October 12, 2025 • 16 mins
- What is a Green Home Loan? Bushy Martin from KnowHow Property Finance has the answer
- Maria Edwards, CEO at the Real Estate Institute of the ACT speaks about the new Anti-Money Laundering and Counter-Terrorism Financing reforms and how they affect local real estate
- Adam Hobill, Principal Building Designer at Adam Hobill Design and author of the book called “Nail It”, takes us on a magical tour that uncovers building and design jargon
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Episode Transcript
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Speaker 1 (00:01):
Cameron Renee's Real Estate show on Mix one oh six
point three be the envy of camera Live in de Burgert,
Northborne Village by JW Land now selling well. Can we
explored lots on the Mixed one and six point three
real Estate show this week thanks to JW.
Speaker 2 (00:16):
Land And now we get to relive it in the podcast.
Speaker 3 (00:18):
Yeah, Bushy Martin from Know How Property Finance I joined
us once again. We're talking about green home loans now. Yeah,
of course we've sort of you may have heard of
that sort of term.
Speaker 2 (00:26):
We might be able to kind of guess what it means.
Speaker 3 (00:28):
Yeah, but he does right into.
Speaker 1 (00:30):
It, yes, and so we've got to learn about that
and very relevant for the act as well well.
Speaker 3 (00:34):
I actually had to change the interviews line up around
in the lead up to the show that we did
on Saturday morning because I had an EDM that popped
up from the Real Estate Institute and the heading was
anti money Laundering and counter Terrorism financing reforms and how
it delves into local real estate.
Speaker 4 (00:53):
Yes.
Speaker 1 (00:53):
So Marie Edwards from REAX spoke to us about some
changes that are kicking in next year and what that
means for local real estate agency in camera.
Speaker 3 (01:01):
Yeah, and how's I mean they're in They're going to
be in place to protect both agents and agencies, but
also you know, people who are buying and selling as well.
Speaker 2 (01:08):
Exactly.
Speaker 5 (01:09):
Okay.
Speaker 3 (01:10):
Adam Hoble, principal building designer at Adam Hoble Design and
author of the book Nail It, joined us and we
jumped into some building and design jargon renee.
Speaker 1 (01:19):
Yes, because we've spoken about real estate jargon on the
show before. You know, all those terms that get thrown
about by agency, see them in ads and whatever. But
when you're building, builders, designers and that that have conversations
they've got their own fair share of terms too.
Speaker 3 (01:31):
Get your highlighter out. Because we talked about the idea
of provisional sums and also prime costs in a relationship
to the word allowance.
Speaker 2 (01:41):
So we learned all about those, yes, we did.
Speaker 3 (01:43):
Yeah, all right, So I thank you so much for
joining us on the podcast right here, and if you're able,
join us each Saturday morning between nine and ten for
the Real Estate Show thanks to JW.
Speaker 1 (01:53):
Land Well can this morning, we're asking the question what
is a green home loan? I've certainly never heard of
that before, have you?
Speaker 4 (02:03):
No?
Speaker 3 (02:03):
I mean, I sort of guessed what it's going to be.
Speaker 2 (02:05):
Sure, but I've not heard that before.
Speaker 1 (02:07):
No, And we're told that they can be used to
fund the constructional renovation of energy efficient sort of environmentally
friendly homes. But I'm sure there's a lot more to it.
It will be, and let's find out and ask the man,
of course, who has the answers to all these things
and more. Bushy Martin from No How Property Finance, Bushy,
good morning.
Speaker 6 (02:25):
Good morning, guys. How are you?
Speaker 2 (02:27):
Yes, we are good.
Speaker 1 (02:28):
Let's just kick things off and ask what is a
green home loan?
Speaker 6 (02:32):
Well, you covered it pretty well straight away, and it's
fair to save and that most of us actually end
up turning green when we think about the size of
our homeland repayments. But in this context, green homelans actually
reward any energy efficient homes, as you've mentioned, so seeing
of it like a good behavior discount for homes that
sit power rather than sculling it. So if your place
(02:52):
is built or upgraded to run cooler or summer in
summer and warmer and winter through a combination of things
like solar power, insulation, double glazing, heat pumps, et cetera,
some lenders will now discount your hardline rate or trim
the loan fees. So it's a bit like the bank
saying your place is certainly tight and solar, right, so
we're going to pass on an efficiency diffident, which means
it's a little bit like your power bills and loan repayments,
(03:14):
reducing from the cost of a double shot decap yack
milk latte to the.
Speaker 5 (03:18):
Product of a black gods.
Speaker 2 (03:20):
And does it really make a difference for people?
Speaker 6 (03:23):
Yeah, it absolutely does so in civil terms from a
benefit perspective. When a there's two real benefits of this.
