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A host of Melbourne suburbs drop below the million-dollar median mark

The Domain House Price Report for December 2018 has provided a list of the suburbs which had previously seen median home prices above $1 million dollars, which can no longer claim as such.

In early 2018, the number of million-dollar suburbs was on the increase – last February saw 13 new suburbs cross this immense threshold, bringing the total count to 143 such suburbs. However, recent data shows that as of December 2018, 16 suburbs have fallen from the illustrious list.

The full list of these suburbs, their new median prices and total percentage decrease across the year, are as follows:

While property owners in this region will be unhappy with this news, Director of Nelson Alexander Flemington, Paul Harrison, pointed out to Domain that this is having, and will continue to have, a positive impact on the Melbourne and Australian markets at large.

Labelling these price dips as a “correction,” Mr Harrison said that buyer interest had piqued in January of 2019 as a result of these lower prices. “It was like everyone decided to forget 2018 and wait until 2019.”

With Melbourne being the epicentre  for much of Australia’s real estate woes in 2018, this positive lining bodes for the rest of the country.

While Melbourne’s prices drop and buyer interest flicks upwards, it is a very different story among the nation’s smaller markets. Perth is seeing surges in home value and sales activity throughout many regions.  Meanwhile, Tasmania is seeing a slowdown of the real estate surge it enjoyed throughout late 2018, with contention as to the cause. Common to all of these stories is an upwards slant, albeit one that is slowing for some and just beginning for others.

All momentum could soon be subject to a strong disruption, however, with the final report of the banking royal commission to be released later today. The recommendations of the report on banking lending practices could determine much of 2019’s ebbs and flows.

Source: Domain.com

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The Best (And Worst) Property Videos

Love or hate property videos, expect to see more.

While many property videos feature cringe-worthy appearances by agents trying to self-promote on a vendor’s dime, some videos do generate exceptional results. And from what we can gather, it’s all about content.

YouTube & Facebook have improved the quality of data that can be collected from a video, giving back information on how engaged the viewer was, where they stopped watching and what they did after watching.

This data, alongside every social media platform’s mission to push video content further than links or pictures, is the driving force behind video’s push to be the dominant form of advertising in the real estate landscape.

We’ve collected a list of sample videos including the good, the bad and the downright cringe-worthy, all in the name of learning (and a bit of a laugh), to learn more about what content makes a video work.

A Little Bit Of High Energy Fun

Plum Property – 80 Warburton Street, Bardon

Plum Property is an online name synonymous with property videos; high quality productions, entertaining content and no stuffy sales pitch.

80 Warburton Street is the property video with the highest view-count on the agencies YouTube channel – but be sure to check out all the others.

“Now Here’s The Deal”

Whitefox Real Estate – 33 CRIMEA STREET, ST KILDA

“Now Here’s The Deal” – That now famous catchcry of the boutique brand that has exploded onto the Melbourne real estate scene almost overnight.

Star Power To The Rescue

Realestate.com.au TV Commercial

Real estate behemoth REA Group racked up nearly 1m hits on this video featuring Arnie back in 2014 – almost double their next highest viewed video on the channel.

Arnie was brought in to bring a little star power to the media giant’s TV advertising campaign, focusing around their editorial content.

Quick, Fast, Edgy & Throw In Some Cartoons For Good Measure

How Smart is a CENTURY 21 Agent?

Century 21’s cheeky 2014 tv commercial was aimed at providing “a fresh new approach and talent.”

The agency produced 2 x 30 second and 2 x 15 second adverts for screening on air that year based on the “How smart is a Century 21 Agent?” campaign.

Yes, “Zold” Makes It To This List… But Here’s Why

10 Pleasant View Crescent, Wheelers Hill

Love him or hate him, Zed Nasheet has had brilliant success in delivering high-impact video marketing campaigns, mostly through stepping out of the “norm” and heavily promoting his own brand and style of sales.

Whilst his style definitely has it’s haters, his videos attract tens of thousands of views and his success as an agent speaks for itself.

