Latest news with #RealEstateInstituteofVictoria
The Age
5 days ago
- Business
- The Age
Victorian underquoting laws: Expert calls on Allan government to release review
The Victorian Greens said they would this week introduce a bill to parliament requiring the reserve price of a property to be disclosed before auction day, in a bid to stop buyers unwittingly forking out thousands of dollars on inspection reports for homes they can't realistically afford. The REIV is calling on the government to start fresh consultation on how to improve fairness in the property sector. The peak real estate lobby group is also now backing mandatory pre-auction disclosure of reserve prices by sellers, in a significant policy pivot announced on Monday. Premier Jacinta Allan earlier this month. Credit: Eddie Jim 'Reserve price disclosure isn't just backed by consumer advocates, even the Real Estate Institute of Victoria and leading property industry figures support it,' said Greens public and affordable housing spokeswoman Gabrielle de Vietri. 'With the public and industry on board, Labor has no excuse to delay.' Premier Jacinta Allan said she would seek advice on that proposal and also the merits of a model that would result in those selling their home providing prospective buyers with a free pest and building inspection documents. 'We are open to looking at what we can do to make the property market fairer for everyone,' Allan said. She described underquoting as a 'pretty shabby practice, which is why we're cracking down on it and made it illegal'. Enzo Raimondo, pictured in 2014 when he led the REIV. Credit: Fairfax Raimondo said he couldn't disclose the recommendations made by him and his property market review co-author, consumer advocate Carolyn Bond, due to a confidentiality agreement. But he confirmed the 2022 report did include recommendations he believed would reduce the prevalence of underquoting. 'We spent months on it. We interviewed consumers, we interviewed industry groups, we interviewed agents, and there's some, I think, excellent recommendations on the issue of reserve price [disclosure],' he said. 'It's odd that the review, which is meant to assist, hasn't been released … I can only speak for myself and not the other panel members, but I was certainly disappointed that it wasn't released and at least debated openly on what should occur.' When asked if there was any reason not to make the report public, Allan said the report was a cabinet document, and she was more focused on 'acting now, leading the nation in cracking down on illegal underquoting'. Raimondo said the review received fairly consistent feedback from the public that agents were providing price guides that were off the mark. He said while agents would use the excuse that they're not property valuers, they generally worked in the same sector for a long period and should know their market. The use of three comparable properties to justify price guides was being manipulated by agents and the criteria around this needed to be tightened up, Raimondo said. 'In Victoria, it's not a bad system. It's just that it's not being used correctly,' he said. Start the day with a summary of the day's most important and interesting stories, analysis and insights. Sign up for our Morning Edition newsletter.
Sydney Morning Herald
5 days ago
- Business
- Sydney Morning Herald
Victorian underquoting laws: Expert calls on Allan government to release review
The Victorian Greens said they would this week introduce a bill to parliament requiring the reserve price of a property to be disclosed before auction day, in a bid to stop buyers unwittingly forking out thousands of dollars on inspection reports for homes they can't realistically afford. The REIV is calling on the government to start fresh consultation on how to improve fairness in the property sector. The peak real estate lobby group is also now backing mandatory pre-auction disclosure of reserve prices by sellers, in a significant policy pivot announced on Monday. Premier Jacinta Allan earlier this month. Credit: Eddie Jim 'Reserve price disclosure isn't just backed by consumer advocates, even the Real Estate Institute of Victoria and leading property industry figures support it,' said Greens public and affordable housing spokeswoman Gabrielle de Vietri. 'With the public and industry on board, Labor has no excuse to delay.' Premier Jacinta Allan said she would seek advice on that proposal and also the merits of a model that would result in those selling their home providing prospective buyers with a free pest and building inspection documents. 'We are open to looking at what we can do to make the property market fairer for everyone,' Allan said. She described underquoting as a 'pretty shabby practice, which is why we're cracking down on it and made it illegal'. Enzo Raimondo, pictured in 2014 when he led the REIV. Credit: Fairfax Raimondo said he couldn't disclose the recommendations made by him and his property market review co-author, consumer advocate Carolyn Bond, due to a confidentiality agreement. But he confirmed the 2022 report did include recommendations he believed would reduce the prevalence of underquoting. 'We spent months on it. We interviewed consumers, we interviewed industry groups, we interviewed agents, and there's some, I think, excellent recommendations on the issue of reserve price [disclosure],' he said. 'It's odd that the review, which is meant to assist, hasn't been released … I can only speak for myself and not the other panel members, but I was certainly disappointed that it wasn't released and at least debated openly on what should occur.' When asked if there was any reason not to make the report public, Allan said the report was a cabinet document, and she was more focused on 'acting now, leading the nation in cracking down on illegal underquoting'. Raimondo said the review received fairly consistent feedback from the public that agents were providing price guides that were off the mark. He said while agents would use the excuse that they're not property valuers, they generally worked in the same sector for a long period and should know their market. The use of three comparable properties to justify price guides was being manipulated by agents and the criteria around this needed to be tightened up, Raimondo said. 'In Victoria, it's not a bad system. It's just that it's not being used correctly,' he said. Start the day with a summary of the day's most important and interesting stories, analysis and insights. Sign up for our Morning Edition newsletter.