On the bank side, you can snag a lower rate
or a cheap add on loan to fund energy efficient upgrades.
And you know, we're talking about up to two and
a half percent rate discount fro an energy upgrade line
up to fifty grand or up to one percent so
(03:45):
up to five years on a clean energy hold mortgage discount.
So we're some preson significant benefits there. And then the
camp of context guys, the energy efficiency ratings or EER
stars as you go probably know, are on every listing,
so efficiency isn't just green. It actually turns the goal
at open homes, and this is a bit of a
sign of what's going to happen across the country.
Speaker 3 (04:06):
It's really relevant here. Last week we learn from Nicola
Powell that one of the top search like you're people
typing into real estate search engines, what are we looking
for in camera? It's north facing, so people are looking
for homes that are north facing. So it's really relevant here.
Are there any things that we should be wary of
(04:28):
in these sorts of setups?
Speaker 6 (04:30):
Yeah, definitely. As with ere bringing in cam, you need
to check the fine print and the proof. So some
green lenders only fun new bills, while others want evidence
of upgrades. They want photos in voices and fikets. And
many green line discounts expire somewhere between one to five
years and then revert.
Speaker 5 (04:47):
To a high standard rate.
Speaker 6 (04:49):
So there's also limits on the side of the loan
that the deposit required, So you need to do the mass,
not the memes. And beware of what I always called
shagulator loans. Guys, I start cheap with the low rate,
but revert to expensive without you realizing it, which means
they shake you later. And lastly, avoid green washing, which
is where a bank can't see what qualifies and for
(05:11):
how long, which is really your queue to walk, not run.
So make sure you don't buy a green ticket to
a show that shuts it in.
Speaker 2 (05:18):
The book, does okay?
Speaker 1 (05:20):
And where can people to go to sort of learn
more about this and get unbiased info.
Speaker 6 (05:24):
Yeah, so start with some of the neutral comparison sites
like your mortgage dot com, dot au andsavings dot com
dot au list, which lends up a what then make
sure you pressure test that against the specifics of your
financial situation with a trusted finance breaker will actually run
the real numbers, not the narrative when it comes to
all of this. So where you know there's a really
(05:45):
good opportunity here. You know, the bottom line for me
is if your home is reproved bill basking and battery ready,
than the banks are more likely to patch on the
back with a rate. And it means that you've got
a real opportunity now, So you make your roof earn
its peep and let some part of them exciting things happening.
Speaker 3 (06:02):
All right, Well, that's all very important. It's sailing advice,
the green home loan. But the number one takeaway for
me this morning, Renee, is the shag you later.
Speaker 1 (06:11):
Yes, yeah, oh bush is so good well as always,
thank you so much for your time this morning.
Speaker 2 (06:19):
Really good.
Speaker 3 (06:21):
I love your show.
Speaker 6 (06:22):
Have a great weekend, guys, cheers.
Speaker 2 (06:23):
Thank you so much.
Speaker 1 (06:24):
Bushy Martin from No How probably Finance and you can
see and hear more from him on the Property hup
YouTube channel or bushymartin dot com?
Speaker 2 (06:31):
Are you forward slash podcasts?
Speaker 6 (06:33):
Well?
Speaker 1 (06:33):
Cam, why are we talking about anti money laundering and
counter terrorism financing reforms in the real estate show?
Speaker 5 (06:40):
Okay?
Speaker 3 (06:40):
So I already had a different interview line up because
in the background I organized the interviews for this show
off advice as well. We have bounce off each other
on email through the week, and so I had something
else lined up. And then yesterday morning, at about ten o'clock,
I'm on the mail outlist for the Real Estate Institute
of the Act. So Rick so An DM popped up
(07:02):
and the heading is anti money Laundering and counter Terrorism
Financing Reforms for local real estate.
Speaker 2 (07:09):
What's one got to do with the other?
Speaker 3 (07:11):
So I came on, Yeah, you got to learn about that.
So I shelved what we're spoken supposed to be speaking about.
Speaker 2 (07:16):
And now we're going to speak too.
Speaker 1 (07:17):
We're going to speak to Maria Edward's CEO of the
Real Estate Institute of the Act, Maria.
Speaker 2 (07:22):
Good morning, hang on, I'll do that. Hello, Maria, are
you there?
Speaker 4 (07:28):
Good morning. It's good to see you already on newsletters.
Speaker 2 (07:30):
Cam Oh, Maria, thank you so much for joining us
this morning.
Speaker 1 (07:34):
Now, look, tell us what are the anti money laundering
and counter terrorism financing reforms.
Speaker 2 (07:39):
And how do they relate to real estate.