Below is a property video including a full entourage of backup dancers, lamborghinis and an original song. While we don’t LOVE the video, it DID rack up 33,000 views on YouTube alone…

If The House Isn’t That Impressive, Just Show The Garage

Sotherby’s International – “Modern Hideaway” in Bellevue

The production quality of this next video is actually quite poor, however it didn’t reach 1 million views for nothing!

The producers of the video knew the best feature of this home was it’s garage, or rather, the cars in the garage. 91 seconds of the total 120 second video is focused on a car or the garage, then we get a peek at a lounge, a bedroom and then the lounge again.

Still, if it looks stupid, but it works, ain’t stupid!

Cringe-Worthy Songs Seem To Work Actually…

Xsell Property – 8 Leane Ave Ridgehaven

We couldn’t get all the way through this video, but it is Andrew Kyriacou of Xsell Property’s highest viewed video.

The Adelaide agent has made headlines for his approach to selling homes, and his agency loves pushing the boundary with everything they do.

(Oh, if you ever try doing something a bit different, don’t read the comments section of YouTube… It gets nasty)

(If you’re not into rap, Andrew also does a nice jazz video)

Actually, We Just Really Love Plum Property’s Dan Lee

49 Thorpe St, Indooroopilly

This guy’s energy is amazing – that’s all there is to say about Dan Lee.

49 Thorpe St, Indooroopilly

This old girl is worth a call back … 📞For Sale: 49 Thorpe St, Indooroopilly3🛏️ 2🛀 2🚗 Character home, 948sqm block facing the city, gains to be made!! Click for more info 👉 http://bit.ly/2MQWr0x or contact Daniel on 0432 219 903

Posted by Dan Lee on Wednesday, 5 September 2018

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Real estate recovery – the Perth suburbs surging upwards

  • Cottesloe, Gwelup and Bicton among most promising Perth suburbs
  • Stirling is Australia’s second-strongest government area for growth markets
  • These increases are built from a low base, following a drop post-resources boom

In the wake of widespread downturn throughout Australia’s larger markets – Melbourne’s recent figures particularly bleak – Perth’s suburbs have been singled out by a recent index as leading the charge of a national real estate recovery.

The 2019 Price Predictor Index is put together by analyst Terry Ryder and available through his Hotspotting site – basing its predictions on quarterly sales trends, Mr Ryder has indexed Australian suburbs leading the way in the real estate recovery.

Surging suburbs

Mr Ryder’s Perth suburbs to keep an eye on throughout 2019, and their corresponding median price values, are as follows:

  • Greenfields at $270,000
  • Bassendean at $483,750
  • Spearwood at $470,000
  • Joondalup at $502,500
  • Gwelup at $818,000

And among the state’s most affluent regions:

  • Bicton at $1,057,500
  • Cottesloe at $2,125,000

Each of these Perth suburbs are seeing increases in demand and value, likely to continue throughout 2019.

“Perth is moving into a recovery phase and we are seeing a lot of suburbs with rising sales activity, albeit from a low base,” Mr Ryder said.

“Nevertheless, the pattern over the last 12 months for many suburbs has been up, and the Perth market is now the strongest we’ve seen since the end of the resources investment boom.”

Echoes of the resources boom

This low base is especially evident when comparing median suburb prices since the resources investment boom. Port Hedland is a vivid example, with median prices at over $1 million during the peak of the boom, dipping to less than $350,000 a year ago. Despite this diminutive base, Port Hedland also exemplifies the increase, median prices now up by 12% at $385,000.

Taking a look at Western Australia’s market through a broader lens, municipalities are also performing well among their interstate peers. My Ryder points out that the area of Stirling is the second-strongest municipality in Australia for growth markets, with the strongest being Port Adelaide-Enfield.

My Ryder states that, “We have often commented in this report that the municipality of Stirling has stood out for ‘sterling performance’ in the face of the Perth downturn — and its status has grown.”

Similarly, the government area of Melville is among the top ten Australian municipalities for sales growth.

Smaller markets have contributed much to the real estate market of late, Tasmania also credited with increasing real estate figures, albeit hindered somewhat by alleged ill-advised council decisions.

Seemingly unhindered by such problems, Western Australia appears to be on a steady upwards march – lending Australia momentum, as the nation struggles to recover from widespread downturn.

