{"id":2870,"date":"2022-06-22T05:31:31","date_gmt":"2022-06-22T05:31:31","guid":{"rendered":"https:\/\/royabhishek.in\/urbanbuyer\/bases-loaded-for-big-hitting-new-reiv-president\/"},"modified":"2022-06-22T05:31:31","modified_gmt":"2022-06-22T05:31:31","slug":"bases-loaded-for-big-hitting-new-reiv-president","status":"publish","type":"post","link":"https:\/\/royabhishek.in\/urbanbuyer\/bases-loaded-for-big-hitting-new-reiv-president\/","title":{"rendered":"Bases loaded for big-hitting new REIV president"},"content":{"rendered":"

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<\/p>\n

The current Real Estate Institute of Victoria president took over at an interesting time for the state’s peak representative real estate body, and for the Victorian property market.<\/p>\n

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Stepping up to the plate as the voice of Victoria\u2019s property industry, baseball enthusiast and newly elected Real Estate Institute of Victoria (REIV) president, Richard Simpson, has home runs firmly in sight for his role, despite government policy bases being loaded with challenges and a market consistently pitching curve balls.<\/p>\n

Richard Simpson\u2019s predecessor Adam Docking exited the REIV building under a cloud<\/a> just six months into his tenure. It\u2019s a bump in the road already in Simpson\u2019s rear-view mirror, as he looks to represent the organisation\u2019s 5,000 strong membership and maintain pressure on the state government to deliver sound policy.<\/p>\n

\u201cMy role is to be the spokesperson for the industry in Victoria, and I\u2019ll continue that role, but also continue to work with government to make the property industry and profession easier to work in for all parties,\u201d Mr Simpson told Australian Property Investor Magazine<\/em>.<\/p>\n

The fifth-generation estate agent and partner of family business W. B. Simpson and Sons started his professional life studying to be a chartered accountant, completing a Bachelor of Business (Property) at RMIT, specialising in the Valuation Stream to complement a Bachelor of Commerce degree from Melbourne University in 1988.<\/p>\n

He then spent 10 years as a chartered accountant with KPMG as a senior manager specialising in property, banking and finance.<\/p>\n

He\u2019s not new to REIV, having served since 2015 as a director and previously as the Commercial and Industrial Chapter Committee Chair, as well as the presidency in 2017-2018. His current presidency ends in October 2022.<\/p>\n

Ten recommendations<\/strong><\/p>\n

Speaking to API Magazine<\/em> about keeping up the good fight on important issues such as abolishing stamp duty and housing affordability, Mr Simpson offered insights into the pandemic\u2019s impact on Victoria\u2019s property landscape over the past few years.<\/p>\n

\u201cThere are definitely different challenges for the industry as a whole now, so with the rising interest rate environment<\/a> and different challenges in the market as it starts to slow down a little bit, there remains a lot of work to be done with government on a lot of issues,\u201d he said.<\/p>\n

\u201cFor example, we\u2019ve recently had a property market review and we\u2019re waiting for the results of that from the government and how that will be implemented.<\/p>\n

\u201cMy understanding is it will most likely form the basis of the government\u2019s real estate policy going into the election and if the government\u2019s returned, they\u2019ll be legislated.\u201d<\/p>\n

Ten recommendations put forward by REIV include evidence-based pricing for all residential properties and a review of the Residential Tenancies Act<\/em> to address housing availability issues.<\/p>\n

\u201cHousing affordability is extremely important across Australia, not just in Victoria<\/a>, so it\u2019s something we\u2019re pushing the government on.<\/p>\n

\u201cThere needs to be more social housing provided,\u201d Mr Simpson said.<\/p>\n

\u201cOnce migrants start coming in and people come in to fill the positions that are really needed, then demand for housing is going to be strained.<\/p>\n

\u201cIt really is a supply side issue – there needs to be more homes built and it\u2019s something we\u2019re pushing the government hard on.\u201d<\/p>\n

Stamp duty reform needed<\/strong><\/p>\n

REIV also recommended to the market review to address the issue of stamp duty.<\/p>\n

Mr Simpson says stamp duty tax reform seen in NSW<\/a> this week will raise the stakes for treasurers around Australia.<\/p>\n

\u201cI think it\u2019s going to put some pressure on other treasurers to move away from stamp duty, which is a really inefficient tax that prevents people from moving, and towards freeing up supply in the market.<\/p>\n

