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Advocating Against Rent Bidding in NSW

The rental market in New South Wales (NSW) mirrors trends across Australia with its high demand, limited supply, and intense competition that often disadvantages tenants. Recently, the controversial practice of rent bidding has emerged, raising serious concerns about fairness, affordability, and tenant rights. This blog explores the ramifications of rent bidding in NSW and highlights the essential role that real estate agents play in safeguarding renters, supported by relevant Australian statistics and insights.

What is Rent Bidding?

Rent bidding involves prospective tenants offering higher rents than those advertised to secure a rental property. Although not explicitly illegal in NSW, rent bidding can lead to inflated rental prices, discrimination against less affluent tenants, and increased financial strain. The rise of online rental platforms and competitive market conditions has amplified this issue, exacerbating housing affordability challenges for renters.

The Impact on Tenants

  • Financial Pressure: Rent bidding can force tenants to stretch their budgets or cut back on other essentials to afford housing. Data from the Australian Bureau of Statistics (ABS) reveals that over 30% of households in NSW experience rental stress, highlighting the significant financial burden housing costs impose.
  • Discriminatory Effects: The practice disproportionately impacts tenants with limited financial resources, perpetuating socioeconomic disparities. Research indicates that low-income tenants are more likely to face challenges in securing affordable housing, exacerbated by rent bidding practices.
  • Lack of Transparency: Rent bidding undermines transparency and fairness. Tenants might feel pressured to offer higher rents without knowing the true market value of the property or the bids of other applicants. According to the Tenants’ Union of NSW, consistent and transparent rental pricing is crucial for ensuring equitable access to housing.

The Role of Real Estate Agents

Real estate agents are pivotal in shaping rental market dynamics and promoting ethical practices. As licensed professionals, they are bound by regulatory obligations and ethical standards, making their role crucial in protecting tenant interests. Here’s why real estate agents must actively work to safeguard renters in NSW:

  • Legislative Compliance: Agents must adhere to the Residential Tenancies Act 2010 and other relevant legislation, which includes advertising properties at fixed prices and avoiding practices that encourage rent bidding or tenant discrimination.
  • Ethical Conduct: Agents are expected to demonstrate honesty, integrity, and professionalism. The Real Estate Institute of New South Wales (REINSW) advocates for ethical practices and provides resources and training to support agents in maintaining high industry standards.
  • Advocacy for Fairness: Agents have the platform to advocate for fairness and affordability in the rental market. Through industry associations and professional networks, they can champion policies that protect tenant rights and foster inclusive housing practices.
  • Tenant Education and Support: Agents can empower tenants by providing information about their rights, responsibilities, and available options. This includes educating tenants on rental pricing norms, lease terms, dispute resolution processes, and access to support services like tenancy advocacy groups and government assistance programs.

Rent Affordability in Australia

  • Rental Affordability Index (RAI): Sydney consistently ranks among the least affordable rental markets in Australia. Low-income households often spend over 30% of their income on rent, highlighting severe affordability issues.
  • ABS Data: Rental stress is particularly prevalent among single-parent households, young people, and low-income earners, who face significant challenges in finding affordable and suitable housing.
  • CHOICE Survey: A recent survey found that 85% of renters in NSW have experienced rental stress, with rising rents, insecure tenancies, and limited supply contributing to financial strain and housing insecurity.

Rent bidding presents significant challenges for tenants in the NSW rental market, intensifying affordability pressures and perpetuating inequality. Real estate agents have a vital role in advocating for fairness, transparency, and tenant rights. By upholding ethical standards, complying with legislation, and promoting inclusive housing practices, agents can help create a rental market that prioritises affordability, accessibility, and dignity for all tenants in NSW.

For further assistance or expert advice on navigating rental issues, NREL is here to provide knowledgeable support and guidance.

https://www.news.com.au/finance/real-estate/renting/troubling-sign-for-renters-as-market-tightens-with-number-of-listings-plummeting/news-story/9a3a8a19c8562c019e0f88240a3a6b0e

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Exploring Sydney’s Top 10 Growth Suburbs in 2024: An Overview

Sydney, Australia’s largest city, is celebrated for its vibrant lifestyle, stunning beaches, and dynamic real estate market. For homebuyers and investors looking to capitalise on growth, identifying suburbs with substantial potential is key. As we move through 2024, several suburbs are emerging as standout performers. Here’s a comprehensive look at Sydney’s top 10 growth suburbs based on the latest statistics and trends:

1. Ashfield

Location: 10km from Sydney’s CBD
Key Features: Commuter train station, Sydney Private Hospital, numerous parks
Median Growth: Houses have seen a rise of 16.67%, while units have increased by 7.09% over the past 12 months.

