Resort News - December 2018 by Multimedia AU/NZ

Registered by Australia Post Print Post No. 100023799

Issue 268 | December 2018 | $13.75 inc. GST

The Monthly Magazine for Accommodation Industry Professionals

www.accomnews.com.au

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

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MANAGEMENT RIGHTS MOTELS REAL ESTATE SPECIAL PROJECTS PROJECT MARKETING

BRISBANE

PRIME CBD CORPORATE OPPORTUNITY The building is located in a prime position on the fringe of Brisbane’s CBD. The complex presents the apartments to a very high standard, complete with Smart TVs and WiFi making it a top destination for repeat business, travellers or longer staying tenants. The business can be run by a two-person team or you may choose to employ staff. All wages expense has been built into the Profit and Loss.

Haydn Meyer 0411 441 727 – haydnm@raas.com.au

Nett: $312,000

Expressions of Interest

GOLD COAST

SECURE INVESTMENT IN HIGH DEMAND RENTAL AREA A quiet gated complex with a natural setting of 40 units consisting of a mixture of townhouses and villas, spacious grounds and a swimming pool. In a highly sort after rental area, there is a high percentage of investors units with only 7 owner occupiers on site. The private Manager’s residence has been refurbished, consisting of 3 bedrooms, 2 bathrooms and a nice outdoor entertaining area. This is a great investment with strong rental demand in this area giving a secure future income.

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

Nett: $123,000

Total Price: $915,000 BRISBANE

RABY BAY FANTASTIC COMPLEX If you are looking for a complex that gives you a big income at a reasonable price, this is the one for you. If you are looking for a complex that can be run by the two of you comfortably, this is the one for you If you are looking for a complex in one of the most beautiful areas of Brisbane, this is the one for you.

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

Nett: $143,386

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LOCATION, ELEGANCE AND QUALITY Magnificent building in the heart of the entertainment and restaurant hub of downtown South Townsville. Only 8 years old and every apartment has views of the marina and the ocean. Secure access to both the building and the car parking. The manager’s apartment is completely separate from the office. Building is not difficult to maintain with all equipment supplied by the body corporate.

Wayne Holmes 0417 074 989 – wayneh@raas.com.au

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The legal stuff...

The views and images expressed in Resort News do not necessarily reflect the views of the publisher. 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. We recommend professional advice is sought before making important business decisions.

Inside the December issue

Advertising Conditions

EDITOR Trish Riley, editor@accomnews.com.au

Be a trapeze artist…

Industry

News In Brief

Disclaimer

PO Box 1080, Noosaville BC, Queensland, Australia 4566 Phone: (07) 5440 5322 Fax: (07) 5604 1680 mail@accomnews.com.au www.accomnews.com.au

Feedback 06

The publisher reserves the right to refuse to publish or to republish without any explanation for such action. The publisher, it’s employees and agents will endeavour to place and reproduce advertisements as requested but takes no responsibility for omission, delay, error in transmission, production deficiency, alteration of misplacement. The advertiser must notify the publisher of any errors as soon as they appear, otherwise the publisher accepts no responsibility for republishing such advertisements. If advertising copy does not arrive by the copy deadline the publisher reserves the right to repeat existing material. 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 fact check 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. 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. Advertisers and Advertising Agents warrant to the publisher that any advertising material placed 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 Consumer Guarantees Act or other laws, regulations or statutes. Moreover, advertisers or advertising agents 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. © 2018-19 Multimedia Pty Ltd. It is an infringement of copyright to reproduce in any way all or part of this publication without the written consent of the publisher.

Front Desk

14 32

It all begins (and ends) with you…

Real estate and the saleability of your rights

Body corporate asset acquisition: Know the rules

Consult for future’s sake

David Ruxton: pioneer & provocateur - The history of management rights (Part 1)

Management

New legal rights for casual employees Fringe Benefits Tax: the hidden cost

Resistance is useless

Motel market continues to strengthen

The insurance pitfall of Airbnb: who is responsible?

By-Law barrier to rental reforms

For better or for worse…

Ten years ago…

Bathrooms: it’s often the smallest rooms that matter most

Tourism

Minimalist travellers - find gold on the side of the road

Events & Appointments

Closing the year in style

STAFF WRITERS Rosie Clarke Mandy Clarke

SCA Life Memberships

Queensland Tourism honours its best

DESIGN & PRODUCTION Richard McGill, production@accomnews.com.au

Developments

ADVERTISING Stewart Shimmin, advertising@accomnews.com.au SUBSCRIPTIONS Gavin Bill, subscriptions@accomnews.com.au CONTRIBUTORS Simon Barnard, Arvo Elias, Sharon Fox-Slater, Jonathan Hanaghan, Chris Irons, Grant Mifsud, Andrew Morgan, Col Myers, Tom O’Connor, Mike Phipps and Trevor Rawnsley.

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 commercially funded advertorial but may be included as relevant opinion. Happy reading!

The Last Resort: Living on The Edge

Property

New Managers Resort News Sales Report

November proves another period of growth for AccomProperties 42

KEY Commercially funded supplier profile or supplier case study

News 36

58 FRONT DESK

Property market sizzles on the Sunshine Coast

Profiles

Joanne Apartments: making it personal Emerald Sands: A hidden treasure

The Preferred Supplier Directory

ResortNews | December, 2018

Be a trapeze artist… Another year has passed – in some ways too quickly and in other ways too slowly.

undergoing a well-earned refresh. Watch this space as we update formats and opinions. While we will continue to innovate and lead the industry into the next phase, we hope that you will enjoy our new direction and look forward to having your feedback.

Fortunately, the Resort News (Multimedia Publishing) family has shared in more highs than lows. Among the highs for the team this year is the diversification and growth of the sectors we are privileged to be a part of. Accommodation, hospitality, tourism and education are all exceptionally strong sectors, commanding regular reviews, government support and the constant forward momentum of improvement. Of particular note (and pride), is the significant increase in the phenomenal growth being achieved by the AccomProperties accommodation business opportunities listings portal, eclipsing expectations month after month.

Trish Riley, Editor

editor@accomnews.com.au

With website metrics soaring to new levels including engagement, time onsite and session durations it appears the combination of high-quality content, cutting-edge digital marketing and listening to our commercial partners and their needs, is paying dividends. After 23 years, testimony to the fact that our content continues to be relevant and our contributors respected, our stable of publications are

The end of the year is prime time to reflect about the years gone by, the one we’re just about to leave and the one we’re heading into and while I’m being introspective, I am reminded of something my grandmother used to say: “In order to embrace the new, we must release the old. A trapeze artist cannot swing from one bar to another without letting go.” An important part of preparing for the New Year is to review the past year—to release it—and to learn from it. Change is inevitable and constant, particularly in an industry as dynamic and evolutionary as ours, but all too often the desire to weigh up

every scenario before making a decision leads to inaction, and before you know it the opportunity has come and gone. In most situations it’s safe to say one should consult quickly (and confidently) with the appropriate advisors, decide on the course of action required, and then move forward. Be a trapeze artist. To gear up and recharge our batteries for the exciting times that lie ahead in 2019, the Multimedia team will be going on a well-deserved break for the festive season and this will be the last edition for this year. We wish our readers and advertisers a joyful Christmas and a prosperous New Year. May the blessings be in those that are standing with you around the Christmas tree, rather than what is under it. We will be back in January, enjoy reading this issue.

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December, 2018 | ResortNews

hotelinteriors.com.au • 1300 876 055 FRONT DESK

Feedback Feedback on the recent article about the Airbnb response to a proposal by Australian Hotels Association to curbs short lets in Western Australia have been diverse to say the least: “The Australian Hotels Association WA wants to ban holiday homes, ban holidays less than two weeks long, and ban almost all home sharing in Western Australia outright. At a time when WA’s tourism is the worst performing state in the country, it is the policy equivalent of pouring petrol on a fire. The Airbnb modelling shows this policy would have devastating consequences for the local community and small businesses. Under the AHA extreme plan approximately 95 percent of trips on Airbnb in Western Australia would be banned and the community would be cut by more than a third, local hosts – mums and dads, seniors – will lose more than $25 million in income.” – Brent Thomas “Would Mr. Thomas of Airbnb have any objection to those 239,000 nights he has quoted as “otherwise lost” to WA going instead to licensed and regulated accommodation facilities in those same destinations?

Have your say? 06

The effort must continue and all states and hotel associations should come together and use their influence but with one voice. – Nick Israel While the AHA have expressed concern about how little thought might have gone into protecting those SMEs who have cooperated with the regulatory environment in place, and those required to comply with qualified standards, in the face of this new competition that has been widely encouraged by Airbnb and its own like competitors around the world, this exchange might be best heard if both sides faced each other and those responsible for monitoring the licensed accommodation industry were better and more regularly informed.

corporate citizen and addressed the current conflicting issues instead of coming into the fray like technological interlopers, and thinking they can bypass the regulatory and compliance protocols then perhaps the outcome would be different. The only curb I see is a strong down turn in Airbnb’s turnover if they are blocked by the justified fight of the AHA WA .

– Kevin B Murphy, ISHC

If the regulatory bodies and government, who by the way didn’t see the Airbnb juggernaut landing due to possible ignorance or a how nice attitude (wow technology must be good), received good advice and a better understanding of the ramification for their lack of decision making and ignorance re the impact, then the right balance would have been implemented and that level playing field would have created a win-win scenario for all concerned.

“Let’s face it if Airbnb had entered the market like a good

The effort must continue and all states and hotel associations

Grandstanding with competing press releases won’t solve the problem as it has been described but possibly lead to unsatisfactory and irregular legislation that will please neither side in this debate.”

should come together and use their influence but with one voice. Also, if Airbnb is not regulated or made compliant this will set a precedent for current legal operators to bend the rules and not comply as they see fit…” – Nick Israel “I thought that when I complied with local council laws and requirements and paid the fees and contributions that I was actually protecting my business, perhaps I should have set up shop as a banker next door to the big four or maybe sold tobacco on the street. Would this situation have been allowed if it was anything else, or is the little law-abiding accommodation business obviously not important enough, or have the same rights as other businesses. With so many small accommodation businesses folding it is definitely having a detrimental effect. It is hard to compete with people that have no costs, and we cannot compete with cheaper rooms. Surely these people could apply as registered ‘bed and breakfasts’ to put us on the same level playing field.” – Linda “It goes to show who the vested interest is. Level up the playing field. How many of these properties have the correct insurance for a start? – John

Submit your feedback to editor@accomnews.com.au – It always helps to talk about it! FRONT DESK

ResortNews | December, 2018

More detail required about impact of negative gearing

Bargains set to hit the market in wake of royal commission New research has determined twothirds of property experts believe the current banking royal commission will bring down property prices through even tighter lending practices.

Newspoll results on the federal opposition’s proposed changes to negative gearing for property underscores the need for more details about their impact on the Australian economy and households. According to Newspoll, 32 percent of Australians think the policy change will lead to a substantial fall in property prices, while 42 percent think prices will come down ‘a little’. 36 percent of respondents thought renting would become more expensive, while only 33 percent thought housing would be more affordable for first home buyers. “This policy proposal could impact on housing markets and the financial well-being of millions of Australians,” said Ken

Morrison, chief executive of the Property Council of Australia. “Property investors are not rich ‘property barons’. The overwhelming majority of property investors are everyday Australians on modest incomes. “71 percent own just one investment property, and a further 19 percent have just two properties.

Of those surveyed, 55 percent predicted a price fall within the next six months, 41 percent said they saw prices remaining stable, while only four percent believe prices will rise. Peter Maloney, CEO of GlobalX, said the banking royal commission would have an impact on property prices in a number of ways, with the most probable being a further tightening of credit policies from banks.

