has a social media presence then you are steps ahead of many in the industry. Social media is the new 0800 number. It’s where your customers are and how they connect to businesses now and in the future - so you need to be there too!

There is no question that it’s time to face the music and admit you can’t get away without using Social Media to enhance your business or personal brand anymore.

As an agent your personal brand is very important, so a consistent, and polished social media presence is important across Facebook, Instagram and Twitter.

Social media advertising is another huge opportunity for real estate agents; for example, on social media you can target families that are about to have kids come of school age, with properties in the school zones; or older people with children leaving

Wendy Thompson CEO, Start Social

home, if you have the perfect down-sizing apartment you want to suggest to them – this is easy to do on social media.

However, we recognise it can be hard getting started or knowing what to do next once you’ve set up your pages. How often do you post? What do you post? Where do you post it? Are you supposed to be serious or funny?

For some of you, you may think you have social media completely figured out and you’re doing everything you need to be doing. But what if there was more you could do? To help REINZ members navigate the world of social media, Start Social has partnered with REINZ to provide all REINZ Members the opportunity to enrol in our Real Estate specific Social Media course, which can help you get started, or improve on what you already do. As an added bonus, this course is eligible to count towards your non-verifiable hours for your REAA requirements and REINZ Members receive 30% off the price.

“With Millennials and Generation X’s reaching the first-time buyer stage of life, it’s more important now than ever to be in this space where they are,” says REINZ CEO, Bindi Norwell.

Bindi continues, “Social media is so important, particularly with real estate agents, as it is such a fantastic way of connecting with not only buyers, but also sellers. It can really give you that competitive edge to be able to connect and network with people in a space that they are comfortable in.”

Social Media is constantly evolving, so Start Social will give you access to live chat and exclusive communities to keep you up to date with the latest changes, so you can get back to what you do best!

Visit the REINZ Member Benefits page to get your discount code, and start learning today!

Wendy Thompson is a digital media marketer who has seen first-hand the power of social media connecting businesses with their local communities and how it can help businesses of all sizes. She has taken this knowledge and with her skills and expertise of working with large global brands and kiwi brands, she has distilled it down into what you need to know as a real estate professional in New Zealand.

Social Media Course that meets REAA non-verifiable training requirements

FEATURE


Pat Houlihan, next chapterAfter serving many years in the workforce with a large portion of that within the real estate industry, Pat Houlihan of Property Press has rightfully earned his retirement. We spoke to Pat about his years at Property Press and what he plans to do as he enters this next chapter of his life.

With more than 20 years at Property Press, Pat’s enthusiasm and dedication

to the publication and to the industry as a whole, is tenacious. His passion for Property Press is clear as he explains the expansive readership base, noting it is the most read weekly publication in New Zealand. “People love residential property, regardless of whether they are looking to buy or not,” says Pat Houlihan. “Property Press is a catalogue to aspire to, and to inspire; in the same way we flick through food magazines, knowing we may never cook those meals, we try to live vicariously through those who will.” Pat also speaks highly of those that he has had the pleasure of working with at Property Press, “Over my wonderful, long-serving career, the team has had very low turn-over and is made up of extremely loyal people, with a few working through to retirement in the past 20 years.”

More than 14.3 million copies of the Property Press are printed per annum (some weighing over a kilo each), add to that, 4% growth in the last year and it is clear, Property Press is continuing to perform well. This growth, on top of an already strong number proves Pat’s opinion that the increase of digital activity and online marketing is not a challenge for print, nor is it in competition, but acts as a supporting role and works in collaboration.

Now, without the call of 9-to-5 employment, Pat has time to refocus his attention on family, travel and running, noting it will be very

nice to travel to Europe (as he does most years in September) and not have to check his emails at midnight. The freedom of time now also offers Pat, and his wife Margaret, the opportunity to visit two of their children in Sydney without concern of a return date.

Though make no mistake, retirement for Pat is not synonymous with ‘doing nothing’. Pat is part of a strong running group that partook in the North Shore Marathon this September, and is currently training for the Rotorua Marathon in May 2018. Pat hits the pavement most days and puts a lot of us to shame with his dedication and skill in running. There is no doubt that Pat will keep busy during retirement, having already flown down to Invercargill in early October to be honoured and inducted to the Southland Rock & Roll Hall of Fame, although he admits his musician days are now a “past life” and he will not be hitting the stage again.

Pat has thoroughly enjoyed his time at Property Press and in the wider real estate industry, having made many life-long friends throughout the country. Pat expressed his delight at being involved in celebrating the “collegiality of the industry – to quote the very eloquent Dame Rosanne Meo.”

Pat would like to thank the real estate profession in New Zealand for their support of Property Press and for their personal support. “Everyone has been wonderfully supportive, and I look forward to remaining in frequent contact with those in the industry.”

AS AN INSTITUTE, WE ARE EXTREMELY GRATEFUL FOR PAT’S LEADERSHIP AT PROPERTY PRESS AND THEIR SUPPORT. WE ARE LOOKING FORWARD TO CONTINUING TO WORK WITH JASON – OUR TWO ORGANISATIONS MAKE A GREAT TEAM. DAME ROSANNE MEO

FEATURE

SUMMER 2017–2018 | 33

Plugged In around New Zealand

Launched in 2014, the intention was to provide an action packed full-day

seminar for sales consultants, managers and business owners to attend and ‘get plugged in to real estate’. Since then, the concept of providing knowledge, inspiration and information tailored specifically to a region has continued.

In 2017, REINZ delivered seminars in Wellington, Napier, Christchurch and Auckland. We also trialled two seminars targeted specifically to the rural sector, scheduled the day before Southern Fieldays and Fieldays Mystery Creek commenced. Both these events were designed to make it practical yet worthwhile for our rural sector members to attend and from the positive feedback received, we will look to repeat this format in 2018.

So, what exactly is a ‘Plugged In’ Seminar? Offering 3.5 non-verifiable continuing education hours, they are designed to support our members to do their day jobs in a professional manner. Different to the content of verifiable training which is set by the REAA, REINZ presents four key speakers, generally consisting of:

• a representative from the regional council or local government discussing updates affecting the real estate sector and the implications of changes and enhancements in the local region

• an economist from the Reserve Bank of New Zealand speaking on the economy, local housing market and national trends

• Lisa Gerrard, REINZ Chief Legal Officer, outlining current advocacy and advisory work undertaken on behalf of members on topics such as national methamphetamine standards and Anti-Money Laundering; and

• a dynamic keynote speaker like Dr Ed Timings to inspire attendees and provide a healthy dose of positivity and motivation.

The main advantage of these seminars is that external speakers address the audience on topics they wouldn’t necessarily hear about in their daily roles. In Wellington, for example, Dame Fran Wilde spoke on ‘Future Proofing Wellington’s Infrastructure’. To put it simply, what Wellingtonians need to understand about the implications of another large earthquake in their region and how they should prepare for that eventuality.

At the ‘Rural Plugged In’ Seminar in Hamilton, Christina Finlayson from Ballance Agri-Nutrients delivered a compelling presentation highlighting how we need to make farm systems more sustainable (and profitable) in the future. Christina also highlighted practical ways to reduce the huge problem of nitrate leaching in New Zealand.

In October, Peter Townsend, CZNM and outgoing CEO of Christchurch City Council

addressed our Canterbury members about the rebuild and his future vision for their city. Peter shared some videos with footage that most of the audience had never seen before.

Another innovation in 2017 has been to invite a panel of three local top performers from different brands to discuss their ‘tips and tricks’ of how they successfully do the business. Facilitated by Jim Davis, REINZ Rural Board Sector Group Representative, these panel discussions were very popular.

The 2017 ‘Plugged In’ Seminars have only been possible to deliver with the ongoing support of our major partners Property Press and Rockend and rural partner, Agri HQ. REINZ is very grateful for the contribution of the Board members who MC. The Events team look forward to delivering more seminars to our members in 2018.

Did you know that research has proven if you drink more water between specific hours of the day it will help you stop waking in the early hours of the morning? Or that the projection by the Wellington Lifelines Group is that if ‘the Big One’ was to hit Welly, around 9,000 would be dead with $12 billion damage caused to buildings and infrastructure? This is the type of information our members learn when they attend a ‘Plugged In’ seminar.

Dr Ed Timings addressing Christchurch REINZ members in October


OBITUARY

Obituary: Jimmy Whitmarsh (RAFVR 1511787)District Secretary to Canterbury Westland Branch of REINZ

James Jarvis Whitmarsh lived a very full life. He was a man of many skills, loyal and honest, with old-school values and a heart of gold.

1920 – 1930 Jimmy was born on 5 April 1924 in Peckham, London to a family of modest means. He went to school at Dulwich College – a prestigious school – and had good academic skills especially in mathematics which later helped him with his induction into the Royal Air Force (RAF).

