FLEXIBLE HOUSING SUPER FUNDS AND PROPERTY LEANING IN? Properties to suit every stage of life The evolution of SMSFs and real estate investment Achieving gender equality in property AUSTRALIA AND NEW ZEALAND
PROPERTY JOURNAL June 2014 Vol. 4 / No. 6 $12.95 (incl GSGST)T)
IN TRUST THE PROPERTY MARKET? INVESTOR CONFIDENCE, ECONOMIC OUTLOOK AND BUYER PROFILES
Print Post Approved PP246764/00006 A.R.B.N. 007 505 866 ABN 49007 505 866 ISSN 1836-6635 PINZ ISN 100 1330
THE OFFICIAL JOURNAL OF THE AUSTRALIAN PROPERTY INSTITUTE AND THE PROPERTY INSTITUTE OF NEW ZEALAND
OFC.indd 1 6/20/2014 5:50:51 PM
BIGSAVINGS ON PREMIUMS
ENSURE YOUR PI BROKER IS AWARE...
Woodina_DPS_June2014.indd 2 6/16/2014 11:06:50 AM ...THERE IS A NEW VALUERS PROFESSIONAL INDEMNITY PLAYER IN TOWN
QUICK QUOTE TURNAROUND
API APPROVED WORDING $ UP TO $10,000,000 CAPACITY IN-HOUSE SOLICITORS HANDLING CLAIMS 40 IN EXCESS OF 40 YEARS OF UNDERWRITING EXPERIENCE
www.woodina.com.au/new-valuers-pi-capacity PHONE: 07 3222 9400 • EMAIL: [email protected]
Woodina_DPS_June2014.indd 3 6/16/2014 11:10:54 AM CONTENTS JUNE 2014
573 TRUST IN THE PROPERTY MARKET? Property trusts, investment advice and buyer profiles
REGULARS FINANCE LEGAL
536 API NATIONAL 572 QUARTERLY MARKET DATA 585 LEGAL NOTEBOOK PRESIDENT’S REPORT Recent cases, headline issues 576 THE EVOLUTION OF SMSFs and new legislation 540 API MEMBER SPOTLIGHT AND REAL ESTATE Tim Rabbitt, a director of Taylor 589 COMPENSATING FOR Byrne Valuers 581 CONFIDENCE IN THE A-REITS ECONOMIC LOSS CAUSED BY NEW PROJECTS 542 LEADERS IN THOUGHT Margaret Lomas: ‘Budget winners and losers’
544 OPINION Rita Avdiev: ‘Your brand and you’ 589 530 ANZPJ JUNE 2014
530-532_TableOfContents.indd 530 6/20/2014 5:31:33 PM Smart Insurance Solutions For Property Valuers
Coverforce Insurance Broking At Coverforce, we know how have been assisting valuers hard you’ve worked to build your and property professionals with business, that’s why we’ll work just Professional Indemnity and as hard to protect it. general insurances for more than 13 years. Find out why more valuers and property professionals are Our expertise allows us to deliver choosing Coverforce, call us today market leading solutions that offer for a free policy comparison or to both genuine protection and real obtain an obligation free quotation. value for money.
1300 026 837 coverforce.com.au/valuers AFSL 302522 ABN 11 118 883 542 FEATURES
THE IVSC GUIDE TO THE BRIGHT YOUNG 546 AUDIT PROCESS 550 THINGS How to attract and retain young talent
FLEXIBLE HOMES 559 Properties to suit every stage of home ownership
LEANING IN? ACQUISITIONS POPULATION AND 555 Achieving gender equality 563 A multi-disciplinary approach 568 HOUSING DEMAND in the property sector Is the supply of new dwellings insufficient? LIFESTYLE
596 GADGETS 598 EVENTS 594 AUSTRALIA’S BEST Reviews and snapshots Hosted by the Young PROPERTY RELICS of new useful devices Property Professionals
532 ANZPJ JUNE 2014
530-532_TableOfContents.indd 532 6/20/2014 3:58:00 PM Discover a unique way to manage your real estate life-cycle to help drive value from your portfolios
YARDI Voyager 7STM Smarter Commercial Management
Real Estate Investment, Asset and Property Management Software Use a smarter approach to managing your entire property lifecycle. Yardi’s solutions allow employees to focus on delivering first class service to investors, clients and tenants by working more efficiently with mobile access to information that is critical to maintaining the successful operation of your retail, office and industrial portfolios. For more information call +61 (2) 8227 2200 www.yardi.com.au PUBLISHER PANEL NATIONAL OFFICE Australian Property Institute Interim Operation Manager (temporary position) Financial Accountant Venus Barredo Recruitment in process 6 Campion St, Deakin, ACT 2600 Head of Online Zoe Rowley CFO Andrew Tregenza API Postal Address Professional Standards Manager PO Box 26, Deakin West, 2600 Executive Assistant!Jill Lewis Tony McNamara Property Institute of New Zealand Head of Technology Iain Smith Professional Indemnity & Compliance Manager Level 5, 181 Willis Street, Recruitment in process Wellington, New Zealand Education Standards Manager Tracy Kriesel National Compliance & Audit Offi cer Financial Accountant Zainab Mwamtenda Carl de Vos Editor: Bonnie Gardiner API PINZ Production Manager: Rohan Pearce National President Robert Hecek National President Blue Hancock Sub Editor: Rebecca Merrett Senior Vice-President Tyrone Hodge Immediate Past President Phil Hinton Creative: Fletcher Guinness Junior Vice-President Robert Smyth National Board Art Director: M Clough, P O’Reilly, P Mautz, B Hancock, Lee McLachlan Immediate Past President Tony Gorman I Campbell, G Ball, T Dick, T Naylor, Account Director: Kerry Frances National Council P Merfi eld (Independent Director), K President and Publisher: Barbara Simon A Cubbins (TAS), T Hodge (NSW), Grindley (Young Leadership Program) M Kay (SA), R Smyth (ACT), Chief Executive Offi cer David Clark J Jacono (VIC), C Shaw (Legal Advisor), EDITORIAL COMMITTEE D Volk (WA), P Western (NSW - Past President), P Willington (QLD), Nicholas Managing Editor: Kelli Wells Van Beek (Young Property Professionals) • Michelle Glastris • Professor Chris Eves PRODUCED BY
• Sean Ventris IDG Communications for the Editorial Australian Property Institute. [email protected] • Ian Flynn Advertising • Carina Cowham [email protected] • Tracy Kriesel Ph: + 61 2 9902 2706
• Chris Eves Level 10, 15 Blue Street, Subscriptions North Sydney, NSW 2060 [email protected] Ph: +61 2 9902 2700 Ph: +61 2 6282 2411 CONTRIBUTORS The Australia and New Zealand Property Journal is published by the trademark infringement, breaches of copyright, licences and royalty, slander, Rita Avdiev, Nermin Bajric, Australian Property Institute (API) and the Property Institute of New unfair competition, trade practices and any violation of the rights of privacy. Zealand (PINZ) for the members. Authors, contributors and advertisers warrant that the material Chris Catanzaro, Bruce Coode, The Publishers invite authors to submit articles of interest supplied complies with all laws and regulations and that publication of Jessica Darnbrough, Dennis Eagles, that further professional practice in the property industry. Articles the supplied material will not give right to claims of liability or are being of 500 to 5000 words will be considered. Guidelines for authors are capable of being misleading or deceptive or in breach of respective laws Roy Farthing, Isabella Ferguson, available from the publishers. in all States and Territories of Australia and New Zealand. Bonnie Gardiner, Robert Hecek, The Publishers reserve the right to alter or omit any article or At times, the Australia and New Zealand Property Journal advertisement submitted. Authors and advertisers indemnify the publishes technical material to assist professional practice as supplied Tony Ibrahim, Lindsay Joyce, Publishers and publishers’ agents against damages and liabilities that by authors and 3rd party sources. The Editor accepts no responsibility Cameron Kusher, Margaret Lomas, may arise from the published material. for the expressions, opinions, outcomes or effectiveness of formulas Advertisers, advertiser agents and representatives lodging material or calculations contained in those articles. Readers should seek James Morse, Tim Mendham, with the Publishers indemnify the Publishers, its servants, staff and agents independent, specialist advice on matters concerning business Elias Plastiras, David Veerman, against all claims of liability or proceedings in relation to defamation, practice, fi nancial outcomes and legal implications. Kelli Wells IDG Communications Pty Ltd (IDG) is the publisher of this magazine on behalf of the Australian Property Institute. If you choose to accept offers, enter competitions or complete surveys contained within the Journal you may be required to provide information about yourself to the Australian Property Institute who will use this information to provide you with products or services you have requested, and may supply your information to contractors that help IDG and the Australian Property Institute to do this. Unless you tell us not to, IDG and the Australian Property Institute may also use your information to inform you of other products, services and events, or give your information to organisations that are providing special prizes or offers and that are clearly associated with the offer. For information on how the Australian Property Institute respects and protects your personal information, and how to change your privacy preferences please visit http://www.api.org.au/ folder/footer-links/privacy-policy or please contact the API Privacy Offi cer by emailing [email protected]
534_Publishers_Information.indd 6 6/20/2014 5:38:30 PM EDITORIAL COMMITTEE THE AUSTRALIA AND NEW ZEALAND PROPERTY JOURNAL EDITORIAL COMMITTEE
All submissions for the Australia and New Zealand Property Journal are reviewed by the Editorial Committee. This group is made up of experienced professionals, academics, educators and journalists who contribute their expertise to ensure content is valuable to members of the Australian Property Institute (API), the Property Institute of New Zealand (PINZ) and the broader property profession. COMMITTEE MEMBERS
SEAN VENTRIS TRACY KRIESEL
Sean Ventris is a corporate lawyer with CSR Tracy Kriesel commenced work with the API Limited and heads up the in-house legal team in 2011 as the Online Education Offi cer, running in Sydney. He has specialist expertise in M&A, commercial the Future Property Professionals (FPP) and e-learning property, corporate and commercial negotiation, dispute programs. She took over as Education and Training resolution, corporate strategy, and major projects. Mr Ventris Manager in 2012 after her collaborative work with partner has also specialised in Property, Environment and Major universities, accreditations, and membership qualifi cation Projects fi elds. enquiries. Ms Kriesel was promoted to Education Standards Manager mid-2013. MICHELLE GLASTRIS KELLI WELLS Michelle Glastris has just fi nished her PhD and has served as Senior Economic Strategy Advisor Kelli Wells is Managing Editor of the Australia at the City of Sydney Council, as well as various senior and New Zealand Property Journal, in addition roles with leading organisations. Ms Glastris has expertise to her work with the API national offi ce in media liaison in property investment, funds management, research and and communications. Ms Wells brings 20 years of solid advisory with a strong interest in urban development and experience in the media and communications industry to the geography; strategic planning and development performance. editorial committee, including extensive work in journalism, sub-editing and editing for print media all over Australia. IAN FLYNN CARINA COWHAM Ian Flynn is a valuer with over 32 years’ experience, specialising in rural properties. Carina is a Senior Property Manager at Jones He is an effective researcher with a keen sense of property Lang LaSalle and has over 10 years’ property utilisation, realty law and real estate history, and an management experience. Ms Cowham is an Associate experienced liaison with government departments. He was Member of the API, and has held the Chair position of the a long-term Senior Property Valuer with the Australian API’s Young Property Professionals (YPP) network in 2010- Valuation Offi ce and has been an API member since 1977. 2011 as well as a position on the NSW Divisional Council. Ms Cowham continues to work closely with the YPP. CHRIS EVES
Professor Chris Eves is the Academic Program Director for Urban Development and a Professor in Property Economics at the Queensland University of Technology. He has worked as a senior lecturer at the University of Western Sydney, as Professor of Property Studies at Lincoln University, and has also been employed with the State Bank of NSW in valuation, rural lending and credit administration.
535
535_EdCommittee.indd 535 6/20/2014 5:09:28 PM API PRESIDENT’S REPORT
Introducing the new National President of the Australian Property Institute, Robert Hecek FAPI.
THE API’S BEGINNINGS The API was incorporated in 1926 as the Commonwealth Institute of Valuers. The inaugural meeting was held in an Adelaide hotel on the 5 November 1926, with a total of 17 members. The meeting was chaired by the first President, Colonel A.C. Catt. The API’s constitution was drawn up based on the membership of 1926 to meet the needs of the day. Today, 88 years later, we have some 8000 members. Our membership now includes residential, commercial, business,b plant and machinery valuers, plusp property analysts, investment advisors,a property fund and asset managers,m facility managers, lawyers, propertyp researchers and academics. However,H our structure and the constitutionc remain the same. ANA EVOLVING INDUSTRY TheT property industry today comprisesc an array of different professionals.p We are in the era ofo enormous change as we bear witnessw to increased efficiency, advancinga technology and innovation. OurO stakeholders require — and demandd — a new level of efficient reporting,r speed and quality. We
536 ANZPJ JUNE 2014
536-537_ANZPJ_June14_PresidentsReport.indd 536 6/20/2014 5:37:41 PM API PRESIDENT’S REPORT API NATIONAL PRESIDENT’S REPORT
must embrace these fast-growing The main points were: aligned to the needs of members, improvements in technology to 1. Prepare a five-year strategic particularly in relation to remain relevant. Our members will plan in consultation with organisational structure, governance progress by streamlining business members/divisional councils. processes, vision and strategy. practices, efficiency in the workplace, 2. Prepare proposed The new Board has already and the development of time saving amendments to constitution proceeded with this mandate, seeking processes. The API must evolve and by-laws by 2015 AGM. prompt implementation of the points and restructure accordingly. 3. Appoint an independent accountant adopted and, in consultation with We now have a united, strong within 40 days to report in three members and stakeholders, progressed National Board of Directors that months on cash flow, reserves, monies with a structured strategic plan to is committed to driving change in trust, income and expenditure, and streamline our organisation and move for all of the API members. make report available to members. towards a modern constitution. 4. Arrange a governance and This will be a time of change and HOW DO WE DELIVER? structural review; an independent/ open governance. The Board is available You have voted for the motions facilitated organisational review of to you, the members, at any time if you tabled at the AGM, which outlined existing structures, processes and have any questions about the future the expectations of members and systems — make recommendations plans of your Institute. What we build also serves the National Council about the appropriate options to now will stand for another 88 years. as a blueprint for the future. ensure the API is operationally I thank you all for your support.
ROBERT HECEK BIOGRAPHY Mr Hecek joined the API as an 2009 and 2010 (two terms) Australian valuers the first in the associate in 1983, and became a • Formed and increased the function world to have capped liability Fellow in 2000. He formed valuation and relevance of the API Banking • Member of the Future Valuations practice, Valuecorp, in 1980. He is and Finance Committee, now Taskforce. Helped revise passionate about the API members the crucial place of interaction the Property Pro Supporting and the future of the Institute. between API, LMI, and banks, Memorandum, which is the • Elected National President all regular attendants of the basis of all reporting standards on 29 May 2014 Committee’s bi-monthly meetings for residential valuations • Appointed API National Vice • Member of the Marketing • Formed a new compulsory President, May 2012 Committee from 2006 to 2009 Residential Standing Instructions • Appointed to the Professional • Represented the API NSW in educational online module to Indemnity Insurance Committee presentations to first year property lift and improve the quality in its early beginning in 2003 students, property industry and of report writing standards as • Appointed to Marketing Federal and State Government leaders required by all stakeholders Committee in 2006 • Appointed Chair of Professional • Completed and implemented • Elected to NSW Divisional Indemnity Insurance Committee Australian Banking and Council in 2006 in 2008. Helped develop and Finance Industry Residential • Elected Vice President, implement Capped Liability Valuation Standing Instruction, NSW Division, in 2008 Scheme (APIV). The scheme the first of its kind for the • President, NSW Division, in commenced December 2010, with Australian valuation industry
537
536-537_ANZPJ_June14_PresidentsReport.indd 537 6/20/2014 5:10:14 PM API NEWS
UPDATES FROM THE ANNUAL GENERAL MEETING Following its recent national AGM in Canberra, the API will be embarking on a governance and structural review.
new API National “We will continue to other interests. Ms Lehman Council was given provide progress updates and several past National a solid mandate to members, and continue Councillors including Milton to implement with dedicated and planned Cations, Bob Dupont, Tony long-planned progress towards restructure Gorman and Cameron changesA to the organisation with vision and strategy.” Harris received awards and at its recent AGM. After a There was a marked increase acknowledgement for their challenging 12 months, new in member interest in the AGM contribution and services to API National President, Robert this year, with an unprecedented the API. Bob Connolly, in Hecek, said agreement on number of votes being recorded, particular, received an award for cohesiveness and a collaborative and almost 80 members present. services to the API, especially approach to service members Some members spoke for the in the area of international was cemented at all levels three motions, and the majority relationships through his of the organisation. of members voted for these work with the IVSC. The API has established a motions, which were all passed. In addition to Mr new Governance Committee Mr Hecek acknowledged Hecek, the API National and Executive that will have the high attendance and Council now comprises: oversight of several key said members’ response projects, which will ensure was exceptional. Andrew Cubbins (TAS) that the API is positioned to “National Councillors Tyrone Hodge (NSW) meet membership needs and began work the very next day Mark Kay (SA & NT) provide a sound foundation on the mandate passed at the Justine Jacono (VIC) of the API as the pre-eminent AGM. We are united and will Robert Smyth (ACT) home of property professionals. work tirelessly. We assure Dennis Volk (WA) “Members have a united members that they will see Philip Western (NSW and dedicated Board that positive changes that will be – past President) is absolutely committed to of great benefit to them and Philip Willington (QLD) implementing the changes to the API as an organisation Chris Shaw (independent agreed to by all. This is for the future,” he said. legal advisor) a new progressive Board Mr Hecek also acknowledged Nicholas van Beek (Young that will be built upon the the work of the now former Property Professionals) foundations of transparency API National Professional and communication with Indemnity & Compliance The API’s 2013 Annual all members and divisions,” Manager, Betty Lehman, Report is available at said Mr Hecek. who has moved on to pursue www.api.org.au
538 ANZPJ JUNE 2014
538-539_ANZPJ_June14_AGMupdates.indd 538 6/20/2014 5:10:51 PM API NEWS
LEFT: FORMER INTERIM WE WILL CONTINUE NATIONAL DIRECTOR CLYDE TO PROVIDE EASTAUGH, WITH API EDUCATION PROGRESS UPDATES STANDARDS MANAGER, TRACY TO MEMBERS, KRIESEL (LEFT), AND SOUTH AND CONTINUE AUSTRALIAN DIVISIONAL WITH DEDICATED PRESIDENT, BROOKE PARISH AND PLANNED (RIGHT) PROGRESS TOWARDS BELOW: ROBERT HECEK RESTRUCTURE ADDRESSING THE AUDIENCE AT WITH VISION AND THE LATEST AGM IN CANBERRA STRATEGY.
