SEP 2013 VOL 64/08

What’s inside Awards finalists revealed | Past winners talk | Insurance commission under threat IMPORTANT: SMOKE ALARM COMPLIANCE ARE YOU PAYING TOO MUCH..? Only

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1300 766 532 For more information [email protected] The Real Estate Journal is the offi cial monthly magazine of the Real Estate 2013 REINSW Awards for Excellence Institute of .

30-32 Wentworth Avenue finalists revealed NSW 2000 (02) 9264 2343 [email protected] www.reinsw.com.au

REINSW Board President: Christian Payne

Deputy President: Malcolm Gunning

Vice Presidents: John Cunningham and Brett Hunter

Directors: Gary Adamson, Christine Clarke, Luke Fahy, Miles Felstead, Sarah Lorden, Leanne Pilkington, Tony Santolin and Wayne Stewart

REINSW Management CEO: Tim McKibbin

General Manager: Peter Griffi n

Marketing & Communications Manager: Cathie Dickinson

Education & Training Manager: Michelle Morcombe 15 Legal & Policy Manager: Eva Sklavos

Real Estate Journal Published by Mahlab Media 369a Darling Street Contents Balmain NSW 2041 SEPTEMBER 2013 www.mahlabmedia.com.au

Managing Editor: Martin Wanless

Editor: Jill Park REGULARS INDUSTRY FOCUS DIVISIONS [email protected] 05 President’s message 6 28 In brief To the point Head of Client Services: 05 CEO’s message Roslyn Atkinson The latest updates from the month. The Journal focuses on 26 Training calendar suburb Rodd Point. Sales Director: Sara Lewis 8 30 Last word Advertising Executive: Inside Fair Trading ON THE COVER Giuseppe Mangione How to fi nd terrifi c tradies. [email protected] 12 Winning the long game Designer: Katherine Gennusa 10 Insight The Journal speaks to past REINSW Awards for Excellence Raine & Horne CEO Angus Raine Cover and feature photography: winners to fi nd out how winning discusses the benefi ts of giving a bit Studio Commercial has infl uenced their careers. of blood, sweat and tears for your REINSW Managing Editor: dream job. Cathie Dickinson 15 CHAPTERS Disclaimer 2013 REINSW Awards The Real Estate Journal is provided for general 20 for Excellence fi nalists purposes only. REINSW gives no warranty Fix up, look smart revealed and makes no representation with respect to The top trends in commercial Discover who the fi nalists are for the accuracy, applicability, legal correctness interior design detailed. this year’s Awards. or completeness of any of the contents of the Journal. To the extent permitted by law, REINSW excludes responsibility and liability in LEGAL respect of any loss arising in any way (including 24 by way of negligence) from reliance on the 22 Commissions under threat information contained in the Journal. The The large and the small of it The Strata Management Chapter opinions expressed in the Journal are those of Why agents need to be careful when addresses the NSW Government’s the respective authors and do not necessarily making claims about a property in proposed removal of insurance refl ect those of REINSW. marketing material. commission.

REINSW Major Partners

The Real Estate Journal is a member only publication from The Real Estate Journal is printed on the Real Estate Institute of New South Wales. To fi nd paper that is derived from resources Average monthly out more about membership, call (02) 9264 2343, email which are managed to ensure their distribution 3,915 copies [email protected] or visit www.reinsw.com.au renewability for generations to come.

Real Estate Journal September 2013 3

PRESIDENT CEO

Showcasing Expanding your wins our horizons

The annual REINSW Awards Past Awards for Excellence With advances in technology program. The Chapter therefore for Excellence Gala Dinner is winners are interviewed in occurring in leaps and complements the government’s on again next month, where this edition. When given bounds, we fi nd the world is own strategic direction. the winners in 17 categories offi cial recognition as a top getting smaller every day and will be announced. Entries performer, category winners our ability to participate in Global perspective were received, the judging see real advantages in their markets beyond our traditional It is important in this global age took place and I’m delighted careers and their motivation, geographic areas of expertise for us all to think beyond our to congratulate each of the as our past winners attest to. and infl uence is growing. own backyards. fi nalists – the full list of whom you’ll fi nd on page 15. Gala Dinner The networks and contacts In the immediate future, All of this culminates in the of agents have widened to members will have the Sell yourself Awards for Excellence Gala include not just their own opportunity to participate The Awards for Excellence Dinner. Held on Thursday, suburbs, immediate neighbours in two property exhibitions provide an opportunity for 10 October 2013 at Doltone and cities, but increasingly organised by Window to members to showcase their House on Jones Bay Wharf in international markets as well. China, both of which target successes over the past Sydney, the black tie evening Chinese investors. year. Demonstrating via the is certainly the industry event International Chapter submission process their of the year and is not to In recognition of the global The Shanghai Overseas commitment to service, their be missed! economy that we now live Properties & Investment innovation, their determination in, and our members’ desire Immigration Show (2-5 and their differentiation, the It is an opportunity to to undertake business on an October 2013) and the Chinese entrants impress me more recognise and reward our international level, REINSW Property Expo (26-27 October and more each year. members’ enormous talent, has launched the International 2013) provide a platform for a networking chance like no Chapter. Through this Chapter, Australian property developers I am always encouraged other, and generally just a fun we are creating protocols to and project marketing and excited by the breadth night out celebrating another enable REINSW members companies to showcase of talent we have within our year in real estate. to more easily participate in their projects to a vast membership and representing international markets. investor community. You our industry – this year is Book a table can fi nd out more at no different. Have you booked your table The newly appointed reinsw.com.au/windowtochina. yet? Go to reinsw.com.au for International Chapter Chair is Marketing your all the details. Ray Chan, owner of Henson I look forward to updating achievements Properties. Ray has a wealth of you as the International A reminder to each of the I look forward to seeing you experience in the local market Chapter grows and opens up fi nalists: make sure you all there on the night. as well as in assisting clients opportunities for all members. capitalise on making the from foreign shores with their If you would like to become Awards for Excellence property requirements. involved with this new Chapter, shortlist. Include the please email me at achievement on all your Although the Chapter is [email protected]. correspondence. Social still very new, it has already media, email signatures, participated in some fruitful websites and blogs can meetings with government and all convey your exciting other industry service providers accomplishments. Shout who are similarly keen to about your achievements. gain exposure to foreign markets. The government I congratulate and thank has clearly demonstrated each of the fi nalists for their a strong intention to attract commitment to being the Christian Payne foreign investment through Tim McKibbin best they can be. REINSW President its Signifi cant Investor Visa REINSW CEO