1930 – 1940Jim was 16 when World War Two began.

When war was finally declared, he was selected for the RAF Volunteer Reserve and with his high scoring math skills he was selected to Bomber Command as a navigator. He went into Bomber Command and trained for three years.

During his time in Bomber Command he undertook 23 bombing missions. The average was 12 before being shot down. Jimmy was extremely lucky but this was also a testament to his navigation skills.

In 1946, while stationed in the South of France, he travelled up into Germany because a lot of his personal details were with a squadron there. He travelled through Paris, Brussels and finished up in Cologne.

Whilst in Cologne, Jimmy had a sobering moment: he stood in front of the Cologne Cathedral which had been badly pockmarked from bomb damage. The surrounding area around the Cathedral was flat – just piles and piles of brick rubble. He said that he stood there with tears in his eyes because he felt responsible for the damage and destruction.

Post war – 1950sPost war Jimmy went into the building trade with his knowledge of carpentry as he had trained pre-war as a joiner-carpenter.

In the mid-fifties he trained as a building surveyor. He joined one of the largest property companies in England, Hillier Parker, where he worked as a building

SUMMER 2017–2018 | 35

OBITUARY

surveyor. Being very savvy he formed his own building company - Jarvis Long and Partners - which he subcontracted for building and maintenance work under Hillier Parker. He stayed with Hillier Parker for 18 years.

During the early fifties Jimmy was a competitive cyclist with his partner and first wife Elma. They were competitive in racing tandems, and together they had Jimmy’s eldest son Eric in 1951.

In the late fifties Jimmy married his second wife Edith.

1960sIn the early sixties he decided that he wanted to go sailing, so he built a boat from plans in the living room on the second floor of their terraced house in London. On completion, a large bay window on the upper floor had to be removed to get the boat out. This created press coverage for the local newspaper.

Also during this time Jimmy became competitive in motor sport hill climbing with his precious Singer Le Mans.

In the late sixties Jimmy became involved in local body politics. So much so, that he became a City Councillor for the Basildon ward.

1970s – The great New Zealand immigrationIn the early seventies he was a part of the Edward Heath government as a Conservative Councillor.

During that time the Idi Amin regime rose to power in Uganda. The regime was responsible for the killing and eviction of many people there. Jimmy looked at the effect this had on the UK economy and decided that a future in England was not looking so good. He thus decided to shift his family to either Canada or New Zealand. He chose Christchurch, New Zealand because of its English-Anglican heritage.

In New Zealand, Jimmy recreated his life and rekindled his career in real estate.

In 1973 Edith passed away and he became a solo father. Having no support structure in New Zealand he decided to head back to the UK, but before he did he bought land in Cass Bay – which he thought could sell remotely if he decided never to return.

However, the UK did not appeal to him and he returned to Christchurch.

He continued to work in real estate in a property management role with H G Livingstone and Co. before getting a job as secretary, administrating Cashmere High School – where he stayed for several years.

Jimmy applied for the District Secretary’s role with the Canterbury Westland Branch of REINZ and was interviewed by Peter Cook and Nobby Grant. Shortly before the interview Cook and Grant received a phone call from a party expressing

concern that Jimmy was known to be stroppy at times, a person who did not suffer fools gladly and one who would not let go of the bone in a contest. Just the man we need, said Grant and Cook and Jimmy was appointed and proved to be the most loyal, honest and reliable Secretary one could hope for.

Jimmy stayed in this job until retirement. This was an ‘era of change’ for real estate and he was a big part of that.

On retirement he created the Canterbury Property Network which he was involved in, from a voluntary perspective, for many years.

Jimmy’s enthusiasm and commitment to help has been widely appreciated by almost all of those he helped and served in real estate and it is a tribute to him that many of the old timers in the Institute attended his farewell service recently.

1980s, 1990s and new millennium In the middle of 1980s Jimmy’s son Jamie bought a Lotus Seven. This rekindled Jimmy’s love of motorsport and together they campaigned the car competitively for over 15 years in classic racing. Being a competitive driver at heart Jimmy also decided he wanted to have-a-go himself. Jimmy being Jimmy, he prepared his MGB road car for racing and together Jimmy and Jamie competed at the same race meetings over several years.

Although Jimmy retired he was never without a project and with him being a carpenter and builder he was often called upon to build whatever was needed. When the Canterbury-Westland Real Estate office was relocated to a new office in Armagh Street, Jimmy designed and personally built a suite of meeting tables for the new Board room.

In the year 2000, because of his role as a Harbour Warden in Lyttleton, Jimmy was invited to be a tour guide on HMS Endeavour and travelled to London to join the crew of the Endeavour Millennium voyage. Jimmy also made model boats – the one he was most proud of was his model Endeavour.

This was a time when yet again Jimmy rekindled some of his passions. Jamie bought a Bilge Keeler yacht which they both lovingly restored and took sailing. Also around this time, Jimmy’s affection for vintage cars led him to find a Singer Bantom restoration project in a field and he set to create Singer Nine Sports Special.

So, all in all, Jimmy had an amazing life. It had ups and downs, but it was a great deal of fun in between. He was a loyal and enthusiastic Secretary and a great friend to many of us and the REINZ. He will be fondly remembered by all.

FEATURE


“A phone, a desk, and a month”The old school method of recruitment and training is long gone. At least it should be.

Real Estate veterans tend to smirk a bit at this. I try to be polite when they tell me about how in ‘their day’ they were given a phone, a desk and a month. I try really hard, but let’s be honest, that’s just stupid.

The world has changed a lot since the veterans were in charge. Real Estate

brokers are expected not only to be master of their own domain, but offer expert advice around law, finance, investment, marketing, technology, renovation, design and more recently, video production.

The onboarding process for new real estate agents needs a fresh approach. Forward thinking agencies have updated their induction systems to reflect this evolving required skillset. Those that haven’t will find it increasingly difficult to remain competitive.

Tying together practice and theory, here are some of the key things to look for in a standout induction system.

Long term view Day one is a myth. Day one is probably more like day ten, maybe more. A lot of work should already have been done by now. The technical set up and website log ins are the obvious, but ideally the internal conversations regarding what kind of approach to training will work best and what kind of mentor will create synergy have already been had. Here is where one size fits all programmes go belly up and individual approaches thrive.

In this respect, the induction progress begins long before day one and should continue long after the formal training is all wrapped up. At City Sales we are working on the set up well in advance, and though our formal training is complete by week 4, the induction coaching process continues to run for 12 months. Anyone who thinks they can learn all there is to know about real estate in four weeks is kidding themselves.

Hands dirty Mistakes are you best friend, getting a ‘no’ is your motivation and physically putting yourself in the shoes of the buyer is some of the best training you can get. Applying the practicality of the profession to a robust training regime can take your new recruit from novice to super-star.

Jumping in at the deep end is not the same as getting your hands dirty.

What we are looking to do here, is to

supplement the necessary legal, tax and numeracy training with in-the-field training. We take our agents on City Tours where different City precincts are explored, from the Viaduct Quarter to student accommodation to high turnover investor stock. We require our newest brokers to see, touch and experience the product before representing it. There’s little more embarrassing than not being able to work the magnetic entry gate on your first open home.

Geeks ruleTechnology is the way of the future, but all tech and no tenacity doesn’t make for a successful mix. They go hand in hand and so the onboarding process needs to cover both. For those who aren’t digital natives, this bit can get a little tricky so it’s important to constantly gauge each new broker’s understanding and retention when it comes to digital tactics.

Included in technology training should be a basic understanding of “reach” and how digital can outperform traditional in terms of this. Social media, engagement, multi peak platforms, AdWords and online behaviours should also be covered just enough to give a broad understanding without creating a digital phobia.

Whilst covering the role of technology in the sale process, it’s really important to stress that technology alone won’t list and sell for you. Old-school skills and tactics have a home in real estate, and the best brokers are proficient in both.

Yes coach!Sink or swim is a stupid approach. It’s costly for the employer, frustrating for the broker and has a high chance of a snake eyes dice roll – everybody loses. Utilise your best asset – your team.

Assigning a coach or guide to oversee the onboarding process brings reassurance to the new starter, accountability to the agency and a sense of responsibility or task ownership for the coach. The added benefit is feedback from someone who knows what they’re talking about as to how well the new starter is adapting to the training. It’s

Scott Dunn Marketing Manager City Sales Ltd, Licensed Agent

FEATURE

SUMMER 2017–2018 | 37

sometimes hard to predict future success in a job interview setting, however, the first week will tell the whole story.

Alongside the coach we have a mentor. The mentor is not part of the management team and so offers impartiality and a level of informality which works well to help settle nerves and answer questions a new starter might not wish to ask their boss on the first day. We often see our mentor pairings blossom into fantastic working relationships.

The good, the bad & the uglyWe like to give feedback in a formal setting from day one, and we have a ‘good, bad and ugly policy’. We have a reputation for telling it like it is for a reason.