539
538-539_ANZPJ_June14_AGMupdates.indd 539 6/20/2014 11:00:14 AM API NEWS MEMBER SPOTLIGHT
In this HOW DID YOU GET YOUR START IN in every state. I have made a number of good edition of the THE PROPERTY INDUSTRY? friends throughout the industry. Australia and I started in the property industry in February I also enjoy Taylor Byrne, I’ve been lucky to New Zealand 1987, basically straight out of school. I was have the support and friendship of the directors Property employed as a cadet valuer by the then and shareholders, and helping to grow our Queensland Electricity Commission, based business has to be one of the best parts of the job. Journal, we in the southern regional office in Brisbane. shine the I worked full time and attended college part COULD YOU TELL US A BIT ABOUT YOUR member time, going to classes three nights a week BACKGROUND AND SPECIALITIES? spotlight on through the old Gatton Agricultural College I generally undertake valuation or TIM RABBITT, (now the University of Queensland). compensation assessments for acquisition a director Valuers in the property section of the matters, including road and rail corridors, Electricity Commission were involved in power and gas easements, dams and other of Taylor valuations, compensation assessments and matters. In addition, I undertake a lot of work Byrne Valuers. negotiations for the acquisition of easements for for gas and coal companies for land acquisition the high voltage electricity distribution network and compensation matters. in Queensland. I started in the electricity industry and the valuations we did there were all for acquisition WHERE ARE YOU CURRENTLY WORKING? purposes. We had to meet with owners to I am a director of Taylor Byrne Valuers. Taylor discuss compensation for the acquisition Byrne is a single company valuation business of powerline corridors and negotiate the that has 22 offices in Queensland and Northern compensation settlements. New South Wales, and operates throughout I enjoy the challenge of the valuation Queensland, NSW, Victoria, the Northern process in compensation and litigation matters, Territory and Western Australia. and I enjoy dealing with landowners. I have provided advice to numerous government, HOW DID YOU COME TO HAVE THIS ROLE? private and corporate bodies, and my career I joined Taylor Byrne in 1993 at the invitation just grew from being in the right place at the of one of our former partners, Russell Brown. beginning then continuing to work at it. Russell and I had been on opposing sides in a I have also done further study in agricultural compensation matter and we got to know each economics and undertaken valuations for other through that. We kept up a friendship certain specialist rural properties including and when an opportunity arose I moved over orchards, quarries and abattoirs, among others. to Taylor Byrne. I worked my way up through Taylor Byrne and became a director in 1999, WHY DID YOU CHOOSE TO PURSUE then was elected managing director in 2013. A CAREER IN THIS AREA? After I started doing acquisition type work with WHAT ARE THE BEST PARTS OF THE JOB? QEC I found that I enjoyed it. I joined Taylor Not having to be tied to a desk every day. Byrne because they had a strong litigation Valuation has been good to me, I have had the and compensation valuation business and I opportunity to travel throughout Australia and continued to specialise in that type of work as undertake jobs for a wide variety of purposes soon as I joined the firm.
540 ANZPJ JUNE 2014
540-541_ANZPJ_June14_MemberSpotlight.indd 540 6/20/2014 5:30:36 PM API NEWS
WHAT DO YOU THINK ARE AMONG VALUATION HAS BEEN THE BIGGEST CHALLENGES GOOD TO ME, I HAVE HAD FACING THE PROPERTY INDUSTRY? THE OPPORTUNITY TO There are a number of challenges facing the TRAVEL THROUGHOUT valuation industry at the moment, including AUSTRALIA AND keeping our professional standards up in an UNDERTAKE JOBS FOR era where we are moving to larger firms and A WIDE VARIETY OF providing bulk valuation work. PURPOSES IN EVERY Fees are always an issue, as is the STATE. I HAVE MADE rising cost of doing business, including A NUMBER OF GOOD insurance premiums. FRIENDS THROUGHOUT WHAT ARE YOUR PLANS FOR THE INDUSTRY. THE REMAINDER OF 2014? At a business level, I want to help the company to continue to grow and expand. We have recently opened new offices in Tamworth and Newcastle, and are looking to open other new offices throughout regional NSW in the near future. WHY DO YOU BELIEVE A MEMBERSHIP ORGANISATION SUCH AS THE API IS IMPORTANT TO PROPERTY PROFESSIONALS? The API is the peak professional body for property professionals, and membership of the Institute is recognition of your skills and professionalism. The API is also well recognised throughout Australia and well accepted by our clients. Membership organisations such as the API are important for helping to protect our members’ interest, as well as providing a range of benefits and services to members. WHAT ADVICE WOULD YOU OFFER TO UPCOMING PROPERTY PROFESSIONALS? Work hard, don’t take short cuts and do a good job each and every time. You only have one reputation.
541
540-541_ANZPJ_June14_MemberSpotlight.indd 541 6/20/2014 4:02:06 PM OPINION
LEADERS IN THOUGHT BUDGET WINNERS AND LOSERS
For this special financial roperty investors and prices and white-hot rental yields are home owners are numbered, at least for now. Those with edition of the Property pondering the market, such property should hold past this Journal, MARGARET postulating on the time period, while those considering LOMAS outlook for the foreseeable entering this high-risk sector should discusses Pfuture and, in the case of investors, wait. There is great pain to come. how the latest Federal establishing where the most profitable Unemployment is also rising, markets may presently exist. though forecasts show it should peak Budget will affect the The first Hockey Budget seemed at around 6.5% before stabilising, property sector. to carry little, or nothing, in the way then falling. Areas heavily focused of benefits or drawbacks for property on manufacturing will feel the investors. Many were expecting some sting, with job creation soft in that impact upon negative gearing — either sector. Stay away from one-industry total removal, or a tweaking of towns and look instead to areas allowable deductions — but not a with a diversified industry base. word was said. Meanwhile, the The Australian dollar is forecast debate rages between economists to fall as this Budget begins to ramp and property experts over the true up, going back to parity after the first bottom-line impact of negative three years. Property in areas relying gearing, and how its removal would on tourism to boost local economies ultimately affect what is currently are likely to appear attractive to a robust property market. investors, as domestic vacations once What the Budget lacks in actions again become more economical than affecting property investors, it an overseas trip. However once that makes up for in areas that affect parity is again reached, these same property prices, and presents a pretty properties are likely to bear the brunt good basis to make some forecasts of any softening in prices. Investors regarding the short- to medium-term should see the window of opportunity investing landscape. Let’s start with in tourist areas as short. Speculators the negative impacts, which seem few. can make short-term returns, but Mining investment is forecast those preferring to buy and hold to extract from the economy in the should stay out of such markets. coming three years, rather than inject The positive impacts of the into it. While the economy is still Budget are many. While the upswing expected to grow, I feel that property in in dwelling approvals continues disaffected mining towns will continue in New South Wales, Victoria and on the downward slide. The days of Queensland, fostered by the lasting skyrocketing mining town property low interest rate environment
542 ANZPJ JUNE 2014
542-543_June14_ThoughtLeader.indd 542 6/20/2014 4:04:15 PM OPINION
UNLESS A COMPLETELY UNFORESEEN ECONOMIC values trend and, barring any future TSUNAMI ONCE AGAIN HITS THE WORLD, THE negative changes to company tax rates, STRONG ECONOMY WE SEE EMERGING TODAY this should be sustained into 2017. CERTAINLY DOES NOT CARRY WITH IT ANY With increased spending impacting TALES OF IMPENDING WOE. positively on retail sales, we are also likely to see rents improve in this sector. Is there a bubble? Is the bust expected to remain with us into imminent? Are the doomsayers 2015, this will start to slowly impact right, and will our property market property prices as supply increases spectacularly slump and send us all into to more closely match demand. financial ruin? I simply cannot see any Victoria has the lowest rate of impetus for this, and unless a completely dwelling approval improvement and unforeseen economic tsunami once may be the last to see prices begin again hits the world, the strong economy to flatten. Having said that, there we see emerging today certainly is a strong case for optimism in the does not carry with it any tales of Brisbane suburban market in both the impending woe. Look for markets with mid- and outer-ring. While a Sydney improving populations, low dwelling family can afford property to the supply, increasing median household value of $640,000 (the median price incomes and diversified employment is $775,000) and a Melbourne family opportunities, along with median prices can afford $500,000 (median price is below what the average income earner $625,000) lucky Brisbane families can can afford, and you will definitely ride actually afford to pay $590,000 (while the coat tails of some impressive returns the median is just $470,000). This in the coming three to five years. affordability alone should provide the impetus for house price growth above trend while interest rates remain low, Margaret Lomas is founder and presenting both a highly attractive director of Destiny Financial Solutions; option for owner occupiers, and host and producer of two weekly with rental yields over 6% in many property investment shows on Sky suburbs, a solid return for investors. News Business, as well as best-selling Finally, commercial finance is author of seven property investment booming and business confidence, books. Ms Lomas is also past chair and already improving, will likely respond current board member of the Property well to the cuts in the company tax Investment Professionals of Australia rate offered in this budget. Offices (PIPA), in addition to being a senior and shops are starting their upward associate with FINSIA.
543
542-543_June14_ThoughtLeader.indd 543 6/20/2014 4:05:29 PM OPINION
YOUR BRAND AND YOU
Rita Avdiev explores the evolution of the brand, the role it plays for both business and for the individual, and the importance of self-promotion.
ou’re simply the best! of service offerings, and the occasional When your employer is under Better than all the rest. demise of a dud CEO. attack by social media, do you duck Self-promotion can be Brand management has been the for cover or fight back, 140 characters an ego trip as well as an key. This is a new profession in charge at a time? essential tool in the personal of the intangible assets of a company, How much have you relied on your survivalY kit of the 21st century. employer’s image of integrity and good Can this be built into a personal name to enhance your own? It is easy brand, and can it be extended into THE LATEST TOOL IN for a personal brand to be subsumed by the creation and development of a YOUR SURVIVAL KIT a powerful company brand, but cutting company — your company? — THE ‘SELFIE’, THE loose can be an act of cowardice or The brand has a long history, TWEET, THE PROFILE, survival. Loyalty is laudable, but is starting as proof of ownership AND THE BLOG CAN rebuilding one’s own brand essential? stamped on livestock, evolving ENHANCE OR DESTROY Adapt or die! through hallmarks and trademarks, YOUR CREDIBILITY. In this ‘age of me’, modesty and becoming a crucial demarcation in moderation is so yesterday, and self- a rapidly growing and crowded post promotion is so cool! Spread your wings, industrial marketplace. promoting its image quality, values, rise from the ashes and fly into your new The brand was firmly established client relationships and services. incarnation, your new brand. when the titans of the early 20th But the brand manager is not the century (think Henry Ford, J.P. business development manager. That Morgan) used their charisma and work is left to the skilled promoters style to promote their wares. They and the consummate networkers who dominated their market sectors, their can sniff out new business, cut out the names became synonymous with their competition and get the deals done. products — and they still are. How much does their personal Advertising agencies got on board, brand contribute to success? creating marketing strategies and How was this brand created? The brand loyalty slogans. Professional confident ones, projecting a personal associations and offspring of ancient presence of intelligence, maturity, guilds formed to protect the collective emotional control and great charm, brand of each vocation, created ethical have worked on their brand for years, constraints and imposed strict controls some building on a foundation of on their members, especially on innate ability, others by watching advertising their services. role models and their body language, But resistance was useless. The and their ability to adapt their entrepreneurial members defied the style to suit. controls, watered down the rules and Social media can be friend or foe promoted their products and services. to your personal brand, as well as your The powerful legacy brands created employer company. The latest tool Rita Avdiev is managing director in the 20th century survived the exit in your survival kit — the ‘selfie’, the of property industry management of the founder, mergers with other tweet, the profile, and the blog can consultancy The Avdiev Group and companies, name changes, a new mix enhance or destroy your credibility. fellow of the API (FAPI).
544 ANZPJ JUNE 2014
544_ANZPJ_June14_RitaAdiev.indd 544 6/20/2014 11:02:38 AM Untitled-1 1 9/2/2013 1:38:01 PM AUDIT PROCESS
THE IVSC HAS RELEASED A PRACTICAL GUIDE TO THE AUDIT PROCESS
546 ANZPJ JUNE 2014
546-549_ANZPJ_June14_IVSCauditguide.indd 546 6/20/2014 5:35:19 PM AUDIT PROCESS
ROY FARTHING presents the salient points for valuers from a guide to the audit process recently released by the International Valuation Standards Council (IVSC).
arlier this year, the on the audit of listed companies. International Valuation The IVSC guide aims to raise Standards Council awareness among professional (IVSC) released A Guide valuers of audit procedures, to help to the Audit Process ensure that the service they provide Efor Professional Valuers, which enables a company’s management helps to demystify the sometimes to include high quality valuation arcane world of the accountant. estimates in their financial The IVSC guide describes the statements, and an auditor to more financial reporting environment, easily assess those estimates. the various roles of the independent Without clear lines of auditor and of the professional valuer, communication, transparency and and how those two professions need cooperation between valuers and to interact and cooperate in order to auditors, it is very difficult to achieve achieve what is required by financial these outcomes. The guide is intended reporting standards. It has taken to help raise awareness of the matters some three years to develop, and has that an auditor is required to consider involved widespread consultation in respect of valuations intended with professional organisations, for use in financial statements. By valuation providers, preparers of ensuring that the initial valuation financial statements and auditors. is fit for purpose and that there is a Valuations can have a significant proper dialogue between all parties impact on a company’s financial involved, many of the problems that performance but in recent years there have emerged can be resolved. has been increasing concern among The increasing use of a fair regulators, not only because of the value-based framework within both quality of the valuation estimates International Financial Reporting provided by management, but also Standards (IFRS) provides two the degree of scrutiny to which those situations where valuers can assist the estimates are subjected during the accounting and auditing profession. audit process. A recent survey of audit The first circumstance is by assisting regulators in more than 40 countries in the reporting of entity management, revealed that problems with valuation in estimating the fair value of the measurements came top of the list of reporting entity’s assets for their topics that had caused adverse reports financial reporting requirements.
547
546-549_ANZPJ_June14_IVSCauditguide.indd 547 6/20/2014 5:35:34 PM AUDIT PROCESS
The second circumstance arises if the whether due to fraud or error. It through past engagements, this reporting entity’s auditor requests the is important that the auditor be appreciation becomes especially assistance of a valuation professional independent of the reporting entity important with the revised ISA in auditing the fair value estimate. being audited. Users of the reporting 620 Using the Work of an Auditor’s Many readers may be surprised entity’s financial information — such Expert, issued in March 2009 by the phrasing adopted. Whilst as investors, government agencies, and now in effect for many audit valuers provide valuations and and the general public — rely on engagements around the world. valuation advice, it is the reporting an independent auditor to present Effective interaction requires entity’s management that is ultimately an unbiased audit report. mutual understanding of the responsible for estimating the fair Most auditors are required respective responsibilities of each value of the reporting entity’s assets. to follow auditing standards. professional involved in the audit From a practical perspective, in most The IVSC guide focuses on the process. For the valuer engaged cases, where management has obtained International Standards on Auditing to either act for the reporting independent third party valuations (ISAs) issued by the IAASB and entity or by the auditor, there from a professional valuer, it will invariably adopt those valuations without any adjustment; however, WE ONLY HAVE TO LOOK TO THE UNITED that is a matter for management to STATES TO SEE THAT THE LEVEL OF determine. Where management has DISCLOSURES AND INFORMATION REQUIRED relied on the advice of an independent BY THE AUDITOR WILL CONTINUE TO valuer, the auditor will need to make INCREASE. THE LEVEL OF SCRUTINY IN THE a judgment as to the quality and U.S. IS ANOTHER STEP HIGHER THAN WE HAVE reasonableness of those valuations. EXPERIENCED THUS FAR IN AUSTRALIA. Probably one of the most misunderstood roles is that of published by the International needs to be an appreciation of: the independent auditor, whose Federation of Accountants • The types of information that the duty is to express an opinion on (IFAC), which are widely used. auditor might request or discuss whether the financial statements In Australia, we rely on the with the professional valuer of a reporting entity have been Australian Auditing Standards (AAS), • The factors that significantly affect prepared in accordance with the which are based on ISAs but modified whether the valuer’s work will be applicable standards and present for the Australian environment. A adequate for the auditor’s purposes a true and fair view of the entity’s company complying with AAS would • The evaluations that the financial position and performance. be in compliance with ISAs. However, auditor is required to make This is achieved through a company complying with ISAs may based on the valuer’s work. obtaining reasonable assurance not be in compliance with AASs. I imagine that the majority of about whether the financial While many valuation professionals API member experiences in the statements as a whole are free will generally be familiar with financial reporting arena will be in from material misstatement, financial reporting requirements the provision of valuations, to assist
548 ANZPJ JUNE 2014
546-549_ANZPJ_June14_IVSCauditguide.indd 548 6/20/2014 5:35:51 PM AUDIT PROCESS
a reporting entity’s management disclosures in the valuation report will This article was written for those in estimating the fair value of that provide greater comfort to the auditor who perform valuations for financial reporting entity’s assets. Regardless that the valuation has been completed reporting purposes or review of whether the valuer is engaged robustly and independently, and valuations completed by others for by the reporting entity or by the will ultimately save the valuer this purpose. If you are interested in auditor, the valuation advice provided time and effort in explaining what learning more I strongly encourage should be in accordance with they have done after the event. you to log on to IVSonline, which can recognised valuation standards. We only have to look to the be accessed via the API’s or PINZ’s As a professional valuer United States to see that the level e-learning site. By visiting IVSonline operating in an accounting firm, I of disclosures and information you can access a wide range of IVSC have first-hand experience of both required by the auditor will continue materials including the publication circumstances. I know that when I to increase. The level of scrutiny that is the guide to the auditing am acting in the latter role (as the in the US is another step higher process, as well as the International auditor’s expert), many valuers are than we have experienced thus far Valuation Standards and Technical surprised by the level of scrutiny in Australia and can include the Information Papers. The API and required to support their valuations. auditor’s expert assessing whether PINZ have made this service available Suffice to say that “trust me, I’m information (e.g. comparable sales) to members free of charge; however, the valuer” won’t cut it anymore. relied on by the valuer is appropriate registration is required to log in. One of the most consistent and reasonable, completing Given that the API and PINZ problems is a lack of sufficient math checks, detailed reviews of have both adopted the IVS as their disclosures in valuation reports. inputs and assumptions, etc. over-arching standards, all members All significant assumptions that the Auditors use the services of should be familiar with them. valuer has made in reaching their professional valuers, either those IVSonline is a searchable site and valuation should be included in the within their own firms or external simple to use, and accessing the report. If something has a material experts, to complete these reviews. materials online also ensures that impact on value, the valuer should The auditor is therefore relying on you are looking at the most current include sufficient information in the someone who understands valuations version of each publication. report for an independent third party and knows how valuations should to be able to understand how they be completed. This means that they addressed that aspect in the valuation. can quickly identify weak spots in Roy Farthing FAPI, CPV (Plant & Lack of sufficient disclosures a valuation analysis and know the Machinery) is a partner with Ernst & will almost certainly result in the tough questions that need to be asked. Young in Melbourne where he leads valuer receiving questions from the And while the auditor’s expert the capital equipment valuation team. auditor’s valuation expert so that they will have regard to the professional Farthing is the immediate past chair can understand how the valuation valuer’s experience and qualifications, and current serving member of the has been done, and whether the it is not sufficient for an experienced Australian Valuation Standards Board methods and assumptions adopted valuer to stand on their reputation and the current vice chair of the IVSC are reasonable. Full and transparent and expect to avoid scrutiny. Professional Board.
