O FFI CIA L PU BLI C ATI O N O F TH E R E A L ES TATE INS TIT U TE O F WES TER N AUS TR A LIA

#73 JUNE 2015

REIA AWARDS

National awards honour Rob Druitt

REIWA.COM

SmartShare a smart move

+PLUS

Tax time and budget breakdowns

REIWA ADVOCATES YOUR INTERESTS

RESIDENTIAL PROPERTY

Soft market prevails

N E W S & F E AT U R E S

President’s Address 4

Message from the Chief Executive Officer 6

Debunking the seven year moving myth 8

Property management platforms risk investor security 10

Weak residential market likely for some time 12

Perth apartment supply 14

Population tally 16

New schools influence markets 18

Big shifts in retail property sector 20

Commercial market remains weak 21

Midland market to expand 27

contents

The art of auctioneering ... going once, going twice 39

What’s coming up at REIWA Training? 40

Renewed REIWA focus on advocacy 32

Spotlight on 2015-16 Federal Budget 33

What the 2015-16 State Budget means for agents 34

REIWA pushes for early payment of off-the-plan sales commission 36

REIWA position on proposed changes to Sale of Land Act 37

E D U C AT I O N A N D T R A I N I N G

A DVO C A C Y

MAGAZINE COORDINATOR AND ADVERTISINGBrian Greig (08) 9380 8274

CONSULTANT EDITORChris Gillham, Scribeworks - www.scribeworks.com.au

GRAPHICS AND PRODUCTIONJan Burt, REIWA

PRINTINGPrintforce (08) 9223 2466

DISTRIBUTION Zipform (08) 9232 0192

PUBLISHER REAL ESTATE INSTITUTE OF WESTERN AUSTRALIA215 Hay Street, Subiaco 6008, Western AustraliaT 9380 8222 F 93804024 E reiwa@reiwa.com.au

CO

NTE

NTS

Electronic conveyancing is now live 44

Be cautious with home open security 45

Unions threaten real estate industry again 46

Break lease frequency continues 47

FIRB inquiry into foreign purchases 48

Tax time and budget incentives 49

Agent liable for acting on seller’s instructions 50

In Brief 51

L E G A L , L E G I S L AT I V E , F I N A N C I A L

SmartShare a smart move for WA real estate agents! 54

New Agent Profiles now available on reiwa.com 55

Discover even more with our new interactive maps! 56

reiwa.com broadcast partnership with WAFL 57

R E A L E S TAT E T E C H N O LO GY

An elegant night of awards 59

Highest national award for Rob Druitt 60

reiwa.com golf day a big hit 62

Calendar of Events 64

REIWA welcomes new members 65

REIWA Councillors 65

REIWA member benefits and services 66

I N S I D E R E I WA

4 REIWA NEWS

president’s address

By REIWA President David Airey

As I write this column we have had a good look at the March quarter results and an early review of sales figures for April and May.

While the market has different aspects and segments, it’s becoming clear that the reduction in sales transactions and softening in prices that I have forewarned is now becoming a reality.

The downturn in the mining, resources and construction sectors has been a real blow to employment and many workers and their families have left or are leaving the state for greener pastures.

This is having a significant impact on the rental system and is now flowing through to a downturn in sales and softening of price. This is likely to continue for the remainder of the year as population growth slows and supply overtakes demand.

BELT-TIGHTENING

This will be a belt-tightening year for many of our members. A lot of the more recent members to the profession will not have experienced a market like this and may struggle.

I strongly recommend that you take steps to ensure you are prepared for tougher times and have strategies in place in your business to adapt to changes in the market and in your business environment.

Now may be the time to seek professional advice from your accountant or business advisor to make sure that your business

model is programmed for success in this environment and that costs are trimmed wherever possible in areas that you can control.

ADVOCACY

Over the last year we have renewed our focus on advocacy and policy so we can better explain to members what we are doing in this area and why.

As an organisation, REIWA is much more than a real estate portal, training provider, research centre and source of documents and forms. Established almost 100 years ago, our core function is to represent the interests of our profession.

We advocate to current and future governments and to the public, especially around those legislative areas that impact us both locally and at a national level.

Our increasing media prominence has made us the preeminent property body in WA that government and business look to for factual and accurate market commentary.

ISSUES

We have had a busy year responding and advocating on a range of issues such as input on reforming strata titles legislation, negotiating changes to the REBA’s Code of Conduct, ensuring retention of the $430,000 stamp duty concession for first homebuyers, raising the issue of increased compliance costs for property managers, and advocating against changes to the First Home Owner Grant.

Federally we have been busy with national issues like negative gearing, foreign investment and housing affordability.

To better illustrate our work in this area we have revived the advocacy member’s site on reiwa.com and more recently sent to licensees and associate members our inaugural, annual advocacy publication that outlines our policy positions and why we argue for them.

STATE BUDGET

The recent State Budget contained mixed results for our profession, our members and the public.

There was a focus on reducing the impact on households but there were changes that impacted first homebuyers with grants and property investors with land taxes.

The decision to apply the First Home Owners Grant only to new construction is very disappointing and disadvantages those buyers who seek an established home whilst favouring new construction with a generous $10,000 subsidy at enormous cost to government and ultimately the WA taxpayer.

However, the bigger decision by the Treasurer to leave the stamp duty exemption in place for first homebuyers was a win for REIWA and something for which we had strongly argued.

DAVID AIREY

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LAND TAX

The massive 24% increase in land tax will further discourage and deter property investors.

Partly because of the unfairness of repeatedly slugging investors in three successive budgets, but mostly because it shows how reliant state governments are on property taxes.

This must stop. A state tax review is long overdue and I’ve made repeated calls to the government to do this.

I have publicly undertaken to pursue this issue vigorously because I believe we really need a comprehensive overhaul of WA property taxes with the aim of making them fairer, balanced, more efficient and sustainable.

I do take some heart from a comment made by Treasurer Nahan that stamp duty is a difficult and unreliable tax. Perhaps he is signaling that a future government may look at other options?

I trust that REIWA will be at the forefront of any discussions on these options.

QUICK FACTABS data show home and unit approvals across WA fell 8% in February, down 30% from their peak in June 2014. However, there were 1,460 loans approved in March for new housing construction in WA, up from 1,279 in February. The total number of WA housing finance commitments was 7,551, up from 7,473 in February, and the increases were in the wake of February’s interest rate cut.

OUR REIWA.COM

From a public perspective, reiwa.com is our face and our branding out there in the community.

In this regard, I hope you’ll agree with me that reiwa.com has never been better, more easy to use and more pleasing on the eye.

The time and money we have invested in our flagship portal is paying dividends with increased usage, greater recognition and positive feedback from the public.

I cannot emphasise how important it is for you as a REIWA member to use and support your member site before any other. In your office, please take time to talk to your staff and colleagues about making reiwa.com the first choice for information and services.

Our success will enhance your business and REIWA’s status in WA.

The value to members is also one of lower business costs, now even more improved with the launch of the REIWA SmartShare program.

I hope you have taken the opportunity to ensure that your licensed staff have all applied for REIWA Associate membership so as to maximize the benefits that your company and staff will receive.

MEMBER BENEFITS

As we move into the second half of the year I encourage you to have a closer look at the products and services the institute can offer to assist your business and help your career.

Please contact REIWA member services for assistance. A REIWA account manager will be happy to visit your office and explain all the benefits and services that REIWA provides.

We are here for you, so please make the best use of your membership by taking advantage of all that REIWA and its partners have to offer.

6 REIWA NEWS

By REIWA CEO Neville Pozzi

In my last report I referred to the focus that Council and the executive were placing on advocacy.

You should all have recently received the new Shaping Our Industry publication which highlights the lobbying being undertaken for the real estate industry by the REIA and REIWA.

Locally, we are focussing on the Code of Conduct review, the Residential Tenancies Act, off-the-plan commission on sales, the Sale of Land Act and Perth and Peel @3.5million.

Shortly we will be communicating with all state parliamentarians, providing them with information on the marketplace and an overview of our position on matters affecting the real estate industry. This communication will become a regular quarterly report to keep our parliamentarians informed about the state of the market.

COMPLIANCE COSTS

We have received a detailed response from the Commissioner for Consumer Protection in relation to compliance cost increases with the new Residential Tenancies Act. We will be working closely with the Department of Commerce to discuss ways in which compliance costs can be reduced.

It was pleasing to see in the 2015/16 Budget that the government took on board our recommendations concerning the stamp duty concessions for first homebuyers and did not alter the current thresholds.

PUBLIC PERCEPTIONS

As part of our brand strategy we undertake an annual public survey to compare with baseline research how we are progressing across a number of areas and whether the current activities are working or require some adjustment.

It is pleasing to see that awareness of REIWA has increased from 83% to 92% in the last two years and this reflects an excellent level of awareness which is near saturation.

Public perceptions of the industry are consistent with the 2014 results and sit around 42%. We need a deeper understanding of why it remains below 50% and a separate marketing strategy will be required to address public opinion.

A pleasing aspect of the survey results was the increase placed by the public on the importance of an agent being a member of a professional association. This metric increased by 12% on the 2014 results with 72% of respondents believing it was important for agents to be members of a professional body.

reiwa.com achieved a brand loyalty score of 63% which represents substantially increased loyalty, resulting in reiwa.com being 1% ahead of our major competitor.

MEMBER PROMOTIONS

We have been encouraged by the efforts of individual members, especially in the western suburbs. These agents have been promoting reiwa.com in their advertisements in

local newspapers and hopefully other members will follow this lead to create greater awareness of reiwa.com as the go-to place for WA real estate.

reiwa.com continues to evolve with a number of new initiatives to be released shortly, including an enhanced mapping system, mobile applications for the public site and a mobile-friendly members’ site.

Registration forms for both the property management and sales conferences to be held on 17 and 18 September respectively have been sent out to all members. An excellent program and range of speakers has been organised and special mention must go to the property management and sales networks for organising both of these events.

REGIONAL VISIT

Finally, the president, deputy president and chief executive officer recently visited the Goldfields/Esperance and Busselton branches.

It was encouraging to note branch members’ overall satisfaction with the institute and no major issues were raised. It was also pleasing to see that both branches had seen an improvement in market activity.

NEVILLE POZZI

message from thechief executive officer

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business partners

REIWA would like to thank the following partners for their generous support of the Institute and its members.

Life and Benefits – Life and Disability Insurance Specialists

8 REIWA NEWS

debunking the seven year moving myth

REIWA data show it is a myth that WA homes change hands once every seven years.

Updated analysis of REIWA’s State Budget submission covering the period from 1990/91 to 2013/14 indicates that as the dwelling stock in WA increased from 586,000 to 992,000, the average turnover time increased from around 14 years to 21 years.

This indicates that owners and investors are holding property longer and debunks the long-held myth that households move on average every seven years.

HIGHS AND LOWS

The peak turnover rate of 11 years occurred in 2005/06 during the height of the property boom and record turnover.

Conversely, the longest turnover period of 25 years occurred in 2010/11 as markets across WA recorded turnover levels not seen since the 1990/91 recession.

Subsequent regional and sub-regional analysis has been undertaken and reveals some interesting, surprising and not so surprising trends around WA.

PERTH

In the Perth metropolitan region, the general shift in turnover is not as significant as the overall state figure, with the average turnover rate easing from 14 to 19 years.

Disaggregating the turnover by dwelling type indicates that owners of multi-residential property (of which nearly 50% are investors) have traditionally held and continued to hold property longer with

elevated turnover periods compared to the detached housing stock which represents 78% of Perth dwellings.

Disaggregating the analysis into Perth’s sub-regions also highlights a number of variances in turnover periods.

PERTH SUB-REGIONS

The Central Sub-region, with a longer hold period in the early 1990s part of the analysis, reflects the dominance of this area in terms of Perth’s dwelling stock.

In the early 1990s, the Central Sub-region had 59% of the dwelling stock and this progressively fell to 47% by 2013/14, having passed through the 50% mark in the 2006-08 period.

In the Outer Sub-regions, the higher turnover period in the north-east most probably reflects the more tightly held nature of property in the hills.

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Dwelling Sales (All DUs)Dwelling Stock (x10)Turnover (Years) (RHS)

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Dwelling Stock Turnover in WA -1990/91 to 2013/14

Ave Sales

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Turnover Analysis

1990-91 to 2013-14

Turnover Time

(years)

Turnover Time

(years)

From To Fastest Slowest

Western Australia 14 21 11 25

Perth Metro Region 14 19 11 23

Regional WA 16 27 12 32

Peel 9 20 9 25

South West 16 26 13 31

Great Southern 18 34 14 42

Goldfields 14 23 8 28

Wheatbelt 26 42 16 51

Mid West 16 31 12 35

Gascoyne 19 32 11 35

Pilbara 29 33 13 57

Kimberley 24 38 14 51

“Turnover Analysis

1990-91 to 2013-14”Turnover (years)

From To

Perth Metro Region 14 19

Houses 14 18

Multi-Residential 16 23

Central Sub-Region 15 19

Inner Sector 15 19

Middle Sector 14 19

Outer Sub-Regions 14 19

North West 13 19

North East 14 21

South East 12 19

South West 14 18

The more rapid turnover in the south-east during the early 1990s most probably reflects both the higher turnover associated with the strong presence of first homebuyers and investors, and also the effects of the possible forced sales due to negative equity that accompanied the recession in the early 1990s - which also may have influenced the lower figure in the north-west.

REGIONAL WA

The change in turnover times in regional WA is highly variable and reflects changing economic fortunes, population growth, investment trends and lifestyle choices.

Key observation related to the various regions are:

Peel - high turnover of discretionary holiday dwellings has given way to a growing population base and turnover rate more akin to Perth

South-West and Great Southern - reflecting the general upward trend in turnover time associated with lifestyle living choices and holiday homes

Goldfields - high investor activity in Kalgoorlie-Boulder likely to be influencing the general turnover times

Wheatbelt - starting from a higher base, the increase in the holding period reflects the well documented decline of rural communities

Mid West - the mix of rural and holiday settlements beyond Geraldton-Greenough (13 to 25 years) is influencing the recent turnover rate

Gascoyne - lower sales activity in the post GFC period has blown out the turnover rate which is heavily reliant on Carnarvon, Exmouth and Denham

Pilbara - little change across the analysis period masks an extended period when the turnover period averaged some 20 years from the mid 1990s to 2010

Kimberley - low turnover in sparsely populated small communities has generated turnover times not dissimilar to the Wheatbelt

10 REIWA NEWS

property management platforms risk investor security

During this time of economic downturn, some property investors might be lured into self management by various so-called self-help portals that are emerging on the internet.

While the residential property market may be experiencing a 4.5% vacancy rate along with a moderate dip in weekly rental, agencies and property managers should point out to landlords that the important issues remain the same no matter what the prevailing rental market conditions may be.

IMPORTANT SKILLS

Investors should know that when the pool of prospective tenants decreases, it becomes more important than ever to engage the services of a highly skilled property manager.

Professional managers can ensure owners achieve not only the very best rental amount possible but also attract a quality tenant who will look after the property and pay the rent, at the same time keeping all residential management matters fully compliant with tenancy laws.

Although many investment property owners are highly articulate, they often don’t have the time to fully educate themselves about all legislation governing residential tenancy, leaving them exposed to litigation.

GUIDANCE AND PROTECTION

A current trend of self-help platforms has been the emergence of websites to assist owners in managing their own property.

What many do not realise is they will be paying for information that may or may not be compliant to their particular state or region.

The information also might not take into account various local factors that influence the rental market at any given time.

Many of these sites also leave the uneducated investment property owner exposed and offer little guidance or protection in the event of the tenancy relationship souring.

CRITICAL ISSUES

With compulsory professional development required of each and every registered property manager in WA, it should be explained to property owners that they can rest assured their agent is fully conversant with any changes to legislation or consumer law trends.

All things considered, utilising the services of property management professionals is an investment in the future of any investor’s property portfolio.

These critical issues should be pointed out to landlords who are tempted to cut costs by using property management platforms on the web.

AUDIT APPROVAL FOR WA PROPERTY INDUSTRYREIWA has welcomed the findings of a review by WA’s Auditor General into the regulatory structure protecting consumers in the real estate industry.

The Auditor General found the risk of direct financial loss to consumers remains low and the Commerce Department has acted promptly since 2011 to investigate complaints and potential breaches of legislation governing WA’s property market.

He noted that the vigilance of real estate agents is critical to prevent property fraud.

REIWA president David Airey said it was gratifying that the Auditor General had found the regulatory system is working well both for the industry and consumers, most of whom report a positive experience dealing with agents.

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12 REIWA NEWS

weak residential market likely for some time

Property market turnover and capital gains have been weak this year due to a combination of rising unemployment, slowing population growth, first homebuyers choosing new instead of established dwellings, low consumer confidence and growth in largely multi-residential housing supply.

With more than 14,000 listings on the WA property market and well over 7,000 Perth rental dwellings looking for choosy tenants who enjoy a vacancy rate of 4.5%, turnover is frustratingly slow for many sales representatives and property managers.

