JOURNALREAL ESTATE INSTITUTE OF NEW SOUTH WALES | SEP/OCT 2017 VOL 68/05 The true measure of success Why David Howe puts honesty and integrity first PROFESSIONALISM CELEBRATING EXCELLENCE HANDLING A HACK Examining our professional identity Awards for Excellence finalists revealed Be alert and alarmed about cyber crime INSIDE REAL ESTATE JOURNAL The Real Estate Journal is the official magazine of the Real Estate Institute of New South Wales. CONTENTS 30 To terminate or not 30-32 Wentworth Avenue UPFRONT to terminate? Sydney NSW 2000 5 A word from the President (02) 9264 2343 The NSW Small Business [email protected] 6 In brief Commissioner explains the www.reinsw.com.au complexities of managing 8 AGM notice Managing Editor a mixed-use tenancy. Cath Dickinson 8 Board of Directors’ Wordcraft Media election notice 32 Handling a hack: Be alert 0410 330 903 … and alarmed! [email protected] 9 Chapter Committees www.wordcraftmedia.com.au What you can do to minimise nomination notice the risk of your agency falling Advertising (02) 9264 2343 9 Division Committees victim to a cyber attack. [email protected] nomination notice 35 Cyber insurance 10 REINSW Professionalism Art Direction and Design Cyber risk is a major emerging Bird Project Think Tank 0414 332 146 risk for all agencies. Are you [email protected] covered? www.birdproject.com PERSPECTIVES 14 Braving the big chill Printing The annual Real Estate CMMA Digital and Print TRAINING AND www.cmma.com.au Sleep Out saw 180 agents EVENTS raise more than $277,000 36 Novice Auctioneers Photography for charity. Competition State Final Studio Commercial www.studiocommercial.com 38 Training update 16 The true measure The Real Estate Journal is of success 39 Training calendar provided for general purposes only. REINSW gives no warranty McGrath’s David Howe and makes no representation believes honesty and integrity with respect to the accuracy, are the foundations for LAST WORD 41 New members applicability, legal correctness success. Here’s why. or completeness of any of the 42 In the media contents of the Journal. To the extent permitted by law, REINSW excludes responsibility and FOCUS liability in respect of any loss 20 Celebrating excellence arising in any way (including by Congratulations to all the way of negligence) from reliance on the information contained finalists in the 2017 REINSW in the Journal. The opinions Awards for Excellence. Find expressed in the Journal are out who’s up for the top gongs. those of the respective authors and do not necessarily reflect those of REINSW. 26 Examining our professional identity How professionals prove they are keeping their promises to the community through examination. Editorial contributions REINSW welcomes editorial submissions from contributors within the real estate profession. If you have an idea for an article or would like to contribute to the Journal, please email [email protected] Major Partners Partners REAL ESTATE JOURNAL / Sep–Oct 2017 / 3 A WORD FROM THE PRESIDENT / UPFRONT Our future is bright When I look ahead at the long path we must travel to be recognised as a profession, I don’t despair. I know with certainty that we will achieve our goal. Why? Because I see the outstanding calibre of the agents we’re fortunate to count amongst our ranks, including this year’s REINSW Awards for Excellence finalists and those at our annual Industry Summit. of some of them over the years. But my REINSW OctoberCelebrating is always excellence an exciting time of the year Awards for Excellence are particularly special for REINSW as we celebrate the achievements because I know the judging adheres to a rigorous of the best of the best with our annual Awards methodology and anyone entering can be assured for Excellence. There’s always a tremendous of their integrity. buzz across the industry when we announce the I’d like to congratulate all this year’s finalists finalists and that buzz reaches fever pitch by the (see page 20) and I look forward to seeing you time we announce the winners at the Gala Dinner. at the Awards for Excellence Gala Dinner. The excitement and buzz have multiplied this year as we mark the 20th year of the Awards Agents of the future I could not be for Excellence. Some of the best and brightest of our industry The Awards have always been held in the came together at REINSW’s annual Industry more proud to highest esteem, recognising practitioners from Summit on 1 September 2017. The theme of be President as across the spectrum of specialisations of our the Summit this year was “future agent” and industry in NSW. They are the longest running our attendees were drawn from the incredibly the Awards turn real estate industry awards program in NSW and, talented pool of younger agents who are the 20. Winning I believe, the most meaningful. future of our industry. I could not be more proud to be President As we walk