Real Estate Journal September 2013 5 INDUSTRY FOCUS In brief

Reminder of election of the Board of Directors for the 2013–2015 term

Further to the notice sent by mail in mid-August, in Nominations must be made on the approved form and accordance with Clauses 54(a), (b), (c), (e) and (f) and 136 of the be received at REINSW by 5.00pm on 9 October 2013. Real Estate Institute of New South Wales’ Constitution, this is Where there is more than the required number of nominations a reminder that nominations are hereby called for election of for a position, a postal ballot will be held in accordance with the 2013–2015 Board of Directors. Clause 142 of the REINSW Constitution.

Positions to be fi lled are: Eligibility All Voting Members* are eligible to stand for election to a t #PBSE.FNCFST  position as listed above representing the region or area in Representing the Non-Sydney Metropolitan Area which they are principally engaged or the area of practice (either residential or business/commercial practice) as t #PBSE.FNCFST  evidenced by their membership of the relevant Chapter. Representing the Sydney Metropolitan Area (including the Local Government Areas of Gosford and Wyong, but not *A Voting Member is a Life Fellow or an Ordinary Member the Sydney Central Business District) who is licensed.

t #PBSE.FNCFS  Forms can be downloaded from reinsw.com.au/elections or Representing the Sydney Central Business District can be obtained by emailing [email protected]

t #PBSE.FNCFS  Representing members principally engaged in residential real estate practice (auctioneers, buyers’ agents, country agents, residential property management, residential sales)

t #PBSE.FNCFS   Representing members principally engaged in business/ commercial real estate practice (business, commercial, 5JN.D,JCCJO strata management and valuers). $IJFG&YFDVUJWF0GýDFS

PETA KELLIE MARIA CARTER MCKENZIE CARLINO Business Principal at General Development Belle Property Manager of VOX Manager at Castle Hill Property Harvie Group Management at McGrath Q. How do Edgecliff you recruit “Attitude, ambition and aptitude “I think you need to be “Recruiting for our industry are the three key qualities when prepared to explore every has been competitive and and retain selecting successful property avenue when it comes to challenging in the past 12 managers. They must have recruiting the best property months. Our Head of People quality an open and fl exible attitude, management staff. We created a database of the ambition to be the best in attracted our Senior Property potential recruits, allowing property their fi eld and an aptitude for Manager through an ad on our departments to have managers? disciplined, accurate work. If seek.com.au, where we instant access to quality the person is inexperienced, advertise regularly with great professionals looking for their an indication of their initiative success by submitting carefully next challenge. We are proud and discipline, an appreciation worded and very specifi c to say our retention of our of systems, and receptivity advertisements. We have property management team is to instruction and training are also had success by spreading quite high. We have developed essential qualities.” the word throughout our a program to attain their loyalty franchise group.” and increase their productivity at the same time.”

6 Real Estate Journal September 2013 Stamp duty costs Australian TOP TIPS OF property market nearly THE MONTH 4FMMJOHUP 40,000 sales JOUFSOBUJPOBM DVTUPNFST

Crown Group Project Sales Manager Roy Marcellus provides his insight on selling to international customers. 1. Nurture every relationship Never underestimate the power of one simple relationship. I made my first $25m sale on the back of one simple relationship! This is particularly common with Asian buyers. If they are happy with your service and once trust is built, they will open their network for you.

2.. Try to minimise the language barrier REINSW has actively lobbied foregone sales in . duty is important, which is Clients need to clearly the government for many The study revealed that the why I’ve been pleased to see understand the product years to cut the stamp duty short-term impact of a 10 per the Australian Capital Territory offered. Translated rate as a means of stimulating cent increase in stamp moving away from stamp duty marketing material and transactional activity in the duty is to lower house prices and towards land taxes, which brochures should be market and increasing by three per cent. The effect have less adverse impact on available to you and your state revenue. is even greater for homes economic activity,” he said. staff to help clients with located near state borders. limited English feel at ease. “We have clear evidence that REINSW has welcomed If possible, have a staff reductions in other states “Without stamp duty, we’d the findings of the study as member or translator fluent have resulted in consequential have fewer people living in further support for its call in the customer’s native increases in government houses that were too big to reduce stamp duty rates language provide support. revenues,” REINSW CEO (or too small) for their needs, to stimulate the property Tim McKibbin said. and fewer people commuting market in NSW. long distances rather than 3.. Now a new study – How Do living closer to their place Mr McKibbin pointed to the Selling is listening Stamp Duties Affect the of work,” said co-author Reserve Bank of Australia’s Listening is imperative in Housing Market?, authored Andrew Leigh, Federal announcement of its second real estate sales, particularly by Ian Davidoff and Andrew Member for Fraser. interest rate cut of 2013 as with clients from diverse Leigh – has found a correlation evidence that the economy backgrounds as they are between stamp duty and the He believes that the aim of the requires stimulation. more likely to have needs stagnation of housing sales real estate market is to match that are unfamiliar, or that in Australia. the desires of residents to the “The evidence is clear that you probably have not available houses, but this is cutting stamp duty rates yet encountered. Allow According to the study’s hindered by stamp duty. incentivises and stimulates the client to tell you their findings, an increase in stamp the market, which produces priorities, their timing and duty rates from 1993 to 2005 “My sense is that the revenue streams for any requirements they led to approximately 39,000 deadweight cost of stamp government,” he said. may have.