CLOUDY DAYS

Countering these negative influences are two interest rate cuts since February, prospects of rate stability or possible further cuts, and adequate savings rates or write down of debt by many people.

The current cloudy days of winter traditionally see a lull in Perth property markets as potential buyers stay home to avoid the cold and rain, but the historically low interest rates in particular should see turnover improve as we move into the spring and summer months.

SALES MARKETS

In the March 2015 quarter, Perth home listings were on the market for an average 68 days, up from 57 days in the previous quarter.

Listings were up 14% in the quarter but the median house price was steady around $550,000, and the proportion of sellers willing to drop their price

(average 6% discount) increased from 54% to 56% (45% in March 2014).

About 11,300 properties were sold across WA in the March quarter, up 3% on the previous quarter but down 11% on the March 2014 quarter.

House prices across Perth were mostly flat in the March quarter, although there was some increase in more middle distance suburbs offering affordable properties such as Kiara, Maida Vale, Langford, Balga, Girrawheen, Medina, Mundaring, Kwinana, Gosnells, Rockingham and the north-west and southern parts of Wanneroo.

Sales turnover lifted about 10% for multi-residential properties such as units, apartments and villas but prices for such dwellings dipped about $5,000 or 1% to a median of $440,000.

In the three months to May, Perth’s median house price was steady at $547,000. There were 2,067 house sales in May, down 16% on May 2014. REIWA figures show 14,363 listings reported in May, up 35% on May 2014.

RENTAL MARKETS

By April 2015, Perth’s median rent was $425 per week - down $50 or 10% since the peak $475pw in June 2013. Average house rent was $440pw and average apartment/villa rent was $400pw.

The April vacancy rate was 4.5%, with 7,616 rental properties on the market.

In the March quarter 2015, Perth median rent was $450pw for a house and $420pw for an apartment or villa, with the residential vacancy rate at 4.4%. By May 2015, Perth rent levels had fallen 9.5% from their peak of $475pw in mid 2013.

There has been an increase in the number of investors removing their properties from the rental market and instead listing them for sale.

REIWA believes Perth’s excess rental stock will not be sufficiently absorbed until 2017 for rent levels to again start rising, partly due to record construction of multi-residential units such as apartments which will continue to inflate supply when the new stock is delivered to market.

REGIONAL MARKETS

Regional markets performed better during the March quarter than the metropolitan area, with the median house price in the regions lifting by 2% to $390,000. Country units and apartments also lifted by just over 3% to $340,000.

Busselton Urban Area house prices had 5.7% growth to $460,000 in the year to March, making it the best performer in WA’s regions.

Albany saw 4.1% growth to a median house price of $385,000 over the 12 months, with Mandurah/Murray at 1.3% growth to $405,000, Bunbury at 0.3% growth to $380,000 and Kalgoorlie/Boulder with just 0.1% growth to $343,000.

All seven other regional centres had negative growth. The Karratha median house price fell 33.8% to $450,000, Port Hedland 11.4% to $753,000, Broome 5% to $585,000, Northam 5% to $261,000, Esperance 3.3% to $365,000, Carnarvon 2.3% to $312,500, and Geraldton/Greenough 0.8% to $377,000.

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LOT SUPPLY

Landgate’s April 2015 Business Activity Profile (BAP) shows a 51% increase in the number of strata lots created in WA compared to March (789), reaching an eight year high (year-to-date) that was up 20.3% compared to April 2014 (990).

The April BAP also reported a seven year high on the number of subdivisional lots created, with the number of new freehold titles created at its highest level in three years.

The spike in strata lot creation reflects the emergence of high density accommodation such as apartments in Perth. The total number of documents lodged in April 2015 (28,417) decreased by 4.05% compared to March (29,617) and decreased by 2.88% compared to April 2014 (29,261).

SENTIMENT

Consumer sentiment was in decline throughout much of 2013 and 2014 but the two interest rate cuts so far this year saw a rebound which is bolstering otherwise weak confidence among homebuyers.

Consumer and business confidence was also supported by May’s Federal Budget which, despite questionable growth forecasts to reduce debt, was well received by most economists and community groups.

However, surveys in mid May showed a significant dip in WA consumer confidence following release of the State Budget and continuing negative news from the resource sector, despite confidence improving in all other states.

DOWNSIZER PROFILEResearch by the Australian Housing and Urban Research Institute shows more than 250,000 Australians aged over 50 have downsized by relocating to a smaller dwelling, with 69.1% moving to a single storey house, almost 50% to a two bedroom home and almost 42% to three bedrooms.

Almost half the respondents aged at least 50 said they had downsized when moving.

A Shelter WA Housing Research Review found that downsizers are most likely to be female, single, living alone, fully retired, dependent on superannuation or the pension, and aged from 65 to 74.

A survey by Slater and Gordon Lawyers found that 36% of West Australian respondents had sold at least one property in the past 10 years, with various reasons for selling: 13% upsizing; 17% relocating interstate or overseas; 14% moving to a preferred suburb; 11% moving closer to work or school; 9% downsizing; 6% unaffordable mortgage repayments.

AUCTION POPULARITY GROWSAlthough auctions account for just 2% of Perth property turnover, this sale method is increasing popular.

Most WA property groups have reported greater numbers of auctions, partly because private treaty sales in Perth are currently on the market for about 70 days, with both sellers and buyers becoming increasingly comfortable with the auction process that is common in the eastern states.

For example, auctions conducted by the Acton property group reportedly increased 56% between 2012/13 and 2013/14, while Abel and McGrath staged a record 121 auctions in 2014 with a target of 250 this year.

See page 39 for information about auction training.

QUICK FACTRecent figures show the number of full-time equivalent jobs in WA’s mining industry fell from a record 108,670 in August 2013 to 87,330 in February 2015, with several thousand more job losses since the official statistics were released. In the petroleum sector, full-time onshore jobs fell 55% from 4,131 in June 2012 to 1,825 at the beginning of 2015.

14 REIWA NEWS

perth apartment supply Because a home loan deposit*doesn’t have to be a big exercise.

Find out if you initially qualify.keystart.com.au/twopercent

Disclaimer: Standard lending criteria, terms, conditions, fees and charges apply.

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The Perth High Density Apartment Report published by Master Builders and Y Research in March 2015 found 121 apartment projects under construction, approved or being designed in 19 suburbs within five kilometres of the CBD.

If and when completed, these projects could add 10,685 apartments to the inner city market by 2020 - a 56% increase on current supply.

The report found there were 531 buildings with 19,064 apartments currently within the study area, with 51.5% of it built in the past 15 years, 731 apartments available to rent at the end of January, and 620 for sale.

The apartment vacancy rate was 3.8% at the end of January.

PROPORTIONS

Apartments count for more than 20% of new dwelling approvals in WA and the supply of inner city apartments has increased 34% since 2010.

Across the Perth metropolitan area, new apartment supply is expected to increase by 2,855 this year and 3,800 new apartments will be built in 2016.

The report found about 59% of apartments under construction in Perth are two bedroom, of which 85% have two bathrooms, with three bedroom construction down to 5% and one bedroom apartments about 38% of new supply.

PRICE GAP

Research by property economists Urbis in early 2015 found a $107,750 gap between Perth’s median house and unit prices.

Urbis says 17% of all Perth dwelling approvals in 2014 were for apartments and believes buyer trends will be similar to Brisbane where the apartment proportion of all new dwellings increased from 18% five years ago to around 44% in 2014.

Foreign buyers made up just 7% of Perth apartment buyers in the March quarter 2015, at which time Urbis calculated 4,279 apartments were under construction.

MULTI-RESIDENTIAL APPROVALS

Approval data show the proportion for detached housing such as flats, units, townhouses and apartments in Perth stood at 27% by the end of 2014, up from 16% in 2009 but not yet matching the record level of 29% in 2008.

In greater Perth during 2014, there were 20,071 housing and 7,473 non-housing approvals.

During 2014, two storey semi-detached housing approvals increased 32.6% to 1,185, two storey apartments increased 34.5% to 1,138, and four storey or higher apartment approvals were up 60% to 3,172.

QUICK FACTPlans have been lodged with the Metropolitan Redevelopment Authority for two residential towers at Kings Square in central Perth of 48 and 42 storeys respectively. If approved, the developments will contain 563 apartments with some retail on the ground floor and will occupy about one hectare of the Perth City Link project including the site of the former Perth Entertainment Centre.

QUICK FACTThe City of Bunbury is awaiting WA Planning Commission approval for a new town planning scheme and strategy that clears the way for higher density developments such as townhouses, apartments and multi-storey residential towers. About one in three Bunbury households is single person and the South-West Development Commission expects the greater Bunbury population will swell to 300,000 by 2050.

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Because a home loan deposit*doesn’t have to be a big exercise.

Find out if you initially qualify.keystart.com.au/twopercent

Disclaimer: Standard lending criteria, terms, conditions, fees and charges apply.

Australia Credit Licence 381437

“Give it 2%!”

16 REIWA NEWS

The total population of Perth increased by 48,400 or 2.5% during the 2013/14 financial year to just over two million.

In the decade to 2014, the city’s population grew by 500,000 or 137 people each day. Perth is now home to 78.5% of WA’s 2.5 million residents, up from 76.7% in 2004.

Perth’s population grew an average 2.3% per year in the 20 years from 1991 to 2011, compared to a national average of 1.5%, with the largest growth in north-west Wanneroo where the population increased 40.3% over the two decades.

Overseas migrants were the main new residents with Indians and Asians an increasing proportion.

The WA Treasury forecasts WA population growth of 2% in 2015/16, rising 0.1% in 2016/17 and in 2017/18.

SUBURBAN GROWTH

The fastest growing suburban area in Australia over the decade was Forresdale-Harrisdale-Piara Waters where the population increased 928% from 1,311 to 13,500.

The number of inner city Perth residents almost doubled from 16,891 to 32,000, which is more than central Sydney.

Bunbury’s population in 2013/14 was 105,000 and the population of Mandurah is expected to exceed 100,000 in the coming year, having grown 50% in the decade to 2014.

Over that decade, approval was given for 266,776 dwellings in WA, of which 79.5% were detached houses and 9.9% were apartments.

STRATEGIC PLANS

The WA Planning Department has released its strategic plans for the location and amount of development required to house a population of 3.5 million by 2050 in the Perth/Peel region.

The strategy anticipates an additional 417,000 people living in the central region incorporating Stirling, Bassendean, Belmont, Canning, Melville and Fremantle.

North of the river and excluding this central region, an additional 659,266 residents are expected to settle, while the southern region including Peel will see population growth of 736,594.

To house these newcomers, it is anticipated that just over 676,000 new dwellings costing about $338 billion will be built in the next 35 years.

In the Perth and Peel metropolitan areas, an estimated 800,000 new dwellings will be built by 2050, almost half in existing suburbs.

FUTURE GROWTH

The fourth Intergenerational Report released in early 2015 predicts that Perth’s population will increase to four million by 2050.

Australia’s population will increase to almost 40 million by 2055, of whom 1.9 million will be aged at least 85. The life expectancy of boys born in 2055 will be 95.1 years and 96.6 years for girls.

Average income is tipped to be about $360,000 and 70% of women will be in the workforce compared to the current proportion of 66% and 46% in 1975.

A Regional Investment Blueprint paper released by the Pilbara Development Commission forecasts the region’s population could triple to 200,000 by 2050.

The paper lays out the foundations for expanded industries outside the resource sector, along with university and TAFE campuses, cultural and sporting facilities, more hospital beds and 60,000 homes, and complements the government’s plan to transform Karratha and Port Hedland into cities of 50,000 by 2035.

population tally

QUICK FACTWA is enjoying a baby boom which is likely to have a subtle influence on buyer housing preferences. In the year to September 2014, a record 34,916 children were born in WA, equating to almost 96 babies per day, and these new people are helping offset a decline in interstate immigration.

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Hundreds of apartment buildings in Australia’s $500 billion strata industry could be at risk due to the possible use of unsafe products in Australian construction.

Strata Community Australia, the peak industry body for strata and community title management in Australia, is urging owner corporations nationwide to immediately carry out building inspections as fears rise concerning the widespread use of unsafe, imported building materials.

Following an investigation into a fire at the Lacrosse apartment block in Docklands, Melbourne, there are concerns that a commonly used external aluminium cladding product poses a very serious fire risk to the Australian construction and strata sectors.

The product at the centre of these warnings is Alucobest, a significantly cheaper, Chinese imported substitute for the more fire-retardant, non-combustible, Australian made Alucobond.

After reports that this product has been a popular choice for high-rise apartment builders over the past 10 years, Strata Community Australia said it is imperative that owner corporations take immediate steps to assess building safety and strata managers communicate the importance of this practice to their clients.

More than 100 residents and owners of the Lacrosse building in Docklands are now reportedly considering a class action against the builders.

call for urgent apartment inspections

REDUCED AIRCRAFT NOISE MAY INFLUENCE MARKET POPULARITYAirservices Australia is trialling new flight paths, altitudes and runway usage times for Perth Airport that will alter and mostly reduce aircraft noise which can influence real estate markets in surrounding suburbs.

The suburbs most affected by the new pattern of arrival and departure plane movements are Guildford, Greenmount, Queens Park, Redcliffe, Carmen and Bickley.

A significant change involves shifting the airport arrival path further east from Lesmurdie, Kalamunda, Gooseberry Hill and Helena Valley.

Also influencing the amount of aircraft noise heard now and in the future by residents in the airport’s surrounding suburbs are the construction of a third runway by 2020, new technology allowing glide rather than stepped descents for landing, and significantly quieter aircraft being introduced by the major carriers.

QUICK FACTWork is scheduled to begin in 2016 on the $1.2 billion Swan Valley bypass road, a 37 kilometre link to Muchea from the intersection of Reid and Tonkin highways that will allow trucks to avoid the Swan Valley tourist strip along Great Northern Highway while improving congestion on West Swan Rd and Lord St. The project is expected to be completed in 2019.

18 REIWA NEWS

Planned school Address Opens Years

Alkimos Catholic College TBA 2017 K-Y12

Annie’s Landing Primary School TBA, Ellenbrook 2016 K-Y06

Broome North Primary School Tanami Drive, Waranyjarri, Broome 2015 K-Y06

Byford Catholic College Cnr Abernethy and Warrington Roads, Byford 2016 K-Y12

Byford (South West) Primary School TBA 2017 K-Y06

Carey Baptist College Lot 2 Nicholson Road, Forrestdale 2016 K-Y12

East Landsdale Primary School TBA 2017 K-Y06

Harrisdale Secondary School TBA 2017 Y07-Y12

Heron Park Primary School TBA 2016 K-Y06

Kerosene lane Primary School TBA, Baldivis 2017 K-Y06

Lakelands Senior High School TBA 2019 Y07-Y 12

Rivergums Primary School TBA, Baldivis 2016 K-Y06

South West Alkimos Primary School TBA 2017 K-Y06

St James’ Anglican School TBA 2016 K-Y12

Trinity Primary School TBA, Alkimos 2016 K-Y06

new schools influence markets

Most real estate agents report that a large proportion of potential buyers ask about school proximity when deciding whether to purchase a listing and the building of nearby schools is said to often add tens of thousands of dollars to property values.

Below is an Education Department listing of planned new school scheduled to open in the next few years.

As outlined in the 2015/16 State Budget, the Education Department will invest an additional $191 million over the next four years for commencement and completion of the following projects:

• $60.5 million for construction of South Baldivis Senior High School

• $57.2 million for construction of Yanchep Senior High School

• $29.8 million for amalgamation of Hamilton Senior High School and South Fremantle Senior High School into the new Fremantle College

• $17.6 million provided under Royalties for Regions for Stage Two of the redevelopment of Carnarvon Community College

• $8.5 million for new and refurbished buildings at Armadale Senior High School and Cecil Andrews Senior High School

• $6.8 million for Stage Three of the redevelopment of Willetton Senior High School

• $5.5 million for additional permanent accommodation for Highgate Primary School

NEW HOUSING SLOWDOWNHousing Industry Association data show a 6.4% drop in WA new house sales during the March quarter.

HIA data show there were 29,853 new housing starts across WA in 2013/14 and total dwelling commencements are expected to be 30,569 in 2014/15.

The HIA expects building to start on 25,550 WA homes in 2015/16 and drop further to 23,850 in 2016/17.

The Housing Industry Forecasting Group expects WA dwelling starts to fall 23% to 23,000 in 2015/16 and bottom around 20,000 in 2016/17 before lifting to about 22,000 in 2017/18.

Although the declines are significant, the numbers remain well above the low of 17,785 new dwelling starts in 2011/12 after the First Home Buyer Grant boost was withdrawn.

QUICK FACTMortgage Choice data show more than one in three first homebuyers in WA purchased alone during 2014, up 37% on 2013, with the Australian Bureau of Statistics forecasting that the number of sole-occupant households in Australia will increase 65% to 3.4 million by 2040.

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20 REIWA NEWS

big shifts in retail property sector

Two significant changes affecting Perth’s retail property sector are major expansions of suburban shopping centres and the looming appearance of the German retail giant Aldi.