549
546-549_ANZPJ_June14_IVSCauditguide.indd 549 6/20/2014 5:36:06 PM CAREERS
YOUNG THINGS
With the constant flow of young or every dominant generation that exists property professionals entering the in an industry, there workplace, BONNIE GARDINER will always follow a new generation of professionals explores the best ways to attract and Fthat are sure to startle and bewilder. retain young talent from a generation Many of today’s leading organisations were created and that votes with its feet. nurtured by Gen X workers who valued loyalty to the business above all, while the leaders of tomorrow are driven by self-satisfaction. Businesses must now work to appeal to younger talent, or risk losing them to the competition. Many might shudder at the thought of taking on university
550 ANZPJ JUNE 2014
550-554_ANZPJ_June14_YPPtalent.indd 550 6/20/2014 4:41:17 PM
CAREERS
students with no real practical Similarly, Tom Swete Kelly, reason being they’ve then got a skills, but according to recruitment assistant valuer with Urbis, says lot of temptation to look outside pros, this group is actually the he values his place in a supportive for other opportunities,” says least challenging and often leads company that won’t simply Warwick Bowd, national director of to a lower overall churn rate. throw him in the deep end. people and performance at Colliers. “The companies with good “I’m looking for a company “It’s incumbent on us to give recruiting strategies are the ones that’s really working to develop them a compelling reason to stay that are thinking they need to and retain young talent rather than with us at that point… it’s important pinch them as graduates,” says Brett just throwing all the work at them. to have a lot of focus on your high Nathan, director for Australia’s They’re always willing to answer potential people and make sure Leading Recruitment Agency questions; they’re always willing to that you’re looking after them.” (ALRA). “If you get them just help you improve,” says Swete Kelly. Bowd believes the strength of as they come out of university, Most graduates receive training Colliers also lies in its ongoing you can train them up in your via ongoing in-house workshops or by training and development efforts, systems, plot out their career path, attending company-run events. Greg sending workers to annual and they form a bit of loyalty.” Clarke, director of McGees Property, four-day intensive seminars via Indeed, many leading players has implemented a popular in-house its signature APAC academy. have successful graduate schemes learning program that sees people “They walk away from these events that offer mentoring, support and from different professions come in feeling re-energised and really clear exposure to mixed experiences. A and present each week. Speakers in terms of where they’re going from a great tactic employed by some is have ranged from air conditioning career perspective, and their skills are enhanced enormously,” says Bowd. It’s accepted, however, that attributes such as culture, flexibility “PEOPLE WANT TO ASSIMILATE. YOU HANG OUT and remuneration will also hold more WITH YOUR FRIENDS BECAUSE YOU LIKE THEM, value further down the career path. AND IT’S THE SAME WITH WORK. IF THEY DON’T “Working conditions, flexibility, ENJOY WHERE THEY ARE, THEY’LL LEAVE.” and allowing people to take time to study or to pursue other things is important,” says Tom Walton, associate director of Urbis and having their senior workers tutor technicians to leasing consultants. frequent mentor to younger workers. university students in order to scope Meanwhile, covering the costs of “Pursuing a better work-life out those with the most potential. external professional development balance has become a bigger Matthew Armstrong is a new and networking events offers a new talking point these days, as well certified practising valuer (CPV) with dimension of support — particularly as an awareness of the challenges Herron Todd White’s Sydney team. at a career stage when remuneration and stresses that can arise in the After starting with the company as a is not front of mind. workplace.” Being naturally more graduate in January 2012, Armstrong Rather than explore other options, social and collaborative, young says he now feels a sense of loyalty recipients of the graduate schemes people also hope for an element of to HTW for training and developing frequently go on to accept full-time fun and social enrichment in their him from an entry-level position to jobs with the firm, and even working workplace, whether it’s on the job or become the professional he is today. their way up to leadership positions. after hours. “It’s interesting, when “Since I’ve been at HTW there has Knight Frank’s Victoria division has you ask a young person who has always been the opportunities I’ve seen every graduate remain in the just started in a new job, they won’t wanted. I started from a student still business, while Colliers International necessarily talk about the actual job, completing university to a CPV in boasts retention of up to 20 years they’ll say it’s a really cool company, just over two years,” says Armstrong. for many of its workers — but that’s they buy us drinks on Friday, or the “To be eligible for CPV you must have not without its challenges. team is really nice,” says Nathan. two years’ experience with exposure “We probably have the biggest “People want to assimilate. You to all valuation divisions, and HTW challenge with people who’ve hang out with your friends because were willing to give me that training.” been here two to three years, the you like them, and it’s the same
552 ANZPJ JUNE 2014
550-554_ANZPJ_June14_YPPtalent.indd 552 6/20/2014 4:41:36 PM
CAREERS
with work. If they don’t enjoy where person points that they can redeem often lack a strong online presence they are, they’ll leave. So you have for holidays and products. and don’t utilise modern technology. to think about what will attract The concept of reward and “The use of technology is a big them, and I think that’s where a lot recognition is key, as “a pat on the factor in the attraction of graduates. of companies go wrong,” he adds. back can sometimes mean far more Custom-built software and tablet than any financial reward,” says Terry. devices make for efficient report REMUNERATION writing and quick turn-around times. Once a young professional has Many graduates would not be happy some experience, they will begin KEEPING MODERN making paper notes at an inspection, to focus on receiving appropriate An area often overlooked in as this is a stark contrast to university, remuneration — particularly as the property industry is the where the majority of work is done a recent tough job market has importance of keeping up with electronically,” says Howe. left them working hard for little new trends and technologies. to no wages at the outset. “The younger guys have been brought “I have a higher regard for up in the online era, and what comes NO FREE RIDES positions that can offer continuous with that is an appreciation of good Developing future leaders is a growth and experience. However, systems and good technology… tough job, and companies are not I also want the knowledge that Things like having a really nice solely responsible for an employee’s my ability to earn is on par with laptop or an iPad can make a world of professional development. You can the market,” says Heath Eggins, difference to a graduate,” says Nathan. lead a young professional to an assistant valuer from the HTW “Also, it reflects the image of opportunity, but you can’t make Brisbane residential office. the company; if you’re a smaller them succeed. The business must Armstrong similarly feels that firm and your website is crappy, ensure the young people they remuneration is a reflection of you’re not going to attract many hire will not expect a free ride. opportunities to progress in your career people. You might be the best From his experience as a mentor, which, if not offered by one’s current company in the world, but if your Walton advises that young people employer, will be offered elsewhere. image isn’t a nice modern one, are more likely to be successful “I would always like equal young people aren’t that fussed.” if they’ve made an effort to push opportunity for future roles and When it comes to recruitment, themselves out of their comfort zones. career… I think when I start a social media strategies can enhance “People that are willing to family I would want a position a company’s campaigns, as well as attend industry events, pick up the where I feel secure and my extending their overall reach. phone and talk to people, organise remuneration reflects my ability “A lot of the research for my coffees, lunches, and generally and work ethic,” says Armstrong. position was conducted online, be pro-active — they’re the ones Companies like Knight Frank through company websites and who’ve really excelled,” he says. ensure salaries are up to par by social media profiles,” says Eggins. “You can generally pick out the participating in the Aon Hewitt “I wanted to join a company that ones that are going to do well because property industry salary survey. had a modern and well-designed they get involved in extra-curricular “HR people talk about how social media presence and website, activities. Even in the job, there’s employees don’t leave for salaries, but as I felt this was indicative of the always room to do more, to get honestly if their salary is not what they firm’s culture and ability to compete involved with the industry groups want it to be, they do,” says Kirsten for, and retain, good staff.” and just put themselves out there. Terry, national director, human Calum Howe, another HTW “When people are talking resources with Knight Frank. graduate worker from its Botany about a suitable candidate for Reward programs also offer office, agrees that companies a role, those people’s names forms of engagement as well as struggling to attract younger talent come up, ” says Walton. fostering a culture of recognition and gratitude. Terry describes Knight Frank’s Knighthoods program, which allows employees to nominate SOCIAL MEDIA STRATEGIES CAN ENHANCE each other for contributions to the A COMPANY’S CAMPAIGNS, AS WELL AS business. This earns the nominated EXTENDING THEIR OVERALL REACH.
554 ANZPJ JUNE 2014
550-554_ANZPJ_June14_YPPtalent.indd 554 6/20/2014 4:41:52 PM DIVERSITY
LEANING Are we failing our young women? BONNIE GARDINER examines the property sector to determine what needs to be done to ensure women remain in the pipeline. IN?
ender inequality is Women were encouraged to join the a longstanding issue industry, and corporations begann that plagues almost making broad efforts to give womenmen all industries, though opportunities in the workplace. property has seen some “Property traditionally has beeneen monumentalG steps forward thanks to male dominated, but during my time efforts from men and women alike. in the industry I’ve seen tremendousdous Yet still today, as young change,” says Raynuha Sinnathamby,mby, women enter into property managing director of the Springfieldfield careers, they often find themselves Land Corporation. “I remember in outnumbered by their male peers. the ’90s when it was far more maleale dominated than today. Now if youou ggoo to property functions you see a mmuchuch STAGNATION more blended crowd… the windss Twenty years ago, diversity started of change have certainly blown.” to become a top priority among Despite this, according to a rrecentecent property organisations, much report released by the Property as environmental standards and Council of Australia (PCA), femalemale technological advancements are today. participation in property and
555
555-558_ANZPJ_June14_YPPwomen.indd 555 6/20/2014 4:17:31 PM DIVERSITY
construction has remained at a young women to see their way clear measly 13% over the last 10 years, to achieving success in the industry,” while the average annual salary for says Leanne Pilkington, managing female graduates joining the industry director of Laing+Simmons, who is about $9000 less than that of their has observed women often being male peers, according to a survey FEMALE overlooked for promotions. by Graduate Careers Australia. PARTICIPATION “Many men have an unconscious If the industry is saying it is IN PROPERTY AND bias around putting men in the committed to closing the widening CONSTRUCTION HAS senior roles. People naturally are crevasse between women and the BEEN CONSISTENTLY drawn towards people that are like workplace, where are we going wrong? SITTING AT A MEASLY them in some ways, when they are The first reaction could be to 13% OVER THE LAST looking at who will fit the culture. doubt the business commitment 10 YEARS, WHILE THE I don’t necessarily believe it is a to diversity. Research by Hays AVERAGE ANNUAL conscious gender decision.” Recruitment conducted in May found SALARY FOR FEMALE Veronica Morgan, founder that as many as 48% of people are not GRADUATES JOINING and principal of Good Deeds satisfied with the career path available THE INDUSTRY IS Property Buyers and co-host of to women at their organisation, STILL ABOUT $9000 property television series Location while 52% of employees say their LESS THAN THAT OF Location Location Australia organisation’s public face and the way THEIR MALE PEERS. joined the industry at a time when they portray themselves on issues like women’s involvement was seen diversity isn’t a true representation as spearheading positive change, of the real business culture. with boutique real estate brands “There has been a notable increase such as Di Jones and Sarah Lorden in the number of diversity initiatives serving as encouragement. within both private and public “When I joined the industry, sector organisations,” says Nick I liked the idea of a bunch of Deligiannis, managing director of women working together and Hays in Australia and New Zealand. doing smart things, but I guess if I “Yet those efforts do not seem to be was a young woman now looking achieving the changes we need to see.” at real estate as an industry, there Perhaps it is not due to lack of wouldn’t be many targets that I’d trying that women have not felt want to approach,” says Morgan. welcome in the workplace, but Aside from a select few players, more a lack of understanding of Morgan says there is no longer what women need to thrive. many enthusiastic woman-led businesses, particularly when looking at most big franchises. THE IMPORTANCE OF “There’s no major brand out ROLE MODELS there at the moment that would The business world has slowly encourage women. Maybe what realised that though it can welcome was an influx of women — that’s women with open arms, without catering not been sustained? Maybe today, to the different lifestyles and approaches a young woman is thinking, ‘I possessed by most female workers, they’ll don’t know if I want to compete just as soon lose that talent. And women with any of that testosterone; who leave the workplace, whether I’m not sure I want to go put to start a family or to pursue other myself into that fray’.” endeavours, and don’t return cannot be One young woman in the moulded into the valuable female property industry is Carina leaders that the industry sorely needs. Cowham, a Sydney-based “Lack of female mentors and senior property manager, who role models can make it difficult for agrees that strong women role
556 ANZPJ JUNE 2014
555-558_ANZPJ_June14_YPPwomen.indd 556 6/20/2014 4:17:50 PM DIVERSITY
models really pave the way for “Even within my own team, the Despite requiring some their younger counterparts. older gentlemen use demeaning words investment, concepts like maternity “It’s always very encouraging such as ‘darl’ and ‘love’ and constantly leave and flexible hours should to see women in property holding refer to me being young and female not be taken lightly. According senior positions. It definitely draws as their way of feeling superior. to Sinnathamby, it’s important to me to them,” she says. “During And while I brush it off, it can be communicate to young women my time at Goodman, I reported quite frustrating,” says Michaels. that they have options and are to a very influential woman and “Another example would be how valued within the company. I recall the younger women in seriously you are taken at meetings. “We’ve had staff that go on the team would flock around her. Most people would rather talk to an maternity leave, and we’ve wanted She was an incredible role model older male than the young female. to keep them, so we’ve had these and a strong leader, so I definitely You have to prove yourself a lot more conversations — how will we handle look up to women that this situation, when would are doing well in the you like to leave, when industry and are looking “IT’S ALWAYS VERY ENCOURAGING would you like to return; for opportunities where TO SEE WOMEN IN PROPERTY when you return, how there’s enough systems in HOLDING SENIOR POSITIONS. IT many days of the week place to support them.” DEFINITELY DRAWS ME TO THEM.” are we looking at? Be very open in your discussions CARINA COWHAM with them,” she says. RETAINING WOMEN “An organisation can If one strong role model can attract a in order to gain the same respect.” let people know what their practices flock of younger women, then it stands Pilkington believes a lot of and policies are from the start. to reason that for every older woman women, and indeed men, would That will encourage good female who drops off, then so too does a flock of benefit from more consideration employees to apply to work with young women who would’ve followed in of parental responsibility. them. It’s getting that message out her footsteps. In order to truly embrace “Companies need to consider from the top down on your website and utilise women in the industry, ways of not only encouraging and through the company.” more work needs to be done internally women into the business, but also to breakdown unconscious bias, make it easy for them to stay after and drive consideration of issues they have kids. For example, does ERADICATING BIAS like work/life balance. the sale meeting have to be at 8am As a principal property recruiter While not all companies can when mums are flat out getting kids at Capstone Recruitment, John necessarily bear the cost of maternity out to school? Do you have to be Jannaway has seen some examples leave schemes, simpler concepts can based in an office, or can you allow of companies actively looking for still be considered. Amy Michaels, a people to work virtually? There male employees over female, which Melbourne-based assistant property are lots of different ways that you he feels could be due to gender manager, says she is unhappy with the can accommodate women with bias or fear that the woman will language adopted by her co-workers. childcare responsibilities,” she says. want to start a family, though
PROPERTY VALUATION PRACTICE FOR SALE MELBOURNE Valuation practice specialising in Insurance Reinstatement / Replacement assessments to the Strata industry.
This is a unique business generating reoccurring income A single operator could realistically expect a net income from a purpose built software program developed and tested in excess of $200,000 pa before tax or the business offers over a three year period and now ready for a National roll out. unlimited scope for development of a Franchise network. Asking price 2 x NEBIT
PLEASE CALL FOR MORE DETAILS: 0412 637 003 INITIAL ENQUIRIES TO: Business For Sale, GPO Box 1063 MELBOURNE 3001
555-558_ANZPJ_June14_YPPwomen.indd 557 6/20/2014 4:18:13 PM DIVERSITY
they don’t state so openly. it. It’s a business where women are dominated, and even though a lot of “Bias can come into play, sometimes making the majority of decisions change has happened, you’re going to at that senior level, because that from a consumer’s perspective get it everywhere to some extent, from demographic are not as used to so it just makes sense. Some of men and women, and you’re going to working with women,” he says. the best sales people I have seen have to just deal with it,” she says. “Most often, though, we’re in the industry are women.” “Work harder, rise above it, and approached by people who are But as women bring their own be professional in how you handle it, consciously biased towards gender set of talents to a business, the onus because you do have to handle things for specific roles. In property must also fall on those potential differently — because we’re different.” management, for example, they future role models to ensure they Jessica Collins, an assistant think the males are very good at the help to pave their own career path. property manager in Brisbane, also technical building issues, whereas agrees with Michaels that women the female property managers are need to work to prove themselves. said to have a better ability in the THE ROLE FOR WOMEN “Generally females are accepted softer client management part “There’s a role there for women to in the workforce but have to of the role. So depending on the play, it’s not just the top of the tree, work harder to gain the respect weighting of that portfolio, they whether they’re male or female, to automatically given to males. We might be consciously biased toward make those decisions — every woman need to prove ourselves,” she says. going after one gender. I’ve had needs to look for opportunities “Being a woman in the property two examples of that this week.” available to them and just say ‘I industry is all about being confident There is some debate in your ability to get the over whether this is job done. If you exude a positive or negative confidence — even quiet for gender equality as “WOMEN ARE GREAT AT THIS confidence — and you it cuts both ways. BUSINESS AND BRING A DIFFERENT are knowledgeable, Michaels feels that DIMENSION AND FOCUS TO IT... people are going to while women can SOME OF THE BEST SALES PEOPLE take you seriously.” accomplish as much I HAVE SEEN IN THE INDUSTRY as men, there’s no ARE WOMEN.” need for them to be LEANNE PILKINGTON THE WILL TO LEAD “one of the guys” to Lastly, older women succeed, but that may vary in more want that’,” says Sinnathamby. need to focus on how younger competitive areas like property sales. “If there are promotion opportunities, generations might perceive them, and “A lot of the women that I come definitely guys put their hands realise that they are considered role across in property management are up; whether they’re qualified or models, whether they like it or not. quite intelligent and can hold their not, they’re pitching themselves to Mentors are needed to show own. They can keep up with the guys, take up those opportunities, and young talent how to face gender- no problem. There is a stereotype women don’t necessarily do that. specific challenges as they with certain sectors though; you “Young women have to be positive. arise, as well as show them that don’t get the bigger egos coming It’s when the opportunity arrives, they are not only wanted in the through in my side of the business.” don’t think ‘should I?’ Or ‘how will business world, but needed. Pilkington feels that women I?’ Or ‘am I good enough?’ You “It’s got me thinking about the can also hold their own in a just apply, and figure all that other people that are leading the young competitive environment, and even stuff out later. If you’re passionate women now,” says Morgan. surpass their male counterparts, about what you do, you won’t let “A lot of agencies now tend to which is not currently reflected anything stand in your way.” be run by men, and the women in the recruitment field. Michaels also feels that who joined in my day are a bit older “Women are over-represented in when facing gender-specific now so we’re in that role model the areas of property management bias, sometimes the best advice phase. But are we doing a good job? and administration, but not so is simply to rise above it. I don’t know.” in sales.” she says. “Women are “Women need to remember great at this business and bring a that they’re coming into the game Some names in this article different dimension and focus to that has traditionally been very male have been changed.
