Resort News - October 2018

Registered by Australia Post Print Post No. 100023799

resortnews Issue 266 | October 2018 | $13.75 inc. GST

The Monthly Magazine for Accommodation Industry Professionals

www.accomnews.com.au

Special Report

Profiles

Methamphetamine: the modern-day asbestos explosion

Surfers Aquarius: Industry pioneers bring their unique brand of magic to Gold Coast icon Park View: Bold moves bring big rewards

management rights • hotels • motels • resorts • holiday parks • time share • hosted We specialise in furniture for hotels, motels, serviced apartments, resorts and refurbishments.

Call Dennis Clark now on 0421 384 212 dennis@hotelinteriors.com.au hotelinteriors.com.au • 1300 876 055

Dennis Clark

Founder

MDIA

The fastest growing accommodation listings website Listings from all the leading brokers on the one website

Motel

Sales Specialist

“A website for buyers/sellers such as Accom Properties has been well overdue for years.

Buyers don’t want to view multiple websites to see whats for sale in a particular region or town, they want all properties on the market with relevant criteria at their fingertips now and you’ve been able to provide a platform which is fantastic. Well done.”

– Brett Salter, National Accommodation Manager, ALH Group Limited

www.accomproperties.com.au

MANAGEMENT RIGHTS MOTELS REAL ESTATE SPECIAL PROJECTS PROJECT MARKETING

SUNSHINE COAST

RIVERFRONT DREAMS COME TRUE..

A SUPERB LIFESTYLE AWAITS Located in a stunning and peaceful riverfront hideaway amongst some of the most sought after real estate Maroochydore has to offer. There are no set office hours. Large renovated modern 3 bed 2 bath a/c, Extensive wrap around courtyard, Pets welcome with BC approval. This management rights package provides waterfront living with an income as an added bonus.

Sasha Jancevski 0406 075 270 – sasha@raas.com.au

Nett: $73,000

Total Price: $870,000 BRISBANE

MANAGEMENT RIGHTS IN NEW HIGH RISE IN PRIME BRISBANE LOCATION This high rise is in a prime location within 4 kms from Brisbane. There is a mixture of long term and short term letting with 74 units in the letting pool. The Management Rights has an annual income of approximately $250,000 with potential for growth through additional rental management and on site maintenance.

Jon Love 0481 522 115 – jonl@raas.com.au

Nett: $250,000

Expressions of Interest BRISBANE

BEAUTIFUL BAY SIDE This is a delightful complex in a beautiful area close to all amenities. It would be ideal for a first timer or someone who wants to go a little bigger. There are no hidden secrets in this one. You will enjoy a lovely life style. Income has been varified by KARM Group. Complex has just been fully painted.

Robert Collins 0404 678 792 – robertc@raas.com.au

Nett: $184,554

Total Price: $1,175,000

GOLD COAST

A SOLID BUSINESS, A GREAT NET PROFIT, RENOVATED MANAGERS UNIT, ABSOLUTE BEACH FRONT! These management rights offer an excellent opportunity to manage a successful business, generating a solid income while living footsteps from the sand of beautiful Palm Beach. The unit has been recently renovated with a lot of thought put into practical use of space. The living area looks straight out onto the sand and waves.

Jonathan Shorter 0405 537 600 – jonathans@raas.com.au

Nett: $141,772

GROW YOUR BUSINESS

INCREASE YOUR INCOME

Total Price: $1,318,000

PROTECT YOUR INVESTMENT

Phone 07 5593 0007 www.raasrights.com.au

front desk |

Inside Front Desk

tourism

05 Editor's Note

32 Tourism Report

06 Feedback

33 Tourism International

industry

events & appointments

07 News In Brief

34 Events 35 ARAMA Industry Events Calendar 36 People

10

ARAMA Report

11

NSW Strata Report

developments

12

BCCM Report

13

SCA Report

37 News 39 The Last Resort

14

Special Report: Methamphetamine – the modern-day asbestos explosion

management

property

Surfers Aquarius: Industry pioneers bring their unique brand of magic to Gold Coast icon

40 New Manager Profiles

management rights • hotels • motels • resorts • holiday parks • time share • hosted

40 Resort News Sales Report 41

New Manager Profiles

17

Thinking Accommodation

18

By All Accounts

profiles

19

Motel Market

54 Park View North Lakes: Bold moves bring big rewards

24 Keeping House 26 Cladding Update: Time running out for cladding reviews

resortnews EDITORIAL

Trish Riley - Editor, t.riley@multimediapublishing.com.au

58 Surfers Aquarius on the Beach: Industry pioneers bring their unique brand of magic to Gold Coast icon

preferred suppliers 61

The Preferred Supplier Directory

Resort News welcomes editorial contributions and images on relevant topics for features, new product profiles and news items. Please email copy to editorial@resortnews.com. au. Images should be in high resolution (300dpi) JPEG or TIFF format.

INDEMNITY

production@resortpublishing.com.au

Advertisers, Editorial Contributors and their Agents (Contributors) warrant to the publisher that any advertising or editorial material placed in Resort News is in no way an infringement of any copyright or other right and does not breach confidence, is not defamatory, libellous or unlawful, does not slander title, does not contain anything obscene or indecent and does not infringe the Trades Practices Act or other laws, regulations or statutes. Moreover, Contributors agree to indemnify the publisher and its' agents against any claims, demands, proceedings, damages, costs including legal costs or other costs or expenses properly incurred, penalties, judgements, occasioned to the publisher in consequence of any breach of the above warranties.

ADVERTISING

DISCLAIMER

Stewart Shimmin s.shimmin@resortpublishing.com.au

Any mention of a product, service or supplier in editorial is not indicative of any endorsement by the author, editor or publisher.

Although the publisher, editor and authors do all they can to ensure accuracy in all editorial content, readers are advised to factcheck for themselves, any opinion or statement made by a reporter, editor, columnist, contributor, interviewee, supplier or any other entity involved before making judgements or decisions based on the materials contained herein.

Rosie Clarke - Industry Reporter Mandy Clarke - Industry Reporter CONTRIBUTORS Simon Barnard, Arvo Elias, Jonathan Hanaghan, Chris Irons, Christiane Momberg, Andrew Morgan, Col Myers, Mike Phipps, Martin Punch, Trevor Rawnsley and Dave Wright.

PRODUCTION

SUBSCRIPTIONS $165 for 12 Months/$297 for 24 Months Gavin Bill - Services & Subscriptions subscriptions@resortpublishing.com.au

04

www.accomnews.com.au

Profiles

42 Spotlight on the Gold Coast: The Gold Coast property market – a cautious confidence prevails

23 Intonet

The Monthly Magazine for Accommodation Industry Professionals

Methamphetamine: the modern-day asbestos explosion

Legal Ease

22 Training

resortnews Issue 266 | October 2018 | $13.75 inc. GST

Special Report

16

20 To Market

Registered by Australia Post Print Post No. 100023799

Issue 266 | October 2018

resortnews | october 2018

We specialise in furniture for hotels, motels, serviced apartments, resorts and refurbishments.

Park View: Bold moves bring big rewards

Cal Cal all D De ennis Clark now on 0421 384 212 de den de en nnis n @hotelinteriors s.com.au hotelinteriors.com.au • 1300 876 055 ho hot

Dennis Clark Founder

MDIA

Key - For easy perusal Commercial or supplier case study Supplier information or content Suppliers share their views in one-off, topical pieces General editorial. Case studies and features may cite or quote suppliers, please be aware that we have a strict ‘no commercial content’ guideline for all magazine editorial, so this is not part of any commercial advertorial but may be included as relevant opinion. Happy reading!

Resort News, its publisher, editor and staff, is not responsible for and does not accept liability for any damages, defamation or other consequences (including but not limited to revenue and/or profit loss) claimed to have occurred as the result of anything contained within this publication, to the extent permitted by law.

VIEWS & OPINIONS The views expressed in Resort News do not necessarily reflect the views of the publisher, editor, staff or associated companies. The information contained in Resort News is intended to act as a guide only, the publisher, authors and editors expressly disclaim all liability for the results of action taken or not taken on the basis of information contained herein. © 2018. No part of this publication may be reproduced without written permission from the publisher.

Resort News is proudly published by Resort Publishing a division of Multimedia Pty Ltd ABN 77-126-017-454

Ph: (07) 5440 5322 Fax: (07) 5604 1680 PO Box 1080, Noosaville BC Qld 4566 Email: mail@resortpublishing.com.au

Editor's Note

We’re in the people business

| front desk

Trish Riley Editor t.riley@multimediapublishing.com.au

How often do entrepreneurs hear the question, “What business are you in?” Their eyes light up as they talk about innovations, market response and customer experience platforms. They unleash a passionate volley about the uniqueness and benefits of the particular widget they make or sell, and the business model they’ve chosen.

maximise the value of the property's greatest asset—its team members. Only then can you enhance the value experienced by guests. So invest in them, value them and expect great things from them. They, in turn, are likely to be in the business of trying and doing a little bit better, and being a little bit better every day.

But here’s a contrarian view. How many believe they are in the people business? That’s what I like to think and my time in the strata, management rights and real estate sectors has me believing that you’re in the people business too – and I’m not just talking residents.

This may seem simplistic. But as the manager, when you are able to treat the people in your business like they are as important as you (which, in fact, they are), you will see the results that you need.

Your companies are ostensibly about real estate, inventory management and the provision of specialised services. You support manufacturers, suppliers and

even multi-national online organisations but deeper than this, your business is the culmination of the vision and hopes of a team of people – regardless of the number. Your team is your business.

Business can be diff icult. Life can be too. But with a people-centric

focus, a team is able to construct a fabric that lifts its members up when bumps and bruises come along.

Properties that desire a substantial boost in occupancy levels and revenue must first and foremost come to an active decision to leverage and

resortnews | october 2018

If we strive to create a wholesome and happy environment, then everything else will follow.

Thank you for joining me here, happy reading and I hope you enjoy this issue of Resort News.

05

front desk | Feedback

Huge boost in direct bookings as Dick Smith campaign bites “Airbnb’s Australian country manager for Australia, Sam McDonagh, says his organisation supports the introduction of “fair and progressive rules” to govern home sharing in Western Australia, with the state government currently looking to introduce reforms.”

What’s fair and progressive is respecting the fact that we bought into Residential housing and Airbnb and their ilk are operating illegally.

Sam McDonagh/Airbnb: Get out.

Chris Wilson

•

Hi, just had a booking as a result of Dick Smith interviews last night.

•

Hi, I just had a three-day booking. They saw Dick Smith on the tele and wanted to book direct ya.

•

I have had two customers say they saw Dick Smith and did not realise the OTAs were doing this to small businesses.

I gave them a discount on the room rate.

•

Had our first enquiry about calling direct for better rates on the weekend. They heard Dick’s message!

•

“Dick Smith’s viral social media video urging Aussies to bypass commission-charging online travel agents (OTAs) and contact motels direct has prompted an explosion of in-person bookings.

“We have had some great feedback from our members about the increase in direct phone bookings they are now receiving, as well as an increase in bookings done on their own websites by an average of 25 percent across the Budget Motel Chain.”

“We are really excited about what is happening.”

“Additional comments from within the group include:

A staff member of a company told their office to only book direct now. The office sent thorough their credit card details to put on file.

Chris Fozard, Budget Motel Group operations manager

Dick Smith exclusive: “Colossal response makes me feel good about Australia” Airbnb has the lowest commission of any of the OTAs. They “allow” you to accept or reject a booking, no way will Booking.com or Tripwhinger give you that “right”.

Besides that, it does not allow

SUNSHINE COAST & QUEENSLAND WIDE

anonymous reviews. I regard them as the least worst of all the OTAs. Andrew North Charges for Short Term Rental Accommodation have increased by 600 percent since the arrival of Airbnb and Expedia on our Australian shores plus we are unable to vet clients or not accept bookings without being penalised by these international moneymaking machines who interfere in our political process.

That’s a very interesting article. For so long brand marketers refused to allow having people appear in hotel photos, yet anyone knows that a photo with a human enjoying the environment is far more likely to engage a viewer than a stark room or lobby photo. A smiling couple or a joyous family says far more about a hotel experience than marble and minimalist furnishings.

Dan Davis

Peter Hook

Parity ban close as ACCC gets a roasting The consumer watchdog has given its strongest indication yet of a possible ban on the rate parity clauses imposed by online travel agencies on accommodation providers.

This is been happening for a while now. As a small business it is very hard to operate a business and get bullied by all these third-party sites.

I am tired of the calls and emails on a daily/weekly basis in regards to rate parity. We are always getting emails to say that our rate parity is affecting our ranking, they then ask us to offer rates that match other sites or increase the level of commission so we can get a better ranking on their site. This is totally unacceptable. They already take 17 to 20 percent on our nightly rates.

Eventually this will put all small hotels/motels out of business and then customers will only be able to book premium rates at the more exclusive hotels.

Sarah

One of the Sunshine Coast’s most experienced firms in on-site

Management Rights Transactions

Damian Quinn (07) 5443 5266 Level 1, 13 Carnaby Street, Maroochydore

www.simpsonquinn.com.au

They may legislate the removal of the rate parity clause, however if you stop providing them with rate parity they will simply move you all the way to the bottom of the last page and effectively eliminate any possibility of receiving a booking.

Shaun

06

Forget your accommodation – It’s all about emotions..

resortnews | october 2018

Weekend win of the Accomnews manager’s survey We were very fortunate to win a three-night stay at Il Mondo Boutique Hotel situated in the Kangaroo Point Precinct recently and I wanted to take this opportunity to thank everyone involved. Chris the manager greeted us warmly on arrival and after spending some time talking we found out how experienced he is in the industry and that we had a lot in common in terms of places of interest.

We had a very nicely appointed one-bedroom apartment with views over the Brisbane River and had a very enjoyable time exploring the many cafes, restaurants and bars just metres away and the stunning walks up to Southbank along the riverside and into the city.

We would strongly recommend Il Mondo Boutique Hotel should anyone be visiting Brisbane.

Thank you very much Chris and the team for your hospitality and generosity. ■ Zane and Sarah Bary Resident Managers Boulevard North

News In Brief

| industry

EXCLUSIVE: Industry disputes bombshell report on Airbnb’s “minimal impact” The validity of new Airbnbcommissioned research questioned by leading industry players.

Airbnb has previously been accused of manipulating data on its New York, London and Paris listings to serve its purposes

Carol Giuseppi, CEO of Tourism Accommodation Australia (TAA), has queried the transparency and accuracy of data used in the SGS Economics and Planning research, saying: “Given there is no real data transparency because there is no registration we would question the data used”.

Taken to the cleaners: the company fined $144k for underpaying hotel workers The Federal Circuit Court has ordered David Leslie Hinchcliffe to pay $25,000 and his company Davdot Pty Ltd to pay $119,000 for underpaying three casual employees, two of whom were migrant workers, following legal action by the Fair Work Ombudsman.

Leo Patterson Ross of the Tenants’ Union of NSW has also questioned the report’s conclusions, saying “we don’t think they have good enough data to say what impact (sites like Airbnb) have.”

And Richard Munro of the Accommodation Association of Australia (AAoA) has described it as an “aggregation exercise” unrepresentative of the picture in tourism hotspots where up to one-in-five houses are listed on the platform.

The report found Airbnb listings in the two cities make up a tiny proportion of the housing market, while long-term rentals across both cities are more lucrative for property owners than short-term lets in all but a “small number of cases”.

Co-author Terry Rawnsley, principal at SGS, said: “Across Sydney and Melbourne, Airbnb listings represent a very small proportion of the total dwelling market.

“In 2017, there were approximately 25,000 listings in Sydney and 14,500 in Melbourne which hosted guests. Of these, 15,200 were entire homes or apartments in Sydney and 8,500 in Melbourne.

“This represents 0.9 per cent of all dwellings in Sydney and 0.5 per cent of all dwellings in Melbourne.”

The findings contradict the widespread industry narrative that the exponential growth of Airbnb in Sydney and Melbourne is causing a shortage of affordable housing as landlords switch to listing their

properties as holiday rentals.

Describing the report as “interesting and thorough”, Airbnb’s public affairs manager Julian Crowley said it showed that despite sustained growth, the Airbnb community represents a ‘tiny fraction’ of the housing market.

“Holding roughly a percent of the housing market to blame for affordability issues – like the TAA and AAoA have done repeatedly – just isn’t credible or correct,” he said.

But Giuseppi argues any analysis on the impact on housing availability shouldn’t look at Sydney and Melbourne as a total but examine specific areas where Airbnb stock is high because of visitor appeal.

The report also asserts that Airbnb also does not appear to significantly impact the hotel industry, with co-author Laura Schmahmann arguing high occupancy rates for Sydney and Melbourne hotels indicate the company is helping address an accommodation shortage.

“Airbnb nightly prices are, on average, cheaper than hotel prices. It is likely that Airbnb has a greater role in addressing a gap in the tourist accommodation market, more so than any impact of the availability of rental accommodation in Sydney and Melbourne,” she said.

The three employees performed cleaning duties at various hotels at which Davdot Facilities Services held cleaning contracts.

Davdot admitted to underpaying them a total of $10,428 between October 2015 and August 2016.

The underpayments occurred despite the Fair Work Ombudsman previously conducting investigations involving Mr Hinchliffe and his company from 2011.

The Court found Davdot and Mr Hinchcliffe underpaid the employees, failed to make any payments for various periods of employment, did not make and keep employee records, did not provide payslips to the workers, and failed to comply with a notice to produce records or documents.

“Areas like Sydney city, Waverley, Melbourne city. In those areas it does impact housing availability,” she said, referencing a recent University of Sydney study on the issue.

“Our modelling showed that at 180 days, there are a number of areas in Sydney where it is more profitable to put (a property) on the short-term market than long-term rental.

Common sense says that is taking stock off the market.” resortnews | october 2018

07

industry | News In Brief

Most of the underpayments related to a South Korean worker underpaid $8,294 for work performed at two hotels in Melbourne. The worker was in Australia on a bridging visa until becoming a permanent resident on 1 February 2016.

Fair Work Ombudsman Sandra Parker said the substantial penalties served as a warning for employers who fail to act on advice about workplace laws.

“All employers have a clear obligation under Australia’s workplace laws to pay correct wages and entitlements and rectify areas of concern the Fair Work Ombudsman raises with them,” she said.

“If companies do not improve compliance with workplace laws, we are clearly prepared to take court action that can lead to heavy financial penalties.

“The underpayment of overseas workers is particularly serious as they may be more vulnerable and unaware of their workplace rights, face language barriers or are reluctant to complain.

“We encourage any workers with concerns about their wages or entitlements to contact the Fair Work Ombudsman.”

Judge Grant Riethmuller noted the respondents had “a history of non-compliance”, having been involved in two small claims proceedings in the Federal Circuit Court where declarations and orders were made against them.

Hinchcliffe and his company to pay interest on the workers’ back-payments, sign-up to the My Account portal, complete online courses for employers, commission an external audit of its pay practices and rectify any underpayments discovered.

NSW Fair Trading simplifies mediation NSW Fair Trading is developing a new online tool to help everyone who lives in, owns or works in strata to quickly and easily apply for their free strata mediation service.

There will no longer be a need for paper forms. You will be able to apply for strata and community scheme mediation online directly to NSW Fair Trading through a secure portal and experienced mediators will be available to provide neutral and independent support to help parties resolve their dispute.

August figures just released, a record 4,390 buyers visit Accom Properties Multimedia Publishing (Resort Publishing) continues to support the market with yet another record traffic month for the Accom Properties portal. In its 18 months in the market, Accom Properties, the trusted industry commercial accommodation listings portal, has again achieved record website traffic and yet another milestone.