Real Estate Journal September 2013 7 INDUSTRY FOCUS Inside Fair Trading

BY ROD STOWE, NSW FAIR TRADING COMMISSIONER

Finding a terrifi c tradie Reliable tradies are essential for every real estate agency, so how do you fi nd an honest and reliable tradesperson at a reasonable price?

The most important step in engaging a tradie is ensuring they have the appropriate licence for the type of work you or your client require.

Reliable and versatile tradies after failing to prove the for work that has not yet been When it comes to specialist are essential for managing the statements were genuine. done and only a dodgy tradie work such as electrical wiring, demanding maintenance needs will demand a deposit in excess plumbing, draining, gasfi tting, of a sizeable rent roll. Fake recommendations of 10 per cent of the total cost air conditioning installation and False or misleading testimonials of a job, which is illegal under refrigeration, it doesn’t matter So where do you start your are prohibited under Australian NSW home building laws. how insignifi cant the job may search for honest, reliable Consumer Law, and rogue be or how little it may cost, the tradespeople who come at tradies can face fi nes of up Appropriate licence tradesperson must hold the a reasonable price? to $3500, and businesses However, the most important relevant licence. $16,500, if they are caught step in engaging a tradie Spread the word faking recommendations on is ensuring they have the By law, all tradespeople must Good old-fashioned word their websites. appropriate licence for the display their licence number of mouth should never be type of work you or your on any advertisement for their underestimated, so ask around Good tradies will be willing to client require. services, and anyone can for personal recommendations. provide you with references look up the licence details of These can sometimes be from genuine customers and Only a tradie who is properly any contractor by using Fair more reliable than testimonials even offer the opportunity for trained and has the relevant Trading’s home building posted on tradies’ websites. you to view examples of their experience to do the work may online licence check at previous work. They will also be licensed with Fair Trading. fairtrading.nsw.gov.au, or Earlier this year, NSW Fair provide detailed written quotes Anyone who carries out by calling 13 32 20. Trading launched a crackdown before starting a job and residential building work worth on false references, and a indicate the number of hours more than $1000 in labour and So remember, before any number of NSW businesses, the job is expected to take, as materials without work begins always do including a plumbing company, well as the start and fi nishing an appropriate licence is a licence check of your were forced to remove glowing times. A good tradie will never breaking the law and may tradesperson. Have a great testimonials from their websites demand advance payments be prosecuted. spring season.

8 Real Estate Journal September 2013

INDUSTRY FOCUS Insight

Real estate is a calling that is worth some blood, sweat and tears in order to create a long-term career, according to Raine & Horne CEO Angus Raine.

BY ANGUS RAINE, CEO OF RAINE & HORNE

Blood, sweat and tears

Going into real estate is the ladder, remuneration should be will be challenging times – but best career choice you can just one part of the equation. the good days absolutely ever make. It’s a calling that, if My advice is to look for a outnumber the diffi cult ones. you’re successful, can readily Principal who will be a great transform into a small business coach, mentor and trainer. Also, don’t be afraid to take a in the future. With a mix of The right Principal who can break from work to recharge blood, sweat and a few tears, it add to your expertise might the batteries. While real estate can be one of the best ways for be more valuable in the long- can be rewarding, it can be a creating long-term wealth. term than an extra $10,000 or demanding profession as we $20,000 in base salary in the deal with the rollercoaster of Leaving the future to one short-term. emotions involved in the buying side and concentrating on a and selling of properties. successful present involves creating a personal fi nancial Finally, immerse yourself in your plan, with clear and measurable local community. Community goals. From the get-go, it’s I can’t overstate groups represent great possible to make money very that a love for real networking opportunities. fast in real estate. That said, if you don’t set sensible fi nancial estate is essential goal posts, it’s possible to for long-term TOP TIPS FOR blow your ‘hard-earned’ cash YOUNG AGENTS fast. Financial goals might be success. anything from a holiday in six 1. Develop a fi nancial plan months, to a fi rst home in three and set realistic fi nancial years or a business of your Keep learning goals – don’t blow all your own, should you be that way Real estate is a great money on lifestyle purchases. inclined. profession, but it’s easy to end up treading water if you don’t 2. Work hard and seek out Future proof make a commitment to ongoing a mentor who can help you I’m a big advocate of putting education. I recently went ‘back take the next step in your real some money aside when times to school’ to get a postgraduate estate career. are profi table to help ‘future business management proof’ your fi nances in case of qualifi cation, and there are 3. It’s never too late to learn – more testing times. A classic plenty of courses at TAFE, ongoing education should be example is the ubiquitous university or through REINSW a key part of your real estate purchase of a fl ash new car to help improve real estate and career path. after a single year of success business skills. – a common trap for many 4. Maintain a strong network successful young real estate I can’t overstate that a love of family and friends – they agents. My tip is to wait for for real estate is essential will keep you grounded and at least three years before for long-term success. This remind you to take time out. splashing out on a new set profession can afford you the of wheels, if at all. opportunity to meet people 5. Get involved in your from all walks of life and, on local community through Success can also prompt a occasion, access to some of sponsorships, attendance young agent to evaluate his the most incredible properties at events and by meeting or her career options. When imaginable. I’m not saying you’ll new people. looking for the next step up the live the dream every day – there

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SassyRewards.com.au [email protected] Brought to you by Smoke Alarm Solutions 1300 988 288 FEATURE winning the long game The Journal talks to past REINSW Awards for Excellence winners to fi nd out how their win infl uenced their careers.