What about the impact on the one-third of Australian households who rent? What happens if there are fewer investors in property and less supply for the rental market?

However, this impact will not be felt until at least six months after the royal commission releases its findings, and potentially even years later, he said.

“Property investors play an essential role in providing housing choice for Australians, and the opposition’s planned changes to negative gearing and capital gains tax raise several questions for which there are currently few satisfactory answers.”

“We can say however that it’s important to be aware that if you are purchasing or selling a property, you are likely to be indirectly impacted by the royal commission, even

if you are aren’t directly affected by changes to lending practices or laws,” Mr Maloney said. “We are already seeing the effects of tighter credit with national housing prices falling by 4.6 percent, with Australia’s two largest cities experiencing the biggest falls.” Mr Maloney said before the royal commission, banks would typically use the household expenditure measure to determine if borrows could pay back a loan. As a result of the royal commission, the accuracy of the household expenditure measure has been questioned, and loans have been given out to people who may not be able to repay them. Because of these concerns, Mr Maloney said banks are changing their lending policies and increasing the already placed restrictions on lending. “With fewer buyers in the market, there are fewer properties being sold and less demand for properties; therefore, the supply and demand balance is tipped in favour of buyers, rather than vendors.” – SmartPropertyInvestment

Real estate agent faces two years imprisonment over trust account fraud A former Maroubra real estate agent who misused more than $425,000 that was held in trust has been penalised after being convicted in Parramatta local court. Minister for Better Regulation Matt Kean said the perpetrator December, 2018 | ResortNews

was sentenced to two years’ imprisonment to be served by way of an intensive correction order. “This is another example of a real estate agent abusing their position, and accessing money that isn’t theirs,” Mr Kean said. “The agent made transfers after selling seven properties in 2014, but the trust account withdrawals had no connection to the sale of

the properties, and he was not authorised to release the sales deposits prior to settlement.” Mr Kean said the case was further evidence of why an industrycontrolled regulator, as demanded by REINSW, is not a practical or sensible proposal. “There are many honest and hard-working real estate agents, but the industry has been given a bad

INDUSTRY

name by agents like this, who do the wrong thing,” Mr Kean said. “Enforcement outcomes like this clearly demonstrate why the industry should not regulate or govern itself. “The role of Fair Trading to help create, monitor and enforce the law and real estate codes is essential.”

Migration cuts set to impact property market Top property industry bosses hold opposing views to the prime minister’s recently announced plan to reduce Australia’s migration intake, but they are unanimous in seeing a knock-on impact to dynamics of supply and demand.

“Governments should be cautious of thinking that migration and investment can be switched on and off.”

Prime minister Scott Morrison’s recent announcement of cutting back Australia’s migration intake, particularly in capital cities, has property industry experts concerned.

“The state and territory governments need be part of the conversation through COAG given the critical role they play in delivering essential services and infrastructure.

Tim Reardon, principal economist of the HIA said the government should avoid “whiplash changes” to migration strategies, as it could affect the economy harshly. “The economic growth over the past decade has been built on the back of strong growth in

Meanwhile, policies that will impact on how our capital cities will grow should not be just the decision of federal government but should also include the state and territory-based governments, said Ken Morrison, CEO of the Property Council of Australia.

skilled migration,” Mr Reardon said. “A dramatic change in migration intake can create economic shocks to industries, including the building industry.”

likely to continue as Australia becomes a less attractive destination for skilled migrants compared with other developed economies,” Mr Reardon said.

In order to have a solid migration policy, Mr Reardon said governments need to have a “stable, well-rounded migration intake”. “The population growth rate has been slowing for the past 18 months and is

“Tighter visa requirements and punitive taxation regimes imposed on foreign investors last year are continuing to shift migration and investment away from Australia, toward our major trading partners.

“A growing population is an overwhelming economic and social benefit for Australia and we should be ambitious in our planning for it. “Immigration doesn’t create bad planning: bad planning creates bad planning.”

How the world plans to tame Airbnb Hotel chiefs and city planners met recently to discuss how to regulate Airbnb-style platforms.

Different authorities around the world have reacted to Airbnb-style platforms with widely varying levels of stringency.

Representatives from Australia, the US, Canada, France, Spain, the UK, Ireland, Italy, Denmark, Japan, Colombia, Ecuador and Argentina met in New York to discuss strategies for dealing with Airbnb-style lets moving forward.

While the City of New York is acknowledged as one of the toughest, and is currently embroiled in a legal battle with Airbnb and HomeAway over a law demanding the short-let platforms reveal the personal details of hosts for accountability purposes, Melbourne, has been heavily criticised by the hotel lobby for the laxness of its legislation on Airbnbstyle rentals, which entirely fails to regulate standalone houses despite a spate of violent brawls at upmarket homes rented as party pads.

The home-share giant and its imitators have been blamed by jurisdictions across the globe for exacerbating housing shortages, damaging communities by squeezing out long-term tenants as well as contributing to anti-social guest behaviour through badly-regulated bookings. Industry players claim the lack of a level playing field for unregulated short-lets and traditional providers

is disadvantaging the accommodation sector, even as a growing number of hotels choose to list with Airbnb.

News, “Twenty-first-century problems require complex solutions, and global issues require global dialogue.

The consensus is, that while regulation ultimately falls to local authorities, exchanging experiences to better understand the global picture is important.

“Lots of cities around the world are trying to figure out how to deal with short-term rentals, and it’s important to have an international exchange of ideas as we try to deal with this issue thoughtfully.”

New York City Council speaker Corey Johnson told BuzzFeed

INDUSTRY

“After years of fighting, the reality is that both parties need resolution. For our part, we are more than willing to come to the table”.

ResortNews | December, 2018

It all begins (and ends) with you… Company valuation or in ARAMAs case, association value has two parts: tangible value, like cash flow and earnings, and intangible value. Intangible value is based on the market’s (or member’s) perception of whether the organisation is likely to keep its promises about future activities and growth. And over the last 20 years, intangible value has grown as a percent of total market valuation. When contemplating the power of intangibles, the tough part is figuring out what we can and should do to create intangible value, and then how to make intangibles tangible. As the peak body for resident managers nationwide, ARAMA promotes the concept of owner operated management rights as the most effective method of serving the interests of unit owners, bodies corporate, tourists and tenants nationally, and in order to do this we provide the necessary networking, education, advocacy and representation required for all members involved in multi-unit living, particularly with regard to the protection of management rights. In terms of advocacy, it feels like many of the issues we have represented our members on have been constants over the decade. New legislation and changes in government have necessitated that we represent the industry on matters like contract terms, OTAs, licensing, short-stays regulation and now rental reforms. Over the years, the nuances of the conversations have changed but their importance to our industry has not, in terms of getting on with the job of developing management rights and enabling our members to get on with their businesses. Our advocacy work might not be a key motivator to becoming a member for some, but without it the ramifications for the industry December, 2018 | ResortNews

Our advocacy work might not be a key motivator to becoming a member for some, but without it the ramifications for the industry would be far reaching

Trevor Rawnsley, CEO, ARAMA

would be far reaching. It takes some special skills and many man-hours to digest legislation and its potential impact for our members at the coalface of managing a building. Government policies can seem abstract to members until those decisions add thousands in costs, blow out contract timeframes or leave them unprotected legally. It is then the true value of our advocacy efforts come to the fore.

ARAMA needs to be supported by current trends and new ideas, and the best people to provide that input are the members. Change is inevitable and constant, and in this, my last report for 2018, I want to encourage all members to think about what you want and need from your association,

what additional ‘value’ we can put into motion in the months and years ahead to ensure that the organisation stays relevant, and in fact, evolves as it needs to. It is important to remember that a strong association will invariably provide a sustainable industry.

Another way we serve is through professional development training, workshops and via a comprehensive web-based resource hub. We have access to an advisory panel and board members made up of industry leaders who give of their time and expertise on an ongoing basis to ensure our members have the information that enables them to respond to changing regulations and market conditions. Networking and training have been at the heart of what associations have offered members for as long as there have been associations, and in the early days, our focus was almost entirely on networking, education, discussing new trends and carrying out informal research in order to be able to respond timeously. Today, while these aspects are still primary functions, a disproportionate amount of time has to be devoted to responding to a constant raft of policy changes, and I have to remind myself of the benefit that informal benchmarking provides even when it occurs over a coffee or at social gatherings during an event.

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

INDUSTRY

Real estate and the saleability of your rights The eastern states have experienced substantial increases in the value of real estate over the last couple of years. This increase in property values however, is not such a great thing when it comes to selling your management rights. The value of manager’s residential units in some areas (particularly those close to the beach or in the Sydney area) has increased to such an extent that it is becoming a liability to the saleability.

The problem When investors look at purchasing management rights, they look at the total cost of the acquisition: for example, the cost of the business plus the cost of the residence/office. Where real estate values have escalated substantially, the net return on the total investment can be significantly reduced and the proposed purchase is not as attractive as it is otherwise would have been. Some management rights brokers have reported occasions recently where this reduced rate of return has

severed from the management rights. In the Sydney area however, many (if not most) of the reception/offices are held as separate freehold lots. Consequently, designated manager’s residential units are irrelevant to the operation of the management rights. It is these types of complexes where there are some real options available.

Col Myers,

Options

Small Myers Hughes

led buyers to look elsewhere for businesses whilst they chase a better rate of return. Leasehold motels is a classic alternative – with no owners corporation to deal with, no real estate to purchase, no real estate licences and trust accounts required, a residence still on-site and long-term security of tenure.

Minimise the problem Unfortunately, options may be limited. If the reception/office is part of the title to your residential unit (or is an exclusive use allocation attaching to your residential unit) then you have no flexibility. The unit cannot be

Your options are twofold: If the owners corporation will allow it, sever the management unit completely from the management rights so that the management rights are attached only to the office lot; or sever the existing management unit from the management rights but provide that the manager must still reside in the complex.By doing this, the manager has the flexibility of either buying a cheaper (say) one-bedroom unit in the complex, or renting a two- or three-bedroom unit.

So what’s the better option? I remain a firm believer that managers should at least

INDUSTRY

reside in the complex they manage. It is difficult to argue that owners’ corporations should pay managers a caretaking fee (which may be substantially in excess of what independent tradespersons may charge for the same work) if the manager is not living on-site and effectively on call 24/7 in the case of an emergency. This is the ultimate (and unarguable) difference between on-site managers and owner corporation employed tradespersons. As long as the manager resides in a unit in the complex, ownership of a unit should be irrelevant to the owners corporation.

Issues to consider There are a couple of issues to consider. Firstly, one of the prerequisites to obtain an onsite residential property manager’s licence in New South Wales is that the licensee’s principal place of residence must be situated in the complex and the licensee owns that principal place of residence. This licence, however, will soon become obsolete when changes are made to the licencing ResortNews | December, 2018

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legislation. I have previously expressed the view that onsite residential property managers should, in time, upgrade their licenses to full real estate agent licences as it creates all sorts of flexibility from the manager’s point of view. It also gives the manager a potential new income stream in respect to selling lots in the complex. This process is not overly complex or time-consuming and will soon become mandated.

to the nominated manager’s residential lot and again substitute a reference to “any lot occupied by the manager from time to time”.

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Conclusion Managers should consider their options as far as severing expensive residential management units from the management rights documentation and thereby provide greater flexibility moving forward. This flexibility will make a future sale of the management rights more attractive in the marketplace.

Secondly, a change may be required to the by-laws so as to delete reference to the particular nominated manager’s residential lot and to substitute a reference to “any lot occupied by the manager from time to time”.