August 2018 delivered more than 4,390 qualified accommodation buyers viewing over 36,951 listings with an average session duration of five minutes and 10 seconds (Google Analytics).

Records show that each user is viewing and engaging with more than six listings per visit, again proving the value of targeting these hard-to-reach industry audiences.

In his judgement, Riethmuller accepted the evidence of the Fair Work Ombudsman that the respondents “were clearly on notice as to their obligations and have therefore deliberately ignored that advice”.

Accom Properties continues to provide a trusted alternative to current market players in the industry demonstrating sustained growth in a slightly contracting market segment.

Our organic search results are now continuously on page one of results and represent the highest traffic and engagement channel versus paid advertising, with more growth imminent.

Our commitment continues through the solid foundation of paid media (search engine marketing) and a growth strategy that focuses on high demand spots for buyers such as North Queensland and Tasmania. We have also diversified our advertising products to include market leading display targeting to clusters of qualified buyers by region, price point and origin, effectively providing partners with an additional channel to promote their exclusive listings.

Accom Properties will continue to focus on providing location-based content and guides for buyers to refine the buying process for all prospects. With fully transparent reporting channels to commercial partners, it’s no wonder Accom Properties is the most trusted destination for buying or selling management rights, motels, hotels and caravan parks. ■

He said the underpayments were “very significant” to two of the employees, given their income levels. The underpayments were rectified by Davdot after the legal proceedings began.

In addition to the penalties, Judge Riethmuller made orders for Mr

08

Lead events (phone reveals, property PDF downloads and email events) have also increased dramatically to 2,892, proving Accom Properties is delivering ‘in-demand’ buyers through a lead conversion rate of 7.83 percent (lead events as a percentage of listing views – well above industry average).

resortnews | october 2018

industry | ARAMA Report

I know it’s yours but…

Trevor Rawnsley CEO ARAMA

ARAMA is approached a few times every month by members with the same problem: An owner has sold or wants to move into their unit but there are existing guest bookings in place that may not be able to be moved and there is a chance they may lose the listing.

While an age-old issue, the current market condition is indicating a levelling out so it is likely that we may see even more of this as investors consolidate or exit the market while they can.

As the resident manager, in addition to your own investment the potential loss of income via any reduction in the letting pool will have a direct impact on your income and the value of your business, and it is imperative that you are proactive about taking preventative measures to protect and defend your position.

Reduce your risk by ensuring that you are armed with current documentation (PO Form 6), the ARAMA Addendum and are involved in the sales process, either through the innovative ARAMA/ReMax program or directly as a fully licensed agent so that you can better manage the discussion and activity within the property. If, however, you end up stuck between the lot owner and confirmed bookings for any reason there are a number of basic principles that one needs to be aware of: •

•

It is imperative that you are proactive about taking preventative measures to protect and defend your position

•

The resident manager is the owner’s agent assuming you have the authority to act as an agent (In Queensland this is the PO Form 6) Guest bookings are contracts that the resident manager brings about between owners and guests.

•

•

•

Australian Resident Accommodation Managers Association is the peak industry body representing the interests of people who are involved in management rights.

For membership enquiries: www.arama.com.au

national@arama.com.au (07) 3257 3927 10

In Queensland, the resident manager is not liable to a guest for a booking cancelled by the owner unless the resident manager did not have a PO Form 6 letting appointment in place (in which case the resident manager is personally liable to the guest as they didn't have authority to make the ‘booking’).

If an owner wants to cancel a booking it is their call. They may be liable for damages to a disappointed guest.

From a public relations point of view, the resident manager will of course try and find alternative accommodation for the guest if that is possible.

If an owner breaches their Form 6, then they may be liable to the resident manager for lost commission for the bookings. This applies to cancelled bookings and cancelled appointments.

If an owner wants to cancel a Form 6 and move into their property, then that is their prerogative. Notice periods apply, but a resident manager cannot stop them from doing this. It is the owner’s unit, but the owner may be liable for damages as mentioned above.

•

In Queensland, the PO Form 6 can be cancelled by either party giving 30 days’ notice in writing.

•

While the ARAMA Addendum does make provision to enable a resident manager to take bookings 12 months in advance, this clause is only with the current owner and

resortnews | october 2018

not a future owner and can be rendered if the existing owner chooses to cancel the PO Form 6 or sell the unit.

These points are the basic rules that govern any situation like this, and unfortunately the Residential Tenancies Act does not apply to holiday bookings.

Obviously, the issue that cannot be ignored is the resident manager’s relationship and goodwill with the owner, and potentially, other lot owners in the building.

To maintain an equitable position, resident managers will often need to accept early termination of letting appointments even though they may have rights against the unit owner because the actual damage they suffer in terms of lost commission will be minimal when compared to potential disagreements and discord.

Losing a unit from your letting pool is to be avoided and the best way to do this is to do everything in your power to prevent this from occurring.

Prevention is better than cure.

The fact of the matter is that there are already legal protections in place for both the resident manager and their client the unit owner albeit inadequate on occasions. ARAMA is emphatic in our advice to resident managers to ensure that they are proactive about keeping up to date with legislative reforms, contracts, potential movement within the property and regular communication with unit owners. Stay connected to ARAMA and stay up to date with the necessary knowledge and insight to help you to protect and defend your letting pool. ■

NSW Strata Report

Is 'Company Title' making a comeback?

Col Myers Small Myers Hughes

Strata laws were first introduced into New South Wales in 1961. This legislation, the Conveyancing (Strata Titles) Act 1961, was unique and was later followed by similar legislation in Queensland in 1965 (Building Units Act 1965) and by 1975, all of the other States and Territories in Australia had adopted similar legislation. Other countries such as Canada, New Zealand and South Africa have since adopted similar models.

The single biggest problem with Company Title units however has always been bank financing

The strata legislation allowed each unit to have its own title deed so that it could be mortgaged and sold without any consent obtained from third parties.

The banking industry loved the concept and strata buildings now provide a significant percentage of all housing in Australia.

The single biggest problem with Company Title units however has always been bank financing.

Historically, most banks have been reluctant to lend money against Company Title units.

How did we get on before 1961?

Does a Company Title still exist today?

Prior to the introduction of the strata title legislation, blocks of units were mostly divided and sold by a concept called “Company Title”. Under this arrangement, a company owned the land and consequently the building that was constructed on the land. To “purchase” a unit in the building, you acquired a share in the company and that share gave you a right to exclusive possession of the designated unit.

It does!

In those days, every company had a Memorandum and Articles of Association (now called a “Constitution”) that set out the rules and regulations relating to that company. Unit “owners” (shareholders) were bound by these rules (many similar to our modern-day by-laws).

The Memorandum and Articles of Association also spelt out how disputes were to be resolved and often contained quite specific rules in relation to who could occupy the unit, whether pets were allowed, designated parking areas, etc. The board of directors of the company also had the right to approve or not approve a share transfer (change of ownership) in certain circumstances.

| industry

State strata legislation dictating how decisions are to be made or giving Courts and Tribunals the right to overturn the setup they all agreed to before they purchased.

wanted to sell to owner occupiers

I have recently come across one such building being constructed in Sydney. The developer only

sold out relatively quickly.

and absolutely didn’t want any short-term letting in the building.

As I understand it, the concept was well received and the development As they say, horses for courses! ■

 Structuring  Income Verification  Accounting/Taxation  Superannuation  Audit

There are still many Company Title buildings in Sydney and I have even run across a number of Company Title buildings on the Gold Coast. These units are generally cheaper than freehold strata title units but generally do not achieve the same levels of capital growth that strata titled units achieve.

How Company Title may make a limited comeback Like all things legal, there are pros and cons between ownership under Company Title and ownership under freehold strata title. Unquestionably, strata title has been the preferred method of subdivision of unit complexes and townhouse developments since the 1960’s, and will continue to be so.

However, some developers are again starting to have a serious look at Company Title, particularly for boutique developments pitched at owner occupiers who want the certainty that there will be no short-term letting (such as Airbnb) operating out of units in the complex. They also don’t want to be bound by extensive

Are you looking for a pre-purchase financial verification report, profit and loss for sale or just an accountant who really understands your management rights business?

We provide a comprehensive range of compliance and consulting services for all entity types operating within the industry.

Jonathan Grant Accountants operates within a wide referral network of other professional industry specialists and we are dedicated to ensuring you receive the right advice from the right people.

PO Box 391 WEST BURLEIGH QLD 4219 Phone: (07) 5534 4333 | Fax: (07) 5534 2081 reception@jonathangrant.com.au | www.jonathangrant.com.au

resortnews | october 2018

11

industry | BCCM Report

Subjective or objective?

Chris Irons Commissioner for Body Corporate and Community Management

or higher courts. These references can be used to guide further reading on the relevant issues.

Do you ever feel like it’s impossible to predict how the law will apply to your community titles scheme, or how your by-laws will be interpreted if they are ever disputed?

•

More recent decisions are more likely to reflect the current state of the law, as subsequent decisions made by higher courts and tribunals may have changed the way the law has been interpreted over time.

•

Where a decision has been overturned on appeal, it is important to understand the reasons behind the appeal decision. It may be that new evidence changed the underlying facts, or a technical or jurisdictional issue came into play, rather than an error being found in the application of the law.

Working out how the law applies to your scheme and circumstances can be challenging.

In previous articles, I’ve briefly touched on the benefits of using past decisions to help understand how an adjudicator might interpret laws or by-laws in the event of a dispute. If you’ve been involved in a conciliation session, you may have had a conciliator explain how previous adjudication decisions may assist in predicting the likely outcome of your dispute if it were determined by adjudication.

With this in mind, I’d like to give some insight into how past decisions are used by adjudicators to shape future decisions, and how they can help you understand how a dispute may be decided. I’d like to acknowledge and thank my adjudication team for their efforts in putting this article together.

The first concept to understand is precedent. In general terms, precedent means that, where a case comes before a judge, magistrate or (in this case) an adjudicator with the same essential or material facts as a case decided by a higher court (in the same hierarchy), the legal issues must be decided in the same way. Essentially, decision-makers are bound by the findings of law reached by decision-makers at a higher level within their legal jurisdiction. This is called binding precedent.

For adjudicators, this means decisions made by the Queensland Civil and Administrative Tribunal (QCAT)—the appellate jurisdiction—Queensland’s District Court, Supreme Court and Court of Appeal, and the High Court of Australia must all be followed. If there are conflicting decisions made within a jurisdictional hierarchy, the decision made at the higher level will take precedence.

There is some uncertainty at the

12

If there are conflicting decisions made within a jurisdictional hierarchy, the decision made at the higher level will take precedence moment as to whether decisions in higher courts that are not in the same hierarchy should be considered binding, but they will, at least, be persuasive.

In terms of understanding the past decisions of adjudicators, the following factors should be kept in mind: •

An adjudicator is not bound to follow the decision of another adjudicator in the same way. As they are at the same level in the hierarchy, decisions of adjudicators may be persuasive to other adjudicators, but not binding. They will, however, usually be based on the same decisions made by higher courts and tribunals, and will generally provide a good guide to how adjudicators interpret the law.

Decisions made in other jurisdictions, for example in other states or overseas, may not be binding on an adjudicator but may be of persuasive precedent. The relevance of the legal issue decided and the level of the court or tribunal that made the decision may affect how persuasive the decision will be.

When considering the application of a decision, it can be important to distinguish between the substantive reason for the decision (known as the ratio decidendi) and the decision-maker’s commentary or opinion on the law which is not essential to the decision (known as obiter dictum). Generally, obiter (other than ‘seriously considered dicta’ from High Court judgements) will not be binding.

•

•

The outcome of a dispute is less important than the reasons behind the decision.

For instance, in some cases pets have been allowed to remain in a scheme and in other cases they have been required to be removed. In applying such decisions, it will be necessary to consider the circumstances of each specific case, such as whether the particular pet had any proven impact on others in the scheme.

Your dispute would need to have the same or similar underlying facts as a past decision for you to be comfortable that it would be decided the same way. For example, a dispute over the maintenance of a courtyard may have a very different outcome if the courtyard is part of a lot, rather than being an exclusive use area.

Adjudicators’ decisions will generally explain the case law on which the adjudicator relied when making their decision. This may include references to other decisions by adjudicators, QCAT

resortnews | october 2018

Past decisions of adjudicators are published by the Australian Legal Information Institute (Austlii).

They can be accessed online, by searching at http://www.austlii.edu. au/au/cases/qld/QBCCMCmr/ There are several advanced search tools on Austlii to help you locate the most relevant decisions for the issue you are looking at, including: •

exact phrase searches (e.g., “reasonable attempt to participate”)

•

boolean queries (e.g., “nuisance AND 167 NOT dog”)

•

searches of the document title only (e.g., “Surfers Paradise”).

Searches can also be sorted by date by clicking the relevant tab on your search results.

It is important to note that the Information Service of my Office is not able to offer an opinion on how an adjudicator is likely to interpret a matter or provide commentary about past adjudicators’ orders.

That said, the Information Service can give general information about body corporate legislation.

For further information please contact 1800 060 119 or visit our website www.qld.gov. au/bodycorporate. ■

SCA Report

The masters of our fate

| industry

Simon Barnard President, SCA (Qld)

No one wants to end up like Blockbuster; failing to adapt to environmental shifts. With the world rapidly changing, an economy where intuitive and creative thinking are the main drivers creating economic value is likely to be the next major business challenge. In strata, like in any other industry, regular reassessment of our leadership strategies is a vital step to safeguard us from failure.

Once a year SCA (Qld) gathers business principals and senior managers for meaningful conversations on strata issues, to strengthen our sector, and address the need for change.

This year we encouraged delegates to analyse their business strategies and delve into a range of organisational psychology topics including behavioural reasoning, the science of decision making, and the art of leadership. Facilitated by the renowned leadership expert, Sarab Singh, our days were spent examining our own behaviours and management styles, as he provided real-world knowledge

and implementable ideas tailored specifically to the strata community.

Foremost among the teachings; innovation and creativity were to be encouraged, allowing for new technologies to be used and efficiencies to be found. Using our own real-life examples we broke down our actions, repeatedly questioning our motivations and decision reasoning. It was an eyeopening look into behaviours that have become ingrained over our many years in the workforce, and it encouraged introspection, as well as the auditing of our actions.

With a few simple changes, we can confront leadership challenges in a more open manner and completely alter the results is what I took away.

As leaders, our resilience is often tested, but the resulting toughness enables us to handle increasingly complex issues and create a strategic advantage.

By understanding that we are the master of our fate, we will better comprehend the impact of our actions on our surrounding environment.

For many years we have been advocating for change as we have stood as leaders in strata and we gained trust and a great reputation. Emotional intelligence is a big part of negotiating with people – may that be the lawmakers or our clients. The entire strata community knows how emotive certain topics can be, as owners understandably wish to safeguard their investment and maximise their living standard.

If, as managers, we can recognise and control our own emotional states, we can communicate more effectively, thereby creating better working relationships.

These valuable insights have proven to be of immense help over the last few weeks, as the latest cladding regulation provides the whole strata community with an array of new challenges.

Lot owners have been faced with potential extra costs and procedural uncertainty, while body corporate managers have been tasked with guiding their clients through the process. The tight time-frames add some pressure, as the decisions require body corporate committee involvement and the lengthy associated

resortnews | october 2018

procedures. Coming into effect on 1 October, we are still very much involved in providing insights into the professional administration of schemes that the government cannot know about to get some changes made that will be of tremendous help to strata managers.

The Grenfell Tower fire demonstrated that shying away from change and not implementing new measures that are developed as we learn more comes at a significant cost. We do not want this risk in Queensland.

We would rather adopt an approach that will save lives even if it costs owners in the short term.

That’s where leadership starts – to understand the arguments and balance them out to find a way that satisfies the need for safety while having the smallest impact possible. I am pleased that I’ve had an opportunity to provide this leadership to the Taskforce who wrote the combustible cladding regulation and know that following this intense consultation we are more than ready to finally work on realising the procedural changes that have been recommended in the property law review. ■

13

industry | Special Report

Methamphetamine: the modern-day asbestos explosion Until recently, it was the discovery of meth labs in rental properties - with the associated risk of explosions, loss of value,harmful gases and waste resulting in tens of thousands of dollars for the clean-up that were considered a nightmare for landlords.

Now, the emergence of contaminated properties from recreational ice smoking has potential to be the modernday asbestos explosion.

Unfortunately, the issue and incidence is escalating across Australia and New Zealand and, understandably, there are mounting calls for the compulsory testing of rental properties between tenancies for methamphetamine contamination.

Illicit drugs, such as amphetamine-type stimulants and, more specifically methamphetamine, manufactured within clandestine laboratories in residential apartments and homes are known to be associated with a wide range of hazards derived from the chemicals used in manufacture; gases produced during manufacture, drugs and drug residues as well as wastes but what is relatively unknown are the insidious health risks affecting occupants of ‘cleaned’ properties that once housed meth users.

Steve Hermiston, from Australian Drug Decontamination Specialists says: “Meth production and use has sky rocketed in the last two years and it’s going to be a growing problem in the future.”

Meth labs are considered one of Australia’s biggest concerns with approximately 1000 labs discovered annually, but with only a small proportion of labs being found it is estimated there may be up to 10 times more currently setup in homes around Australia with a large portion being in rental properties.

If meth is smoked even once in a home, you can find traces throughout the property. And it stays there until it is decontaminated.

14

If meth is smoked even once in a home, you can find traces throughout the property.

And it stays there until it is decontaminated.

“Residual contaminants that arise from drug usage or manufacture can be in the form of solids, liquids or odourless vapours that can be directly inhaled, absorbed through the skin or transported throughout the premises and/ or vehicles, and deposited to form methamphetamine residues on all surfaces including shoes, car interiors, floorings, walls, ducted air conditioning and any furnishings or fixtures in the vicinity,” says Hermiston.

The transient rental market, shortage of public housing and possible need to accommodate family units impacted by an eviction or arrest exacerbate the spread of contamination, with ‘invisible’ residues being moved from one property to another. Fifty eight percent of the properties evaluated in the last twelve months reported wide-spread movement of contamination in the home and externally.

Andrew Leibie, Forensic Toxicologist of Safework Laboratories says: “Nationally there would be well over 100,000 people testing positive for using methamphetamine on

any given day – that’s a lot of properties and personal apparel that could be contaminated.”

For the general public who may be inadvertently exposed to contamination in properties purchased or rented, there is the potential for significant levels of exposure and intake of methamphetamine - particularly for young children - and while the chronic health effects of exposure are poorly understood, they may include: asthma, headaches, skin problems and dizziness as well as neurochemical changes in areas of the brain that are associated with learning, behaviour, motor activity and changes in avoidance responses including psychotic, physiological and violence, depression, irritability, hallucinations, mood swings, paranoia and sleep disorders.

So how do you know if those dangerous toxins are inside your property or the new place you're looking to move to?

Experts say you don't - and that's the problem.

The level of contamination depends on the level of use.

resortnews | october 2018

If the property is used only to smoke the drug then it is likely to be found in the soft furnishings like carpets and curtains and other household things while, if the property is used to cook meth then the walls, appliances and plumbing system may also be contaminated.

“The only way to know whether there is meth residue in the property is to get the place tested, and this can range from an initial $250 for a five-room swab and independent lab report from an international lab, to $2500 for a more in-depth analysis,” says Hermiston.

“In severe cases, all the heating, ventilation, and air conditioning (HVAC) systems will need to be decontaminated – particularly in high-rises when whole floors are affected. One may also have to rectify sinks, showers and bath tubs.”

There was a recent case in Queensland where a twobedroom property was contaminated with a clean-up cost of approximately $50,000 due to the smoke/particles attaching to all porous areas such as walls, carpet, window furnishings, bench tops, grouting, etc. The owner fortunately was covered under their landlord protection insurance for malicious damage - albeit, as meth in properties becomes more widely known you

Special Report

would assume that insurance companies will need to address this issue within their policy terms.