Following day one, formal feedback sessions are conducted weekly, then

monthly as speed is picked up. Goal setting is a huge part of feedback and a great way to track progress and stoke motivation. Ideally, we are looking at preventing any major mistakes before they happen, push new agents towards the multi listing goal as quickly as possible and refine technique along the way. New starters should prepare themselves to accept criticism and suggestion as we shape them into specialist brokers. Criticism must always be thoughtful and constructive, but a thick skin helps.

Soon enough the formal feedback sessions become future planning sessions on how brokers can best run their business within our business. By this time we’re looking to build confidence whilst making sure the path of progression remains clear and attractive.

The last ingredientYou have to love this job to do well with it. And this has to be instilled from day one.

How do you do this? Make it enjoyable. It’s easy for an agency to be so focussed on the bottom line that they forget about a person’s basic wants and needs – to come to a job they love with people they get on with and have a few laughs with along the way. We may have taken things a step too far by building a bar in our office, but you get the drift. Real Estate is a people-focussed business, so keep it people-friendly with pizza nights, vineyard lunches, fun incentives and plenty of opportunities to let your hair down to keep a happy, productive and loyal team. There are enough things to worry about without your team being one of them. Happy selling.

FEATURE


realestate.co.nz website launch In late November 2017, realestate.co.nz launched their new website with a fresh look, friendlier interface and a simpler way to search.

Here are some of the key features:• Mobile first technology which ensures a

mobile friendly experience across both phones and tablets

• Users can now search using natural language and keywords in the search bar, e.g. simply type ‘3-bedroom home for sale in Christchurch under $600k’

• The ‘More options’ link at the bottom of the search bar enables users to further refine their search, search using tick boxes or search across categories (i.e. both residential and commercial properties within the same search)

• Additional search criteria for renters - ‘pet friendly’ and ‘furnished’ homes

• New lifestyle category bringing both residential and rural lifestyle listings together in one place

• Property profile pages - showcase an image of the property, council valuation, sales history, an estimated market expectation and census information

• Profile pages exist for both listed properties and those which are not on the market - find it all at realestate.co.nz/profile

• More prominent features displayed for promoted listings such as videos and 3D walkthroughs in the search view

• A new ’My property’ section which can be customised based on your preferences

• All domains are under one URL - realestate.co.nz - so all categories of property benefit from the marketing we do

• New products to help you build your brand

Our goal at realestate.co.nz is to get our users to your listings quicker. By getting the right people looking at the right listings, we are able to provide you with better and more qualified leads.

This exciting change means that realestate.co.nz will truly be the one location of all property in New Zealand. They continue to optimise and innovate to ensure your industry website remains relevant.

Check out the new website and all its features for yourself, now live at www.realestate.co.nz

BEAUREPAIRES IS OFFERING REINZ MEMBERS

15% OFF*

MICHELIN, BFGOODRICH, GOODYEAR AND DUNLOP TYRES

*Terms and Conditions: Offer is available to REINZ members only and must be processed through the REINZ account. Applies to cash, credit card and finance transactions only. Finance transactions are subject to standard finance criteria. Offer excludes fleet, commercial and trade customers. Cannot be redeemed with any other voucher, coupon or discount. REINZ 15% discount applies to non-discounted MICHELIN, BFGoodrich, Goodyear and Dunlop passenger and 4WD/SUV tyres. Normal service/fitting charges apply on all tyres. Available at participating Beaurepaires stores nationwide. Discount valid from 4 December 2017 and is subject to change without notice. The FREE 4 Point Safety Check consists of a Free Tyre Pressure Check, Free Tyre Tread Depth Check, Free Battery Check and Free Oil Check and is subject to availability on the day.

TYRES . BATTERIES FREE 4 POINT SAFETY CHECKS

WHEEL BALANCING . ROTATIONSWHEEL ALIGNMENTS

FREE Oil check

in-store

SHELL ENGINE OIL NOW AVAILABLE

SUMMER 2017–2018 | 39

AUCTIONEERING SECTOR

2017 Australasian Auctioneering Championships In September 2017, the Annual Australasian Auctioneering Championships took place in Adelaide, care of the host state, The Real Estate Institute of South Australia (REISA) and The Real Estate Institute of Australia (REIA). This year was the 19th installment of the cross-Tasman competition since 1993.

New Zealand proudly sent over our two top competitors from the 2017 New

Zealand Auctioneering Championships; winner, Ned Allison of Harcourts Grenadier; and runner-up Mark McGoldrick of Harcourts Ilam. To join the 2017 Judging Panel was New Zealand’s Chief Judge, Mark Sumich, 2007 and 2008 winner of the Australasian Auctioneering Championships himself. A healthy contingent of New Zealand supporters also made their way across the ditch to encourage and cheer on Ned and Mark.

For those of you who have never attended an auctioneering championship, you may be unsure as to what is involved in such an event or how one could be judged on such an activity. The Real Estate Conversation describe Auctioneering competitions as being “designed to test the skills, wit and knowledge of each competitor. They require competitors to take part in a simulated auction, made intentionally difficult with complex bidding sequences and difficult legal questions. Competitors must retain their wit, charm and confidence, despite the challenging circumstances. A strict time limit

is imposed.” These competitions are said to be more difficult than a real-life auction, as situations are created to intentionally test the skill and knowledge of the competitor, while also testing their limits and their ability to hold their composure during walk-outs, hecklers and difficult bidders.

Each year’s competition is made up of 18 competitors, two from each of the Australian states and two from New Zealand. The quality and skills of contestants are always extremely high, and this year was no different. With a number of first time entrants and a few new judges, the competition felt fresh. Reigning champion, Justin Nickerson, from Queensland was back once again to compete and to defend his title of the top auctioneer in Australasia.

The evening before the competition began, everyone gathered at Crowne Plaza Hotel, welcomed by the friendly staff of REISA and a goodie bag filled with wine, chocolate, a notebook and plenty of tourist information for Adelaide. Once all competitors were accounted for, they were called up to select a bottle of wine and their preferred placement for order of competition; New


SECTOR AUCTIONEERING

Zealand competitors Mark McGoldrick and Ned Allison selecting 3rd and 12th respectively, and Tasmanian Auctioneer Conor Canning putting his hand up to take the ever intimidating first call of the competition.

Day one of competition kicked off with a welcome to all guests, as competitors were locked away in a room downstairs with no technology or access to the outside world. One-by-one the 18 competitors came out and called their way to the sale price in excess of $3.5 million, dodging questions along the way. One superstitious bidder wanted to know which way East was, with Mark McGoldrick offering the witty response of “East is opposite to West” and encouraging her to bid with confidence. Another unusual question flung from the crowd was whether it was possible to pay the deposit with bitcoin… Ned Allison advised that only Kangaroo Cash would be accepted, while Mark McGoldrick admitted to not knowing what bitcoin was, but noting that the bidder looked like he had a bit of coin, which was met with wild laughter from the crowd!

New Zealand Judge, Mark Sumich with winner, Justin Nickerson

Bindi Norwell, CEO, REINZ

New Zealand Judge, Mark Sumich

The calls of the Kiwis were crowd pleasing and judge pleasing, as both representatives made their way to the finals announced at the Cocktail party on the Wednesday night. Auctioneers that joined them were Bronte Manuel from South Australia, Clarence White from New South Wales, and the reigning champion Justin Nickerson from Queensland.

Day two of competition opened with the Australasian Auctioneering Schools Championship which saw five extremely talented high school students aged 17 years old, take the stage and call an auction.

Moving into the afternoon, the five finalists took their places and prepared to call their final bid of the competition. With a $4.8 million reserve price, everyone knew that this would be no easy feat. Each auctioneer put their skills to the test as they called through the difficult sequence for 263 East Terrace in South Australia, made no easier by the specific legal questions and requests to retract a bid.

After a long day at the end of a long competition, everyone gathered at the

South Australian Museum for a “Night at the Museum” presentation dinner where the winners would be announced. Whispers worked their way around the room as speculation grew and it was too close to call for any one person to guess.

Justin Nickerson of Queensland came out victorious, as the winner of the 2017 Australasian Auctioneering Championships, the first Australian to win back-to-back competitions, following in the footsteps of Kiwis, Mark Sumich (2007-2008) and Daniel Coulson (2012-2013). Justin told ABC Radio Brisbane that hearing the final call was “like your birthday, Christmas Day, Super Bowl and Easter all rolled into one”.

We now all look forward to 2018, when the Australasian Auctioneering Championships will be held right here in New Zealand for the first time since 2014. Put a note in your diaries for 14-16 October 2018, in Auckland for this fierce competition. If 2017 and South Australia have proven anything, it is that this is a competition not to be missed!