Speaker 4 (07:42):
Yeah, it's going to be a big change the way
that real estate agencies as well as buyers, agents and
developers and conveyances and lawyers work. This new laws coming
in across Australia in July next year and the schedul sir,
they'll aimed at stopping money laundering and criminal use of
funds in the property market. So real estate's being known
as a target for criminal funds due to the high
value of transactions for a long time, but there hasn't
(08:04):
been sort of mechanisms in place for formal procedures to
fight that. And so Austraia is atually one of the
last countries in the world to actually adopt this regime
for our industry.
Speaker 3 (08:13):
Okay, and so how will the reforms then change the
way agencies and agents do business?
Speaker 4 (08:19):
Yeah, sure, so agencies themselves are going to Every agency
is going to have to enroll with OSTRAK in March
next year, and from July next year the new new
rules will take place. So what it means on a
practical level is they're going to have to verify people's
ID earlier and more thoroughly. So especially for like your
mum and dad, you know, it's fairly easy to do
their ideas, but for a company or a trust, you're
going to have to go into a lot more detail
(08:40):
about who's actually buying a property or who's actually selling
a property, and in some cases even finding out where
the source of funds is coming from.
Speaker 2 (08:46):
Okay, okay.
Speaker 3 (08:48):
And so what's the feedback being like so far from
agents and agencies. I mean it sounds like there's going
to be quite a bit more work. What are you receiving?
Speaker 4 (08:57):
Yeah, I mean people starting to get their heads around it.
I mean, we are the on the positive side, we've
sort of had a fairly big leading time for this
coming into place, because it means that we've got plenty
of time to educate people on what they're actually going
to need to do. I think there's some agencies that
are really out there on the front foot and working
out how they're going to comply with this legislation. Some
agents is kind of probably sitting sitting back a little
(09:17):
bit and waiting to see, but where educating people as
much as we can to get organized. They're going to
have to employ new people to be compliance officers in
their agencies. They're going to have to have whole new systems,
and also they need to you know, if they don't
enroll with US track and comply with the legislation, the
fines are really high. It's up to nineteen thousand dollars
a day if you don't enroll a day if they
don't enroll or they don't comply with the legislation. So yeah,
(09:40):
so it is a big, big you know, there is
big sticks out there, but also you know, big rewards
as well.
Speaker 2 (09:44):
Okay, and is money laundering? Has it been a big
problem like in the real estate space.
Speaker 4 (09:51):
I mean, I guess it's been a big enough problem
that we are adopting this regime. Yeah, something that's that's
been high profile in CANbus. Certainly that there has been
a money laundering obviously federally, but I mean it's also
a fact that people don't know if it's not reported.
You know, the extent of the problem probably isn't is
an understood but you know, we all know real estate
agency superhero. They're just gonna be crime fighting, you know,
(10:13):
in a different way come July next year.
Speaker 6 (10:15):
What a line.
Speaker 2 (10:16):
Yes, well that's really interesting.
Speaker 1 (10:20):
It'll be interesting to see how that all plays out,
you know, when and when it comes in and how.
Speaker 2 (10:25):
Everyone sort of deals with that. But yeah, that's been
really interesting to learn about.
Speaker 6 (10:28):
Thank you.
Speaker 4 (10:29):
Yeah, no worries, I guess. I mean, the main thing
for the public to remember is that, you know, this
is the legislation that people are complying with. You know,
agents really don't want to stop transactions where they really
don't want to know what your business. But there will
be requirements they've got to follow and it will change
next year a little bit more to know the way
that you actually identify yourself with a bank, for example,
or a financial institution.
Speaker 3 (10:47):
And no doubt we'll have the opportunity to speak to
you between now angela next year as it all sort
of plays out.
Speaker 4 (10:52):
Yes, yes, it's on the top of my list of
every conversation of having with every agent when I'm speaking
to at the moment. Have you heard about it coming in?
Speaker 2 (10:59):
Yeah, it is.
Speaker 1 (11:00):
Well, we'll chat to you again about this as time
goes on, Marie.
Speaker 2 (11:03):
But thank you. I'm so much a sharing that with
us today.
Speaker 4 (11:05):
Thanks so much having me cheers.
Speaker 1 (11:07):
Thank you, Marie Edwards. See the Real Estate Institute of
the act Cam. We've spoken on the show before about
real estate jargon. That's you know, terms that real estate
agents sort of throw out, their fancy terms.
Speaker 3 (11:19):
I think when we started this show, like almost eight
years ago, one of the things that we said both together,
we said it for any real estate agent or anyone
on the show says a word or something that we
don't understand, we're going to say, stop, what does that mean?
Speaker 2 (11:34):
But then we would spend too long.