And the threat doesn't just exist in homes, that hotel room you booked for your family may be contaminated as well.

So what does this mean for property owners?At this stage there is no legislation around enforcing clean-ups of recreational smoking and based upon the information and data evaluated to date, the current understanding of potential risks to the public posed by these properties appears to be underestimated.

The Australian Crime Commission has developed guidelines that include human health riskbased criteria for indoor air, indoor surfaces and outdoor environments in residential, commercial and public open

to New Zealand where an increasing number of buyers are requesting checks for contamination, which had prompted the creation of national standards for meth-testing.

space areas that deem a property contaminated if the levels are above 0.5 micrograms. These are low however in comparison to a number of properties that have been tested with positive results upwards of 60 micrograms.

In Australia, there are a growing number of prudent property buyers and landlords going beyond traditional pre-purchase building, pest and asbestos inspections – they are also getting the homes drug-tested.

The property owner is ultimately responsible to ensure a premise is safe for habitation.

Australian Laws (EPA & Local Govt) Remember that if you knowingly allow the property to be used for a drug offence you are committing a crime carrying a maximum penalty of 15 years in jail irrespective of whether you are directly benefiting financially or not.

Leibie said drug-testing may need to be offered as part of pre-purchase inspections for property buyers and pointed

| industry

policy covers in this regard. While insurance laws differ from state to state, carriers routinely pay claims resulting from common perils like smoke damage, fire damage, and vandalism or “criminal mischief.”

If your policy covers these hazards explicitly, you are in good shape – just be sure. ■

By Trish Riley, Editor Resources:

At best, one can expect the premises to be declared uninhabitable until a full decontamination is done and the test results declare it to be free of hazardous chemicals, but at worst, the owner and body corporate may end up with an extensive law suit from the new inhabitant.

Dr Jackie Wright, PhD Researcher, Flinders University

Last but not least, pay attention to what the property insurance

Kate Burke, Senior Editorial Producer, Domain

get on top

Debbie Palmer, Managing Director, PPM Group Andrew Leibie, Forensic Toxicologist of Safework Laboratories Steve Hermiston, Marketing Director of Australian Drug Decontamination Specialists

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15

management | Legal Ease

Consent to transfer of management rights agreements – what’s reasonable?

Some time ago Resort News published an article by me on what I thought was reasonable for a Body Corporate to request from a buyer of management rights, in considering whether a Body Corporate committee should consent to the transfer of management rights agreements to the buyer or not.

This is an important issue, because under the Body Corporate and Community Management legislation, a Body Corporate committee must not unreasonably withhold approval to a transfer.

Under the legislation, one of the matters which a body corporate committee may have regard to is the financial standing of

Since the body corporate’s actions led to the buyer pulling out of the sale, it is likely that the seller would have a claim against the body corporate for damages the proposed transferee. My opinion, as expressed in my previous article, was that it is doubtful that it is reasonable or necessary for a body corporate committee to require detailed financial statements from a buyer who has approval from a bank for substantial financing to complete the purchase of management rights.

A bank has a better system of determining whether the financial standing of a buyer is suff icient

Peace of mind for your property decisions Management rights and unit valuations for all major financiers, presale advice and due dilligence for buyers

Gold Coast, Brisbane, Ipswich & NSW North Coast Tod.Gillespie@htw.com.au Sunshine Coast, Reg Qld & NT Chris.McKillop@htw.com.au Australia’s largest independent property advisory group

16

to take over management rights agreements, and in any case, it is not as if the body corporate will be dependent on payments being made by the caretaker to the body corporate.

And so it came to pass that an adjudicator appointed by the body corporate and community management commissioner, was asked to consider whether it was reasonable for a body corporate committee to require declarations in a particular form, in support of financial statements provided by the buyer. After exhaustive analysis, the adjudicator decided it was not reasonable. As part of that analysis, the adjudicator stated “It is usual in my view that suff icient evidence of financial soundness would be acceptable by confirmation from a financier that the borrower had passed stringent lending criteria”. Evidence of financial approval for a substantial level of borrowing should be suff icient evidence of this. The adjudicator also stated “I find that while the body corporate is entitled to understand the assignee’s financial standing, they are not entitled to test the veracity of their evidence of financial standing when the assignee’s bank had tested their financial capacity.”

The end result was that the body corporate’s legal and administrative costs relating to this unreasonable requirement for a specific form of declaration of the buyer’s financial position, could not be passed on to the seller, leaving the body corporate, its solicitors, and the body corporate manager to fight it out over whether the costs that could not be reclaimed from the seller should be paid by the body corporate.

resortnews | october 2018

Martin Punch Short Punch and Greatorix

Since the body corporate’s actions led to the buyer pulling out of the sale, it is likely that the seller would have a claim against the body corporate for damages suffered as a result of the loss of the sale. An adjudicator appointed by the commissioner has no power to hear a dispute over a claim for damages, but it is likely that a seller of management rights would be able to have such a claim determined by a court or jurisdiction, having the right to determine contract disputes between a caretaker/letting agent and a body corporate.

As an aside, the adjudicator also found that the body corporate acted unreasonably in making it a condition of consent that the buyer undertake a horticulture course.

Another argument I put forward in my previous article, was that it is not reasonable for a buyer to obtain and provide to the body corporate committee, criminal history checks, when such checks are already carried out by the Off ice of Fair Trading under the process of granting or extending the real estate agent’s licence the buyer must obtain to continue to operate the management rights business the buyer is purchasing.

My investigations with the Off ice of Fair Trading have convinced me that the information arising from police checks requested by bodies corporate, and those requested by the Off ice of Fair Trading, both before issuing a new licence, and extending an existing one, provide exactly the same information. It is a short step to the position that body corporate committees act unreasonably in requesting that police checks be provided by the buyer when the Off ice of Fair Trading already go through this process.

I believe that body corporate committees and their legal advisors are putting their body corporate at substantial risk of having to pay damages, because of their excessive demands in relation to considering consent to transfer of management rights agreements. ■

Thinking Accommodation |

Times are a changing

management

Mike Phipps Mike Phipps Finance

Bob was right

verification process and bring it in line with common practices for commercial transactions. When the banks start knocking 20 percent off the verified net profit when assessing debt service capacity (yes, some are already doing this) you know the clock is ticking.

The Stones said time is on our side. Prince said it was a sign of the times. The Foo Fighters said times like these but Bob said it best: Come gather 'round people Wherever you roam And admit that the waters Around you have grown And accept it that soon You'll be drenched to the bone.

If your time to you Is worth savin' Then you better start swimmin' Or you'll sink like a stone For the times they are a-changin'.

My suggestion is that we need to start working on a new verification model. It needs to take in to account the impact on existing operators balanced with the brave new world we are entering post banking royal commission.

We need to look at other going concern-based industries and review our own standards in the context of the broader commercial transaction framework.

– Bob Dylan: The times they are a changin’, 1964 Life moves pretty fast and, as Ferris Bueller wisely noted, if you don’t stop and look around, you could miss it. Too young to remember Ferris? May I suggest a run down to your local Blockbuster for an overnight hire, maybe the movie and popcorn package. You could take a cab and if you can’t find the nearest Blockbuster you could search for it on AltaVista.

Maybe you could even watch this classic while on holiday. Grab the Yellow Pages, go to Hotels and Resorts and start ringing around.

Only a matter of time before you find a great place to stay at a good price.

Or, you could always stream Ferris on Netflix, get Uber to bring you some takeaway, use Google to find an OTA and book online.

Things change and, as Mr Bueller noted in 1986, pretty fast. Of course, he had no idea just how fast! If you had invested in taxi licences, dotcom boom search engines, print media advertising and video rental stores back in the day you would now be officially broke. Which, in my usual round-about way, leads me to management rights.

Like the parent who tries to stay cool by quoting Eminem, the wedding guest who reminisces about the bride and not in a tasteful way, the RN columnist who still uses a 10-year old photo and the socially awkward uncle

with the comb over, we need to talk about one of our most out of touch and dated friends. Yes, we still love you P and L, but you’re just so 80s.

And now, the serious (boring) stuff.

The tried and true sales process for rights has been around for more than 25 years and I would have to say has served us well.

In recent times however, I can’t help noticing that in nearly every transaction one part of the process is proving problematic.

No prizes for guessing that verification of net profit is causing more headaches than ever before.

I think it’s time to take a much closer look at how our industry treats this part of the process and I think we need to start making changes to protect the credibility of our industry.

Too often we are seeing P and Ls being presented by vendors that reflect what they would like to be making, not what they are

actually making. There’s always a reason and rarely does that reason hold water. Labour costs are the big one. The vendor will say that some labour costs are discretionary, and the business can really be operated by fewer staff. I say if it costs a particular amount to operate a business successfully then that’s the number that should be used. If the vendor says otherwise then surely it is the responsibility of that party to present an independent assessment of reasonable labour allowances to support adjustments.

Of course, vendors will argue that the current industry standard of a one year adjusted P and L is how they bought the business, so they need to sell it that way. Tell that the previously mentioned taxi licence holders and Blockbuster franchisees.

Unlike these unfortunate business people, we have an opportunity to pre-emptively review our profit

resortnews | october 2018

Most importantly I think we need to move to restore banking industry faith in the verification process. Trust me, they may not admit it openly, but the banks started losing faith some time ago.

Overlay our unique standards for profit verification with increasing prudential pressure on lenders and there seems little doubt that bank credit policies will become more conservative if things don’t change. Support from lenders is a key driver of value in any industry and if we start to see gearing levels drop and credit conditions become more onerous then we will see values impacted. If you want proof look no further than the tightening home lending credit environment and the corresponding signs of a significant property value cool off.

It’s happening right now.

On the flip side I believe that implementing a more commercially realistic set of verification standards will renew confidence in the process and help in supporting continued strong values in the industry.

I will leave you with this question.

If I am a vendor with three years figures and I have an opportunity to present those numbers to a buyer to support strong buyer confidence and potentially a higher price, why would I resist doing so? ■

17

management | By All Accounts

Selling your business: the tax concessions

Jonathan Hanaghan Director, Jonathan Grant Accountants

Today I will be discussing what most of you will be wondering when contemplating selling your small business. Will I have to pay Capital Gains Tax? Well, this depends on how you paid for the business and how much you end up selling the business for. The potential Capital Gain (or loss if your unlucky) will also be reduced (or increased with a loss) by your associated purchase and sale costs eg. stamp duty, sales agents commission, legal fees and accounting fees. If after taking these calculations into account you have made a capital gain then capital gains tax may apply.

On selling a business, small and medium sized business owners may be able to access one or more of six tax breaks to reduce or eliminate the taxable capital gain that otherwise arises.

Outlined below is a summary of the concessions and some of the important conditions that must be met to access them.

is effectively available to all other business (and non-business) owners who have held the relevant assets for more than 12 months.

Pre or post CGT business?

Although a company selling its business cannot access this 50 percent discount, an individual shareholder selling shares in the company may be able to.

The first question to consider is whether the business commenced before 20 September 1985. If it did and essentially the same business has been carried on since inception, there is no capital gain on the sale of business goodwill.

The general 50 percent CGT discount Whilst not available to companies, a general 50 percent CGT discount

To qualify for the “SBC” the small business owner/s must have turnover of less than $2 million or have a net worth of less than $6 million. The asset sold must also be an active asset as opposed to a passive asset eg. goodwill.

The four CGT Small Business Concessions are:

Regardless of whether or not the above concessions apply, the remaining capital gain might be further decreased by the CGT Small Business Concessions.

•

15-year exemption – a full CGT exemption on the disposal of a business held for 15 years. If this concession is not applied one or all of the remaining three CGT concessions can be applied.

•

50 percent active asset discount – a further 50 percent discount on any capital gain. This means that if the general 50 percent discount also applies, the taxable capital gain can be reduced to 25 percent. ■

The CGT Small Business Concessions (SBC)

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Motel Market |

Leasing over the long term

management

Andrew Morgan Motel Broker, Qld Tourism & Hospitality Brokers

All markets fluctuate. None stay at the top forever and none at the bottom. Motel leases are no different. Having been very popular for such a long time it was inevitable that they would not stay that way forever. With freehold tenure seeing most of the interest in the market in more recent times for various reasons, leases took a back seat for a while. Again though, all markets fluctuate and interest in leases is starting to come back around.

Leasehold motel ownership has been a success story across four decades now. It grew very quickly throughout the early to mid-nineties and has remained an attractive option for motel ownership for very good reasons. The many benefits of owning a motel lease are why many moteliers continue to expand their motel investment portfolios.

Changes within the motel leasing industry in recent years has had some positive influences as a result.

This has largely been on the back of changing market perceptions and the industry adapting to “accommodate” these changes.

Over an extended period, the benefits of owning a leasehold motel business have held up.

Leasehold motel businesses satisfy the main buying motives of any business investor financial, lifestyle and security.

increases the capital outlay considerably and reduces risk, and therefore return.

•

•

•

Financing – The lower capital outlay means the loan required will be substantially lower. Lower loan repayments and fewer sleepless nights for those not wanting to borrow to buy freehold.

Banks are historically very comfortable lending for motel acquisitions as they are solid and secure businesses.

Taxation Benefits – This is dependent on numerous factors such as how the ownership structure is setup.

The benefits of living out of the business include but are not limited to, whatever costs one incurs living in their stand-alone home such as insurance, electricity, rates, food, beverages, telephone/internet, rent/ loan repayments, motor vehicle costs, etc.

Quality Presentation – If a budget to buy a motel is one million dollars, the opportunity exists to buy a much larger and higher quality motel property under lease, than a freehold

a couple, so if an owner decides they would like to step back from the business for a while, there are many good management couples available who can manage a motel.

motel at the same budget.

•

•

•

•

Long Lease Tenures – On most occasions’ leases commence as a 30-year term inclusive of option periods. This is a very long lease tenure offering the lessee long term security to operate the business.

Strong Cash Flow – Upon commencing operating a motel there is an income from day one depending on the level of occupancy.

An operator will achieve a certain level of cash flow immediately as most guests pay by credit card.

Limited Stock on Hand – Motels carry very low amounts of stock. Motels with restaurants will carry more stock than those without depending on the size of the food and beverage operation.

•

Onsite Residence – Offers a home to live on site for the family allowing more family time together whilst operating a business. Children can also get involved and start experiencing the industry at a young age.

•

Downtime During the Day – Motels are generally busy until late morning and again from late afternoon.

The time during the middle of the day offers some downtime for the operator.

•

Building Customer Relationships – For those who enjoy building customer relationships, motels can offer a lot of repeat clientele if the guest is looked after. There is a lot of personal satisfaction gained when a customer keeps coming back regularly because they are happy with the service being provided.

Ready Market – When the time comes to sell there is a competitive market to acquire motel leases.

Lifestyle/personal benefits •

Easily Operated Under Management – Motels are comfortably managed by

Security benefits •

Long Term Leases – Often leases commence at 30 years in total split up with option periods. The ability to extend leases as the term of the leases diminishes is often available.

•

Lease Terms – Leases are predominantly set up on mutually beneficial commercial terms to the Lessee and Lessor and therefore work very well.

The clearer these terms are, the better for both parties.

•

Asset Ownership – Includes the title to all the plant and equipment in the motel and the remaining tangible and intangible assets such as business names, contacts and goodwill. ■

Financial benefits •

•

High ROI – The return on investment (ROI) for motel leases is strong and in the main range upwards from 28 percent (most are within 30 – 35 percent) depending on certain factors such as location, length of the lease, level of rent, economic strength of the region, property presentation, strength of business, etc.

Low Capital Outlay – A motel lease does not require one to buy the land and buildings of the motel.

This is the larger value component of a motel and buying the property therefore

Leasehold motel businesses satisfy the main buying motives of any business investor - financial, lifestyle and security resortnews | october 2018

19

management | To Market

It’s not just about shooting a video

Dave Wright Managing Director, Principle Media Australia

Should I be considering promotional video content for my property?

The answer is yes.

Estimates show that over 75 percent of content on the web and social media will be video based by 2020.

Bespoke commercial video content is no longer an option but a must for any marketer that wants to succeed.

In this competitive, digitally-driven world people are constantly bombarded with tons of information, differentiating yourself and getting cut-through as a property has become more and more challenging.

Potential guests no longer make blind decisions when making a booking: they actively look for information and referrals to ensure they make a choice that’s right for them, and it’s our job as marketers to influence these touch points throughout the customer enquiry.

There are many benefits to creating promotional video including building brand equity, enhancing brand awareness, boosting SEO (organic website traffic) and that’s not even touching on the viral sharability associated with social media platforms. What one needs to remember is that ‘creative video content’ allows you to take the prospect on a journey and to tell a story far more efficiently than any other medium.

Small to medium property marketers are slowly grasping this invaluable marketing solution but continually overlook the distribution part of the strategy, and in turn don’t see ROI. All too often, I see money splashed out on video production and then it only appears on their website, social communities and perhaps a YouTube page - the results (or lack of them) tend to show.

A solid video content distribution strategy covers all elements of ‘paid’, ‘owned’ and ‘earned’ media channels: it’s not a case of build it and they will come.

Video content is the best way to fill the top of the funnel and drive prospects through to booking and advocacy – that’s a given, but you need to utilise and leverage a combination of

20

There are many benefits to creating promotional video including building brand equity, enhancing brand awareness other channels including search, display, remarketing and social.

And when all these elements combine – bookings do come.

Amazon recently reported that adding video to product descriptions increased purchase prospects by 35 percent. This leads us to the milliondollar question: how do you put your video in front of the right audience?

users to distribute your video content - possibly through a blog post that includes the video that drives traffic to it through social communities, newsletters and website links. This will drive organic traffic to the video and index on key search engines and search engines love multimedia content.

Now we touched on ‘paid’, ‘owned’ and ‘earned’ strategies before…

Then there are ‘paid’ channels, and before you start huffing and puffing about cost efficiencies – as video content is so engaging (or should be) - paid video distribution is extremely cheap when done right.

Let’s start off with ‘owned’ as this is your own network and doesn’t require expenditure. These channels include social media platforms such as Facebook, Instagram, Twitter or even Snapchat for the younger market. You should also utilise your website and its

Channels include video pre-roll advertising through ad-words on YouTube and google partner sites including ‘catch-up TV’. With established audiences, smart remarketing and similar audience targeting this channel delivers a fertile ground to cost effectively

Boosting SEO (organic website traffic) and that’s not even touching on the viral sharability associated with social media platforms resortnews | october 2018

distribute commercial video, and you only pay for a full view.

YouTube is the second largest search engine and the third largest social network in the world, and well over half of advertising revenues are digital formats.

Online advertising revenue has reached $2.1 billion for the first quarter of 2018 in Australia and video advertising is driving this growth. Video is up 38 percent in Q1 2018 reaching $320 million, and now representing 42 percent of total display advertising.

Last but not least, ‘earned’ is the organic amplification through shares on social media, email, text and other forums. Before embarking on this strategy however, consider your target audience and which channels they are likely to be using. For some verticals, certain channels are just not efficient – think millennials.

Remember that it’s not just about creating a great marketing video, it’s about getting it out there. When planning production always include a distribution budget to allow promotion through all relevant channels.

This, combined with promotion through your owned channels will drive earned exposure and compliment all your digital marketing endeavours to ensure you get a solid return on investment.

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management | Training

Why cross-cultural intelligence is becoming a mandatory skill In the last decade Australia’s property market has undergone some major changes.

To name a few: •

Growing population in the major cities has resulted in a need for increased housing density.

•

Investors, and thereby renters, outweigh owner-occupiers.