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Thirdly, the caretaking agreement will also need to be varied to delete reference

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INDUSTRY

Body corporate asset acquisition:

Know the rules For the purposes of the Body Corporate and Community Management Act 1997 (the Act), a body corporate can acquire an asset in the same way an individual can acquire an asset. What, then, do we mean by body corporate assets, and what are the responsibilities of the body corporate in relation to their assets? Section 11 of the Act provides that body corporate assets “are items of real or personal property acquired by the body corporate, other than property that is incorporated into and becomes part of the common property”. On this latter point, the Act gives an example of an air-conditioning unit which might be bought by the body corporate as a body corporate asset, but then becomes common property when it is installed as a fixture. Section 45(3) of the Act then provides that a body corporate may dispose of a body corporate asset, although it must not (except to the extent permitted under a regulation module) mortgage, or otherwise create a charge over, the asset. Section 157 of the Act further provides that the relevant Regulation Module may provide for how disposal is to occur.

The requirements around disposal of assets reflect the requirements to acquire them, namely: • selling or otherwise disposing of a body corporate asset that is freehold land, or a leasehold interest in freehold land: resolution without dissent;

Chris Irons, Commissioner, Body Corporate & Community Management

concession related to land or other personal property. In all of these instances, the acquisition is for “the general use and enjoyment of the owners and occupiers of lots included in the scheme”. • Requirements to acquire: the requirements are — o For acquiring freehold land or a lease of more than three years: resolution without dissent; and o For entering into a lease of three years or less, or a licence, concession or agreement, or acquiring personal property where the value of the property to be acquired is more than the greater of $1,000 or multiplying the number of lots included in the scheme by $200: a special resolution.

• granting or amending a lease over a body corporate asset that is freehold land, or another body corporate asset capable of being leased: o If the term of the lease, as granted or as amended, is more than three years: resolution without dissent. Otherwise, a special resolution applies; • selling or otherwise disposing of a body corporate asset that is personal property including a licence or concession related to freehold land, if the market value of the asset is more than the greater of $1,000 or multiplying the number of lots included in the community titles scheme by $200: special resolution. Further requirements are that the body corporate must insure its assets to full replacement value (Standard Module, section 178(1) (b)) and must keep a register of its assets (Standard Module, section 197). The register must include all assets more than $1,000 in value and include the following details: • a brief description of the asset

• whether the asset was purchased or was a gift • when the asset became an asset • if purchased, how much the asset cost and the name and address of the person from whom the asset was purchased • if the asset was a gift, the estimated value of the gift and the name and address of the gift’s donor. This register forms part of the body corporate’s records and, as such, can be accessed by an “interested person”. If you are reading this information about assets and thinking that it all sounds convoluted and complicated, remember that the body corporate has a duty to act reasonably and this duty extends to the way in which it acquires, maintains and disposes of assets. Keep in mind also that assets are for the benefit of all owners (and occupiers) and so for this reason alone, it is important that there be appropriate transparency and detail about the assets. If a body corporate has questions about the legal or financial implications of its assets and how they are acquired, maintained or disposed of, I would recommend it seek appropriately qualified advice on these topics.

I will refer to the Body Corporate and Community Management (Standard Module) Regulation 2008 (the Standard Module), so please refer to the relevant provisions of other Regulation Modules if they apply to you. Part 3 of the Standard Module sets out requirements for body corporate assets, which I have summarised as follows: • Maintenance: the body corporate must maintain its assets in good condition (note that “good condition” is not defined). • Types of asset acquisition: the body corporate may acquire freehold land, leasehold interest in freehold and, acquire (or surrender) a licence or

INDUSTRY

ResortNews | December, 2018

Consult for future’s sake For those outside the strata community, the complex system of by-laws, committee meetings, adjudications, and even the Body Corporate and Community Management Act (BCCMA) itself can prove to be quite baﬄing. It’s the reason why SCA (Qld) places such emphasis on members undertaking continuing professional development classes to stay current with legislative changes, best practice, and adjudications. With experts predicting that 50 percent of Australia’s population will reside in strata by 2030, current laws and proposed reforms will have a drastic impact on our state’s future living standards. Currently though, more Australians reside in detached houses and other nonstrata dwellings, so new legislative proposals are often created with this segment of the population in mind. Unfortunately, this approach paints all dwellings with the same brush and does not take into account the different types of home ownership and their diverse needs. There are two such reforms being investigated by the Queensland Government at the moment; ‘Open Doors to Renting Reform’ and the ‘Accessible Housing Options Paper’. Firstly, I’d like to applaud the government for taking proactive steps in both of these cases. Better protections and conditions for landlords and tenants is a positive measure that I wholeheartedly support, as is the re-assessment of accessibility standards. However, any additional legislation or reforms must be well-considered and take the BCCMA and the unique requirements of the strata community into account. December, 2018 | ResortNews

Simon Barnard, President, SCA, Qld

When discussing a detached house, the components of a rental relationship include the tenant, the landlord, and sometimes an agent. However, in the strata community, the body corporate must also be taken into consideration, as the tenant will have access to common property and be subject to the scheme’s by-laws. In contrast to detached houses, it is the body corporate who is the faction that will decide many aspects of tenants’ rental conditions, with by-laws unable to be overruled by the landlord. For example, even if a tenant receives approval from the landlord to behave in a manner that breaches the BCCMA or the recorded by-laws applicable to the scheme, the tenant is de facto not able to exercise the right granted by the lot owner. The unique structure of the BCCMA and subsequently, the unique way of administering strata schemes has the overarching intention of allowing each person to exercise their rights within the boundaries of community living. Owner occupiers and investment owners have a vested interest in the units they own and they have to abide by the rules that the body corporate has made. Conversely, a tenant does not have decision making powers under the BCCMA and nor should they, given their lack of long-term interest in the asset.

the country’s aging population needs to be protected and supported with housing viewed in a 20- to 50-year context. I also agree that more developments should consider ageing options and accessibility issues when planning schemes. However, I don’t believe that there should be a blanket requirement for all properties to meet these standards as it is not feasible for every residential strata community. Many of the issues raised in the paper would affect common property areas. There is definitely scope for greater clarity of requirements, as the current system can leave bodies corporate confused, for example while it is currently not required that common property on private residential land has handrails, third parties such as safety inspectors often

recommend the installation of such. It would be of great benefit to private residential lots if features that improve the safety of residents are considered at the time of construction. It is this type of strata-specific guidance that these papers are sometimes lacking. Writing legislation and proposing reforms must be an incredibly challenging and difficult undertaking. These two papers prove the necessity of the consultation process and importance of stakeholder feedback and as the peak industry body, SCA (Qld) will continue to represent the community, and use our expertise to ensure that the strata residents of the future do not rue the actions of the current legislators.

Over 40 years of service to the Management Rights industry, providing assistance in:

The ‘Accessible Housing Options Paper’ also presents some areas of concern for the strata community. I agree that INDUSTRY

Aerial View of Surfers Paradise, 1960s

David Ruxton:

pioneer & provocateur The history of management rights (Part 1) Necessity, they say, is the mother of all invention and it appears that management rights - the revolutionary accommodation concept that started on the Gold Coast more than fifty years ago developed simply to address a need amidst trying circumstances. Today however, the business of management rights generates hundreds of millions of dollars in revenue annually, making it a major economic contributor to Australia’s dynamic tourism sector. To explore the evolution of the management rights model – its origins, development and more importantly, to acknowledge the

key stakeholders of the pioneering industry, Resort News spoke with a number of influencers about their experiences including David Ruxton, intrepid entrepreneur, stalwart and passionate industry advocate - even after fifty years. This feature reveals the practical nature of the work undertaken and speaks to the commitment of the Gold Coast pioneers who helped structure an orderly industry amidst a diverse and complex environment. Qualified as a builder, David’s illustrious career began in 1962 when following advice to buy property no further than two streets either side of Cavill Avenue in Surfers Paradise, he purchased 16 perch blocks on the Esplanade for 5250.00 Pounds. Envisioning the beginning of a property empire,

he then built Whitton Court - a three-story block of ten units on the land and gave the property to real estate agents to rent out. David had tenants, but only the occasional one every second or third week and he quickly realised that his vision could be some way off and that his bank debt was climbing. Having no other option, David moved to the Gold Coast from Brisbane to live onsite, and to determine a way of getting holiday makers into his property. In the late 60s, when the population of the Gold Coast was approximately 36,000, there was no strata title or even company title. All properties were individually owned and most were motel-type accommodation. David’s units had been built to serve as stand-alone units

INDUSTRY

with built-in kitchens and his accommodation was sold to the general public at a ‘per week’ price plus hired linen and a television if required. The drive market would often bring their own sheets and some would even bring their little black and white TVs in the boot of the car but understanding intrinsically that he needed to consistently offer more, David recalls having a gold phone installed in the ground floor carpark so tenants could have the use of a phone. In 1960, the first high-rise unit building was completed, setting a trend in apartment development that has continued unabated to this day, providing the city with a vast supply of holiday accommodation, and according to John Punch, legal specialist in management rights and partner in ResortNews | December, 2018

SP&G Lawyers, there are now some 35,000 lots under management rights across the city and approximately 150,000 nationally. One of the earliest of these buildings was The Sands, developed by Alex Armstrong between The Esplanade and Orchid Avenue in Surfers Paradise. In 1965, Armstrong proposed to Tony Holmshaw of Courtesy Inns, that he buy what he termed the “management rights” to The Sands and operate it like a motel. The prospect of dealing with 100 separate far-flung unit owners would have seemed daunting to say the least in the pre-internet days, but according to Gold Coast historian Alex McRobbie, a deal was struck and what came out of that transaction changed history. It took Tony a full 12 months to contact all the owners and sign them up to a letting agreement, McRobbie wrote in his book 20th Century Gold Coast People. It wasn’t the kind of job that could be done by phone so Tony flew all over Australia and to New Guinea selling owners on the idea. By the time the building opened on December 5, 1966 only one owner had not joined the scheme. At that time, with the reputation of being an ‘accommodation specialist’ David Ruxton was asked by the manager of The Sands if he would caretake the 99-unit property while he was away for three months. David remembers the undertaking as providing good experience and paying well, and when the manager returned only to resign, David was asked by Tony if he would continue on as manager as well as take on the ‘marketing’ of Paradise Island Resort (the old one) and the Courtesy Inn in Suva, Fĳi. And market he did. For almost a year, David invited travel agents to Surfers Paradise to stay free of charge for the weekend in return for referrals and bookings. The properties excelled and within ten months The Sands was sold to Kerry Packer of Consolidated Press and David went with the transaction.

1965: Kinkabool, Hanlan Street

corporate, Tony deftly negotiated a management contract of 99 years for the two units that bordered the walkway between the entry and the lifts and redesigned them as a reception on one side and a restaurant on the other. This was a brand-new concept. In later buildings, the office/ reception was always included as part of the title of the manager’s lot.

Unfortunately, after a relatively short period of time it became apparent that the stakeholders in The Sands had conflicting visions for the property, with Packer wanting to demolish it and replace it with a 5-star building over which he could retain the rights.

Developers saw a double benefit in setting them up securely legally as absentee buyers could be encouraged to buy ‘off the plan’ knowing that there would be onsite management, and an added item to sell to a manager.

The debate was lengthy and when construction never eventuated, Consolidated Press sold their interests in the property. Shortly thereafter, the Graham family, who owned the El Dorado Motel at the southern gateway to Surfers, introduced a slightly different style of accommodation management through their Quality Inns Group. The system was based on unit owners leasing their property back to the operating company for an agreed period and being paid a dividend – this style of management didn’t endure.

David Ruxton

Consolidated Press owned over 40 units in The Sands and had over 50 percent of the units of entitlement: and management rights took another step forward. It was the true genesis of management rights in Australia, John Punch said.