558 ANZPJ JUNE 2014
555-558_ANZPJ_June14_YPPwomen.indd 558 6/20/2014 4:18:35 PM HOUSING
FLEXIBLE
When it comes to the future of residential housing in Australia, flexibility is the key to sustainability, writes DAVID VEERMAN.
et’s face it — no one agent commission, bank fees and likes sharing. The other moving costs combine to great Australian dream restrict some from entering the isn’t about “our place”, residential property market, and it’s about “my place”. many others from moving within it. Yes,L it’s about barbeques in the Further, the choice of housing backyard and personalising your categories a property buyer has to space, but thanks to the statutory contend with is limited, making property rights we enjoy, it’s also these steps even harder to climb. Australia’s favourite way to generate Are you looking for an apartment, wealth during our working years. a townhouse or a house? When Unfortunately, one of the big it comes to direct investment in problems with growing wealth residential property, these are pretty through property is that traditionally much your only options, proving it has to be done in significant that elasticity of supply is clearly no stages — save enough to move match for changes in social trends. out of home; sell the bachelor/ In 2011-12 there were bachelorette flat to buy a first house; approximately 8.6 million households upsize into the family home, then living in private dwellings in downsize again in retirement. Australia. While this measurement At each step, the changeover showed a decrease in the average costs are quite high. Stamp duty, household size from 2.7 to 2.6 people,
559
559-562_ANZPJ_June14_FlexibleHomes.indd 559 6/20/2014 4:22:17 PM HOUSING
WHAT IS A ‘FLEXIBLE HOME’? The ‘flexible home’ solution requires thinking about accommodation a little differently. A flexible home is an asymmetrical duplex on its own allotment, which is purpose-built to the average dwelling size increased convert into two dwellings of different • Phase 4: As the primary occupants’ over this period from 2.9 to 3.1 sizes, and back into one dwelling again children leave the home and create bedrooms per dwelling. In a nutshell, as the requirements of the primary an empty nest, the smaller unit is we’re building bigger houses, but occupant change during their lifetime. once again divided off by replacing fewer people live in each one. While These special duplexes are designed the section of wall. The primary only 3% of Australian households with two different sized self-contained occupant would now use just the were assessed as needing one or dwellings. The primary dwelling (unit larger unit, and lease the smaller more extra bedrooms, more than one) could consist of three bedrooms, unit to a secondary occupant. three quarters (78%) of households two bathrooms and a single garage; • Phase 5: Once the accommodation occupied dwellings that had more the secondary dwelling (unit two) of the larger unit is no longer bedrooms than were needed to could consist of one bedroom, one required, it can be leased to a accommodate the occupants. bathroom and a single garage. The secondary occupant again. The This trend to supply inappropriate essential element in the house design primary occupant returns to the accommodation is a legacy of a past and construction is the ability to smaller unit and collects rent social structure that focused on efficiently remove and replace part from the larger unit that assists supplying housing for the traditional of the adjoining wall to allow for them financially in retirement. family unit of mum, dad, and a more or less of the dwelling to be couple of kids. However, in today’s occupied by the primary occupant. The concept of flexible homes market this represents a mismatch Occupation of the dwelling sits on an accommodation spectrum. that can lead to mortgage stress. would move through five phases: Shared residential space within a When the spotlight is shone on single allotment can encompass housing affordability, the focus is • Phase 1: The primary occupant units, apartments, townhouses, invariably on rising construction would use the smaller unit until multi-unit dwellings, boarding costs, or it is discussed in terms they require more space. The larger houses, semi-detached housing and houses with granny flats. Each of these caters for similar but different WOULD YOU BE HAPPY TO ACCEPT RENT needs, but none allow the occupant FROM SOMEONE ELSE TO USE THAT SPACE to stay put while the dwelling UNTIL YOU NEED IT AGAIN? around them adapts to suit their lifetime of changing requirements. of a percentage of household unit is leased in the meantime, On an environmental level, the income. The blame game is easy to assisting with the loan repayments volume of movement in Australia play, but it is harder to admit that at the time of heaviest debt. must also be noted. In the three affordability should be addressed • Phase 2: The primary occupant years prior to August 2013, a total in terms of opportunity cost and uses the larger unit; the smaller of 988,140 homebuyers bought a the social choice to waste. unit is leased to a secondary property. Of those, 632,958 were not Most households simply have more occupant at this time. This first homebuyers, but changeover accommodation than they require caters for the primary occupant’s buyers upgrading, downsizing or in the early and later stages of the growing need for space, while still relocating. That’s a lot of house- ownership cycle, and this superfluous providing some income to assist warming parties, but all that accommodation is often not put to with mortgage repayments. moving contributes to demolition, productive use. What space do you • Phase 3: As the primary household construction and packaging waste; have that you’re simply not utilising? grows, the demand for space not to mention the additional carbon Would you be happy to accept rent increases to require the ‘traditional emissions to move all that furniture. from someone else to use that space family unit’ sized home. The two A post-occupancy evaluation of until you need it again? These are units are efficiently converted into residential building occupants and questions we should be putting a single dwelling by removing a their needs provides insight into the to the Australian homeowners. portion of the adjoining wall. consequences of the decisions made
560 ANZPJ JUNE 2014
559-562_ANZPJ_June14_FlexibleHomes.indd 560 6/20/2014 5:39:07 PM HOUSING
during the building’s design. This MOST HOUSEHOLDS SIMPLY HAVE knowledge forms a sound basis for MORE ACCOMMODATION THAN THEY creating better buildings in the future. REQUIRE IN THE EARLY AND LATER The concept of flexible homes offers STAGES OF THE OWNERSHIP CYCLE, AND a solution to the problem posed by THIS SUPERFLUOUS ACCOMMODATION the inflexible nature of our current IS OFTEN NOT PUT TO PRODUCTIVE USE. accommodation options, and offers an WHAT SPACE DO YOU HAVE THAT YOU’RE alternative to just moving house as our SIMPLY NOT UTILISING? needs change by avoiding premature obsolescence at the design stage. So if flexible homes can provide financial sustainability to BELOW: A DUPLEX THAT COULD SERVE AS ABOVE: homeowners, as well as environmental EXAMPLE OF A FLEXIBLE HOME THE DESIGN FOR A FLEXIBLE HOME IMAGE COURTESY OF TANDEM54 PROPERTIES advantages, why aren’t they promoted COURTESY OF ORACLE PLATINUM HOMES in the market today? After all, while homebuyer grants may successfully stimulate people to enter the market, they neither assist with the mortgage repayments on a long-term basis, nor address the opportunity cost of the potential income that the surplus accommodation offers for retirees. Flexible homes empower property owners to generate their own loan repayment subsidisation plan. CURRENT CHALLENGES One of the hurdles to overcome in building flexible homes is found in the approval process. The idea of classifying a flexible home as a single- dwelling would be rejected on the test of its use. The intention of low-density housing under the planning code
561
559-562_ANZPJ_June14_FlexibleHomes.indd 561 6/20/2014 4:23:08 PM HOUSING
is to allow single residential homes change from one class to the other dwelling by an autonomous group. to house single households. Once at different times. Taxation law is Other statutory obstacles to address sharing comes into the equation, the beyond the scope of this report, but it include regulations about breaking dwelling is no longer seen as a single is envisaged that flexible homes would through the separating firewall when dwelling, but as a multi-unit dwelling make assigning appropriate charges the time comes to convert the flexible and so would not be compliant with somewhat more complicated. Further, home into a larger single dwelling. It the current definition of a ‘house’ as taxable obligations of the flexible is the reinstatement back to fire-safe understood by the House Code . homeowner would depend on the condition when the two sides are Private certifiers quickly identify that nature of the relationship between the separated again that is of most concern. one dwelling can not have two sets of primary and additional occupants. How this scenario would be handled by facilities; it can only have one kitchen. Income from a tenant who holds insurance assessors is another question. The flexible homes design would push a lease is clearly taxable, but letting With the correct design, the cost of making use of the home’s flexibility could be at least $5000 each WITH THE CORRECT DESIGN, THE COST OF time. While this wouldn’t include MAKING USE OF THE HOME’S FLEXIBILITY any potential council or building COULD BE AT LEAST $5000 EACH TIME. inspection fees, it would include either removing the section of the wall the property out of Class 1 into a Class the teenage son live in unit 2 doesn’t or adding the section back in, and 2 dwelling. The Australian Building constitute exclusive occupation because finishing the alteration in keeping Codes Board (1996) classifies Class 2 mum and dad still have to clean up with the rest of the dwelling. This buildings as a building containing two after him. The use would therefore sum is more than may be spent on or more sole-occupancy units, each be considered as a single household, moving home, but the income derived being a separate dwelling. This would much the same as that of a granny flat. would likely pay the difference back also trigger higher council fees above The flexible homes concept means to the owner in less than six months. the self-assessable Class 1 buildings. that either of these relationships would While there are a number of The Australian Building Code be possible as the property offers the outstanding issues to work through, (1996) defines the various types of flexibility to switch between extra flexible homes should be considered buildings. From these definitions along accommodation and extra income. further as an alternative option to with the Annual Valuation conducted, However, acceptable solution A8 in the address housing affordability; to government bodies are able to apply House Code states that a house may cater for the increasing populations appropriate infrastructure charges only be used by a single household and, for the sake of environmental and set the level of rates levied against group. Renting out a secondary dwelling sustainability, to encourage designs each property. An issue arises where or ‘granny flat’ would be contrary to that accommodate not only the initial the proposed dwelling does not fall the acceptable solution as the house is occupants but also the subsequent users into either Class 1 or Class 2, but does used by one group, and the secondary during the property’s entire lifespan.
Legal References Authorities
Abbato, N 2012, BLAR13040 Australian Bureau of Statistics Brisbane City Council Street v Mountford Building Life Cycle Maintenance: 2013 (a), 4130.0 - Housing 2013b, House Code, viewed [1985] AC 809 study guide, CQUniversity, Occupancy and Costs, viewed 11 December 2013, Rockhampton. 16 November 2013, http://www.brisbane.qld.gov.au/ http://www.abs.gov.au/AUSSTATS/ bccwr/lib181/chapter5_house_ Australian Building Codes Board [email protected]/Latestproducts/4130.0 code.pdf 1996 (Amdt 13), Building Code of Main%20Features22011-12?open Australia, viewed 13 December 2013, document&tabname=Summary http://www.abcb.gov.au/en/ncc- &prodno=4130.0&issue=2011- products/ncc-archives/~/media/ 12&num= &view= Files/BCA%20Archives/BCA96_ Vol1A13.ashx
562 ANZPJ JUNE 2014
559-562_ANZPJ_June14_FlexibleHomes.indd 562 6/20/2014 4:23:35 PM ACQUISITIONS
ACQUISITIONS: A MULTI-DISCIPLINARY APPROACH
To ensure a dispossessed owner receives t is indisputable that whenever a property is being acquired, either by a government what they are entitled to during an body or private entity such as a mining acquisition, BRUCE COODE highlights how company, the most important expert bringing in the help of other professions adviser for the dispossessed owner is the valuer.I However, what the dispossessed owner can aid in the valuation process. is entitled to be paid is often something other than the accepted notion of ‘market value’ of the property. Firstly, the dispossessed owners may be entitled to compensation for a range of things in addition to, and quite separate from, the value of the property. Secondly, even the component of the
563
563-566_ANZPJ_June14_Aquisitions.indd 563 6/20/2014 4:27:07 PM ACQUISITIONS
totaltotal amount payable to the dispossessed owner, whichwhic directly relates to the property, will often be ssomethingo other than the amount arrived at by applyingapply the traditional meaning of ‘market value’. MyM experience is based upon the law applicable inin NNew South Wales; however, I understand that mostmost jurisdictions potentially include items such as solatiumso (compensation for non-financial loss, including the notion of hurt feelings), and compensationcom for loss involving the relocation of a bbusiness, disturbance, etc. The concept of disturbancedistu can include a range of entitlements that,that, at times, are surprising. Without intending anyany disrespectd to the profession, it would seem that thesethese concepts throw up issues for consideration and expertise that can oftentimes fall outside that possessedposs by even the most experienced valuer. EvenE determining the value to be attributed toto ttheh parcel of land involves questions such as:
• WhatW zoning could the property have if you ignoreign its existing zoning? This may involve choosingch between several alternatives. • WhatW is the best and highest use to which theth property might then be put, ignoring theth zoning that in fact applies to the land? • WhatW yield or development numbers could be achieved under that other zoning, etc.?
TheT answers to those questions will involve thethe exercisee of the sort of expertise possessed byby townto planners, local government lawyers, accountantsacco and property developers, as well as valuers.va Undoubtedly, an experienced valuer will have the ability to make an educated guess at thoseth and other similar issues that arise. However,How the end result from the point of view of ttheh dispossessed owners can vary enormously dependingdepe on what set of assumptions are used toto uunderpinn the valuation ultimately made. InI a recent case, a government instrumentality offeredoffer $2 million to land owners in Western SydneySydn and the owners obtained a valuation of theirtheir property at $2.75 million. When the owners providedprov a copy of the valuation report to the acquiringacqu authority and asked for $2.75 million, thethe acquiringa authority withdrew totally from negotiations,nego stating that the owners were being unrealistic.unre The owners then offered to accept thethe originalo offer of $2 million but the acquiring authorityauth refused to put the offer back on the table.
564 ANZPJ JUNE 2014
563-566_ANZPJ_June14_Aquisitions.indd 564 6/20/2014 4:27:37 PM ACQUISITIONS
THE ACQUIRING AUTHORITY OBTAINED of what sort of premium FORMAL VALUATIONS FROM TWO VALUERS such purchasers will pay is AND THE OWNERS OBTAINED A VALUATION crucial to making an accurate FROM ANOTHER VALUER OF THEIR CHOOSING. assessment of the real value of the property in question. The premiums that are paid Within 12 months, the owners had convinced can vary from 0% to 200% another government entity to acquire the property depending on the circumstances. The for $4.8 million. There was no difference in the quantification of the appropriate premium public purpose, the reason for the acquisition, is both crucial to the property owner and zoning, or any other aspect of the legal position. clearly not a matter for guesswork. If the The difference was that the owners obtained additional advice in regard to both how the land component should be valued, as well as advice about a range of other amounts that should be included in the acquisition process. The acquiring authority obtained formal valuations from two valuers, and the owners obtained a valuation from another valuer of their choosing. The value attributed to the land by all the valuers was ultimately within a range of $4 million to $4.5 million. The assessments as to land value were much higher than that produced by application of the traditional market value approach, but was absolutely in accordance with legal precedents as to how the valuation exercise, in that case, should be approached. In addition to a valuer, the involvement of professionals such as a lawyer with experience in this type of matter and a town planner on behalf of the dispossessed owners, was crucial to the process. The valuer in question did not attempt to come to a conclusion as to the value to be attributed to the land until he had the benefit of the input from the other experts. Not all acquisitions are carried out by government instrumentalities. There are a number of situations where private entities will want to acquire property for their commercial enterprise/project. Often the private entity is forced — either by commercial imperatives or by the terms of a development consent — to acquire certain properties, and the private entity is not in the position of being a ‘ready but not anxious buyer’. A mining company may need a particular property because of its strategic location in order for a large project to be able to proceed at all, or a property developer may be required by the terms of a development consent to acquire certain properties. The accepted definition of ‘market value’ can be said to be flexible enough to deal with such situations. However, knowledge
5655
563-566_ANZPJ_June14_Aquisitions.indd 565 6/20/2014 4:28:06 PM ACQUISITIONS
valuer does not have direct experience in is usually no ability to appeal against that refusal. regard to the particular type of situation they Whether or not such an application can be made face, then the valuer would be encouraged to to the acquiring authority, as well as the contents look for assistance from other experts who do of that application are probably matters to be have appropriate experience in this area. determined by the valuer in conjunction with a Additionally, the dispossessed owners may suitably qualified person — probably a lawyer. be able to make a claim under mining laws or Also regardless of whether the acquisition is other laws for additional compensation. Even proceeding as voluntary or compulsory, before if there is a doubt about whether the owners any valuation is carried out it is important to will succeed in such claims, the raising of those sort out the ground rules that will apply. That issues by an appropriate expert on behalf of is, issues such as those mentioned earlier in the owners may well lead to a higher amount this article, and which may well require input being offered to them. It is probably true that from experts in addition to the valuer. the private purchaser is more likely to give some It is respectfully suggested that the weight to the suggestion that a claim will/can dispossessed owners will be better served by a be made under law if it comes from a lawyer. multi-disciplinary approach in most situations, Even in the case of an acquisition by a and it is really only the extent to which experts government instrumentality, it is now frequently other than a valuer should be involved that will the case that the vary in most instrumentality situations. is not under any The law legal compulsion IT IS NOW FREQUENTLY THE CASE THAT THE generally to acquire the INSTRUMENTALITY IS NOT UNDER ANY LEGAL provides property. In those COMPULSION TO ACQUIRE THE PROPERTY. IN that the situations, any THOSE SITUATIONS ANY ACQUISITION WILL reasonable acquisition will BE VOLUNTARY RATHER THAN COMPULSORY. cost to be voluntary property rather than compulsory. It is almost always owners of obtaining expert advice should be the case that a dispossessed owner will receive payable by the acquiring body (often referred to significantly less in a voluntary acquisition as ‘disturbance’). The real possibility that a loss process than they would if it was compulsory. may be suffered by property owners, if all possible If the acquisition is voluntary and the owners heads and types of claims are not considered, are not happy with the amount offered to them, makes it hard to argue against the property they cannot challenge or appeal the offer and owner who has at least consulted a lawyer or are left in a ‘take it or leave it’ situation. town planner experienced in this type of work. By comparison, if the unhappy owner Lastly, and from a more selfish point of is able to refer the matter to a court, this view, the importance of the end result to a will almost certainly be a factor taken into valuer’s reputation is clear. It is both a matter account by the acquiring authority during of ensuring that the professional services negotiations. Also in a compulsory acquisition provided are of the highest order and of avoiding process, there are usually additional amounts complaints, whether it be just someone making payable to the dispossessed owners. unflattering comments about the valuer to It is often possible to take steps to try to others, or worse, someone suing the valuer. convert a voluntary process into a compulsory We have probably all experienced, or know of one. If successful, the owners will be entitled to a a fellow professional who has experienced the larger payment. In NSW, for instance, this may be situation of a client (or former client) having achieved by having the acquiring authority agree been given gratuitous advice that was considered to classify the acquisition as occurring within to be wrong, or even negligent. If your advice the ‘hardship’ criteria. Making the application was given with the benefit of contributions to the acquiring authority in that regard needs from other experts, not only will it almost to be handled with care, because if the acquiring certainly be better, it will also be much harder authority refuses to so classify the process, there for anyone to successfully challenge it later.
566 ANZPJ JUNE 2014
563-566_ANZPJ_June14_Aquisitions.indd 566 6/20/2014 4:28:30 PM PriceFinder Goes Everywhere You Go. Fast local property information at your fingertips.