Speaker 1 (11:36):
We wouldn't even get would we wouldn't even get to
talk about what we originally were meant to speak to
them about.
Speaker 2 (11:41):
We just need to do the ding acting every time
they do it, I'll get a bell. But this morning
we're going to look more into building jargons.
Speaker 1 (11:48):
So if like you're building a house, for example, you
hear builders or you know, architects, designers, whatever, having conversations
with each other or even with you and they'll say
things you'd be.
Speaker 2 (11:58):
Like, hey, what, I don't know what that means? You
go like that, yeah, exactly.
Speaker 1 (12:02):
So we're going to learn a bit more about building
jargon this morning and sake morning to Adam Hoble, principal
building designer at Adam Hoble Design and author of the
book Nail It. Adam, Good morning, Good morning guys, how
I am good?
Speaker 2 (12:14):
Now building jargon. Let's start off with this example.
Speaker 1 (12:17):
When we hear someone talking about an allowance, what does
that mean?
Speaker 5 (12:22):
Yeah, So look, when we when we put a project
out to a quote with builders, there's always going to
be a whole bunch of things that haven't yet been selected.
You haven't yet actually selected your other or you're you're
a tiler or timber flooring for example. So these things,
when when they're quoted, there's a dollar figure, a dollar allowance,
it's made to kind of make sure that those things
(12:44):
are captured in the quote.
Speaker 3 (12:45):
Right, okay, okay, And so that means sort of budgets
don't then, although I suppose they can, they don't blow out.
Is that essentially what we're looking to do.
Speaker 5 (12:53):
Well, that's the catch I guess into understanding those allowances
as to how realistic and how accurate they are. So
that's a real trap where where an allowance, for example,
for something like sitecuts, so excavation on a steeper site.
If a builder's got let's say you two thousand dollars
in there for sitecut, more likely that could be fifteen
(13:15):
or twenty thousand dollars, and ultimately you end up paying
the difference. So really important that you understand those numbers
are realistic.
Speaker 3 (13:22):
Okay, so we talked about allowance, then is that then
the same as a provisional sum or a prime cost item.
Speaker 6 (13:30):
Yes, it is.
Speaker 1 (13:31):
So.
Speaker 5 (13:31):
Provisional sums and prime costs are both forms of allowances
in a quote and a building contract. The difference between
those is the provisional sum for tasks that include both
labor and the supply of materials. So an example there
would be kitchen where there's a whole of cabinetry material, board,
(13:54):
benchtop that needs to be purchased and selections made, but
also a whole lot of labor to put that kitchen together.
Speaker 6 (14:00):
Okay.
Speaker 5 (14:03):
A prime cost again with the example of a kitchen,
is the things that are the items that you are
kind of selecting that are going into the kitchen, so
things like the tap, the sink, and the appliance, so
less about the labor component, more about just the supply
cost of that item.
Speaker 2 (14:18):
Yeah, okay, gotcha.
Speaker 1 (14:19):
And is there another word or turn a phrase that
comes to mind for you, Adam that has a lot
of people, you know, scratching their heads when builders and
designers are talking.
Speaker 3 (14:27):
Yeah, like when you show up to the job site
and someone says a word and you go, what are
you talking about, mane?
Speaker 5 (14:32):
Yeah, Well, look, I mean I think early on in
the process, and sticking with the theme of the I
read this is kind of quoting process. A lot of
people are really surprised that they think there's a whole
lot of safety in signing a fixed price contract building
contract with a builder, And yes there is, but it's
very rare that a fixed price contract is truly a
(14:55):
fixed price contract. So again we come back to those
allowances that we spoke about, provision sums and prime costs.
Any of any time that you've got a provisional sum
in a quote and a building contract, it's not truly
it's not truly a fixed price contract. So it's really
important to understand that those numbers are realistic and accurate.
Otherwise you're interest for the nasty surprise.
Speaker 3 (15:17):
I believe when you see the words provisional sum you
must highlight that.
Speaker 2 (15:21):
And just go got to be careful.
Speaker 5 (15:23):
Yeah, absolutely, that's right. I mean we spend a lot
of time with our clients working through that process, that
quoting process, to make sure that they have a really
high degree of understanding of what the quote includes and
what an excludes, and to make sure it's realistic with
their expectations.
Speaker 6 (15:40):
Yeah.
Speaker 1 (15:40):
Absolutely, all right, and well, thank you so much for
shedding light on that us.
Speaker 2 (15:43):
We've learned something this morning. Thanks so much.
Speaker 5 (15:46):
Thank you guys. Have a great weekend, you too.
Speaker 1 (15:48):
Adam Hoble, our principal building designer, Adam Hoble Design.
Speaker 3 (15:51):
Well, those are the interviews we most enjoyed in last
week's Mix one O six point three Real Estate Show.