“Working for Kerry Packer for two years was an experience,” remembers David. “More important however, was how Tony transfigured the industry.” Registered as a strata title whereby owners held shares in the building – with a body December, 2018 | ResortNews

INDUSTRY

Left to right: The late Peter Hughes with Dave Ruxton and Frank Piccone

1970: The interior of The Sands

Out of the necessity imposed by having so many absentee unit buyers, management rights developed rapidly and very successfully, to serve the needs of both short- and long-term residents, as well as unit owners. During this time, the block of land next to Whitton Court became available and David purchased it for 40 thousand dollars - the highest price for beach front property at that time - and built another eight units. The new property was called Beach Way, which has subsequently been replaced by The Moroccan Resort. In 1968, David joined the local Accommodation Owners Association (AOA) in the hope of finding a way to entice visitors to his property, and when the secretary sold his motel after 12 months he was asked to take on the position. The following year, when the chairman of the Association sold his motel, David was then asked to fill that role so from 1970 to 1989 David led the association as vice-president and president.

helping the blind, guiding at-risk youth and housing the elderly, but in 1967, with the slogan "Think Big, Vote Small", he was elected mayor of the Gold Coast, holding office till 1973. Sir Small was an immensely popular mayor and was knighted in 1974. He was then re-elected from 1976 to 1978. He was also elected a life member of the AOA due to his tireless support of the association and contribution to the industry. Like many politicians during this period, a time prior to the existence of conflict of interest laws, he saw no conflict between his duties as mayor and his opportunities as a property developer. Sir Bruce was an avid promoter of the Gold Coast both nationally and internationally, and after a season of cyclonic storms that battered the Gold Coast in 1967, Small was instrumental in promoting the Gold Coast as a family holiday destination through widespread

appearances and promotions of the Surfers Paradise Meter Maids. With his trained poodle Mimi and a group of meter maids in tow — he toured Australia, New Zealand, the Philippines, Hong Kong, Japan and Singapore spruiking his city. David remembers Sir Bruce as being a real professional when it came to promotion. “I remember calling him at one stage and asking for an audience, he agreed right away. I went up to the council office and after listening to the problems being experienced by AOA members and accommodation operators at large, he told me the towns he was visiting and when. David followed the promotional tour one week later and by the time he returned the first guests were already on site. Within a week he had received enough bookings to pay for the trip. The cost of going away on promotions however, was more than an operator with two or three units could afford, and with

David pays tribute to a number of key players from that time, noticeably the Kelly family who had Tenerife Apartments, Lyall and Gwen Guthridge from Burleigh Beach Towers, Barry Turner, and Rob Burbidge – who went on to become the Premier of Queensland, as well as significant influencers Sir Joh BjelkePeterson and Sir Bruce Small. Sir 'Bruce' had moved to the Gold Coast in 1958 and used his fortune to buy and reclaim more than 200 hectares of land behind Surfers Paradise. He was heavily involved with organisations

Mayor Bruce Small with entrants in the International Air Hostess Quest

INDUSTRY

the Gold Coast going through a particularly hard economic period, many operators were trying to sell their stock due to bank pressures. Unfortunately, the standard practice of smaller operators back then was to sit and wait for somebody to drive in and ask for accommodation, but it was still only a small town and a number of motel and holiday apartment businesses were in jeopardy. As president of the AOA David tried a number of initiatives to generate more interest for these properties including working with various real estate agents, but due to competition and a general lack of trust, the initiative did not get off the ground. In desperation, he went to Melbourne and called on the earliest version of the Queensland government tourist outlet to discuss the concept of an annual booklet featuring the various properties in the association. Produced and funded by the AOA, David proposed that the accommodation books could be distributed to all Queensland government tourist outlets in each State where they were to be handed out to prospective tourists who would then ring or write to the property of choice to make a booking. The initiative was accepted and suddenly Queensland was a destination of interest. While in Melbourne, David also went to the head office of Trans Australia Airlines (TAA) and Ansett Airlines to suggest the development of an innovative ‘flight/accommodation package deal’ and incredulously, they both responded stating that “people who fly are superior to ResortNews | December, 2018

people who drive and that they would never be interested in self-contained accommodation”. He was shown the door. Undaunted, David returned to the coast and set about creating a syndicate of motel members prepared to provide a serviced offering, and he maintained contact with the airlines until they capitulated and agreed to see him again. While interested in the proposal, the airlines insisted on a more formalised approach with regard to the presentation of the accommodation. Participating properties had to agree to provide linen and made-up beds (rather than hiring it to guests) as well as the supply of all cooking utensils and appliances including a television. They also demanded a ten percent commission on all bookings. David agreed immediately and returned to the coast to try and ‘sell’ the concept to the members. Not having enough rooms to fulfil the agreement, David met with all AOA members and ended up with ten member-properties that cautiously agreed to pay the booking commission and to supply all requirements. Three different category rates were developed and ultimately a seven-day package at $21, $28 and $35 per week with inclusions was established. It was risky, particularly paying the ten percent commission, but the group optimistically reasoned that if they could run at a 100 percent occupancy the package would be worthwhile. After three months however, TAA pulled the air package from the market. Realising that there had to be a lack of understanding about the concept, particularly for those agents promoting the offering, David returned to Melbourne to plead his case. After lengthy discussion, he was offered a tenuous lifeline and requested to personally visit the travel agents to explain self-contained accommodation. If he could get the results required within three to four months the airline would retain the package.

and ironically David then had to delay their commencement for two months due to a 12-month exclusivity arrangement made with TAA. Once Ansett was on board however, the bookings soared and when East West Airlines arrived, they too joined the campaign. As the acceptance of the air package grew so did the number of buildings being used. Having started with ten small buildings offering up to eight units per building, the member syndicate eventually had 97 buildings in the scheme and as the years passed the size of the complexes changed to include every highrise on the coast including The Sands, Chateau and Iluka, and the small blocks drifted away. In what was to become the first form of facility rating, the AOA would also convene annually to review the pricing structure and allocate buildings into a suitable price group. They also controlled the approval of all properties wanting to participate in the air packages,

giving them significant influence over the burgeoning industry.

Frank immediately volunteered to give it a try.

Apart from the visitors being flown into the Gold Coast through the air packages, managers were also looking for ways to increase their off-the-street sales to the motorist trade, and the AOA was once again called on to assist.

It was slow at first, but once members realised they could decline a booking but still hold that reservation for another member as well as provide a value-added chauffeur service, the process began to work.

Several meetings were held and during one discussion with Frank Kelly, an AOA committee member, Frank suggested the consideration of a ‘member help member’ scheme whereby if a member’s property was full or they couldn’t provide the services required, then they would be referred to another member bearing the AOA badge.

Over two years the service became the norm and motorists got to recognise the AOA signage on all the buildings and knew to just pull up with the assurance that they would be accommodated in a property of choice, and that they would be driven there.

Simple in concept but harder to implement logistically until it was suggested that perhaps a member with a smaller property, and therefore with more time on his hands, be available to be contactable and to collect the prospective guest and drive them to another AOA property and keep going until that prospect became a guest in an AOA property.

The service became so popular that guests started to ring Frank or his wife personally to book their accommodation so an extra phone was installed at Tenerife flats for Frank and his wife to take the calls and they ended up with three extra staff to manage the enquiries. Frank Kelly continued to offer the voluntary service for two years before receiving an authorised income of ten percent commission.

This he did, and the TAA air package took off.

In the next issue of Resort News, we will look at David’s first management rights, and how the fledgling industry underwent a period of hardship, litigation and legislative development during the 1980s and 1990s to emerge even stronger and primed for further expansion.

Within a short space of time, David received a call from Ansett to say they would now accept the AOA package with immediate effect,

Sources: 20th Century Gold Coast People, Alexander McRobbie, 2000, Catherine Langdon, Resort Brokers Informer, The Australian Financial Review, ARAMA

December, 2018 | ResortNews

INDUSTRY

New legal rights for casual employees Casual employment has become an entrenched feature of the modern Australian workplace. With the increase in the casualisation of the workforce, the Courts and the Fair Work Commission have considered it necessary to establish guidelines and protections for these potentially vulnerable employees. There have been two major developments in 2018. Firstly, in the 2018 Federal Court of Australia decision of WorkPac Pty Ltd v Skene, the Court provided legal clarification in circumstances where a person was described as a casual employee but worked a regular roster set in advance. The Court concluded that such a person was a full-time or permanent part-time employee. As a consequence, any such

Tony O’Connor, Litigation Partner, Short Punch & Greatorix Lawyers

employee was entitled either to protection under an Award or the safety net provisions protecting non-award employees under the National Employment Standards (NES). This means that such employees are entitled to things such as pro-rata annual leave, holiday leave loading, personal leave, redundancy, etc. The essence of the decision of

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

the federal court, was that for an employee to be truly classified as a casual (as distinct from permanent part-time or full-time), the employee must have no settled work pattern and firm advance commitment as to the duration of their employment or the days or hours to be worked. The Court did leave open the question of the capacity of an employer to “set-off” liability for leave and other Award or NES benefits against the casual loading (25 percent), where such loading is expressed in employment arrangements as an identifiable amount. Secondly, the Fair Work Commission has, from July 2017, been examining the necessity for the introduction of a template or “model” casual conversion clause to be inserted into most modern awards. The Fair Work Commission has now resolved the wording to be adopted in the model clause, and this took effect from 1 October 2018. The casual conversion model clause allows employees who have been genuinely employed as casuals for a minimum of 12 months to seek conversion to either permanent part-time or permanent full-time. The important features of the casual conversion clause in the modern awards are as follows: •

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?

there is a requirement on an employer before 1 January 2019 to provide a copy of the new clause to casual employees who were

employed as casuals as at 1 October 2018; •

any casual employees engaged after 1 October 2018 must be provided with a copy of the clause within 12 months of their employment commencing;

•

casual employees must put their request for conversion in writing;

•

the employer must provide a response in writing to the request within 21 days of receiving the request;

•

employers may reject the request if there are reasonable grounds for doing so. Those so-called “reasonable grounds” are set out in the clause. These grounds include the situation where the employee’s position may cease to exist within the next 12 months.

Failure to adhere to lawful obligations in the treatment of casuals can result in the employer: •

facing prosecution and having fines imposed; and/ or

•

being required to reimburse the employee for a significant quantum of back pay and entitlements.

Should you require advice regarding the status of your employees and your lawful obligations, please contact seek appropriate legal advice.

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

MANAGEMENT

ResortNews | December, 2018

Fringe Benefits Tax:

the hidden cost With the festive season kicking off I thought I would discuss some of the fringe benefits tax implications for Christmas parties and staff gifts, and also review some of the common fringe benefits associated with the accommodation industry generally. If you provide certain benefits to your staff, or their associates, you may be up for fringe benefits tax (FBT). It is important to note that the benefit must be as a result of employment and not business ownership, for example, a benefit provided to a shareholder of a private company who is not and never has been an employee or officeholder does not constitute a benefit for fringe benefits tax purposes. This tax is separate to income tax, and is based on a 'taxable value' of the benefits provided, which is calculated according to the categories the benefits fall into. The tax office has even given FBT its own tax year, from April 1 to March 31. The upside for staff is that they do not then have to pay income tax on the value of the benefits, and payment of the FBT is tax deductible to the employer.

Entertainment and gift fringe benefits This is common benefit provided for the typical work Christmas party, usually by way of food, drink or recreation. Generally, the more elaborate the meal and the inclusion of alcohol, the more likely the meal becomes December, 2018 | ResortNews

Jonathan Hanaghan, Director, Jonathan Grant Accountants

entertainment. Also, where the food or drink is provided also effects the classification. Provision of the meals and drink away from your business premises, such as a restaurant, is more likely to be entertainment and subject to fringe benefits tax. One major consideration is the “less than $300” minor benefit exemption and the recently recognised fact that the ATO will accept that different benefits provided (eg gift and Christmas party) at the same time are not added together when applying the threshold. Essentially this means that both the gift and Christmas party entertainment may be exempt from FBT even if provided at the same time, as long as each costs less than $300.