PriceFinder in the office “95% of all PriceFinder PriceFinder on your tablet mobile traffic is from iPad or PriceFinder on your mobile iPhone”
Recent Sales & Listings Detailed Property Reports Suburb Statistics Get the latest agent advised Stay up to date with fast access Instant access to suburb sales, VG sales and listings to detailed property reports statistics including sales delivered straight to your iPad including owners, sales history, volumes, median prices & while on the go. phone numbers & more. percentage growth.
Try it Today. pricefinder.com.au/freetrial POPULATION
he rate of population growth across Australia is currently very strong. In recent years the Australian Government Thas been running a high immigration program that has seen the rate of population growth among the highest in the developed world. It hasn’t just been a high rate of immigration to Australia that is fuelling the growth; there has also been a high birth rate, which has seen the level of natural increase (births minus deaths) at their highest levels on record. Over the 12 months to September 2013 (the most up-to- date data available) Australia’s total POPULATION AND population increased by 1.8% or 405,446 persons. At this time, the national population was estimated to be 23,235,837 persons. The rate HOUSING SUPPLY of natural increase was 2.9% over the year and recorded at 164,428 persons, while net overseas migration By taking a deeper look at the rate of new dwellings increased by 1% over the year and coupled with booming populations, RP Data’s was recorded at 241,018 persons. Unfortunately, there is a significant CAMERON KUSHER explores the current state lag associated with the population of dwelling supply in certain Australian states. data from the Australian Bureau of Statistics (ABS). However, the ABS publishes overseas arrivals and departures data each month, which at least provides an insight into the likely rate of net overseas migration. Over the 12 months to March 2014, net permanent and long-term overseas arrivals were recorded at 385,360, which was actually -5.7% lower year-on-year. This is likely to be indicative of a slight slowdown in net overseas migration over the coming months. Keep in mind that, on a historic basis, migration to Australia remains very high. With population growth at high levels, this fundamentally translates into additional demand for housing, whether it is for new migrants to the country, or residents that are increasing the size of their family and need additional space. Most recently, the supply side response to these strong levels of population growth 568 ANZPJ JUNE 2014
568-569_ANZPJ_June14_Population.indd 568 6/20/2014 5:42:08 PM POPULATION
has been quite disappointing. Looking the past year. Of course, measuring commencements and ultimately at building approvals data, one can demand for housing is not quite so completions. An assumption we could see very few approvals are sought or simple. Although slightly dated, make here is that holiday and second granted to the public sector. Given the former deputy governor of the homes are generally more likely to be that the private sector is essentially Reserve Bank (RBA) gave a speech situated outside, rather than inside, responsible for providing new housing, entitled “housing and the economy” a capital city. As a result, the second however, it generally won’t do so until to the National Housing Conference revelation detailed above is probably it is economically viable. As a result, in November 2009. In the speech he not going to have as much of an impact we have seen a substantial insufficient posed the question: “Are we building at a capital city level. Nevertheless, supply of new housing brought to enough dwellings?” Two of the we still have to allow for the 15% of the market over recent years. most interesting revelations were: homes that have been demolished If we look at where the population • A higher proportion of the when looking at the approvals data. growth is occurring, it’s clear that new dwellings built are simply Across individual capital cities, there is a preference for certain replacing existing homes that the 2011 Census reported that on areas of the country over others, have been demolished. The RBA average Sydney, Brisbane and Darwin which adds to the requirement for estimated that between 2001 and had 2.7 persons per household, additional housing. Of the 241,018 2006, around 15% of new dwellings Melbourne, Perth and the Australian net overseas migrants over the year built replaced those that had been Capital Territory had 2.6 persons per to September 2013, 29% migrated to demolished; 10-15 years earlier that household and Adelaide and Hobart New South Wales, 25.9% to Victoria, figure was less than 10%; and had 2.4 persons. Returning to the 20.1% to Western Australia and 17.1% to Queensland. These four states, which are already the most populous, A HIGHER PROPORTION OF THE NEW DWELLINGS accounted for 92.1% of the total net BUILT ARE SIMPLY REPLACING EXISTING HOMES overseas migration. Unfortunately, THAT HAVE BEEN DEMOLISHED. statistics for the capital city regions are only published annually. However, it is safe to assume that these figures • A significant proportion of original findings, over the year to are a good proxy for much of that dwelling investment appears to have June 2013, the capital city population population growth going into the gone into holiday homes or second increased by 313,387 persons and capital cities of each of those states. homes. Data from the 2006 Census 114,825 dwellings were approved As at June 2013, 66.3% of shows that the number of dwellings for construction. If we adjust for all Australians lived within a built has exceeded the increase in average household sizes as per the capital city. Further, 57.6% of the number of households by a large 2011 Census, to match population Australians lived in either Sydney, margin. As a result, the ratio of the growth there would have ideally been Melbourne, Brisbane or Perth. number of dwellings to the number a slightly higher 119,135 approvals Over the 12 months to June 2013, of households has been rising over over the year. If we then further the population of the combined capital time. As at 2006, there were 8% adjust for the assumption that we cities increased by a total of 313,387 more dwellings in Australia than should approve 15% more homes to persons. At the same time, there there were households. Presumably, replace demolitions — there should were 114,825 capital city dwelling most of this surplus reflects holiday have been 137,005 dwellings approved approvals over the period. Based homes and second homes. for construction last year, a shortfall purely on the ratio of population At a national level, the former of 22,180 capital city approvals. growth to dwelling approvals, deputy governor’s speech suggested With population growth booming there was one dwelling approved that, in order to cater to dwelling and housing supply within our for construction for every 2.73 replacements and secondary homes, largest cities insufficiently catering residents added to the capital cities. we need to construct 23% more to this greater level of demand, it’s At a national level, the 2011 dwellings than the previous simplistic no surprise we continue to see home Census reported that average people analysis of measuring the rate of values grow at a faster pace than per household at that time was 2.6 population growth compared to inflation. Although dwelling approvals persons. Based on that figure, you approvals. Also keep in mind that are starting to rise, they need to catch can see that population growth has we are looking at approvals, they up on the past 10 years of woefully exceeded dwelling approvals over won’t necessarily all go on to become insufficient new housing supply.
569
568-569_ANZPJ_June14_Population.indd 569 6/20/2014 5:14:00 PM FINANCE
QUARTERLY MARKET DATA 571 AN INVESTOR’S DREAM
PROPERTY TRUSTS 573 TRUST IN THE PROPERTY MARKET? 581 GROWING CONFIDENCE IN THE A-REITS
SELF-MANAGED SUPER FUNDS 576 THE EVOLUTION OF SMSFs AND REAL ESTATE
570 ANZPJ JUNE 2014
570_ANZPJ_June14_FinanceContents.indd 570 6/20/2014 4:30:35 PM FINANCE
QUARTERLY MARKET DATA: “AN INVESTOR’S DREAM”
The Australian property market will likely be driven by investors in the months ahead as they take advantage of rising property prices and historically low rates, writes JESSICA DARNBROUGH.
hile many WESTPACWESTPAC MELBOURNEMELBOURNE ININSTITUTESTITUTE CONSUMERCONSUMER SSENTIMENTENTIMENT INDEX economists have been predicting an MONTHMONTH INDEX READINGREADING May 2014 92.992.9 interest rate rise in April 20201414 99.799.7 the not-too-distant March 2014 99.599.5 future,W it now seems all but certain February 2014 100.2100.2 January 2014 103.3103.3 that the cash rate will stay on hold for the time being, thanks to a lower than expected lift in inflation and annualised rate to 2.9% — perfectly a slump in consumer confidence. within the Reserve Bank of According to the Westpac Australia’s target band range. Melbourne Institute Survey of With this in mind, the RBA Consumer Sentiment, the Federal decided it was prudent to leave Budget has caused consumer the official cash rate on hold in sentiment to slump, with the May, and even went so far as to say Index recording a 6.8% drop that the current “accommodative to sit at 92.9 — the lowest level stance of policy was likely to be in more than two years. appropriate for some time yet”. Further, recent data from the So, with the RBA all but saying Australian Bureau of Statistics that the cash rate is unlikely to change found inflation figures were in the foreseeable future, what will lower than expected, taking the this mean for the property market?
571
571-572_ANZPJ_June14_QuarterlyMarketData.indd 571 6/20/2014 11:11:21 AM FINANCE
MORTGAGE CHOICE INVESTOR SURVEY Q: WHY WILL YOU PURCHASE AN INVESTMENT PROPERTY?
25.3%25.3% 18.2%18.2%
It allowallows me to ggetet mmyy foot I could more easilyily afford an investmentmentt on the propertpropertyy ladderladder propertpropertyy than an oownerwner occupied propertyproperty
According to recent research by RP Data, property price growth is showing signs of slowing, with dwelling values climbing just 0.3% 30% 22.7% across the combined capital cities in April. And while this latest data suggests property values may not climb at the same pace as last year, it is fair to assume that property prices I am lookinlookingg out for mmyy financial futurfuturee It aallowllows me to bubuyy where I canan will continue their upward trajectory. aaffordfford aandnd still live where I wwantant ttoo In fact, property prices have already climbed by more than 3.5% this year — a percentage that is likely to climb higher still. This solid value growth, combined with historically low rates, is making the property market very 1.9% 1.9%1.9% lucrative for investors. As such, it won’t be surprising to see a lift in this type of buyer entering the market over the coming months. Already, Mortgage Choice is I want to take advantaadvantagege of tthehe OOtherther seeing a spike in enquiries from loloww rrateate enenvironmentvironment this buyer segment, with investors currently accounting for 30% of all loans written — slightly higher than previous years. MORTGAGE CHOICE APPROVALS BY BORROWER TYPE According to Mortgage Choice’s recent investor survey, almost one in BORROWER TYPE APRIL 2014 APRIL 2013 three future investors said they would Business 1% 0% purchase an investment property as a way to secure their financial future. Investment 30% 28% With that said, it is fair to Owner Occupied 69% 72% assume that the property market will remain hot for the rest of 2014, Self Managed Super Fund 0% 0% buoyed by investor demand.
572 ANZPJ JUNE 2014
571-572_ANZPJ_June14_QuarterlyMarketData.indd 572 6/20/2014 5:17:30 PM FINANCE
he Australian Bureau of Statistics predicts that the country’s net population will grow over the TRUST IN THE next decade by more than 400,000 people each year. These people needT a place to work, a place to shop and a place to sleep, which would imply that profit from investment in property is a given. PROPERTY But not entirely yet. The return from property trusts hasn’t quite equalled the halcyon days before the GFC, but it’s getting close, according to Paul Healy, CEO of the Property Funds Association of Australia MARKET? (PFA), who says the returns are “pretty good”. As confidence in Australian property trusts “We’re seeing a 9.3% return for the last 12 months, made up of income of 7.1%, largely from grows, TIM MENDHAM examines the state rents, and growth adding a further 2.2%.” of certain investment vehicles and identifies That’s not far off the pre-GFC return of 10%; investors just need to have faith and buyers helping to drive this activity. patience — something investors should have anyway.
573
573-575_ANZPJ_June14_PropertyTrusts.indd 573 6/20/2014 5:47:30 PM FINANCE
“Realistically, investors need to devote The office market is particularly prone five to seven years to take advantage of their to incentives, such as rent-free periods and investment,” says Healy. “It’s not for speculators.” free fit-outs. This decreases the return on Property trusts involve investors buying the total lease value by 30-35%, Healy says. ‘units’ in an investment property — industrial, This is exacerbated by the increasing resort to office or retail — which is run by a “activity-based working”, whereby desk and professional investment manager. office-space are optimised to take advantage The money invested remains there until of employee absences on holiday and sick the properties are sold (when the trust ends). leave, or simply working in the field or from The net proceeds are then distributed among home. Savings in space can amount to whole the investors. Dividends may be paid on floors for large enough organisations, and a regular basis, say every six months. that puts a big dent in rental returns. According to the PFA, the Australian unlisted wholesale and retail property funds WHERE TO INVEST sector is currently worth some $79 billion, Jason Huljich, CEO of Unlisted Property Funds, though some have put that figure higher. Centuria, says that there has been a move to Needless to say, the GFC hit the industry high quality CBD properties, which represent hard. Depending on the level of leverage, returns about three quarters of his firm’s holdings. were down by 20-30% from the high — or some “The regional areas are more would say ‘overheated’ — values before the crisis. for smaller players,” he adds. When the crisis hit, there was a move to quality assets, with “little regard for the price achieved in selling off existing investments”, according to Stuart Cartledge, founder and portfolio manager with Phoenix Portfolios. And there are issues that have continued into the post-GFC days. “We’ve been suffering from sub-par sales growth in the last four years in the retail market,” Cartledge says. And rental return is not necessarily any better.
THE RETURN FROM PROPERTY TRUSTS HASN’T QUITE EQUALLED THE HALCYON DAYS BEFORE THE GFC, BUT IT’S GETTING CLOSE.
574 ANZPJ JUNE 2014
573-575_ANZPJ_June14_PropertyTrusts.indd 574 6/20/2014 4:34:06 PM FINANCE
The three cities with the highest returns on tenants who are concerned with a building’s sales, Huljich says, are Sydney and Melbourne, NABERS (National Australian Built Environment ($4-5 million/sqm) and Canberra ($3M/sqm). Rating System) rating — 4.5 is a minimum. Brisbane and other CBDs offer approximately The retail market is variable. Convenience $1.5M/sqm. One trend here is the conversion stores are doing well, says Cartledge, though of commercial space into residential, either mid-range shopping centres are not performing through knock down, rebuild or conversion. at the same level. And if investors are looking But Cartledge is not so upbeat. “The market at medium- to long-term investments, the has been forecasting a recovery for 20 years,” turnover of individual shops within larger he says. “The office vacancy rate is in double retail operations — about 20% expiring per figures across capital cities, with Perth and year — is a concern. “If leases are for only Brisbane worst and getting worse, probably two years, then that’s not good,” he says. thanks to a drop off in the mining boom.” Huljich says the offshore market is strong, There are different views on the value of especially for unlisted funds. Investors here sustainability as a feature of commercial assets. tend to be super funds and high net-worth Healy says it’s not a big factor, particularly in individuals. “We’ve had good traction since we existing buildings. “It’s expensive to retrofit with opened an office in Singapore recently. One US little return.” However, Huljich says, “It’s only investor took out over half of a recent offering.” going to get more and more important over the next four to five years.” He points to public sector WHO ARE THE INVESTORS? There’s quite a lot of overseas investment in Australian properties, says Healy; particularly from China, with investors looking for high quality CBD properties or “big shiny towers”, as he puts it. “Asian groups see Australia as more stable than their home markets,” Healy says. The market for residential apartments is strong, he adds. “There’s a better price for ‘off-market’ properties. What’s ‘on-market’ tends to attract heavier bidding.” Cartledge agrees: Asian investors in particular, he says, are offering higher bids than the current carrying capacity would suggest, which means that a long-term perspective is vital — at least four to six years. A 6-7% yield is attractive to Asian investors. Healy says that while there are a number of large institutions looking at property trusts, most seem to be high net worth individuals, or ‘mums and dads’ through their super funds. In fact, ageing individuals looking at property as retirement income is incredibly common — thus not so much mum and dad as grandma and grandad. This is particularly so when term deposit interest rates drop below 5%. As might be expected, there is variation in the estimates of return and growth, both for individual trusts and for the industry as a whole. And whether the market is able to revisit the pre-GFC halcyon days, however overheated , is yet to be seen.
575
573-575_ANZPJ_June14_PropertyTrusts.indd 575 6/20/2014 4:34:23 PM FINANCE THE EVOLUTION OF THE SMSF AND REAL ESTATE
Grant Thornton’s DENNIS EAGLES provides a comprehensive rundown of the evolution of the self-managed super fund and its role in property investment.
uperannuation is Some of these uncertainties that the practice be monitored and without doubt the best were addressed via informal means, reviewed over the coming years, but vehicle in which to hold such as government media releases this review has not taken place. long-term retirement and industry discussion groups, Some 15 months later, in assets. Self-managed leading lenders to slowly develop September 2011, the ATO released superannuationS funds (SMSFs) products. In general, these products a draft ruling2, setting out its continue to grow in numbers each were expensive, with many lenders view in an attempt to clarify some year, and represent an increasing imposing high establishment of the uncertainties. The final proportion of superannuation assets. fees or interest rate margins to ruling3 was released in May 2012 The growth of SMSFs is due to cover their apparent high risks. after extensive consultation with members wanting to take control over Many of these uncertainties relevant industry participants, their own retirement futures. In many prevailed, to some extent, for a clarifying some of the issues. cases, they are driven by the ability to number of years. In July 2010, Today, most lenders appear invest in areas that they know well and the initial laws were repealed and comfortable with the application of cannot access via retail funds — real replaced with a new version1. This the legislation, and have developed estate is a perfect example. was an attempt to clarify a number products to enable lending in of uncertainties that existed within usual circumstances. While the BACKGROUND TO the legislation. However, due to legislation allows any type of asset SUPER BORROWING the nature of these amendments to be acquired, in practice they Prior to 24 September 2007, super and the new concepts that were are generally only used for higher funds were generally prohibited from introduced, this raised as many value assets, such as real estate. borrowing (except for some very uncertainties as it resolved. Indeed, limited recourse borrowing specific short-term borrowings). The basic structure of the Limited arrangements have certainly The introduction of new Recourse Borrowing Arrangement become more widely accepted. superannuation law at that time (LRBA) remained the same, with the provided a further exemption that SMSF borrowing monies via a limited THE SMSF PROPERTY BOOM enabled superannuation funds to recourse loan to acquire an asset, and Over the past year, there has been borrow to acquire assets, provided a that asset being held by a custodian significant media attention on an few conditions were met. While the on trust while the loan remains. apparent boom in property being conditions as drafted were brief, they Just a few days before the new acquired by SMSFs. Much of this raised many areas of uncertainty and, legislation obtained Royal Assent the attention is focused towards the use as a result, the ability to borrow was Cooper Review was released, which of borrowings to acquire real estate, often discussed, but only occurred in had considered whether borrowing and the risks that may be associated. small numbers in practice. Lenders by super funds was appropriate. Based on the latest available ATO in particular took considerable time The panel expressed some concerns statistics4 (as at March 2014), there are coming to grips with the legislation about super borrowings, but felt that 528,700 SMSFs in existence, and for and the associated uncertainty, and it was too early to make a definitive the first time the SMSF membership were generally reluctant to lend. decision. The panel recommended base now exceeds 1 million members.