If you love hearing about the latest trends, or you
just for a sticky beak, be sure to drop by
for a listen this Saturday between nine and ten
Speaker 1 (16:05):
Cameron Rene's Real Estate Show on Mix one O six
point three
Cameron Renee's Real Estate show on Mix one oh six
point three be the envy of camera Live in de Burgert,
Northborne Village by JW Land now selling well. Can we
explored lots on the Mixed one and six point three
real Estate show this week thanks to JW.
Speaker 2 (00:16):
Land And now we get to relive it in the podcast.
Speaker 3 (00:18):
Yeah, Bushy Martin from Know How Property Finance I joined
us once again. We're talking about green home loans now. Yeah,
of course we've sort of you may have heard of
that sort of term.
Speaker 2 (00:26):
We might be able to kind of guess what it means.
Speaker 3 (00:28):
Yeah, but he does right into.
Speaker 1 (00:30):
It, yes, and so we've got to learn about that
and very relevant for the act as well well.
Speaker 3 (00:34):
I actually had to change the interviews line up around
in the lead up to the show that we did
on Saturday morning because I had an EDM that popped
up from the Real Estate Institute and the heading was
anti money Laundering and counter Terrorism financing reforms and how
it delves into local real estate.
Speaker 4 (00:53):
Yes.
Speaker 1 (00:53):
So Marie Edwards from REAX spoke to us about some
changes that are kicking in next year and what that
means for local real estate agency in camera.
Speaker 3 (01:01):
Yeah, and how's I mean they're in They're going to
be in place to protect both agents and agencies, but
also you know, people who are buying and selling as well.
Speaker 2 (01:08):
Exactly.
Speaker 5 (01:09):
Okay.
Speaker 3 (01:10):
Adam Hoble, principal building designer at Adam Hoble Design and
author of the book Nail It, joined us and we
jumped into some building and design jargon renee.
Speaker 1 (01:19):
Yes, because we've spoken about real estate jargon on the
show before. You know, all those terms that get thrown
about by agency, see them in ads and whatever. But
when you're building, builders, designers and that that have conversations
they've got their own fair share of terms too.
Speaker 3 (01:31):
Get your highlighter out. Because we talked about the idea
of provisional sums and also prime costs in a relationship
to the word allowance.
Speaker 2 (01:41):
So we learned all about those, yes, we did.
Speaker 3 (01:43):
Yeah, all right, So I thank you so much for
joining us on the podcast right here, and if you're able,
join us each Saturday morning between nine and ten for
the Real Estate Show thanks to JW.
Speaker 1 (01:53):
Land Well can this morning, we're asking the question what
is a green home loan? I've certainly never heard of
that before, have you?
Speaker 4 (02:03):
No?
Speaker 3 (02:03):
I mean, I sort of guessed what it's going to be.
Speaker 2 (02:05):
Sure, but I've not heard that before.
Speaker 1 (02:07):
No, And we're told that they can be used to
fund the constructional renovation of energy efficient sort of environmentally
friendly homes. But I'm sure there's a lot more to it.
It will be, and let's find out and ask the man,
of course, who has the answers to all these things
and more. Bushy Martin from No How Property Finance, Bushy,
good morning.
Speaker 6 (02:25):
Good morning, guys. How are you?
Speaker 2 (02:27):
Yes, we are good.
Speaker 1 (02:28):
Let's just kick things off and ask what is a
green home loan?
Speaker 6 (02:32):
Well, you covered it pretty well straight away, and it's
fair to save and that most of us actually end
up turning green when we think about the size of
our homeland repayments. But in this context, green homelans actually
reward any energy efficient homes, as you've mentioned, so seeing
of it like a good behavior discount for homes that
sit power rather than sculling it. So if your place
(02:52):
is built or upgraded to run cooler or summer in
summer and warmer and winter through a combination of things
like solar power, insulation, double glazing, heat pumps, et cetera,
some lenders will now discount your hardline rate or trim
the loan fees. So it's a bit like the bank
saying your place is certainly tight and solar, right, so
we're going to pass on an efficiency diffident, which means
it's a little bit like your power bills and loan repayments,
(03:14):
reducing from the cost of a double shot decap yack
milk latte to the.
Speaker 5 (03:18):
Product of a black gods.
Speaker 2 (03:20):
And does it really make a difference for people?
Speaker 6 (03:23):
Yeah, it absolutely does so in civil terms from a
benefit perspective. When a there's two real benefits of this.
On the bank side, you can snag a lower rate
or a cheap add on loan to fund energy efficient upgrades.
And you know, we're talking about up to two and
a half percent rate discount fro an energy upgrade line
up to fifty grand or up to one percent so
(03:45):
up to five years on a clean energy hold mortgage discount.