As we announce the fi nalists for this year’s REINSW Awards for Excellence, the Journal talked to past winners to fi nd out what it meant to them on the night and how their careers have progressed since. Some of our winners have won several Awards and are well-known faces in the real estate industry. They discuss their Awards experiences with the Journal.

I didn’t expect to win, so it confi rmation that the hard work was a wonderful surprise was paying off. and a great honour. We took one table for McGrath at the McGrath Estate Agents has SCOTT Awards for Excellence Gala participated in the Awards for KENNEDY- Dinner in 2002, and have Excellence since then with GREEN, seen that number grow to varying degrees of success. Chief Auctioneer several tables in the years Now that we have a greater at McGrath Estate that have followed. number of offi ces within Agents our network, we tend to select REINSW Award and compete in categories for Excellence – geared towards each individual Auctioneering: 2002 offi ce’s strengths. and 2004 Participation in the I won the REINSW Award for REINSW Awards Excellence for Auctioneering for Excellence in 2002 and 2004. I also won the Australasian Real Estate is a key step in Institute’s Auctioneering achieving industry Championship in 2006 and recognition. the REIA National Senior Auctioneers award in 2007. These industry accolades are the highest I can possibly It was the fi rst time we’d been achieve, so I feel it’s time involved in the REINSW Awards for others to have the same for some time and the fi rst time opportunities that were they had given an Award for available to me. Excellence in Auctioneering. Participation in the REINSW Winning this Award early on in Awards for Excellence is a my auctioneering career was a key step in achieving industry positive step towards industry recognition. I can highly recognition, and to follow it recommend taking the step up with a second win was and enjoying the ride.

12 Real Estate Journal September 2013 I started working in property honour. It really showed that management at the age of hard work does pay off. 16, and therefore had worked in the industry for fi ve years prior Since winning the Award, I have BROOKE to winning the Award. commenced working for a large PURVIS, agency as a Senior Property Senior Property To be honest, I didn’t expect Manager and work alongside Manager at Raine & to win that night, but I was our Associate Director of Horne Newcastle hoping to. It was my fi rst Property Management. REINSW Award for industry award. I spent I would defi nitely encourage Excellence – Young the evening with my work others to enter the REINSW Agents – Residential colleagues celebrating and Awards for Excellence. It is Property Management it was a great night. It really an amazing opportunity and Achievement: 2010 meant a lot to me to win this was wonderful to attend the Award and it was an absolute Awards Gala Dinner.

I started in real estate when Then in 2007 I decided to I was 20, so I’d been in the pursue another property industry for seven years when management company on I won my fi rst Award in 2007. my own. I think because I was MICHELLE doing it on my own I was GALLETTI, I put a lot of work into my very driven to make sure that Sales Executive submission, but because it was I was successful. at Cunninghams my fi rst Awards, I wasn’t sure Property what to expect. I was extremely In 2009 I won my second REINSW Award happy to win because I was Residential Property for Excellence – quite young and passionate Management Award. Residential Property about making a difference in Management: 2007 property management and my I now work for Cunninghams and 2009 business had only been going Property. I started out helping for a year at that time. them with the training of their property management I think winning an REINSW business development team, Award is fantastic for marketing and I moved into sales this year. and when you present that to clients it really does help that I am due to have another baby you have been recognised by in September, but the great the industry’s professional thing about this industry is it’s association. very fl exible. I love it!

We had hoped to make it excellence, and the Awards to fi nalist stage and the win confi rmed this. was very rewarding. We took the team and a few of our At the time of our fi rst win in ADRIAN supportive business partners 2009, our agency was only a WILSON, out for drinks and dinner to three-person team. Principal of Wilson celebrate afterwards. Property Agents We now have a team of 11 REINSW Award As a boutique agency, across two offi ces and we are a for Excellence – the Award for Excellence market leader in both property Residential Agency – supported and cemented our management and sales within Small: 2009 credibility and status in the our core areas. industry, and it was an affi rmation of our desire to I would encourage those provide excellence to our agents or agencies that wish clients at all times. to promote the betterment of the real estate industry, The Award underpinned our those who strive to build a ethos and standards, which world-class business, and allowed us to showcase this those who work towards to our clients in a credible providing service excellence and offi cial way. Our business and continually improving their has grown as a result of our business, to enter the Awards determination to achieve for Excellence.