•

Increasingly, there is a blurred line between investors and owner-occupiers.

•

The share-economy has increased short-term rentals, managed by owners.

•

In addition to traditional downsizers, apartment living now attracts overseas students, small business owners and young professionals.

•

While half of the residents are aged 20-39, there is an increased diversity in demographics, singles, couples and families.

As Australians continue to adopt high density living and switch from backyards to balconies, greater diversity has emerged in who is making up these communities.

One explanation for the demographic diversity is a change in the migration pattern over the last 20 years. Over 28 percent of Australians were born overseas, with a vast majority of migrants being granted short-term visas and PR (permanent residency) under the skilled migrant category.

And while some may be surprised that more than nine percent of the Australian population now resides in a community title property, even more surprising is that only half of all apartment residents speak English as their first language at home.

Mandarin only makes up seven percent of languages spoken with Cantonese only accounting for a further two percent. The remaining 41 percent is made up of a mixture of Arabic, Vietnamese, Italian, Greek, Hindi, Punjabi and Tagalog (Filipino). There are many more additional European, African, South American and Asian languages that can be added to the equation.

The increased linguistic and cultural diversity poses a number of new challenges to property managers and apartment owners, with the most obvious being the language barrier. The single biggest frustration of managers, owners and tenants in the effective management of a property relates to clear and concise communication between community members and in most cases these can be overcome with the help of interpreters, translation software from Google, Apple and Amazon and a healthy portion of good will and patience.

Christiane Momberg Director, Culture Connection

cross-cultural behavioural issues.

Even with a shared language and cultural background, there are many situations in a property manager’s day-to-day operations that are fraught with misunderstandings.

In a cross-cultural situation, when both parties unconsciously act according to patterns of their cultural conditioning, they increase the risk of creating discomfort, frustration or even conflict.

In the context of the property management, cultural conditioning can influence a whole range of aspects. To list just a few: •

Contracts – water tight or allowing for flexibility?

•

Perception of the property managers role: figures of authority or servants?

•

Conflict management – preference for direct confrontation or harmony at any cost?

•

Concept of private vs. public/shared spaces.

•

Tolerance for proximity, and or personal space.

•

Concerns for safety.

Proactive managers are already embracing multicultural diversity in their buildings by hosting community events that promote inclusion. Understanding that close proximity living is an undeniable reality and something that should be embraced rather than restrained.

As the property market attracts more buyers from diverse cultures, professional training to increase cultural intelligence becomes almost mandatory. Developing increased awareness of personal bias and developing respect for the habits, customs and norms of other cultures is the first step to building positive relationships and laying the foundation for mutual trust.

Far more subtle, and therefore much more complex however, are

By understanding the visible and invisible factors of culture

and becoming more proficient cross-cultural communicators, managers will be able to avoid, and/or de-escalate potential conflict situations as well as create a more productive and positive work and living environment.

As the population grows and high-density living becomes more common in Australia, potential residents – and migrants in particular - will take the experiences that their family and friends have had as tenants or owneroccupiers into consideration, and with ubiquitous access to electronic communication channels and the popularity of social media, this experience can be communicated widely.

Investment in professional crosscultural training for the property management team therefore will not only provide in-house benefits and helpful strategies on how to interpret specific behaviours, but also has the potential to attract an as yet unknown clientele, in terms of potential buyers.

In properties with a high proportion of multicultural residents, it may be a good idea for committee members to organise a survey to determine the different languages in operation, awareness is, after all the first step to creating change.

References: Easthope, H, Buckle, C and Mann, V 2018 Australian National Strata Data Report 2018, City Futures Research Centre, UNSW www.abs.gov.au/ausstats/abs

As the property market attracts more buyers from diverse cultures, professional training to increase cultural intelligence becomes almost mandatory

22

resortnews | october 2018

Intonet |

Watch your words

management

Arvo Elias Cybercons

"I have lived long enough, my life has fall'n into the sere, the yellow leaf…."

So said Macbeth, as articulated

by W. Shakespeare.

I am as melancholy as the king of Scotland was but for very different reasons. That gentleman mused with huge regret over the passing of his life while I regret the passing of our language. I am assured that languages are a living thing and over time will become altered. That is acceptable, but we currently appear to be hell bent on changing things just because we can and not for any particularly notable reason.

When I started in the real world those lovely and talented young ladies who wrote my letters, filed my documents, vetted the phone calls to my office and booked my plane tickets and so on were called secretaries. Defined in dictionaries as an assistant who handles correspondence and clerical work for a boss or an organisation, a person to whom a secret could be entrusted. So why did we have to change that to PA? Or is it just a case of creating acronyms as if the world was not already awash with these to confuse and confound?

Another term now invading our business and to my mind, not only superfluous, but designed to lead to an ill-defined description is guest specialist. Running resorts, as I have, we used to call them receptionists. Guests were advised to contact the receptionist at the front desk. Similarly, in the offices where I had a secretary we also employed a receptionist with identical duties clearly defined with one word rather than GS with unclear job descriptions!

So what on earth has all this got to do with the web you ask?

Actually a great deal - particularly if you use words without some analysis of your web site.

Searching Google for secretary I find some 600 million references whereas PA produces 2.5 billion.

Repeating the exercise, receptionist returns 10 million, guest specialist 120 million

and the acronym GS lists a staggering 760 billion references.

These results make a simple point very clear. The higher the score the more likely it is that these are terms are incorporated in searches and are certainly used more often in material which is findable on the web. The question of search term incorporation can also point to possibly poorly understood terms but importantly, one has to wade through a larger volume of data to find the precise instance one actually wanted to find.

From a website point of view, my aim would be to have the lowest possible search score for every word used in the text on my web pages. In modernday jargon that is a "no-brainer".

Without becoming paranoid I certainly do check replaceable words so that whatever text I incorporate in a website I can, with use of appropriate synonyms, achieve the lowest result score for the words I have used and thereby also generate some more attractive and interesting narrative to entice my intended clientele.

The last word in the preceding paragraph does pose another problem: that of modern-day usage or even jargon. For those of you with children my point here is quite easily understood.

I had to learn that being "cool" did not mean I was cold nor did "sick" mean I needed a doctor, or that "filth" was something to be shunned like the plague.

Know your demographic, a much-misused word when one really means statistic or group.

Identify your clientele majority and speak their language.

Despite the fact that I rile against PC (and I do mean politically correct) language which in my view has got completely out of control and ignores the fact that the greater majority of us still have that wonder product called "common sense" it is an issue that you should also consider vis-à-vis your customer base, even if you feel like tearing your hair out. And no, I have not finished. Like all good advertising there are the free steak knives.

Targeted advertising is an insidious marketing ploy so be aware of it.

Online ads target individuals, not websites. Tracking technology allows companies to target ads to website users as they move around the internet. Here’s how the technology works.

When a person views a product on a retail website, the user’s browser submits information about what he is looking at to third-party advertising networks, such as doubleclick.net. The information is stored in a browser cookie, a small piece of code that lets ad networks and sites share information on what visitors view or buy. Users can clear these cookies periodically to clear out their record with ad networks.

If that person later clicks on another site in the same

resortnews | october 2018

advertising network, ads for the product the user viewed at the first retail site could show up. The ad is targeted to the user in hopes of drawing him back to purchase the product.

Now this is a personal view, but targeted ads are by far the dumbest thing the tech world has come up with. I am a male who buys, I don't shop; whereas my good lady spends hours in shops, shopping. So, from my perspective, all targeted ads record are things I have already bought. That makes the ads late, incorrect and a complete waste of ad dollars.

There are some clever ways of utilising this feature but that is best left for your clever webmaster.

Clever coding can prevent some punters from possibly blacklisting your site because every time they visit you they are presented the same old useless advertisements. The first line of defence is of course to delete all cookies from your browser.

There are tools which allow you to keep those from your bank or favourite pizza place to avoid hassles when you log on.

So dear reader, tidy up your website and improve your ranking at the same time.

You will now also realise why I feel just as depressed as MacBeth when I consider our ever-changing world and what is, to me, an ever increasingly difficult language to use without careful thought. ■

23

management | Keeping House

Wily Irish Mammy: housekeepers the industry’s unsung heroes

Sure, ‘Himself’ loves a Spaghetti Western movie but I often remind him that Mammy is the real sheriff in town.

to invest in the best quality and most suitable carpet cleaning equipment to prevent wear and tear and prolong the longevity of your flooring.

has improved) but are lighter, and more manoeuvrable.

the sources of irritation that cause allergies and asthma.

Backpack models... Workerfriendly for stairs, but they must be frequently emptied.

Like a sheriff, I clean up my ‘town’.

Mammy’s good, bad and ugly tips

Cordless and rechargeable...

Advantage of being able to go anywhere without the hazard of a trailing cord. However, they must be recharged often and have a limited user time.

Hot water extraction...

There are many hygiene and environmental advantages of including a hot water extraction system in your arsenal.

Like Clint Eastwood, a good housekeeper must be a bad-ass who gets rid of scum, mess, filth and foul stench with an arsenal of lethal cleaning weapons.

The biggest gun of all in Mammy’s arsenal is a vacuum. Now, if your property was a saloon bar, you wouldn’t be too fussy about a bit of “spit and sawdust” on the floor, but your resort must have a sparkling clean floor.

Mammy has read studies showing that carpets serve as magnets for all kinds of pollutants, contaminants, bacteria, and odours, including fleas, cockroach eggs, and dust mites.

Mammy’s secret weapon is my ‘big gun’ vacuum because vacuuming is key to a healthy, fresh and clean environment.

Listen to Mammy when I say

24

Raw power... Motor power might be the most obvious choice for a vacuum cleaner, but commercial vacuum experts claim that a strong design is often the most important feature.

Quality... Never overlook the most basic machine parts of the vacuum: the strength of wheels, clips, and other plastic mouldings.

No matter how much power it delivers or how good its air flow, a vacuum cleaner will not be any use if it’s out of action because its wheel falls off !

Uprights... May also be more effective in large open spaces such as function rooms and less suited to stairways or small guest rooms.

Canister... May not be quite as powerful (although their power

Consider noise... Listen before you buy because an annoyingly high pitch vacuum can claim a low decibel rating on the sticker or brochure.

Filtration... Large and easy to clean filters equals simple maintenance and consistent performance. TIP: most commercial vacuums can be used bagless but always use a bag or you will have to replace (costly) filters more regularly.

A HEPA (high efficiency particulate arresting) filter will effectively remove dust, irritants, mites and filter to produce clean air. These offer efficient filtration to help remove

resortnews | october 2018

Automated vacuum cleaners...

A handy cleaning solution with smart features such as mapping out the room with in-built cameras, remote controls, and virtual wall features, blocking off areas you don’t want to be cleaned.

Attachments... The most effective vacuum cleaners do not just get their super power from a motor, but also from the variety of attachments offered.

Never a truer word was spoken when Himself quoted Clint Eastwood in The Good the Bad and the Ugly: “There are two types of people my friend, those with loaded guns and those who dig.”

And you got it, Wily Irish Mammy doesn’t dig! ■

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management | Cladding Update

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26

Shortly after the Grenfell Tower fire tragedy in June 2017, a number of jurisdictions in Australia began the process of formulating regulatory responses to the fire safety risks posed by external wall cladding that includes making checks for combustible cladding on buildings compulsory.

and Assessment Amendment (Identification of Buildings with External Combustible Cladding) Regulation 2018.

The new legislation requires owners of certain buildings with combustible cladding to report the combustible cladding to the Secretary of the Department of Planning and Environment within set deadlines.

The Victorian Cladding Taskforce interim report, which outlines the extent of combustible cladding on buildings and makes significant recommendations to address the issue, considers all buildings identified by the Taskforce safe to occupy provided certain safety measures are met while rectification works are carried out, such as sprinklers or alarms.

The NSW Parliament will require owners of certain buildings with combustible cladding to provide information in a twostage process; a registration stage whereby owners will need to register the building details with the government within three months of the regulation commencing, and a statement stage where the owner will need to submit a statement about the cladding material used, the level of fire risk the cladding presents, and what actions (if any) might be necessary to address those risks.

More recently in NSW, the Department of Planning and Environment passed new legislation in relation to combustible cladding, being the Environmental Planning

The Queensland approach was to create the Non-Conforming Building Products Audit Taskforce, which largely led to the government addressing concerns with all of their own buildings.

Since then a number of bodies have been formed and regulations to tackle non-conforming building products introduced.

resortnews | october 2018

management | Cladding Update

Now it is the turn of the general public.

The new regulation: the Building and Other Legislation (Cladding) Amendment Regulation 2018 when it commences on 1 October 2018, states that if a building is any of class 2 to 9 (which covers basically everything residential and commercial other than houses); and had a building development approval issued after 1 January 1994 but before 1 October 2018 to build the building or alter the cladding; and is of Type A or Type B construction (essentially buildings of three storeys or higher) then the building will be affected by the new regulation.

As with NSW, if this applies to your building then you will need to register and complete an online checklist via the QBCC that will run you through whether

the building is likely to be one of those with non-conforming cladding. Every building will have until 29 March 2019 to complete this. If it is not done, there will be a maximum fine of 20 penalty units ($2,611).

If there is no issue, then all is well and the certification should be kept on file. If not, then stage two dictates the appointment of a building industry professional to determine whether the cladding on the building is non-conforming or not.

rectification works are necessary.

If the cladding on the building is non-conforming then you can skip the completion of the report, notify the QBCC and engage a qualified fire engineer to complete a fire risk assessment about the safety of the building.

That assessment will determine whether the scheme as it is will essentially remain safe or whether

Every building will need to record the name of their fire engineer to the QBCC by 27 August 2019 and have the final report to the QBCC by 3 May 2021. That is less than three years away. If you do not nominate your fire engineer or complete the risk assessment by the required dates the fines gear up to a maximum of 50 and 165 penalty units respectively ($6,527.50 and $21,540.75).

Following assessment, if the building has nonconforming cladding then: •

a notice to that effect must be displayed in a conspicuous part of the building for so long as the cladding remains in place; and

•

every lot owner and tenant must be given a copy of the notice – including new tenants and new owners.

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resortnews | october 2018

Cladding Update|

Unfortunately, this is where the compliance issues begin.

corporate. What that looks like is also yet to be determined.

Everyone will be out there trying to make bodies corporate aware of their obligations. But some will simply ignore them. It is ultimately the role of the committee to get this done, but no doubt fingers will be pointed at managers if it isn’t.

There are only two months from the last date for registration to the time to return the building industry professional report.

Onsite managers need to be vigilant to make sure they have covered their backsides by addressing this with every body corporate they manage. It may not be pretty when the government starts rounding up those buildings that have not participated in stage one by the required date.

It would also seem that there will need to be some form of evidence (termed ‘a proof of agency’) produced to the QBCC about the ability of anyone to complete the document on behalf of the body

If bodies corporate leave it to the last minute we suspect there won’t be enough experts to go around. Get started and get started early, because when you allow for the Australian holiday season (Melbourne Cup Day through to Australia Day) there is also another three months that disappears very quickly during that registration period.

Fire risk assessment notifications If a building has non-conforming cladding, notifying new owners is easy. They appear on the roll, and (hopefully) the software programs

then deal with the notification.

Tenants will be a lot harder. For those with onsite management or professional property managers, it may be okay as they should have systems that will deal with it. Communicating what needs to be done with property managers will be important.

Strata Managers will need to demonstrate (and have proof of) proactivity. If all the tenants aren’t known (which is normally the case), then a notice should be sent to all occupants of the building as well as all registered lot owners and property managers.

For people who self-manage or use a property manager who does not know what they are doing, the reality is tenants may not be told.

The immediate interpretation is that holiday / corporate tenants probably do not need to be told

management

(as they might not be ‘leasehold interest holders’), but time will tell.

The bigger issues The uncertainty.

These are all guesses, but try these as flow on effects: •

the fact that non-conforming cladding may be present is going to be a potential disincentive to prospective property buyers while it is not known, and a probable genuine turn off to them once it is certain.

•

what will banks do with their lending policies for potentially affected, or known to be affected, buildings?

•

strata insurers will now have to price the (soon to be) known risks for building insurance.

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resortnews | october 2018

29

management | Cladding Update

Rectification costs The Lacrosse Tower owners are still fighting about who wears what cost five years after their fire. The statutory position is that if rectification is required, then the body corporate must do it. It may well have a right to recover those costs from parties involved in the construction process, but that right is independent of the immediate obligation to sort the issue out. We will leave limitation periods aside for the moment too.

This means owners are going to have to pay special levies, or bodies corporate borrow money, to bring their building back to having conforming cladding. Bodies corporate will not be allowed to delay that while they try to recover the costs from a third party.

The statutory obligation to disclose defects is the biggest issue we see for property sellers.

Just because cladding is nonconforming might not mean it

30

As the property market attracts more buyers from diverse cultures, professional training to increase cultural intelligence becomes almost mandatory needs to be removed. The other fire safety mechanisms may cover any risk appropriately. Having said that, the non-conforming cladding could still very well be considered a defect in common property: Kreisson lawyers external communications states the following reference in relation to NSW Home Building Act… “See Schedule 4 Planning Certificates – Environmental Planning & Assessment Regulation 2000 Reg 21 •

the banned ACP is a major defect for the purposes of section 18E of the Home Building Act 1989 (NSW). This means that the banned ACP will be

the subject of the 6-year statutory warranty period for major defects instead of the 2-year statutory warranty period which may have otherwise applied.

Clause 69A of the Home Building Regulation 2014 which commenced in April 2018 also designates external cladding which is likely to threaten life safety in the case of a fire a major defect.”

Section 223 of the Body Corporate and Community Management Act 1997 imposes an obligation on sellers to disclose to buyers latent or patent defects in common property that the seller is aware of or ‘ought’ to be aware of.

resortnews | october 2018

Sellers ‘ought’ to be aware of issues identified in the body corporate minutes. Committee members who are actively involved in the decision-making process around this have nowhere to hide under any definition.

If buildings have non-conforming cladding, which is not disclosed in the sale contract by a seller, and there are subsequent rectification works required along with the special levies or borrowings, we can see a raft of litigation about the lack of that disclosure against sellers, sales agents and those who prepared contracts for sale (such as lawyers).

While all stakeholders appear keen to provide solutions, it is obvious that with this one there is a long way to go before the air clears.

We will keep you updated as this one evolves. ■

By Trish Riley, Editor

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tourism | Tourism Report

Wheels up on new airport hotel for booming Goldie A $50 million Rydges hotel is ready for take off at the Gold Coast Airport following final government approvals.

The project received the green light from deputy PM and Infrastructure minister Michael McCormack this week.

The seven-storey design features 192 rooms and suites overlooking Kirra Beach and the airport runway, plus a rooftop bar and viewing deck.

Airport owner Queensland Airports Limited chief executive Chris Mills said work is expected to commence before the end of this year.

“This is a great project for the airport, and for the Gold Coast and northern NSW,” he said.

“An airport hotel is something that has been missing at Gold Coast Airport and now that we have the approval, we can move ahead with another important part of our development plan designed to further activate the precinct and accommodate growth.”

Half a billion dollars will be invested into the precinct over the next few years under the Project LIFT expansion as authorities look to cater for mounting demand.

The airport is expected to attract some $818 million a year to the region and generate 20,000 full time jobs by 2020.

Gold Coast Airport catered to 6.6 million passengers in the last financial year and passenger numbers are expected to reach 16.6 million annually by 2037.

The region’s tourist economy is booming following the

Commonwealth Games, with a rash of hotel refurbishments and constructions due for completion over the next three years and a new casino in the pipeline.

Construction on the airport hotel is expected to start this year, with the property operational in 2019.