•

any other goods-carrying vehicle with a carrying capacity of less than one tonne, for example a panel van or utility (including four-wheel drive vehicles)

•

any other passenger-carrying vehicle designed to carry fewer than nine passengers.

A car is taken to be available for the private use of an employee if the place of business and residence are the same such as with standard management rights businesses. There are however, some circumstances where use of the car is exempt from FBT. For example, an employee’s private use of a taxi, panel van or utility designed to carry less than one tonne, is exempt from FBT if its private use is limited to: •

travel between home and work

•

incidental travel in the course of performing employment-related travel

•

non-work-related use that is minor, infrequent and irregular (for example, occasional use of the vehicle to remove domestic rubbish).

If a car you own or lease is made available for the private use of your employee, you may provide a car fringe benefit.

The most important message to reduce any potential car FBT is to seek advice from your accountant to see whether it is worth while completing a log book for at least 12 concurrent weeks. This will depend on the value of the car and also the expected business use percentage.

For fringe benefits tax (FBT) purposes, a car is any of the following:

Housing fringe benefits

•

A housing fringe benefit

Car fringe benefits

a sedan or station wagon

MANAGEMENT

may arise when you provide accommodation to your employee rent-free or at a reduced rent where that accommodation is their usual place of residence. A unit of accommodation includes any of the following: •

a house, flat or home unit

•

accommodation in a hotel, motel, guesthouse, bunkhouse or other living quarters

•

a caravan or mobile home

•

accommodation on a ship or other floating structure.

This is a common benefit provided to managers within the accommodation industry. It is clear the ATO do not care that the accommodation may be attached to a busy office that is open seven-days a week with the managers being on call 24-hours a day. The ATO still have an opinion that a housing benefit is being provided. Generally speaking the benefit will be calculated at 75 percent of the market rental for the dwelling in question. For example, if a managers’ unit would ordinarily rent for $400 per week then the annual benefit is calculated at $400 x 52 x 75 percent = $15,600. This amount can be reduced by payments made to the employer by the employee or associate for use of the accommodation. In summary, if you are providing any benefits to employees it is important to seek advice from your accountant as the ATO are reviewing more of these arrangements every year, and as the saying goes… ”there is no such thing as a free lunch”.

Resistance is useless

I hate paperwork. There, I said it! Forms irritate the hell out of me, particularly the ones designed by some genius who never actually fills said form in. Designed by a committee with no thought as to the mental health of the end user. I particularly hate forms that ask me to repeat information or worse, ask me to tell the form provider things they already know. You would think in this day and age forms would be a thing of the past, and we could all just have a thought-reading consciousness chip and authorise those we do business with to access those parts of the brain necessary to retrieve information. Hmmm, maybe not such a great idea. There are certainly parts of my brain I don’t want anyone I do business with to access. Nowhere is the insanity inducing form more prevalent than the Australian banking industry and here’s the thing. My mates in the banking game hate the damn things just as much as we do. The reality is that 90 percent of the forms you need

Mike Phipps, Director, Mike Phipps Finance

to complete when borrowing from a bank are not there because the bank wants them. They exist thanks to a mountain of government legislation, regulation and nanny-state compliance rules. Yep, it’s all about the covering of bottoms, and resistance is useless. The state of banking legislation and compliance standards in Australia right now is such that the consumer is assumed to be uneducated, with little capacity to make any form of intelligent decision. It is true that examples of said consumer have appeared recently before the Banking Royal Commission and it is also true that select

QLD - NSW - VIC - WA

news and current affairs shows seem to attract this type of bank client. The whinging from this minority sector has resulted in the bizarre system that now masquerades as Australian banking industry responsible lending standards. The banks need to prove that they assumed the consumer was incapable and they do this by having you fill in endless forms. They then send you a mountain of paperwork to explain what it is that the completed form has bought you. Consumers need to get used to this state of affairs because it isn’t getting any better! We expect the final recommendations of the Banking Royal Commission to impose further compliance standards on lenders and brokers, and you know what that means… more forms. Interestingly, the form has a natural companion. The hoop. You fill in the form and you jump through the hoop. As brokers we like to think we know all the forms and all the hoops. Sadly, the pace of new hoop production is such that even we are sometimes blindsided mid- leap. Occasionally we find, to our dismay, that the hoop has been set on fire and is tethered over a pit of snakes. We usually clear the obstacles, but you get the picture. Needless to say, all this form filling and hoop jumping wears a bit thin on some borrowers. My advice here is simple. Resistance is useless. Rather than burning emotional energy and time raging against the machine, simply fill in the form and provide the supporting documents we need to get the job done. I feel your pain but make no mistake, resistance is useless.

MANAGEMENT

Of course, what all this formfilling and hoop-jumping often does is distract from the crux of the credit application, what the consumer is trying to achieve, and a sensible assessment of the credit risk involved. There is no doubt that lending compliance is now a huge cost to banks, and with finite resources something’s got to give. The evolution of some small business credit departments staffed by seasoned decision makers with wide ranging authority to cookie cutter processing centres is evident in some banks while others make valiant attempts to retain the high ground. On pricing the cookie cutter will most likely win but here’s the thing. More of our clients are choosing lenders on ease of doing business rather than price. The paperwork and hoopjumping will, in my view, start to play out as a significant market differentiator over the next few years. Banks and brokers who are able to demonstrate a clear pathway through the maze will prosper (no pun intended) while those who allow the process to control the agenda, will not. I am not surprised that we are seeing an increase in borrower frustration but before all fingers are pointed at the banks, better to hold the politicians to account. They make the rules. I will leave you with this quote which I have always liked. It’s not specific to banking but you get the picture I am sure. Misdirected focus on paperwork, on procedures, and on bureaucracy frustrates teachers and fails to give children the education they need, thanks to a mountain of government legislation. ResortNews | December, 2018

Motel market continues to strengthen What a difference a year makes. In the 2017 wrap up I commented that 2017 was similar in many aspects to 2016. This time I am happy to say that 2018 could not have been more different to its predecessor. In summary, 2018 has shot the lights out compared to 2017. Sales volumes are up significantly and 2019 is looking strong going forward. Sale values are improving along with occupancy rates and slowly but surely, room rates throughout the state. The first quarter of this year started out strongly with activity that had been building late in 2017 and the rest of the year continued to follow. The second quarter showed a very strong period of sales and enquiry and the third quarter continued with impressive sales numbers that confirmed an appetite for good quality accommodation businesses. The final quarter of 2018 has seen enquiry levels drop slightly, however genuine buyers are still active with many accommodation businesses across Queensland under contract. Again, as was the case last year, freehold sales have dominated the transactions settled. Solid gains in economic prosperity for areas of the state that had previously been slow have been welcomed. Increasing occupancy rates have resulted and room rates are now under pressure to increase. The redevelopment of sites (and pending future redevelopment), predominantly of older, neglected properties where the highest and best use of the site was no longer the motel, has been occurring, and there will be more to follow where the lack of a capital injection for maintenance will result in the redevelopment of sites. The tourism sector continues to grow, with far north December, 2018 | ResortNews

Andrew Morgan, Motel Broker, Qld Tourism & Hospitality Brokers

Queensland showing good signs of improvement. Last month’s issue of Resort News spotlighted the north Queensland region and showcased some very positive commentary on how the region’s accommodation sector has been faring. The contraction of the resources sector seems to be largely behind the state. Companies have been reporting strong growth, and demand for labour has seen regional towns that were struggling, now having a spring in their step. A clear example of this is Mackay, where the residential rental vacancy rate reached 10.5 percent in 2015/16. It is now down to 1.7 percent which is as low as it has been for the last ten years. Further proof that everything is cyclical - what goes down, must come up! Leasehold motel transactions have been subdued witnessing the lowest amount of sales activity. There is however, always a market for a wellpresented motel business that have good fundamentals, a good client base and is priced correctly. We have noted some improvement in the level of demand for motel leases in the last couple of months. Investors have continued to seek the comfort that freehold motels offer with freehold sales being recorded at all stages throughout the year. Any good quality freehold properties with up-to-date trading data, priced correctly, and presenting well

are selling quickly. An interesting point to note, is that often in times of fluctuating markets buyer demand and confidence can be hit and miss. In contrast to 2016, and to a lesser extent 2017, this year has seen most properties that have gone to contract have reached settlement. Pressure on those buyers from under-bidders has

ensured that special conditions were met on time, or that contracts were entered into on an “unconditional” basis. Cold feet have not been an option. Again, another very positive sign of the market continuing to strengthen. 2019 looks to be very positive for the Queensland accommodation sector.

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© 2018, Resort Publishing. The Relief Management Directory is provided by Resort News to provide CONTACT details only of individuals and organisations promoting services in temporary and permanent management positions. Parties should satisfy themselves as to the competency and suitability of advertisers prior to ordering any services. We accept no responsibility for the standards of service.

MANAGEMENT

The insurance pitfall of Airbnb:

who is responsible? By Sharon Fox-Slater, Managing Director, RentCover

While the Airbnb juggernaut seems to show no signs of slowing, hosts are risking their finances by failing to ensure they have legal liability insurance. The tragic death of a four-yearold boy and the injury of a seven-year-old girl, who were playing on a homemade swing when it toppled down a slope at a property being rented via Airbnb on the Sunshine Coast in September, has raised questions about legal liability associated with Airbnb. The incident shone a spotlight on the insurance gap that exists if the property owner (host) does not have specialist short-term landlord cover. Okay, but:

I have home and contents cover Ordinary owner-occupier insurance is generally insufficient to cover death and injury if the property is being rented – either through a standard lease or via a share accommodation platform like Airbnb. And most home and contents policies stipulate that there

is no legal liability cover if the premises are being used to generate an income – and that includes rent.

notify their insurer if there is any change in circumstances, such as a decision to offer their premises for short-term rental.

If you are intending to use the property for Airbnb, or any form of short-stay, you should ask if your insurer will extend cover but, as most insurers consider this ‘high-risk’, there’s a good chance you’ll be refused.

Failure to notify an insurer of a change in living conditions could be considered a breach of the contract and may void the policy.

I have landlord insurance Typical landlord insurance will only insure stays longer than 90 days and usually requires copies of residential tenancy agreements, which means it won’t cover short-term stays. If you have standard (fixed-term lease) landlord cover, you should confirm with your insurer if it is possible to switch to short-term cover if you want to go down the Airbnb route – it may not be, as not all landlord insurers offer cover for short-stay leases and even if they do, they may specifically exclude Airbnb. By the way: If you think a bit of ‘secret squirrel’ is best and intend to keep your plans to rent the property via Airbnb quiet from your insurer, you should think again. It is a requirement under the Insurance Contracts Act 1984 (Cth) for policyholders to

What about host protection? Relying on Airbnb’s Host Protection Insurance is fraught. Although it offers up to US$1 million in cover “in the event of a third-party claim of bodily injury or property damage” during an Airbnb stay, it generally only applies when the host or landlord has been at fault or been negligent in the circumstances of the injury. In this specific case, there would be a need to prove that the owner of the property was aware, or should have been aware, that the swing posed a risk to children who used it – and in light of that knowledge, that they had failed to repair and maintain the swing or remove it. If it is determined that no-one was at fault, then there would be no compensation payable. If, however, it could be proved that the swing was clearly unsafe and the property owner should have been aware it posed a risk, but still failed to repair or remove it, then the children’s family could

MANAGEMENT

have grounds for a claim against the host.

