Introducing the world of Real Estate Agencies in NSW
As we all know, Real Estate Agencies SURVIVED THE PANDEMIC which means that they are a good business.
I believe this is because of the real asset in this agency is the rent roll.
However, not everybody can start a real estate business easily.
The business part is straight forward - managing other peopleís properties.
Rent the property; receive rent from tenants; deduct our management fees and maintenance expenses and other related expenses and send the remaining funds to the Owners.
For sales, as soon as the sale of a property has settled, the agreed percentage of the sales price will go to Agent as a commission.
All the above are regulated by NSW Fair Trading: https://www.fairtrading.nsw.gov.au/
However why is it not easy to start?
Real Estate Agency in NSW is a regulated industry. The rules change all the time.
After 23 March 2020, under the reforms, any person who is nominated as an LIC (Licensee In Charge) must hold a Class 1 Agent licence.
As a licensed Class 2 real estate agent, you will be able to work in sales, leasing, strata management, property management and more. However, a Class 2 licence does NOT allow us to open or operate our own real estate agency. For this we would need a Class 1 licence and at least 2 yearsí experience.
See this too: https://www.fairtrading.nsw.gov.au/housing-and-property/property-professionals/recent-law-reforms/real-estate-certificate-of-registration for more information.
I received my Real Estate Licence in 2011. I had to attend a face-to-face course for 3 days and the rest was online. It took me another 4 months to complete Certificate IV for this purpose.
Before 23 March 2020, there were only two categories: Certificate of Registration and Real Estate Licence. Because my experience was more than 2 years before 23 March 2020, the NSW Office of Fair Trading has converted my Real Estate Licence to Class 1.
Now I am deemed qualified to run my own agency.
I am also a full member of CPA Australia.
The REASON I WRITE THIS:
I can buy an existing agency or join a Ray White or LJ Hooker or other franchises as a franchisee. But I do not want to do this alone. I have a lot of things to do and I would like to start this business with friends.
We can create a company to run such an agency if we want. It is legal and we can sell our investment in the future to other people too when we are no longer interested in having Real Estate Agency.
1. Creating an opportunity for those who are interested in starting this business to get experience.
2. Preparing a Business Strategy together as a group which is better than do it alone.
3. Creating an investment opportunity for those who cannot get involved in the business.
4. Creating an opportunity for people to start careers in Real Estate.
5. Eventually there should be more Class 1 Real Estate Licence holders in the group, and LIC and everyone could enjoy holidays conveniently.
The OFFER to make a WIN Ė WIN agreement:
1. If you are a Class 1 Real Estate Licence Holder and interested to start such a business together so letís talk.
2. If you are a Class 2 Real Estate Licence Holder and interested to start a business together, letís talk.
3. If you are an Assistant Agent, and interested to start a business together, letís talk.
4. If you are not involved in the Real Estate Industry at all but interested to be involved as an Investor and/or a future employee, letís talk.
5. The more the merrier.
6. I have created a new domain Ė easy to remember: www.iluckrealty.com.au, just in case. We can use other domain names if it is not an agreed choice of us.
WeChat ID: luckypersoncom
We can talk about the Return On Investment and Due Diligence if we want to buyout an existing Agency. We can also talk about the risks, competitors, franchising etc.
Thanks and regards