Tourism Australia and Singapore Airlines reaffirm close ties with new three-year agreement Tourism Australia and Singapore Airlines have re-affirmed their strong commercial ties by signing a new three-year strategic marketing deal worth A$11 million.

The agreement will see the two parties jointly fund a range of tourism campaigns and promotional activities in eight of Australia’s key inbound markets – Singapore, as well as China, Germany, India, Indonesia, Japan, Malaysia and the UK. Mr Mak Swee Wah, Singapore Airlines’ Executive Vice President Commercial, said that the renewal of the strategic cooperation with Tourism Australia underscores its commitment to Australia’s tourism and travel industry.

“Singapore Airlines has been bringing visitors to Australia for over 50 years and the extension of this partnership with Tourism Australia will continue to be key in driving inbound travel through our hub in Singapore to this beautiful country. With Singapore Airlines’ wide network reach in target markets and Tourism Australia’s marketing prowess, we are confident that we can

leverage each other’s strengths to attract more visitors from all over the world to Australia,” he said.

Tourism Australia’s Managing Director, John O’Sullivan, said Singapore Airlines is an important partner and Changi Airport is a vital aviation hub for international tourists travelling down under.

“Singapore Airlines has an extensive network across Asia and Europe which aligns closely with key markets targeted by Tourism Australia. Working closely with Singapore Airlines extends the reach of Tourism Australia’s campaigns to help convert traveller interest into actual tourism bookings,” he said.

Mr O’Sullivan said Singapore Airlines was one of its longest standing partners and he was delighted to see this close cooperation renewed and extended.

“The eight markets covered by this agreement represented four million international visitors and A$22 billion in collective spending last year, which is a measure of the importance of our ongoing partnership with Singapore Airlines. The strength of their network and the quality of their product are significant assets that we know resonate strongly with the type of high value traveller that we are targeting in both Asia and Europe,” he said.

Singapore Airlines currently operates more than 130 scheduled flights per week to Australia, serving Adelaide, Brisbane, Canberra, Melbourne, Perth and Sydney. This represents eight per cent of all Australia’s international arrivals. Together with subsidiary airlines SilkAir and Scoot, the SIA Group has close to 170 weekly flights to Australia.

Gold Coast wins again with global sports summit The Gold Coast has been selected as the destination for the SportAccord World Sport and Business Summit from 5th to 10th May 2019 thanks to a successful bid from Tourism and Events Queensland, Tourism

32

resortnews | october 2018

Australia, Gold Coast City Council and Destination Gold Coast.

The global sports convention will bring more than 1,500 representatives from up to 100 countries, representing 500 different international sports federations, rights holders, organising committees, cities, media, businesses and other sporting organisations. Minister for Trade, Tourism and Investment Simon Birmingham congratulated the Gold Coast for securing the rights to host the event.

“Whilst the Gold Coast is well known as a holiday destination, its world-class facilities also make it an attractive destination for major business events,” Minister Birmingham said.

“These types of events inject millions into the local economy and also support local businesses, create local jobs and will ultimately help enhance the Gold Coast’s reputation internationally as a must-visit destination.” Minister for Trade, Tourism and Investment Simon Birmingham congratulated the Gold Coast for securing the rights to host one of the event.

“Australia’s reputation as a premier events destination continues to grow with the securing of a major international event with the stature of SportAccord,” he said.

“It’s great to see all levels of government providing such strong support for our business events industry, a sector which delivers such strong economic return for our visitor economy.”

SportAccord president Patrick Baumann said the success of the Commonwealth Games played a major part in securing the event for the Gold Coast.

“The 17th edition of SportAccord will be a special one, as it will help mark the one-year anniversary of the delivery of a successful Commonwealth Games and will provide the chance for our delegates to embrace all the qualities and opportunities the Gold Coast and Queensland has to offer.” ■

Tourism International

| tourism

Going it alone

With longer working hours, constant digital contact and increasing obligations, it's no wonder more people are treating themselves to solo trips to (temporarily) get away from it all! According to a survey by Agoda, one of the world's fastest-growing online travel agents (OTA), travellers are choosing to go solo to take respite from the stresses of modern living.

Agoda's 'Solo Travel Trends 2018' survey, conducted by YouGov, found that relaxation and time to unwind is the number one motivator for solo leisure travel globally (61 percent), which compares to 48 percent when traveling with friends. Solo travellers surveyed also ranked getting away from routine (52 percent) and exploring new cultures (45 percent) as top motivators.

Age gap between Asian and Western solo travellers Interestingly, Asian solo travellers are more likely to be younger -- Millennials (41 percent) and Generation Z’ers (38 percent)

-- while in the West, solo travel is more prevalent among Baby Boomers (39 percent) and Generation X’ers (24 percent).

Millennial and Generation Z Asian solo traveller tend to take shorter one to three-night solo trips (46 percent).

Western solo travellers are more likely to indulge in solo travel for longer periods, more often taking trips for four to seven nights (34 percent). In addition, Western solo travellers are twice as likely to go on trips of 14 nights or more (20 percent versus 10 percent). The

Trend towards more screen time Unsurprisingly, solo leisure travellers spend more time in front of their laptops and phones than any other traveller type -- two

2018 top solo travel destinations Rank

Asian Travelers

Western Travelers

1

Bangkok, Thailand

London, United Kingdom

2

Kuala Lumpur, Malaysia

Tokyo, Japan

3

Tokyo, Japan

Sydney, Australia

4

Singapore

Melbourne, Australia

5

Hong Kong

New York (NY), United States

6

Ho Chi Minh City, Vietnam

Bangkok, Thailand

7

Manila, Philippines

Los Angeles (CA), United States

8

Bali, Indonesia

Las Vegas (NV), United States

9

Jakarta, Indonesia

Singapore

10

Chiang Mai, Thailand

Paris, France

resortnews | october 2018

hours a day (119 minutes), which compares to 15 percent more time than when travellers are with friends (100 minutes) and 26 percent more time than if they are with family (86 minutes).

Cosmopolitan destinations dominate the charts Whether for business, leisure or 'bleisure' (a combination of business and leisure travel), independent solo travellers are all heading to cosmopolitan cities around the world. According to Agoda's booking data, Bangkok (Thailand) is the top destination for Asian solo travellers this year, while London (United Kingdom) is number one for Western solo travellers. Both cities have a lot of attractions to keep any solo traveller busy, from shopping and nightlife to culture and dining.

Tokyo (Japan) is a popular choice for both Asian and Western travellers, hitting the top three for both groups. With various food, culture and accommodation options, from capsule hotels to homes and luxury 5-star retreats, the city has a lot on offer for every kind of solo traveller. ■

33

events & appointments | Events

Ladies in management are supporting the girls Which hotels and restaurants have been judged Australia’s best?

The stars of Australian hospitality and accommodation were honoured at the Australian Hotels Association National Awards for Excellence this week.

The multi-awarded Emirates One & Only Wolgan Valley in NSW was named Best Deluxe Accommodation.

Successful networking: Ladies in Management luncheon

The monthly “Ladies in Management’ luncheon is fast becoming an institution for women involved, directly or indirectly with the MLR or property sectors and the last event, held on the Gold Coast on the 19th September was no exception.

In addition to the networking and informal problem-solving, this month’s event provided an opportunity for everyone to meet Katherine De Haan, community and corporate manager of Support The Girls Australia (STGA) – a not-forprofit organisation involved in the collection and distribution of bras, underwear and personal hygiene products and toiletries to homeless and disadvantaged women from all cultures across Australia.

In addition to providing these items, STGA believe that what sets them apart is that they support the women face to face. They measure and fit them, and while doing that they listen in order to establish exactly what their needs are and then ensure that they are connected to the relevant services. There tends to be a grey area in the service industry from this perspective where we like to think we make a difference.

All attendees were amazed at Katherine’s insightful presentation and several have committed to working with STGA to assist with the promotion and provision of products to ensure a healthier and more dignified lifestyle for women and girls. ■

First established as a homestead in 1832 and visited by Charles Darwin in 1836, the property brands itself as “an ultra-luxury, conservation-based resort” set among the spectacular landscape of the Greater Blue Mountains World Heritage Area.

Overall Hotel of the Year (Accommodation Division) went to the stunning Circa Morris Nunn-designed MACq01 Hotel in Hobart.

Previously the site of a gallows and home to vats of boiling blubber, the luxury waterfront ‘storytelling hotel’ includes guest rooms inspired by historic local characters, whose life stories are integrated into individual room designs.

The Overall Hotel of the Year (Metropolitan) was won by The Crafers Hotel in South Australia while Overall Hotel of the Year (Regional) went to The Headlands Hotel Austinmer in New South Wales.

Apothecary in Adelaide was crowned the Best Restaurant (Metropolitan) and the Best Restaurant (Regional) gong went to Frogmore Creek in Cambridge, Tasmania.

Amelia Benjamin from Hilton Sydney was judged Hotel Industry Rising Star and the prestigious Chef of the Year was awarded to joint winners – Ashly Hicks from the Garden State Hotel in Melbourne and Nancy Kinchela from Emirates One & Only Wolgan Valley.

Australian Hotels Association

34

resortnews | october 2018

national president Scott Leach said the winners, chosen from more than 5000 members nationwide, were the reason Australian hotels continue to lead the world.

“Our staff and venues combine as the heart and soul of our industry,” he said.

“One brings our industry to life each and every day while the other forms its ‘bricks and mortar’ backbone – constantly evolving and changing to ensure we stay at the top of our game.

“The hotel industry is the most dynamic in the nation and a week rarely goes by without the launch of new ideas, renovations or complete re-developments at venues right across the country.

“In a time of great change – when every customer is a potential reviewer – our industry continues to set the standard internationally and I congratulate all nominees and winners.”

Learn more about cladding regulations Queensland strata property owners have an opportunity to learn more about the State Government’s new combustible cladding regulations at a series of free community education seminars hosted by Smart Strata and sponsored by foundation partners, Archers the Strata Professionals.

Archers the Strata Professionals partner Grant Mifsud said the seminars will be held state-wide throughout October in response to the introduction of the Building and Other Legislation (Cladding) Amendment Regulation 2018.

Mr Mifsud, who will be the moderator for the seminars, said the new cladding laws commence on October 1, 2018, and will have a significant impact on bodies corporates.

“If you own property in a low medium or high-rise strata scheme, these regulations will affect you,” Mr Mifsud said.

“Combustible cladding inspection

Events

| events & appointments

INDUSTRY EVENTS CALENDAR specialists as well as legal experts will present the facts and provide practical solutions to achieve compliance within the specific time frames required for each stage. An open forum designed to enable audience interaction will follow, led by our industry expert panelists with a further networking session after the panel discussion over refreshment.”

The seminars will commence in Mackay on October 10. The series will continue in Townsville on October 11, on the Sunshine Coast on October 13, the Gold Coast on October 20, at Port Douglas on October 25 and finally in Brisbane on October 31.

Maximum impact for leading accom conference Experts from Google, HotelsCombined and Revinate will join a stellar line-up of speakers for the Maximum Occupancy conference at Sydney’s Hilton Hotel on October 31 and November 1.

The event focuses on latest trends, future insights, and how to maximise revenue, boost direct bookings and adapt in the ever-changing accommodation industry.

According to organisers, this year’s line-up of speakers is the strongest the event has ever seen.

Michelle Allen, Google’s industry head of travel, will deliver a session on Adapting to Today’s Travel Consumer to guide delegates through how to keep up with the evolving travel industry.

HotelsCombined head of supplier partnerships, Elia San Martin, will add his insight to the highly-anticipated metasearch and distribution panel alongside Gianluigi Bazzini of Skyscanner, SiteMinder’s Dai Williams, Luxury Escapes senior manager Paul Gorman, and TripAdvisor head of OTA Scott Wegener.

And Revinate APAC managing director Tobias Berger joins the Integrated Revenue Management Panel along with Melissa Kalan, founding director of

Australian Revenue Management Association.

Gold Coast

A new Maximum Occupancy trade show, free for conference ticket holders, involves more than 30 suppliers showcasing services and products – from new tech through marketing tools and operations to revenue management.

provide an opportunity for delegates to join an extensive global network.

Other speakers and panelists confirmed to appear include: •

Lancemore Group – Julian Clark CEO & president of Accommodation Association of Australia

•

Triptease – Alex Kahn,

Expedia – Drew Bowering, senior director, market management – Oceania

•

Quest Apartment Hotels – Paul Constantinou, chair

•

Qantas Hotels – Tom Crouch, senior digital product manager

•

BIG4 Holiday Parks – Steven

TripAdvisor – AJ

•

Tuesday, 13-NOV-18, from 6:30pm - 9pm, Kurrawa Surf Life Saving Club

•

Best Western Hotels &

Thursday, 15-NOV-18, from 6:30pm - 9pm, Maroochydore Surf Club

Tuesday, 20-NOV-18, from 6pm - 8pm, Peppers Beach Club

Gold Coast

Australasia •

Ovolo Hotels – Dave Baswal, COO/CFO

For more, see maximumoccupancy.

Registrations Opening Soon

Property Law - How to adjust your fees and charges Registrations Opening Soon

Ladies in Management Luncheons

Wednesday 21-Nov-18 from 12pm-3pm, TBA Brisbane

Registrations Opening Soon

Property Law - How to adjust your fees and charges

Resorts – Graham Perry, managing director –

Registrations Opening Soon

Sunshine Coast Property Law - How to adjust your fees and charges

Wednesday, 21-NOV-18 from 6pm-8pm, Brothers RLFC

regional manager – Oceania

Registrations Opening Soon

Property Law - How to adjust your fees and charges

Wednesday, 14-NOV-18 from 6:30pm - 9pm, Arana Leagues Club

Cairns

Booking.com – Tracey Foxall,

Registrations Opening Soon

Property Law - How to adjust your fees and charges

Shantiratnam, senior consultant

Registrations Opening Soon

Property Law - How to adjust your fees and chargers

Thursday, 8-NOV-18, from 6pm - 8pm.

Coral Sea Resort

Brisbane

Registrations Open goo.gl/isVvM

Property Law - How to adjust your fees and chargers

Thursday, 1-Nov-18 from 5:30pm-8:30pm Campari House Airlie Beach

Registrations Opening Soon

Management Rights Induction Training Program

Tuesday, 30-Oct-18, from 9am-5pm.

Knowledge Bank, 37 Wembley Road, Logan Central Melbourne

Registrations Opening Soon

BCCM Webinar

Wednesday, 24-Oct-18, 2pm. Webinar

Port Douglas

Wright, CEO •

Queensland

Gold Coast

market manager, Asia Pacific •

Wednesday, 17-Oct-18, from 12pm-3pm, Edgewater Dining, Isle of Capri

Brisbane

And some 300 attendees will

Ladies in Management Luncheons

Registrations Opening Soon

Management Rights Induction

Tuesday, 27-Nov-18, from 9am-5pm 50 Southgate Avenue, Cannon Hill

Registrations Opening Soon

N.B: Dates and other details correct at time of publishing, however, maybe subject to change according to the needs of ARAMA and its Members. More details will be added throughout the year as information becomes available.

com.au. ■ resortnews | october 2018

35

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Port Douglas resort manager wins prestigious award Ramada Resort by Wyndham Port Douglas general manager, Duncan Mars, has been named the year’s Best Resort Manager at the Australian Timeshare and Holiday Ownership Council (ATHOC) Awards.

Presented at the annual ATHOC conference in Fiji, the ATHOC Awards are prestigious honours that recognise and reward exceptionally talented individuals, teams and companies in the vacation ownership industry across the South Pacific.

Duncan won the Resort Manager of the Year award after implementing a high standard of personalised service at the resort and markedly improving the property’s performance.

“Since starting at Ramada Port Douglas last year, Duncan’s leadership and positive attitude have helped take the resort’s service standards, product offering and overall customer experience to new heights,” said Matt Taplin, senior vice president of hotel & resort operations at Wyndham Destinations Asia Pacific.

“The processes and innovations Duncan has implemented across a short period have inspired staff to strive for excellence, which is evident in the resort’s performance and the feedback the team receives.”

Duncan presided over a 7.8 percent increase in occupancy at Ramada

Duncan Mars is the recipient of the Resort Manager of the Year award

Port Douglas during 2017 and an overhaul of housekeeping which brought about vast productivity improvements. Guests providing feedback on the resort also give Duncan and his team an average ranking of 9.09 out of 10.

Ramada Port Douglas is a mixeduse resort that is utilised by hotel guests and timeshare owners in the WorldMark South Pacific Club, which is developed by Wyndham Destinations Asia Pacific.

Set amongst a pocket of Melaleuca rainforest and surrounded by lush gardens and free flowing waterways filled with barramundi, the resort offers a mix of hotel rooms, one and two-bedroom apartments and a range of amenities, including an onsite day spa, gym and event facilities. ■

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resortnews | october 2018

News

| developments

A third concern for investors was property investment advice and its lack of formal training. Most respondents, at 95 percent, said property advice providers need to have formal training and 90 percent said there needs to be licenses or regulation involved in the property investment advice sector. Further, 87 percent said investors need more education relating to the risks and benefits of investing.

PROPERTY SURVEY INDICATES UPSWING IN INVESTOR PURCHASING A recent survey has found that even though Australia’s mostpopulated and unaffordable capital cities are reaching their downturn in the market, the majority of investors are unfazed and in fact believe this year is a better year to be investing than last year.

“The survey also again highlights the need for improved professional standards and regulation of the property investment advice industry,” Mr Koulizos said. “Indeed, property investors are crying out for more rigorous standards in the real estate investment advisory sector.”

PROPERTY MARKET WELCOMES FOCUS ON CITIES

The Property Investor Sentiment Survey, conducted by the Property Investment Professionals of Australia (PIPA), saw that from 820 property investors, 77 percent said now is a good time to invest in property, more than last year at 71 percent.

Nearly every investor also has a plan regarding their property investments at 98 percent. Over a quarter at 28 percent had detailed plans for long-term investment.

Additionally, 90 percent are not concerned with Sydney and Melbourne’s price declines, saying that they will not slow down their investment plans.

This may be related to the fact that the capital city with the best investment prospects was determined to be Brisbane with 44 percent of investors believing so, up from 43 percent last year. In comparison, 26 percent said Melbourne (down from last year’s 32 percent) and 8 percent said Sydney.

“The affordability of Brisbane compared to Sydney and Melbourne has really come into sharp focus in the past year,” said Peter Koulizos, PIPA chairman.

The Property Council has welcomed the Morrison Government’s continuing focus on the infrastructure needs of our cities through the appointment of a dedicated Minister to deal with cities, urban infrastructure and population matters.

“We look forward to working with Alan Tudge in his new role on the development and implementation of policies that will create great cities for current and future generations of Australians,” said Ken Morrison, Chief Executive of the Property Council.

“Not only are investors considering the Sunshine State capital as an investment location, a growing number are choosing to migrate to take advantage of the significant value gap as well as Queensland’s enviable lifestyle and strengthening economy.”

Houses maintained to be the favourite property type, maintaining a response rate of 67 percent from last year. Interest in units and apartments have declined from last year’s 9.3 percent to this year’s 6.5 percent.

Buying into a metropolitan market was also the clear favourite at 72 percent of investors. Regional markets saw a slight boost in popularity, rising by 5 percent to 20 percent this year, while coastal locations saw a decline in popularity down by 4 percent to 8 percent this year.

What has been a rising concern for investors however is access to finance, as 48 percent this year said investor lending policy changes have made it harder to get the necessary loan to add to their portfolio, which was up from last year’s 43 percent.

“As one of the most urbanised countries in the world, our economic future will largely be based on the success of our cities, both large and small.

“It is vital the Morrison Government keeps building the momentum on nation-building investments and cityshaping policies so that our cities keep growing well.

