GREEDY real estate agents have fleeced homeowners, tenants and landlords by increasing sneaky fees and charges by 16 per cent over the past year.
Preying on the rental and property markets across the country, agents have subsidised their income from home sales and commissions with an increases in hidden costs.
Consumer advocates have branded the cash grab a cynical attempt by agents to keep bank accounts bulging regardless of the state of the property market.
The real estate rip-off was revealed by the Australian Bureau of Statistics in their producer price index released yesterday that showed the annual rise in business costs and charges.
While Australian businesses overall recorded a 4.8 per cent increase in the past year, real estate agents fees and charges increased by 16.57 per cent.
The index covered charges for commissions, advertising and property management fees. Some agents even charged for the paper their bills were printed on.
Real estate consumer advocate Neil Jenman said the figures showed that people did not realise the inflated costs agents charge.
"If the general public knew what happened behind closed doors they wouldn't use real estate agents,'' Mr Jenman said.
"And for every extra dollar a landlord gets by raising rents, the agent gets another 7c or 10c as well.
"In New South Wales the greatest hidden charge is the kickbacks in advertising. For example, an agent may pay $100 a month to advertise a property as much as they want -- and can then charge whatever they want to their customers.''
Real Estate Industry of Australia president Noel Dyett said the 16 per cent increase could be skewed by the significant increases in the upper-end markets of Sydney and Melbourne.
"Obviously agents generally work on a commission so as property prices increase the commission percentage doesn't actually change but the quantum will increase,'' he said.
"Statistics can show things that might not be reflected across the market and certainly, to my knowledge, there has been no significant increase to agents' commissions.
"As far as advertising goes, that reflects the cost rises shown in the CPI and for the advertising industry because the agents pass on those costs without generally adding anything to them.''
National Australia Bank senior markets economist David de Garis said the producer price index was "quite'' higher than market expectations and showed inflation was back on the horizon.
http://www.news.com.au/business/mone...013951,00.html
Preying on the rental and property markets across the country, agents have subsidised their income from home sales and commissions with an increases in hidden costs.
Consumer advocates have branded the cash grab a cynical attempt by agents to keep bank accounts bulging regardless of the state of the property market.
The real estate rip-off was revealed by the Australian Bureau of Statistics in their producer price index released yesterday that showed the annual rise in business costs and charges.
While Australian businesses overall recorded a 4.8 per cent increase in the past year, real estate agents fees and charges increased by 16.57 per cent.
The index covered charges for commissions, advertising and property management fees. Some agents even charged for the paper their bills were printed on.
Real estate consumer advocate Neil Jenman said the figures showed that people did not realise the inflated costs agents charge.
"If the general public knew what happened behind closed doors they wouldn't use real estate agents,'' Mr Jenman said.
"And for every extra dollar a landlord gets by raising rents, the agent gets another 7c or 10c as well.
"In New South Wales the greatest hidden charge is the kickbacks in advertising. For example, an agent may pay $100 a month to advertise a property as much as they want -- and can then charge whatever they want to their customers.''
Real Estate Industry of Australia president Noel Dyett said the 16 per cent increase could be skewed by the significant increases in the upper-end markets of Sydney and Melbourne.
"Obviously agents generally work on a commission so as property prices increase the commission percentage doesn't actually change but the quantum will increase,'' he said.
"Statistics can show things that might not be reflected across the market and certainly, to my knowledge, there has been no significant increase to agents' commissions.
"As far as advertising goes, that reflects the cost rises shown in the CPI and for the advertising industry because the agents pass on those costs without generally adding anything to them.''
National Australia Bank senior markets economist David de Garis said the producer price index was "quite'' higher than market expectations and showed inflation was back on the horizon.
http://www.news.com.au/business/mone...013951,00.html