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‘Spurious’ council decisions blamed for slowing Tasmania’s real estate surge

  • 11,400 property sales in 2018, worth $4 billion
  • In the final three months – 9% dip across greater Hobart, 23% drop in inner-city sales
  • 80% of Tasmanian sales went to Tasmanian buyers, only 2% foreign

Tasmania was host to record property sales throughout 2018, with data from the Real Estate Institute of Tasmania showing 11,400 property transactions took place, valued at roughly $4 billion.

A late-year slowdown

However, despite these figures, a slowdown was observable in the latter stages of 2018, with a 9% dip across greater Hobart and a 23% drop in inner-city sales – in statements appearing on ABC News, President of REIT Tony Collidge lays the blame of this slowdown, and the onus of reinvigorating the Tasmanian surge, on the Hobart City Council.

Stock, says Mr Collidge, has dried up, due to new projects being rejected by the Council for ‘spurious’ reasons.

“If councillors decide they don’t want a project in a particular area — even if it complies with the planning scheme — they can reject it and that is totally wrong,” he said.

“There is no clear guidance on height or rules and regulations that govern building in the inner city. The Sunshine Coast has the strictest green planning scheme in Australia, yet it’s easier to build property there than here.”

Contesting these claims is Hobart Lord Mayor Anna Reynolds, stating that the majority of projects are approved without involvement of the Council. The projects they are concerned with are those that attract complaints or test the limits of the planning scheme, rejections only eventuating with good reason.

Looking over the past few years, Ms Reynolds describes 562 multiple-dwelling projects constructed or under construction, a further 148 approved, and only 134 rejected.

A strong, self-sustaining market

Regardless of the cause of this slowdown, it comes at the tail-end of an exceptional year for Tasmania. As noted in a recent report, amid declining larger markets – Melbourne in particular observing a 22% drop throughout 2018 – Tasmania and other states saw increases, buoying the larger economy.

Furthermore, throughout the year, Tasmania saw 181 properties sold for over $1 million – only 33 of these from interstate. 80% of all Tasmanian properties sold in 2018 went to Tasmanian buyers.

Additionally, despite the pervasive fear of outside interest threatening the prospects of Australians in the real estate market, foreign investors represented only 2% of buyers.

“Tasmanians have always been the dominant factor in our market,” said Mr Collidge. “And out of the 20 per cent that went to mainland purchasers, two thirds are people buying to live here. Investors from the mainland only account for 7 per cent to 8 per cent of total sales.”

By maintaining its internal interest – and, depending on who you speak to, increasing stock by alleviating ‘spurious’ project rejections – Tasmania could return to robust form in 2019.

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CoreLogic Data: Over 2018, Melbourne’s clearance rate fell by 22%

Recent data released by CoreLogic puts into tangible terms the significant downturn faced by one of Australia’s largest markets – over the course of 2018, the clearance rate of Melbourne fell by 22%.

Last week, a realestate.com.au report acknowledged the existence of a real estate downturn, but labelled it overblown, suggesting that while some of the country’s larger markets are faltering, consistency among smaller markets is lending brighter hues to the larger picture.

Overly quick predictions and inaccurate figures were labelled as the cause for the exaggeration of the downturn – however, CoreLogic’s recent figures cannot be labelled as such. An undeniable and significant downturn is observable, between the 68.1% clearance rate recorded throughout the final three months of 2017, and the 45.8% rate recorded in 2018’s final three months.

Realestate.com.au report that several big names in real estate have offered explanations for this downturn, ascribing the dip to buyers’ relationships with banks, financial approval proving increasingly time-consuming and fickle.

Australian head of real estate Geoff White and Mortgage Choice chief executive Susan Mitchell each point to the discrepancy between the duration of auction campaigns and home loan assessment periods. Where agents’ campaigns typically last roughly four weeks, the time taken for bank approval, which was previously 10-12 business days, often cannot be completed before auction.

To explain these expanding timelines, Ms Mitchell points to recent increases in the tightness of money-lending.