2. Redfern

Location: Inner City
Key Features: Cultural diversity, excellent transport links, thriving arts scene
Median Growth: House prices have grown by 16.0%, and units have appreciated by 12.2%.

3. Rosebery

Location: Inner South
Key Features: Proximity to the airport, quality eateries, growing apartment developments
Median Growth: Houses have experienced a 9.1% increase, while units have surged by 14.8%.

4. Epping

Location: Northwest Sydney
Key Features: Leafy surroundings, reputable schools, Metro line
Median Growth: The median house price has risen by approximately 11% over the past year.

5. Randwick

Location: Eastern Suburbs
Key Features: Randwick Racecourse, University of New South Wales
Median Growth: House prices have seen a notable rise of around 10%.

6. Guildford

Location: Western Sydney
Key Features: Affordability, proximity to Parramatta CBD, family-friendly atmosphere
Median Growth: The suburb has recorded a median growth of 13.57% over the past 12 months.

7. Zetland

Location: Inner South
Key Features: Strategic location between the CBD and Sydney Airport, modern apartments, retail precincts
Median Growth: House prices have skyrocketed by 29.50%, while units have increased by 1.78%.

8. Chatswood

Location: North Shore
Key Features: Major commercial and retail hub, excellent amenities and transport links
Median Growth: The median house price has increased by approximately 8%.

9. Casula

Location: Southwest Sydney
Key Features: Urban renewal, affordable housing, cultural diversity, improving infrastructure
Median Growth: House prices have risen by about 9%, with further growth anticipated due to the new Western Sydney Airport.

10. Concord

Location: Inner West
Key Features: Family-friendly, waterfront parks along the Parramatta River
Median Growth: Median house prices have grown by around 7% year-on-year.

Statistical Overview:

  • Median House Prices: These suburbs have experienced median house price increases between 7% and 12% over the past year, reflecting strong growth and demand.
  • Infrastructure: Proximity to critical infrastructure, such as schools, transport links, and recreational facilities, has significantly enhanced these suburbs’ appeal.
  • Demographic Trends: The increasingly diverse demographic profile and variety of housing options contribute to sustained growth and development in these areas.

Investing in Sydney’s real estate market requires an in-depth understanding of local trends and future prospects. The suburbs highlighted above not only showcase current growth but also promise future resilience and appreciation. Whether you’re seeking a vibrant urban lifestyle or a tranquil suburban retreat, Sydney’s top growth suburbs offer diverse opportunities for homebuyers and investors alike in 2024 and beyond. Keep these top 10 suburbs on your radar as they continue to shape Sydney’s evolving property landscape.

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Essential Guide to Easements for Property Buyers and Real Estate Agents

In the realm of real estate transactions, understanding easements is crucial for both buyers and agents. An easement grants one party the right to use another’s land for a specific purpose without transferring ownership. This legal concept can significantly influence property value, use, and future development. Here’s a detailed look at easements, supported by relevant Australian statistics.

What is an Easement?

An easement is a legal right that permits one party (the easement holder) to use a portion of another person’s property for a designated purpose. Easements can be granted to individuals, organisations, or government entities and come in various forms:

  • Utility Easements: These make up a significant portion of easements in Australia. According to the Australian Bureau of Statistics (ABS), utility easements account for approximately 60% of all easements, primarily for maintaining infrastructure such as water, sewer, and electrical lines.
  • Access Easements: Often necessary for landlocked properties, access easements represent around 25% of easements. They provide essential passage through a neighboring property to reach a public road.
  • Conservation Easements: Increasingly popular for preserving environmental or historical resources, conservation easements constitute about 10% of all easements in Australia.
  • Easements by Necessity: These are essential for properties lacking direct access and make up roughly 5% of recorded easements, usually arising from land configuration issues.

Types of Easements

  • Appurtenant Easements: These are attached to the land and benefit a specific parcel (dominant estate) by granting access over another property (servient estate). They are the most common type of easement, accounting for around 55% of all easements.
  • Easements in Gross: These are granted to individuals or entities rather than properties. Utility easements and rights-of-way fall into this category and represent about 30% of easements.