Real Estate Journal September 2013 13

Andrew Cooley Angus Macleod Paul Millett Cooley Auctions Ray White Rural Wagga Cooley Auctions

Richard Harvey Jacqueline Parker Nicholas Viner propertybuyer House Search Australia Buyers Domain

Real Estate Journal September 2013 15 SPONSORED BY

CBRE Commercial Property Commercial Property Group – Bankstown Group – Bennett

Bethan Williams CBRE

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16 Real Estate Journal September 2013 SPONSORED BY

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Property Marketer

Danny Grant Gavin Lloyd and Rohan Ramsay Betty Ockerlander Ray White CBRE Better Homes Realty Lower North Shore Real Estate Agency – Small

Callagher Estate Agents Hart Estate Agents Justin Ferguson Newton Real Estate Property Specialists

Real Estate Journal September 2013 17 Real Estate Agency – Large

SPONSORED BY

Cunninghams Property McConnell Bourn McGrath Mosman Morton & Morton

Residential Property Manager

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18 Real Estate Journal September 2013 Join us at the 2013 REINSW Awards for Excellence Gala Dinner

Thursday, 10 October 2013 6.30pm to 11.30pm Venue Doltone House Jones Bay Wharf, 26-32 Pirrama Road Pyrmont Point, Sydney Dress Black tie Cost $199 per person, $1800 per table of 10 (prices GST inclusive) Book online at www.reinsw.com.au

Design sponsor Category sponsors FEATURE

Fix up, look smart BY JILL PARK Seeing the potential of a commercial offi ce space can be challenging for the uninitiated, so the Journal reveals the current trends in interior fi touts.

Clients need to imagine how indoors. That’s something we an empty commercial offi ce KEY OFFICE are going to see a great deal space can be confi gured to more of. This is now more work for them. A nice view of FITOUT readily available and it’s not the Harbour or a good central TRENDS just for large spaces. As long location can act as a strong as you have appropriate selling point, but what if the lighting and irrigation, you space doesn’t have these APEX Executive Interiors can provide a green space in appealing features? Business Development an offi ce. One option is a wall Manager Steve Bruss reveals of plants, which can even be According to APEX Executive the key trends in offi ce fi touts. dismantled and taken with you Interiors Director of Business to your new offi ce. Development Steve Bruss, Colours good offi ce design is no Most people think ‘let’s paint a longer only for large clients room fuchsia pink and that will with big budgets. It is possible add a pop’, but the reverse is to inject personality into a true. You need to add colour in What we are space so that it refl ects a a strategic way. Lemon yellow company’s ethos – regardless and mossy green are very fi nding now is that of the views or location. popular right now. Colours Colours it’s possible to that refl ect nature. What you “What we are fi nding now is need to do is think of it as a provide modern that it’s possible to provide space where you spend a large fi touts in a cost- modern fi touts in a cost- amount of time – a place that effective way,” he said. must ultimately be professional, effective way. but also comfortable as well. “The idea of an unlimited budget isn’t feasible anymore. Eco-friendly furniture Declutter Everyone has a budget, but and fittings If you have a cluttered you also need to be able to Is this a company that focuses desk, you risk your think creatively to differentiate some of its revenue on eco- concentration moving to that tenant from others.” friendly causes? When agents other things. Increasing ask these questions, their storage is important in order People spend the majority of Bringing the outdoors in clients do not necessarily to avoid clutter and improve their day at their job, so know the answers, but it starts organisation. a well-designed workspace the dialogue that they want can infl uence staff retention. to understand their company Advanced technology culture. Everyone likes to talk Integration is a hot topic However, there is no magic about it, but it needs to make right now. The trend is not bullet, as APEX Executive sense for each group’s budget. just for the board rooms to Interiors owner Paul LED lights, for example, are a be technologically advanced, Donaldson said. critical piece. but for meeting rooms and more informal rooms to “Every company has a Bringing the outdoors in feature technological different culture and method One of the big trends at the integration too, making them of working. You cannot apply moment is to create little useful and functional for all the same rules to everyone.” Declutter gardens and green spaces groups of people.

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The large and the small of it BY NANCY RAINBIRD, MANAGER CLAIMS, COMPLIANCE & RISK AT REALCOVER How a discrepancy in the listed size of a property led one agent to court.

It is so easily done. You check the different pieces of marketing material for a property, sign them off and distribute them. But what happens if the property dimensions are not consistent across each item? Just what are the ramifi cations for an agent in this situation? Care should be taken when using information provided by third party In a recent case, a client entered into a Contract for Sale, service providers. but one business day after the auction, the buyer contacted the agent to explain that his lawyer’s offi ce had discovered are that although the basic information provided by a Disclaimer a discrepancy between the principle of property law is third party. The leading case While care has been taken preparing this article, and the information contained actual size of the land and caveat emptor (buyer beware), in the area is the High Court in it has been obtained from sources the stated size of the land in a real estate agent will be case Butcher v Lachlan Elder that Realcover believe to be reliable, the fl yer accompanying the responsible to the purchaser Realty Pty Ltd [2004] 218 Realcover does not warrant, represent advertising brochure for for any loss fl owing from a CLR 592, where the agent or guarantee the accuracy, adequacy, completeness or fi tness for any purpose the property. misrepresentation made by had reproduced a surveyor’s that the article may be used. Realcover the agent. diagram that was (unbeknownst accepts no liability for any loss or damage Some time prior to the sale, to the agent) inaccurate. (whether caused by negligence or not) the agent had purchased This is regardless of the fact resulting from the use of this article. property information from a that the Contract for Sale Although the facts differ well-known online provider. includes clauses to the effect between the two cases, they The agent relied upon this that the purchaser cannot both go to prove that agents USING THIRD online information when claim compensation for any should always use robust calculating the width of the alleged defi ciency in the area disclaimers. They must ensure PARTY property and these incorrect of measurements of the land. that the disclaimers are large INFORMATION calculations appeared in the enough to be read, included promotional fl yer in question, Liability on every document that t "MXBZTVTFSPCVTU but nowhere else. An agent, however, is not liable contains any information EJTDMBJNFST if the purchaser’s actions break about a property and make it t &OTVSFUIBUUIF Mitigating factors the chain of causation, or if it is clear that the agent is relying EJTDMBJNFSTBSFMBSHF The fl yer did happen to contain shown that the purchaser did on information provided by FOPVHIUPCFSFBE a disclaimer and warning, not rely on the representations a third party and has not t *ODMVEFUIFEJTDMBJNFST and the Contract contained of the agent. checked the accuracy of POFWFSZEPDVNFOUUIBU the correct boundary that information. DPOUBJOTBOZJOGPSNBUJPO measurements (in feet). In The courts, including the BCPVUBQSPQFSUZ addition, the Contract included High Court, have made it Regardless, care should be t .BLFJUDMFBSUIBUUIF a disclaimer. clear that every case must be taken when using information BHFOUJTSFMZJOHPO considered on its own facts. provided by third party service JOGPSNBUJPOQSPWJEFECZ However, the general principles providers. Ultimately, you have BUIJSEQBSUZBOEIBTOPU that apply to misleading and In the current claim, the to come to what is essentially DIFDLFEUIFBDDVSBDZPG deceptive conduct claims misleading description of the your own conclusion about the UIBUJOGPSNBUJPO arising in a real estate context land arose from inaccurate dimensions of property.