A development application has been lodged with the City of Stirling for a $600 million development at Karrinyup Shopping Centre that could double its size from 57,000sqm to 113,000sqm including new shops, leisure and entertainment outlets.

The proposal includes 150 adjoining apartments and the centre expansion, its first renovation since 1998, is anticipated to create about 2,500 retail, support and management jobs.

If approved, work is expected to begin in late 2016 and take three years to complete.

Meanwhile, plans have been lodged for a $450 million expansion of the Westfield Innaloo shopping centre from 51,300sqm to almost 99,000sqm including about 110 new retail outlets, a rooftop dining and entertainment precinct and up to 500 new apartments. If approved, the revamped Westfield Innaloo is expected to open in early 2018.

Plans have have also been advanced for expansion of the Garden City and Westfield Whitford shopping centres to 120,000sqm and 77,500sqm respectively, both projects including hundreds of apartments.

ALDI

Discount supermarket chain Aldi has purchased the Captain Stirling Shopping Centre in Nedlands and it is not known if the complex will be refurbished or demolished for redevelopment.

Any development application is likely to be considered by a development assessment panel but the City of Nedlands has expressed concerns about possibly detrimental traffic consequences for the area.

The Nedlands purchase by Aldi is part of its $450 million push to establish more than 70 stores in WA.

Other proposed locations are Innaloo, Kwinana, Southern River, Cannington, Mundaring, Cloverdale, Australind, Halls Head, Rockingham, South Lake, Joondalup, Camillo, Midland, Ellenbrook and Mandurah, with plans for the first 20 stores to open in the latter half of 2016.

RETAIL RENTS

Retail rents have been increasing in high street locations such as Beaufort St, Oxford St and Albany Highway in Victoria Park, but fallen in western suburb locations such as Bay View Terrace and Rokeby Rd.

However, the rent reductions have begun to attract new tenants and positive sentiment is emerging in Subiaco with major redevelopments such as the Pavilion and Station

St markets expected to increase the district’s popularity as a shopping and social hub.

WA retail sales were up 0.7% in February but turnover slipped 0.3% in March and 0.1% in April. Seasonally adjusted retail turnover in WA averaged $2,727,700,000 per month in 2014 and from January to April 2015 averaged $2,782,400,000 per month.

Foot traffic monitoring in Fremantle (Adelaide St, High St, Market St and South Terrace), Claremont (Bay View Terrace), Subiaco (Rokeby Rd) and Victoria Park (Albany Highway) has shown a collective reduction of 5% between the March quarters of 2014 and 2015, with pedestrian numbers down in all high streets except Victoria Park where a highway retail strip rejuvenation is attracting more shoppers.

QUICK FACTThe Urban Development Institute of Australia estimates the median size of lots created in the Perth metropolitan area in 2014 was 428sqm, with median prices increasing 9.4% to $261,000. Developers in Perth released 13,151 lots, up 7.3% on 2013, while sales fell 13% to 11,935.

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neWs & FeAtURes 21

commercial market remains weak

The office vacancy rate in Perth’s CBD market is tipped to exceed 20% over the next 12 months.

JLL research shows the office vacancy rate in Perth’s CBD increased to 16.6% during the March quarter, the highest level of any Australian capital city.

Prime gross effective rents in Perth dropped 3.1% in the quarter, down 17.9% from a year earlier, and lease incentives are becoming increasingly common.

CBRE is forecasting the CBD office market vacancy rate will rise to 20.5% in late 2015 or early 2016.

The CBD is expected to get 90,000sqm of new office space this year and 43,000sqm in 2016, with CBRE estimating that about 64% of this space is pre-committed.

SALES IMPROVING

There were few major commercial property sales in or around the Perth CBD in 2014 but there has been a significant increase so far this year.

Declining rental income and rising vacancies are causing headaches for commercial landlords but office leasing agents have been kept busy relocating clients seeking better deals, partly because Perth leases are more short-term than in other cities.

The Reserve Bank has warned rental prices in the Perth CBD are likely to be driven down by an oversupply of new office space because of slowing demand as a result of the resource sector downturn.

CBD LEASING MARKET

CBD commercial tenancy demand from the resource sector has waned, although 38% of total office stock leased in the year to March was from mining-related companies, and Savills recently reported that average net face rent for B grade stock had dropped from $525 per sqm to $395 per sqm with further falls expected.

Commercial property managers face a more challenging market but the falling rent levels are attracting a broader range of clients priced out of the CBD market in years past.

Landlords are targeting tourism, agribusiness, education, healthcare, IT and legal tenants, with the diverging market typified by Channel Nine’s decision to lease 2,500sqm for a new studio headquarters in St Georges Terrace.

SUBURBAN MARKETS

The West Australian Suburban Office Report compiled by Y Research shows about 30,000sqm of urban space was leased in the six months to March 2015, during which time the suburban vacancy rate dropped from 14.1% to 13.3%.

The report forecasts a shortage of tenants and increasing vacancies as more than 25 suburban office projects with more than 110,000sqm of extra space come online during 2015.

BUILDING LEVY PROTEST

The Property Council has protested a 0.047% increase to the State Government’s building services levy which is claims will add $23,500 to the cost of a typical $50 million commercial development, and has called for a cap on levies for commercial projects.

The levy increase will fund an online lodgement and processing system for the building and plumbing industries.

QUICK FACTLand sales and civil works have begun on the first stage of a planned $4.9 billion urban redevelopment covering 106 hectares along 1.5 kilometres of the Cockburn coast that will eventually house 12,000 people. The project between South Beach and Port Coogee is expected to take as long as 20 years to be completed and a centerpiece will be redevelopment of the old South Fremantle power station for apartments, commercial offices and public open space. The 47 hectare first stage plans for 2,500 homes, 10,800sqm of commercial/retail space and a primary school.

22 REIWA NEWS

the long awaited ta x discussion paper

By REIA policy manager Jock Kreitals

The Federal Treasurer has released the much anticipated Tax Discussion Paper signalling the start of a public debate on taxation reform in Australia.

The discussion paper was designed to review ways of developing a better tax system that delivers taxes which are lower, simpler and fairer.

RESPONSES

Responses to the discussion paper closed at the beginning of June. The government will release a tax options Green Paper in the second half of 2015 and will then seek further feedback on the options before putting forward its policy proposals in a White Paper in the lead up to the 2016 federal election.

The REIA has formally responded to the discussion paper and launched its own report into negative gearing and Capital Gains Tax.

PROPERTY INVESTMENT AND NEGATIVE GEARING

The discussion paper highlights the following regarding negative gearing.

• The tax treatment of investment properties is the same as it is for investment in any asset that produces a mix of current income and capital gain. That is, the rental income is taxed at the individual’s marginal tax rate as it is earned, while generally only half of the capital gain is taxed and only when the property is sold.

• Negative gearing does not in itself cause a tax distortion, but it does allow more people to enter the market than those who might have had the equity alone to do so. This behaviour is encouraged by the CGT discount.

• Contrary to popular perception, negative gearing is not a specific tax concession for taxpayers with investment properties - it is simply the operation of Australia’s tax system allowing deductions for expenses incurred in producing assessable income (Chapter 3 - Individuals).

• The majority of taxpayers with negatively geared properties fall into the middle income bands but the proportion of taxpayers with negatively geared properties increases as taxable income increases.

• Any tax advantage for individuals investing in property does not come from borrowing gearing but from the taxation of the capital gain.

• It would not be appropriate to tax either the imputed rent on owner-occupied housing or capital gains derived from it.

THE GOODS AND SERVICES TAX

The paper notes at the beginning of its discussion on GST that unanimous agreement by all state and territory governments is required to legislate any changes, as well as both houses of the Australian parliament.

Consequently, the paper then states that the Australian government will not support changes to the GST without a broad political consensus for change, including agreement by all state and territory governments.

In what seems to be making a case for an increase in the rate of the GST and an accompanying cut in income and company tax rates, the paper notes that Australia’s GST rate is one of the lowest among developed countries and is roughly half the average rate among OECD countries.

STAMP DUTIES AND LAND TAX

The paper notes that not only are stamp duties some of the most inefficient taxes levied in Australia, but their consequences also impede economic growth.

In regard to land tax, the paper does not appear to be advocating for their introduction but notes that:

• Australia’s reliance on taxes on land, as a percentage of total taxation, is higher than the OECD average but around half the proportion raised in the US, the UK and Canada.

• Land tax is currently applied in all Australian states and territories other than the NT.

• The range of exemptions applied, primarily to owner-occupied housing and agricultural land, and progressive rates applied introduce a bias against large investments in residential property and discourage institutional investors from investing in private rental housing.

• An “ideally designed land tax” would result in a once-off reduction in the value of the land and landowners would bear the full cost of the tax and would not pass any onto renters.

• The introduction of a 20 year program by the ACT government to abolish stamp duty by steadily increasing rates and reducing stamp duty involved significant transitional costs.

If stamp duties are abolished, the forgone revenue will need to be replaced by a higher GST, as advocated by the REIA, or by a land tax which was advocated by the Henry Review.

REIA

NEWS & FEATURES 23

affordable housing report welcomed

The REIA has welcomed most findings in the Senate Economics Reference Committee’s Affordable Housing report and has called for a comprehensive approach by the Federal Government to tackle declining affordability, particularly for first homebuyers who are at historically low levels in the market.

In its submission to the committee, the REIA called for the Federal Government to take a leadership role in addressing the problem of inadequate supply and to work with state, territory and local governments to formulate appropriate policies.

“It is pleasing to see the report recommends the appointment of a Housing Minister and that the Federal Government take a greater leadership role in this area,” said REIA chief executive officer Amanda Lynch.

“It is also very pleasing to see the report’s recommendation that stamp duties be phased out. The REIA has long argued stamp duties are a highly inefficient tax that limits population mobility, as highlighted in the Henry Tax Review.

“However, the REIA is concerned by the report’s recommendation to review negative gearing, which has been proven to help increase housing supply and place downward pressure on rents.

“Australia has a long and proud tradition of high ownership levels and we want to see this continue into the future.

“It is very pleasing to see the government consider the new dynamics facing younger Australians and we now call on the government to follow up this review with sensible and workable actions.”

NATIONAL AFFORDABLE HOUSING AGREEMENT

In 2015/16, the Federal Government will provide funding of $1.9 billion to support state affordable housing services, including $1.3 billion through the National Affordable Housing SPP and $534.1 million through national partnerships.

This also includes $600,000 for the First Home Owner Boost, which ceased in December 2009. The continuation of the First Home Owners Boost payment in 2014/15 reflects extensions granted to applicants in exceptional circumstances by the states and territories.

A new national partnership for 2015/16 and 2016/17 is being negotiated with the states. This agreement will ensure critical frontline services are maintained.

Longer-term funding arrangements and the respective roles of the Commonwealth, state and territory governments will be considered in the context of the government’s Reform of the Federation White Paper.

QUICK FACTReserve Bank data show Australians are increasing their mortgage buffers, with the percentage getting ahead of loan repayments increasing to 16% from 14% in 2013 and 11% before the Global Financial Crisis. The proportion is probably larger as interest rates have been cut twice since the Reserve calculated its data. Australian credit card debt has also fallen by $4 billion since reaching a peak of $37.1 billion in early 2012.

24 REIWA NEWS

By REIA research of ficer Evgeniya Hawthorne

is the trend of falling home ownership r ates irreversible?

Over the five years to 2011, home ownership declined by 1.1% to 67% of occupied private dwellings.

The drop was evident across all states and territories, prompting a question on whether this was the beginning of an irreversible trend.

The National Housing Supply Council, in its 2012/13 report, shows it seems certain that the rate of home ownership will drop further.

OWNERSHIP RATES

The Australian Bureau of Statistics (ABS) Census data show that the rate of home ownership in Australia was at its highest at 71.4% in 1966 and since then lost 4.4%.

The gradual decline, however, was accompanied by slight rises and falls along the way.

Figure 1 shows the rate of home ownership in Australia since 1947.

A comparison of the Census findings with the Real Estate Institute of Australia’s data shows direct links between changes in the rate of home ownership and the level of housing affordability between 1996 and 2011.

The 2001 Census recorded that over the five years to the Census night, the rate of home ownership increased from 69.0% to 69.5%.

The REIA data show that over the same period, the proportion of median family income required to meet average loan repayments decreased from 26.6% to 25.8% - an indicator of the better housing affordability.

OWNERSHIP DECLINE

The Censuses for 2006 and 2011, however, showed the home ownership rate since then declined to 68.1% in 2006 and further to 67.0% in 2011.

During that period, housing affordability worsened with the proportion of median family income required to meet average loan repayments going up to 33.2% in 2006 and further to 35.2% in 2011.

In 2015, despite historically low interest rates, housing affordability remains low in Australia with the most affordable housing being available on the outskirts of cities despite most jobs located in the city CBDs.

As a result, many potential buyers turn to renting.

Source: Tony Kryger, Home Ownership in Australia - data and trends; Census 2006, Census 2011

50

55

60

65

70

75

2011200620011996199119861981197619711966196119541947

1. Home ownership in Australia, ABS Census data, %

20%22%24%26%28%30%32%34%36%38%40%

Dec

-96

Dec

-97

Dec

-98

Dec

-99

Dec

-00

Dec

-01

Dec

-02

Dec

-03

Dec

-04

Dec

-05

Dec

-06

Dec

-07

Dec

-08

Dec

-09

Dec

-10

Dec

-11

Dec

-12

Dec

-13

Dec

-14

Source: REIA

2. Proportion of income required to meet monthly loan repayment - Australia

REIA

NEWS & FEATURES 25

0%

10%

20%

30%

40%

50%

60%

70%

80%

TASWASAQLDVICNSW

State's share in Australia's total population

State's share in Australia's total housing finance commitments, investor

State's share in Australia's total housing finance commitments, owner-occupier

State's ownership rate

Source: ABS publications 3101, 5609, 5671; 2011 Census

33

.6%

39

.7%

34

.4%

66

.6%

25

.1%

23

.4%

27.

1%

70

.1%

18.3

%

18.3

%

18.1

%

63

.5%

7.9

%

4.7

%

5.1

%

68

.1%

9.8

%

10.6

%

13.6

%

67.

3%

2.5

%

0.7

%

1.1%

70

.4%

3. States' shares in Australia's population, total housing finance commitments by investors and owner-occupiers; States' home ownership rates

DECLINE LIKELY TO CONTINUE

ABS data show that over the last 30 years, around one-third of Australians lived in NSW, a quarter resided in Victoria and Queensland accounted for 18% of the national population. Eight per cent of Australians lived in South Australia and one in every ten Australians resided in WA.

An analysis of the distribution of investment housing finance commitments shows that NSW and

Queensland accounted for larger proportions of investment housing finance commitments compared to the share of the population residing in these states and also compared to the share of housing finance commitments by owner occupiers.

The Census shows that NSW and Queensland have the lowest home ownership rates, 66.6% and 63.5% respectively. The rates are below the overall rate for Australia of 67%.

With investment housing finance commitments currently increasing - making up 40% of the total housing finance commitments in Australia - the further drop in the rate of home ownership, as anticipated by the National Housing Supply Council, seems to be likely.

26 REIWA NEWS

An aerobic treatment unit (ATU) is a wastewater recycling system that many newer homes may have in place for the sewerage facility.

It is designed as an efficient two-stage biological wastewater treatment plant and incorporates disinfection.

It produces high quality effluent which has Health Department approval for reticulation use on gardens. Such wastewater is not for human consumption and should not be used to water fruit and vegetable plants.

ATUs are found in domestic and commercial properties in both metropolitan and regional areas.

SERVICE REQUIREMENTS

There are several different commercial names for various systems but common ones include Bio Max, Aquarius 0-3, Biosystems 2000, Aqua Nova 2000 and the Aqua Nova EP-10.

Having one of these systems on a property attracts a Health Department requirement to have it serviced by a licensed provider on a quarterly basis.

The cost is generally from $90 to $120 per service and roughly equates to the same expense as owners paying deep sewerage fees to the Water Corporation on an annual basis.

The relevant Act requires that a copy of each quarterly report be provided by the licensed servicing provider to the owner and to the local council or shire. There are penalties for owners who do not comply.

SALES ADVICE

The increasing number of ATUs throughout the housing sector means there is some impact on sales representatives and property managers.

For sales reps, this means asking the vendor if there is an ATU system in place and notifying any potential purchaser where that is the case.

Purchasers should also be advised of the Health Department requirement to service it quarterly and the likely costs of maintaining it. This information should be provided prior to settlement.

RENTAL ADVICE

For property managers, the existence of an ATU means making sure the quarterly inspection becomes a routine part of the property’s management on behalf of the owner.

One service provider, Ecowater Services in Malaga, has approached REIWA with concerns about the increasing number of buyers who seem unaware of their ATU and its servicing requirements - until there’s a problem.

“There can be issues with smells emitting from the property or, worse, with flooding,” a company spokesman said.

flushing out atu issues for agents

MINING DOWNTURN STARTS TO SLOW INDUSTRIAL MARKETSCBRE research shows that prime net industrial face rents dropped 4.1% in Perth’s east and southern suburbs during the March quarter 2015, and 2.5% in the northern suburbs.