How can I protect my legal liability? The best way for you as a host/ landlord to protect your legal liability when you rent your property via Airbnb is to have the right landlord insurance. You need a specialist policy that covers the risks associated with short-term leasing – including legal liability – and one which specifically covers renting via share accommodation platforms like Airbnb. You and your agent should reduce the risk of being responsible for damage to property or for compensation for an injured guest by making sure you take steps to avoid any liability in the first place. A key to this is ensuring the property is safe and well-maintained. Despite the best intentions, sometimes things don’t go to plan and you can face a compensation claim from a guest. Having a guest injured or worse on the property is bad enough, finding out that you are legally liable but not insured could be a financial disaster. It pays to make sure that if you’re hitching your wagon to the Airbnb star that you have the right short-term insurance in place. ResortNews | December, 2018

By-Law barrier to rental reforms The Palaszczuk government has undertaken state-wide consultation with landlords and the rental property industry to examine the residential tenancy laws, and while the plans to reform residential tenancy laws seem well-meaning, they could well be futile as most rental properties are in community title schemes governed by bodies corporates. Common sources of stratascheme issues usually involve pets, parking, parties, passive smoking, hanging unsightly laundry from the balcony as well as the behaviour of visitors. The minister for Housing and Public Works, Mick de Brenni, said the consultation will be reviewing a number of issues, including seemingly innocuous items such as pet ownership, and how it could be made easier for landlords and tenants to agree on what is reasonable. But matters such as keeping pets, or even allowing property occupants to change window coverings are often determined by a body corporate committee and their strata scheme’s bylaws. Bodies corporate are like a fourth layer of government with the exception that it’s the unit owners, and not public servants, who make up the committee, and make the majority of decisions. These decisions deal with situations that affect people’s living arrangements and as a December, 2018 | ResortNews

Grant Mifsud, Partner, Archers the Strata Professionals

tenant or owner within a strata property, it’s important to be aware of the things you can and can’t do in your strata scheme. Some bodies corporate have bylaws called prohibitive by-laws that can prevent tenants and owners keeping animals without exception, or prohibit all animals of a particular type, such as cats, dogs, or dogs over 10kg. The committee cannot approve an animal that the by-laws prohibit. Tenants may need to ask the body corporate’s permission to keep an animal on their lot, as long as the by-laws and their tenancy agreement allow it, and if the application for an animal is not successful, one may consider disputing the decision provided one has sought advice on the dispute process through an independent organisation that understands body corporate regulations. Unfortunately, there are many instances of residents breaching by-laws that do not apply to stand-alone houses, and as an owner or tenant in a strata property it’s essential to be familiar with the scheme’s bylaws and to play within the rules to help maintain harmony. MANAGEMENT

For better or for worse… A very happy 20th birthday Google. My apologies but I completely forgot that Google turned 20 a little while ago. Before Google we really only had two search engines of note, Yahoo and AltaVista who were the stars of 1998 search. My personal preference was AltaVista, an engine that ranked my first website as number one and filled the following spaces with more of my pages up to position 16. How I wish I could achieve that today! When Google first arrived on the scene in 1998, the dominant search engines of the time offered a search based on indexes that were curated by humans. Back then, there was even a cottage industry built around submitting new websites to search engines so they would appear in results. Sites were classified and searches took seconds to execute. Google changed all that. They were able to scour the web, which was just 25 million web pages back then, finding content, and creating their own indexes automatically. Sergey Brin and Larry Page completely changed the nature of the web with their tool, but were so unprepared for what was going to happen that they only incorporated their business on 4 September 1998 because an investor gave them a $100,000 cheque and they couldn't deposit it until they created a company.

Electronic Frontier Foundation (1990)

Arvo Elias, Cybercons

years; I do confess that I used a few web facilities to prompt myself a little because my index is also slowly decaying, but these are the websites that shaped the internet - I wonder how many of you will recall:

PizzaNet (1994) In 1994, Pizza Hut's PizzaNet became what is widely credited as the very first place a consumer could purchase a physical product over the World Wide Web. Though this is not strictly true, it was the first major push for an online marketplace and it foreshadowed the era of Seamless. Millions of inebriated people looking at their bank statements the next morning had PizzaNet to thank for their excesses of the night before.

The Electronic Frontier Foundation (EFF) is probably best known for defending digital rights around the world since 1990, but the non-profit's website, and its DeepLinks blog in particular, has also become a tremendous resource. EFF now does everything from publishing investigative journalism to distributing downloadable tools like the Privacy Badger I wrote about a few months ago. A great service that many others could emulate.

Project Gutenberg (1994) With 57,000 public domain titles and counting, Project Gutenberg was the first digital library, offering free e-books online decades before the Kindle Store was even a thought of. And while Google Books has far eclipsed the volunteer-run archive in terms of volume, Project Gutenberg's meticulously assembled texts are generally of much higher quality.

eBay (1995) Plagued by scams over the years, eBay was once famously

New York Times (1996) It's really difficult to name the best, most important, or most influential news website in history. It's hard to even determine what the first news website was, but The Times website has been a reliable place for news since 1996.

Ask Jeeves (1996) Unfortunately, ahead of its time, Ask Jeeves was the original Google. Ask kids these days about Jeeves and they're bound to look at you all with a blank stare. I regret its passing.

Hotmail (1996) One of the first free email services to grace the internet, Microsoft's Hotmail was training wheels for email. It eventually wilted in popularity as competitors like Yahoo and Google released their own and in 2013 it was formally folded into Outlook.

Netflix (1997) We did not know about this service until more recent times but 1997 is when Netflix hit the United States. The streaming service has thoroughly transformed television viewers into binge-watchers to such an extent that "Netflix and chill" has become a halfhearted euphemism for sex. Its streaming catalogue may seem dingy now but we got a few good "Netflix originals" out of it.

I think we would agree the last two decades have also delivered consternation. Google's indexes serve as part of the internet's memory, and like our own memories, it's based on perspective. So, when something happens that generates a lot of interest, it gets a stronger ranking in Google's index, even if that information is wrong.

LinkedIn (2002) LinkedIn continually tries to convince us it's a ‘grown-up’ social media platform aimed at the business world, but it will probably never be anything more than an online resume service to most users and a great resource for networking fiends and scammers..

I tested my own memory on what was on the web and how it grew over those twenty

propped up by the reselling of Beanie Babies, and it helped support PayPal. But eBay has endured scandals, bad press, and unsavoury affiliations because it continues to be really, really good at sourcing obscure items that local shops don't have, at least not at what everyone believes are low prices.

MANAGEMENT

ResortNews | December, 2018

Flickr (2004) Before Facebook and Instagram, Flickr was the place to put your photographs. And today it remains a solid platform for amateur photographers.

Facebook (2004) Few people could have predicted that Facebook, the college directory Mark Zuckerberg started in his dorm room would grow into the international behemoth of a corporation with the power to upend the basic functioning of democracy around the world. This story continues amidst ever growing concern.

YouTube (2005) If you ever tried to find a video of your favourite band or bloopers

I think we would agree the last two decades have also delivered consternation

from your favourite show on the web before YouTube then you understand just how important the site has been to make video content available to anyone with internet. The YouTube of 2018 isn't just about making video more accessible; it's created cottage industries around influencers, given voices to those who had lacked it - sometimes with disastrous results, and taught millions of people how to do things without looking at a manual.

to radical transparency, and political figures embraced it when it benefited them or condemned it when it didn't. Maybe it didn't change journalism but, for better and worse, it changed the world.

Dropbox (2007)

WikiLeaks (2006) Today, WikiLeaks is a shadow of its former self. Its founder's legal problems and an exodus of volunteers mated with a series of questionable releases has left its name tarnished. It pioneered a form of activism dedicated

Now a household name, Dropbox has made sharing files between computers incredibly easy, without the need for clogging up email inboxes, or having to sneak a flash drive between machines. The platform has countless competitors, but we haven't found a reason to switch yet.

Pinterest (2010) Pinterest is a benign, prett y social media platform that can be helpful in piquing interest, planning events or finding visual inspiration. The site popularised image-focused social sharing and has paved the way for Instagram's dominance. I have clearly omitted a whole cavalcade of other resources and platforms but space is the limiter. Suffice to say that from search, to Gmail, to G-Suite, Android and a myriad of other tools, almost every internet user has some connection to Google. Watch this space.

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MANAGEMENT

Ten years ago… professional development for managers. The community and strata title industry is poised to take a milestone step in terms of professional development as the national and state government, through the council of Australian governments set harmonisation of industry standards for Australian professionals”.

By Trish Riley, Editor

Prime ministers come and go — even if they're re-elected — inside the space of a decade. Life moves fast, and it’s hard to believe that in 2008, while Gerry Harvey was saying that online retail was “a complete waste of time,” Uber, Bitcoin, Instagram and the selfiestick weren’t around at all…

Jim Berardo, owner of Berardo’s Restaurants took out the top honours at the Travel + Leisure Innovators Awards for establishing the Noosa Food and Wine Festival.

Casting our eyes back ten years ago, the accommodation and management rights industries were poised for significant disruption, some of which continues today…

John Mahoney was asked “what are the risks of a management rights business? And why do MLR businesses have such a high value, said:

ARAMA (Qld) was warning managers of the need to be ready for financial issues: “The cyclical nature of a service business provides a regular challenge for resident accommodation managers, in both holiday and permanent letting, but in times of economic uncertainty the issues become more critical. ARAMA Queensland is already concerned about the collapse and thus the consequences of online booking agencies leaving everybody holding the bag and the prospect of a holiday ruined before it started”. According to the Australian Hotels Association, “Even though Kevin Rudd had only been in the top job for less than a year when the magnitude of the world’s financial problems became apparent, he acted swiftly and decisively to create an environment where average Australians, as well as businesses would, by and large, not be adversely impacted (what?). The result, a comprehensive stimulus package, timed to ensure that as much as possible, it would be business as usual for Australian businesses over the Christmas/holiday period”. Australia, the movie, was released and was used as a global tourism-marketing tool by Tourism Australia. The Office of the Commissioner for Body Corporate and

Community Management urged all industry stakeholders to communicate effectively with owners and committees in order to avoid acrimonious disputes: “Resolving a problem before it becomes a dispute and communicating effectively with owners and committees is important for resident managers, caretakers and letting agents, particularly at such a busy time. Managing relationships in bodies corporate is important to support harmonious community living, and usually an area where legislation is of limited assistance”. There were those that thought the GFC would be short-lived and the Tourism Report advised that a hinterland sky rail, treetop walk and a new convention centre were on the list of possible ‘catalyst’ projects for the future of the Sunshine Coast: “The plan has been developed by Tourism Queensland in consultation with local government and key Sunshine Coast stakeholders with the aim of identifying new tourism product and investment opportunities and the infrastructure to support them. Other catalyst projects included: •

A convention, exhibition

and performing arts centre in the Maroochy CBD; •

The Stockland Park regional sports complex including a 12,000-capacity outdoor multi-use stadium;

•

An attractions and Adventure Park Precinct to connect existing attractions such as Aussie World and Australia Zoo creating new attractions such as a new water theme park;

•

A hinterland eco-lodge incorporating nature-based and indigenous experiences;

•

Coastal green trails including a new Great Walk in Conondale and the development of a shuttle bus system; and

•

Rainbow Beach Eco Resort to establish itself as a major eco-tourism and resort destination for Australia among others.