576 ANZPJ JUNE 2014
576-580_ANZPJ_June14_SMSF.indd 576 6/20/2014 11:14:10 AM FINANCE
There is in excess of $546 billion invested and, on average, over the past two years the SMSF pot has grown more than $16 billion per quarter. THE ATO SMSF FIGURES REVEAL THAT THE Approximately $90 billion of the GROWTH IN BORROWINGS IS ACTUALLY total, or 16%, is invested in direct TAPERING OFF. SMSF TRUSTEES ARE property — a considerable sum of BECOMING MUCH MORE SELECTIVE IN TYPES money. The statistics on investment OF PROPERTIES BEING ACQUIRED. by SMSFs in property assets confirm that there has been an increasing desire to hold property within FIGURE 1 superannuation. Over the past five Property Type (with Growth of borrowings) years, there has been an increase in 100,000 9000 the weighting of assets allocated to property from 13% in 2008 to 16% 90,000 8000 80,000 in March 2014. This represents a 7000
24.5% increase in the allocation to 70,000 property over almost six years, but 6000 60,000 it is hard to say that this is a boom. 5000 Residential However, what the statistics do 50,000 Non-Residential $Million 4000 $Million show is a reallocation of the total Borrowings 40,000 between SMSFs of different sizes, with 3000 larger funds increasing their allocation 30,000 2000 of property versus other asset classes. 20,000 Many industry commentators 1000 suggest that the recent property 10,000 boom is the result of an increase 0 2008 2009 2010 2011 2012 2013 Mar 2014 in borrowings by SMSFs; however, the statistics don’t really support that either. There has, without FIGURE 2 question, been a steep increase in the amount of borrowings by SMSFs since they became permitted in late 2007. In fact, SMSFs currently owe around $7.5 billion via LRBAs. However, as shown by the line on Figure 1, the ATO SMSF figures reveal that the growth in borrowings is actually tapering off. SMSF trustees are becoming much more selective in the types of properties being acquired with debt. Meanwhile bankers, though much more willing to lend to SMSFs, are taking a close look at the metrics.
577
576-580_ANZPJ_June14_SMSF.indd 577 6/20/2014 11:14:31 AM FINANCE
LENDER A Limited Recourse Borrowing Arrangement LOAN
Recent scaremongering has seen some pointing the finger at the BENEFICIALLY industry for causing a residential OWNED price bubble, thus pricing the first SUPER FUND home-owner out of the market. CUSTODIAN This is despite SMSFs acquiring non-residential properties at approximately a ratio of 4:1 compared PURCHASE to residential properties (see Figure 1). The characteristics of non-residential LEGAL TITLE properties, in particular long lease HELD ON TRUST terms and stable tenants, make ASSET these a much more attractive proposition for SMSF trustees. Given the size of the residential property market and the comparatively low level of investment eye of the Australian Securities and ASIC followed this with the by SMSFs, a bubble is hardly evident. Investments Commission (ASIC). release of a warning to the real estate Peter Kell, ASIC Commissioner in industry7 on 6 November 2013 in RISE OF THE SMSF charge of the SMSF taskforce, made relation to recommending property PROPERTY SPECIALIST the above position clear, stating in a investments through SMSFs. The It has been alleged that so-called speech5 just over 12 months ago that: release, which accompanied letters ‘property spruikers’ have been “In the past, you may have seen written to the Real Estate Institute popping up all over Australia ASIC comment that we do not regulate of Australia (REIA) and other real and, in an effort to sell their direct property investment. This is the estate bodies, specifically targeted properties, have promoted the case except where the investment is those property investment promoters potential benefits of SMSFs. This made through an SMSF. Let me be very that may not be complying with the includes the establishment of funds clear — a person requires an AFS licence Corporations Act. Specifically, ASIC is and, in particular, LRBA gearing if they recommend that an existing or concerned that real estate promoters strategies, apparently unrestricted proposed member of an SMSF purchase “…may not realise they are providing by licensing requirements. a property through their SMSF. financial product advice and need an The apparent push is not only This is because the vehicle through AFSL when making recommendations aimed at established SMSFs, but also which the underlying investment is or statements of opinion to a person at lower balance account holders made is an SMSF and an interest in to use an SMSF to invest in property.” wanting to get their foot in the an SMSF is a financial product.” With the use of LRBAs for property investment door. While the Then, in late October 2013, property investment becoming Corporations Act clearly excludes real ASIC also provided a warning commonplace, there is increased risk estate from being a financial product to consumers6 about advertising that promoters may recommend the and it can be marketed without the campaigns that had been launched use of SMSFs for property investment need for an Australian Financial promoting SMSF investment in without complying with the law. ASIC Services Licence (AFSL), the line is residential properties through has warned that penalties are severe, crossed when the promoter provides the National Rental Affordability with fines of up to $34,000 and/or any recommendation, directly or Scheme (NRAS). In ASIC’s view, two years’ imprisonment (or potential indirectly, that an SMSF should many of these promotions contained fines of $170,000 for corporations). be utilised. The rise in this type of misleading claims and did not present And it is not just unlicensed activity has definitely caught the a balanced view of the investment. advice that is in ASIC’s spotlight.
578 ANZPJ JUNE 2014
576-580_ANZPJ_June14_SMSF.indd 578 6/20/2014 11:15:06 AM Play.Play. Profit. estatemaster.com/profitestatemaster.com/profit
Untitled-2 1 3/11/2014 3:26:21 PM FINANCE
ASIC confirmed that it is aware believes that the trend will be An alternative ‘indirect of some real estate agents giving similar, if not higher, in 2014. lending’ model is becoming more financial advisors commissions Other than traditional instalment popular, where banks lend to a for recommending SMSF property warrants over stocks, most banks non-superannuation entity that in investment. These commissions are only prepared to lend on real turn offers the LRBA to the SMSF. have been banned by Future of estate assets. They are imposing Unsurprisingly, banks are happy Financial Advice (FOFA) reforms their own guidelines in an effort to to fund this approach as they have as conflicted remuneration, as they protect their customers from property full recourse security, while the may be seen to influence the quality spruikers and often will not lend to fund (and ultimately members of advice provided to consumers. a fund with a small balance, subject at retirement) generally benefit to rare case-by-case exceptions. from more flexible loan terms, FROM THE BANKERS Most banks use a panel of external including lower interest rates. It took some time for the banks to lawyers, in addition to their in-house become comfortable with SMSF resources, to ensure the arrangements FINAL WORDS borrowing, and for many years they are correct from the start. While this SMSFs continue to grow at an were definitely hard markers when incurs additional costs, most banks incredible rate. Investment in real trying to obtain a loan for an LRBA. argue that this is essential to ensure estate by the trustees of these funds Recent discussions with a the LRBAs comply for both the is clearly an appealing proposition number of banking professionals bank and the trustees of the SMSF. for many. The ability to borrow to do so increases the appeal for some, and even enables it for a few, but also increases the risks and WITH THE USE OF LBRAs FOR PROPERTY complexities. ASIC will continue to INVESTMENT BECOMING COMMONPLACE, monitor any spruikers attempting to THERE IS INCREASED RISK THAT PROMOTERS take advantage of the situation and MAY RECOMMEND THE USE OF SMSFs the bankers will continue to evolve FOR PROPERTY INVESTMENT WITHOUT their products to be competitive. COMPLYING WITH THE LAW. These are all good signs for both SMSFs and the real estate have provided insight into the Bank products are rapidly markets they are investing in. current conditions for lending to a changing as a result of customer SMSF as part of a LRBA. The more demand and increased competition positive current economic outlook among lenders. Establishment costs, appears to be swaying many of the ongoing interest, plus fees and charges REFERENCES bigger banks to loosen the noose have all become more competitive in on LRBA requirements. Most are recent years. Products have become 1 Sections 67A and 67B - Superannuation now more willing to compete to more flexible to meet customer Industry (Supervision) Act 1993 obtain their share of the market. demands. There has been a trend 2 SMSFR 2011/D1 The bankers interviewed towards alignment of key conditions 3 SMSFR 2012/1 all confirmed that there has for LRBAs with those of normal loan 4 Australian Tax Offi ce Self-managed super been significant growth in both arrangements (for example, interest fund statistical report – March 2014 the number of inquiries and rates and loan durations), albeit in 5 CPA’s SMSF Conference April 2013 number of formal applications for some cases with slightly lower lending 6 ASIC Media Release 13-285MR, LRBAs. One bank indicated they value ratios due to the additional 23 October 2013 had experienced 180% growth risks associated with the limited 7 ASIC Media Release 13-304MR, in 2013 for SMSF LRBAs and recourse nature of the security. 6 November 2013
580 ANZPJ JUNE 2014
576-580_ANZPJ_June14_SMSF.indd 580 6/20/2014 5:12:35 PM FINANCE
HOW MUCH CONFIDENCE HAS RETURNED TO THE A-REIT SECTOR? CHRIS CATANZARO, senior manager – corporate finance with BDO, analyses recent research and to predict the outlook of Australian real estate investment trusts.
ollowing the global fundamentals of property ownership to be returning to the sector. financial crisis, one and management. Relatively simple Evidence for this can be found in would be excused for strategies to maximise income and the results of the recently released thinking that longer lower risk have now assisted many BDO A-REIT Sector Update, which term property ownership A-REITs to rationalise their asset reviews the financial and operating isF a complex game. It has taken the portfolios and regain control of performance of listed A-REITs over harsh lessons learned during the their balance sheets. the six months to 31 December GFC to ensure that Australia’s real On the back of improving 2013. Led by Sebastian Stevens, estate investment trusts (A-REITs) balance sheets and lower interest national property and construction have refocused on the basic rates, confidence now appears leader, BDO has been releasing an
581
581-583_ANZPJ_June14_Confidence_BDO.indd 581 6/20/2014 5:40:01 PM FINANCE
annual A-REIT survey for the past S&P/ASX 200 A-REIT Accumulation premium to NTA at 31 December 19 years, tracking the performance Index recorded a total return of 24% 2013, compared to a 5% discount at of Australia’s real estate investment in FY13, outperforming the broader 30 June 2013. trusts. Our research suggests that market for the second year in a row. Encouragingly, the high yields and many trusts are now doing far better Although the A-REIT index has solid returns on offer within the sector than simply recovering, with many underperformed against the broader are also fuelling investor appetite for of the top performing A-REITs market so far in FY14 — returning new property offerings. A number representing compelling investment 7.5% compared to 19% for the broader of property trusts have successfully opportunities, characterised by solid market — the median unit price of listed on the Australian Securities earnings, low gearing levels and good A-REITs rose above the median NTA Exchange in recent months, attracting growth prospects. backing for the first time since the strong investor support. The recent GFC. In perhaps the clearest sign yet return of the initial public offering that the A-REIT sector is recovering, (IPO) market after years of inactivity is REASONS FOR OPTIMISM unit prices were at a median 2% welcome news and is likely to reinforce Our research provides several reasons to be optimistic when considering the medium- to long-term outlook for A-REITs. A key GEARING reason is the relatively conservative levels of gearing, which continue to 60% be observed across the sector. The 50% median level of gearing was 31% at 31 December 2013, up slightly 40% from 29% at 30 June 2013, but still significantly lower than the median 30% level of 49% at 30 June 2010. Current distribution yields 20% also provide cause for optimism. Although distribution yields were 10% slightly lower in HY14 — falling to 5.8% from 6.2% in FY13 — they remain 0% significantly higher than the yields DEC 09 JUN 10 DEC 10 JUN 11 DEC 11 JUN 12 DEC 12 JUN 13 DEC 13 available on bank deposits and many other investments. This provides A-REITs with the opportunity to undertake acquisitions in an accretive DISTRIBUTION YIELD manner and increases the attractiveness of A-REITs relative to other investments. 8% Further reasons for optimism 7% include an increase in the demand for longer-dated debt and improved 6% covenants from corporate bond 5% investors and banks, enabling managers to pursue M&A and other 4% growth opportunities with greater 3% flexibility. In addition, lower interest rates, 2% reduced funding costs, and a refocus 1% on higher quality Australian assets have led to increased operating profits 0% DEC 09 JUN 10 DEC 10 JUN 11 DEC 11 JUN 12 DEC 12 JUN 13 DEC 13 and greater returns for investors. The
582 ANZPJ JUNE 2014
581-583_ANZPJ_June14_Confidence_BDO.indd 582 6/20/2014 4:35:42 PM FINANCE
investor interest in the sector. investor appetite for higher gearing MANY TRUSTS ARE While the improved conditions levels is expected to gradually NOW DOING FAR and the reopening of the IPO improve, particularly if funding costs BETTER THAN SIMPLY market are yet to translate into continue to remain low. RECOVERING, WITH tightened capitalisation rates MANY OF THE TOP across the sector — with most of the • Weak leasing markets: Continued PERFORMING A-REITS improvement in valuations coming weakness in the leasing market REPRESENTING from improved rental income — there remains a concern, particularly in the COMPELLING are clear reasons for optimism, and CBD office market where vacancy INVESTMENT confidence appears to be returning to rates continue to remain above OPPORTUNITIES, the sector. The precursors for growth their long-term averages. Business CHARACTERISED BY are in place and A-REITs are again confidence, while improving, does not SOLID EARNINGS, becoming increasingly attractive yet appear to be at the levels required LOW GEARING investments. to drive strong increases in demand. LEVELS AND GOOD GROWTH PROSPECTS. • Economic and political uncertainty: CHALLENGES The ongoing uncertainty over Although confidence is returning to many economic and political issues, the sector, our conversations with both globally and domestically, senior executives from some of the also remains a key area of concern. best performing A-REITs suggest For example, the uncertainty over that a number of key challenges the current fiscal position of the remain, including: Australian Government is likely to adversely affect confidence and • Sourcing opportunities: As business sentiment. Valuation conditions conducive to acquisition uplifts and rental growth is likely and growth return, one of the biggest to be restricted over the near-term challenges for A-REITs will be finding in an environment where a sense of quality assets and securing them at nervousness still prevails, as is the the right price ahead of local and case in many areas of the economy. overseas investors. Although likely to reduce the yields available to new investors, the increased competition OUTLOOK for assets is also likely to compress Despite these challenges and the capitalisation rates, providing returns uncertainty they create in the to existing investors in the form near-term, the Australian economy is of valuation uplifts. well placed by global standards, and investors are likely to continue to be • Maintaining investor appeal: attracted to the relatively stable income Although low levels of gearing returns offered by many A-REITs. ordinarily imply a capacity to fund Capital markets are very much acquisitions and other growth open for business, provided a initiatives, the levels of gearing sound value proposition can be currently observed in the A-REIT demonstrated, and the conditions market reflect the current tolerance for growth and further merger and and expectations of equity and debt acquisition activity are in place. providers. An ill-timed or overly Overall, the outlook for the A-REIT aggressive increase in gearing sector over the medium- to long-term is levels may severely reduce investor positive, with the potential for the sector appeal and represents a key risk for to provide strong returns to investors the sector. As confidence returns, as confidence continues to return.
583
581-583_ANZPJ_June14_Confidence_BDO.indd 583 6/20/2014 4:35:58 PM XXXXXXX LEGAL NOTEBOOK 585 RECENT CASES, HEADLINE ISSUES AND NEW LEGISLATION: LEGAL LEND LEASE V BARANGAROO DELIVERY AUTHORITY FOR CONSIDERATION 589 COMPENSATING FOR ECONOMIC LOSS CAUSED BY NEW PROJECTS
584585844 ANZPJANZANANZZPJPJ JUNEJUNJUNNE 20120201401014
584_ANZPJ_June14_LegalContents.indd 584 6/20/2014 4:43:20 PM LEGAL LEGAL NOTEBOOK
Recent cases, headline issues and new legislation by Lindsay Joyce and James Morse, DLA Piper.
LEND LEASE (MILLERS POINT) returns from the commercial hot water after Barangaroo valuation PTY LIMITED V BARANGAROO precinct to the NSW Government, dispute. The article provided a useful DELIVERY AUTHORITY [2013] by so called ‘value share payments’ summary of the issues considered in NSWSC 1848 will be significantly less than this case, which are expanded upon originally estimated. in some detail below. It is important, however, to note SNAPSHOT that this case focused on the proper The recent decision of the Supreme construction of the specific contracts THE FACTS Court of New South Wales in Lend and agreements under consideration. The Barangaroo Delivery Authority Lease (Millers Point) Pty Limited v A different outcome may occur when (“Authority”) entered into a Project Barangaroo Delivery Authority [2013] different documents are considered. Development Agreement (“PDA”) NSWSC 1848 has confirmed that Further, the adoption of specific or with Lend Lease (Millers Point) Pty the New South Wales Government’s particular valuation methodologies Limited (“Lend Lease”) in March contributions to the development at still remains a matter for each 2010 after Lend Lease won the bid for Barangaroo are not to be considered individual valuer, according to the the $6 billion development project of as revenue when determining precise task at hand. a 22 hectare parcel of land in Sydney the current market value of known as Barangaroo. the development. Under the PDA, Lend Lease would By excluding the NSW INTRODUCTION receive significant contributions from Government’s contributions when Readers may recall the API Property the NSW Government to go towards determining the development’s land Industry News article published on 9 the development. In return, Lend value, it is expected that the predicted January 2014, entitled Government in Lease was to make a series of fixed
585
585-588_ANZPJ_June14_LegalNotebook.indd 585 6/20/2014 4:44:50 PM LEGAL
payments over time to the Authority was whether or not particular share payments. as well as value share payments. government contributions should be Importantly, changes in land taken into account as cash inflows value would affect the value share when determining the market value THE ARGUMENTS payments. This would allow both of the land. The PDA provided for a calculation parties to have an opportunity to If the government contributions, of the Current Market Value of the share the benefits of any increase amounting to approximately $1 land by reference to the discounted in value of the development. billion, were considered to be revenue cashflow methodology. The Authority estimated when determining Current Market Unsurprisingly, Lend Lease that the government’s financial Value; the value of the land and, as argued that a cashflow analysis contributions to the project would a result, the value share payments did not allow valuers to include be around $1 billion over a 15-year payable to the NSW Government, government contributions received period. The recuperation of the would increase. by Lend Lease as revenue. Lend Lease NSW Government’s contributions If the contributions by the NSW contended that the contributions through value share payments was Government were not considered were a funding arrangement to in compliance with government to be revenue, this would lower finance construction costs, and any policy that there would be no cost the value of the development inclusion of the payments made borne by taxpayers in NSW. and therefore, lower the value by the NSW Government to Lend
THE ISSUE Against the above background, Lend Lease sought a Court ruling on the interpretation of certain aspects of the PDA, specifically relating to the way in which the value of the land was to be determined, and how the government’s contributions were to be categorised. Central to the parties’ dispute was paragraph (g) of the definition of “Current Market Value” in the PDA. This paragraph provided that:
“The Purchaser is entitled to derive a pre-financing (ungeared) project IRR of (x)% in respect of the costs referred to in paragraph (e) and the carrying out of the approved development works.”