Industrial property demand has moderated, with infrastructure and workforce requirements significantly lower due to the mining sector downturn.

CBRE data show 67,129sqm of new industrial property supply in the Perth metropolitan area was developed in the year to March, well down on the 10 year annual average of 112,650sqm.

QUICK FACTThe Genworth Homebuyer Confidence Index found 52% of WA survey respondents in the March quarter 2015 believed now is a good time to buy property - a 4.5% increase.

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Both the State Government and the City of Swan have released new planning frameworks aimed at the creation of 8,000 new homes and more than 270,000sqm of office and retail space in Midland.

Within the city’s 11 hectare Midland Oval precinct, the oval will become a high density housing hub and town centre carrying as many as 1,000 new homes and 115,000sqm of retail and commercial space, as well as a library and piazza.

Under a new Midland master plan released by the Metropolitan Redevelopment Authority, the train and bus stations will be relocated with planning provisions scoped for almost 7,000 new homes and 155,000sqm of office and retail space.

The planning announcements coincide with confirmation of federal funding for a new Curtin University Medical School in Midland that is expected to further boost the district’s homebuyer and tenancy appeal when it opens in 2017.

The Planning Department believes Perth’s north-east subregion will need an extra 100,000 homes and jobs by 2050 to accommodate a population increase around 450,590.

midland market to expand

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28 REIWA NEWS

FIRST HOME GRANT GUIDE NOW AVAILABLEThe WA Office of State Revenue has released a one-stop resource of accurate information on the first homeowner grant (FHOG) which is available to real estate personnel so they can accurately advise their clients.

This guide is a comprehensive information resource about all aspects of the first homeowner grant, including:

• Who is eligible for FHOG?• What are the ownership tests?• How does someone fulfill the

residence requirement?• What variations and exemptions

are available?• What is the application process?• What is the first homeowner rate

of duty and who is eligible?• Where can further information be

found?

To access the guide, go to www.finance.wa.gov.au.

HOUSING OWNERSHIP TALLYResearch by the Committee for Perth private sector think tank shows 37.2% of homes in the Perth and Peel metropolitan areas were fully owned in 1991, compared to 28.1% in 2011, while the proportion with a mortgage rose from 32.5% to 38%.

From 2001 to 2011, the number of households in the Perth and Peel regions increased 23.7% from 534,570 to 661, 450, compared to a national average of 15.7%.

In 2011, the suburb with the lowest median personal income was Mandurah at $483 per week.

QUICK FACTKeystart, which provides low deposit mortgages for the less well off, has lowered its metropolitan annual income caps for singles, couples and families by $20,000 to $75,000, $95,000 and $115,000 respectively. Income caps in regional WA have not changed but maximum house prices have been cut to $700,000 in the Pilbara and $600,000 in the Kimberley due to falling property values in those areas.

QUICK FACTLocal residents and real estate agencies will be keeping a close eye on the sale by the Defence Department of the historic Leeuwin Barracks for private housing development overlooking the Swan River in East Fremantle, with commentators expecting the 15 hectare site to fetch more than $100 million and more than 200 new homes to be built.

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industry snippets

Work will begin soon on a three kilometre widening of the southbound Kwinana Freeway between Armadale Rd and Russell Rd, with the project due for completion by the middle of 2016. The State Government has also expanded its upgrade of the Aubin Grove train station so that the project now widens the Russell Rd freeway overpass and improves the intersection of Gibbs Rd and Russell Rd.

Approval has been granted for a $380 million mixed use tower bordered by Mill Point Rd, Labouchere Rd and Mends St in South Perth, incorporating 294 apartments over 38 storeys as well as 11,900sqm of commercial office and retail space. More than $1.5 billion in high rise residential projects have been approved for development in the City of South Perth, much aimed at benefitting from the eventual construction of a train station by the State Government.

In seasonally adjusted terms, new home building approvals in WA rebounded to 2,622 dwellings in March from 2,206 in February, although this was still well down on the July 2014 peak of 3,152. Over the full March quarter, housing approvals in WA fell 5.4%, according to the ABS. New home sales also lifted 4.2% in March, according to the Housing Industry Association, although total sales for the March quarter were still down 6.4% on the previous three months.

Construction of the $207 million Karratha Health Campus is expected to begin next year and be completed by 2018. The new hospital will double the number of emergency department bays in Karratha, provide a start-of-the-art CT scanner, a new surgical centre, maternity wing and delivery suites, as well as a helipad and expanded outpatient facilities to improve health services for the local community.

Research by the Australian Institute of Family Studies has found about 25% of households are made up of one person living alone, compared to 8% in 1946. The research found 38% of young women and 24% of young men living alone are professionals. Among those living alone, 45% of women have at least a degree compared to 26% of men.

Construction is expected to begin in early 2016 on a $160 million redevelopment of the 5,335sqm old Chemical Laboratories site at the corner of Hay St and Plain St in East Perth, incorporating a major supermarket and a pedestrian high street with shops, bars, restaurants, offices and a 16 storey apartment tower.

Only the Kwinana and Claremont local government areas have met their own short-term infill targets under the Directions 2031 goal to have 47% of all new dwellings built in established areas by that year. The weighted average of all governments across the Perth and Peel metropolitan areas was 12.6% infill based on the individual five year plans of all the councils, but the State Government remains confident the 47% target can be met by 2031.

In partnership with the private sector, LandCorp will spend $26.8 million over 2015/16 to 2018/19 to revitalise Rockingham through the development of a marina and tourism precinct at Mangles Bay including accommodation for up to 500 boats, tourism facilities and retail, commercial and residential land.

landgate.wa.gov.au

Get a report and request brochures today You can purchase a Property Interest Report online from Landgate. You can also request printed Property Interest Report brochures to be sent to your office for you to give to your clients.

Give your clients the checks they needMake sure your clients have as much information as possible relating to their sale or purchase.

A Property Interest Report is an essential risk management tool used by many property professionals. It is a comprehensive report that helps disclose interest information that could impact how your clients use and enjoy their future property.

A title search does not list all property interests, so it makes sense to offer your clients detailed information not found on the title.

Things to check

Timber Pest Report

Building Assessment

Property Interest Report

Everything you need to run a successful real estate agency

1800 656 168 | mydesktop.com.au

My technology of choice

landgate.wa.gov.au

Get a report and request brochures today You can purchase a Property Interest Report online from Landgate. You can also request printed Property Interest Report brochures to be sent to your office for you to give to your clients.

Give your clients the checks they needMake sure your clients have as much information as possible relating to their sale or purchase.

A Property Interest Report is an essential risk management tool used by many property professionals. It is a comprehensive report that helps disclose interest information that could impact how your clients use and enjoy their future property.

A title search does not list all property interests, so it makes sense to offer your clients detailed information not found on the title.

Things to check

Timber Pest Report

Building Assessment

Property Interest Report

32 REIWA NEWS

REIWA has undergone a major transformation in the last year including a renewed focus on advocacy for the real estate profession.

Among a number of things, in early May 2015 we launched our inaugural annual advocacy publication.

The Shaping our Industry publication demonstrates the wide range of local and national issues that REIWA is advocating for on your behalf. The publication highlights a key message that shapes our advocacy efforts - “We listen to you” and “They listen to us”.

STAKEHOLDERS

REIWA has good relationships with a wide range of our stakeholders, from the current State Government, the Opposition and Members of Parliament to the media and other property industry bodies.

During the budget week we sent out emails to ordinary and associate members to inform you of the key impacts to our profession from the various budgets.

MEMBER PARTICIPATION

Going forward, you will be asked to participate more in the development of our advocacy and policy positions, be part of the debate and hear more from us on how we are tracking in our engagements with the State Government.

The member’s advocacy webpage has also been refreshed. So to keep up-to-date on what’s happening in advocacy, head to reiwa.com/members/advocacy or contact Advocacy and Policy Executive Manager Lisa Kazalac on lisa.kazalac@reiwa.com.au or 08 9380 8222.

renewed reiwa focus on advocacy

QUICK FACTPlanning is well underway and the Shire of Kalamunda has released a draft district structure plan for the $2 billion airport railway link that will see the creation of a new train station in Forrestfield. The mostly underground railway will link Perth’s eastern suburbs into the train network, with the Forrestfield station offering a 20 minute trip to the city, and 250 hectares around the station will be developed with high density residential and commercial projects as well as a new shopping centre. Construction of the Forrestfield-Airport Link is expected to begin in late 2016 and be completed in 2020.

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The Federal Government’s 2015-16 Budget released in May provided mostly good news for real estate practitioners.

The budget focused on three key elements: small business and jobs, childcare reform and infrastructure investment.

For real estate agents this budget was positive. The initiatives announced to assist small business owners are very welcome and will go some way to helping small businesses invest and grow at a time when the national economy really needs more diversity and a little kick.

BROAD ECONOMICS

From an economic standpoint, the budget announced that the federal deficit will go from $35.1 billion (2.1% of GDP) in 2015-16 to $6.9 billion (0.4% of GDP) in 2018-19.

Underpinning this reduction are some key economic assumptions. These include:

• Economic growth (real GDP) is expected to grow from 2.75% in 2015-16 to 3.25% in 2016-17

• Unemployment rate for the June quarter 2015 forecast at 6.5% before falling to 6.25% in 2016-17

• CPI forecasts remain steady across 2015-16 and 2016-17 at 2.5%

What’s in store for small businesses?

The Federal Budget included a $5.5 billion small business package that will benefit most real estate agents.

Apart from the 1.5% reduction in the company tax rate, the government has recognised that not all small businesses have a corporate structure so they have also included a 5% discount on income for unincorporated activity.

This will apply to unincorporated small businesses with annual turnover less than $2 million. The discount will be capped at $1,000 per individual for each income year.

IMMEDIATE DEDUCTIONS

Small businesses can now immediately deduct professional expenses associated with starting a new business such as professional, legal and accounting advice. This relief will commence in the 2015-16 income year.

Those small businesses with an aggregate annual turnover of less than $2 million can deduct assets they start to use immediately, provided the asset costs less than $20,000.

These are great initiatives that can be taken advantage of this financial year.

CGT LIABILITY

To make the growth transition easier for small businesses, the Federal Government has introduced an initiative to allow those with annual turnover less than $2 million to change legal structure without attracting a Capital Gains Tax liability at that point.

For those small business owners who employ staff who use electronic devices for work, they will be exempt from Fringe Benefits Tax (FBT) from 1 April 2016 and will be able to provide more than one device even if the devices are similar - e.g. tablet and laptop.

NEGATIVE GEARING

It was pleasing to see that the Federal Government has made no changes to negative gearing and that it will be kept in its current form to encourage property investment.

Negative gearing is such a crucial part of the private rental market. The REIA has been busy advocating for the treatment of negative gearing to remain untouched.

NATIONAL AFFORDABLE HOUSING AGREEMENT

The Federal Government announced that in 2015-16 it will provide funding of $1.9 billion to support state affordable housing services, including $1.3 billion through

National Affordable specific purpose payments and $534.1 million through National Partnership funding.

Currently the state and federal governments are negotiating a new National Partnership agreement for 2015-16 and 2016-17.

This agreement is crucial to ensure frontline services are maintained.

FOREIGN INVESTMENT

This budget confirmed the recently announced reforms to the foreign investment process for real estate.

These reforms follow the House of Representatives Foreign Investment Inquiry that reported late in 2014.

The reforms focus on improving compliance and enforcement, stricter penalties for breaches, the introduction of application fees to fund the compliance activities, and more scrutiny and greater transparency for agricultural investment.

Many recommendations from the REIA’s submission into this process were adopted.

INFRASTRUCTURE INVESTMENT

The Federal Government announced that it will provide $499.1 million in 2014-15 to the WA Government to invest into existing infrastructure projects.

This one-off payment goes some way to addressing the drop in the ratio of GST receipts for WA.

In addition, the Federal Government is going to establish a Northern Australia Infrastructure Facility of $5 billion to provide grants for major infrastructure projects such as ports and railways in northern WA, the Northern Territory and Queensland.

Overall, this Federal Budget was positive for the real estate industry with the bulk of initiatives focused on small business, promoting their expansion and encouraging new startups.

spotlight on 2015-16 feder al budget

34 REIWA NEWS

The 2015-16 State Budget handed down in May by Treasurer Mike Nahan was framed around the significant loss of state revenues, mostly as a result of the drop in royalties from iron ore and oil as prices have plummeted, as well as the distribution of GST.

This has meant the state’s fiscal position is the worst it has been in more than a decade.

The government is facing a large operating deficit of $1.3 billion in 2014-15, increasing to $2.7 billion in 2015-16.

The budget is not expected to return to surplus until 2017-18 with a forecast surplus of $874 million.

THEMES

There are four key themes to bringing the budget back into surplus by 2017-18. These are:

• Reform in the public sector• Minimising the impact on

households and business• Decreasing debt through asset

sales• Introducing an asset investment

program to create jobs

In terms of economic outlook for the state, the government is forecasting that economic growth (real GSP) will slow to 2% in 2015-16 and is predicted to lift to 3.5% in 2016-17.

The unemployment rate for 2015-16 is expected to peak at 6.75%, reducing to 6% in 2016-17 and 5.75% in 2017-18. Employment growth will remain around 1.75% in 2015-16 and 2016-17.

This budget has very mixed impacts for the broader property market and small businesses.

PAYROLL TAX

The government has returned to its election commitment to increase the threshold of payroll tax from 1 July 2016 to $850,000.

In the 2014-15 midyear review, this was earmarked to be postponed. It is pleasing to see the government honour its election commitment.

LAND TAX

The biggest disappointment of this budget is the third consecutive hike in land tax rates for WA landholders outside of the principal place of residence.

While the government has tried to implement some changes to broaden the base of land tax, from 2015-16 the land tax scale will be revised to apply a flat dollar amount of $300 to taxable land with an unimproved value above the exemption threshold of $300,000 and up to $420,000.

Land tax rates will increase across the board except for the top rate which remains unchanged at 2.67%. There have also been significant changes to the property value thresholds.

It is clear the government relies too heavily on the property industry to fix its revenue shortfalls. This move to increase land tax rates will generate $184 million in 2015-16 and a total of $826 million over the four years to 2018-19 (24%).

REIWA’s position on property tax reform is that stamp duty should be abolished and replaced with a broad-based land tax with a lower rate. We advocated for this in our 2015-16 pre-budget submission.

STAMP DUTY AND FHOG

A real win for the real estate market was the important and positive retention in its current form of the first homebuyer exemption on stamp duty up to the property value of $430,000.

This represents a saving to first homebuyers of around $14,000. Pleasingly, the government has not meddled with stamp duty rates either, which was something REIWA called for in our 2015-16 pre-budget submission.

However, REIWA was disappointed to see the government abolish the First Home Owner Grant (FHOG) of $3,000 for established homes.

what the 2015-16 state budget means for agents

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While the focus for the government is on increasing construction through retention of the $10,000 grant for new builds, removing the established grant sends the wrong message to those first homebuyers wanting to enter the established market.

In our pre-budget submission to government we highlighted that first homebuyers in the established market play a very strong role in activating trade-up activity which is where the bulk of government stamp duty receipts come from.

We asked the government to return the FHOG policy settings back to the universal $7,000 but were not successful on this occasion.

It’s important to note that the end date of the $3,000 FHOG has not yet been set as it requires the passage of legislation through the WA Parliament which is likely to happen in the latter half of this year.

Keep updated on the changes to FHOG at the Office of State Revenue website (osr.wa.gov.au).

METROPOLITAN REGION IMPROVEMENT TAX

In this budget the State Government has proceeded to introduce the Metropolitan Region Improvement Tax (MRIT) to the Peel and South West regions.

This will be a further impost on property investors in those areas.

SOCIAL HOUSING INVESTMENT

A great win for the social housing sector and the broader property market is the government’s announced investment of $560 million into social housing that will deliver 1,000 new dwellings.

This measure will halve the number of seniors and families with children on the priority wait list.

This will have investment flow-on effects for the broader construction industry and is a welcome investment.

HOUSEHOLD EXPENSES

Overall, households and many small businesses (which aren’t incorporated bodies) will see an increase of 3.81% in the cost of utilities, public transport, motor vehicle fees and the emergency services levy.

These costs are above CPI and it’s disappointing to see them increase.

It will certainly add to the cost of doing business in WA.

ASSET SALES

The government has announced a raft of proposed asset sales as one of the key measures to bring the budget back into surplus.

The biggest item on the list is the proposed sale of Fremantle Port and a number of land and office holdings.

Go to reiwa.com/members/advocacy to read our pre-budget submission.

QUICK FACTThe State Government committed another $50 million in this year’s budget to progress infill sewerage projects in City Beach, Esperance, Bunbury, Bridgetown, Toby Inlet and Halls Head, along with Septic Tank Effluent Disposal schemes in Kukerin, Bindoon, Leonora and Boyup Brook. About 2,000 extra residential lots will be able to connect to the sewerage system, with some projects expected to begin this financial year.