SUMMER 2017–2018 | 41

AUCTIONEERING SECTOR

New Zealand Representative, Ned Allison Some of the judges watching closely

Winner, Justin Nickerson accepting his title at the Gala dinner

Queensland Representative, Justin Nickerson

Mark McGoldrick making his call in the finals

Ned Allison making his call in the heats


SECTOR COMMERCIAL & INDUSTRIAL

Mid-2017 saw Tainui Group Holdings (TGH) name JLL’s industrial team the master agent for the Ruakura inland port and logistics hub. The inland port and logistics hub form part of the wider Ruakura development in Hamilton, a 480ha master planned project encompassing the inland port, industrial, residential, retail and green precincts.

Stage one of the development encompasses the first six hectares

of a 30ha inland port and dedicated rail siding. Adjacent to the inland port is 60ha of logistics-zoned land, which will allow for warehousing and distribution, container storage, container handling and biosecurity/customs.

JLL Director of Industrial, Sam Smith says, “This project will be a game-changer for the Waikato and the upper North Island in general by offering genuine scale and efficiency for importers and exporters to move cargo as effectively as possible. The introduction of a rail siding will allow many of the shipping containers to be transported by rail instead of adding to congestion on our roads.

“Being part of the Golden Triangle, which encompasses Auckland, Bay of Plenty and Waikato, makes this development especially significant given this geographic area accounts for 50% of New Zealand’s economic output.

“At capacity, it is expected that Ruakura will process 1 million TEU (equivalent 20ft shipping containers) per year. By comparison, the Ports of Auckland and Tauranga combined currently process approximately 2 million TEU per year, which gives context to the scale the Ruakura development will provide.”

TGH have owned the site for many years and have planned this project meticulously. The concept is for Ruakura to be New Zealand’s largest integrated commercial and lifestyle development anchored by a freight and logistics hub.

Recognised by the Government as a project of national significance, Ruakura will bring economic, social, environmental and cultural benefits to the Waikato and New Zealand for many years to come.

Tainui Group Holdings Chief Executive, Chris Joblin says, “Our vision is to build a real community at Ruakura with an exciting mix of high-quality work, live and play

Ruakura inland port to make big waves in logistics supply chain Sam Smith

Director of Industrial, JLL

SUMMER 2017–2018 | 43

COMMERCIAL & INDUSTRIAL SECTOR

elements. The site will include logistics and industrial areas, research and education facilities, a significant residential precinct and three retail areas for shops, cafes and bars. There were also be around 50 hectares of recreational areas which will include cycleways, walkways, wetlands and native planting.

“Having stage one underway and to get the logistics and industrial areas started is exciting for TGH and for those in the logistics industry who will now have the opportunity to benefit from the port neutrality that Ruakura offers, and the fact the site will allow for both rail and road, all of which will bring further efficiencies into the supply chain.”

As well as providing a range of services to exporters and importers, Ruakura has the potential to support 6,000 -12,000 jobs within the precinct once fully-built.

Just 3kms from Hamilton CBD, the logistics hub will link into the Waikato Expressway

with the East Coast Main Trunk railway dissecting the development.

According to the Ministry of Transport, of the freight that is carried by road, rail, air and coastal vessels around New Zealand, more than 90% of by tonnage is transported on road alone, with 42% of this being moved within the Golden Triangle.

TGH has joined forces with LINX Cargo Care Group to develop and operate the new port with LINX and one of its subsidiaries C3 limited, having extensive experience in the industry.

Anthony Jones, Group CEO for LINX Cargo Care Group and Chairman of C3 believes Ruakura will help transform the New Zealand logistics supply chain. “It will offer stable, efficient and cost effective networks for importers and exporters to grow with confidence in the future,” he said.

Hamilton presents an ideal location due to its global connections, proximity to

international ports, Auckland International Airport, and the number of manufacturing, health, education and growing freight and logistics companies that are based there. It is also less expensive to do business when compared to Auckland, and has access to a skilled workforce with a growing youth population. The city is forecast to see population growth of 74,600 residents (50% growth) between 2013 and 2043, which will see the city reach a total population of 224,800.

With land in Hamilton being less expensive than Auckland and the fact that the city has a low natural hazard risk, Ruakura will tick a lot of boxes for potential tenants.

The lower cost of living in Hamilton is also more attractive to the workforce in a competitive employment market.

Says Smith, “From having limited location options, all of a sudden logistics companies are being given the opportunity to reap the rewards of having quality premises in a rail and road friendly location, where they will spend less on leasing their premises and be able to attract labour due to the lower cost of living in Hamilton. In addition, they will also be located on a site where retail and green space will be readily available, something they wouldn’t normally see at traditional port sites. Those who sign on early will also have the ability to locate and build their ideal operation on the site. For these reasons, we expect Ruakura to attract a lot of attention from prospective tenants.

“When you combine location, scale, access and forward thinking, Ruakura will be New Zealand’s leading industrial and logistics development. It is a carefully planned, multi decade development, which will create a thriving business and lifestyle hub, bringing economic, social, environmental and cultural benefits for the Waikato and the rest of the country.”

To learn more about Ruakura visit www.ruakura.co.nz

FROM HAVING LIMITED LOCATION OPTIONS, ALL OF A SUDDEN LOGISTICS COMPANIES ARE BEING GIVEN THE OPPORTUNITY TO REAP THE REWARDS OF HAVING QUALITY PREMISES IN A RAIL AND ROAD FRIENDLY LOCATION...


SECTOR BUSINESS BROKERS

When we hear the word “Negotiation”When we hear the word “Negotiation” we often think about winning, pushing to get what you want. However, in our opinion, the winning mentality comes down to finding universal solutions to a problem and making it work for both parties. The trick is to look at negotiating as problem-solving, instead of a transaction where someone comes off second best. Here we outline seven things that we believe all great negotiators have mastered.

A person buying or selling a business needs the temperament and correct

negotiation skills to successfully close the deal. It used to be that people thought you were a good negotiator if you pushed for what you wanted, and you got it. This mentality is passé. Today, deals are made by parties willing to find solutions to their differences. The two parties at the negotiation table are not adversaries. They do not attack one other, but rather they address the issues at hand.

Here are some business negotiation strategies:

1. Prepare in advancePrior to beginning negotiations, study the business and market trends through trade/industry publications, trade events and networks, and consult with those in the same line of business. Knowing the industry statistics, and analysis of the business, arms you with information you might need to back up your offer or counter other proposals. You can demonstrate that you know what you are talking about and you cannot be misled.

2. Listen to the other partyGive the other party your attention and the time to say what is on their mind. You should refrain from making assumptions. You can gauge the other party’s reaction and emotion to key issues so you can later respond accordingly. The information you gather forms the basis for your questions later.

3. Kindness and diplomacy will go a long way

Be genuinely kind and interested. As the saying goes, “It is easier to attract bees with honey than with vinegar.” Kindness is an advantage in business negotiations. You gain credibility as well as the trust and empathy of the other party when you are reasonable, straight forward, fair and polite.

4. Be flexible and open to optionsHave an open mind by not setting strict parameters from the start. Be open to options that may bridge seemingly wide disagreements or differences. Your attitude and willingness to be creative during the business negotiation can go a long way towards a successful transaction. Give away a concession but make sure you also get something in return.

5. Let the other party go firstAvoid going first on the price if you can. Knowing the other person’s starting point before you give yours is an advantage. This enables you to adjust your aim. You can refuse to start negotiations if the price is unacceptable. If you do, the other party may be forced to at least re-think his or her offer before you start business negotiations.

6. Do not be a bullyBeing a demanding person with the attitude of a bully turns the other party off. Your know-it-all comments may be insulting or rude. It is okay to be tough in some aspects of the negotiation, but you have to choose your priorities. Be forthright when you present your bid. Proceed gently and amiably.

BUSINESS BROKERS SECTOR

SUMMER 2017–2018 | 45

7. Keep notes of the transactionTo reduce misunderstandings of what was discussed or agreed upon, a well-documented transaction record is in your best interest. Every major agreement or obligation of the parties should be recorded in clear language, signed or initialled, and dated for future reference.

The best chances for successful negotiations come when the two parties like one other. Be honest and truthful about your situation. There should be no room for ambiguities or evasiveness. Be patient, open and creative in finding solutions to any disagreement. It is a successful negotiation that gets the deal done. Are you ready to apply these business negotiation strategies?

TODAY, DEALS ARE MADE BY PARTIES WILLING TO FIND SOLUTIONS TO THEIR DIFFERENCES. THE TWO PARTIES AT THE NEGOTIATION TABLE ARE NOT ADVERSARIES ... RATHER THEY ADDRESS THE ISSUES AT HAND.

BUSINESS BROKERS SECTOR


MEMBER BENEFITS

REINZ Member BenefitsDid you know, that as a REINZ Member, you are entitled to some fantastic deals that REINZ has secured on your behalf?All you need is your REINZ ID card, and you are ready to go. Check out all the deals below, and make sure you take advantage of as many of these as possible! Head to www.reinz.co.nz/member-benefits for full details on how to claim your discounts.