\u201cYou don\u2019t want all the states go off and do different things – it really needs a national focus and a national policy<\/a> to be able to abolish stamp duty because the states are going to need assistance from the federal government to make up the shortfall in their revenues if they abolish stamp duty,\u201d he said.<\/p>\n

\u201cThe government in Victoria is taking enormous amounts of stamp duty but not reinvesting into social housing or supply.<\/p>\n

\u201cProperty taxes make up 48 per cent of all taxes in Victoria so that\u2019s stamp duty, land tax and other property taxes; its enormous and this government\u2019s put in 14 or 15 new taxes on property.\u201d<\/p>\n

Population shift<\/strong><\/p>\n

The Victorian property market also endured world record lockdowns, giving rise to major shifts in buyer behaviour.<\/p>\n

\u201cThere\u2019s been a change in the way the world functions because of covid.<\/p>\n

\u201cWe saw a lot of new trends come in, including working from home.<\/p>\n

\u201cWhat we\u2019ve seen is people moved away from a centralised model, moved away from the city.<\/p>\n

\u201cBecause people now are able to work from home, they\u2019re demanding larger accommodation.\u201d<\/p>\n

Mr Simpson said buyers are reassessing and working from home in your bedroom is not desirable anymore, causing an exponential demand for three-bedroom houses with a study and a yard.<\/p>\n

\u201cWe\u2019ve seen a flight to the country<\/a> and to sea change, they\u2019ve said, \u2018I\u2019ll go and buy a house in the country and work at home two days and come to the city two days, and I don\u2019t mind travelling two hours on the train for two days a week, but I wouldn\u2019t do that for five days a week.\u201d<\/p>\n

Pre-pandemic, Victoria\u2019s population was growing by 150,000 people a year and 120,000 of those were moving into Melbourne.<\/p>\n

\u201cWe had the tightest or most restrictive covid rules of any state and that really upset a lot of people and they left.<\/p>\n

\u201cA lot of people I know went to outback NSW or rural NSW or up to Queensland and just had a complete change of lifestyle, so there\u2019s been a big shift.\u201d<\/p>\n

For Victorian property managers represented by REIV, the covid road has been long and arduous.<\/p>\n

\u201cA lot of real estate agents left the industry, a lot of businesses just thought it was too hard and just closed up, so there\u2019s a real shortage of real estate professionals in Victoria and in fact across Australia at the moment and it\u2019s difficult to get people, as it is in all occupations,\u201d Mr Simpson explained.<\/p>\n

A lot of investors got out of the property market too.<\/p>\n

\u201cIt became more difficult to deal with tenants and there were changes in residential legislation in Victoria that made it more difficult for landlords, so a lot left the industry and sold up and those houses went to first-home buyers and the like.\u201d<\/p>\n

While caution around interest rates and cost of living increases is slowing auction rates, seeing 1,000 auctions a week for the first six months of this year was not unusual.<\/p>\n

\u201cA thousand a week used to be called the Super Saturday, but for the first half of 2022, that was just a normal Saturday.\u201d<\/p>\n

Mr Simpson\u2019s puts his own in weathering the storms of the last few years down to a family business heritage rooted in a strong, reputable, ethical and progressive firm.<\/p>\n

\u201cWhat keeps us going through it all is our willingness to adopt new technologies as quickly as possible to help our clients and our tenants but also being on top of the regulations, the changes that were happening in the real estate industry throughout covid and the like, which helped us a lot.<\/p>\n

\u201cI really put it down to the people that we have in our business too, and how loyal and dedicated they\u2019ve been over the years.\u201d<\/p>\n

Outside of his numerous roles at the most senior levels of Victoria\u2019s property industry, Mr Simpson is a keen baseball player turning out in winter for Melbourne University and in the summer for the Malvern<\/a> Braves.<\/p>\n

He\u2019s cheered on at the sidelines by his wife Kirsten and their young daughter, Annabel, and son, Lachlan, who may one day carry on the mantle of the family business that has operated since 1872.<\/p>\n

At least for Richard Simpson he genuinely can, and does, say: \u201cReal estate is in my blood.\u201d<\/p>\n<\/p><\/div>\n

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[ad_1] The current Real Estate Institute of Victoria president took over at an interesting time for the state’s peak representative real estate body, and for the Victorian property market. 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