36 REIWA NEWS

REIWA has finalised its submission to the State Government on our proposed amendments to the Real Estate and Business Agents Act 1978 to allow early payment of off-the-plan sales commission.

REIWA lodged a submission with the Commissioner for Consumer Protection and the Department of Commerce on the proposal to allow for early payment of off-the-plan sales commission.

Thank you to all the members who assisted by providing much needed practical advice to explain how these transactions occur and the amount of work real estate agents do when involved in an off-the-plan development.

The Commissioner has written to REIWA to let us know that she agrees with the proposal, provided that the purchaser’s interests are protected throughout the transaction. The submission certainly provided some certainty for consumer protection issues.

The Commissioner is now in the process of seeking permission to draft a Bill that would include the proposed amendments contained in our submission. We will work with the Department of Commerce in the development of the Bill.

At this stage, do not change your business practices as we will keep you updated on any new developments.

DETAIL

The submission explains in detail the sort of advice and expertise that a real estate agent provides in these off-the-plan transactions.

It highlights that agents complete the work required for the development but, unlike other service providers (for example architects and engineers) who receive payments along the way or at the completion of the task, real estate agents do not. Why should this be different for real estate agents?

We’ve explained in our submission how these transactions occur and have proposed a process for allowing agents to receive an early payment of commission that is negotiated privately between agent and developer.

CLEAR AND STRONG

Our submission was clear and strong that this negotiation is a commercial transaction, raises no issues for consumer protection and should not be regulated in any way.

Of course, we did reiterate that the buyer’s deposit would not be used ever to fund the early commission payment. We were emphatic that the deposit remains in trust. This will go a long way to addressing any consumer protection concerns that government may have.

Our proposal is limited to developments greater than three lots to ensure it doesn’t impact unnecessarily on “mum and dad” developers.

It also proposes that the timing of the payment be after the contract has been in place for 30 days. This again should provide some surety that consumer protection concerns are addressed.

CHANGING ENVIRONMENT

Early payment of commission is commonplace in other states and territories in Australia.

WA needs to acknowledge that the development industry is changing, the business of real estate agents is changing and we need to ensure our profession and the legislation governing it are current and adapt to the changing environment.

reiwa pushes for early payment of off-the-plan sales commission

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Landgate was approached in 2014 by the UDIA which raised concerns that the recent decision of the WA Supreme Court of Appeal in Barker v Midstyle Nominees Pty Ltd (Barker decision) that found that a sale contract entered into in contravention of the prohibition in section 13 of the Sale of Land Act 1970 is unenforceable by the vendor even after the vendor becomes the registered owner of the land.

Section 13 of the Sale of Land Act 1970 (the Act) prohibits contracts of sale being entered into by a vendor before the land is owned by the vendor for specific lots and strata lots. The prohibition stands unless one of the exceptions in the Act applies.

IMPACT

The decision of the WA Supreme Court of Appeal could have adverse impacts on the release of new lots, affordability and development of those lots.

A consultation paper was released by Landgate in April 2015 for the property industry to respond. The consultation paper presents reform proposals that cover the contract conditional, pre-contractual statutory disclosure warning and that the deposit should be held by a stakeholder.

These issues are all relevant to REIWA members, particularly those involved in the sale of land and developments.

SUBMISSION

REIWA lodged a submission to Landgate that agrees with the main purpose of the consultation paper which is to make the necessary amendments to section 13 so that the contract for sale of land or strata lots becomes enforceable by both parties upon signing of the contract.

In addition to this, REIWA focused its submission on the two issues of pre-contractual disclosure and deposit holding, as these are areas in which REIWA has many years of experience.

PRE-CONTRACTUAL STATUTORY WARNING

REIWA’s submission outlines that providing a disclosure to the buyer is a sensible requirement as proposed in the consultation paper.

Better informed buyers ensure the real estate transaction is smoother.

HOLDING A DEPOSIT

REIWA has extensive experience in the issue of holding a deposit in trust.

We recommended that the Sale of Land Act 1970 should essentially mirror the current provision of section 70 of the Strata Titles Act 1985 so that the contract must make provision for any deposit and all other monies to be held in trust for the buyer by a real estate agent, solicitor or settlement agent.

Further, we recommended that the deposit should be held in trust until settlement.

reiwa position on proposed changes to sale of land act

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the art of auctioneering... going once, going twice

The Australasian Real Estate Institutes’ Auctioneering Championships represent the most professional and skilled auctioneers that Australia and New Zealand have to offer.

REIWA will be hosting the 2015 WA Auctioneering Championships in July to see who is the “best in the west”.

Heats are to be held at the WA Basketball Stadium in Mount Claremont on Wednesday, 1 July 2015.

BIDDING PROCESS

The devised bidding process will test competitors on a number of criteria including the auctioneers’ aptitude, attention and ability to think on their feet.

To be successful, competitors have to deal with a range of testing questions and unpredictable bids judged by some of the industry’s leading auctioneer professionals.

Along with other contestants from around Australia and New Zealand, the winner and runner-up will represent WA at the Australasian Championships which are being held in Melbourne on 1-3 September 2015.

This is the most prestigious auctioneering competition in Australia and New Zealand.

AUCTION LIKE A PRO

Even if you’re not game enough to compete you can still be a part of the excitement and action.

REIWA Training will be hosting a seven CPD point elective session “Auction like a pro” to coincide with the 2015 WA State Auctioneering Championships on 1 July 2015.

The day includes a formal training session in the morning which covers the auction process and is designed to help sharpen your auctioneering skills and increase your auction success rate.

In the afternoon you can witness the 2015 WA Auctioneering Championships live and then celebrate WA’s success at a sundowner.

WHY AUCTION?

Many wonder “why sell by auction?”

A seller benefits from going to auction because they have a pool of serious, prospective buyers in attendance which creates a sense of urgency and competition. It also provides sellers with three chances to sell - before the auction, during the auction and after the auction.

Research also indicates that homes sold by auction on average sell faster than those sold by private treaty. Buyers benefit because they can make competitive bids in an open, transparent and public forum protected by the REIWA Auction Code of Conduct.

They can choose to increase their offer while fully aware of their competition, as opposed to the more standard private treaty where they are competing against offers of an unknown value.

Don’t feel confident to sell a property in conjunction with an auctioneer or want to learn more about the process and benefits? REIWA Training runs regular training courses which can assist you.

AUCTION TRAINING

Early this year REIWA Training, in conjunction with the REIWA Auction Agents’ Network Committee, held a free three-part workshop series designed to help up-and-coming real estate auctioneers kickstart their career.

There was an overwhelming response to the workshops, which received tremendous feedback.

Did you miss out on this training but want to learn more? REIWA Training runs introductory and intermediate auctioneering courses which form part of their seven CPD point elective courses.

The next introductory course is scheduled for Wednesday, 5 August, and the intermediate on Friday, 21 August.

Both sessions will be held at the REIWA Training Centre located in Subiaco. For more information and to enrol, visit our website at reiwatraining.com.au.

40 REIWA NEWS

what’s coming up at reiwa tr aining?

So far we have featured guest speakers such as Darren Wedge, Rik Rushton, Phill Cronin, Peter Fletcher, Justin Watts and Aaron Sice, to name a few.

We have also held annual seminars for business brokers and commercial agents.

Both successful events featured a number of high profile guest speakers across a range of disciplines and were well received in the industry.

It made for an exciting way for business brokers and commercial agents to keep up-to-date with current industry information.

MARKETING AND SALES MASTERY - CHERIE STOKIC

Multiple business owner and business coach Cherie Stokic has worked with numerous business owners from around the world, teaching them how to grow their business.

She is passionate about teaching business owners how they can use different strategies to achieve massive results in their business!

Cherie will be delivering the seven CPD point course Marketing and Sales Mastery

REIWA Training has had a busy start to the year delivering mandatory and professional development training.

to real estate professionals who want to learn the do’s and don’ts of real estate marketing so they can effectively market their own business and clients’ properties.

Her next session is scheduled for Thursday, 30 July 2015, in Subiaco.

ETHICAL AND VALUE ADDED SELLING - RIK RUSHTON

Rik Rushton is a highly regarded 25 year industry veteran and “active agent” who travels internationally as an in-demand speaker.

Rik provides a practitioner’s perspective to the current industry challenges.

Don’t miss out on his seven CPD point session Ethical and Value Added Selling.

No matter what industry experience you have, without adding value to the transaction in 2015 you will always be seen as a “commodity” by the prospect and therefore will have to compete by lowering your fees and marketing whilst often agreeing to an inflated price demand of the vendor.

This session on Thursday, 17 September 2015, will show you how to value add to the properties you sell!

KEEPING YOUR HOUSE IN ORDER - DARREN HUNTER

Darren Hunter is a national and international property management trainer, speaker and consultant.

He specialises in the creation of marketing tools, points of difference, rent roll growth, listing presentation techniques, profitability, recruitment and systemisation, as well as the entire property management process.

Darren is back at REIWA Training presenting his seven CPD point session Keeping Your House in Order.

This highly interactive session will help you accurately identify and resolve key property issues such as the difference between salt damp and water damp, termite damage and wood rot. You will also learn how to avoid bad tenants by knowing the tricks they use to secure tenancy.

This is a great “nuts and bolts” session for property managers. His next session is scheduled for Wednesday, 19 August, in Subiaco.

RIK RUSHTON DARREN HUNTERCHERIE STOKIC

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The Office of State Revenue is offering a free, two hour training session that is worth two CPD elective points for real estate agents who want to learn about transfer duty and the First Home Owners Grant.

Topics covered include:

• what dutiable transactions and property are

• when transactions will be aggregated

• how to avoid being charged double duty

• eligibility and residence requirements for FHOG and the first home owner rate of duty

There will be opportunities to contribute to in-class activities and time for questions at the end.

To view times and register for a session, go to osr.wa.gov.au/customereducation

agent tr aining in tr ansfer duty and the fhog

Communitynews.com.au

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REAL ESTATEis just a touch away

Your local

Two levels big on luxury

01/06/2015 WHEN the owners of this fantastic, split-level, Winthrop house de-signed their home, they designed it with everyday family living in mind. Continue Reading

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Living life easyEverything you could want for the enjoyment of a young family. Continue Reading

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Style, sophistication and space

01/06/2015 STYLE, sophistication and space make this palatial home in the St Andrews Estate a standout. Continue Reading

ALL PERTH Eastern Reporter

ALL PERTH ALL TITLES

Communitynews.com.au

Top Story

Living life easyEverything you could want for the enjoyment of a young family. Continue Reading

Two levels big on luxury

WHEN the owners of this fantastic, split-level, Winthrop house designed their home, they designed it with everyday family living in mind.

ALL PERTH ALL TITLES

Trust REIWA’s lawyers for all your legal needs.

We can also help you with:• Business Law• Commercial Litigation• Property & Leasing• Franchising, Intellectual Property, Competition & Consumer Law• Building, Construction & Engineering• Employment Law• Probate and Succession Law

For immediate help call 9325 9353 or visit mdslegal.com.au

MDLE004_Reiwa News_A4.indd 1 12/02/15 10:04 AM

Communitynews.com.au

Find local real estate news, reviews and listings online at our NEW and improved website.

REAL ESTATEis just a touch away

Your local

Two levels big on luxury

01/06/2015 WHEN the owners of this fantastic, split-level, Winthrop house de-signed their home, they designed it with everyday family living in mind. Continue Reading

Communitynews.com.au

Living life easyEverything you could want for the enjoyment of a young family. Continue Reading

Top Story

Style, sophistication and space

01/06/2015 STYLE, sophistication and space make this palatial home in the St Andrews Estate a standout. Continue Reading

ALL PERTH Eastern Reporter

ALL PERTH ALL TITLES

Communitynews.com.au

Top Story

Living life easyEverything you could want for the enjoyment of a young family. Continue Reading

Two levels big on luxury

WHEN the owners of this fantastic, split-level, Winthrop house designed their home, they designed it with everyday family living in mind.

ALL PERTH ALL TITLES

44 REIWA NEWS

electronic conveyancing is now live

The new platform to enable electronic settlement of property transfers has now gone live.

The Law Society of WA and REIWA have approved the new annexure to the Joint Form of General Conditions for the Sale of Land, Electronic Conveyancing Annexure (Special Condition 1).

This represents a major shift from the current paper-based system where settlement occurs with bank cheques, face-to-face transfer of relevant documents and then physically lodging transfer documents with Landgate.

PEXAThis new national electronic system is known as PEXA (Property Exchange Australia) and operates in some other states.

PEXA is a company limited by shares with the key shareholders being the Victorian, NSW, Queensland and WA governments (Landgate has invested some $22.4 million, being a 15.9% shareholding), as well as Australia’s largest financial institutions. PEXA is a commercial company focused on commercial outcomes.

As the ASX did for the exchange of shares, PEXA removes the manual processes and paperwork associated with the exchange of property by allowing land registries, financial institutions and practitioners to transact together online.

Settlement will be completed online through a secure process that has been endorsed by the Reserve Bank and regulators.

CONVEYANCERSEssentially, a conveyancer registered with PEXA will ensure that all monies are available before settlement and sign-off with the settlement statement.

PEXA will automatically settle the funds at an agreed time including the disbursement of duties and third party disbursements.

It will not be compulsory for a conveyancer to be registered with PEXA but over time it is anticipated that most conveyancers will become registered because of the benefits.

We understand that some 125 conveyancing entities have registered with PEXA or are in the process of doing so.

Conveyancers will still be able to conduct settlements using the existing system.

BUYERS AND SELLERSBuyers and sellers, through the Joint Form of General Conditions, currently agree upon a settlement process and the electronic system has a new process that the buyer and seller will agree upon.

The agreement for the buyer and seller to confirm electronic settlement is in the form of an annexure to the Offer and Acceptance (Electronic Conveyancing Annexure). This annexure is based upon

the wording of a national model and modified by REIWA and the Law Society to suit WA.

Once the electronic conveyancing system has been operating for nine months and the procedure is 100% clear (approximately March 2016), then the annexure will be incorporated into the Joint Form of General Conditions.

The Law Society and REIWA agreed that it would be inconvenient to change the Joint Form twice.

OPPORTUNITYIn this interim period, buyers and sellers should be given the opportunity to agree upon the electronic system through the new annexure.

If the buyer and seller do not agree as part of the contract, then their conveyancers will seek agreement.

Until the conditions of the Electronic Conveyancing Annexure are incorporated into the Joint Form, the annexure will be available electronically on REI Forms Live.

Agents should note that that PEXA must be used in conjunction with the Office of State Revenue’s Revenue Online facility in order to access its full functionality.

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be cautious with home open security

Several suburbs in Perth have recently being targeted by a thief during home open inspections.

It is understood that 12 instances of theft have been reported after mostly electronic devices have disappeared.

This is an opportune time for real estate agents to review their agency’s strategy for taking reasonable action to prevent theft at public viewings.

INSURANCEIn many cases the owner’s insurance policy does not cover visitors whom the owner has invited into the property. It is therefore important that the owner is made aware to clarify their insurance cover and to at least remove valuable items from sight.

Many agents have procedures for having one agency representative record visitors’ personal information prior to a person entering a property.

The agency may then then have other representatives stationed around the property so that prospective buyers can be monitored.

BE AWAREIt should not be assumed that every person who attends a home open is a prospective buyer and that, as the owner is inviting people into their property, the owner and therefore their representative has the right to deny entry.

Agents should be aware of people who are carrying a bag and should not hesitate to ask to inspect bags prior to a person leaving the property.

If a person is deemed suspicious then the agent can attempt to record the person’s car licence plate information.

46 REIWA NEWS

Unions representing real estate employees have applied to the Fair Work Commission to remove the significant flexible arrangements that are a fundamental part of the Real Estate Industry Award.

The union claims seek to, among others:

• increase minimum rates of pay by between 7%-8%

• remove the debit/credit system by prohibiting the offset of expenses and payments to employees from commissions

• increase the Minimum Income Threshold from 110% of the minimum weekly wage to 175% of the maximum weekly range, making it more difficult for salespersons to qualify for commission-only employment

The award is being reviewed by the Fair Work Commission during 2015/16 and the unions are using this as an opportunity to significantly tip the balance of power unfairly in their favour.

CATASTROPHICIf successful, the union’s claims will be catastrophic for employers, employees and consumers in the real estate industry, not only here in WA but Australia-wide.

Employment costs will rise dramatically, with agents having no option other than to pass these costs on to vendors plus raise the barrier significantly for new salespersons seeking to gain entry into the industry.

Employees’ jobs will be put at risk by the introduction of these prohibitive costs and there is great potential for commission rates to be decreased, significantly diminishing the earning capacity of salespersons.

ONEROUS CLAIMSThe Real Estate Employers’ Federation of WA (REEFWA) vigorously opposes the union’s onerous claims and is working closely with the real estate employer federations in other states to fight them.