the pathway towards the Residential as the Awards for Excellence turn 20. Winning professionalism, it’s essential that we engage the Sales category the Residential Sales category at the inaugural younger of our ranks as they are the ones who will Awards for Excellence all those years ago holds be both the beneficiaries of the work we are doing at the inaugural a special place in my heart and I’m looking forward now and our future standard bearers. Awards for to announcing the names of all the winners at the The Summit generated energetic discussion Gala Dinner on 5 October 2017. from all those in attendance and it was fabulous Excellence all There are lots of industry awards out there now, to see the level of investment they have not just those years ago but the REINSW Awards for Excellence differs in the future of their own careers, but in the future in one very significant way. We focus on quality, of the entire industry. holds a special not quantity. Our Awards have never been about Keep an eye out for a rundown of the Summit place in my who sold the most property, who has the biggest in the next edition of the Journal. rent roll or who manages the biggest office tower. heart. They are called the Awards for Excellence for very good reason. They are about excellence in service, creativity, initiative and commitment, and the winners are selected for their achievements at the highest level. They focus on professional skills and behaviours and how these are executed. I believe this is what sets our Awards apart from other programs. I’m by no means denigrating these other John Cunningham awards. I’ve been the very fortunate recipient REINSW PRESIDENT REAL ESTATE JOURNAL / Sep–Oct 2017 / 5 UPFRONT / IN BRIEF PROPERTY CROWDFUNDING Developers resort to OPENING DOORS wacky gimmicks FOR INVESTORS Investors made up nearly 55 per cent of all Research by the University of home purchases in 2016, but this dropped to South Australia has revealed that less than half of sales in the June 2017 quarter crowdfunding can help would-be due to tightened lending restrictions. investors enter the property market. Lead researcher Dr Braam This might explain why developers are Lowies said the study showed adding exotic features to their projects. From crowdfunding could provide giant waterfalls and rooftop cinemas to car lifts first-time investors with the chance that bring the owner’s vehicle right into the to get their foot in the door into living room, it seems nothing is too far-fetched. the market. “The growing dominance of owner occupiers “There’s a lot of debate about the current state of over investors means buyers are looking for Australia’s housing market and an ‘emotional connection’ with homes,” its inaccessibility, especially for REINSW President John Cunningham said. first-time homebuyers who lack “Developers have to do everything they can foundation capital to buy their to stand out because buyers have more options first home,” Dr Lowies said. “As crowdfunding works by pooling at the moment.” capital from a large group of people to purchase a property, Images from top: The rooftop garden at the Crown Group’s Waterfall development will take landscaping to the next level; Currently under construction is the Crown Group’s seven-storey apartment building in Waterloo, which will have both the dollar investment and the Australia’s highest man-made waterfall down the side. risk are spread across multiple players with people able to make investments as small as $1,000. “Property crowdfunding is still in its infancy in Australia, but as more people become aware New edition of contract for sale and accepting of new digitised investment platforms, we’re likely A 2017 edition of the Contract for Sale and Purchase to see this market expand. It’s of Land has been released to take account of legislative an investment strategy that has PURCHASE changes. the potential to revolutionise the the 2017 edition of the Contract for Sale and It incorporates important changes relating to the property market.” Purchase of Land at Conveyancing (Sale of Land) Regulation 2017, which The Property Crowdfunding lawsociety.com.au/ECOS Australian Investor Perspectives commenced on 1 September 2017, as well as updates 2016/17 report showed property to account for recent strata reforms, changes to the crowdfunding appealed to a range foreign resident capital gains withholding threshold and of demographics, particularly older the loose-full asbestos insulation warning notice. Australians aged between 55 and You can find out more about the changes and purchase the 64 years of age. new edition by going to lawsociety.com.au/ECOS 6 / REAL ESTATE JOURNAL / Sep–Oct 2017 Taking control of short- term holiday letting With more and more visitors to NSW using accommodation services like Airbnb and Stayz, the NSW Government has proposed a regulation crackdown.