“According to our network of brokers in Melbourne, the tightened lending environment that developed throughout 2018, and is likely to persist in 2019, has meant that the timeline for loan pre-approvals has lengthened.”

In assessing and confirming factors such as living expenses, Ms Mitchell says, “It is not a matter of providing a ‘guess’ or ‘estimate’ when applying for a home loan; it needs to be factual and exact.”

In an unconditional auction, where a contract of sale is immediate and binding, buyers are reportedly increasingly wary of the bank changing its mind.

The figures resulting from these cautious banks and wary buyers make clear the severity of the slump in Australia’s largest market – also emphasising the resilience of smaller markets, which buoyed the national economy.

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New report shows real estate market downturn is real, but overblown

  • Inaccurate figures and hasty predictions exaggerated the downturn
  • In 2018, Sydney’s market fell by 1.48%, Melbourne by 5.93%
  • Adelaide saw a property price increase of 1.1%

A recent report from realestate.com.au has reflected on the downturn seen throughout 2018, continuing to tug on the market in 2019’s early stages, surmising that Australia is “now in the midst of a housing downturn,” but labelling this slump as “not as bad as widely reported.”

The report attributes this exaggeration to inaccurate figures and overly hasty predictions. According to realestate.com.au, Sydney saw a downturn of 1.48%, while Melbourne dropped by 5.93%, these figures lower than those reported elsewhere.

Throughout 2018, a significant downturn could be observed throughout Australia’s real estate market, particularly in its larger markets – New South Wales and Victoria struggled to creep above 50% clearance rates each week.

Other states exhibited more stability, South Australia in particular often achieving clearance rates in the 60s and 70s range – though larger markets are frequently host to over 1000 scheduled auctions in a week, South Australia often seeing 100 to 150, SA in nonetheless a consistent performer among the country’s middling markets.

Indeed, realestate.com.au ascribes to Adelaide a 1.1% increase in property prices for the past year.

Canberra, Hobart and Brisbane are also reported to be increasing. The ACT kept pace with South Australia for much of 2018, though in the last few months of the year, clearance rates for the territory slumped somewhat, often resting in the 40s.

Tasmania and Queensland, as they appeared in realestate.com.au’s weekly auction results throughout 2018, were fluctuating markets – a small sample size of recorded auction results led to clearance rate that leapt up and down.

However, this report confirms that amid these erratic figures, a general upturn did take place.

Looking to 2019, the report predicts continued but restrained downturn in Sydney and Melbourne – downturn which should be largely abated by consistency in other regions, as in 2018.

With a banking royal commission taking place and a Federal election incoming, the latter half of the year holds uncertainty for all markets, rising and falling, large and small.

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Bank of Mum & Dad Lending Reaches $20b

  • Unregulated Bank of Mum & Dad loans soar to $20 billion
  • Average loan is $88k up from $30k in 2010
  • Bank of Mum & Dad now a top 10 bank, with 60% of first time buyers requesting financial assistance in 2018

While regular financial institutions are making property loans harder to acquire (even rejecting applications for Afterpay, UberEats & Netflix expenses), there is one source of financing that has been willingly accepting any applicant that dares to ask, and the value of loans approved have grown rapidly. Enter, the Bank of Mum & Dad.

According to data from Digital Finance Analytics the Bank of Mum & Dad sector has grown to amass $20 billion dollars worth of completely unregulated loans.

The portfolio is so large, the parental lending sector has a portfolio larger than AMP, HSBC, Heritage Bank & Citi Group.

The Bank of Mum & Dad loan portfolio has grown rapidly since 2010 Source: Digital Financial Analysis

$20 Billion Dollars – Parents Money Unnecessarily At Risk

Jess Stimson – Solicitor at Cartland Law Source: Supplied

Jess Stimson is a solicitor at Cartland Law, a firm specialising in tax & estate planning matters, and whose clients include lawyers, accountants, advisors and businesses, and she told Real Estate News Group that parents were placing themselves under unnecessary risk by not formalising their loans to children.

“If there’s no loan documentation, regardless of who has lent the money, then it’s difficult to enforce your rights. So if there is any kind of dispute, how will you ever prove there was a loan as opposed to a gift?”