Key to the dispute was the meaning of “a pre-financing (ungeared) project IRR”. This was defined to mean “the discount rate at which the net present THIS CASE IS YET ANOTHER IMPORTANT value of the projected cashflows is REMINDER OF THE IMPORTANCE OF LAWYERS equal to zero”. Essentially, this involved comparing the monthly cash inflows AVOIDING AMBIGUITY WHEN DRAFTING ANY (revenue) and outflows (expenses) FORM OF CONTRACTS OR AGREEMENTS. relating to the development. At the core of this issue
586 ANZPJ JUNE 2014
585-588_ANZPJ_June14_LegalNotebook.indd 586 6/20/2014 4:45:28 PM LEGAL
Lease for the purpose of funding development. The Authority also his or her area of expertise, to work in advance of the project would contended that, according to API bear upon the reasonableness ultimately distort the assessment of standards, the words “pre-financing of a determination of Current Market Value within the (ungeared) IRR” found in paragraph value. However, they are relevant methodology. (g) of the definition of Current not necessarily, or directly, The Authority, however, Market Value did not exclude an ingredient in the maintained that the contributions pre-payments or progress payments. valuation exercise.” to the development should be Furthermore, the API standards considered as revenue for the supported the notion that projected In the decision, Justice Lindsay purposes of determining Current cashflows should take account of all focused on the importance of Market Value. The Authority cash inflows in the nature of income considering what a hypothetical contended that the contributions in order to arrive at a series of net purchaser would pay when from the NSW Government were not, cashflows, thereby including the determining Current Market Value. in practice, treated any differently government contributions. Justice Lindsay stressed that the to contributions from other third hypothetical purchaser in this parties involved in the development context is not an emanation of the and that all contributions were made THE DECISION developer (namely, Lend Lease). ultimately to obtain benefit from the Ultimately, the Court found in favour Justice Lindsay further of Lend Lease. emphasised that, to include the According to Justice Lindsay, a Government contributions on the valuer seeking to assess the Current revenue side of the cashflow analysis Market Value, could consider the would be: payments made by the Authority when assessing market incentives. “… to treat the hypothetical However, such payments are not purchaser as if it earned a necessarily to be included in a return on those amounts at land valuation. the percentage rate identified in paragraph (g) of the Justice Lindsay noted that: definition of Current Market Value. This is contrary to “(Government contributions) the substantive effect of made to the developer… cannot, the … agreement, which on the proper construction provides for the Developer to of the PDA, be fed into the make in favour of the Owner discounted cashflow exercise (Investor) an allowance … in for which paragraph (g) of the the nature of interest, definition of Current Market predicated, one may assume, Value (read with the definition on a commercial assessment of IRR) provides.” of the end value of the Works financed.” Justice Lindsay then elaborated on these conclusions, noting that: Overall, Justice Lindsay concluded that a valuer — in this specific fact “Those payments may inform scenario — was entitled to “take the valuation exercise insofar into account” the government as they may bear upon an contributions when determining assessment of the ‘market Current Market Value, as such rent’ and ‘market incentives’ payments may be indicative of market required to be the subject of conditions. However, such payments an assumption … or insofar were, essentially, “conceptually as they may be sought by an different” from the revenue Approved Valuer, acting within stream that would be available to a
587
585-588_ANZPJ_June14_LegalNotebook.indd 587 6/20/2014 4:45:47 PM LEGAL
hypothetical purchaser, and therefore should be calculated in any other the way in which value should should not be considered as revenue circumstance. However, the case be determined, to look closely at when determining the Current does indicate that close attention will the documents involved to Market Value of the land based upon be paid to any specific definitions determine whether they really a cashflow analysis. adopted in contractual documents. want the job. Additionally, in such The principal focus is, and must circumstances, valuers should reserve always be, on a literal and objective to themselves the right to seek CONCLUSION interpretation of the actual words independent legal advice to assist This decision confirms that, used. Consequently, parties to such them in their role. in some circumstances, cash contracts should each be careful to contributions paid to developers ensure that the words used are clear before completion of development and appropriate for the specific works may not be considered facts involved. AUTHORS’ NOTE ‘revenue’ for the purposes of Likewise, as we did in the The authors would like to take assessing the market value of the March 2014 edition of the Journal, this opportunity to thank Louise land based upon a cashflow analysis. we strongly encourage valuers, Carter, Solicitor at DLA Piper When assessing Current Market who find themselves in the Australia, for her research and Value, the proper enquiry is what a middle of a dispute regarding drafting assistance. “hypothetical purchaser” would pay. In this way, and in the circumstances of this case, the value of the land was not to be affected by the decisions made by Lend Lease regarding the financing of the development.
IMPACT This case is yet another important reminder of the importance of lawyers avoiding ambiguity when drafting any form of contracts or agreements. Uncertain or imprecise drafting in contracts can have unfortunate financial — or other — consequences for the parties. This case, like that referred to in the March 2014 edition of the Journal, again revisits the well known principles of contractual LINDSAY JOYCE JAMES MORSE interpretation, reinforcing that [email protected] [email protected] disputes between parties in relation to the meaning of a clause in a LINDSAY JOYCE IS A PARTNER AT DLA PIPER JAMES MORSE IS A SENIOR ASSOCIATE AT contract will be resolved not by AUSTRALIA WHO PRACTISES EXTENSIVELY DLA PIPER AUSTRALIA AND AN ACCREDITED reference to a fair or equitable IN THE AREA OF PROFESSIONAL NEGLIGENCE SPECIALIST IN COMMERCIAL LITIGATION. outcome, but rather with regard to AS IT AFFECTS PROPERTY PROFESSIONALS, MR MORSE ALSO PRACTISES IN THE AREA the language used and considered in INCLUDING VALUERS. BEFORE COMMENCING OF PROFESSIONAL NEGLIGENCE. MR MORSE the context of the contract as a whole. PRACTICE IN 1979, MR JOYCE PRACTISED AS REGULARLY ADVISES ON VALUATION LIABILITY Importantly, this case considered A VALUER FOR 10 YEARS, BEING ADMITTED ISSUES, HAS GUEST LECTURED AT THE one particular definition of AS AN ASSOCIATE OF WHAT HAS BECOME UNIVERSITY OF WESTERN SYDNEY ON LEGAL Current Market Value as written THE AUSTRALIAN PROPERTY INSTITUTE IN ISSUES ARISING FROM PROPERTY VALUATIONS, into the PDA, but it did not set 1973. HE ADVANCED TO FELLOW IN 1989 AND HAS DELIVERED VARIOUS RISK any precedent as to how value AND LIFE FELLOW IN 2005. MANAGEMENT MODULES FOR THE API.
588 ANZPJ JUNE 2014
585-588_ANZPJ_June14_LegalNotebook.indd 588 6/20/2014 4:47:25 PM LEGAL
COMPENSATING FOR ECONOMIC LOSS CAUSED BY NEW PROJECTS
ISABELLA FERFERGUSONGUSON ofof Beatty Legal highlights the need for fair comcompensationpens for businesses and landowners facingfacing losseslos based on intrusive iinfrastructurenfrastructure developments.developmen
conomic loss caused solely by the construction of a State or industry initiated infrastructure project does not presently, on its own,E attract a right to compensation for that loss. This is so even though a business may have been part of the local or regional social and economic landscape for decades, and was purchased well before any infrastructure development plans were on the horizon. In addition, the impact of the project will often destroy the value of the business or land.
589
589-592_ANZPJ_June14_BeattyLegal.indd 589 6/20/2014 4:50:46 PM LEGAL
Economic certainty and standards of to the acquisition of property “on just living can be irretrievably damaged in terms” from any State or person, for these circumstances. any purpose in respect of which the Economic loss caused by the Parliament has power to make laws development of new infrastructure can (section 51 [xxxi]). occur in a variety of ways. A business Most State infrastructure may experience economic loss directly developments involve the acquisition as a result of an alteration to a road of some land. In NSW, the “just terms” that diverts passing vehicle trade away principle is enshrined in NSW in the from the business. The impacts of a Land Acquisition (Just Terms) Act 1991 new or extended coal mine or wind NSW (Just Terms Act) which, as an farm may substantially diminish the object of the Act, aims to guarantee value (and enjoyment) of an existing that the amount of compensation will vineyard, or other tourist development be not less than the market value of the
ECONOMIC LOSSES RESULTING FROM THE DIVERSION OF TRADE DUE TO A ROAD ALTERATION, FOR EXAMPLE, OR THE CONSTRUCTION OF A NEW RAIL LINE CAN BE READILY QUANTIFIED BY FORENSIC ACCOUNTANTS.
situated in close proximity to it. land when land affected by a proposal Similarly, the construction of a new for acquisition by an authority of the rail line may reduce the volume of State is eventually acquired. pedestrian foot trade on which a The right to claim compensation business depends, thereby reducing under the Just Terms Act is triggered profits and the long-term viability when a legal or equitable interest in of the business. the land is acquired. Interpreting this New infrastructure may cause requirement as widely as possible, economic losses of a temporary nature a loss of access to an adjoining while construction is occurring, or it public road (being a statutory right may cause long-term economic losses established under the Roads Act 1993 resulting in the closure or sale of the NSW) is regarded as an “interest in business or land. Is this fair? Should land” for the purpose of s4 of the Just businesses view these losses as part Terms Act. of doing business and a necessary Therefore, if a compulsory risk of an expanding economy and acquisition of a public road results in growing population? Or should a the closing of that road, an adjoining new framework be established that landowner may obtain compensation enables businesses and landowners for losing access to his or her land via directly and specially impacted by that road, even in circumstances where new infrastructure or industry-based that road was not the only means of developments to be compensated by access to the landowner’s land, and the developer of the infrastructure? no land owned by the landowner was The Commonwealth Constitution actually acquired in the process. gives Parliament power to make The extinguishment of this access laws for the peace, order and good by the acquisition is treated similarly government of Australia with respect to an extinguishment of an easement.
590 ANZPJ JUNE 2014
589-592_ANZPJ_June14_BeattyLegal.indd 590 6/20/2014 4:51:09 PM LEGAL
This right is regarded as private, limited to adjoining landowners, and does not extend to every member of the public that may also have enjoyed and passed along the closed road. It follows that if a business adjoins a public road that was acquired, thereby resulting in loss of trade, that business could claim compensation under the Just Terms Act. Similarly, if the road was closed temporarily by a short-term leasehold acquisition — which is required to facilitate construction — compensation may also be sought under the Act. However, this Act does not recognise loss of value to land or other economic losses where a legal or equitable interest in the land is not taken , even though those losses may have been solely as a result of the acquisition. Additionally, it does not recognise acquisitions or losses arising from non-State initiated developments. Provisions under section 88K of the Conveyancing Act 1919 NSW and section 40 of the Land and Environment Court Act 1979 NSW similarly enable compensation to be paid to a landowner whose land needs to be temporarily used to allow construction to proceed or is required— via an easement for example— to enable drainage from another development to occur. In these cases there is a clear affectation of a landowner’s interest in the land. However, similar to the terms of the Just Terms Act, the entitlement to compensation only arises where a landowner has had an interest in land, whether equitable or legal, taken temporarily or acquired permanently. Looking at the examples referred to earlier, economic losses resulting from the diversion of trade due to a road alteration, for example, or the construction of a new rail line can be readily quantified by forensic accountants. Why should these businesses not be compensated in
591
589-592_ANZPJ_June14_BeattyLegal.indd 591 6/20/2014 4:51:28 PM LEGAL
some form, where they can show that The power exists for laws to be the impact will permanently cause a WHY SHOULD THESE made that enable compensation reduction in their revenue? BUSINESSES NOT BE of these businesses by the State on Economic loss caused by COMPENSATED IN “just terms”, but an alternative is debilitating amenity impacts SOME FORM, WHERE available. Parliament also has the emanating from a new or extended THEY CAN SHOW power to establish alternatives, such coal mine or wind farm will not attract THAT THE IMPACT as industry-based funded schemes an enforceable claim for compensation WILL PERMANENTLY that could be accessed by landowners on its own, unless the land is CAUSE A REDUCTION in special circumstances to claim nominated in the development consent IN THEIR REVENUE? compensation if they are not able to as land to be acquired. Properties do so under existing laws, such as the that are nominated for acquisition Just Terms Act. Perhaps these funds in development consents must meet could be accessed by businesses or a prescribed threshold and establish landowners who can establish that, in that their properties are so adversely the long-term, their revenues will suffer affected by noise, dust, vibration or by a stipulated proportion (say up to some other impact that the enjoyment 50%) or where there is some element of that property is no longer possible. of hardship that has been established. From experience, many owners Similarly, a legitimate case exists to whose lands do not meet this high help landowners access a fund in threshold are left with properties circumstances, for example, where they that have been devalued by the cannot sell their property on the open project to such an extent that they market following the approval of the cannot be sold for anything near project within a certain percentage of their initial market value. There the market value of the property, had are plenty of examples of businesses the project not been approved. and residential properties around There are many types of NSW that have been so adversely schemes that could be created impacted by infrastructure to fairly compensate businesses developments that they have ceased and landowners that genuinely trading or sold their property— if warrant special attention. Especially still saleable— on the open market, where, through no fault of their own, well below the price that it was they need to make way for newer, and initially purchased. often intrusive, developments.
592 ANZPJ JUNE 2014
589-592_ANZPJ_June14_BeattyLegal.indd 592 6/20/2014 4:51:56 PM XXX TRAVEL & CULTURE 594 AUSTRALIA’S BEST PROPERTY RELICS
GADGETS 596 REVIEWS - MAGELLAN CYCLO 505 LIFE - BELKIN WEMO SWITCH+MOTION
STYLE 597 SNAPSHOTS - SANDISK CONNECT WIRELESS MEDIA DRIVE - LIVESCRIBE 3 SMARTPEN
EVENTS 598 DETAILS FROM RECENT YOUNG PROPERTY PROFESSIONALS (YPP) EVENTS
593
593_ANZPJ_June14_LifestyleContents.indd 593 6/20/2014 4:53:43 PM LIFE STYLE AUSTRALIA’S BEST PROPERTY RELICS Though still a relatively young nation, Australia is home to some interesting property relics, with Sydney, for example, being founded even before cities like Washington DC, Johannesburg or San Francisco. Here are some of our nation’s historical buildings that we recommend you visit.
BRISBANE Windmill Tower As Brisbane’s oldest building, the Windmill Tower on Wickham Terrace has a rather dark history. Built in the late 1820s to grind maize, it is not just the longest surviving convict building, but also the oldest windmill in Australia’s existence. At the time of its construction, penal commandant Patrick Logan is said to have used convicts to keep the arms turning via a treadmill he constructed. Convicts worked in 8kg leg irons in the hot sun for 14 hours, or until collapsing. Two prisoners were also hanged from a high window of the Windmill for the general public to see. The mill continued to operate in the early days of free settlement and in 1861 became a signal station. From 1866 to 1894, a time gun went off at 1pm every day, and from 1894 to the 1950s, a copper time ball (which still sits on the roof) was dropped at 1pm every day. It was here in 1934 that the first television signals in the southern hemisphere were transmitted, which continued up until World War II. Customs House Customs House is a heritage-listed building on Queen Street by the Brisbane River. The building is a Brisbane landmark known for its distinctive copper dome, and was designed by Charles McLay of the Queensland Colonial Architect’s Office. Construction took three years at a cost of ₤38,346 and was completed in 1889. In 1908, seven years after federation, Customs House was acquired by the Federal Government, and then became redundant in 1988 when port facilities moved elsewhere. It was refurbished between 1991 and 1994 at a cost of $7.5 million and is now leased by the University of Queensland, operating as both a restaurant and function centre.
594 ANZPJ JUNE 2014
594-595_ANZPJ_June14_AusRelics.indd 594 6/20/2014 5:40:33 PM LIFE STYLE
SYDNEY Cadmans Cottage This rare example of an official colonial building is the oldest surviving residential building in Sydney, having been built in 1816. The building is heavily steeped in the history of Sydney, also claiming the title as the first building to have been built on the shoreline of The Rocks. The building has had several different uses in its lifetime—first as the abode of the four governmental coxswains (from 1816 until 1845), the headquarters of the Sydney Water Police (from 1845 to 1864) and as the Sailor's Home (from 1865 to 1970). Restoration occurred after the cottage was proclaimed a Heritage site in 1972 under the National Parks and Wildlife Act and control of the site was handed over to the Sydney Cove Redevelopment Authority. The building is now used as the home for the Sydney Harbour National Parks Information Centre. OldOld Government Government HHouseouse Old Government House in historic Parramatta is the oldest public buildingg in Australia, dating back to 1799. For seven decades it was the residence of 10 early governors of the colony. The central block was completed by Governor Hunter, though underwent significant extension by Governor Macquarie and his wife in 1815, designed by Lieutenant John Watts, which transformed the house into an elegant Palladian style residence. Surrounded by 200 acres of parkland, Old Government House was built on Darug land, home to the Burramatta tribe. The building contains Anglo and Indian influences with a strong emphasis on colour, through a meticulously researched ‘soft furnishings’ program. Rooms are furnished with pieces from the National Trust’s collection of early colonial furniture.
MELBOURNE SSt Francis' Church The Athenaeum TheT oldest surviving building The Athenaeum is Melbourne’s oldest cultural ini Melbourne’s CBD is St institution, starting life as the city’s Mechanics Institute Francis'F Church in Lonsdale in 1839. The Melbourne City Council met in the StreetS — a rare remaining relic building until 1852, when the Melbourne Town Hall was erected before the gold rush. built. The institution changed its name to the Melbourne The ‘mother church of Victoria’ Athenaeum in 1873, and the first movie shown in Australia was built between 1841 and was viewed in the Athanaeum Hall in 1896, which became 1845, designed by architect a regular venue for screening films. The theatre in its Samuel Jackson following present form was created in 1921 and was the first venue the arrival of Melbourne’s in Australia to screen talking pictures. The Athenaeum pioneer priest, the Franciscan housed a small museum in its early days and then an art Fr Patrick Geoghegan, in gallery, which closed in 1971, after which it was converted 1839.1839. TheThe buildingbbuilding becamebecameM Melbourne’s first Catholic into a smaller theatre space cathedral with the arrival of Bishop James Alipius Goold in by the Melbourne Theatre 1848. St Mary MacKillop made her first communion at St Company. Today it hosts The Francis’ in 1850, the same year that bushranger Ned Kelly’s Last Laugh Comedy Club parents were married in the church. The site has undergone and is used as a venue for several extensions as well as hosting many Catholic the Melbourne International activities, while the Society of St Vincent De Paul’s first Comedy Festival. Since 2003 Australian conference met in the church in 1854. St Francis’ it has also been the principal Church has also been a Eucharistic shrine since 1929. home of Melbourne Opera.