Issue Clothing – NEW 20% off all full-priced items and capsule wardrobe items

Start Social – NEW 30% off the Real Estate Social Media Course. Learn how to utilise Social Media to its full potential. NB: This course also meets the REAA non-verifiable training requirements.

BMW Enjoy the many benefits of BMW Corporate Advantage, a benefit programme that provides the opportunity to enjoy the ultimate reward – getting behind the wheel of the Ultimate Driving Machine (BMW).

Flagmakers Member discounts for your flags and signage. Long-life flags at great prices and Manufacturer’s Guarantees on poles.

Mercer Marsh Get up to $300,000 of Life Cover online and up to 10% off AIA’s standard life insurance retail rates.

Vodafone One month free and take advantage of corporate rates, unlimited call & text packages and loads of data.

New Zealand Wine Society Specially priced offers available only for REINZ Members – including free delivery!

Mobil Save 10.35 cents per litre at the pump, download the application form from the REINZ website.

Noel Leeming REINZ Members are entitled to a discount of Cost + 10% with Noel Leeming by showing your REINZ ID card at point of purchase.

NetYourJob If you have a vacancy to list, NetYourJob can offer full recruitment services, with a Recruitment Package costing just $499.

Beaurepaires 15% discount on MICHELIN, BFGoodrich, Goodyear and Dunlop branded tyres for REINZ Members.

SUMMER 2017–2018 | 47

MEMBER BENEFITS

David Ding

Office Products Depot Discounted pricing for REINZ Members on a range of products including general stationery, packaging, cafeteria and cleaning supplies.

Recognise & Reward Save 10% on website orders for all your clients gift requirements to ensure you are memorable and remembered.

Les Mills Grab a free 7-day trial, plus sign up to a 12-month membership and receive 10% off.

National Smoke Alarm Services The FireAngel smoke alarm comes with a 10-year sealed for life, tamper proof battery – REINZ Members will receive 20% off Smoke Alarms with NSAS.

ASB ASB WorkExtras Plus Package – Save money on home loans, credit cards & personal loans.

Coffee Club Purchase a yearly VIP club membership for half-price.

Focus your energy on the things that matter.

The fuel card that helps you run things your way

Take advantage of a great REINZ benefit and receive the following offer with Mobilcard:• 10.35 cents per litre discount for petrol and diesel off the pump price.• No card fees• No transaction fees• Monthly statements to assist with your tax returnsFor further information about this great offer please contact: [email protected] or call free on 0800 662 458

MOB2182

NationalSmokeAlarmSevices


INTEREST

David Ding

3 ways improving your work wardrobe can advance your careerIn the real estate industry, the way you present yourself is the first thing a potential client will see. They say, “Dress for the job you want, not the job you have”, and in real estate you also have to “dress for your market” but does how you dress really impact your career?

We took a deeper dive and found it’s a pretty complicated relationship,

fraught with bias and ethical dilemmas. Although we are all different, and certainly not defined by something so simple as the materials we wear, there are certainly some benefits to taking a closer look at your work attire. Here is what we found:

1. When you dress well others perceive you as more successful, authoritative, trustworthy and intelligent. A study by the National Research Council of Canada (NRCC) found that your appearance strongly influences other people’s perception and in turn their behaviour. What you wear communicates both your current standing and your future potential to others, and as a result can directly feed into your career advancement and success. This research also found the power combination was appearance + communication skills. This combo had

a significant impact on access to decision makers, salaries, hiring decisions and sales.

2. When you dress well you perform betterA study from Kellogg School of Management at Northwestern University in the USA found that dressing a certain way can actually make us “feel” smarter. For one experiment, the researchers dressed half of the participants in lab coats and the other half in their usual clothing. They then asked them to perform a series of tests. Those who wore the “doctor’s coats” made significantly less mistakes than those wearing their normal clothes. In a similar experiment, researchers gave all participants lab coats to wear during the test. However, they told half of them the lab coats were painter’s coats, and told the others they were doctor’s coats. Interestingly, those who thought they were wearing painter’s coats made a lot more mistakes.

Hannah Burnard Creative Director and Co-Founder

of Issue Clothing Co.

REINZ Members are eligible for a 20% discount on all full priced clothing from Issue Clothing Co. Visit the REINZ Member

Benefits page on the website to get your

discount code, and start shopping for yourself or your loved ones today!

3. Dressing like your boss could help you get promotedIt’s not a perfect world. People are still people and they make judgements and decisions with all kinds of bias. Whether right or wrong people do tend to hire and promote people who are similar to them. We assume if they’re “like us” they must be good. In a fairer world these would be unbiased assessments based on performance alone. Unfortunately, that’s not the world we live in. If you’re trying to advance your career or win over a client, then conforming in your attire might help with your success.

See what we mean by “complicated”? It can be heavy stuff, morally and ethically. Know that we don’t have to agree with “the way that it is” to benefit from knowing. You always have to consider what’s right for you. Ultimately, we believe that your attitude, work ethic and confidence is what will help your career, so if updating your clothing will help with any of these, what have you got to lose!

SUMMER 2017–2018 | 49

NZREAA

For full details visit www.myownrealestatebusiness.co.nz

Six Figure Income from your Home Office or Main Street Office?

Licensee Salespeople wanted from Paihia in the north to Queenstown in the south.

Area Licences available from Auckland in the north to Queenstown in the south.

PHONE Carl Barakat 021 687 999Alison Barakat 027 272 3194Kieran Barakat 021 949 108 OR EMAIL [email protected] Realty Limited, REAA Licensed 2008


INTEREST

2017 REINZ Golf TournamentOn a slightly overcast October day in Hamilton, REINZ held the 2017 Golf Tournament at the St Andrews Golf Course. It was a sell-out event with more than 80 attendees from as far away as 150km in both directions. REINZ Life Member, Rex Hadley, stepped up to the plate once again to assist in all the logistics and prize packs for the day, ensuring a jam-packed prize table.

Attendees were treated upon arrival with a breakfast bap, something to

drink, and a portable power bank charger, courtesy of one of our major event partners, Property Press (all before even stepping foot on the course).

Once all players were registered and starting holes were checked for the umpteenth time, teams scattered across the green, with many bolting off in their rented golf carts, holding onto their seats with smiles on their faces. At midday, with everyone spread out around the course, the shotgun sounded, and the teams teed off.

After a good four hours out on the course (with delivery of a drink or two, courtesy of the REINZ Events team cruising around the course on a golf cart, chilly bin in tow, avoiding rogue golf balls), most teams made it back to base by around 4pm. A few of the more relaxed competitors made a quick change from their golf shoes into their jandals as they entered the club room (much to the distaste of the club manager), before the first drinks were ordered. Food was delivered out to each table and disappeared

almost as quickly as it first appeared; clearly it was a tough day out on the course.

REINZ Board Director and golfer, Bryan Thomson, managed to wrangle the attention of the crowd to conduct the prizegiving at the end of the day. With more than 80 prizes to be awarded from golf balls, pens and drink bottles, through to a phone, bottles of Moët & Chandon and wireless speakers, Bryan’s job was not too difficult, as they all waited with baited breath to see when they could come and take their pick of the table. At the end of the day, Ray Johnson from Taupo walked away with the grand prize of a $600 coffee machine thanks to one of our generous event partners.

A big thank you must be given to our Key Event Partners: Property Press, Mercedes Benz Ingham Prestige, and Vodafone; plus, a big thank you to all our additional event partners: Noel Leeming, Skills, ABC Photosigns, Mobil, Office Products Depot, Coffee Club and New World. Without these generous companies, we would not have been able to run such a successful and prize-packed golf tournament.

Join the hundreds of happy sales agents who currenly enjoy the benefits of the best portable flag display on the market.

Ultra-compact and easy to use, the Euro Estate is the ultimate personal go-anywhere flag display solution!

New Zealand designed and manufactured and available exclusively from the signage innovators, Nexus Display Solutions.

Phone: (04) 238 9623email: [email protected]

or

Euro Estate pole with carry bag, 1800mm x 900mm printed flag and your choice of U-base, or Towbar mount.

$189.00

Vehicle Mounted BundleEuro Estate pole with carry bag, 1800mm x 900mm printed flag and ground stake mount.

$169.00

Ground Mounted Bundle

Scan this link to see a video of the Euro

Esate in action!

At last, a flag display made for you!