News.com.au
23-04-2025
- Business
- News.com.au
Home owners corporation fees: Victorians to get help to deal on payment plans, disputes as costs rise
Victorians struggling to pay owners corporation fees will be given advice on payment plans and dispute resolution as part of new mandatory fee notices. It comes after real estate agents across Melbourne's CBD and inner suburbs revealed significant numbers of apartment owners and landlords have been forced to sell in recent years as they grapple with rising owners corporation and other costs in recent years. The rising costs are also thought to have underpinned significant rental increases that have hit Melbourne's CBD, with latest PropTrack data showing the typical unit in the city now costs $650 a week — compared to just $380 a week in 2022. 'Disgust': Boomers unleash on crying Aussies Consumer Affairs minister Nick Staikos announced the new requirement for operators of owners corporations this week alongside the availability of an owners corporation hotline. Mr Staikos said the goal was to ensure owners got the advice and support they needed. 'These new owners corporation fee notices will ensure they get helpful advice and support about their options if they're struggling to pay their fees – not just a demand to pay up,' he said. The new notices will replace older forms to notify owners of overdue OC fees, with past formats no longer valid from this week. But, with the moves coming amid a wider state government push for more high-rise homes in Melbourne, Real Estate Institute of Victoria chief executive Kelly Ryan said more needed to be done around virtually 'unregulated' owners corporations in Victoria. 'It's always important to find ways to support people, we don't want to see people selling because the costs are too onerous,' Ms Ryan said. 'But that there's a problem at the end with the owner is a sign that there's a problem at the start with the owner's corporation. If we have got to that point where owners are getting payment plans, you have to go back a number of steps. 'If we are encouraging high-rise building in more locations, we need to get this right now. There's no point playing catch up.' Strata Community Association of Victoria general manager Susan Chandler said there were about 1.27 million people living with an owners corporation around the state and welcomed the new phone channel announcement as a 'practical step' in making them better understood. 'For many residents, especially first-time apartment owners, navigating strata rules can be overwhelming,' Ms Chandler said. 'A dedicated helpline provides a much-needed support bridge between communities and the government.' She added that payment plan options would help reduce the risk of buildings being left short by unpaid strata fees, improving the 'financial health' of many strata comunities — though they are still calling for the creation of a Victorian Strata Commissioner. Ray White Southbank principal Andrew Salvo said in recent years rising owners corporation fees adding close to $1000 a year to a typical two-bedroom apartment's annual costs — as well as interest rates and additional landlord costs in the form of meeting new rental minimum standards — had combined to drive sales in the CBD's apartment market. 'And it has led to rents rising as there were investors leaving the market and there was a supply issue with migration increasing,' Mr Salvo said. The agent said that in many cases the rising cost of owners corporation fees had been due to contracts being Consumer Price Index (CPI) linked, meaning a high-inflation environment had driven fees up. While payment plans for OC fees could give some owners an option, Mr Salvo said he didn't think it would have much of an impact given the significance of other costs around rental protections and interest rates. website or by calling 1300 558 181.