Matthew Amber, then president of the National Community Titles Institute of Australia, wrote: “The review of the licensing regulations for strata and community title managers being undertaken in NSW was considered an important industry issue with national impacts that looked set to determine the

MANAGEMENT

“The two questions are related. The common element in each is the tenure of the business that is directly related to the length of the term of the management rights agreements. One of the principal reasons why management rights are so valuable is because of the perception, based on solid history, that the agreements will continue indefinitely. It should not be surprising then that one of the biggest risks in such a business is the potential for the agreements to come to an end”. Domestic travel in Australia slumped and tourism operators were bracing for heavy losses as the financial crisis gripped travellers. On a positive note (perhaps the calm before the storm) Andrew Morgan of Queensland Tourism & Hospitality Brokers detailed the ‘rise and rise of motel leasing’: “The growth in demand for motel leases over the past ten years has been astronomical. In 1995, I estimate that there was approximately one in every 10 motels that were under lease, with nine of every 10 being operated by the owner of the motel property and business. Today, I estimate that approximately seven out of every 10 motels is operated under a lease arrangement”. ResortNews | December, 2018

Bathrooms:

it’s often the smallest rooms that matter most This should keep you worry-free for a good while but if housekeepers spot a wobbly or cracked seat – replace it as soon as possible to avoid guest complaints.

By Rosie Clarke, Industry Reporter

Keeping up with the revolving door of bathroom trends in an everchanging and demanding industry is something of a nuisance. Even when it pays dividends.

One thing to focus on from the getgo is privacy. Open-plan bathrooms have become something of a trend in recent years but beyond business travel, there are few situations where a guestroom will only have one guest and an open-plan bathroom has its privacy concerns. Even a frosted glass barrier can get the job done.

To keep it simple, today we focus on the hardware and technology trends, rather than beautifying aesthetics. Of course, the two do intertwine.

Not all pressure is bad…

Automatic tech: for the lazy or hygienic?

If there’s one piece of hardware in a bathroom that gets people talking, it’s the shower. Water pressure has a massive presence in guest reviews, as does ease-of-use, cleanliness and plain ol’ sparkle. An impressive looking shower will hold a certain amount of sway with guests but what they really want to know is how well it works. Whether it’s an overhead, wallmounted, adjustable rail shower or hand-held shower head with a hose, there are a plethora of design options available. Each type has its pros and cons for users as well as different compatibility with space. If you are short on space and looking for a shower to go over a bath, you’ll also need to look at shower converters when shopping for taps. Taps are a huge consideration because if they’re poorly constructed or ill-fitting they may break easily or guests may have trouble figuring out how to use them. On the flip side, statement taps can give your bathroom an edge, so choose something that’s in-keeping with the style you’re going for whether that’s a geometric design or something more rustic.

Lighting up your best assets Your best asset being your guests: mirror lighting is a huge plus! We are living in the age of the vlogger and the beauty guru. December, 2018 | ResortNews

The ladies (gents and many in-between) want a ring light so they can see every freckle and pore. They can make sure their skincare regimen is carried out to perfection and have the perfect place to sit and do their makeup. Having to hover by the window in broad daylight to put your makeup on before sunset or use your phone as a torch because the room is mood-lit, is just no way to prepare for cocktail hour.

that focus on highlighting the spaces your guests will be using most frequently will really help.

Trending toilet seats (the underrated guest-winner-overer) Toilets, and particularly toilet seats may be an overshadowed item in the standard guestroom but if chosen properly they can be a unique selling point.

Backlights have a minimalist glow but any variation of LED vanity wall lights, or even Hollywoodstyle mirror lights do a fabulous job of adding functionality and liveability to a bathroom space.

At Resort News, we’ve seen all manner of toilets come on the scene, from marble to brass, oval to square. There’s no limit to the types of toilet seat design that are out there.

It’s important to drown your wet room in plush lighting wherever possible. This will change depending on your layout but have a well-lit shower and/or bath that feels warm and inviting to guests.

It is vital, however, that seats be well-made. Particularly in accommodation spaces where people of all shapes and sizes are going to be using the in-room loo, it’s good to choose a sturdy tried-and-tested product that your supplier can vouch for.

A single light in the centre of the bathroom ceiling may not be the best option, as the corners of the room will be cast in shadow and this is usually where the shower and vanity or toilet sit. Adding creative lighting choices

Guestroom seats should expect to be higher weight-bearing than the average: industry insiders recommend starting with 240kg and looking out for steel hinges.

MANAGEMENT

There’s a quote floating around the internet about laziness factoring into necessity as the precursor for invention. There might be something to be said for that, as some of the coolest inventions we now enjoy have an element of laziness thrown in – the remote control, Google Home, cars, vacuums, the internet. When it comes to automated bathrooms, at first glance it might seem a bit lazy to watch motion sensors, virtual light switches and smart mirrors come into vogue. But it’s much more than invention for the sake of technology. The less touch required in a bathroom, the more hygienic and the more accessible. The flatter and smoother the surfaces and walls are, the easier to clean and maintain. Chromotherapy in a guest bathroom can calm visitors and create mood without the need for fire hazardous candles or old-fashioned lamps. The nature of a guest bathroom being in such close proximity to the standard guestroom, means that installing these features in the bathroom will also benefit the bedroom without having to carry out an extended refurb. Chromotherapy, for instance, installed in the bathroom may also light up the bedroom. Particularly if you have frosted glass separators.

Gold Coast tourism faces biggest shake-up as alliance futures determined The Gold Coast appears to be headed for the biggest tourism promotion group changes ever planned, with councillors being asked to vote to end the city’s various promotion alliances and replace them with a mega tourism body. An overwhelming majority of councillors are expected to support creating a new entity called Major Events Gold Coast (MEGC).

In the biggest shakeup in the history of local tourism promotion boards, a three-phase transition plan has been proposed:

Paradise and Broadbeach alliances along with Southern Gold Coast would be wound up with the MEGC starting permanent operation.

Between December and June next year, MEGC will be created along with an interim board, new office location and amalgamation plan.

Gold Coast Mayor Tom Tate has responded to claims that a change to the structure of the city’s precinct alliances will mean poor outcomes stating that there are obvious benefits in bringing the alliances together.

In the 12 months that follow, a permanent board and CED will be appointed, and new funding to be sorted by June 2020. From July 2020 the Surfers

“The financial savings from that can be poured back

into more events as well as creating a better aligned annual calendar,” he said. “It makes no sense when we have four alliances, some offering significant events on the same night as each other. You are splitting the market and causing confusion with visitors and locals. Having a single events company ensures efficiencies and through proper management, we can ensure the equal spread of significant events right throughout the city.’’

International arts tourism: connecting cultures The arts are increasingly on the itinerary for visitors packing their suitcases to come to Australia, according to a new report from the Australia Council for the Arts. Arts tourist numbers grew by 47 percent between 2013 and 2017, a higher growth rate than for international tourist numbers overall (37 percent). Visitors from Asia were the biggest group of arts tourists, representing almost half (48 percent) of all international tourists engaged with the arts. International tourists who engaged with the arts tended to stay in Australia longer than international visitors overall and were also more likely to travel beyond the east coast states and to visit regional locations, reflecting a demand for diverse and authentic cultural experiences. Australia Council Executive Director for Strategic

Development and Advocacy Dr Wendy Were said the research highlights the power of the arts in shaping international perceptions of Australia. “The arts provide an important point of connection. We know that international visitors are drawn to Australia’s unique First Nations arts and cultures, and are connected to us through the extraordinary diaspora who have made Australia their home.” “The arts are a highly influential and powerful tool for building national identity and for sharing Australian culture, stories and perspectives with the world. The research highlights the growing potential for the arts to drive and support tourism activity, and for our artists to increase their engagement with the international tourist market,” Dr Were said. TOURISM

•

China is the biggest single-country market for arts tourism. Almost 620,000 arts tourists came to Australia from China in 2017.

•

The most popular activity for arts tourists was visiting museums and galleries (more than 2.5 million visitors in 2017).

•

More than one million international tourists attended festivals, fairs and cultural events in 2017, an increase of 61 percent since 2013.

•

The five countries making up the largest numbers of international arts tourists in 2017 were China, the UK, the USA, New Zealand and Japan. The total numbers of arts tourists from Asia, the Middle East, Oceania, Europe, North America and South America have grown year on year since 2008.

•

Nearly half (43 percent) of the eight million international tourists to Australia in 2017 engaged with the arts during their stay.

ResortNews | December, 2018

A powerhouse board and a new voice for NSW tourism Tourism minister Adam Marshall recently launched the NSW State Advisory Board as an advocacy group for members of the Accommodation Association of Australia (AAoA). Representing properties across the state and neighbouring ACT, it includes key figures from industry heavyweights including TFE hotels, The Star Entertainment Group, Accor and Mantra. “The Accommodation Association’s NSW Advisory Board continues our initiative to ensure the interests of state-based members are more specifically addressed,” said AAoA CEO Richard Munro. “According to Tourism Research Australia, NSW is home to 34

• Emma Waterman, TFE Hotels • Damien Cameron, The Star Entertainment Group • Mark Ronfeldt, Daiwa Living Waldorf Apartments • Matt Rubie, Frasers Hospitality Australia • Monty Maguire, Quality Hotel Powerhouse Armidale

percent of tourism business in Australia, exemplifying NSW’s position as Australia’s leading tourism state. Doma Group’s Patrick Lonergan, chair of the advisory panel, identified working with political and industry stakeholders as central to its function.

• Patrick Cheok, Mantra Group

both government, opposition and key stakeholders in our industry.”

•

Scott Boyes, AccorHotels

Members include:

•

Theo Whitmont, Kincumber Nautical Village & Big4 Gold Coast Holiday Park

•

Richard Munro, Accommodation Association of Australia

•

Chair – Patrick Lonergan, Doma Group

•

Deputy chair – Marianne Ossovani, Elanor Investors Group

“We look forward to working with

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TOURISM

Luxury camping and glamping resort sells for $23.25 million The four-hectare Rivershore Resort at Diddillibah near Maroochydore was bought by holiday parks specialist Ingenia Communities Group, which is looking to strengthen its Queensland portfolio with the latest high-profile acquisition. The resort comes complete with 80 large powered sites for caravans and 15 newly constructed ‘glamping’ tents, plus a water park, mini golf course and boat access to the river. Ingenia CEO Simon Owen says the property, an hour from Brisbane, is a quality offering in a lucrative market. “The accommodation, which caters to our key markets of families and the travelling

senior, is well planned and of high quality,” he said. “In addition, the Resort gives our Holidays brand an additional presence in the attractive Sunshine Coast market, complementing our existing footprint along the NSW and Queensland coast.” Current owner Bernie McGovern spent some $10 million buying the site and developing the resort, which opened in 2016. He said the business was growing by some 15-20 percent each month and “would run the highest occupancy of any caravan parks in Australia, by a long way”.

Ingenia says there is potential for the vendors to receive another $4.5 million on top of the $23.25 million subject to further growth in the financial performance of the resort in the 12 months following the sale.

Rivershore was named the best BIG4 holiday park in Australia last year and took silver at the 2017 Queensland Tourism Awards for Best New Tourism Business.

The search for Australia’s ‘Next Big Thing’ proves fruitful for Queensland town Chinchilla’s Big Melon pipped finalists the Big Peanut in Kingaroy, the Big Kilt of Glen Innes and Mittagong’s the Big Tulip to be named the nation’s next oversized roadside attraction.

winner, we’d like to thank each and every person who nominated, voted and supported the search. “It goes to show the significance of ‘Big Things’ in Australia and how sentimental Aussies are about them.” Australia’s newest ‘Big Thing’ celebrates the region’s signature produce and taps into Chinchilla’s MelonFest, where more than 15,000 travellers make the trip to get sticky at the world’s biggest melon festival every two years.