“Australia’s major cities are experiencing strong growth, from natural population increase and immigration, so ensuring they grow well and their residents can prosper and enjoy a great quality of life requires good planning and smart investment.

“Population growth is certainly playing a role, but we must also recognise that people are attracted to cities for the economic, education and lifestyle benefits and opportunities they offer.

Another concern is the possibility of changes to negative gearing and capital gains tax policies, as 45 percent said they would rethink investing in the future if these changes were to occur. Most investors at 71 percent also believe changing negative gearing and capital gains tax will not improve housing affordability, the main driver behind these potential changes, “The financial services crackdown on investors is having an impact on sentiment,” said Mr Koulizos.

“We must have a comprehensive policy approach for our cities, which covers infrastructure, metropolitan governance, planning and population trends.

“Turmoil in government ranks that saw a change in the prime ministership has translated into increased opinion poll support for the opposition, so investors face the very real prospect of seeing tax deductions cut, and this is playing into their purchasing decisions.”

Mr Morrison highlighted the significant contribution of the former Minister for Urban Infrastructure and Cities, Paul Fletcher, and thanked him for his open, positive and very constructive engagement with industry representatives.

“Minister Tudge will play a vital role in bringing these issues to the fore in the Morrison Government and we look forward to working closely with him in his new portfolio,” Mr Morrison said.

resortnews | october 2018

37

developments | News

A SUNSHINE COAST PROPERTY BOASTING ONE OF TOP RESORT GOLF COURSES IN AUSTRALIA HAS SOLD FOR $100 MILLION. Novotel Twin Waters Resort, with its Peter Thompsondesigned championship course, is a landmark conference, wedding and holiday venue.

PROPERTY INDUSTRY SUPPORTING STRONG ECONOMIC GROWTH The property industry is continuing to drive the Australian economy according to the latest economic growth data.

The Australian economy grew by 0.9 percent in seasonally adjusted terms in the June 2018 quarter National Accounts released today, with annual growth of 3.4 percent.

Located between the Maroochy River and Mudjimba Beach, the 36ha resort site comprises 361 low-rise accommodation rooms, extensive conference facilities and a wide range of leisure activities alongside restaurants and bars.

Investment in new dwellings increased 3.6 percent for the quarter, with strong results in Victoria and South Australia.

The Shakespeare Property Group this week completed purchase from the Abacus Property Group, marking their fifth major hotel acquisition and bringing their total room offering to more than 1,200.

Matt Young, vice president of operations for AccorHotels in Queensland and Northern Territory, said the group was proud to strengthen its business partnership with Shakespeare Group.

“We look forward to aligning with their new vision for the resort and continuing to position Novotel Twin Waters Resort as a premier facility for leisure and conference guests alike.”

The $100 million purchase of the resort comes at a time of unprecedented investment in tourism infrastructure on the Sunshine Coast, with a new runway and terminal facilities being developed for Sunshine Coast Airport, significant upgrades to the Bruce Highway confirmed, and two new five-star hotels approved over the past six months.

The construction industry grew by 1.9 percent for the quarter, driven by Construction grew by 5.5 percent over the year.

Construction within the residential property sector grew by 3.1 percent and non-residential property sector by 1.3 percent over the quarter.

The ABS noted that the recent pickup in new dwelling investment reflected strong approvals in early 2018 which are now flowing through to commencements.

“The property industry is helping to propel economic growth to its highest level since 2012, highlighting it’s importance as a driver of jobs and economic prosperity,” said Ken Morrison, Chief Executive of the Property Council.

“Our national economic well-being depends on a strong property industry, supported by smart investment in vital public infrastructure for our growing cities.”

Shakespeare’s general manager for hospitality assets, Sunny Yang, said the region offered outstanding potential to grow tourism in the short and long term.

“The benefits of growth are overwhelmingly positive, but must be locked in and supported by good planning and smart infrastructure investment to ensure all Australians reap the gains,” Mr Morrison said.

“With the airport being upgraded to an international airport in 2020 capable of attracting direct flights from Asia and the Pacific, we were very impressed with what the region can offer,” he said.

NEG RESOLUTION MUST BE A PRIORITY

“The Sunshine Coast is still relatively under developed, despite having excellent access to major source markets across Australia.

With the vast expenditure in infrastructure development, we think our purchase of the Novotel is very timely.

“We have worked closely with AccorHotels on other hotel projects in Queensland and we look forward to working with them on maximising the potential of Novotel Twin Waters Resort.”

CEO of Visit Sunshine Coast, Simon Latchford, said that the purchase of the four-star Novotel was a sign of investor confidence in the south east Queensland region.

“On behalf of Australia’s biggest industry which employs 1.4 million Australians and contributes 13 percent of GDP, we strongly reaffirm our support for the objectives of the NEG to provide certainty on energy and climate policy,” said Ken Morrison, Chief Executive of the Property Council.

“The NEG represents the last chance approach for achieving emission reductions while ensuring affordable and reliable energy supply for Australian households and businesses.

“There is over a billion dollars’ worth of infrastructure projects approved on the Sunshine Coast which will transform the region’s tourism sector, while still retaining our relaxed, ‘naturally refreshing’ image,” he said.

“We are very excited with Shakespeare’s involvement in our region.

“They have an excellent track record in identifying highpotential tourism assets, and the Novotel plays a key role in supporting the region’s leisure and conference business.

“We welcome their intentions to upgrade and expand the resort’s facilities, as it enjoys a premier location on the Sunshine Coast and can build on its reputation as one of Australia’s most popular family-friendly and conference venues.”

38

The Property Council of Australia has welcomed progress towards the adoption of the National Energy Guarantee, and says its resolution must be the top priority for state and territory governments and the Federal Parliament.

“We believe the energy sector will need to do more on emissions over time, but it’s vitally important that certainty is delivered by supporting the NEG package that is currently on the table.

“We welcome the progress made through the COAG energy ministers meeting and the Coalition party room stages, but it’s vital that momentum is maintained towards a final agreement.

“We’ve suffered through a decade of energy and climate policy zigs and zags. It’s time to get behind a policy framework which can deliver certainty on the supply and cost of energy for Australian households, business and industry as well as meeting our emission reductions goals,” Mr Morrison said. ■

resortnews | october 2018

The Last Resort

| developments

Go wild: Contribute to conservation while on safari Situated in South Africa’s ecologically and culturally significant Eastern Cape Province, close to Port Elizabeth, Shamwari Game Reserve is a conservation orientated 5-star safari holiday destination and home to vast herds of wildlife, birdlife and flora with five of South Africa’s seven biomes found here.

The malaria-free reserve is known for its systematic, scientific rehabilitation and considered conservation programmes.

Over the past 25 years, these have seen ecological diversity restored on the reserve and the reintroduction of the big five and other indigenous animals.

A committed team shares the same passion, ethos and vision of continually developing the 25,000-hectare reserve to ensure the conservation of South Africa’s incredible ecological diversity and this year new owners completed the first phase of a US$25 million upgrade, opening two refurbished lodges, its flagship Eagles Crag and Riverdene Family Lodge.

Joe Cloete, CEO, says the investment is not only to provide an enhanced luxury experience for guests. It will ensure Shamwari is able to continue attracting revenue to fund its crucial conservation work.

“We want Shamwari to be one of the world’s premier wildlife experiences, so we can sustain and grow an exceptionally successful 25-year conservation programme. A stay at Shamwari contributes to conserving a vanishing way of life.”

The upgrade at Eagles Crag has accentuated its reputation for exclusivity and luxury. The setting is tranquil, in a forestcovered valley floor at the base of the cliff from which the lodge takes its name. A new viewing deck incorporating a fire pit and two private dining pods elevates guests above the forest canopy, while individual dining pods allow couples to share intimate meals and uncompromised views.

On the ground floor, the refurbished lodge now also offers an entertainment lounge, complete with billiard table, and gym. The spa facilities have been upgraded and new international brands, Babor and Elemis products introduced.

The nine stand-alone suites, each of which sleeps two, have been extensively upgraded.

Luxurious interiors open onto private decks in the forest and each suite has both interior bathrooms and outside showers and a heated plunge pool.

Riverdene Family Lodge has been almost entirely rebuilt. The nine spacious rooms are ideal for multi-generational families.

All rooms are interconnecting, allowing for family time during the day and privacy for adults after the children are in bed. The family orientated design extends to the exterior where a fully supervised outdoor children’s adventure playground combines climbing towers, elevated walkways and ziplines, all of which was specially designed for Shamwari. There is also a toddlers’ play area, maze and a mini soccer field.

Shamwari’s wildlife rehabilitation centre, considered one of the best and most successful in South Africa, is being expanded and guests will now be able to visit a purposebuilt facility on the reserve, where animals are cared for and treated before being released back into the wild.

This is in addition to the two big-cat sanctuaries, where, in partnership, with the Born Free Foundation, rescued African big cats are given a permanent home. The entire upgrade programme will be completed

by November 2019.

To find out more about Shamwari Private Game Reserve visit: www.shamwari.com

When not out on game drives or enjoying themselves in the play area there are plenty of organised activities for children including a Kids on Safari programme which includes tracking and animal behaviour, star gazing, visits to the Born Free Foundation and pizza evenings.

For parents wanting a bit of quiet time, the poolside bar area, lounge and restaurant, looking out over a nearby waterhole, provide peaceful areas to relax.

The next phase of the project includes renovating the historic manor house, Long Lee Manor and extensively re-building the contiguous accommodation to provide18 luxury suites. A new, flag ship luxury tented camp is also being built. resortnews | october 2018

39

Property Guide

management rights••resorts hotels • motels • resortsparks • holiday parks •share time share • hosted management rights • hotels • motels • holiday • time • hosted

motel market Profiles New Manager Genesis Apartments

RESORT NEWS SALES REPORT PROUDLY BROUGHT TO YOU BY ACCOM PROPERTIES

www.accomproperties.com.au MANAGEMENT RIGHTS Gold Coast Pacific Regis Enderley Gardens Allegra Apartments

Rick Nicholson

Burleigh Heads

TMR

John Chang & Serena Chen

Surfers Paradise

MRS

Roger Poon

Southport

RBA

MRS

Brisbane Peppertree Place

Jane Boyle

Aspley

Magnolia Complex

Ray Faulks

Kallangur

RBA

Song Property Development

South Brisbane

RBA

Victoria Cove

Darren James Potter

Victoria Point

RBA

Treetops

Rod & Marg Linnett

Everton Hills

RBA

Peng Zhao

Notting Hill

RBA

Peter and Coral Roil

Maroochydore

TMR

MH Management

Hervey Bay

RBA

Benn Wilson

Caloundra

RBA

Adrian & Elmira Mayfield

Palm Cove

RS

Chris & Pamela Gilbert

Nelson Bay

MRS

Aurora Assest Management Group

Erskineville

RBA

P & B Potter

Kilcoy

RBA

Brisbane Casino Towers L – R Wayne Stoll, Michael Goh, Linda Stoll, Kevin Goh , Narelle Filmer, Ashleigh Massie

After many years operating a retail distribution business on the Gold Coast, Michael Goh and Evangeline Lim decided to expand their business interests and purchased the management rights of Genesis Apartments.

The entrepreneurial team see the management rights industry as a great ROI opportunity and an ideal way for them to introduce family into the business. Michael and his son Kevin are managing the day-to-day operations at Genesis and are enjoying it immensely.

The team at Think Management Rights wish them every success in their new business venture.

Notting Hill Terraces & Bridgeman Greens

Sunshine Coast / Wide Bay / Fraser Coast On the River Resort Oceans Resort and Spa Rumba Beach Resort

North Queensland Oasis Palm Cove

New South Wales Cote D’Azur

Oasis Port Douglas

OneA

MOTELS & OTHER Queensland Kilcoy Country Gardens Motor Inn Emerald Motel Apartments Aspley Sunset Motel

Don Lawless

Emerald

RBA

Michael & Mary-Ann Brown

Aspley

RBA

Turnkey Property Group

Grafton

TB

Junhao Investments

Dubbo

TB

Valaze Group

Dubbo

TB

T. Singh

Gilgandra

TB

New South Wales Hi Way Motel Cascades Motor Inn Matilda Motor Inn L - R Frank van der Heijden with Adrian and Elmira Mayfield

Orana Windmill Motel

When Adrian and Elmira Mayfield decided to purchase management rights they looked at a number of businesses in Cairns, Northern Beaches and Port Douglas before being shown Oasis at Palm Cove by Frank van der Heijden from Resort Sales.

Frank had spent considerable time with them explaining the ins and outs of buying and running a managing rights business and when they walked into Oasis at Palm Cove, they were sold immediately with the magnificent entrance lined with fox tail palms, the 2.5 acres of landscaped rain forest gardens with huge lagoon pool, separate apartment blocks and tennis court all set within an aptly named paradise!

River Country Inn Holbrook Town Centre Motor Inn Kianinny Bush Cottages

D. Marks

Moama

TB

Hardik Upadhyay

Holbrook

RBA

Andrew & Che Rees

Tathra

RBA

Andrea Paine

Hamilton

CRE

Victoria Hamilton Townhouse Motel GPO Hotel North Eastern Hotel Quest Geelong Quality Resort Inlander

Caroline Leslie

Rosebud

CRE

Michael & Stuart Smee

Benalla

CRE

Xavier Wu

Geelong

RBA

Jason Penrose & Nathan Clarke

Mildura

RBA

Paul & Tania Morris

Penola

RBA

They set a timeline for the purchase that worked out perfectly for them and the team of professionals that Frank put together including legal, accounting, a finance brokerage and even the bank.

South Australia

“It is a regulated and structured industry,” says Adrian, “and from our perspective we are extremely happy to now be living our dream in paradise.”

Note: Agent/Broker involved in the sale is listed last.

40

Alexander Cameron Suites

Agent - KEY: ARMS - Australian Resort Management Sales; LIZ - Liz Lavender Management Rights; CRMR - Calvin Bailey Management Rights; CRE - CRE Brokers; MRS - MR Sales; PPRE - Property Pacific Real Estate; QTH - Queensland Tourism & Hospitality Brokers; RAAS - RAAS Rights; RBA - Resort Brokers Australia; RS - Resort Sales; TB - Tourism Brokers; TMR - Think Management Rights; WCH - Ward Commercial Hotels. * In conjunction

resortnews | october 2018

management rights • hotels • motels • resorts • holiday parks • time share • hosted

Property Guide

New Manager Profiles On the River Resort

The fastest growing accommodation listings website

www.accomproperties.com.au

OVER 1,0 00

L-R Peter & Coral Roil with Barry Alleway of Think Management Rights

Having previously owned and managed a management rights business some 30 years ago Peter and Coral Roil are delighted to have re-entered the industry with the purchase of On the River Resort in Maroochydore.

Peter said “When we inspected the Complex and walked into the managers unit and saw the magnificent view over the Maroochy River, we thought, “This is us”.

MANAGEMENT RIG H AND CARAVAN PTAS, HOTELS, MOTELS RKS FOR SA LE

The Industry has come a long way from when we were it previously and we look forward to the new challenges and rewards that come with it.

“We would like to acknowledge the team of professional advisors, Barry and Sharyn Alleway and the Team from Think Management Rights, for their assistance with the purchase process to achieve a seamless settlement.”

MANAGEMENT RIGHTS MOTELS REAL ESTATE SPECIAL PROJECTS PROJECT MARKETING

MUST SELL WITH A PRICE REDUCTION! Introducing Haydn Meyer CLOSE PROXIMITY TO BRISBANE CBD This Management Rights business offers a very unique city living lifestyle. The current on-site Managers are motivated to sell.

The multiplier is very realistic as is the value on the apartment and there is 23 years to run on the agreement. Fantastic BC committee as well. If you are one of those ever-increasing numbers of people who are now at a stage in life where you are looking for a city living lifestyle then look no further.

This magnificent complex offers facilities such as: 25m pool, sun decks, spa, gymnasium, BBQ pavilion garden terraces & resident common room available for a private function with kitchen and toilet facilities.

The Managers Unit has been slashed from $828,000 and the Management Rights business is listed at $571,700. The Nett income can easily be increased without a lot of effort if you so desire.

Nett Income: $133,000

Asking Price: $1,399,700

For your personal inspection contact Robert Collins on 0404 678 792, robertc@raas.com.au or Haydn Meyer on 0411 441 727, haydnm@raas.com.au

GROW YOUR BUSINESS

Haydn Meyer is one of the most sought-after, award-winning, and licensed real estate agents in Brisbane and has been involved in every facet of the business for more than two decades. He brings a fresh, committed, educated and honest approach to Management Rights Brokerage going above and beyond to achieve the best possible results for his clients.

His effectiveness can be attributed to his customer service and marketing expertise, as well as his compelling communication and negotiating skills. He is a dedicated advocate for his clients’ real estate needs.

By accessing the very best in technology, precise market data and new marketing applications he leverages each opportunity for the benefit of his clients and derives enormous pleasure from helping people find their dream investment.

Haydn succeeds through persistence and honesty.

His attentiveness, empathy and good humour alleviate the stress his clients may encounter helping them to enjoy the process and realise their ultimate goal.

Haydn has forged a strong reputation as a result driven high performer and takes pride in being a part of the committed, energetic and world-class team that is the RAAS Property Group. He looks forward to the opportunity of applying his substantial skills to the Management Rights Industry.

INCREASE YOUR INCOME

PROTECT YOUR INVESTMENT

Phone 07 5593 0007 www.raasrights.com.au resortnews | october 2018

41

Property Guide

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motel market Spotlight on the Gold Coast

The Gold Coast property market: a cautious confidence prevails

Depending on who you speak to, the Gold Coast property market may be slowing after the beat up of the Commonwealth Games, declining in line with the rest of the country or stoically holding its own – a trend that most are quietly hoping will continue.

According to a recent CoreLogic report, the Glitter Strip recorded the second highest property value growth across regional Queensland in the last financial year with median house prices increasing by 4.8 percent and the unit market up 4 percent.

CoreLogic analyst Cameron Kusher said the coastal and tourism markets in Queensland are performing reasonably well.

Michael Philpott, director of MR Sales believes the infrastructure legacy of the 2018 Commonwealth Games did more good than harm. “In

42

addition to being able to present and market the city to over 1.5 billion people world-wide, the Games delivered around $1.8 billion in new and upgraded sport, transport, community, digital and event infrastructure as a permanent city legacy and launch pad going forward.”

Investments in the Gold Coast, from both from the public sector and major corporate players, include: •

$400 million Commonwealth Games legacy infrastructure

•

$2 billion Star Gold Coast masterplan

•

$3 billion Light rail network (ongoing)

•

$1 billion Jewel Towers, Surfers Paradise

•

$500 million Gold Coast Airport revamp and expansion

•

$5 billion, 200-hectare

Gold Coast Health and Knowledge Precinct •

New Gold Coast Cultural Precinct including museums, galleries and performance space

“Combined with the essential infrastructure and the vision of all levels of government, the Gold Coast is well positioned to capitalise on the market positioning and growth.

Benefiting from recent multimillion dollar upgrades to the Gold Coast airport (one of Australia’s primary regional hubs and the fifth biggest international airport in Australia) where we see 6.6 million passengers per year and the extension of the Gold Coast light rail project, we are expecting more visitors than the traditional 12-million domestic and 1.1million international visitors per year. If we see a trade war erupt going forward and the Australian dollar dropping, the benefits to the Gold Coast

resortnews | october 2018

and tourism will be huge and create a real 'game on' for the industry and area generally, as one in six jobs are either directly or indirectly resulting from tourism,” says Philpott.

Recognised as the third largest destination in Australia, the Gold Coast has also been identified as one of the most desirable places in the world to live ranked on political, social, economic and environmental factors, personal safety and health. It is an international gateway to 26 destinations worldwide serviced by 30 airlines and offers one of the largest choices of themed attractions in the southern hemisphere.