“It can also cause family disharmony, as people can become unclear about the terms of the loan. Parents might be of the understanding that the money was loaned on a standard interest rate, whereas the child might believe it was interest free or a gift.”

Stimson says there are a number of common scenarios where parents can lose the entire sum of the loan, cases in which a simple loan agreement would protect them.

“The next big problem is what happens in a divorce or breakup. If the money is given to your child who is already in or subsequently enters a marriage or domestic relationship, then that money may become part of the marital pool of assets if the marriage or relationship breaks down. This means that the spouse or partner will receive the benefit of your loan or gift.”

“Someone you think is just a boyfriend or girlfriend could end up having a claim on your parents loan.”

“Whereas a formalised loan can be called on first to be recovered before the assets are split up. The same applies to bankruptcy – you can hope to call on a loan before other creditors make claims.”

Even After Death – Loans Can Cause Issues, Contested Wills

Stimson also pointed out that issues for parents can continue from the grave, for instance when two or more children have a dispute over how the parent’s estate should be split up when moneys has been loaned to both children and terms are unclear.

“In extreme circumstances, if the parents died and one or both children were given loans, there could be a dispute between the children regarding who received ‘more’ which complicates administration of a deceased estate. A loan agreement gives an objective value of the loan and can be used to settle a dispute or even avoid one altogether, rather than a ‘he said, she said’ argument that can quickly eat away at the estate’s assets in legal fees.”

Parents Can Get “Bank-Like” Debt Security

Stimson says that in the case of large loans, in the realm of hundreds of thousands of dollars, parents should still look to securitise their loans by registering a mortgage on the title.

“By registering the mortgage, you can have the same protections as a bank so that if anything were to ever go wrong, your assets are better protected from losses.”

Not Too Late – Retrospective Loans & Mortgages

Fortunately, parents who have already given loans too their children but haven’t formalised the agreement are not doomed to be at risk forever, and can put protections in place any time after the money has been transferred.

“Loan agreements can also be done retrospectively – we can prepare and sign an acknowledgement of a loan agreement for a loan that was advanced in the past. This gives the parties an opportunity to agree on the ongoing terms of the loan, and means you can mitigate any future risks despite not setting up an arrangement correctly in the first instance.”

“We frequently prepare loan documents and mortgages for clients in circumstances where they wish to support their children or even a friend, but want peace of mind that the money won’t be lost in unfortunate circumstances. The documentation and agreements are quick, easy, and relatively low-cost matters given the size of the risks involved.”

Stimson recommends a consultation to determine what risks you face and options available in order to protect your assets and avoid potential family disharmony.

Visit www.cartlandlaw.com for a free initial consult.

60% of first time buyers sought loans from the Bank of Mum & Dad in 2018, with an average value of $88,000 Source: Digital Financial Analysis
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Big Brands Moving Into Real Estate Sales

For big brands moving into real estate, the business of a sales agency is a great proposition.

From an accounting point of view, there is no cost to acquiring stock to sell, each unit sold usually yields tens of thousands in revenue, your advertising and marketing is paid for by your clients, and your product is in very high demand.

On top of that, your sales arm will often feed leasing management contracts of someone else’s asset into your property management business, which in turn is an asset you can build and sell for a value often multiple times the revenue generated.

Life is good in real estate. At least, that’s what the outside world sees.

Big Players Diving Into Our Pond

But where there’s money to be made, new competitors will always be snapping at your heels to offer some differentiated version of the same product. And if they can’t do it differently, then they can always just offer it cheaper.

And big companies are always looking to create alternative revenue streams, so it’s no surprise that many are opening real estate sales businesses to try to get a piece of the pie.

So let’s take a look at who’s coming to town, and what they’re bringing to the table…

Jims Real Estate

Mr “Jim-of-all-trades” Jim Penman started his career by launching a part-time gardening business while studying his PhD, and launched a full-time mowing business in 1982 with just a $24 investment.

In 1989 he changed from a subcontracting business into a franchise business and in 1994 launched the second franchise, Jim’s Cleaning. The Jim’s Group now has over 50 other divisions with over 3,800 franchisees, including real estate which was launched in 2017.