+ GST + GST

EURO ESTATE BUNDLE DEALS

Raise and lower in secondsOne piece folding system Ultra-compact only 1m when stored in bagFlag remains on pole at all times

20 seconds10 seconds0 seconds

Contact us for full details on flags, banners, poles and bases

“The team love them. Thanks for everything you did ”

Charles Morley-HallPrincipal | DirectorJust Paterson Real Estate


INTEREST

The Forgetting Curve

‘The most complex entity known to man resides between your ears.’ - Deane Alban

The brain is a mysterious and remarkable thing. There are plenty

of statistics that demonstrate this. For example, I could tell you that the brain produces 50,000 thoughts per day – and disturbingly, it’s estimated that in most people, 70% of these thoughts are negative. I could also share that 90 minutes of sweating can temporarily shrink the brain as much as one year of ageing. Or tell you that about a quarter of our cholesterol resides in the brain, and it uses fat as it’s best source of fuel. The problem is, you will probably forget these things almost immediately after reading them, because the brain is far from perfect.

In fact, the brain’s ability to retain and recall whatever you may have just learned is surprisingly unremarkable. Even the memories you think you do remember are unreliable. They can be altered with emotion, motivation, subtle hinting, time and a whole host of other influencers that change what you learned into what you remember.

The brain’s ability to forget, on the other hand, is phenomenal. Research indicates that within just one hour, people forget about 50% of new information; it’s 70% after 24 hours and about 90% after one week. This effect is called the “Forgetting Curve.” The curve highlights just how difficult it can be to retain new information even if you do fully grasp the topic you were studying.

Why we forgetForgetting has an important function though. It allows your brain to clear space for something new. It’s like deleting last year’s sales database off your servers to make room for this year’s numbers. The problem is, that it’s not entirely indiscriminate. The brain often chooses to remove things that you really wanted to keep. There’s nothing much to tell it which data you feel is important, it only knows the things that you use.

So, how do we train our collective brain? Are there any approaches we can take to improve our ability to remember and make it easier for ourselves and our staff to retain information that is presented to them? Or is all that sales training, coaching and conference-attending that we go through a temporary ‘feel-good’ but, ultimately, a complete waste of time?

Top tips for retentionThe good news is that studies have been conducted on how to learn in a way that will allow for long-term retention. Here are some helpful takeaways.

1. If you are trying to learn something, consider how soon afterwards you’ll be able to use that new information. Why? Because the more times a certain memory is recalled or, essentially, the more times your brain has to find

Sarah PearceProfessional speaker,

Business Coach and Author

INTEREST

SUMMER 2017–2018 | 53

information, the more likely it is to become a part of your permanent memory. In a nutshell? Use it (straight away) or lose it.

2. And if you didn’t learn this in school already, now’s a good time to let you know: cramming doesn’t work. Rather than stuffing your brain full in a short session, spend a little time every day on studying or learning new concepts. This allows the information to ‘trickle in’. Repeatedly visiting it again afterwards then allows the new information to become fairly permanent.

3. Try to minimise the rest of the things your brain might pick up on: reduce potential distractions and unnecessary new data. For example, try studying in the same place each time, keep your environment quiet, set up a routine and stick to it. When it comes to where and how you learn, remember that boring is good.

Have fun and get engagedIf you are training employees, there are also key steps that can be taken to optimise your impact and memorability. Although the use of PowerPoint is near ubiquitous

in training, it is simply not as effective as active learning. The best case scenario is to combine both, make the session fun, and get the audience actively involved.

Active learning settings are designed to have the participants engage directly with the material and with one another. Allowing for high energy discussion not only keeps enthusiasm high for the material, but also helps keep the audience engaged throughout the session. The inclusion of humor also helps to improve retention of information.

Famous writer and physician, Alfred Mercier, once said: “What we learn with pleasure we never forget.”

Know thyselfEffective trainers should know what their strongest assets are as a presenter, and play to those strengths. Examples of these may be: great communication, expansive knowledge, unique experience in a particular area, the ability to powerfully influence, a passion for learning or educating, open-mindedness, flexibility, the knack of including creative elements in the training, or something else. Very few people are great at all of these things, but all effective trainers will have at least one of these traits and will find a way to adapt their personal style to their teaching style.

Many trainers also incorporate online material, visual aids, or handouts for the trainee to use during and after the session. This makes the material easier to access, and since we now know that the more times the learner reviews the material, the more likely they are to retain it, it is a real advantage to have this option available.

Awareness, action and accountabilityThe final piece to this lies in accountability. Learning is an active process for both the trainer and the trainee, and if the information is a key part of an

organisation’s strategy, then it is vital that it be retained. Employers should be accountable for providing the material in ways that make it easy to access, and that allow for different learning styles. Employees should be accountable for actually learning it, interacting with it, and incorporating it into their duties. A regular review of the training material along with periodic assessments can help determine whether the information was learned and is in fact being utilised.

Inspiration and perspiration So it seems the real key to success in learning is about repetition and persistence. If you look at the most successful professional athletes, you will find that their training was typically rigorous from a very early age and maintained religiously over many years. The same is true for many professional vocalists, artists and top performers in any other field.

As Thomas Edison famously said, “Genius is one percent inspiration, ninety-nine percent perspiration.” While we are not all geniuses, everyone has the ability to learn something new with the proper motivation and dedication. It’s getting our amazing but remarkably unreliable brain to remember it that makes all the difference.

Sarah Pearce is a professional speaker, business coach, social strategist and author. To book her for speaking or coaching email [email protected]


INTEREST

The 10 best things you can do for your health!Claire Turnbull, Healthy Food Guide Nutritionist

Running two businesses, managing a busy 3-year-old and a new-born certainly has its challenges, but with a healthy mind set and the right tools and skills, it is still possible to live a healthy, balanced(ish) life, even with the many sleepless nights that come with little people!

Based on what I have learnt over the past 17 years studying and working in

the world of health and fitness, here are the best 10 things I think you can do to keep yourself healthy.

• VEG, VEG, VEG. Yep this one is by no means new news, but my goodness it works. Come sun, rain or shine, even when I travel or have had next to no sleep, there is barely a day that I won’t have 5-6 large handfuls of non-starchy veggies. Spinach or beetroot in smoothies, salads or soups for lunch, raw veggies as snacks and half a plate of veg at dinner. Consistently eating masses of low starchy veggies fills you up, loads you with vitamins and minerals and stops you wanting to eat junk. Well, most of the time!

• Hydrate up – I am not someone who is permanently attached to a drink bottle, but certainly I am in the habit of drinking water, still, sparkling from my SodaStream or herbal teas throughout the day, it helps me stay clear, focused and avoid headaches. Making sure you are passing large volumes of very pale pee throughout the day is the

way to make sure you are well hydrated – the amount is different for everyone, but dark pee is a problem!

• Change your taste buds – you can re-train your taste buds to like less sweet tasting foods and less salt, it only takes a few weeks. If you are trying to reduce your sugar, aim to train your palate to accept less sweet tasting foods, rather than opting for all the alternative sweeteners. Be aware also that coconut sugar, maple syrup, honey, agave and lots of blended up dried fruit are all STILL sugar.

• Change the way you think – your thoughts don’t define you. The way you think and feel in certain situations is learned from your past experiences, but be mindful that just because you think something, doesn’t make it true. Most people have a very negative record that plays constantly in their heads ‘I’m not good enough’, ‘I will never get there’, ‘nothing works out for me’ are all thoughts that are far too common – be the one to change it, no one else can do that for you.

• When something doesn’t work out, focus on what did go right and what you can learn from the experience, not dwelling on what went wrong. If you focus on the negative, you will get more negative.

• Find a way to move more. I truly understand what it is like to have VERY little time but keeping active is essential to physical health and equally importantly, in my mind (having struggles with depression myself), maintaining your mental health. Even if you only can find 10 minutes, run around the outside of your house or take a quick jog round the block, if you have kids or grandkids take them to the park and run around instead of staying inside, cycle to work, set up a space to exercise at home – you don’t need fancy equipment, even 8 minutes every morning is better than

SUMMER 2017–2018 | 55

INTEREST

nothing. Also, don’t use lifts, stairs are always better.

• Find some way to get time for yourself – for me, its driving time. There is no time to meditate in the morning for me right now, unless I want to get up at 3.30am which I don’t. Sleep is more important. Driving, without music, focusing on the scenery around me and my breathing, is my meditation.

• Learn to say no thank you. It’s not rude, it’s essential. You can’t be everything

to everyone all the time and keep well yourself.

• Forward planning – when it comes to a healthy life, planning is where it’s at.

• Sleep – deeply. Too much caffeine during the day and alcohol at night can stop you from going into deep sleep, which you need to keep SANE, as well as healthy, look at the relationship you have with these drinks and see if it needs a refresh, especially as we approach Christmas and the busy BBQ season.

CONSISTENTLY EATING MASSES OF LOW STARCHY VEGGIES FILLS YOU UP, LOADS YOU WITH VITAMINS AND MINERALS AND STOPS YOU WANTING TO EAT JUNK.

EDUCATION


Education UpdateAs 2017 draws to a close, time is running out to complete your 2017 Continuing Education hours, as these must be done by Sunday 31 December 2017. All seminars with REINZ have now concluded. However, there are still online options available for you to complete both Verifiable and Non-Verifiable hours under the Education Portal.