22 Real Estate Journal September 2013 Tuesday, 22 October 2013 – Sydney

Take in breathtaking views of Sydney Harbour from the perfect vantage point of Sydney’s Luna Park. MC Shaynna Blaze, from Selling Houses Australia and The Block, will introduce an impressive line-up of speakers.

Keynote speaker Ita Buttrose AO, OBE Our keynote speaker is Ita Buttrose AO, OBE. One of Australia’s most admired women, Ita is a legendary media editor, businesswoman, best-selling author, committed community and welfare contributor and 2013 Australian of the Year. This is an unmissable opportuny to hear from a truly exceponal woman. Be sure to book your place!

Heather Swan Peter Bliss Jen Harwood Leanne Pilkington World record-holding Lifestyle solutions International business General Manager at extreme sportswoman coach and owner speaker and small Laing+Simmons and motivational of Business is Bliss business expert speaker For more information and to register, visit www.reinsw.com.au

Proudly supported by: It’s sure to be a sellout

Details book now! Date Time Cost Tuesday, Registration 8.30am EARLY BIRD SPECIAL STANDARD PRICE (Includes food and 22 October 2013 Conference Book before 15 Sep 2013 From 16 Sep 2013 refreshments throughout Venue 9.00am to 4.30pm REINSW members $340* REINSW members $374* the day and networking Crystal Palace Ballroom Networking drinks Non-members $415 Non-members $457 drinks) Luna Park 4.30pm to 6.30pm (all prices include GST) 1 Olympic Drive CPD points Milsons Point 12 (Learning Category 2) * Members include staff of member agencies who do not hold personal REINSW membership. CHAPTERS Strata Management

Commissions under threat BY JILL PARK REINSW is in consultation with the NSW Government about proposals to remove insurance commission.

the removal of insurance industry as part of the agreed commission could have overall management fee for severe ramifications for both strata management,” Strata consumers and the strata Management Chapter Chair management industry. Gary Adamson pointed out.

Retiring generation According to the Macquarie Relationship Banking’s The financial 2011 Strata Best Practice Benchmarking Survey, two ramifications out of every three strata for stata management business owners plan to retire within the next managers will three to five years. The value be immense. of these businesses will be decimated by the proposed banning of insurance commissions. The banning of insurance commission will lead to a short- Another matter that has to medium-term loss of income not been considered is that for strata managers, as many federal legislation precludes a Representatives from the ii) Transparency of enter into three- to five-year third party (the strata manager) REINSW Strata Management remuneration arrangements management contracts. from dealing with insurance Chapter recently met with need to be improved, including claims unless they are an NSW Minister for Fair Trading insurance-related services. The consequent increase in authorised representative of Anthony Roberts and his management fees to make the insurer. Chief of Staff to discuss the It would appear the up for the loss of income will Government’s proposal to Government’s hope is that by result in a move by many If strata managers are remove insurance commission. banning insurance commission, smaller strata schemes to self- banned from the receipt of insurance premiums will drop management, which will likely insurance commissions, they In discussions, the Minister by at least 20 per cent. cause a host of compliance will no longer be authorised raised the concern that problems to arise. representatives, and as a insurance commissions On a typical residential strata result strata scheme owners inherently have a built-in scheme, taxes make up The financial ramifications will have to deal with their incentive for managers to about 46 per cent of the gross for strata managers would own claims. choose higher premiums. premium and the commission also be immense, both from approximately 11 per cent. a revenue and business value It is clear that if the proposal The Strata Management Therefore, the Government’s perspective. eventuates, the ramifications Chapter summarised the goal to reduce insurance for the strata management Government’s key concerns premiums by 20 per cent does “Insurance commissions have industry will be immense. as follows: not appear to be viable. been around since strata schemes commenced, which REINSW, in consultation i) Strata managers should Chapter concerns was long before licensing was with the Strata Management be free of what is termed The Strata Management introduced in 1982, and have Chapter, will continue to lobby ‘conflicted remuneration’; and Chapter is concerned that always been considered in the on this issue.

24 Real Estate Journal September 2013

TRAINING

Training calendar

Women in Real Estate Conference – 22 Oct FEATURED Sydney Paint the town pink at the Women in Real Estate Conference on Tuesday, 22 October 2013. Held this year at Sydney’s Luna Park, it will be a day full of inspiration, motivation, networking and fun. EVENT Be sure to book your place!