If you wish to assist us in presentation of our case and help stop the removal of the required flexibility the current award provides, please contact the REEFWA Committee.

stephen FARRell

ReeFWA emploYee RelAtions ADVisoR

unions threaten real estate industry again

By REEFWA employee relations advisor Stephen Farrell

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LEGAL, LEGISL ATIVE & FINANCIAL 47

break lease frequency continues

Unfortunately, the frequency of tenants wanting to terminate their fixed term lease agreements prior to the agreed termination date is not decreasing.

With softening rents and an increased supply of all types of property including new apartments becoming available for lease, some tenants consider that they will be financially better off if they move to a premise with a lower rent.

In such circumstances and if the owner does not agree to an early termination without damages, the owner is permitted to claim from the tenant the financial costs that the owner incurs as a direct result of the tenant’s breach - the early termination of the lease.

NEW TENANTIn the current market it is likely that rent for the owner’s property has decreased and therefore the owner may not be able to attract a new tenant at the same rent that the defaulting tenant has paid.

In such circumstances the owner would be claiming the existing rent for the period that the property is not leased and the difference between the current rent and the new decreased rent.

MANAGEMENT ADVICEWhile owners can pass on their losses, they must also take reasonable action to limit the extent of their losses that they intend to claim from the tenant.

Some tenants will carefully watch the owner’s actions to determine if the owner is mitigating losses.

Owners should seek advice from their managing agent as to the likely market rent for their property and how the property should be advertised to quickly locate a new tenant.

It is a fine balancing act between obtaining the maximum rent and mitigating losses in the shortest possible time.

ENSURE INVESTORS HAVE SECURED THEIR PROPERTIESSince 1 July, all residential landlords must comply with new minimum security standards at their investment properties.

Following a two year phase-in, it is mandatory for all residential investment properties to have adequate locks, latches and porch lights.

Main entrances must have a deadlock or key locking security screen door that complies with AS 5039-2008, while other external doors must have either a deadlock, a bolt lock or a compliant key locking security door.

Windows must be fitted with a lock that prevents external entry and external lighting should include an electric light at or near the main entry that can be operated from inside the dwelling.

QUICK FACTA special paper released in April by the Federal Treasury found that among five different taxes examined, stamp duty on land sales has the worst economic impact, with every dollar raised effectively making the economy 75 cents worse off.

48 REIWA NEWS

The Federal Government is investigating claims that foreigners have illegally purchased homes in various cities including Perth.

Concerns have been expressed that people on temporary residence visas have kept established properties as investments even though they are supposed to sell them within 90 days of leaving Australia, and that the parents of some foreign students have illegally bought homes on behalf of their children.

The Foreign Investment Review Board (FIRB) is looking into various allegations drawn to its attention since the government announced in March that the foreign buyer of a $39 million harbour-side home in Sydney would have to sell the property within 90 days because he had purchased it without government approval.

CRACKDOWN WELCOMEDThe REIA and REIWA have welcomed a proposed crackdown on foreign buyers of Australian residential property wherein a $5,000 fee will apply for homes less than $1 million and $10,000 for properties above $1 million, with a $10,000 increment for every additional million dollars achieved in sale.

However, REIWA supports foreign investment because it provides jobs, infrastructure and housing, and doesn’t believe there is evidence that overseas buyers have inflated WA property prices.

REIWA believes it is crucial that Canberra provides better funding of the FIRB so it can adequately scrutinize foreign purchases to ensure both overseas and domestic buyers are following the rules in a fair market.

FOREIGN INVESTMENT RULES TIGHTEN FOR FARMSREIWA has welcomed Canberra’s tightening of foreign investment rules for agricultural land which has lowered the threshold from $252 million to $15 million for screening by the Foreign Investment Review Board.

A foreign ownership register of agricultural land is also being established.

REIWA Rural Network chair Don Fry says the threshold reduction is welcomed even though there are few transactions at $15 million in WA.

Mr Fry says his members are more concerned that the FIRB is adequately resourced to ensure the greater scrutiny doesn’t unduly slow the transaction process.

REIWA does not believe the increased screening will threaten overseas interest in WA rural property purchases but will improve transparency and clarify information about foreign investment levels in WA.

firb inquiry into foreign purchases

QUICK FACT• The thresholds for metropolitan property developer applications to development assessment panels were expanded in May, allowing projects valued between $2 million and $10 million to undergo DAP rather than local government assessment - an expansion from $3 million to $7 million. The mandatory threshold was lifted to $10 million.

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LEGAL, LEGISL ATIVE & FINANCIAL 49

It’s that time of the year when business owners start to think about their tax affairs and planning the year ahead, particularly now the Federal and State budgets have been handed down.

While it was never going to be a “full steam ahead” Federal Budget, we know from our annual BDO Tax Reform Survey that the business community believes real tax reform is well overdue.

Unfortunately, this budget has done little more than to yet again tinker at the edges. But having said that, small businesses have been offered great tax incentives aimed at stimulating the economy.

DETAILLet’s look at some of the key measures and drill down to the detail.

First up, the drop in company tax rate from 30% to 28.5% from 1 July 2015 for all “small” businesses will provide much-needed cash flow savings. They define a small business to be one with an annual turnover of less than $2 million when aggregated with the turnovers of associated entities.

You will need to look closely at any “associated entities” that you and/or your spouse have an involvement with to make sure you stay under the threshold.

In some cases it may be possible to make changes to your structure to assist you. This will require a review of your legal documents - i.e company constitution, trust deeds, etc, as well as examining the level of “control” you have in other businesses.

For example, if you have 40% control of another company or your trust makes a distribution of 40% of its profits to another entity, their turnovers will be grouped for the $2 million turnover threshold.

DEPRECIATIONThe next incentive for “small businesses” is the immediate deduction for assets that cost less than $20,000.

This accelerated depreciation will apply to the majority of capital asset types including cars, machinery and equipment. A small number of assets will not be eligible for the immediate write-off, including horticultural plants and in-house software.

In most cases, specific depreciation rules apply to these assets. This represents a significant increase from the existing write-off threshold of $1,000 that currently applies for assets acquired from 1 January 2014.

The $20,000 threshold will apply to assets acquired and installed ready for use between 12 May 2015 and 30 June 2017. From 1 July 2017, the thresholds revert back to the existing arrangements.

Tax incentives can often drive decisions but do not let a tax deduction be the primary influence in deciding to purchase a new asset - i.e for every $1 you spend on a new asset the taxman will only give you a 30% tax break (30 cents), meaning that the asset will still cost you 70 cents after tax.

So a $20,000 investment will still cost you $13,000 after tax. Can you afford this and do you really need to buy the asset?

BUSINESS RESTRUCTURESIt has also been announced that small business restructures - i.e moving say from a partnership to a company - will attract CGT rollover relief, but it is unclear how wide-ranging these rollovers will be.

While the Federal Government has addressed the CGT issues that arise from small business restructures, most state and territory governments apply stamp

duty to these same restructures and there are no obvious reforms on the horizon in this regard.

The government has also announced it will allow businesses to immediately deduct a range of professional expenses associated with starting a new business which may include, for example, legal expenses incurred in establishing a new company, trust or partnership.

These amendments take effect from 1 July 2015. At the moment these costs are deducted over a five year period as “blackhole expenditure”.

VEHICLE DEDUCTIONSFinally, claiming deductions for using your vehicle has had a radical overhaul.

From 1 July 2015, taxpayers will only have two methods available to calculate and claim their work-related car expenses - the cents per kilometre (up to 5,000 kilometres) and logbook methods.

I am guessing to say most people in the real estate game keep logbooks to justify a high business use, but the question I ask is when was the last time you kept a logbook and would it stand up to ATO scrutiny? That’s a topic for another day.

Don’t hold your breath but the upcoming White Paper will undoubtedly be the government’s last opportunity to deliver real tax reform to the Australian public and serious consideration must be given to previous remedies identified as far back as the Henry Report in 2008.

ta x time and budget incentives

mARk pollockBy BDO Chartered Accountants tax partner Mark Pollock

50 REIWA NEWS

agent liable for acting on seller’s instructions

In the Queensland case of Hadgelias Holdings and Waight v Seirlis, a seller of a residential apartment appointed a real estate agency to sell the dwelling.

The seller instructed the agency to advertise the apartment as having three car bays. There were only two car bays with a third storage area.

The storage area contained a platform which could technically be removed to create a third car bay, but this was a breach of the development approval. The real estate agency was not aware of that impediment.

The agency advertised the apartment on three occasions as having three car bays. The representative also advised the buyer that the platform could be removed to create the additional car bay and that he would personally remove it for her.

He also advised that many apartment owners had removed the platform in the storage area.

INDUCEMENTThe advertisements stating three car bays, and the representative’s statement and promise to remove it himself, induced the buyer to enter into the contract.

Prior to settlement, the buyer became aware that the storage area could not lawfully be converted to a parking space. The sellers threatened specific performance proceedings and so the buyer settled.

The buyer then sued the seller and the real estate agency for damages.

The real estate agency argued that the seller should be fully liable and not the agency, because they directed it be advertised as three car bays and knew the third bay was not legal but the agents did not know that.

COURT RULINGThe court held that the act that caused the buyer to enter into the contract was the real estate agent’s advertisement and representations.

This amounted to misleading and deceptive conduct.

The seller and the real estate agent were separately liable for the buyer’s loss.

The action was taken under the Trade Practices Act which is now the Australian Consumer Law, and the agents were also liable under the Queensland Fair Trading Act.

Despite the fact that the sellers knew the representations made by the agency were false, the agency was liable for damages for the loss suffered by the buyer as a result of the advertisements and representations.

BE CAREFULAn agent has to be careful in merely accepting on face value what a seller says about a property.

To endeavour to avoid liability in this situation, the agency could have

included a clause in their Agency Agreement to the effect that the sellers would indemnify them for any inaccuracies in the seller’s instructions.

Although it is debatable whether a clause in the contract stating that the buyer made her own enquiries and did not rely on the seller or the seller agent’s representations or warranties would be effective, this may protect the seller or the agent against innocent omissions or errors.

For further information on any of these topics, contact Ross McCallum, Paul Donovan, Fiona Stanton, Ashley Macknay or Anthony Prime of MDS Legal, REIWA’s appointed solicitors, on (08) 9325 9353.

Disclaimer: The above article is provided as an information service for REIWA members. Formal legal advice should be obtained before applying any of this information to particular circumstances. The information should not be used or relied upon as a source of detailed advice or as the basis for formulating decisions.

By Ross McCallum of MDS Legal, REIWA’s retained lawyers Ross mccAllUm

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LEGAL, LEGISL ATIVE & FINANCIAL 51

WHAT DOES “LOOKED AFTER” MEAN?In a Victorian decision, a tenant reluctantly signed a five year lease for two restaurants which required them to refurbish the restaurants substantially.

The tenants had wanted 10 years but the landlord, the Crown, said that they would be “looked after at renewal time”.

At the end of the five years the Crown required the tenants to vacate the premises. The court held that the words “looked after” did not mean that they were promised an offer to renew the lease.

The court did hold, however, that there was estoppel because the tenants had acted in reliance on the statement and were going to suffer damages as a result of the lease not being renewed.

The court ordered equitable relief to the tenant which would have been in the form of damages.

HERITAGE LISTING ON RESIDENTIAL PROPERTYIn a Supreme Court of Tasmania case, a purchaser entered into a sale contract to buy a residential property.

The property was listed on the Heritage Register. Any changes to the fabric of the building required a permit under the Act.

The contract was subject to a condition that “at settlement there were no legal restrictions on the use of the property that would prevent the buyer from using the property for residential purposes”.

The court decided in favour of the buyer, finding that the registration on the Heritage Register constituted a legal

restriction on the use existing at the contract date.

The requirements under the Heritage Act increased the cost of repairs and maintenance and therefore hindered the use of the property.

Carrying out routine maintenance and repair work would not be as cost-efficient as if the requirement was not there.

There was a lack of freedom to use cheaper products and there was greater regulation on what was done. This affected their use of the property.

STRATA COMPANY POWER TO RESTRICT AN OWNER’S ACCESSIn a New Zealand case, a buyer purchased a unit in a building that was run as a student hostel.

A building manager managed the rental of the units. That building manager went into liquidation.

A new manager was appointed as the building manager. The buyer (who is now the owner) did not want to lease his unit through the new building manager and wished to lease it himself.

The new manager did lease the majority of units in the complex. The new manager refused to issue the owner with an access card to the building and required the payment of a bond. This applied only to the owners of units the manager did not manage.

Without the access card the owner could not access his unit or the common areas.

The court held that neither the manager or the body corporate had the power to require owners of owner-managed units

to sign the access agreement or pay the bond as a condition of access to the building.

Both were liable in trespass and damages were awarded. The court held that the body corporate rules could not be used to restrict owner or occupier access. The owner could not be required to pay a bond.

The court held that the right to use common property as a thoroughfare for access to individual units was a right so basic and fundamental to the Act that it went without saying.

LESSEE BOUND FOR NOT RESPONDING WITHIN TIME LIMIT FOR RENT REVIEWIn a Queensland Supreme Court decision, a commercial lease set out that the tenant must respond to the landlord’s proposed market rent review within 30 days of the lessor’s assessment.

The lessee did not respond within the time period and was a month late in responding. The proposed rent rise was a 22% increase.

The court held that the notice was valid from the lessor and did not need to refer to the time limit. It was clearly an essential term and the landlord was not acting unreasonably in giving the notice.

The court therefore held that the lessor’s notice of the proposed new rent was valid and the court declared that the new rent was the rent stated in the lessor’s notice.

The lessee was therefore bound to the rent amount the landlord had sought because they had not responded within the stated time limit.

in brief

52 REIWA NEWS

INDEFEASABILITY FOR MORTGAGEIn a NSW case, a husband forged his wife’s signature to a mortgage.

The mortgage was an all-moneys mortgage that referred to a loan agreement.

The court held that on the indefeasibility principles the mortgage was valid because the bank had not been involved in the fraud in obtaining its mortgage.

It held, however, that the loan agreement was void and that the mortgage, although valid, referred to a loan agreement that was not valid.

The court held that the wife had not been fraudulent.

EMAIL NEGOTIATIONS SUFFICIENT TO CREATE BINDING AGREEMENT TO LEASEIn a WA Supreme Court decision, a lessor’s agent sent a tenant’s representative an email which contained a proposal for a new lease.

The tenant made a counter-offer and the lessor’s agent agreed to all of the terms. All the essential terms for an agreement were contained in the revised proposal.

There was a material error which referred to licence fees being per annum rather than per month. The lessee advised that they were happy with the terms and requested the lessor to proceed “with wrapping this up”.

The lessor instructed its solicitor that draft lease and licence documents were sent for signing. The tenant never signed the documents. The tenant subsequently argued that there was no concluded agreement.

The court held that the central question was whether the parties intended that upon the tenant accepting the revised proposal the parties were bound immediately, while expecting formal lease documents to be executed.

The court found that on an objective assessment the parties had intended to be bound with a concluded and binding agreement to lease immediately but would be superseded by formal lease and licence agreements at a later time, and that the formal agreements would be in the lessor’s standard form incorporating the terms and conditions that have been agreed.

For further information on any of these topics, contact Ross McCallum, Paul Donovan, Fiona Stanton, Ashley Macknay, Anthony Prime or Tamra Seaton of MDS Legal, REIWA’s appointed solicitors, on (08) 9325 9353.

Disclaimer: The above article is provided as an information service for REIWA members. Formal legal advice should be obtained before applying any of this information to particular circumstances. The information should not be used or relied upon as a source of detailed advice or as the basis for formulating decisions.

QUICK FACT• From 1 July 2015, the building services levy in WA will increase from 0.09% to 0.137% of the cost of work done and although the government claims this will translate to less than $100 extra to average prices while improving application and electronic lodgment processes, the building industry has labelled it a cash grab that will worsen housing affordability.

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When it comes to print & marketing, you deserve the best and so do your vendors

neighbours names & numbers

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First Home Buyers

56 Chapel Street, Ashdan Valley YS 0000

Phone: 1234 5678 Fax: 1234 8765

Email: sales@realtyco.com.au

View:Wednesday & Saturday 1.00-1.45pm

Auction:Monday, 25th October 2010, 3.30pm at Ashdan Valley

Civic Centre, 88 Chapel Street, Ashdan Valley

Details:Jane Smith0141 124 124Email:jsmith@realtyco.com.au

Neat 4 x 2 in a prime sub development.

First Home Buyers/Investors take note.

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Ashdan Valley

Photos courtesy of Webb & Brown Neaves Home Builders

Do you know

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Call John Smith

0123 456 789

Email: jsmith@realtyco.com.au

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Your Realty Co.56 Chapel Road, Ashdan Valley NSW 2034Phone: 02 3456 7890 Fax: 02 3456 9876

email: sales@ashdanvalley.com.au

YourRealtyCo.ASHDAN VALLEY

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Experience.Honesty. Energy.

Teamwork.We’ve got the lot and the sales records to prove it.

Having the right team market your property can save you time, money and headaches.

If you’re thinking of selling call us today!