A lso don’t forget our new Member Benefit Social Media Course with Start

Social counts as non-verifiable training. Visit the Member Benefits page on the REINZ website for further details and to access the 30% discount.

Please note, the REINZ Office will be closed from 5pm 22 December 2017, and there will be no one available to assist with training requirements, so please be sure to make all arrangements prior to this date.

Additionally, you are now able to purchase the 2017 Verifiable Course Material Book through the REINZ Store for just $5 plus GST and shipping.

The 2018 REINZ Education Calendar has now been confirmed, and will be open for registrations on the Education Portal from 9 January 2018. The full verifiable education calendar is available below.

Location DatesNorth Shore 20 / 21 FebruaryChristchurch 1 7 / 8 MarchQueenstown 21 / 22 MarchDunedin 11 / 12 April Gisborne 11 / 12 AprilThames 6 / 7 MayWhangarei 9 / 10 MayNew Plymouth 16 / 17 MayHamilton 23 / 24 MayInvercargill 23 / 24 MayTaupo 6 / 7 JuneRotorua 20 / 21 JuneWhakatane 27 / 28 JuneTimaru 27 / 28 JuneWellington 4 / 5 JulyPalmerston North 25 / 26 July Nelson 25 / 26 JulyKerikeri 8 / 9 AugustNapier 22 / 23 AugustChristchurch 2 29 / 30 AugustTauranga 5 / 6 SeptemberAuckland 2 19 / 20 September

LEGAL


Kevin Lampen-Smith Chief Executive/Registrar, REAA

REAA Top 5 complaints 2017

At this time of year, most people are usually shocked that another 365 days have gone by so quickly. As the American writer Gretchen Rubin once said, ‘the days are long but the years are short’.

The days can seem particularly long for REAA’s Early Resolution team, who are at the frontline when it comes to dealing with complaints and queries from people involved in real estate, business and commercial transactions.

They’ve pulled together the five most common complaints they’ve received in 2017, along with advice on how to avoid these issues popping up in 2018.

1. Providing misleading informationThe most concerning issue for consumers who contact us relates to licensees providing incorrect or misleading information about a property, either in the advertising, or in conversation, text messages or emails.

If you are telling a prospective buyer something about a property you must check the facts are correct first. For example, if you’re planning to advertise a property as having a heated spa pool, you must get assurances from the seller that the spa pool

works as expected. Remind the seller that buyers will assume that all appliances will be in reasonable working order – if they aren’t, the seller needs to tell you before the property is marketed.

We recommend that any verbal statements about a property are followed up in writing. For example, if you tell a potential buyer that a property has gas-powered hot water, confirm this information in an email.

2. Non-disclosure of defects or important information about a propertyDisclosure is the second most common issue that consumers contact us about. We tend to receive complaints from buyers and potential buyers about licensees not disclosing issues, and enquiries from sellers and licensees about what to disclose.

Rule 10.7 says if you are aware of a defect in a property, you need to tell buyers about the defect (with your client’s informed consent).

LEGAL

SUMMER 2017–2018 | 59

It can be more difficult to assess what information needs to be shared when it doesn’t refer to a physical defect in the property. For example, if a neighbour tells you they’ve heard a supermarket may be being built next door, you must discuss this with your client first. They may have information that addresses the concern, such as a letter from the Council confirming there are no resource consents granted for a development next door.

If your client isn’t able to provide relevant information, you may need to check with independent sources to confirm if it’s well-founded, or simply a rumour. If your checks show the information you received may be correct, talk to your client about disclosure. How would they like this information to be shared to potential buyers? If they don’t give you permission to share the information, you may need to walk away from the listing as per Rule 10.8.

Whatever decision you come to about whether the information needs to be shared with potential buyers, we strongly recommend you document your decision and your reasons for it.

3. Advertising/marketingThe most common issues we hear about advertising are:

For more information about dealing with your disclosure obligations, or if you believe you are exempt from completing the 2017 continuing education programme, please contact the REAA on 0800 367 7322 (select option 2 to discuss continuing education or option 3 for disclosure queries). Alternatively, send us an email at [email protected].

• Licensees putting incorrect claims/statements in advertising (e.g. the property is advertised in the wrong suburb)

• Licensees not using “Licensed REAA 2008” in marketing campaigns

• Licensees sending unsolicited mail or posting advertising leaflets in letterboxes.

4. Sale and purchase agreementsSale and purchase agreements are a regular source of concern. Be sure to talk through any offers carefully with buyers and sellers, and give them plenty of opportunity to seek legal advice. Check the information you are putting into the agreement. We often hear concerns about:

• The GST status of the buyer and or seller being recorded incorrectly in the agreement

• The licensee passing on a verbal undertaking from the seller that is not recorded in the agreement

• Clauses being added to agreements without both parties understanding what they mean, eg a buyer not correctly understanding what a “cash out” clause is.

5. Customer service issuesWe frequently receive calls from sellers

WHATEVER DECISION YOU COME TO ABOUT WHETHER THE INFORMATION NEEDS TO BE SHARED WITH POTENTIAL BUYERS, WE STRONGLY RECOMMEND YOU DOCUMENT YOUR DECISION AND YOUR REASONS FOR IT.

disappointed in the level of service they have received from their listing agent. This often relates to:

• Poor/slow/unclear communication from the licensee

• Showing up late for appointments

• The use of unprofessional language or emotional responses to feedback/complaints.

Using plain English and following up all conversations with email confirmation of the issues discussed can go a long way to preventing problems later on.

NEW WEBSITES COMING IN 2018In early 2018 we’ll be changing our name to the Real Estate Authority (REA), and launching two new websites. We hope you’ll find the new REA website much easier to navigate. The second website is designed to help buyers and sellers navigate through their real estate transactions. We look forward to welcoming you to both websites in late January.


Are you delivering unaddressed mail?

LEGAL

LEGAL

SUMMER 2017–2018 | 61

John Burley Partner, McVeaghFleming Lawyers

Although most of us will be familiar with, and may even occasionally enjoy receiving a glossy leaflet, flyer, brochure, or magazine in the letterbox, that is not always the case. For some, the prospect of having to deal with more “junk mail” can be daunting. Although advertising via mailouts to the local community is often used as part of a business’s growth strategy, it is equally important that the wishes of consumers are respected, particularly when it comes to unsolicited mail. Compliance with relevant legal requirements then comes into play.

In 2006, the NZ Marketing Association developed a “National Code of Practice

for the Distribution of Unaddressed Mail” (“the Code”) which is supported by two major distributors – Reachmedia and PMP Distribution. The Code was last reviewed in November 2014 and is available in full on The Marketing Association’s website at http://www.marketing.org.nz.

The Code for Mailbox Delivery prescribes that:

• Unaddressed mail (i.e. any mail or material without a street address) must not be delivered to a letterbox displaying a sign requesting that unaddressed mail not be delivered to that letterbox. The wording of such signs can vary including “Addressed Mail Only”, “No Unaddressed Mail”, “No Junk Mail” or “No Circulars”. The message being conveyed has clear meaning, and must be honoured

• Unaddressed mail must not be delivered to addresses where there is no letterbox or where the letterbox is unsuitable for receiving or holding such material (e.g. if the size of the letterbox is unsuitable to receive the material)

• Unaddressed mail must not be delivered to letterboxes that are already full

• Other mail and/or material already in the letterbox must not be removed to make space for unaddressed material.

The Marketing Association operates a free “Do Not Mail” service for consumers who do not wish to receive unsolicited offers

via addressed mail to their home address. Marketers should regularly seek an updated copy of the Marketing Association’s Do Not Mail list and match the names and addresses they have against the Do Not Mail list to ensure they do not bother consumers who have opted not to receive such communications.

The Marketing Association also provides a Mailbox Helpline for consumers to report complaints if they are receiving advertising material despite signage or display on their letterbox. This can assist major distributors in identifying the organisation responsible and take the necessary action to remind their delivery staff of the importance of complying with the Code.

Are you an illegal “spammer”?The Unsolicited Electronic Messages Act 2007, also known as the “anti-spam” law, prohibits “spam” or unsolicited “commercial electronic messages” from being sent from or within New Zealand, as well as the use of harvesting software to create address lists for sending unsolicited commercial electronic messages.

The legislation defines “commercial electronic message” as an electronic message (i.e. any message sent using a telecommunications service and to an electronic address other than voice calls) that:

• Markets or promotes goods, services, land, an interest in land or business or investment opportunity

• Assists or enables a person to obtain dishonestly a financial advantage or gain from another person

• Provides a link, or directs a recipient to a message that does one or more of the things listed above.