According to Tourism and Events Queensland the Gold Coast region remains Queensland’s domestic holiday destination attracting 2.1 million holiday makers representing 7.9 percent year on year growth.

MANAGEMENT RIGHTS RESORTS

SOUTH BRISBANE

SURFERS PARADISE

LOCATION, LOCATION

BEACHSIDE MAGIC

Well positioned within South Brisbane and a stones throw from all the attractions of Southbank. Walk to Brisbane CBD. All is at your doorstep.

Quality apartments and resort like amenities.

Impressive and spacious reception and back office exclusive use areas.

A first class business with long agreements in place and a very generous Body Corporate Salary.

You want the best? Contact me now for a confidential inspection.

NETT $480,000 PRICE $3,376,000

Bobo Qi

0438 027 771

A fabulously successful holiday business with an attractive body corporate salary. Absolute beachfront location with spectacular ocean and hinterland views. Boutique high rise building of 33 three bedroom apartments (2 per floor) with wrap around balconies to savour the views. Quality 3 bedroom ground floor managers apartment has a large floor plan of approx 155m2, perfect for entertaining with post card coastal views. Separate office on title with 2 secure underground car spaces and large storage cage. The beach, nightlife and light rail are all at your doorstep. Make this all yours!

bobo@propertybridge.com.au

NETT $317,000 EXPRESSIONS OF INTEREST

ROBINA

GOLD COAST

STUDENTS ONLY

LIFESTYLE

Superior location near Griffiths Uni, GC Hospital, light rail.

Outstanding permanent, upmarket facilities. Stroll to train, school, hospital, Town Centre and more. Long agreement, no set hours, substantial income. Superb 3-bedroom, 3-bathroom Manager’s townhouse.

Private, secured garden, rare 3-car accommodation. Be envied!

NETT $173,000 PRICE $1,365,000

High occupancy purpose designed. All investors.

Rhonda Perkins 0418 767 115

No need to live on site. No set hours. Long Agreements.

Spacious freestanding 3 brm home and office. Minimal grounds.

rhonda@propertybridge.com.au

NETT $191,000 PRICE $1,512,000

FREE MARKET APPRAISALS QUALIFIED BUYERS DISCREET “SILENT” LISTINGS UNRIVALLED BUYER SUPPORT

propertybridge.com.au

Property Guide

management rights••resorts hotels • motels • resortsparks • holiday parks •share time share • hosted management rights • hotels • motels • holiday • time • hosted

motel market Spotlight on the Gold Coast

A leading demographer, Bernard Salt has stated that “the Gold Coast needs to prepare for a population of 1.2 million people by the year 2050”. That is almost double the 2017 actual from the ABS of 607,282 and is expected to grow to a population of 820,000 in the next 20-years.

In the 2016 / 2017 financial year more than 3000 development applications were made with Gold Coast City Council and there

were 6,891 residential building approvals through Council.

Last year, REIQ Gold Coast chairman John Newlands stated that strong property growth was a major milestone for the Gold Coast. He said the driving forces behind the increase was population growth and employment.

Queensland has led the nation in net interstate migration

over the past year, and job creation is quite strong, in part because of the many significant infrastructure projects being built.

Tod Gillespie, director of Herron Todd White said: “With Tourism as the Gold Coast’s main industry being consistently strong over the years, we have seen a considerable number of jobs created. As a consequence, we have seen increased population

growth as people move to the Gold Coast for work, and in fact, the latest occupation figures show an average year on year increase from 2017 of approximately 3.2 percent for the last three months.”

According to McCrindle Research, ‘baby boomers’ collectively make up a quarter of Australia's population (5.3 million) and own over half of the nation's wealth.

Bobo Qi – Property Bridge

Introducing... Bobo Qi – Property Bridge One of Property Bridge’s most respected, high profile management rights and resort brokers Bobo told us: “Hello, I am the sales director and co-founder of Property Bridge. I’m originally from China, subsequently took up residency in New Zealand in 2000 where I graduated at Auckland University of Technology and finally relocated to Australia in 2007 where I have enjoyed living and working here ever since.

“Prominent in the Gold Coast and Brisbane markets, I have access to a quality pool of business connections which form the foundation of our thriving business, offering both sellers and buyers a comprehensive and professional resource, while also offering a cultural bridge where needed.

“I was employed as sales executive specialising in management rights sales for several years with a premier long-standing management rights

44

brokerage firm based on the Gold Coast. During this time, I established myself as a high performer and gained an enviable reputation for my dedication and tenacity.

“While always seeking to contribute to the growth, stability and knowledge base of the industry, as a board member, of the Australian Resident Accommodation Manager’s Association (ARAMA), member of the REIQ (Real Estate Institute of Queensland) and Gold Coast Tourism, my pro bono assistance is often sought and gratefully received by industry members.

“A close association with the industry’s leading specialists, my past business experience including ownership of a prominent management rights business on the Gold Coast together with a thorough understanding of Chinese business culture, gives me an intuitive edge when brokering sales within this dynamic industry.” resortnews | october 2018

Name: Bobo Qi Mobile: 0438 027 771 Agency: Property Bridge Area of Service: South East Queensland Web: www.propertybridge.com.au Email: bobo@propertybridge.com.au

management rights • hotels • motels • resorts • holiday parks • time share • hosted

Property Guide

Spotlight on the Gold Coast

Australian ‘baby boomers’ make up 40 percent of the workforce that is going to reach retirement age over the next 15 years and the Gold Coast is going to get a significant portion of the market on offer. A number of specialist areas, retirement villages and unit developments will be created to service the demand and these properties will gain considerable marketing benefits from the enhanced services available

through management rights continuing to grow the industry.

‘off plan’ sales occurring as there were in the preceding two years.”

manager of Resort Brokers remains positive however, saying:

When asked about the current management rights situation, and more particularly with holiday and permanent sales, the legal profession concurs. Col Myers, Partner of Small Myers Hughes said: “Sales in both holiday and permanent properties slowed about six to seven months ago and there are certainly not as many

Matthew Manz of Mahoneys Lawyers agrees: “There has been a slow down over the past few months and some of the reasons for that include a tightening by the banks, an uptick in body corporate/manager disputes, and that there are simply a number of managers who aren’t ready to sell.”

“The Gold Coast is literally the birthplace of management rights, a concept that was introduced here in the mid-1960s and it has always been a really strong market. We are still seeing very strong demand for both holiday-letting and permanent residential complexes, particularly for properties of scale.

Trudy Crooks, national sales

Right connections seal the landmark Nexus sale A team effort by three RESORTBROKERS® Gold Coast agents successfully linked experienced accommodation operators with a shared Chinese background to seal the recent multi-million dollar sale of Nexus Towers at Southport.

When brokers Alex Cook and Paul Mueller listed the Nexus Towers management rights this year with a $3.5m price tag, it continued a relationship that began in 2014 when RESORTBROKERS® first sold the landmark twin towers to partners Ryan Yang and Vincent Zhang.

Four years on, the go-ahead young operators, who’d drawn on previous real estate experience to run a very successful business, were ready to pursue to other opportunities.

RESORTBROKERS® says, welcomed for their thoroughly professional approach.

According to Todd Warner, the Nexus sale is indicative of the strong appetite for large-scale management rights properties.

Enter local RESORTBROKERS® colleague Todd Warner who introduced the ideal buyer, experienced motel owner Fred Wei who was keen to move into the management rights sector.

Located in the heart of Southport, the exclusively residential Nexus Towers provide a total of 185 apartments linked at street level by a stylish foyer and reception area. Amenities include retail,

an outdoor heated pool, spa, gymnasium, cinema, library and secure underground parking.

“Qualified buyers, including experienced operators and investment syndicates, are actively hunting sizeable management rights opportunities,” he said.

The management rights, with 55 units in the letting pool, came with a $266,000 body corporate salary, long 23.5-year agreements, and an impressive three-bedroom manager’s unit.

“We’re leading the market in putting together deals like this, and that comes down to RESORTBROKERS®’ experience, resources and a positive culture of collaboration between our strong network of 35-plus brokers.

Buyers of Chinese origin are increasingly playing a very successful role in the Gold Coast management rights industry,

“The truth is, demand on the Gold Coast right now is really outstripping supply of larger, quality offerings.”

resortnews | october 2018

45

Property Guide

management rights••resorts hotels • motels • resortsparks • holiday parks •share time share • hosted management rights • hotels • motels • holiday • time • hosted

motel market Spotlight on the Gold Coast

“Year to date, Resort Brokers has settled seven significant management rights sales for prices ranging from close to $1 million up to more than $12 million. A further nine deals are contracted worth a total of close to $23 million.

“We continue to see a shortage of new apartment stock on the Gold Coast and expect returns for the short-term accommodation to increase as the tourism market fires and the Australian dollar declines. We did see some adjustments in the market place with the exit of a number of foreign buyers for some of the properties, in particular the Chinese market but that seems to have stabilised now.”

“With a general shortage of quality stock and increasing demand, we expect opportunities to be created and additional listings to come through as a result of some of the banking facilities changing from interest only to P&I facilities,” adds

46

Queensland has led the nation in net interstate migration over the past year, and job creation is quite strong, in part because of the many significant infrastructure projects being built Michael Philpott. “Potentially this may have a significant impact upon syndicate ownership structure investors with many seeking a higher cash flow return on invested funds rather than paying down bank facilities.”

“Partnerships and large corporates have been significant purchasers of the top end of properties with income of $450,000.00 upwards,” says Charles Nurse, director of Stratacorp. “We have an extensive database of major corporate operators coming to the table on decent scale businesses along with additional new organisations looking to get into the space which are

retaining strong multiples”.

“Stratacorp have specialised in medium to large scale opportunities, in particular “Off Market” transactions. We have had absolutely positive results for our vendors by methodically and strategically getting all of our deals across the line. The financial banking system has changed the process slightly, however ensuring our purchasers are well placed with the right industry specific specialists is critical to everyone’s success.”

“The usual period for finance approval was around 28 days. At the moment, that is now taking 35 to 42 days and in some cases

resortnews | october 2018

longer. This of course pushes out the time between going to contract and settlement.”

What it does highlight though, says Trudy Crooks, “is that it is more important than ever for sellers to work with expert industry specialists able to properly identify and qualify buyers who are capable of meeting the finance requirements.”

Darren Brent, managing director of Property Bridge agrees: “We vet our potential buyers as a part of the initial qualification process, which includes ensuring they seek advice from industry specialists in the finance and accounting arenas. That being said, we are aware that, given the current climate of upward interest rate pressures coupled with the knee jerk reaction of banks around credit processes in the midst of the Banking Royal Commission, financiers are taking a far more conservative credit assessment approach.

RESORTBROKERS.COM.AU

|

1300 665 966

Select the best. High life. High income.

The Cream of the Coast. Fullstop.

EXCLUSIVE LISTINGS

LABRADOR, QLD

MERMAID BEACH, QLD

Modern, High-End Permanent High-Rise

Lifestyle Business Right On The Beach

The perfect management rights business for a couple looking to combine a sizable and secure income, with top quality lifestyle – stunning location, manageable workload and the best manager’s residence you are likely to come across.

This lifestyle business is simply the best, with absolute beachfront location. It combines pure luxury with a laid back vibe. The business is set up to be smoothly run by a couple with plenty of time to enjoy the beach lifestyle, whilst netting $160,000+.

NET: $296,000 | Price: $2,930,000

NET: $162,086 | Price: $1,450,000

PAUL MUELLER

TODD WARNER

0439 255 507 paul@resortbrokers.com.au

0438 170 763 todd@resortbrokers.com.au

CARRARA, QLD

SURFERS PARADISE, QLD

Huge Permanent with Huge Upside

The Manager’s Unit That You Deserve

One of the largest permanent MR’s (790 units) to hit the market in recent years. Multiple avenues for growth and capital gain. Stylish manager’s unit with lake views, with a prominent commercially zoned real estate office on title.

Delighted to offer to market this Gold Coast holiday complex with a net profit over $314,000, these don’t come along often! With a manager’s apartment that is 150m2 of absolute beachfront apartment living.

NET: $666,187 | Price: $3,995,000

NET: $314,863 | Price: $2,850,000

ALEX COOK

MARK CRAPPER

0467 600 610 alex@resortbrokers.com.au

0490 136 215 mark@resortbrokers.com.au

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Property Guide

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motel market Spotlight on the Gold Coast

“A good percentage of our buyers are well-established Australian Chinese,” says Brent. “Property Bridge still has a pool of wellqualified and financially-sound buyers that are still looking to accumulate or upsize their current management rights businesses, or alternatively have extensive previous business experience and wish to move into a management rights business.”

Trudy Crooks agrees: “Thirty percent of enquiries for permanent complexes is coming from Chinese buyers, though they are people who are already settled here, not the migration market.

“The low Aussie dollar does however, make Australian property appear comparatively cheaper to foreign investors which is resulting in many seeking out a bargain. Whether we like

tends to follow a rolling sales process with the ‘Mom and Dad’ properties revolving every three to four years,” says Tod Gillespie.

2016 and 2017 were big years in management rights but it has quietened, agents are reporting that foot traffic has fallen and they are having to work harder to achieve the same results.

it or not, foreign investors have been are buying our property our investing in major developments.

“The New Zealand market has always been a mainstay of the Gold Coast management rights industry and we are seeing

something of a resurgence in interest from across the Tasman. That said, the traditional ‘Mom and Dad’ market is still strong for the smaller and mid-scale properties.”

“The management rights sector

“The current market is seeing less volume of transactions as vendors lengthen their time in existing businesses and when they do sell most of the demand seems to be coming from interstate locals - primarily Sydney, Melbourne and expats – all buyers that can and are taking advantage of the “lower” prices on the Gold Coast and the sought-after lifestyle.

“While nothing to be alarmed at, the general property market appears to be shifting. The investor market appears quieter

A quality complex in a quality area Palm Crest Heights is a luxury complex set on 16 acres adjacent to the Palms Meadows Golf Club in a prestigious area of Carrara on the Gold Coast.

to the north and Merrimac to the south. Carrara is home to Metricon Stadium, home of the Gold Coast Suns AFL team and host to major events throughout the year. The ever popular Carrara Markets also call this suburb home.

Offering 129 x 3 bedroom townhouses averaging rents between $450 and $520 per week (45 of which are in the letting pool), the first stage of this well maintained estate was completed in 1994.

There are 25 year Accommodation module agreements in place expiring 2040. The current managers have topped the agreements up and there are 22 years remaining. The Body Corporate salary is $170,000 + GST and the Body Corporate provides and maintains all equipment and consumables.

There is also an established

48

Palm Crest Heights is nestled on the southern side of Carrara. This quiet and tranquil location also has the added bonus of being a short drive to Broadbeach, close to public transport, the M1, schools and major shopping centres. base of experienced and knowledgeable contractors and suppliers in place.

The manager’s residence is a 3 bedroom, air-conditioned townhouse with enclosed rear yard and the large off ice with

back off ice and storage is separate from the residence.

A pet may be considered with Body Corporate approval.

Carrara is situated on the banks of the Nerang River, bordering Broadbeach to the east, Bundall

resortnews | october 2018

Net Profit: $253,500 Asking Price: $1,950,000 (Inclusive of manager’s real estate)

For further information on this great permanent management rights opportunity on the Gold Coast, contact Phil Trimble on 0418 478 966.

management rights • hotels • motels • resorts • holiday parks • time share • hosted

Property Guide

Spotlight on the Gold Coast

than the owner occupier market and for management rights that translates to a loss of value. In order to avoid ‘buying a job’, the ideal properties are those with a stable mix of residents and a strong salary to keep the onsite manager going.

“So saying, there are definitely suburbs that are out performing others,” adds Gillespie. “There is still a very strong demand for properties within two kilometres of the beach – such as the Isle of Capri and Palm Beach.

Sometimes, we are even seeing the right property in the right location realising up to $100,000 more than reserve while investor stock in suburbs like Pimpama and Yatala are getting less than what they cost to develop.”

Mike Philpott agrees: “We are seeing strong support by investors of new properties

The current market is seeing less volume of transactions as vendors lengthen their time in existing businesses and when they do sell most of the demand seems to be coming from interstate locals from historical sales, but the ramifications of the Royal Commission are just starting to be seen with interest only funds extremely diff icult to secure and P&I loans making investors more conservative. As a result, we are increasingly seeing developers design more of the stock for owner occupation rather than tourism with larger upmarket twoand three-bedroom apartments with side by side carparks. As some of the demographics alter and we see areas like Mermaid

Beach (Cerulean), Broadbeach and Surfers Paradise increase in popularity for owner occupation.

“In addition to the changes from the banks' lending policies there are also less investors in the second-hand real estate market as a result of the changes of negative gearing on any secondhand properties and some related items purchased after budget night (May 9) with the exception of existing investments that were grandfathered (exempt from the change). The turnover

Peace of mind for your property decisions

in that segment of the market has slowed and investors are now seeking higher returns from rental.” So, if the purported value of the management rights industry is ‘shifting’ what impact is this having on multipliers?

Multipliers across both permanent and holiday businesses seem to be fairly stable at present,” says Matthew Manz. “They appear to have peaked and whilst there is no downward spiral, they are certainly not going any higher.”

From a sales perspective, Darren Brent and Trudy Crooks agree: “Sales multipliers for both holiday and permanent complexes are at record highs at the pointy end of the market with permanent complexes tracking slightly higher than holiday businesses. This is largely due to a shortage of supply, particularly of properties of scale.”

The Management Rights Lawyers

Management rights and unit valuations for all major financiers, presale advice and due dilligence for buyers

BUYING/SELLING ASSISTANCE

OFF THE PLAN IMPLEMENTATION

RENEWAL STRATEGY

Gold Coast, Brisbane, Ipswich & NSW North Coast Tod.Gillespie@htw.com.au

DISPUTE RESOLUTION

Sunshine Coast, Reg Qld & NT Chris.McKillop@htw.com.au Australia’s largest independent property advisory group

www.mahoneys.com.au resortnews | october 2018

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Property Guide

management rights••resorts hotels • motels • resortsparks • holiday parks •share time share • hosted management rights • hotels • motels • holiday • time • hosted

motel market Spotlight on the Gold Coast

When asked whether there are other factors influencing the market, Col Myers says: “The assignment process with bodies corporate has become a significant issue in the management rights industry.

Bodies corporate are placing incoming managers under greater scrutiny and they are conducting a much higher level of investigation prior to consenting to assignments. We are regularly seeing conditions imposed by bodies corporate on new managers who have little experience, such as requiring that they complete induction courses with the Australian Resident Accommodation Managers Association (ARAMA) or similar, or engaging with industry consultants to assist them with the changeover as well as to provide assistance for the period post-settlement.

“Right now, sellers and buyers of management rights have to be very patient. Sales have become a protracted process that has to be methodically worked through and vendors and purchasers with unrealistic time expectations will be sadly disappointed.”

“Despite the assignment process taking significantly longer and being more expensive than it was in the past, the additional training and preparation of applicants is not necessarily a bad thing, says Darren Brent. “Most assignments that we are involved with proceed

relatively smoothly as we assist buyers and sellers in engaging the most reputable professionals prior to contract. The need to engage additional service providers in this process can however, lead to unreasonable hurdles and price gouging by unscrupulous operators so we urge our clients to be pedantic about only working with recognised professionals.”

And talking matters legal, are the

QLD - NSW - VIC - WA

reforms and reviews occurring across other states, primarily with regard to accommodation industry disrupters like Airbnb, having an impact in Queensland and the Gold Coast?

“While Queensland has no immediate legislative agenda tabled, both NSW and Victoria are moving ahead with regulatory reform processes,” adds Brent.