OCTOBER 2013

4 Oct tSYDNEY CPD 11 Oct tSYDNEY CPD 21 Oct tSYDNEY CPD 28 – 31 Oct tSYDNEY Managing Your Property WHS for Strata Managers – An Agent’s Guide to Tax and Certifi cate of Registration Management Workplace Legislation Overview Property Investment Course (9.30am–1.30pm) (9.30am–1.30pm) (9.30am–1.30pm) (9.00am–5.00pm)

8 Oct tSYDNEY CPD 14 – 17 Oct tSYDNEY 21 – 24 Oct tSYDNEY 29 Oct tSYDNEY CPD Creating Impact and Infl uence Certifi cate of Registration Certifi cate of Registration Maximise Your New (9.30am–1.30pm) Course Course Management Success Rate (9.00am–5.00pm) (9.00am–5.00pm) (9.30am–1.30pm) 8 – 11 Oct tSYDNEY Certifi cate of Registration 15 Oct tSYDNEY CPD 22 Oct tSYDNEY Course Prepare for Selling Like Women in Real Estate (9.00am–5.00pm) Never Before Conference (9.30am–1.30pm) (9.00am–4.30pm) 10 Oct tSYDNEY (Followed by networking drinks) 2013 REINSW Awards for Excellence Gala Dinner (6.30pm–11.30pm)

NOVEMBER 2013

2 – 23 Nov tSYDNEY 11 – 14 Nov tSYDNEY 22 Nov tSYDNEY CPD Certifi cate of Registration Certifi cate of Registration The ABC of Compliance WANT TO Course Course (9.30am–1.30pm) (9.00am–5.00pm) (part time) (9.00am–5.00pm) KNOW MORE? 25 – 28 Nov tSYDNEY 4 – 7 Nov tSYDNEY 14 Nov tSYDNEY CPD Certifi cate of Registration Certifi cate of Registration WHS for Property Managers – Course You can fi nd out more Course In Practice (9.00am–5.00pm) about all of our courses and (9.00am–5.00pm) (9.30am–1.30pm) register online by visiting 27 Nov tSYDNEY CPD www.reinsw.com.au 6 – 8 Nov tSYDNEY 18 – 21 Nov tSYDNEY The DEF of Compliance Auctioneers Accreditation Certifi cate of Registration (9.30am–1.30pm) (9.30am–4.30pm) Course Click on Course Schedule (9.00am–5.00pm) in the Training menu. 8 Nov tSYDNEY CPD Creating Impact and Infl uence 20 Nov tSYDNEY CPD (9.30am–1.30pm) An Agent’s Guide to Tax and Property Investment (9.30am–1.30pm)

26 Real Estate Journal September 2013 Congratulations to the 2013 REINSW Awards for Excellence finalists!

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Realcover is the only professional indemnity insurance policy recommended by the Real Estate Institute of New South Wales. DIVISIONS

To the point The Inner West suburb of Rodd Point packs some 400 properties into a historic pocket of Sydney Harbour.

Sydneysiders who have done little piece of greenery skirts may have passed the edges of the Bay Run and the Inner West suburb of Rodd offers joggers and walkers a Point without even realising small reprieve on their route. it. Sandwiched between the The ‘Point’, as Rodd Park is suburbs of Five Dock and known locally, is home to the Russell Lea, Rodd Point is Dobroyd Aquatic Club (DAC). a tiny but historic piece of The club holds regular races Sydney real estate. throughout the summer and winter seasons. Brent Clements Rodd, the patriarch that the area was Located off the end of Rodd named after, was a solicitor Park is . This was from Barnstaple in Devon in once the home of scientists the UK. He owned land across working for French chemist NSW and in 1838 bought 50 Louis Pasteur, investigating acres in the Five Dock area ways of eradicating rabbits. from former convict and The island is now part of the auctioneer Samuel Lyons. Sydney Harbour National Park. Sydney’s Bay Run follows the perimeter of Rodd Point. It is a popular picnic destination Barnstaple Road, which accessible by private boat, marks the Northern perimeter water taxi or for the more the Lumb Family get renovated, proximity to the city centre of Rodd Point, was named adventurous, kayak. recreated and some rebuilt into have made it a popular area after the Rodd family home grand homes, some with water with buyers. Drummoyne Barnstaple Manor in England. “Buyers are drawn to Rodd and city views.” and Five Dock also offer His family patronised the area Point for its quiet lifestyle, residents nearby shopping throughout the nineteenth its amazing Bay Run, local Rodd Point today consists hubs, while the city itself is century. Similarly, many of the parklands and access to the of just over 500 homes with a short drive away. local streets are name after the CBD via the City West Link,” an average land size of Rodd family children: Brent, True Property Principal Braden 380sqm. What makes the area “This is what draws a lot of Brisbane, Burnell, Clements, Walters said. particularly unique to the Inner growing families to the area Janet, Lenore, Rodd, Trevanion West is that there are no units and continues to drive prices and Undine. “The property market in Rodd in Rodd Point, only houses. forward. Rodd Point is such Point continues to show an attractive pocket of Located at the end of the small signs of growth, as the 1940s The area’s unique aesthetic, Sydney’s Inner West peninsula is Rodd Park. The Californian bungalows built by access to the water and waterways,” Braden said.

AROUND RODD POINT

Property of Dobroyd Aquatic Club.