Janet Lee0412 345 677

Jim Brown0412 345 679

56 Chapel Street, Ashdan Valley YS 0000 Phone: 1234 5678 Fax: 1234 8765Email: jbrown@yourrealtyco.com.au Web: www.yourrealtyco.com.au

©2007 00000000 PP Printforce.com.au 08 9223 2445If your property is listed or managed by another agent please disregard this communication.

Selling or Buying?Ring me now!Jane Andretti

0408 932 239

56 Chapel Road,

Ashdan Valley NSW 2034

Phone: 02 3456 7890

Fax: 02 3456 9876

j.andretti@ashdanvalley.com.au

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D E C E M B E RS M T W T F S1 2 3 4 5 6 78 9 10 11 12 13 1415 16 17 18 19 20 2122 23 24 25 26 27 2829 30 31

A P R I LS M T W T F S1 2 3 4 5 67 8 9 10 11 12 1314 15 16 17 18 19 2021 22 23 24 25 26 2728 29 30

F E B R U A RYS M T W T F S

1 23 4 5 6 7 8 910 11 12 13 14 15 1617 18 19 20 21 22 2324 25 26 27 28

M A R C HS M T W T F S311 23 4 5 6 7 8 910 11 12 13 14 15 1617 18 19 20 21 22 2324 25 26 27 28 29 30

O C T O B E RS M T W T F S1 2 3 4 56 7 8 9 10 11 1213 14 15 16 17 18 1920 21 22 23 24 25 2627 28 29 30 31

56 Chapel Road, Ashdan Valley NSW 2034Phone: 02 3456 7890 Fax: 02 3456 9876email: sales@ashdanvalley.com.au

YourRealtyCo.ASHDAN VALLEY

2015

Things to do...

YourRealtyCo.ASHDAN VALLEY

The Winning Team from Ashdan Valley. 3456 7890

Call us any time!

56 Chapel Street, Ashdan Valley YS 0000Phone: 1234 5678Fax: 1234 8765Email: sales@realtyco.com.au

Smith Realty Pty Ltd trading as Your Realty Co - ABN 00 000 000 000

Jane SmithREPRESENTATIVE 0141 124 124

www.realtyco.com.au

www.realtyco.com.au

With Compl iments

56 Chapel Street,

Ashdan Valley YS 0000

Phone: 1234 5678

Fax: 1234 8765

Email: sales@realtyco.com.au

Jane SmithREPRESENTATIVE

0141 124 124

56 Chapel Road, Ashdan Valley NSW 2034Phone: 02 3456 7890 Fax: 02 3456 9876Web: www.yourrealtyco.com.au

Jane Smith 0412 345 678jsmith@yourrealtyco.com.au

A balanced investment

portfolio should always

include property. Choosing

the right investment property

gives you the potential for

income and future capital

gain to increase your

person wealth.

Intelligent Investing...

18 / Your Guide to Renting, Buying, Selling, and Investing in Real Estate

The right property for you

The two key questions to ask yourself when considering a new home are ‘where’ and ‘what’. Where do you want to live and what type of property do you want to live in? The old real estate adage – ‘location, location, location’ – is as important a concept today as it has ever been. It is not only more enjoyable to live in a good area, but it will enhance your property’s value and appeal when the time comes to sell.

So what makes a good location?

• Cities, coastal or inner city areas generally out perform other areas such as outlying suburbs or regional areas

• The combination of good urban planning and natural beauty also result in desirable locations

• Consider growth areas with good access to local facilities and avoid environmental problems such as areas with busy roads or noisy factories nearby

• Once you have decided on your location the next question is what to buy. Make a list of what is important to you – number of bedrooms, car access, size of land – but be prepared to compromise on some things

• Consider if you are prepared to renovate; if so, the worst house in the best street could be a good buy

• Look for at least one special feature; maybe it is a view, a large backyard, a designer interior or original historical features

• The Internet is a great place to start your research. Real estate sites such as ljhooker.com offer on-line inspections with photos of properties and virtual tours

• Make searching easier by leaving details of what you are looking for on myljhooker.com and receive an instant email as soon as suitable properties become available

• If you are looking for something different, visit the Lifestyle & Luxury section of the ljhooker.com which features properties that embrace idyllic or unique locations, magnificent landscapes, majestic interiors or special surrounds

• Maps and information about facilities and services in specific suburbs and regions is available on ljhooker.com – a great help if you are moving to an area you don’t know well

Better Buying

Your Guide to Renting, Buying, Selling, and Investing in Real Estate / 0916 / Your Guide to Renting, Buying, Selling, and Investing in Real Estate

Method of saleGenerally speaking there are two most common methods of sale used for residential property; private treaty whereby a property is marketed with a price and sale by auction – marketing without a price (legislation in some states requires the agent to provide a price estimate or range when taking a property to auction).

• Private treaty sales can inhibit competitive forces by only attracting buyers from one specific price range • With Private Treaty, when a price is quoted it is more often the case that the price is negotiated downwards

• Auctions can often produce a better result in less time because the auction process is designed to source more buyers and identify the most genuine buyers

• At auction sellers can be confident the true market value of their home is established

• The auction method is designed to produce faster results because people who are genuinely interested in the home know they must make their move quickly to buy it, whether at auction or prior • Auctions negate the frustration of indecision or protracted bargaining

• Auction can achieve the best price for a home as buyers bid up from the opening bid

• The winning bidder must be able to sign the contract and pay the deposit immediately • Of all the selling methods auction has the shortest settlement time

Promotion is vitalWhen you first list your property for sale, your agent will discuss a marketing plan with you. The campaign will target different sections of the market – from the potential buyer in the same street to people on the other side of the world.

• The agent will do their background work including taking quality photos, taking other salespeople to inspect the property, and contacting their database of possible buyers

• Marketing tools can include a sign in front of the property, a sign in the real estate agency’s window, newspaper and magazine advertising, and of course promotion through Australia’s No.1 agent website – ljhooker.com• When selling by auction, the auction date is usually set three to four weeks ahead and the property will be marketed heavily for those few weeks

• On auction day, all potential buyers gather in one place. If they can’t be there in person they’re in phone contact with someone representing them• Check with your agent to ensure all possible potential buyers will be present at the auction so you be can confident of the opportunity to achieve the best possible price for your property

It’s sold! – Now what?• When you sell at auction there is normally no cooling off period – the contracts are signed and the deposit paid on the day

• A 10% deposit is normally paid by the Buyer/s with the balance due on the agreed settlement date

• The deposit is held on your behalf in the agency’s Trust Account• Prior to settlement the property remains your responsibility, so it is important to ensure you maintain your home insurance during this period

• Once the contract is signed the process of transfer can begin. You may use the services of a solicitor or conveyancing company such as LJ Hooker Conveyancing in NSW or a settlement agent such as LJ Hooker Settlements in WA to handle the transfer on your behalf – you can contact either through ljhooker.com

• As part of the transfer process, arrangements will be made for the balance of the purchase price to be paid as directed by you to your bank account or to any party or account you nominate• Settlement day is the date when the balance of monies owing less costs are paid, keys are handed over and the property then becomes the responsibility of the purchaser

Rewards for selling through LJ HookerWhen you list and sell your property* exclusively through any LJ Hooker office, you can earn either: 20,000 Qantas Frequent Flyer points or

20,000 Visa Reward Points or

*Conditions Apply so talk to your LJ Hooker Agent

Successful Selling

Buying at auctionAttending an auction can be daunting experience for first time bidders. A good tip is to attend some local auctions prior to the one you will be bidding at to get a feel for the process.

• An auction may be held in an Auction Room or on site at the property • In some states when you attend the auction you will need to register with the auctioneer, giving your name, address and telephone number. You will be required to show proof of identity such as a driver’s licence, passport or credit card, but be assured your information is protected by privacy laws • Once you have registered you will be issued with an identification number that you must display when bidding • Only registered bidders or their representatives will have the opportunity to buy at auction in these States. Legislation in all States in relation to bidding at auction is under review, so if you have any queries you should discuss

the process with your agent • The auctioneer will present each property for sale then invite bids from the audience • LJ Hooker has adopted a total “People Friendly” Auction process which means all buyers bidding at auctions conducted by an Accredited LJ Hooker Auctioneer

can bid, knowing the Auctioneer will only have a maximum of one bid on behalf of the vendor and if used, will be declared as a bid on behalf of the vendor at the time it is made

• Bids may come from people representing buyers who are not present. This is allowed providing the auctioneer has been advised

• Buyers can speed up the tempo of an auction by making big jumps in their bidding – say from $250,000 to $280,000 in one bid – or slow down the auction by bidding in small increments • Steady, firm and unemotional bidding is often the best tactic – set your limit and stick to it• Once bidding reaches the reserve price and the property is to be sold, the highest bidder will be the buyer • If you are the highest bidder, you must be ready to pay the 10% deposit and you are then legally bound to buy the property

• If you default you risk losing the 10% deposit • If the reserve price is not reached there is still an advantage in being the highest bidder, as you will then have first right of negotiation with the vendor

Better Buying

Moving inOnce the sale has settled (is complete) it is time to move in and the key with any move is the removalist.

• When selecting a removalist get at least three quotes and remember the cheapest is not always the best

• Check how many people will be allocated to your move – the more the better • To ease the stress of moving you can plan, get quotes, cost and arrange it all through LJ Hooker Move – Australia’s first online moving service at ljhooker.com• Connecting essential services such as electricity, gas, water, phone and cable services can also be arranged via ljhooker.com through LJ Hooker Connect

• Ensure your move is adequately insured – check if your own insurance policy gives removal coverage and select a removal company with full comprehensive insurance• When packing, make sure you mark boxes clearly with the rooms they will be going to

• Give the removalists a copy of your new home’s floor plan so they are aware of which room is which• A move is a great opportunity to clear out things you no longer use or need. A garage sale is a good idea, or donate your unwanted possessions to a charity• On moving day you may consider having your smaller children cared for as the change

in routine can be unnerving for them • It’s important to make your young children feel at ease quickly, so set up their rooms first• Once you have settled in it is a good idea to make yourself known to your neighbours and begin enjoying your new home• Remember to redirect your mail through Australia Post before you move

Before bidding at auction make sure you attend two or three other auctions to get a feel for process

Set your price range so your heart won’t rule your head at bidding time Take some support with you to the auction, preferably someone with a strong head to stop you bidding beyond

your range

Don’t bid for any property unless you have obtained and accepted all legal, pest and building inspection reports Don’t be afraid to bid aggressively for the property – you want to eliminate other potential buyers Expect the unexpected – prices at auction can shoot up very quickly

Your Guide to Renting, Buying, Selling, and Investing in Real Estate / 13

Tips for buying at auction

When you decide to sell your home you will have to deal with a combination of emotion and hard financial decisions. The following information will help you balance both and align them with market reality.

Successful Selling...

12 / Your Guide to Renting, Buying, Selling, and Investing in Real Estate

What to look for in a propertyWhen you’re thinking of buying, your

requirements will vary depending on

your personal circumstances and on

the sort of property you wish to buy.

You may be looking for a family home,

a “sea change” property or a holiday

home. Once you have found the

property of your dreams, you may

want to pause for a while and reflect

before making an offer or signing on

the dotted line. Consider the following checklist:• Before you decide on anything do you

have your loan approved?• Will you enjoy living in the neighbourhood?• Is the house sound? If you have any

doubts at all, hire building and pest

inspectors to check – this can be

arranged by visiting ljhooker.com• Is it in an area likely to hold resale value

or benefit from capital growth?• Are there any long-term costs or issues

such as body corporate fees, jointly

owned driveways?• What type of Title is the property? Is it

Torrens Title, Company Title, Strata Title,

or some other? Ask your solicitor to

advise on the Title• Does the entire house, including

alterations, have the required Council permits?• Is it built for the climate? Is it insulated?

Will it be warm in winter, cool in summer?

• Have you asked your local council

about planning issues like the possibility

of any big developments planned or

construction of new roads nearby?

• If big changes are needed to make the

property comfortable, then it’s a good

idea to know the costs before you make

an offer• Is the house and land suitable for your

stage in life – are there too many stairs, is

the garden too steep?Then think about the detail:• Does the house have enough bedrooms?

• Are you happy with the garden – or

its potential?• Will you have good access to the

facilities you need such as schools,

doctor, medical centres and shops?• Are there enough bathrooms?

• Is there enough garage space? Is the

garage accessible from inside the house?

• Will you have problems with traffic

or noise?• Is the kitchen serviceable?• Is it safe for your family, eg children,

the elderly or disabled?• Is it suitable for pets?• Are you happy with the building’s security?• Check under the house – is it dry?

• Is the block well drained?For “sea and tree change” properties

or holiday properties:Many of these questions will be the

same as above but if you are buying in

a rural or coastal area, you may wish to

consider other practical issues, such as:

• Is there a good water supply?

• Is there any risk of flooding or erosion?

• How much maintenance work will you

need to do – or pay someone else to do?

• Are you likely to be bothered by nearby

farming or orchard work?• Are there any industries in the area that

could affect you?• Will you still have easy access to your

family, friends, work and recreation?• What will be the long term impact of

corrosive sea air?

Better Buying

Tips for buying off the Internet Always confirm property details with

the salesperson If you cannot view the property ask

a friend to visit it on your behalf and

ask the salesperson to send additional

photos and details on the property and

the neighbourhood Research the local area – transport,

shops, schools etc. – check out the

Locality Guides on ljhooker.com Ensure you have full pest and building

inspections carried out by qualified

inspectors – this can be arranged by

visiting ljhooker.com If negotiating by email, make sure

everyone involved has your email

address – you don’t want an offer

lost in cyberspace!

010 / Your Guide to Renting, Buying, Selling, and Investing in Real Estate

Your home will probably be the

most important and expensive

purchase you will ever make.

In this section we look at how

to plan for, find and enjoy the

home of your dreams.

Better Buying...

08 / Your Guide to Renting, Buying, Selling, and Investing in Real Estate

For many people, renting

property is their first real

estate experience after

moving from home, the

first step along the road to

acquiring property. Renting

gives you the time you need

to save the deposit for your

first home and to get a feel

of where you want to live.

It is also an ideal time to

build a relationship with

your local agent regarding

help in buying and financing

your first property.

Renting Property...

06 / Your Guide to Renting, Buying, Selling, and Investing in Real Estate

THE LATEST PROPERTIES • EVENTS • DISTRIBUTED TO OVER 500 LOCATIONS

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FRIDAY 27 JUNE 2008

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ISSUE 174

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54 REIWA NEWS

smartshare a smart move for wa real estate agents!

QUICK FACTThe latest rollout plans for the National Broadband Network show construction of the high-speed web infrastructure will begin within months to allow connection to another 61,300 homes in areas such as Bunbury, Doubleview, Cannington, Herdsman, Innaloo, Karrinyup, Wembley Downs, Langford, Queens Park and St James. Work will also begin by September 2016 on connection to an additional 79,000 homes and businesses in parts of Bassendean, Hilton, Kingsley, Esperance, Hopetoun, Denmark, Katanning, Broome, Manjimup, Northam, Dongara surrounds, Harvey surrounds, Pemberton surrounds and Nannup surrounds.

reiwa.com SmartShare is our partnership program that rewards your agency based on your reiwa.com advertising spend.

So the more you support reiwa.com, the more you benefit.

This is proving popular among the membership, with more than 130 agencies already signed up for the program.

REBATE

Get a 10% rebate just for signing up.

It’s that easy. Sign up your agency now and you can receive a 10% rebate on your total advertising spend for the period 1 July 2015 to 30 June 2016.

Plus, you can get an additional 20% rebate if you sign up your staff as REIWA Associate Members, and if your agency reaches the spend target set by REIWA.

Note that you must have spent a minimum amount of $2,160 between 1 July 2015 and 30 June 2016 to be eligible for the rebate.

For more information about our new rewards program or to sign up to reiwa.com SmartShare, simply email smartshare@reiwa.com.au or visit the SmartShare page on the REIWA Members website.

reiwa.com Business Development Manager Rod Harris signing up Davey Real Estate general manager Andrew Davey to the SmartShare program

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Well now there’s an easy way to do it!

reiwa.com has launched a new feature for REIWA agents - the ability to create your own public profile page online.

The new reiwa.com Agent Profiles allow you to easily promote yourself and your real estate achievements on your very own profile page.

YOUR PROFILE

You can include your own profile photo, a brief summary of your career (up to 3,000 words), REIWA member logo, a list of your skills and areas of expertise, an outline of your community involvement plus links to your own social media accounts.

You can also dynamically chart a graph of how many properties you have recently sold/rented in your farming area over the past 12 months.

Lastly (but by no means least), you can also promote your recently won REIWA awards!

Want to create your own Agent Profile? For more information, visit the new Agent Profile page in the REIWA Members website or contact our Member Relations Team on 9380 8288 or member.relations@reiwa.com.au.

new agent profiles now available on reiwa.com

Want to boost your profile online and stand out from the crowd?

56 REIWA NEWS

reiwa.com has aggregated its own WA market data and updated its mapping interface to give the WA public an interactive mapping experience like no other.

reiwa.com users can now go online and find out the median sale price of a suburb, how much a suburb has grown and how quickly property is selling in a suburb.

