Real estate careers boom or bust

Real estate careers boom or bust Real estate careers boom or bust?Posted May 12, 2015, by Marni WilliamsWhen the four apartments on The Block sold last week for an average of $760,000 over their reserves, who had cause to celebrate? The couples who had to give up months of their lives to work on them, the companies who got prime-time product placements, the television network? Yes, yes and yes. But theres another group that certainly would have felt like winners the real estate agents. Australias property market seems to reach new heights with every passing auction day, so we thought it was time to take the pulse of the real estate industry and see if all this growth is a good news story for jobs. Here are your burning questions answered.What are your options?A career in real estate doesnt just have to mean selling houses. Here are some of the ways you can get involvedIf you love...Try working as anBeing in the spotlightAuctioneerWorking your contactsBusiness Development ManagerBein g a team playerStrata Manager Property ManagerMaking the customer happySellers AgentFinding a killer dealBuyers AgentHoning your people skillsLeasing AgentNegotiating and sealing the dealReal Estate Sales ExecutiveCrunching the numbersProperty Valuer Research AnalystExercising your good judgementProperty DeveloperPresenting productsReal Estate Writer/PhotographerCreating campaignsReal Estate Marketing ExecutiveWith many real estate jobs, a lot of important learning goes on while youre on the job, but these courses will provide you with solid footingCertificate IV in Property Services (Real Estate)Certificate III in Property Services (Agency)Bachelor of Property and Real EstateDiploma of Property Services (Agency Management)If your dream job includes selling property then you will need to get accredited. Each state has its own requirements, so here are the courses that will get you on your way table-border td border1px solid 444table-border border1px solid 000table-border td, table-b order th padding3px border1px solid 444table-border tr td + td + td, table-border tr th + td + td table-border tr td + td , table-border tr th + tdAustralian Capital TerritoryACT Real Estate Licensing ProgramACT Real Estate Certificate of Registration ProgramNew South WalesNSW Real Estate Licensing ProgramNSW Real Estate Certificate of Registration ProgramNorthern TerritoryDiploma in Real Estate (Real Estate Agent Licence)Certificate IV in Real Estate (Agents Representative)QueenslandQLD Real Estate Licensing ProgramQLD Real Estate Certificate of Registration ProgramSouth AustraliaSA Real Estate Sales Representative ProgramSA Registered Land Agents Licence ProgramTasmaniaTasmania Real Estate Licensing ProgramVictoriaVIC Real Estate Licensing ProgramVIC Agents Representative ProgramWestern AustraliaWA Representative Registration Program SalesWA Registration Program Property ManagementWA Real Estate Licensing Programtable-border td border1px solid 444table-border border1px solid 000 table-border td, table-border th padding3px border1px solid 444table-border tr td + td + td, table-border tr th + td + td table-border tr td + td , table-border tr th + td Is it a big industry?It might surprise you to know that the real estate sector brings in 2.9 per cent of GDP. Thats more than administration and rckendeckung services, agriculture and hospitality. In terms of the jobs market, 1.9 per cent of Australians are employed in the industry. That may not sound like much, but its actually the same percentage as media and communications, and mining. Australians are big investors in real estate. A whopping 19.5 per cent of Australias capital expenditure (investment) goes into the ownership of dwellings, with a further 4.3 per cent going into rental and real estate investment. These sectors combine to be only slightly less than investment in mining, which sits at 26.6 per cent. Is it still on the up?Leading market analysts at IBISWorld expect big things, suggesting that popu lation growth and an increase in high-density housing will drive industry expansion. They expect industry revenue to increase by 1.6 per cent a year to reach $9.8 billion in 2016-17. Whats the job outlook?Unemployment for real estate agents is below the national average and in the five years to November 2014, employment grew strongly (up by 23.1 per cent). Employment is expected to increase at an above average rate over the five years to November 2019 (up by 12.6 per cent, or 27,800 jobs). The vast majority of those jobs are expected to be created in the area of Property Operators and Real Estate Services. Whats the demographic?The industry has a slightly higher proportion of females than the national average, and workers are more likely to be employed full-time.What are the challenges?Theres huge competition in real estate, so you have to be prepared to work hard. And, like any other industry, there have been disruptions to the old way of doing things. Consumers can now buy and se ll their houses online, they can take advertising and marketing into their own hands, and they can even manage their own properties with dedicated websites. Nick McGuire has been in the game since 1997, with roles as a selling agent, agency-owner (10 years) and a consultant. He trains real estate agents with PRDnationwide, and notes four significant changes The introduction of the internet and real estate portals professional photography database marketing and the final one which we are on the cusp of now a social media tsunami. While these changes have brought about their challenges, there is one major challenge that any agent needs to work very hard to overcome the perception of the real estate agent. Sellers agent Roger Clark has over 40 years experience in real estate, and hes noted the change The ability of agents to realistically, honestly and accurately appraise property has reduced to scandalous levels. Perception of respect for agents and the integrity of agencies has noticeably declined. A Roy Morgan survey released just last week ranked real estate agents lower than politicians and lawyers in terms of their perceived trustworthiness. The survey ranks 30 professions, and nurses were at the top with a score of 92 per cent, followed by doctors and pharmacists on 84 per cent. Only 9 per cent of the 598 survey respondents scored agents highly for honesty and ethics, meaning that the profession shares its place at the bottom with bank managers, lawyers and state and federal MPs. On the brighter side, if you work as an estate agent you will be more trusted than advertising professionals or car salesmen just. But that means there is also some good news if you become a trusted agent with a loyal following, then the possibilities really open up. And the qualities you need for this? McGuires advice might surprise you The perception is that youre a people person and you love to talk, but being a good agent is about being a good listener to ask questi ons and to be an active listener is the fruchtwein important thing in real estate. People want to be listened to. Sounds simple enough, but its going to take some effort to revise the old agent stereotype.What about the pay?The median weekly income for real estate agents is $921$1,050. While that may sound decent enough, the earning potential for successful real estate agents goes far beyond this when commissions come into play. Commission rates vary from agency to agency and also depend on the market that you operate in. For example, regional areas typically yield higher commissions by as much as a couple of percentage points, but the higher rates exist to offset the lower turnover of property in those areas. To give you an idea of the current state of play, here are the average commissions in each of the capital citiesStateAverage commissionAverage house price per capital cityAverage unit price per capital city$ value of average commission (houses)$ value of average commission (units)SA2.07%$466,930$297,857$9,665$6,165NSW2.11%$873,786$597,668$18,436$12,610VIC2.13%$610,470$431,419$13,003$9,189ACT2.18%$585,630$412,835$12,767$9,000WA2.45%$612,873$406,041$15,015$9,950QLD2.47%$489,681$357,315$12,095$8,825NT2.68%$634,316$433,981$17,000$11,630TAS3.26%$335,880$236,651$10,950$7,715SourcesSellMyCastle,Domain House Price Report, Dec 14Tim Lawless, Head of Data at CoreLogic RP Data, gives some indication of how the Australian property market has fared after the GFC Sydney dwellings are now 40.2 per cent higher relative to the May 2012 trough. If you factor in the