Easily one of Australia’s most recognisable big brands moving into real estate, Jim’s Real Estate has launched headfirst into the exciting new venture, during one of the most volatile times the industry has seen in years. 

Key Differentiators

  • The Jim’s Group brand is one of the most recognisable global brands, with franchises in Australia, New Zealand, the UK and Canada.
  • Franchisees are able to offer vouchers to clients to use across multiple services, including cleaning and gardening.
  • There is confusion whether franchisees will actually be able to access the Jim’s Group database of clients from other services – but Jamie Byard the Divisional Franchisor at Jim’s says they can service the 160,000 calls they receive a year as a part of the group.
  • The Jim’s Group charges new franchisees a $48,000 territory fee when they start, as well as $1,650 a month in franchise fees ongoing, but agents keep 100% of their fees.

Better Homes And Gardens

The brand behind the TV Show & magazine has launched into the real estate sales game after 90 years of dominating the media industry. 

They claim to have a network of more than 11,500 sales associates and 350 offices, however this claim is a stretch, given that this network is that of the Century 21 brand, owned by Charles Tarbey, who also is a director of the Better Homes & Gardens brand. 

The brand held their launch events across the country in November this year, and joins Domain as another media company announcing a “pivot” in their business model this year.

Key Differentiators

  • The Better Homes & Gardens brand claims a reach of 7.4 million across multiple platforms including TV, print & social media
  • With some of the strongest media connections in the industry, the brand will be able to leverage a strong established presence in the psyche of the high-end property market
  • Charles Tarbey is a well respected and experienced leader within the industry, and can be expected to lead the venture successfully given his experience in both fields

Giorgio Armani & Versace

Easily the biggest 2 of the big brands moving into real estate, are the Armani & Versace empires.

Armani is worth $9 billion and has ventured into the property development world, partnering with Dezer Development, Related Group and Argentine Architect Cesar Pelli to build a 60 story, 260 unit apartment building in Sunny Isles Beach, Florida.

Armani is also working on other developments in the Philippines & Beijing, designing the common areas & residential units.

Versace has built a 360 unit in London called “AYKON Nine Elms” set to be completed in 2020 with views across the Thames & Westminster Palace, with further developments in Beirut and Jeddah.

LJ Hooker’s “Avnu”

One of the big brands moving into real estate is technically already here.

After the failed launch of DIY platform “Settl”, LJ Hooker looked to create a new play in the real estate market with the announcement of “Avnu”, a completely tech-focused firm (however the website gives no indication what tech the firm uses to give a competitive edge).

A press release to Elite Agent says the firm will streamline data processing, contracts and marketing. No mention is made of what technology will directly benefit clients.

Key Differentiators

  • A tech focused firm means Avnu’s value add to agents and agencies will continue to grow and develop
  • The LJ Hooker brand has put vast resources into developing new tech and leading the digital marketing space (including a recent $16m digital advertising spend) indicating a commitment to finding their place in the future of the industry despite tightening advertising rules
  • Avnu agents may be seen to be competing with LJ Hooker agents, and may struggle to integrate with the 90 year old brand
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October brought 2.6% housing finance increase and overall surge

  • Investor loan commitments saw a 0.6% increase, the first since February
  • First-home buyers rose to 18.1% of all loan approvals
  • Loans for newly-built dwellings behind much of the surge

While the real estate sector has weathered a difficult 2018, a look back can often show a silver lining – as is the case here.

The arrival of spring often heralds a swell in Australia’s real estate market, and 2018 is no exception. Housing finance as a whole saw a rise of 2.6% from September – this increase was part of a spring surge comprised of a host of positive figures.

A 0.6% gain can be seen in the nation’s investor loan commitments from September to October, making for an increase from $9.8 billion to $9.9 billion. This is the first time this value has risen since February.

Seeing a more substantial boost was the lending to owner-occupier buyers, which in October rose by 4.8% to a value of $13.9 billion – this figure ignoring the refinancing of existing loans.

Increases to both investor loan commitments and loans to owner-occupier can largely be attributed to loans for recently constructed dwellings.