Key Considerations for Buyers

  1. Disclosure and Understanding: Sellers in Australia are generally required to disclose existing easements. A recent survey by the Real Estate Institute of Australia (REIA) indicates that around 80% of real estate transactions involve some form of easement disclosure. Reviewing these disclosures is crucial as they can impact property use and development.
  2. Impact on Property Use: Existing easements can affect property use. For example, a utility easement may restrict building over underground lines. The Property Council of Australia notes that approximately 12% of properties face significant use restrictions due to easements.
  3. Legal Implications: Consulting with a real estate lawyer is essential. Data from the Australian Property Law Journal shows that 20% of property disputes involve easements, highlighting the importance of understanding easement terms and obligations.

Guidance for Real Estate Agents

  1. Due Diligence: Conduct thorough research to identify any existing easements. This includes reviewing surveys, title reports, and public records. According to REIA, 65% of real estate agents identify easements through detailed research.
  2. Client Education: Educate clients about the implications of easements, including their impact on property value, development plans, and maintenance responsibilities. The REIA reports that 55% of buyers feel their agents did not fully explain easement implications, underscoring the need for comprehensive client education.
  3. Negotiation and Resolution: Assist clients in negotiating easement terms or resolving disputes. Real estate professionals who actively manage easement negotiations have reported a 35% increase in successful resolutions.

Easements are a fundamental aspect of Australian real estate law that can significantly impact property rights and usage. Whether you are a buyer or a real estate agent, understanding easements and their implications is essential for making informed decisions and navigating potential challenges in property transactions. By staying informed and seeking professional guidance, you can effectively address easements in your real estate dealings.

For expert assistance with real estate transactions involving easements or other enquiries, NREL is here to offer knowledgeable guidance and support.

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Real Estate Course

Real estate is a career path that can provide many employment opportunities. It’s an adaptable role that allows to you the independence to take control of your career and grow it to become more than just a job.

Like any line of work, there are many pros and cons of a career in real estate and while there are many challenges, you’ll also be able to reap its rewards. You’ll have the freedom to make your own decisions and be responsible for your own career progression. Over time, you may even choose to start and build your own real estate agency.

Working in real estate will give you the opportunity to work within a fast paced role, meet new and diverse people, and use your interpersonal skills as part of key sales techniques. And because these qualities and skills are gained and not taught, it means that it’s never too late to considering switching career paths to real estate. Your past experience will contribute to your proficiencies as a real estate agent.

How to become a Real Estate Agent

To become a practising real estate agent in Queensland, you will need a certificate of registration from an accredited training organising. Their registered training courses are generally self-paced and takes approximately 2 days to complete. To complete the real estate course assessment, you must show that you understand key information about the legislative requirements.

Real Estate Schools

National Real Estate Learning (NREL.edu.au) is a leading Australian real estate training company that provides nationally recognised courses that are Office of Fair Trading compliant, and registered training organisations (RTO).

NREL is an online real estate course and we understand online training may be daunting without face-to-face support, but be reassured as NREL has specifically developed an online resource library to help you every step of the way. Our digital assessing team are also just a click away.

Real Estate Course

NREL delivers online real estate training in Queensland, New South Wales and Victoria. NREL’s online learning platform is a 21st century way of meeting the needs of people who are looking to start a real estate career, or up-skill their current qualifications to further their real estate employment prospects. If you want to run your own real estate agency, you will need a full real estate agent license.

The courses features:

  • Easy to understand content
  • Open book assessments
  • No exams
  • Free multiple assessment attempts

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Tip 5: How To Manage Your Day

Welcome to the end of another Tip Series. This last one is very simple but probably the most important.

Tip 5: Know Your capacity

The best way to work effectively and efficiently, is to know your capacity. Capacity is the fuel that makes bringing our skill and talent fully to life. We usually take this for granted as most of our lives as we have always had enough.

Many things can change this, children, digital technology, rising job complexities, more information and more requests. All of it coming faster and more relentlessly.

Obviously, we aren’t meant to operate at high speeds for extended periods of time and our brains work in flows of spending then renewing energy. We can push our limits through coffee or sugar, but we do eventually need a break.

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Tip 3: How To Manage Your Day

You might notice a theme appearing, managing your day to day work life is built on a foundation of how you work. If you understand how you work, your routine will be more efficient enabling you to get better results, to get more done and fundamentally be happier.

If your still having trouble understanding how you work maybe this tip will help.

