Skip to 0 minutes and 4 secondsThe API, or the Australian Property Institute, is an independent membership body or a not-for-profit organisation. Our members are graduates of property courses and practitioners in valuation, property management, and other property professional careers. And they join us to be certified and assessed, to be educated in their ongoing careers, and to share knowledge, and to act collectively in representative government and forming agreed standards for practice. So, it's a community body of practice here and a collective of professionals. The Australian Property Institute has a close relationship with the RICS, Royal Institute of Chartered Surveyors, who are an international body based in the UK. And we look to the RICS to provide international mobility and recognition for properly practitioners.
Skip to 0 minutes and 56 secondsWe partner on education and other activities in Australia, and we see the RICS as the conduit for our members who want to work internationally or have an internationally-recognised certification. A property valuation is an assessment of the market value of property based on market data and analysis. Valuation is an interesting and, I guess, complex and changing field. Valuation conditions and market needs keep evolving.
Skip to 1 minute and 29 secondsFor instance, with increasing amounts of urban redevelopment and new infrastructure - new light rail, new tunnels, freeways, and land being resumed or reused for different purposes - there's a lot of questions arise of how you would arrive at the valuation of somebody's business that's going to be resumed for another purpose or the impact of a particular piece of infrastructure on an adjoining property, either positive or negative. And so these things keep changing and evolving, and we develop new standards by which we're going to assess. We keep rethinking. And the courts make determinations on things that require the whole industry to reflect that finding and adjust accordingly the way that we go about determining valuation.
Skip to 2 minutes and 19 secondsAPI members and property graduates go into a variety of areas. Valuation is an early career for many people and can form a very useful foundation of skills for all sorts of careers in property. But our members can work in the valuation of residential, as in houses, for mortgage purposes and so on. They can work in valuing of commercial properties - offices, hotels, in plant and machinery industrial buildings. And others go to into property management, or management of property funds and investment funds. They go into providing advice to investors and be property analysts, deal with data. They could deal with publishing.
Skip to 3 minutes and 7 secondsOthers will work in government, either working in supporting government property assets or in areas where government might procure land or use land for infrastructure development or work with the owners of property. Other government areas are concerned with taxation and rates for local government purposes. And others will go into academia, research, and in bringing young property professionals into the industry. So, API members undertake quite a wide variety of jobs in the property sector. And perhaps to give you a couple of examples, some of our members would do valuations for residential property. And they're needed by, for instance, individuals, buying a house, going to the bank for a mortgage.
Skip to 4 minutes and 0 secondsThe bank's going to want a valuation based on current market rates for that property, and that's what the valuer provides. Others might be involved with providing investment advice, for instance to foreign investors from places like China, Korea, the USA, who want to invest in markets in Sydney and Melbourne but need to understand the local risks, returns, costs, and to pick up on where the investment opportunities might be from time to time. The API welcomes graduate members. We have a fraternity called the Young Property Professionals, and they have a pretty good time with social activities, but also networking amongst their peers and engaging in training and development activities, getting prepared the certification.
Skip to 4 minutes and 49 secondsA CPV, or Certified Practicing Valuer, is assessed by the API as being capable of conducting valuations in Australia, and it's necessary to be a CPV to do a variety of valuations that are relied on by banks. CPV is required by many employers and looked at by clients. And in many cases, regulators are going to require CPV. To become a CPV or Certified Practicing Valuer, you will have undertaken a university course recognised by the Australian Property Institute, and on graduation entered the work force, spent two perhaps with a valuation firm or property firm or with a government body involved with valuation.
Skip to 5 minutes and 32 secondsAnd at that time, you'd come to the Australian Property Institute, and you would present a work portfolio and undertake an interview. And we provide an assessment, and all being well you'd be certified and able to practice as an independent valuer in Australia.
Property and real estate jobs and work
Since the real estate industry is so large, what types of work and jobs are there in the real estate industry?
Listen to Rupert Grayston from the Australian Property Institute talking about the types of property related jobs in Australia, by clicking on the video above.
There are many people that make a living out of developing unimproved land into something that allows land to have buildings on it. One of the most notable is President Donald Trump who has quite successfully developed many residential apartment buildings, hotels and even golf courses. Can you name a few property developers?
Real estate agency (or brokerage)
Real estate agents need to be licensed within each state in Australia and only licensed real estate agents are able to undertake the selling of someone else’s property to the public at large. While this program doesn’t help you get the licensing we have actually had estate agents do this program to advance their knowledge and skills.
These are people who let out properties (to tenants) on behalf of owners who want to collect the rent on the property rather than use the asset themselves for some reason. Many of the larger real estate firms now refer to “leasing agents” as being involved in the “occupier solutions area”.
Property and asset managers
These are people who manage the residences or buildings on behalf of an owner in terms of dealing with the tenants’ concerns, negotiating with tradesmen to attend to problems in the building or the fixtures and fittings in the building such as the plumbing and electricity and so on. These property managers also look at the condition of the property from time to time and how the tenants are looking after the building and also a collection of the rent and whether it is being paid on time and is up-to-date.
Real estate lawyers
The real estate industry is so large and so important that many lawyers make a specialty out of understanding real estate law and advising clients.
Valuers (or appraisers)
Valuers are licensed so that they can give an opinion on the value of the property (or even a market rent on the property) to a variety of clients who may be interested in acquiring or renting these properties. Listen to Neil Hollingsworth, a well-established highly regarded valuer in Victoria, Australia discuss Valuation as a job. We will talk more about the valuation profession throughout the course.
The local governments are responsible for appropriate local area planning, including the zoning of properties. The planning departments of these local governments are charged with looking after the interests of the whole neighbourhood and take very seriously what can be built in the local area. Many property consultants advise property developers in dealing with these local government planners.
State and federal government departments
Not only are the property sections of state and federal government departments involved in buying and selling property assets for and on behalf behalf of these governments, the governments also regulate on substantial developments and certainly get involved and the taxation implications of properties and property development. We will talk more about this area later.
Because property can require a substantial amount of money, a mortgage finance industry has developed. Aside from the direct lending that the banks and financial institutions might do for people wanting to buy property or develop property, a mortgage broking industry provides a significant number of jobs in the areas of construction finance and long-term acquisition finance.
Read through the most recent Avdiev report, listing some selected industries and average Australian remuneration that is earned.
Can you identify a report similar to the Avdiev report for your country?
Can you think of some other property related jobs in your country? How do average salaries of various property related jobs compare with your national average salary?
Add your thoughts to the Comments section.
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