Rodd Island is famous for being where Dobroyd Aquatic Club (DAC) is open The seven-kilometre Bay Run track Rodd Point features properties in the scientists, working for French Chemist year round and features a clubhouse traces the shore of Bay. The Californian bungalow style and many Louis Pasteur, investigated ways to with fantastic views of Iron Cove and Iron Cove bridges join the track into a of the original 1940s properties remain eradicate rabbits. the city beyond. loop, which makes it popular with today in their original state, although joggers and cyclists alike. some have been developed.

28 Real Estate Journal September 2013 DIVISIONS

RODD POINT KEY STATS Q&A

People BRADEN WALTERS 1295 Principal at True Property Private dwellings 503 Median weekly household income $1900 Braden has been a member of the Young Agents Chapter and the Median monthly Inner West Division Chair for two terms. mortgage repayments $2500 Q. Tell us a bit about your Division. A. The Inner West offers great accessibility to transport in and Median weekly rent out of the city. There is a great lifestyle through the Inner West $620 waterways and also affordable housing along with some premium Median house price* properties. The year 2013 has been another positive one for the $1,130,000 Inner West property market. Most of the Division has seen an Vacancy rate^ increase of around fi ve per cent capital growth for houses. 2.5% Q. Is there a certain style of property that is particularly Source: popular? Unless otherwise specifi ed, A.The majority of the Inner West was developed post World War II; statistics are sourced from 2011 therefore the most prevalent house would be the Californian Census. bungalow. A renovated bungalow is certainly a great home for * REINSW Property Profi le – March a large majority of the buyers throughout the Division. 2013; median price refers to Local Government Area. Q. What are the key issues in your area at the moment? ^ REINSW Vacancy Rate Survey – A. The key issue at the moment in the Inner West would be the July 2013 (Sydney – Inner). lack of stock to provide buyers with what they need. Agents must look after buyers very closely in a marketplace where there is little stock. This will lead to more business as those buyers may need to sell their own properties in order to purchase. As we get closer to spring, we expect the supply of properties on the market to increase. Buyers are drawn to Rodd Point for Q. What plans do you have for the Division over the next year? its quiet lifestyle, its amazing Bay A. Our Novice Auctioneers Competition is our major event for Run, local parklands and access to our Division and will be held on 25 September 2013 at Erskineville the CBD via the City West Link. Town Hall. I would love to have more of the Division get involved and come along to network with other agents, raise money for charity as an industry and have some fun.

Interested in getting involved in your Division? For more information, email REINSW at [email protected].

Real Estate Journal September 2013 29 LAST WORD

AROUND Super woman THE STATES A chance encounter in a pub rekindled a love QLD for charity work in Raine & Horne Bondi Beach Queensland agent Tamara English hit the headlines for Associate Director Mary Anne Cronin. dressing up as Batwoman and posing in the property pictures used to market a Caboolture house. She told the Herald Sun that she didn’t expect to get as much attention as she has. “I knew people would be interested from the images, but it’s gone much bigger than I thought,” she said. WA Perth Lord Mayor Lisa Scaffi di has joined with the University of Western Australia Vice- Chancellor Professor Paul Johnson to call for the boundary between the City of Perth and the City of Subiaco, which (L to R) NSW Premier Barry O’Farrell, NSW Woman of the Year award winner Jessica Brown, Member for Vaucluse currently runs through the middle Gabrielle Upton, Raine & Horne Bondi Beach Principal Mary Anne Cronin and Minister for Women Pru Goward. of UWA, to be moved. “A closer alignment between the city It was a meeting with a man “It wasn’t until I met a few Mary Anne was recently and UWA would bring a vibrant selling charity raffl e tickets people there that I realised asked by the Mayor of Bondi student population into the down at her local pub that you cannot just be a sponsor, to speak at the citizenship city’s realm, with long-term fi rst brought Wairoa School you need to get involved,” ceremony. She used the community benefi ts,” the Hon. for children with special she said. opportunity to encourage Ms Scaffi di said. needs in Bondi to the the group to get involved in attention of Raine & Horne Mary Anne’s work with the the community however Bondi Beach Principal Mary school, North Bondi Surf they can. ACT Anne Cronin. Life Saving Club and the The Australian Capital Territory local Chamber of Commerce “I told them, ‘You all live topped the list of dwelling “The man and I got talking, (where she is President) here; go out and fi nd approvals in Australia for May and I went along to the brought her to the attention something that interests 2013 with an increase of 4.1 per school and said that I of Member for Vaucluse you. Find a group you can cent. Western Australia, South wanted to get involved,” Gabrielle Upton. Gabrielle invest your time in. You will Australia, Victoria and New Mary Anne said. nominated Mary Anne for the feel an incredible part of the South Wales all experienced an Vaucluse Local Woman of the community. I feel 110 per increase in dwelling approvals Raine & Horne came on Year Award for 2013 – a prize cent part of Bondi Beach’.” for the month. board as a sponsor and the she went on to win. Bondi agency would regularly hold charity auctions “Despite being busy, Mary YOUR STORY NT in advance of their own Anne still makes time to More than 3000 households in We want to hear your stories! property auctions to raise actively support her local the Northern Territory suffer from funds for the school. community groups like If you, or a member you ‘rental stress’, according to a Wairoa School and the North know, supports a charity, new survey from NT News. The The agency’s support Beach Bondi Surf Life Saving you can share the story survey revealed that the area for the school has since Club — and I know those in the ‘Last Word’. where households fi nd it hardest escalated to include local communities really Email the editor at to meet rent is the electoral seat sponsored trivia nights value her contributions,” [email protected] of Soloman, Darwin. and sportsmen’s lunches. Gabrielle said.

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