The reiwa.com data is updated fortnightly, which means the public receive the very latest property data right at their fingertips.

LANDGATE PARTNERSHIP

REIWA has also partnered with Landgate to give the WA public all the specific details they need to know about a property such as the dimensions, cadastral boundaries and any pending cadastral changes, plus WaterCorp information such as water meters, water pipes, sewer pipes and connections.

The location of nearby schools, public transport and amenities is also important to understand when deciding on a property, so we’ve integrated that too.

While we’ve always had this information available, we’ve recently improved the user experience to make the data so much easier to find. There’s also some pretty good stuff in there that even you as an agent might like to use!

For more information or a quick tutorial on how to use our interactive maps, contact our Member Relations Team on 9380 8288 or member.relations@reiwa.com.au.

discover even more with our new inter active maps!RE

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reiwa.com is a major broadcast partner of the West Australian Football Commission’s (WAFC) 2015 McDonald’s WAFL premiership season.

After 28 years, the WAFL competition has returned to Channel 7. REIWA chief executive officer Neville Pozzi said reiwa.com is very pleased to partner with 7 Network’s WAFL coverage because of its WA roots and popular appeal with local residents.

OPPORTUNITY

The partnership provides reiwa.com with an opportunity to capitalise on the WAFL’s enormous reach in the local market and boost its local appeal and strength as a WA real estate portal. In fact:

• more than one million people were involved in community football every weekend in WA over the last year

• more than 530,000 people tuned in to watch the WAFL in 2014 and an estimated 40% increase is expected in 2015 with the move to Channel 7

• more than 7.4 million visited the WAFL website

• the WAFL has more than 150,000 engaged fans on social media and 40,000 subscribers to its enewsletters

• an estimated 15,000 app downloads are expected

reiwa.com broadcast partnership with wafl

With the partnership, reiwa.com gained access to a range of broadcast benefits across the 7 Network as well as digital and print media. reiwa.com is also the naming rights sponsor of the “Goal of the Day” in-program asset.

Additional benefits include exposure on the ground during West Coast Eagles and Fremantle Dockers home games.

LOCAL KNOWLEDGE

The biggest benefit reiwa.com has over its competition is local knowledge, from discovering all you could possibly need to know about a suburb to knowing where the local cafes, shops and amenities are.

To engage with the audience and leverage our broadcast partnership, reiwa.com has launched a campaign specifically for the WAFL broadcast: Powered by local knowledge.

Targeted at footy-loving West Australians, the campaign is all about local knowledge. And because REIWA members bring their own personal experience and knowledge to REIWA, we’re featuring them in our campaign. The TV campaign is currently running during the broadcast of the WAFL on the 7 Network and will conclude with the season at the end of September. The campaign will be complemented by digital and press advertising.

If you haven’t yet seen the ads, visit reiwa.com on YouTube to have a look.

Several REIWA agents have a close relationship with the WAFL - from top to bottom,

Santo Pasqua is a life member of the South Fremantle Football Club, Ben Keevers played

163 games for Subiaco and Peter Menaglio played 235 games for West Perth

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an elegant night of awards

Former REIWA president Rob Druitt from First National Real Estate Druitt and Shead was awarded the President’s Award at the REIA National Awards for Excellence staged in Perth in March.

A full house packed the Crown Perth to also see 16 winners in different categories named from among 116 finalists from around Australia.

Among the WA contestants, Ryan McGinnity from CBRE was named Commercial Salesperson of the Year and Kent Cliffe from Momentum Wealth took the award for Buyers Agent of the Year.

THRILLEDREIWA president David Airey said he was especially thrilled to see his colleague and former president Rob Druitt win the highest possible accolade for his exceptional contribution to the real estate profession over a quarter of a century.

“Rob is a very deserving winner of this,” said Mr Airey, “given his tremendous contribution to the development of the

industry through REIWA Council and other avenues, as well as giving his time generously to the auctioneering fraternity and the institute’s training facilities though teaching and mentoring.

“He also has a well-deserved reputation around Perth as a very competent and likeable agent with unquestionable integrity.”

FULL HOUSEDescribed by the REIA as an “elegant night in Perth”, the Crown was packed with Australia’s top real estate industry personnel dressed in their finest.

Premier Colin Barnett was guest of honour and he complimented REIWA on its professional rapport with his government departments including Attorney General’s and Consumer Protection.

REIA president Neville Sanders congratulated all the winners and the guests for making the 2015 National Awards for Excellence such a success, as well as sponsors who made the event possible.

THE WINNERSThe 2015 winners were:

Achievement Award - Renee Bink from Independent Property Management (ACT)

Business Broker of the Year - Simon Winter from Raine & Horne Corporate Business Sales (SA)

Buyers Agent of the Year - Kent Cliffe from Momentum Wealth (WA)

Commercial agency of the Year - CBRE (VIC)

Commercial Property Manager of the Year - Ian Lambert from Ray White Commercial, Adelaide Asset Management (SA)

Commercial Salesperson of the Year - Ryan McGinnity from CBRE (WA)

Communications Award - Toop & Toop (SA)

Community Service Award - Nelson Alexander (VIC)

Corporate Support Person of the Year - Amy Wolter from Place Estate Agents (QLD)

Innovation Award - Distinct Property Management (ACT)

Large Residential Agency of the Year - Nelson Alexander (VIC)

Medium Residential Agency of the Year - Explore Property (QLD)

President’s Award - Rob Druitt - First National Real Estate Druitt & Shead (WA)

Residential Property Manager of the Year - Dylan Emmett from Lucas Real Estate (VIC)

Residential Salesperson of the Year - Mark Di Giulio from Barry Plant Manningham (VIC)

Small Residential Agency of the Year - East Arnhem Real Estate (NT)

LEFT: REIWA hosted the National Awards for Excellence in a glittering night of ceremony at the Crown Perth and the room was packed with Australia’s leading real estate practitioners

BELOW: Dignitaries at the awards night included REIWA president David Airey, REIWA deputy president Hayden Groves, President’s Award winner Rob Druitt, REIA president Neville Saunders and REIWA chief executive officer Neville Pozzi

60 REIWA NEWS

highest national award for rob druitt

REIWA past president Rob Druitt walked proudly onto the stage at Crown Perth in mid March to receive the REIA President’s Award recognising his decades of service to the WA real estate industry.

He won Australia’s most prestigious property honour after being named in September 2014 as the winner of REIWA’s Kevin Sullivan Award.

Rob, an acclaimed auctioneer who is principal/licensee of First National Real Estate Druitt & Shead in Doubleview, has served on and chaired numerous institute committees since becoming a REIWA member in 1992.

He was president of REIWA from 2006 to 2009 and maintains a strong media and industry presence to advocate the interests of real estate practitioners. He advises government on property issues, voluntarily judges or auctioneers at industry and community events, and helps to administer various charities.

ACHIEVEMENTSRob pioneered an historic review of REIWA’s articles of association and structure during his tenure as president to ensure better governance by members, and started planning for construction of the new REIWA House in Subiaco.

He was a REIWA Councillor from 2003 to 2012 and further represented the institute on national issues by serving as a director of the Real Estate Institute of Australia from 2009 to 2012. He chaired the REIA’s Finance and Risk Management committee for two years and served as REIA Treasurer for two years.

Rob obtained his auctioneering license in 1999, represented WA three times in the Australasian Auctioneering Championships and he was the state title holder from 2003 to 2005. His many clients have included various government departments such as the Department of Housing and Landcorp.

He achieved Master Salesperson (2007-2009, 2012-2013) and Grand Master Salesperson (2006, 2010, 2011, 2014) at the rewia.com sales awards.

From 2004 to 2006 he was a key industry advocate for introduction of the Auction Code of Conduct that lifted the standard of professionalism in WA’s auctioneering industry.

Rob, 48, is held in high regard throughout the WA real estate industry and community for his strength of direction, leadership qualities and unwavering commitment to ethical conduct.

Q&AREIWA News questioned Rob about his awards success and career plans:

How did it feel going up to the Crown stage to collect the highest award in Australia’s real estate industry?

It was an amazing honour to be recognised by my peers, and particularly special having the awards night here in Perth with so many colleagues, my parents and friends present.

Do you intend to rest on your laurels or are you planning further years of advocacy for WA’s real estate profession?

I am always happy to help out where I can, perhaps just on a less formal basis than I have done in the past.

What do you consider your greatest accomplishment during your career or involvement with industry institutes?

Leaving the Council as a more constructive, cohesive group that had refocused on the REIWA membership, and lifting REIWA’s media profile.

With a gradual increase in WA property auctions, do you believe the public will increasingly swing toward this sales method?

The public will follow if our agents lead the way! It is heartening to see so many leading REIWA agents now focusing on auctions.

What do you believe are the greatest challenges now confronting REIWA and the WA real estate profession?

REIWA must always be vigilant to remain relevant to all of its members. This is a real challenge as we are a broad church!

You are a fairly young man who has well and truly made his mark in his chosen profession. Are you planning to continue working in the property industry for the rest of your life?

Absolutely. Real estate is in the veins. I will always be involved in the property industry. It will be nice at some stage in the future to slow down from a sales perspective as maintaining high output requires total focus. In the future it’s not about working harder but smarter.

Rob Druitt with his President’s Award trophy

at the Crown Perth

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62 REIWA NEWS

Under glorious winter sunshine on Friday, 29 May, the annual reiwa.com Golf Day proved a big hit.

About 216 of our members and staff gathered at the Joondalup Golf Course to spend the day walking the greens, chatting with colleagues and testing their golf skills.

A marvelous hole-in-one was achieved but, sadly, the ball bounced back out of the hole so no brand new car from our sponsors!

The team which came third on the day was David Evans Real Estate. Coming in second was Summit Realty South West.

Congratulations went to the winning team, Ronnie Caceres, Jayson Watson, Steven Plummer and Kyle Jeavons from Irving and Keenan Real Estate, which also won last year.

Along with reiwa.com, our generous sponsors of the day included Aon, PrintForce, Aperture 22, New Town Toyota, The West Australian, Life & Benefits and MyDesktop.

2015 reiwa.com golf day a big hit

The winning Irving and Keenan Team, with Rod Harris from reiwa.com on the right

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calendar of reiwa events 2015

15 August 2015 reiwa.com Awards BallCrown Perth

17 September REIWA Property Management ConferenceCrown perth

3 December REIWA Christmas CocktailsMatilda Bay foreshore

18 September Spring into Action Sales ConferenceCrown Perth

17 September REIWA Awards for Excellence and Gala DinnerCrown Perth

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David Airey, President Airey Real Estate

Hayden Groves, Deputy President Dethridge Groves Real Estate

Damian Collins, Chair Finance and Risk Management Committee

Momentum Wealth

Ian Cornell Michael Johnson & Co. Professionals

Brett Thorp, North East Region Councillor Thorp Realty

Krys Tully Tully First National

Peter Lawrance Avanti Residential

Joe White, South West Region Councillor JMW Real Estate, Dunsborough

Sarah Kinsey Ray White Uxcel

The Institute’s governing Council presently comprises the following members who would always be happy to discuss their respective areas of specific responsibility:

reiwa councillors

ACTON Canning ValeCanning ValeSimon Pattullo

Consolidated Property ManagementBalcattaSusan Taylor & Lance Fussell

Crème Real EstateSubiacoCindy Lee

Davey Real Estate Mount HawthornMount HawthornFayez Hourani, Andrew Davey

EDC Real EstateNedlandsFiona Roche

General Property AssetsScarboroughJeremy Malaxos

Geographe Bay RealtyBroadwaterAllan and Kaye Smith

Goddard Property GroupAttadaleRonald Goddard

Guardian WA RealtyBeckenhamYos Thamrin, Andri Prasetyo, Tim Zheng

Kimberly Property Advocates BroomeTerry Matthews

Life Real Estate WA KarrinyupRussell Barr

Mandurah #1 RealtySingletonDarren Ahearn, Catherine Read

Oz-One-Stop Realty and Business Solutions Pty LtdPearsallAlberto Caeiro

P.E.B. Real EstateMount LawleyJerry Collova, Arthur Papas

Professional 4 Real TNorthamNaomi Thomas

Property NorthSinagraTeneille Mastai

Rainbow RealtyCasurinaLarry Parsons

TICWA RealtySouth PerthRoss Parkey

reiwa welcomes new members

66 REIWA NEWS

REIWA’s success ultimately depends on your success, which is why we do everything we can to ensure your business runs smoothly and that our specialist tools free you up to focus on growing your agency and developing meaningful client relationships.

Here’s an overview of what your membership of fers you:

KEY BENEFITS

REAL ESTATE FORMS. Up-to-date, complete and concise forms for all transactions.

REIWA INFORMATION LINE. Free personalised guidance by industry practitioners with extensive experience.

REIWA LEGAL HOTLINE. Access to guidance from a legal advisor.

ONE VOICE. With one industry voice, we can make real changes that benefit all West Australians.

REPRESENTING YOU. We represent the WA real estate industry on behalf of you, our members.

AGENCY SUPPORT & ADVOCACY

KEY BENEFITS

LISTING AND ADVERTISING OPTIONS ON REIWA.COM We reach an average audience of 17,000 WA property seekers every day; over 70% of our traffic is from WA. Our advertising campaigns are centred on driving traffic to the site and directing enquiries to you.

LOW ADVERTISING RATES. As your real estate institute, we offer you low advertising rates.

DEVELOPMENT TEAM. Our specialised team can help you with your website, app development and hosting requirements.

MARKETING SERVICES

getting the most from your reiwa membership

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For more information, visit reiwa.com/members or call our Member Relations Team on 9380 8288.

KEY BENEFITS

EDUCATION, INSPIRATION AND RECOGNITION. Our events include award presentations, conferences, seminars and forums, branch and network events and social events.

MEMBER EXCLUSIVE. Our events are for REIWA members only and we keep ticket prices low.

CPD POINTS. Some of our events count towards your CPD points.

CPD

NETWORKING & EVENTS

KEY BENEFITS

REALLY LOCAL. REIWA knows the WA property market and we focus solely on it.

REAL TIME. Get a snapshot of current sales and listings.

WEEKLY SALES REPORT. The most current and comprehensive details on the WA housing market.

BE FIRST. 80% of sales are logged with us first, so you’ll be the first to know what’s going on.

COLLECTIVE KNOWLEDGE. Get access to a range of other information providers.

MARKET INTELLIGENCE

KEY BENEFITS

MULTIPLE CAREER PATHS. We offer training for sales people, property managers and agency managers.

ALWAYS UP-TO-DATE. We’re constantly updating our course information to stay relevant to the latest industry changes.

LEARN FROM INDUSTRY PROFESSIONALS. Be trained by highly skilled professionals who are currently working in the industry.

NATIONAL QUALITY STANDARDS. We’re a Registered Training Organisation and comply with stringent national quality standards.

TRAINING & PROFESSIONAL DEVELOPMENT

DON’T DELAY – For further information contact your Real Estate sales executive at The West Australian today.

Feature calendar 2015REAL ESTATE

2015

Greg Peach Real Estate – Land Sales Phone: 9482 3013 greg.peach@wanews.com.au

dot Knight Real Estate – North/Country Phone: 9482 3594 dot.knight@wanews.com.au

Georgie Gullotti Real Estate – City and Western Suburbs Phone: 9482 3595 georgie.gullotti@wanews.com.au

Jackie calladine Real Estate – Sales Support Phone: 9482 3119 jackie.calladine@wanews.com.au

February 7 and 8PrOPertY rePOrt QuarterlyINCORPORATING APARTMENT LIVINGThe latest market statistics from REIWA are showcased in this report.

March 7 and 8land rePOrt Editorial/AdvertorialThe Land Report offers detailed information about WA’s land market and future releases. Looking at north and south metro and regional areas.

March 28 and 29cOuntrY PrOPertIeSFocusing on homebuyers and sellers in country WA.

May 2 and 3PrOPertY rePOrt QuarterlyINCORPORATING APARTMENT LIVINGThe latest market statistics from REIWA are showcased in this report.

June 6 and 7rIVer Or SeaFocusing on home and land buyers along the WA coastline, the Swan River and adjoining suburbs.

august 1 and 2PrOPertY rePOrt AnnualINCORPORATING APARTMENT LIVINGThe latest market statistics from REIWA are showcased in this report.

august 22 and 23land rePOrt Editorial/AdvertorialThe Land Report offers detailed information about WA’s land market and future releases. Looking at north and south metro and regional areas.

September 5 and 6YOur neXt HOMe GuIdeThis feature will appeal to anyone in the market for services linked to the acquisition of property.

October 3 and 4nOrtHern FOcuSFocusing on properties in the northern corridor of WA.

October 31 and november 1PrOPertY rePOrt QuarterlyINCORPORATING APARTMENT LIVINGThe latest market statistics from REIWA are showcased in this report.

november 14 and 15cOaStal lIVInGFocusing on home and land buyers along the WA coastline.

december 5 and 6luXurY HOMeSFocusing on luxury homes.

* Features are subject to change