The “anti-spam” law is enforced by the Department of Internal Affairs. Consequences of spam breaches can include a formal warning, infringement notice or pecuniary penalty ordered by the Court of up to $200,000 for individuals and $500,000 for organisations.

This article is published for general information purposes only. Legal content in this article is necessarily of a general nature and should not be relied upon as legal advice. If you require specific legal advice in respect of any legal issues, please get in contact with us.


‘Limited as to parcels’ titles

and what that means for Licensees

LEGAL

SUMMER 2017–2018 | 63

Sonia Ng Lawyer, REINZ Advisory Services

A number of disciplinary decisions have clearly demonstrated that licensees are expected to understand interests noted on certificates of title, and should also be able to explain the effect of any covenants and restrictions which may affect a purchaser.

A type of title that may crop up from time to time is the title that is ‘limited as to parcels’. A title of this nature has some specific limitations attached, which requires licensees to proceed with care when explaining its implications to purchasers.

What is a title that is ‘limited as to parcels’?When a title is ‘limited as to parcels’, it means the Crown does not guarantee the accuracy of the area or boundary of the title.

This issue generally arises in older subdivisions where a proper survey was never undertaken, or the land has not been sufficiently surveyed to guarantee the area and dimensions.

The Registrar-General of Land requires the position of the boundaries of the land to be properly defined on a cadastral survey dataset before an ordinary (guaranteed) title can be issued.

The practical effect is that the actual area and dimensions of a site on a limited parcel title may be much different than what is shown on the title, when a formal survey is carried out.

How will I know whether a title is ‘limited as to parcels’?The notation of whether the title is limited as to parcels is usually found at the top of the certificate of title.

How does the limitation affect purchasers?People can own titles limited as to parcels for many years where the limitation has not caused any practical issues for them. However, certain situations may render

the removal of the limitation advisable or even necessary.

For example:

• Some councils will not consider resource consent applications for properties that are limited as to parcels

• Some councils may require a surveyor’s certificate to accompany a building consent application for a limited as to parcels title

• When a purchaser wants to erect a structure near the boundary, it would be advisable to arrange a formal survey, to ensure the structure is not too close to the boundary or will not encroach over the boundary

• If the purchaser intends to develop the property by way of subdivision or building units whereby unit titles are to be issued, then the removal of the limitation will be necessary.

How can the limitation be removed?A surveyor can determine the exact boundaries, and deposit a survey plan that will enable the limitation to be removed from the title.

Points for Licensees when dealing with titles limited to parcelsThe following steps are suggested for licensees who find themselves dealing with a title limited as to parcels:

• Undertake a current title search of the subject property to verify that it is indeed limited as to parcels

• Point out the limitation and its potential implications to all prospective purchasers,

and encourage them to seek legal and technical (including surveying) advice. This is particularly the case if the accuracy of the area and dimensions is important to the prospective purchaser, or if they intend to undertake any building or development works on the property

• Note clearly on the Agreement for Sale and Purchase that the estate is ‘limited as to parcels’. This can be done on the front page of the Agreement, in the ‘Property’ text box where licensees complete the address, estate and legal description of the property. If the property is to be sold via auction, ensure the auction information pack includes a copy of the Agreement with this notation clearly present, before distributing the packs to prospective purchasers

• Keep file notes of verbal discussions, or copies of electronic communications, that you have had with prospective purchasers concerning disclosure of the limitation and your recommendations for them to seek advice

• The Disciplinary Tribunal in Wang v Real Estate Agents Authority [2017] NZREADT 29 expressed that as a general principle, licensees don’t have a duty to identify and point out the boundaries of a property.

However, in this case, the Tribunal also affirmed ‘key exceptions’ to this general position. The ‘key exceptions’ include situations where there is no clearly marked fence, where the boundaries appear to be in bush land, or where a title is ‘limited as to parcels’. Licensees should be put on notice in these situations to potential boundary discrepancies, and recommend the parties seek professional advice as necessary.

LEGAL


Dealing with Multiple Offers – A Delicate Balancing Act

The Rules apply in all transactions. However, a multiple offer situation can

become especially problematic because of the number of parties involved, and the fast-paced, high pressure environment that normally accompanies them.

We outline below several issues that commonly arise in complaints concerning multiple offers, along with suggestions to help you handle the situation in a way that is compliant with the Rules.

Issues in Multiple OffersComplaints from purchasers or prospective purchasers have included the following issues:

• Lack of clarity about how a multi-offer process is run

• Failure by the licensee to advise there is another offer that may be acceptable to the vendor, and that there might therefore not be an opportunity to submit a higher offer

• Disclosure of the details of other competing offers to a purchaser, who then assumes that their own price and terms are being conveyed to other purchasers.

Implement a Robust Multi-Offer PolicyWith the Rules and the above issues in mind, REINZ considers that it is best

For licensees, dealing with multiple offers can be a delicate balancing act. On the one hand, there are your fiduciary duties to your client (the vendor) and the need to achieve the best price for them. On the other hand, certain rules in the Real Estate Agents Act (Professional Conduct and Client Care) Rules 2012 (the Rules) become particularly relevant when you have more than one prospective purchaser making an offer for the same property, at the same time.

Sonia Ng Lawyer, REINZ Advisory Services

LEGAL

SUMMER 2017–2018 | 65

practice for an agency to develop and implement their own multi-offer policy, to ensure these situations are handled by all licensees within the agency in a compliant and consistent manner.

REINZ has a draft multi-offer acknowledgement form available online for members, as an example of a form that reflects good practice.

Is a Multi-Offer Policy required by Law?We note that neither the legislation nor the Rules specifically require an agency to have their own multi-offer policy. However, we strongly recommend all agency members of REINZ implement their own policy, due to the potential for issues to arise in multi-offer situations.

Suggested Process for Running a Multi-Offer situationHere are some suggestions for running a multi-offer process that deals fairly with all parties, and ensures all interest is conveyed to the vendor in a timely, confidential manner:

• Licensees should ensure all interested parties understand they are participating in a Multi-Offer. Explain clearly your agency’s multi-offer process, before asking the prospective purchaser to sign the acknowledgement form. Take extra care if the prospective purchaser may have difficulty understanding (e.g. if they are a first home buyer or cannot understand English well)

• If your agency’s protocols, or the vendor’s instructions are to call for other interest once an offer is received, then explain this clearly to prospective purchasers at the outset

• Licensees need to ensure the prospective purchaser understands they may only have one opportunity to make their best offer, so their offer

should be their “best and highest”. Notwithstanding that acknowledgement, they should also be made aware that the vendor may choose to negotiate with one prospective purchaser to the exclusion of others, or negotiate with all interested parties. Licensees also need to be careful that they don’t exert undue pressure when advising the prospective purchaser that they should make their “best” offer. Prospective purchasers should still be made aware of all entitlements to legal and technical advice if required

• Confidentiality is critical. No disclosure of any offers should be made to competing offerors. Licensees should assure prospective purchasers of the confidentiality of their offer

• A final close-off time for presentation of offers should be imposed (in agreement with the vendor). All written offers should be in a sealed envelope, and presented to the vendor at the same time

• A robust multi-offer policy should also address situations where a licensee within the agency, or a person related to that licensee, stands to benefit from the transaction. A senior independent person within the agency should run the process and supervise the presentation of the multiple offers.

Remember these situations could also trigger sections 134 or 136 of the Real Estate Agents Act 2008, which imposes additional disclosure requirements on licensees.

REINZ Information Sheet on Multiple OffersThis article is an abbreviated version of the REINZ Information Sheet on Multiple Offers. The full Information Sheet is available for REINZ members on www.reinz.co.nz, under the ‘Advisory Resources’ page in the Legal section.

REINZ HAS A DRAFT MULTI-OFFER ACKNOWLEDGEMENT FORM AVAILABLE ONLINE FOR MEMBERS, AS AN EXAMPLE OF A FORM THAT REFLECTS GOOD PRACTICE.

SMARTER. BOLDER. FASTER.

(LICENSED UNDER THE REAA 2008) REAL ESTATE

WITH OVER 7700 LOCATIONS WORLDWIDE, CENTURY 21 ISTHE LARGEST REAL ESTATE NETWORK ACROSS THE GLOBE.

BIGGER THAN BIG,IN FACT WE ARETHE BIGGEST!

WE’RE BIG.

Eligibility criteria apply. Some features are not available on mobile. For full information and terms, see vodafone.co.nz/onebusiness

Vodafone One Business

Business is complex, talking toclients shouldn’t be. Be moreresponsive and guide calls to

available team members, even if they’re out of the office.

Call us on 0800 888 216 to find out more

Be a Ready Business

VOD6825 Stormtrooper Work Together A4.indd 1 11/05/17 8:31 am

People buying houses rate Property Press

higher than the real estate section of daily newspapers

Home trutH 4

* Horizon Research – Property Media July 2016

realestate...realestate advertise through reinz the real estate magazine is a quarterly publication...

Documents