So we're some preson significant benefits there. And then the
camp of context guys, the energy efficiency ratings or EER
stars as you go probably know, are on every listing,
so efficiency isn't just green. It actually turns the goal
at open homes, and this is a bit of a
sign of what's going to happen across the country.
Speaker 3 (04:06):
It's really relevant here. Last week we learn from Nicola
Powell that one of the top search like you're people
typing into real estate search engines, what are we looking
for in camera? It's north facing, so people are looking
for homes that are north facing. So it's really relevant here.
Are there any things that we should be wary of
(04:28):
in these sorts of setups?
Speaker 6 (04:30):
Yeah, definitely. As with ere bringing in cam, you need
to check the fine print and the proof. So some
green lenders only fun new bills, while others want evidence
of upgrades. They want photos in voices and fikets. And
many green line discounts expire somewhere between one to five
years and then revert.
Speaker 5 (04:47):
To a high standard rate.
Speaker 6 (04:49):
So there's also limits on the side of the loan
that the deposit required, So you need to do the mass,
not the memes. And beware of what I always called
shagulator loans. Guys, I start cheap with the low rate,
but revert to expensive without you realizing it, which means
they shake you later. And lastly, avoid green washing, which
is where a bank can't see what qualifies and for
(05:11):
how long, which is really your queue to walk, not run.
So make sure you don't buy a green ticket to
a show that shuts it in.
Speaker 2 (05:18):
The book, does okay?
Speaker 1 (05:20):
And where can people to go to sort of learn
more about this and get unbiased info.
Speaker 6 (05:24):
Yeah, so start with some of the neutral comparison sites
like your mortgage dot com, dot au andsavings dot com
dot au list, which lends up a what then make
sure you pressure test that against the specifics of your
financial situation with a trusted finance breaker will actually run
the real numbers, not the narrative when it comes to
all of this. So where you know there's a really
(05:45):
good opportunity here. You know, the bottom line for me
is if your home is reproved bill basking and battery ready,
than the banks are more likely to patch on the
back with a rate. And it means that you've got
a real opportunity now, So you make your roof earn
its peep and let some part of them exciting things happening.
Speaker 3 (06:02):
All right, Well, that's all very important. It's sailing advice,
the green home loan. But the number one takeaway for
me this morning, Renee, is the shag you later.
Speaker 1 (06:11):
Yes, yeah, oh bush is so good well as always,
thank you so much for your time this morning.
Speaker 2 (06:19):
Really good.
Speaker 3 (06:21):
I love your show.
Speaker 6 (06:22):
Have a great weekend, guys, cheers.
Speaker 2 (06:23):
Thank you so much.
Speaker 1 (06:24):
Bushy Martin from No How probably Finance and you can
see and hear more from him on the Property hup
YouTube channel or bushymartin dot com?
Speaker 2 (06:31):
Are you forward slash podcasts?
Speaker 6 (06:33):
Well?
Speaker 1 (06:33):
Cam, why are we talking about anti money laundering and
counter terrorism financing reforms in the real estate show?
Speaker 5 (06:40):
Okay?
Speaker 3 (06:40):
So I already had a different interview line up because
in the background I organized the interviews for this show
off advice as well. We have bounce off each other
on email through the week, and so I had something
else lined up. And then yesterday morning, at about ten o'clock,
I'm on the mail outlist for the Real Estate Institute
of the Act. So Rick so An DM popped up
(07:02):
and the heading is anti money Laundering and counter Terrorism
Financing Reforms for local real estate.
Speaker 2 (07:09):
What's one got to do with the other?
Speaker 3 (07:11):
So I came on, Yeah, you got to learn about that.
So I shelved what we're spoken supposed to be speaking about.
Speaker 2 (07:16):
And now we're going to speak too.
Speaker 1 (07:17):
We're going to speak to Maria Edward's CEO of the
Real Estate Institute of the Act, Maria.
Speaker 2 (07:22):
Good morning, hang on, I'll do that. Hello, Maria, are
you there?
Speaker 4 (07:28):
Good morning. It's good to see you already on newsletters.
Speaker 2 (07:30):
Cam Oh, Maria, thank you so much for joining us
this morning.
Speaker 1 (07:34):
Now, look, tell us what are the anti money laundering
and counter terrorism financing reforms.
Speaker 2 (07:39):
And how do they relate to real estate.
Speaker 4 (07:42):
Yeah, it's going to be a big change the way
that real estate agencies as well as buyers, agents and
developers and conveyances and lawyers work. This new laws coming
in across Australia in July next year and the schedul sir,
they'll aimed at stopping money laundering and criminal use of
funds in the property market. So real estate's being known
as a target for criminal funds due to the high
value of transactions for a long time, but there hasn't
(08:04):
been sort of mechanisms in place for formal procedures to
fight that. And so Austraia is atually one of the
last countries in the world to actually adopt this regime
for our industry.