“We’re confident however, that ARAMA’s regulatory committee is proactively managing the industries interests to ensure the best possible outcomes.”

“Exceptional opportunities are ahead for the industry with an increasing consumer appetite towards serviced apartments (the key being serviced) where guests can have more space and make the stay more homely,” says Michael Philpott.

“Guests still expect to have an onsite manager and available services / minimum standards in the case of issues and that is a competitive advantage against offerings like Airbnb.

“Research and consumer

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resortnews | october 2018

demand are continually showing that more and more people are desiring to mix business with pleasure and have an entirely different experience to that of a traditional hotel. Technology is mobile and easily used allowing services to be better utilised by guests. All this augurs well for the development market and existing property owners as there are a number of competing interests attempting to secure similar opportunities with some serviced apartments used by owner occupiers. As the growth in both sectors increases (i.e. owner occupiers and holiday / business guests), that will force through increased demand, increasing prices of available stock.”

“Management rights is too big an industry not to prevail,” says Charles Nurse. “The shared economy and services like Airbnb are disruptors not killers, and they exist essentially to make use of otherwise underutilised goods. The secret is to learn how to work with not against these influencers.”

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Property Guide

management rights••resorts hotels • motels • resortsparks • holiday parks •share time share • hosted management rights • hotels • motels • holiday • time • hosted

motel market Spotlight on the Gold Coast

Property consultants Urbis reported 21 new projects launched to market on the Gold Coast in the first half of 2018, equating to a total of 2,554 new apartments. Over that period, six projects sold out.

In Q2 2018, Urbis reported the Gold Coast recorded the highest number of surveyed sales nationally, despite being the smallest market with only 7,333 units in the future pipeline.

This is in strong contrast to the national apartment sales trend, which has slowed.

“A number of developers of both permanent and holiday complexes are speaking with Resort Brokers about establishing new management rights with a view to taking them to the market off-plan,” says Trudy Crooks. “Once complete, new developments are letting very strongly. It appears that the local economy is strong with a number of major public and private infrastructure and projects underway.”

Echoing this sentiment, Philpott adds: “There are a number of significant growth hotspots on the Gold Coast. The $1.5 billion Coomera Town Centre and entertainment precincts, the $970 million luxury Jewel project at Surfers Paradise, Harry Triguboff ’s Meriton ‘Ocean’ beachfront tower in the heart of Surfers Paradise and the $550 million retail, dining, entertainment and residential Queen Street Village just to name a few. Also having an impact on the Gold Coast is the construction of the light rail; a number of areas have already benefited from the enhanced transport and services spreading the concentration of guests more evenly for the greater benefit of the coast generally.”

Brent elaborates: “There is also the upcoming $340 million expansion to the main passenger terminal, and the proposed development of the Palaszczuk government’s one-billion Dollar global tourism hub.

52

“Helping out tourism and high rollers, we are also benefiting from a new, six-star standard tower as one focal point of a huge redevelopment of the Star Gold Coast, with an overall investment in development and existing property refurbishment worth about $850 million, and more is on the way.”

Everything is pointing to continued market strength, with infrastructure investment and interstate migration fuelling the residential sector and record tourism growth driving the holiday letting market,” says Trudy Crooks. “The Gold Coast is now a major city underpinned not only by its thriving tourism sector, but by a very broad economic

base including construction, business and events, knowledgebased industries and health.

While the presence of multiple cranes and scaffolding along the breadth of the Glitter Strip is certainly indicative of a positive market, and it is likely that it will still get a delayed boost in tourism following the Commonwealth Games, the overall sentiment is one of caution.

“Myers and Manz believe that with the current position of the major banks and further interest rate increases, the market is likely to soften in the next 12 months and a patchy sales market will continue in the immediate future.

resortnews | october 2018

Gillespie is forecasting a decrease in property values of between 10 to 15 percent but acknowledges the ongoing development strength in the industrial strata sectors, service stations, childcare facilities and over 55 lifestyle complexes.

Australia’s property markets are very fragmented at the moment so correct asset selection is more important than ever. A region such as the Gold Coast where there are multiple growth drivers such as employment growth, population growth or major infrastructure changes seem to tick all the boxes. ■

By Trish Riley, Editor

MANAGEMENT RIGHTS PURCHASE OPPORTUNITIES BROADBEACH ࠮ ࠮ ࠮ ࠮ ࠮

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1800 111 622

profiles | Park View North Lakes

Bold moves brings big rewards for Park View resident managers Taking a leap of faith to take on the management of Park View North Lakes in May this year was just the first of a number of bold and gutsy decisions that Joel and Nadine Leibinger have made in order to pursue their dream of owning management rights.

Moving away from their home on the Gold Coast, the young couple had also just signed the paperwork for the complex

when they discovered they were pregnant with their first baby and their new venture became a means of establishing work/life balance for the new chapter in their lives.

As a former engineer, and with a background in real estate and having managed a property for the past 12 years, Joel and Nadine sought a property large enough for them to work in together.

Just as we signed the paperwork for the complex we discovered we were pregnant with our first baby

And large enough it is. Park View is expansive: comprising 218 three and four-bedroom architecturallydesigned townhouses across two phases, 211 of which are under management as longterm rentals. 65 of these are ENRAS properties.

Outdoor facilities include a large pool, gymnasium and a few grassed and landscaped areas for children to play in. The property also boasts its own recycled water reticulation system and a stand-alone manager’s property that is fairly unique.

“We have always dreamt of getting into management rights ourselves,” says Nadine, “and Park View just seemed to tick all of the boxes.

“The property is located in

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resortnews | october 2018

a prized position in the high growth suburb of North Lakes - an engaging, vibrant and energetic community that offers the very best in leisure, health, learning, business and employment opportunities. It is ideal for commuters with Brisbane CBD located a short thirty-minute drive away and Queensland’s famous Sunshine Coast just one hour drive north.

“Unfortunately, the size of the development also presented initial financing difficulties. We realised the disparity between our aspirations and what we could afford with what the bank would lend and thought we’d have to walk away until we were introduced to the idea of a partnership through Transaction Management Consultants (TMC).

Park View North Lakes

| profiles

Specialising in management rights and other accommodation business syndicates

Trent and the team are proud to be the chosen legal advisors for Joel & Nadine and the Park View partnership

Work with the firm that delivers nationwide, industry leading transactional services and advice across all accommodation based business types. Helping hundreds of resident managers and operators each year to acquire, sell, protect and grow their business.

Phone: 07 5562 6111 After Hours: 0412 092 969 www.pevylawyers.com.au resortnews | october 2018

55

profiles | Park View North Lakes

The partnership suits us perfectly, as in addition to the extra capital from silent partners, we now have access to invaluable professional expertise and industry experience.

TMC have been really supportive throughout the whole process.

Pevy Lawyers and PBB Consult aided the team at TMC in ensuring prompt attention was given to

any matters requiring partnership instructions, and ensuring banking and due diligence objectives were met. The understanding amongst all the professionals associated with the transaction as to each other’s role was certainly a key reason an outstanding outcome could be achieved notwithstanding the complexities and tight timeframes involved.

Peter Brewer of PBB Consult says: “Whilst industry knowledge and experience is a must, strong communication between all stakeholders is a key in ensuring a successful outcome. TMC co-ordinate and manage this process with professionalism.”

“There have been a lot of adjustments over the past few months. In addition to settling into the business we are also new to the greater Moreton Bay region,” says Nadine. “With the population projected to increase significantly by 2031 however, and the opportunity to work alongside TMC, we saw it as a long-term opportunity and grabbed it.

“Our skills and background lend themselves to running the operation competently,” adds Nadine. “By holding a full real estate license I have the ability to advise and sell properties on behalf of owners and where possible manage the investor letting pool efficiently. Joel has taken on the more active role of keeping the grounds maintained

56

resortnews | october 2018

and while they are relatively low maintenance there are a lot of them and we include courtyard maintenance as a value-add so every property is well-presented and owners have peace of mind.

“In a development this size a lot of what we do revolves around educating residents about expectations, respect and the social norms of living in a community environment.

Our focus is on building good relationships with owners and tenants,” says Nadine, “and ensuring that we create a harmonious living environment.

“We really enjoy owning our own business and being in the driver’s seat,” says Nadine.

“Knowing that we’re responsible for the long-term growth of the property and increased returns for owners is both challenging and rewarding and apart from scrambling to have everything ready before bub arrives, we are look forward to the adventure.” ■

By Trish Riley, Editor

Park View North Lakes

| profiles

Transaction Management Consultants: Making dreams happen Often management rights purchases involve complex negotiations to ensure a mutually acceptable outcome and an independent party is required to get involved to assist the purchaser group.

Finance was able to negotiate with the banks to achieve the best possible outcome.

Transaction Management Consultants (TMC) assist purchasers to analyse opportunities in the early stages and offer a transaction management service to find a solution and oversee the process end to end, effectively ensuring the process and outcomes meet the expectations of the group.

In the case of Park View North Lakes Mike Phipps and Tony Rossiter, joint directors of TMC, were engaged to manage the transaction and kept all stakeholders informed though out the process ensuring no surprises along the way.

Due to the strength of the asset and the partners involved, the Partnership was presented with a number of offers When financial verification identified a shortfall in the net profit the variance was presented to the Vendor who agreed to a full reduction in the price. This was largely achieved by setting expectations during the offer and acceptance phase of the purchase

and being open and transparent throughout the process.

Due to the strength of the asset and the partners involved, the Partnership was presented with a number of offers and Paul Grant of Mike Phipps

A couple of unexpected challenges were encountered post settlement that were skilfully managed and resolved by the partnership and their advisors, and four months down the track the partnership is trading entirely in line with expectations.

As many will attest to, deals are getting ever more difficult to hold together and the benefits of having TMC manage the process were acknowledged by all parties. Having a central point of strategic organisation and access to operators with experienced and skilful advisors cannot be understated. The working partners were delighted with the outcome and suggested that this was one of the smoothest transactions they have been involved in. â–

Specialist Business Advisors We wish Nadine & Joel all the best on their new business venture at Park View North Lakes Peter Brewer

We are widely recognized in the accommodation sector as specialist advisors.

We work with a broad network of advisors including specialist legal advisors and financiers to ensure our clients interests are protected and outcomes optimised.

PO Box 1127, Noosa Heads QLD 4567 T: 07 5449 9992 F: 07 5449 9958 info@pbbconsult.com.au

www.pbbconsult.com.au resortnews | october 2018

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profiles | Surfers Aquarius on the Beach

Industry pioneers bring their unique brand of magic to Gold Coast icon When one speaks about Gold Coast-based Surfers Aquarius on the Beach it’s not hard to picture the upmarket, multiple amenities and services of an exclusive five-star resort and spa.

boasts the same footprint as the prestigious three-tower Jewel complex – scheduled for completion in 2019 - and will be perfectly situated for guests to experience the much-anticipated cafes and amenities within a short walking distance.

Centrally located, with rare private access to the beach, the iconic Surfers Aquarius offers a generous mix of 187 one, two and three-bedroom apartments with fully equipped kitchens and laundry facilities, as well as magnificent views of Gold Coast beaches and hinterland.

Coming out of retirement to manage the building nine months ago, industry stalwarts Dave and Jo Ruxton, together with Michele Meade and two members of the pioneering Gardner family, have in excess of 120 years of management rights experience.

Situated between Surfers Paradise and Broadbeach, Surfers Aquarius features a 24-hour reception, secure underground parking and more recently high-speed wifi in every apartment.

Industry pioneers: Michele Meade, Dave Ruxton and Jo Ruxton Dave is the first to admit that even as he forged out the foundations of the management rights industry and managed a number of other properties some thirty years ago, he has always

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Other facilities include a gymnasium and large, heated outdoor and indoor pools as well as a children’s wading pool, two heated spas and a sauna. Guests also have access to two floodlit tennis courts, a squash court, a putting green, a children’s play area and five barbecues set in landscaped, tropical gardens.

resortnews | october 2018

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profiles | Surfers Aquarius on the Beach

Unlike most MLR properties, Surfers Aquarius is comprised of permanents, lock-ups, holiday and rentals but has two committees – one for the body corporate and a letting committee made of the owners themselves.

“We’re thrilled to already be able to claim that as of 1st May this year, a mere five months since taking on the building, our bookings surpassed the entire previous year’s occupancy levels,” adds Dave.

When asked about how this works operationally, Dave says that it’s just twice as important to have good communications and a collaborative approach to achieving results and increasing stakeholder value.

It’s obvious that Dave and Jo have a passion for onsite management. “Hospitality is all we have ever known,” says Jo. “Our focus is on guest experience and making Surfers Aquarius a premier holiday destination.”

“Unfortunately, for the last two years the property was cloaked in scaffolding as fixed windows, sliding doors, railings and balcony tiles were replaced and there was very little marketing done,” says Dave, “On the positive side however, we now have a newly refurbished property and are aiming to reach a high 70 percent occupancy for the year.

Since taking on the building, Dave and Jo have been busy working with owners to install aircons and modernise the spacious apartments. They have also implemented their own inhouse housekeeping to lift standards, and are working with industry specialist Kate Wilkie on a comprehensive marketing and social media plan

that is actively targeting and bringing in a new clientele.

Jo is diligent about writing and sending out a monthly newsletter that provides a snapshot of updates, activities and events that are relevant to all residents, and it’s obvious that the transparent and ‘chatty’ communique is being very well received.

This venerable team obviously enjoy being back in the onsite management business and when asked what they think their secret to success is, Jo says: “We really care about our guests and the

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resortnews | october 2018

building, and we want everyone that we interact with to have the best experience possible.

“Every member of the team, from all departments have the same happy attitude and this has a huge impact on customer satisfaction.

“In addition to having a great location, we like to think that we provide a hands-on, highquality service that will keep our owners and tenants happy and our guests coming back. It’s easy to be happy with that.” ■

By Trish Riley, Editor

Directory

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ACCOUNTANTS & AUDITORS

The Preferred Supplier Programme assisting the industry

It allows managers to access industry specialists who are committed to the highest levels of service and dedicated to the accommodation and hospitality industries.

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Brisbane: 07 3421 3421 shodgetts@mcadamsiemon.com.au

Listed below are the stages of the process that ensure only the best industry suppliers can participate in the Preferred Supplier Programme:

Noosa Heads: 07 5474 8955 Buderim: 07 5408 4622 porielley@mcadamsiemon.com.au

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All suppliers must receive a nomination from a property currently using their services that is completely satisfied with their levels of service and are prepared to recommend them to another complex in the industry (ie. if asked by another manager they could comfortably recommend the required supplier).

 Due diligence reports  Structure and taxation advice  Trust account auditing  Risk and superannuation

All nominations received are then qualified through a secondary questionnaire process to ensure nominated suppliers are able to provide the highest levels of service required and expected by managers.

3.

Suppliers that still qualify are then asked to commit to the required levels of service for the next 12 months guaranteeing their commitment to the industry.

4.

Subject to the satisfaction of these processes and commitments suppliers then go on to the Preferred Supplier Database. Only Preferred Suppliers in this database have the opportunity to utilise the Preferred Supplier logo and make their contact details available to managers via the Preferred Supplier Directory, located in every issue of Resort News (and online at accomnews. com.au/business-directory).

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This is extremely helpful for all accommodation providers but especially new managers as it allows them to benefit from the positive experiences other managers have had with their suppliers.

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For over 21 years in Australia the Preferred Supplier Programme and directory has been an extremely valuable and effective tool for accommodation managers.

1.

Specialist Advisers to the Accommodation & Hospitality Industry

Telephone 07 55202144 Paul Shannon paul@brownandbenson.com.au www.brownandbenson.com.au

Specialist Management Rights Accountants

Contact : PETER MEYERS 155 Varsity Pde, Varsity Lakes, Qld 4227 t : (07) 5630 6559 m : 0402 943 549 e : peter@pmag.com.au

Preferred suppliers have their status reviewed every 12 months to ensure they still qualify and that their commitment to the industry is being met.

With these criteria in place it means that you as a manager have access to a complete range of specialist suppliers who are actively seeking to improve their services to the accommodation industry.

For your own peace of mind when dealing with any supplier ask if they are a Preferred Supplier. This can be verified by viewing a Preferred Supplier logo – made available for use in any of their stationery or marketing material or more simply by locating them in the Preferred Supplier Directory.

So when looking for products or services give yourself the peace of mind that you are dealing with a recognised industry specialist and support these suppliers who are committed to servicing your needs. ■

accountants

Experienced Management Rights Accountants • P&L for Sale • Bank Financials • All Tax Compliance • Purchaser Due Diligence

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www.ascendia.com.au resortnews | october 2018

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Due Diligence Auditing Taxation Business Advice 07 5557 8700 Paul Gaffney

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preferred supplier | Directory

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pbbconsult - Chartered Accountants Specialist Accommodation Industry Advisers QLD/NSW/VIC Ph: (07) 5449 9992 W: www.pbbconsult.com.au

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resortnews | october 2018

Directory

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www.pumasoftware.com.au resortnews | october 2018

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63

preferred supplier | Directory

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64

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resortnews | october 2018

They’ll thank you for it!

Directory

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| preferred supplier

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AUSTRALIA’S LEADING MANAGEMENT RIGHTS BROKER

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Specialising in management rights sales Australia wide

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resortnews | october 2018

65

preferred supplier | Directory

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66

• Purchase or Sale Fixed Price Available

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resortnews | october 2018

PH: 07 5406 1280

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Directory

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20

Simply send their details with a short testimonial to: psp@resortpublishing.com.au or call (07) 5440 5322

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The sign of Whatever, an Industry Wherever, Specialist. Whenever!

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www.accomnews.com.au/business-directory resortnews | october 2018

67

Port Douglas

Cairns MacKay Sunshine Coast

Brisbane Gold Coast

Armidale

Coffs Harbour

Port Macquarie

Perth

Newcastle

Adelaide

Albury

Colac Warnambool

South Pacific Laundry (SPL) has been a provider of commercial laundry and linen services to the hospitality industry in Melbourne for the last 20 years.

Sydney

Geelong

Canberra Sale

Melbourne

Currently, the South Pacific Group is establishing a strong network of modern laundries across Victoria, New South Wales, Queensland, Western Australia and South Australia with plans for several more facilities up the East Coast of Australia.

The relocation of our Sydney operations to a new larger facility in Bankstown together with the relocation of our Brunswick plant to Broadmeadows will establish South Pacific Laundry as the single largest privately owned laundry in Australia and in the Southern Hemisphere.

Contact Robert Teoh National PR & Marketing P: (03) 9388 5300 M: 0421 716 888 Coverage Australia wide

Pricing Information Contact supplier direct Delivery Free daily delivery within 25km city metropolitan areas Minimum Order Contact supplier direct

South Pacific Laundry specialises in the provision of quality linen and supplies for hospitality facilities.

SPL provides: • A 365 day service to all clientele with a 24 hour turnaround (depending on location) • A leading edge technology in RFID to assist housekeeping and managerial staff in time reduction and efficiency • Dedicated account managers and experienced support staff who are available 7 days a week • A dedicated software design package and centralised billing system enables seamless transactions, paperless and customised reports • Delivery rationalization systems, providing and streamlining efficient delivery routes which will reduce the company’s carbon footprint.

• Building of partnerships and sharing benefits with the customers from savings made through its constant laundry process innovations and group purchasing power of linen products.

• Dry Cleaning & Uniform Cleaning Services • Provision and supplying of corporate uniforms/work wears and customised hotel room amenities.

Full Contact Information South Pacific Laundry 9-23 King William St Broadmeadows VIC 3047 P: (03) 9388 5300 *Melbourne & Albury Only F: (03) 9387 2399 E: customerservice@southpacificlaundry.com.au robert.teoh@southpacificlaundry.com.au