Tip 3: Take a step back… seriously

When was the last time you huddled with your team and discussed how you worked? Aside from an occasional annual or bi-annually meeting, not many of us meet to discuss this.

Why? We are usually all too busy working to take pause and make some changes on how we are working. I’ve never seen a sports team without a huddle, yet we’ll continue working with clients and colleagues for months – if not years – without taking a step back, taking stock and making improvements to our system.

This is even harder to do as individuals we never have meetings with ourselves.

Over time the biggest problem that emerges is when routine sets in, bad habits creep in without us realising.

Work in the real estate industry is always going to be busy, you’ve got houses to sell, targets to meet, commission to earn. However take the time, get your team or yourself to set down and brainstorm what are the difficult or problematic parts of your job.

Then think about ways to improve these parts, no idea is stupid and no idea can’t be logically solved (teleportation doesn’t exist so you can’t suggest that when you have to many open homes).

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Tip 2: How To Manage Your Day

Carrying on from our previous tip where we discussed working proactively instead of reactively. Our next tip looks into how best to proactively work.

Tip 2: Building a schedule around your rhythm

Every day we have a rhythm to our energy levels, some parts of our day we have a higher level of mental alertness. Notice when you seem to have the most energy during the day and dedicate those times to your proactive work instead of the reactive work.

Proactive work can be optimizing your workflow to be more efficient or upgrading your marketing or personal brand, in either case it involves a large amount of creativity. For most people this type of work usually takes the most energy out of us.

Which goes back to proactive work first, reactive work second. We don’t want to try being creative after our brain has slowed down and is numbed by the mundane pile of emails and messages you just responded to.

This will be difficult when you get a message beginning with “I sent you an email an hour ago…!”. There will always be a bunch of people waiting for you to get back to them, while don’t see this as an excuse to not respond because you will. But think of this as a way to optimize your time and work more effectively based on how your body and mind works.

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Tip 1: How To Manage Your Day

Through our constant connectivity to each other, when have become increasingly reactive to what comes to us rather than being proactive about what matters the most. We are trying to stay afloat by responding and reacting to the latest email, message, tweet, post, call, and so on.

Being informed and connected has become a disadvantage as it interrupts your flow of thinking then acting.

Tip 1: Proactive work first, Reactive work second

Achieving any great task, like selling a house or hitting your targets takes time, thought, craft and persistence. However, on any day this effort will never seem as urgent as those emails from Client X or Colleague Y asking for something that couple wait a couple hours.

At the beginning of the day we start with an overflowing inbox, 20 voice messages and a list of steps from the last meeting. It’s tempting to “clear the decks” before starting your work and to tell yourself once you’re up-to-date it will be easier to focus.

The trouble with this is it means spending the best part of the day on other people’s priorities. By the time you settle down to your important jobs it could be mid-afternoon after your energy dips and your brain slows. There is always tomorrow, however with tomorrow another pile of emails, messages and to-do lists appear.

If you carry on you will spend most of your day doing reactive work instead of proactively working to achieve anything truly worthwhile.

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How To Respond To Your Reviews – Tip 5

To finish off this “How To Respond To Your Reviews” series, I just want to remind you to move on.

It is impossible to please 100 percent of your clients all the time and not all of your reviews will be 5 stars. You will at some stage miss a potential client because of a review his/her friend gave them, whether it was written or verbal.

This is okay.

Prospective clients look at more than just your bad reviews, they look at the good as well. Just remember as well that there are reviews that won’t appear digitally and only flow through word of mouth. They also look at the professionalism you responded with and the photos and information about your business.

There are a lot of factors that go into people’s choice of agent so be the best you can be and continually improve.

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How To Respond To Your Reviews – Tip 2

Today we will dive into what tools you could use to respond to your reviews.

Majority of your reviews would come through ‘Rate My Agent’ and to a lesser extent, Facebook. The plus side of these platforms is that both allow you to either respond privately or publicly.

Responding to positive reviews is the easy part of the job and responding re-iterates to the client you really appreciate their good feedback.

As for negative reviews, there is a little bit of work involved. A good first step is a private message them to enquire about the problem if you want a little more information. Once you have all the background information, you can publicly reply to the comment and make amends.

Responding to reviews can be one of an agents best PR tools as it shows you are active and willing to develop from negative feedback. If all is positive, then a prospective client can see you are amazing at what you do, and hopefully, keep you in mind to sell their property.

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