Speaker 3 (08:13):
Okay, and so how will the reforms then change the
way agencies and agents do business?
Speaker 4 (08:19):
Yeah, sure, so agencies themselves are going to Every agency
is going to have to enroll with OSTRAK in March
next year, and from July next year the new new
rules will take place. So what it means on a
practical level is they're going to have to verify people's
ID earlier and more thoroughly. So especially for like your
mum and dad, you know, it's fairly easy to do
their ideas, but for a company or a trust, you're
going to have to go into a lot more detail
(08:40):
about who's actually buying a property or who's actually selling
a property, and in some cases even finding out where
the source of funds is coming from.
Speaker 2 (08:46):
Okay, okay.
Speaker 3 (08:48):
And so what's the feedback being like so far from
agents and agencies. I mean it sounds like there's going
to be quite a bit more work. What are you receiving?
Speaker 4 (08:57):
Yeah, I mean people starting to get their heads around it.
I mean, we are the on the positive side, we've
sort of had a fairly big leading time for this
coming into place, because it means that we've got plenty
of time to educate people on what they're actually going
to need to do. I think there's some agencies that
are really out there on the front foot and working
out how they're going to comply with this legislation. Some
agents is kind of probably sitting sitting back a little
(09:17):
bit and waiting to see, but where educating people as
much as we can to get organized. They're going to
have to employ new people to be compliance officers in
their agencies. They're going to have to have whole new systems,
and also they need to you know, if they don't
enroll with US track and comply with the legislation, the
fines are really high. It's up to nineteen thousand dollars
a day if you don't enroll a day if they
don't enroll or they don't comply with the legislation. So yeah,
(09:40):
so it is a big, big you know, there is
big sticks out there, but also you know, big rewards
as well.
Speaker 2 (09:44):
Okay, and is money laundering? Has it been a big
problem like in the real estate space.
Speaker 4 (09:51):
I mean, I guess it's been a big enough problem
that we are adopting this regime. Yeah, something that's that's
been high profile in CANbus. Certainly that there has been
a money laundering obviously federally, but I mean it's also
a fact that people don't know if it's not reported.
You know, the extent of the problem probably isn't is
an understood but you know, we all know real estate
agency superhero. They're just gonna be crime fighting, you know,
(10:13):
in a different way come July next year.
Speaker 6 (10:15):
What a line.
Speaker 2 (10:16):
Yes, well that's really interesting.
Speaker 1 (10:20):
It'll be interesting to see how that all plays out,
you know, when and when it comes in and how.
Speaker 2 (10:25):
Everyone sort of deals with that. But yeah, that's been
really interesting to learn about.
Speaker 6 (10:28):
Thank you.
Speaker 4 (10:29):
Yeah, no worries, I guess. I mean, the main thing
for the public to remember is that, you know, this
is the legislation that people are complying with. You know,
agents really don't want to stop transactions where they really
don't want to know what your business. But there will
be requirements they've got to follow and it will change
next year a little bit more to know the way
that you actually identify yourself with a bank, for example,
or a financial institution.
Speaker 3 (10:47):
And no doubt we'll have the opportunity to speak to
you between now angela next year as it all sort
of plays out.
Speaker 4 (10:52):
Yes, yes, it's on the top of my list of
every conversation of having with every agent when I'm speaking
to at the moment. Have you heard about it coming in?
Speaker 2 (10:59):
Yeah, it is.
Speaker 1 (11:00):
Well, we'll chat to you again about this as time
goes on, Marie.
Speaker 2 (11:03):
But thank you. I'm so much a sharing that with
us today.
Speaker 4 (11:05):
Thanks so much having me cheers.
Speaker 1 (11:07):
Thank you, Marie Edwards. See the Real Estate Institute of
the act Cam. We've spoken on the show before about
real estate jargon. That's you know, terms that real estate
agents sort of throw out, their fancy terms.
Speaker 3 (11:19):
I think when we started this show, like almost eight
years ago, one of the things that we said both together,
we said it for any real estate agent or anyone
on the show says a word or something that we
don't understand, we're going to say, stop, what does that mean?
Speaker 2 (11:34):
But then we would spend too long.
Speaker 1 (11:36):
We wouldn't even get would we wouldn't even get to
talk about what we originally were meant to speak to
them about.
Speaker 2 (11:41):
We just need to do the ding acting every time
they do it, I'll get a bell. But this morning
we're going to look more into building jargons.
