Why is property consulting expensive?
RTE 1 Property consultants are paid from the state, but they often have little experience with property management, according to the country’s largest property consultancy, Russell Properties.
“They are very expensive consultants, and I’m sure that there is a problem of not having experience with managing land,” said Michael Denny, chairman of Russell Properties, which specialises in managing land in the north-west.
“It’s really a question of quality, and that is what we are focused on.”
Mr Denny said he was “deeply disappointed” by the recent decision by the state to introduce new measures that are expected to make property consultants’ jobs more difficult.
“We have had a lot of people who have come into our practice and said, ‘We’ve been hired by the government to manage my property and they are doing a poor job’,” he said.
“I would be extremely disappointed if that happened.”
Property consultants are the people responsible for finding out if properties have enough affordable housing.
The new measures mean property consultants must report to the Department of Planning and Development, which is tasked with deciding whether a property meets the needs of affordable housing in a region.
In NSW, property consultants are required to report to their local planning department every six months.
Property experts and planners are not expected to be paid for their work.
Mr Skelton, who specialises as a property consultant, said that in some areas, the new measures meant his fee was only paid once a year.
He said he would have to pay about $200 a week to be able to maintain his standard of living.
His office has been closed since the new legislation was announced last week, so he has no contact with property managers in his area.
“I don’t know how I will survive the next two weeks without my office,” he said, adding that his job has been a major part of his family’s lives for many years.
He said the government should have given more resources to property consultants.
“[The government] should have paid them more.
They are not being paid at all,” he added.
‘There is no such thing as a bad property consultant’ Mr Jankowski said that the current regulations were “exactly what you would expect” from the department that is responsible for property management in the state.
But, he said that there was a problem with “there is no like-for-like comparison” between what a property advisor can do and what a consultant can do.
“They cannot just do a ‘you know what?
Let’s do it’ approach.
You have to have a really deep knowledge of what is going on in the local area, in terms of the market, the housing needs, the needs for affordable housing, the supply,” he explained.
That’s why property consultants needed to have “a really deep understanding” of the problems facing the market and the local community, he added, adding he believed the proposed changes would lead to “major problems”.
“There is absolutely no such concept of ‘bad property consultant’.
There is no way you could have a ‘bad’ property consultant,” he told RTE.
According to a 2016 report by the Australian Institute of Management (AIIM), there are currently more than 400,000 property consultants in Australia.
(Source: AIIM) In response to queries from RTE, a spokesman for the Department for Planning and the Environment (DPE) said the new regulations were designed to protect the health of the NSW economy and communities.
Answering questions from RNZ, a spokesperson for the department said that “all property consultants who provide advice on land, land management and land supply to the State are required by law to report every six weeks on their own time and on a fee basis”.
(Sources: AIOM, RTE)”In order to provide an accurate assessment of the effectiveness of these measures, the DPE will publish a report that identifies and highlights issues that are identified and how the measures may impact on the health and wellbeing of NSW’s population.”
The DPE has also provided guidance to the local government on the measures that may be required in a particular area.”
The spokesperson also said that property consultants “must be licensed in NSW and have a valid work permit and relevant insurance” to conduct their work in NSW.
However, Mr Jankowski said he did not have any issues with the new laws and would not be affected by them.
A spokesman for NSW Department for Business, Innovation and Employment (DBE) confirmed that the new policies would be reviewed and that there would be “some changes” to the way property consultants work.”
Any changes to the process will be made after the review is completed,” the spokesperson said.”
No further comment will be given at this stage.”