595
594-595_ANZPJ_June14_AusRelics.indd 595 6/20/2014 4:57:24 PM LIFE STYLE GADGETS
MAGELLAN CYCLO 505 REVIEW Rating: 4/5 Magellan’s Cyclo 505 GPS unit is an ideal biking companion. It tracks routes easily, uploads insights over Wi-Fi and then graphs your performance. Best of all, you don’t need to worry about the Cyclo 505 on a ride because it’s durable and waterproof. Its 3-inch screen offers track information/ performance stats to cyclists when at speed and then uploads them to Magellan’s cloud service for easy review over a computer. The colour screen is sharp and bright enough to display information in sunlight, cloudy conditions or in the thick of night. You can use the device to manage your smartphone by displaying text messages or answering calls. The Cyclo 505 will run for approximately four hours before needing a charge. One gripe with the online portal is that it only works with Internet Explorer, but Magellan has pledged to support Chrome and Firefox with updates. Other issues with the REVIEWS Cyclo 505 include that every tap of the screen causes it to beep and there is lag when typing. - Tony Ibrahim
BELKIN WEMO SWITCH+MOTION REVIEW has to be set up and configured using an app Rating: 4/5 on your smartphone, and it supports both iOS The Belkin WeMo Switch+Motion is a basic DIY and Android. home automation kit comprising a switch and a The WeMo Switch+Motion is one of the motion detector. It allows you to use your phone, simpler home automation kits on the market. a browser, or motion to control the ‘on’ and ‘off’ The best part is that it doesn’t require a state of anything you plug into it. professional to set it up; simply plug everything The kit comes with two parts: One part is the in, configure it, and you’re good to go. Plus, you switch into which you plug whatever electrical can add more switches if you want to control device you want to control. The other is a motion multiple devices. detector that can control the switch when it - Elias Plastiras senses you have walked into the room. The kit
596 ANZPJ JUNE 2014
596-597_ANZPJ_June14_Gadgets.indd 596 6/20/2014 4:58:16 PM LIFE STYLE GADGETS
SANDISK CONNECT WIRELESS MEDIA DRIVE LIVESCRIBE 3 SMARTPEN SanDisk’s Connect Wireless Media Drive can be Unlike its predecessors, the latest Livescribe used to wirelessly stream and transfer content to smartpen has no built-in microphone, SNAPSHOTS and from Android and iOS devices. Additionally, speaker, or storage. Instead it relies on an it can be used to store data from those devices. iPhone or iPad to record and play back audio. The Wireless Media Drive is available with either The key difference between the Livescribe 32GB or 64GB of storage, and it even has an SD 3 and previous models is that all sound card slot on the side so you can share photos from recording is done by mobile device. The a digital camera or just increase storage space of smartpen has been developed to pair with the device. It’s designed to be an on-the-go device, the latest models of the iPhone and iPad, and and can easily be carried around in a pocket. it requires the Livescribe+ app to operate. - Elias Plastiras A leather-bound Livescribe notebook is included in the Pro Pack. - Nermin Bajric
597
596-597_ANZPJ_June14_Gadgets.indd 597 6/20/2014 5:08:19 PM LIFE STYLE EVENTS
e take a look at some recent events organised by different state divisions of the API’s Young RECENT YPP Property Professionals (YPP). These popular events provide a Wplatform for experienced professionals to share their wisdom, while allowing young people the chance to EVENTS develop and network in a fun and social environment.
NSW EVENT The YPP’s first event for 2014, Workplaces of the Future, was a great success. On 10 April, members in Sydney and its surrounds heard presentations from Google, GPT and Calder Consultants about the importance of collaboration, productivity and the increasing need to understand how people interact in the workplace. The event also provided the opportunity to network with young and energetic people from the property industry.
PRESENTING: HAYDEN PERKIN, WORKPLACE SERVICES PROGRAM MANAGER ASIA-PACIFIC, REAL ESTATE & WORKPLACE SERVICES, GOOGLE
598 ANZPJ JUNE 2014
598-600_ANZPJ_June14_Events.indd 598 6/20/2014 5:00:41 PM INTRODUCING THE API WHITEPAPER LIBRARY
To complement our quarterly print publication, the Australian Property Institute has developed a new online whitepaper depository. This website will host a number of articles relevant to the property industry, prepared by a variety of thought leaders, academics, and industry figureheads. All papers are accessible via http://news.api.org.au/section/featured_whitepapers
HAVE SOMETHING TO SAY? Whether you’re looking to share your latest research paper, shine a light on pertinent issues within the industry, or put forward new concepts and ideas, we want to hear from you. If you’d like to submit a paper for review, please contact us at [email protected] or email Managing Editor Kelli Wells [email protected].
ANZPJ_Whitepaper_FP_Ad_June14.indd 1 6/20/2014 5:05:14 PM LIFE STYLE EVENTS
QLD EVENT Queensland YPP members were treated to a special careers evening held at the UQ Business School on 15 May. The two-hour event included presentations from a range of successful and influential property professionals from Davidson Recruitment, Knight Frank and the Deloitte Capland Real PANEL MEMBERS FROM LEFT TO RIGHT: AARON TIMMINS, KNIGHT FRANK; Estate Advisory. Speakers recalled INEKE READ, DAVIDSON RECRUITMENT; TIM WINTERFLOOD, DELOITTE the experiences, challenges and CAPLAND REAL ESTATE ADVISORY; AND RON VAN HAREN, AUSTRALAND. successes in their careers to date, offering advice for people ranging from university students through to people who are looking for a career change but are unsure where to start. The evening was followed by drinks and the opportunity to network with experienced professionals and young property peers alike.
VIC EVENT Following succesful networking drinks, the Victorian arm of the YPP teamed with Michael Page Recruitment to arrange a YPP River Cruise event on the evening of 11 April. Attendees were advised to assemble at Southgate Wharf Berth 5, Southbank Promenade, and to ‘BYO sea legs’. Once aboard the evening’s venue, they were treated to canapés, drinks and music from a DJ, and were able to network in a fun and unique setting. This event was sure to have made a splash!
600 ANZPJ JUNE 2014
598-600_ANZPJ_June14_Events.indd 600 6/20/2014 5:01:06 PM Looking at taking the next step in your career?
Preston Rowe Paterson is one of Australia’s most experienced and well regarded property services companies with expertise across the full spectrum of property classes. Specialising in valuation and advisory, we provide added value and risk adverse solutions to a wide range of property decision makers and stakeholders.
At P res to n Rowe Pate r so n we b e l i eve t h at o u r p e o p l e a re o u r m o s t i m p o r ta nt asset. Our team prides itself on honesty, integrity and transparency.
We have a suppo r tive cultu re which respects ou r team member s, emb races diversity and looks to assist everyone to achieve their highest potential, be this through reward for effort, education or mentoring.
PRP Australian OfÀ ces: Vacancies now exist in a number of locations
We are offering: Capital Cities: • Excellent conditions Adelaide +61 8 8277 0500 • Flexible working arrangements Brisbane +61 7 3846 2822 • Great supportive team environment Melbourne +61 3 9602 0555 • State of the art valuation technology Sydney +61 2 9292 7400
If you are a CertiÀ ed Practicing Valuer (CPV) or Residential Practicing Regional: Valuer (RPV) and have excellent attention to detail, are highly organised, Albury/Wodonga +61 2 6041 1362 a team player and a great communicator, then we can offer you a great Ballarat +61 3 5334 4441 career pathway Bendigo +61 3 5444 0737 Cairns +61 7 4031 9552 Location Position Central Coast +61 2 4324 0355 Albury Wodonga GIS Support OfÀ cer Geelong +61 3 5221 9511 Albury Wodonga Valuer/Land Economist Gippsland +61 3 5672 4422 Ballarat Property Valuer GrifÀ th +61 2 6041 1362 Bendigo Residential Valuer Mornington +61 3 5976 0900 Newcastle +61 2 4922 0600 Brisbane Residential Valuer Wagga Wagga +61 2 6041 1362 Melbourne Residential Valuers Warrnambool +61 3 5562 5851 Melbourne Plant & Machinery Valuer Newcastle Property Valuer Newcastle Trainee Valuer Sydney Commercial Valuer FOLLOW US ON: www.prp.com.au Sydney Residential Valuers Sydney Plant & Machinery Valuer Warrnambool Property Valuer
Apply in conÀ dence with a CV and covering letter to: [email protected]
PRP_anzpj_Fullpage.indd 1 6/11/2014 3:41:54 PM CAPABILITY LOCATOR
CAPABILITY LOCATOR
STATES VALUATION PROPERTY SECTOR Î ACT NSW NT QLD SA TAS VIC WA Agribusiness Commercial Industrial Residential Retail Rural AVA PROPERTY • •••• BEM PROPERTY CONSULTANTS • • • • • • • • •••• BUTTERWORTH AUSTRALIA • • • • • • • • • CBRE ••• ••••••••••• CHARTER KECK CRAMER • • • • • • • • •••• COLLIERS INTERNATIONAL •••••• ••••• •• DOWLINGS • • • • • • • • •••••• EDMONDS ASSOCIATES VALUERS • • • • • • • • •••••• JLL ••• ••• •• •••• KENDALLS • • •••• KNIGHT FRANK •••••••••••• •• MJ DAVIS REALTY APPRAISALS • •••••• MVS NATIONAL •• ••••••• OPTEON PROPERTY GROUP •••••••••••••• PRESTON ROWE PATERSON •• •••• •••••• SAVILLS •••••••• •••• TAYLOR BYRNE ••• •••••• TPC VALUERS ••••• WK WOTTON & PARTNERS • • ••••• • OFFICE LOCATION • SERVICES PROVIDED
602 ANZPJ JUNE 2014
602-603_ANZPJ_CapabilityLocator_240414.indd 602 6/20/2014 12:05:03 PM CAPABILITY LOCATOR
VALUATION SPECIALITY CONSULTANCY CORPORATE REAL ESTATE Aged Care & Nursing Homes Development Expert Witness Industries Extractive Facilities Management Hospitals Hotels Motels & Plant & Equipment Portfolio Property Management Pubs & Licensed Clubs Retirement Villages Site Management Value Appeals Planning Research Risk Management Disposals & Acquisitions Compulsory Acquisitions Management Leasehold Law Property Site, Search & Selection Tenant & Owner Representation • • • • • • • • •• • •••• •• • • • • • • • •• • • • ••••• • • •••••••••••••• • • • • • • • ••• • • •• • •• ••• • •••• •••• •• •• ••• •• • • • • • • • •• • • •••• ••• • • • • • • • •• • •• ••••••••••• • • ••••••••••••• ••••• •• •••••• •••••• •••••••••••••••••••••• •••• • • •• •• •• ••• • • •••• ••• •• ••• •• ••• ••••••••• ••••• •• •••• ••••• • ••••••• ••• •••••• • •• •• •••
603
602-603_ANZPJ_CapabilityLocator_240414.indd 603 6/20/2014 12:05:23 PM ANZPJ PROFESSIONAL DIRECTORY
AVA PROPERTY
Nicholas Bond AAPI a: 15 William St, Richmond, VIC 3121 Trevor Crittle AAPI t: (03) 9428 7676 Tim Williamson AAPI f: (03) 9428 7672 Matthew Crowther AAPI www.avaproperty.com.au Caitlin Uren AAPI
BEM PROPERTY CONSULTANTS & VALUERS
IAN BLACKALL FAPI STEVE ECCLESTON FAPI RICHARD MONTAGUE AAPI
a: Level 4, 12 Mount St, North Sydney, NSW 2060 m: PO Box 1741, North Sydney NSW 2059 t: (02) 8920 3044 e: [email protected] www.bemproperty.com.au
BUTTERWORTH AUSTRALIA Identity throughout Australia a: 21 Aristoc Road, Glen Waverley, VIC 3150 Bob Butterworth FAPI t: +61 3 9884 7336 e: [email protected] The Valuation Expert for Hospitality, www.butterworth.com.au Tourism & Leisure
CBRE VALUATION & ADVISORY SERVICES MARKET LEADING NATIONAL TEAM SPECIALISING IN A RANGE OF PROPERTY RELATED VALUATION SERVICES
• Commercial (Industrial, Office & Retail) • Development (Residential & Commercial) • Institutional (Industrial, Office & Retail) • Residential For General • Agribusiness Enquiries: • Rating and Taxation t: 1300 407 092 • Government www.cbre.com.au 2013 EuroMoney #1 • Hotels Advisor In • Litigation and Compensation Valuations Globally • Capital Allowances and Tax Depreciation Services & For Australia
A Fortune 500 Company 2014 World’s Most Ethical Companies
604 ANZPJ JUNE 2014
604-608_Cards_alpha_240414.indd 604 6/20/2014 12:06:17 PM ANZPJ PROFESSIONAL DIRECTORY
CHARTER KECK CRAMER
ADVISORY PROJECTS PETER HUTCHINS APPI Corporate Real Estate Land Surveying Managing Director Accommodation Solutions Civil Engineering Strategic Asset Management Quantity Surveying a: Level 19, 8 Exhibition St Development & Project Melbourne, Victoria, 3000 RESEARCH Management t: (03) 8102 8888 Market Research e: [email protected] Urban Economics & Policy VALUATIONS www.charterkc.com.au Residential Commercial Specialised
COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES t: +61 2 92570222 e: [email protected] www.colliers.com.au
EDMONDS ASSOCIATES VALUERS
Philip Edmonds B.Ec (Hons) FAPI a: Suite 2D, 1 Gurrigal St, Mosman, NSW 2088 Certified Practising Valuer t: (02) 9960 8244 Certified Practising Accountant e: [email protected] www.edmonds-associates.com.au
JLL WEIGH UP YOUR OPTIONS Valuation experience and expertise plays a crucial John Talbot role in maximising asset value. This includes Managing Director, sales, acquisitions, property finance and strategic Investments and Advisory Group, Australia property asset planning. t: +61 2 9220 8486 e: [email protected] www.jll.com.au Melbourne — Brisbane — Canberra — Sydney — Adelaide — Perth
605
604-608_Cards_alpha_240414.indd 605 6/20/2014 12:07:11 PM ANZPJ PROFESSIONAL DIRECTORY
KENDALLS VALUATION & ADVISORY
• Specialist Retail Valuations under RSL Act 1994 John Kendall FAPI • Expert Valuations / Evidence for Litigation Trials a: Level 4, 345 Ann St, Brisbane QLD 4000 • Port Infrastructure / Marina / Riparian Valuations t: (07) 3613 7394
NAVIGATING A BALANCED OUTCOME • Commercial & Industrial Freehold / Leases m: 0434 227 253 • Tourism / Leisure / Hospitality Valuations e: [email protected] • Wide Range of Specialised Valuation Classes www.kendallsva.com.au
K L DOWLING & CO
John K Dowling FAPI FREI • Rental Determination a: Second Floor, 415 Bourke K L Dowling & Co Valuations and Expert Evidence • Mediation & Arbitration Street, Melbourne 3000 prepared for: • Sale, purchase & loan security t: (03) 9600 1314 • Litigation • Insurance & general purposes f: (03 9600 1402 • Compensation e: [email protected]
KNIGHT FRANK AUSTRALIA VALUATIONS AND ADVISORY SERVICES
www.knightfrank.com.au/en/professional-services/valuations
MJ DAVIS REALTY APPRAISALS CONSULTING VALUERS
Tony Looby FAPI Murray Liston AAPI Colin Sorrenson FAPI Director Director Consultant e: [email protected] e: [email protected] e: [email protected]
www.mjdra.com.au po: PO Box 565. Liverpool. NSW. 1871 • t: (02) 9601 2500 • f: (02) 9822 5783 • e: [email protected]
MVS NATIONAL NSW - QLD - VIC
t: 1300 793 688 e: [email protected] www.mvsvaluers.com.au
606 ANZPJ JUNE 2014
604-608_Cards_alpha_240414.indd 606 6/20/2014 12:08:08 PM ANZPJ PROFESSIONAL DIRECTORY
OPTEON PROPERTY GROUP National property valuation and advisory group with 25 offices, 70 locations and over 700 staff around Australia. We offer full services for:
• Residential Head Office • Commercial a: Lumley House • Agribusiness & Rural Level 8, 309 Kent St, • Plant & Machinery Sydney NSW 2000 • Government Services t: 1300 733 693 • Advisory e: [email protected] • Tax Depreciation & Quantity Surveying www.opteonpropertygroup.com.au
® Capital City Offices Phone Sydney Greg Preston/Greg Rowe (02) 9292 7400 Melbourne Damian Kininmonth/Neal Ellis (03) 9602 0555 Brisbane Troy Chaplin (07) 3846 2822 Adelaide Rob Simmons (08) 8277 0500
Regional Offices- NSW Albury/Wodonga Daniel Hogg/Michael Redern (02) 6041 1362 Gosford Bob DuPont/David Rich (02) 4324 0355 Griffith Daniel Hogg (02) 6041 1362 Newcastle Bob DuPont/David Rich (02) 4922 0600 Services: Wagga Wagga Daniel Hogg (02) 6041 1362 • Valuation • Asset Management Regional Offices- VIC • Fair Value Valuations Ballarat Darren Evans (03) 5334 4441 • Property Consultancy Bendigo Damien Jerinic (03) 5334 4501 • Plant & Machinery Valuation Geelong Gareth Kent (03) 5221 9511 • Corporate Real Estate Gippsland Alex Ellis/Tim Barlow (03) 5672 4422 • Strategic Portfolio Planning Mornington Neal Ellis (03) 5976 0900 • Insurance Replacement Costs Warrnambool Stuart McDonald (03) 5562 5851 • Rental Advisory Yarram Alex Ellis/Tim Barlow (03) 5672 4422 • Property Management • Research Regional Offices –QLD • Statutory Valuations Cairns Robert Cowell/Brian Walsh (07) 4031 9552 www.prp.com.au
SAVILLS ADVICE THAT GIVES ADVANTAGE. Savills is a leading global real estate service provider. We’ve been connecting people and property since 1855 and have deep experience across the Asia Pacific, with over 45 offices. In Australia, we have over 800 staff focused on meeting all your property needs.
• Sales & Investment a: Level 7, 50 Bridge Street, • Leasing Sydney, NSW 2000 • Asset Management t: +61 (0) 2 8215 8888 • Valuation & Consultancy e: [email protected] • Project Management savills.com.au • Corporate Advisory • Residential Projects • Luxury Residential Sales
607
604-608_Cards_alpha_240414.indd 607 6/20/2014 12:08:31 PM ANZPJ PROFESSIONAL DIRECTORY
TAYLOR BYRNE RESIDENTIAL • COMMERCIAL • RURAL Head Office INDUSTRIAL • RETAIL • LITIGATION a: 67 Grey St, South Brisbane QLD 4101 FAMILY LAW • ACQUISITION t: (07) 3840 3000 www.taylorbyrne.com.au QLD OFFICES: Brisbane | Bundaberg | Cairns | Emerald | Gold Coast | Hervey Bay | Gladstone Kingaroy | Rockhampton | Roma | Mackay | Sunshine Coast | Toowoomba | Townsville NSW OFFICES: Ballina | Coffs Harbour | Grafton | Inverell | Lismore | Port Macquarie
TPC VALUERS
Damien Taplin AAPI CPV C.P.M. Tas a: 5 Audley Street. North Hobart TAS 7000 Managing Director t: (03) 6231 6688 m: 0418 513 003 Leigh Wheeler, AAPI CPV e: [email protected] Kurt Austin, PMAPI RPV www.tpcvaluers.com.au Andy Bevin, AAPI CPV Tanya Simm, Graduate Valuer
WKW WAYNE WOTTON FAPI Partner m: 0408 933 385
WK WOTTON & PARTNERS a: Suite 49 Upper Deck Jones Bay Wharf, 26 – 32 Pirrama Road, Pyrmont, NSW 2009 t: +61 2 9552 6633 e: [email protected]
DAVID CURTIS AAPI Partner m: 0407 778 954
WOTTON CURTIS & PARTNERS a: Suite 1, Level 1, 3 Hopetoun Street, Charlestown, NSW 2290 m: PO Box 273, Newcastle, NSW 2300 t: +61 2 4920 7111 e: [email protected] www.wkw.com.au
Real Estate Valuers Property Consultants Real Estate Asset Managers
608 ANZPJ JUNE 2014
604-608_Cards_alpha_240414.indd 608 6/20/2014 12:08:53 PM WWW.MVSVALUERS.COM.AU
INNOVATIVE CAREER DEVELOPMENT LEADER PROFESSIONAL INTEGRITY
NATIONAL
BECOME A VALUER WITH MVS NATIONAL
Develop your Career with Industry Leading Training and Mentoring
NATIONAL --‘Our ‘ Our People Are Our Advantage’