Speaker 1 (11:48):
So if like you're building a house, for example, you
hear builders or you know, architects, designers, whatever, having conversations
with each other or even with you and they'll say
things you'd be.
Speaker 2 (11:58):
Like, hey, what, I don't know what that means? You
go like that, yeah, exactly.
Speaker 1 (12:02):
So we're going to learn a bit more about building
jargon this morning and sake morning to Adam Hoble, principal
building designer at Adam Hoble Design and author of the
book Nail It. Adam, Good morning, Good morning guys, how
I am good?
Speaker 2 (12:14):
Now building jargon. Let's start off with this example.
Speaker 1 (12:17):
When we hear someone talking about an allowance, what does
that mean?
Speaker 5 (12:22):
Yeah, So look, when we when we put a project
out to a quote with builders, there's always going to
be a whole bunch of things that haven't yet been selected.
You haven't yet actually selected your other or you're you're
a tiler or timber flooring for example. So these things,
when when they're quoted, there's a dollar figure, a dollar allowance,
it's made to kind of make sure that those things
(12:44):
are captured in the quote.
Speaker 3 (12:45):
Right, okay, okay, And so that means sort of budgets
don't then, although I suppose they can, they don't blow out.
Is that essentially what we're looking to do.
Speaker 5 (12:53):
Well, that's the catch I guess into understanding those allowances
as to how realistic and how accurate they are. So
that's a real trap where where an allowance, for example,
for something like sitecuts, so excavation on a steeper site.
If a builder's got let's say you two thousand dollars
in there for sitecut, more likely that could be fifteen
(13:15):
or twenty thousand dollars, and ultimately you end up paying
the difference. So really important that you understand those numbers
are realistic.
Speaker 3 (13:22):
Okay, so we talked about allowance, then is that then
the same as a provisional sum or a prime cost item.
Speaker 6 (13:30):
Yes, it is.
Speaker 1 (13:31):
So.
Speaker 5 (13:31):
Provisional sums and prime costs are both forms of allowances
in a quote and a building contract. The difference between
those is the provisional sum for tasks that include both
labor and the supply of materials. So an example there
would be kitchen where there's a whole of cabinetry material, board,
(13:54):
benchtop that needs to be purchased and selections made, but
also a whole lot of labor to put that kitchen together.
Speaker 6 (14:00):
Okay.
Speaker 5 (14:03):
A prime cost again with the example of a kitchen,
is the things that are the items that you are
kind of selecting that are going into the kitchen, so
things like the tap, the sink, and the appliance, so
less about the labor component, more about just the supply
cost of that item.
Speaker 2 (14:18):
Yeah, okay, gotcha.
Speaker 1 (14:19):
And is there another word or turn a phrase that
comes to mind for you, Adam that has a lot
of people, you know, scratching their heads when builders and
designers are talking.
Speaker 3 (14:27):
Yeah, like when you show up to the job site
and someone says a word and you go, what are
you talking about, mane?
Speaker 5 (14:32):
Yeah, Well, look, I mean I think early on in
the process, and sticking with the theme of the I
read this is kind of quoting process. A lot of
people are really surprised that they think there's a whole
lot of safety in signing a fixed price contract building
contract with a builder, And yes there is, but it's
very rare that a fixed price contract is truly a
(14:55):
fixed price contract. So again we come back to those
allowances that we spoke about, provision sums and prime costs.
Any of any time that you've got a provisional sum
in a quote and a building contract, it's not truly
it's not truly a fixed price contract. So it's really
important to understand that those numbers are realistic and accurate.
Otherwise you're interest for the nasty surprise.
Speaker 3 (15:17):
I believe when you see the words provisional sum you
must highlight that.
Speaker 2 (15:21):
And just go got to be careful.
Speaker 5 (15:23):
Yeah, absolutely, that's right. I mean we spend a lot
of time with our clients working through that process, that
quoting process, to make sure that they have a really
high degree of understanding of what the quote includes and
what an excludes, and to make sure it's realistic with
their expectations.
Speaker 6 (15:40):
Yeah.
Speaker 1 (15:40):
Absolutely, all right, and well, thank you so much for
shedding light on that us.
Speaker 2 (15:43):
We've learned something this morning. Thanks so much.
Speaker 5 (15:46):
Thank you guys. Have a great weekend, you too.
Speaker 1 (15:48):
Adam Hoble, our principal building designer, Adam Hoble Design.
Speaker 3 (15:51):
Well, those are the interviews we most enjoyed in last
week's Mix one O six point three Real Estate Show.
If you love hearing about the latest trends, or you
just for a sticky beak, be sure to drop by
for a listen this Saturday between nine and ten
Speaker 1 (16:05):
Cameron Rene's Real Estate Show on Mix one O six
point three
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