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Businesses are beginning their rebound post-COVID-19 despite Victoria’s second wave of infections, while brokers have gotten a glimpse of what their new best interests duty to consumers will look like: Here are the biggest property stories from this week.
Welcome to REB’s weekly round-up of the headline stories and news that’s important not only for the real estate sector, but also for the state of property in Australia more broadly.
To compile this list, not only are we taking a look at the week’s most read stories and the news that matters to you, but we are also curating it to include stories from our sister platforms that could have an impact on the Australian property landscape.
1. Perth agency fined for forgotten bonds
An “administrative oversight” which saw a Perth real estate agency fail to lodge a number of security bonds for up to three months has led to $5,000 worth of fines.
MI Real Estate Pty Ltd, trading as Soco Realty, had accepted three security bonds from tenants but failed to lodge them as soon as practicable, or within the required 14 days.
2. ‘Optimistic attitude’ sees results for Raine & Horne
A combination of instilling an optimistic attitude and utilisation of technology available has paid off in spades for the team at Raine & Horne in the New England region: Raine & Horne Armidale | Glen Innes has managed to sell several properties “sight unseen” in May and within two weeks of listing.
3. Agents spill on why now is the time to sell
Ray White Group managing director Dan White has said it’s important to understand that the real estate industry has remained very active despite restrictions starting two to three months ago: “During April and May, we served nearly 9,000 Australian families and businesses, representing over $4.4 billion of property. We also conducted 1,025 online auctions, with a better auction day clearance rate than the same months last year.”
4. What’s in store for the property market post-COVID-19?
It is unlikely that the Australian property market will sustain any long-term falls due to a combination of migration, foreign investment and government intervention, writes David Hancock. Many markets across Australia also have low supply, with demand likely to continue to grow.
5. Beware building for the sake of free money
First home buyers have been warned not to dive into a property purchase for the sake of government grants without properly considering the future return on that investment, a property investment consultancy has flagged.
6. Regional areas the real winners of COVID-19
There’s been a notable surge in demand across many Australian regions: Real Estate Buyers Agents Association (REBAA) has highlighted how buyer’s agents are witnessing “a steady surge in regional property markets” for both investors and owner-occupiers, despite the COVID-19-driven downturn.
According to president Cate Bakos, the demand is being partly driven by young families, relocating workers and retirees who are looking to optimise their superannuation savings.
The corporate regulator has published long-awaited guidance concerning the application of the best interests duty on mortgage brokers.
ASIC’s high-level, principles-based guidance seeks to outline obligations under the Financial Sector Reform (Hayne Royal Commission Response – Protecting Consumers [2019 Measures]) Bill 2019, but does not prescribe minimum standards of conduct, nor impose new or additional obligations.
8. Bank to reject HomeBuilder-dependent applications
Adelaide Bank will not consider applications for its Connective Select white label product from borrowers depending on the federal government’s $25,000 HomeBuilder grant to complete a renovation or construction project — and if the HomeBuilder grant has been disclosed but will not form part of the funds needed to complete a project, then conditional or formal approval would exclude considerations of the $25,000 grant.
9. Pay off your house in 5 years v 25 years
While words like hustle, management, delegation and vision are easy to say, there’s no doubt they’re best learnt through hard work, experience and increased responsibility, writes Dan Argent.
ABOUT THE AUTHOR
Grace Ormsby
Grace is a journalist across Momentum property and investment brands. Grace joined Momentum Media in 2018, bringing with her a Bachelor of Laws and a Bachelor of Communication (Journalism) from the University of Newcastle. She’s passionate about delivering easy to digest information and content relevant to her key audiences and stakeholders.
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