The REIV wants a real estate industry watchdog.
VICTORIA’S peak real estate industry body will lobby for the creation of a real estate watchdog.
The Real Estate Institute of Victoria has today announced they will use the upcoming state
election in a bid to push both sides of politics to create a property services commissioner.
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REIV chief executive Gil King said that with an annual $76 billion in real estate transactions accounting for 20 per cent of the state’s gross domestic product, and property taxes accounting for 47 per cent of the state’s tax income, regulation via the consumer-oriented Consumer Affairs Victoria was potentially damaging to the state’s economy.
“The property services commissioner could oversee these very important areas that draw so much revenue to the state,” Mr King said.
“There’s a great propensity for damage to be done to the state, and to cause a decline in the state economically, given the great contribution that is provided by land tax and stamp duty and the like.”
The real estate and development industries are a significant contributor to Victoria’s economic wellbeing.
An industry commissioner would instead look at things holistically, and ensure consumer needs were balanced with the betterment of the industry and Victorian economy.
Mr King said recent changes to the tenancy act had shown a significant bias towards tenants above landlords and were an example of CAV’s consumer bias.
The REIV would be closely reviewing the rental market with a view to seeking repeals and amendments anywhere they felt it was failing to achieve the right outcome for the industry.
While CAV would retain its enforcement role and deal with rogue agents and developers, the REIV model would see legislative matters looked at with a broader view than just consumers.
“This would be a significant change and it’s a good chance to start the discussion,” Mr King said.
Consumer-led legislation and policies could cause damage for the future, the REIV claims.
He added quiet, early discussion with certain groups had been met with a mixed response to the idea.
CAV declined to comment on the proposal.
The REIV advocacy paper also showed the Institute planned to push for a wider use of NSW style planning — taking advantage of an existing capacity to privatise planning that was being ignored by councils, but that would reduce the time developers spent in the Victorian Civil and Administrative Tribunal.
More support for industry education, and a repeal of legislation that prevents agents from selling to associates, as well as calls to reduce both property and business taxes are also on their agenda.