First-home buyers are the other hero in this period, first-home buyer loans increasing from 8764 in September to 10,137 in October. Subsequently, first-home buyer loans amounted to a total value of $38.5 billion for the twelve months up to October.

This is the highest value seen for such a period in eight years – first-home buyer loans amassed $41.3 billion in the twelve months preceding May 2010.

With auction clearance rates dropping below 50% for many of Australia’s largest markets due to lenders being increasingly hesitant to provide home loans, this spring surge is a welcome sign that the real estate market may be on a positive trajectory regardless.

Figures courtesy of Australian Financial Review

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SA Property Manager Registration Changes: Enough Confusion! Your FAQs Answered Here

South Australia has changed it's property management registration requirements Source: Canva

South Australia’s change of laws around property manager registration has sent the industry into a frenzied freak-out, with training organisations sending out different (and sometimes conflicting) information to the industry, and some accused of “scare mongering”. 

We sat down with Industry Advocate and owner of the South Australian Property Management Community Facebook group, Brett Wheatland, to go over a number of key questions around property manager registrations.

I’m not currently managing Property, only Assisting, do I need to be Licensed ?

Yes, a Property Manager means a person who, for or on behalf of an agent:

(a) grants leases, tenancy agreements or licence agreements in relation to land (whether or not that land is to be used for residential purposes or for the purposes of a business); or
(b) induces or attempts to induce, or makes representations or negotiates with a view to inducing, a person to enter into such leases or agreements; or
(c) ensures compliance with the terms and conditions of such leases or agreements; or
(d) performs a function of a kind prescribed by regulation for the purposes of this paragraph.

and performs any of the functions of a property manager on behalf of the agent.

Ref: Land Agents (Registration of Property Managers and Other Matters) Amendment Act 2017

I currently have my Sales License, do I need to do anything more?

Yes it is likely you will need to upgrade your existing registration to meet the minimum standard outlined by CBS. The following modules are the ones you will need to undertake in addition to your current qualifications:

CPPDSM 4011A –List property for lease
CPPDSM 4013A -Market property for lease
CPPDSM 4016A -Monitor and manage lease or tenancy agreement
CPPDSM 4020A -Present at tribunals

I currently have my full Agency License, does that require any further Training ?

Good news, If you hold a current land agent’s registration no further training is necessary.

I have completed some training in the past, are there specific modules I need recognition for before I apply for my License ?

The following Modules are considered “approved training” and outlined by CBS as follows, and your local RTO maybe able to assist you in determining whether or not you are eligible for Recognised Prior Learning.

CPPDSM 4007A – Identify legal and ethical requirements of property management to complete agency work
CPPDSM 4009B – Interpret legislation to complete agency work
CPPDSM 4010A – Lease property
CPPDSM 4011A – List property for lease
CPPDSM 4013A – Market property for lease
CPPDSM 4015B – Minimise agency and consumer risk
CPPDSM 4016A – Monitor and manage lease or tenancy agreement
CPPDSM 4017A – Negotiate effectively in property transactions
CPPDSM 4020A – Present at tribunals

What is the cut-off date that I need to make an application for my License ?

CBS recommends that you lodge your property manager registration application by 1st August 2019 as you will be required to be fully licensed by the 28th September and you should allow time for processing of your application.

How much will my License Cost?

Your licensed property manager registration will include an application fee of $290.00 and a Pre-Grant fee of $200.00 which means your first year’s application will be $490.00 and will cover you the full year starting from September. Lodging your application earlier will automatically cover you for the period leading up to and including September 2019 to account for the period in advance.

Do I need to have another Police Clearance done?

Your property manager registration for Licensing will require a National Police Certificate (NPC) that is no more than 12 months old.


I am super keen to get my License locked in, when can I apply?

From 1 February 2019 you can apply online at www.sa.gov.au/realestate

For questions regarding your property manager registration requirements, or to book in your further training, contact:
John Morris – Real Estate Training College

Editors Note: Real Estate News Group accepts no liability and gives no warranties or guarantees for the accuracy of this information regarding training, licensing or insurances. Your individual training needs and circumstances may vary and we recommend contacting your local accredited RTO and CBS to confirm your needs.

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