Thousands of Aussies submitted their ‘Next Big Thing’ ideas, and after a tight twoweek voting process, the two foodstuffs, flower and item of Scots attire were announced as finalists. Organisers said the unique flair of the Big Kilt and blooming beauty of the Big Tulip received strong support but were no match for Queensland’s oversized edibles, with the state’s Big Peanut and Big Melon in a close race to the finish.

to ensure Queensland, with a third of all Australia’s largescale offerings, continues to dominate when it comes to giant fruit.

The Big Melon joins the Big Pineapple and the Big Mango

Wotif managing director Daniel Finch said: “We kicked off the

search for Australia’s ‘Next Big Thing’ to celebrate Wotif’s 18th birthday in early September and since then, we’ve had widespread involvement from Aussies far and wide. “While there can be only one

TOURISM

A shoo-in for the town’s biannual melon weigh-in, The Big Melon stands at almost nine metres wide and over three metres tall, weighing four tonnes. Located at the Chinchilla Visitor Centre, the town hopes their Big Melon will give Aussies another reason to savour the region’s landscape and country hospitality. ResortNews | December, 2018

Minimalist travellers

find gold on the side of the road In the heart of Palm Springs, a once nondescript Howard Johnson motel with an on-site Denny’s restaurant is now the Ace Hotel & Swim Club, replete with outdoor fireplaces, live music by the pool, a vintage photo booth and Middle East-meetsCalifornia fusion dining.

the neighbourhood,” she says. But it can also go the other way. Some hoteliers take these renovations to the next level by simultaneously sprucing up retail or restaurant properties in the immediately adjacent area, creating, in effect, a hip district.

More money, more problems Despite the success seen by a number of these new motels, Guichardo says that, like every incipient trend, this one has its challenges. In order to reap the desired profit from their makeovers, many hoteliers need to charge rates that are double or even quadruple the rates of the original motel.

The Drifter, once a rundown, dodgy edifice in New Orleans, now offers specialty coffees from La Colombe and poolside craft cocktails for guests staying in minimalist-style rooms. The Vagabond in Miami, a former dive motel built in 1953, today has rooms with hypoallergenic Italian bedspreads and stencilled geometric wall art. Across the United States, hoteliers and developers with an eye for a great location and an affinity for Americana are buying fifties and sixties-era motels and giving them top-to-toe revamps, while making sure they retain the retro aesthetic that attracts style-savvy travellers. The trend has picked up so much steam that it has transformed the very notion of a motel – from one of a pitstop to one of a destination. “These projects have removed the stigma of the motel experience,” says Geraldine Guichardo, VP of Americas Hotels Research at JLL. “There is no longer the assumption that all motels are degraded properties you pass on the road. The idea around the motel is now enhanced.”

A formula for success The motel – a word which fuses “motor” and “hotel” – used to be the no-frills mainstay of the weary and budget-conscious road-tripper. As modern hotel brands have reclaimed these uniform spaces, a fairly universal approach has emerged. Designers tend to keep the overall December, 2018 | ResortNews

architecture and trademarks of the building intact – as well as the exterior corridors, motor courts and small swimming pools. They often throw in a neon sign or two, so the establishment screams “hip vintage.” But successful moteliers also include the necessary upgrades demanded by the traveller, Millennial or otherwise, who likes the idea of staying somewhere unique but doesn’t want to sacrifice comforts like high-threadcount sheets and fair-trade coffee. In Napa Valley, for example, the Calistoga Motor Lodge – formerly the Sunburst Motel – fits right in with the aspirational vibe of the area, which is known for its Michelin-starred eateries and bountiful vineyards. Its grounds include three soaking pools, filled with water from local geothermal springs. The amenities range from a mix-your-own mud bar in the spa and pour-over Equator coffee in the rooms. “In a market like Napa, a place like the Calistoga Motor Lodge makes sense,” says Guichardo. “A motor lodge with a spa that complements the vineyards and the wine experience – travellers want that quaint, simple, retro experience.”

Place-making potential Location is key to the success of any revamp. “When you have a market that is undergoing a real estate transformation, motel developers have the opportunity to be part of the market’s evolution and can benefit from the anticipated additional demand the market will observe,” Guichardo says. The Vagabond Hotel in Miami, for example, sits on Biscayne Boulevard (which runs off from historic Route One), a stretch known for its craft breweries and art galleries. As a consequence, the Vagabond draws in design-savvy travellers. For hoteliers considering a substantial makeover of an existing motel property, seeing thriving adjacent properties, both residential and commercial, “offers some level of assurance,” Guichardo says. “If they see new restaurants coming in and multifamily complexes going up, with residents who have guests from out-of-town who can stay at the local motel, it makes sense for a hotelier to follow suit and create a new lodging product that’s in line with the cool feel of

INTERNATIONAL TOURISM

Certainly, if a motel’s prices rise from $69 a night to $169 to pay for all the sophisticated touches, some travellers may elect to stay at a recognised hotel brand instead, a place where they know what to expect. Investors entering the space need to be sure there is enough demand from cash-rich, minimalist travellers. Market research is key to understanding what visitors to an area value, Guichardo says. Developers should also be cautious of focusing too squarely on Millennials, Guichardo says. While they “make up a considerable proportion of the lodging demand and are known for prioritizing experiences,” Millennials too are pairing off and having families. This may lead many to seek a more conventional hospitality experience. While there are clear hurdles to a successful revamp, it’s clear the mass perception of a motel stay has changed, and more roadside eyesores will likely go the way of the Ace. “They’re no longer a place where you pull up blindly after a night of driving,” says Guichardo. “Motels are a place you may want to consider far ahead of time, while planning a vacation. Some are so popular, there’s a waiting list.”

Closing the year in style

(From left) Beck and Jenny from Archers Body Corporate, Sue from Swell Resort and Sarah from Boulevard North

The last ‘Ladies in Management’ luncheon of the year was held at Glass at the beautiful Gold-Coast Marina Mirage, overlooking the water. As per usual there were a lot of laughs, wine and networking going on.

(From left) Michelle from EBM and Penny from Emerald Lakes

Organiser of the events, Marisa Millane of Freedom Internet enjoys the diverse mix of women that attend monthly, and said: “The lunches are a great networking event for newbies coming into the industry as it is always comforting to chat with others who have been through the same trials and tribulations, or who has an

in-depth understanding of the industry at hand, both the pros and cons. “We have such a variety of women attending these monthly luncheons from management right owners, in both permanent and holiday complexes, to service providers, that it really is a great way to broaden your knowledge of the industry in a relaxed environment.

(From left) Kelly from REI Master and Simone from Sailfish Cove

“Whole-hearted support is a given, and it’s gratifying to see the group growing from strength to strength.” The ‘Ladies in Management’ lunches are held every third Wednesday of the month, if you would like to know more about these please email marisa.millane@ freedominternet.org.

(From left) Neringa, Marisa and Caitlin from Freedom Internet

QUEENSLAND WIDE

 (07) 5443 5266 www.simpsonquinn.com.au Level 1, 13 Carnaby Street, Maroochydore

Management Rights Transactions Conveyancing and Property Law Estate Planning

Simon Barnard, Sue Seymour, and Ian D’Arcy received life membership at the SCA (Qld) 35th AGM

EVENTS & APPOINTMENTS

ResortNews | December, 2018

Queensland Tourism honours its best Queensland’s $25 billion tourism industry recently recognised its most outstanding, dedicated and successful operators and individuals at the 2018 Queensland Tourism Awards (QTA18). A total of 87 awards, including 26 gold, 26 silver, 26 bronze, seven highly commended and two individual awards across 28 categories, as well as the RACQ People’s Choice award, were presented at The Star Gold Coast where more than 900 guests gathered to celebrate Queensland’s tourism achievements. The Gold Coast collected two gold, five silver, seven bronze, two individual and one highly commended award, with the impressive haul the largest of any region, outstripping perennial hot rival the Whitsundays and last year’s overall winner, Brisbane. Tourism Industry Development Minister Kate Jones said the Queensland Tourism Awards recognised the outstanding achievements of operators throughout the state. “Congratulations to this year’s nominees and winners for your commitment to striving for excellence and showcasing the best address on the planet,” she said. “Queensland is home to some of the best experiences in the world and these awards celebrate the great work operators have done to develop our diverse range of tourism offerings in the last 12 months. “Tourism is a cornerstone of our economy, and the government is committed to growing the sector and backing tourism operators to create jobs in Queensland.” QTIC Chief Executive Daniel Gschwind said the December, 2018 | ResortNews

34th Queensland Tourism Awards had attracted a high calibre of tourism operators across all award categories, with more than 170 entries received state-wide.

Pre-event was topped off with a sunset

“This year’s entrants across 28 business, event and individual categories reflect the diverse and dynamic range of tourism operators helping Queensland’s tourism industry flourish,” he said. “Queensland’s tourism industry continues to demonstrate just how invaluable its contribution is to the state’s economy, contributing $25 billion or 7.8 percent of the state’s gross product, and employing 217,000 people.

Simon Terry from Cobbold Village accepts their ‘Hosted Accommodation’ Gold and induction into the Hall of Fame

Darren Campi and Natalie Flecker from Mt Isa Mines Rotary Rodeo accept the ‘Festivals and Events’ Gold and induction into the Hall of Fame

“International visitor numbers for Queensland have seen record growth in the 12 months to June 2018, increasing 5.5 percent. Some 2.7 million international visitors generated $5.7 billion in overnight expenditure. Queensland’s Gold Award winners will gain automatic entry into the Qantas Australian Tourism Awards, which will be held in Tasmania on March 1, 2019. The Queensland Tourism Awards, hosted by the Queensland Tourism Industry Council and presented by Queensland Airports Limited in partnership with Tourism and Events Queensland and The Star Entertainment Group, and supporting partner Tourism Australia were judged by a panel of industry experts who volunteered their time to assess written submissions and travel throughout Queensland to experience the amenities and services of nominated businesses. Next year the event will be held at Novotel Twin Waters Resort on the Sunshine Coast in November.

Guest get involved in performances

900 guests attended the 34th Queensland Tourism Awards at The Star Gold Coast

EVENTS & APPOINTMENTS

Queensland / New South Wales

Our vision...

Why use CRE?

“To be the Leading Australian Business Broker by providing the industry’s best service – matching quality businesses with genuine buyers.”

At CRE we are focused on service, keeping both vendors and buyers up to date on the status of either a sales progress or on an enquiry from a buyer. All of CRE Brokers have dedicated administrative support. This is to ensure that communication is timely and consistent and that both Buyers and Vendors have a secondary person

to contact - should you have a question whilst our Brokers are on the road, out of mobile range or negotiating a sale. CRE Brokers has been operating since 1982 and has a dedicated Valuation department that is able to provide educated and qualified advice. Twenty five brokers along the east coast / throughout Australia will be briefed on your property to accelerate the sale. CRE Brokers has a database of over 40,000

buyers across Australia and Asia. Our Brokers are experienced operators with strong industry experience - our sales exceeding $150 million in the last financial year. Our services include sales of Management Rights, Motels, Hotels, Caravan Parks as well as providing Marketing and Sales advice, Property and Business Valuations and Appraisals for Current Selling Price.

Queensland Brokers

Mike Mallory

Jim Prentice

Peter Sagner

Jim Lowe

Ronnie Slebos

Brisbane QLD

Gold Coast QLD

Central QLD

0409 494 098 mikem@crebrokers.com

0412 984 684 jimp@crebrokers.com

0401 814 404 peter@crebrokers.com

0456 000 480

0414 964 333 ronnie@crebrokers.com

Mike has been in Real Estate and Management Rights since 1996.

Jim has been involved in the Management Rights Industry since 1998.

Peter taught Mathematics and Physics across Queensland for over twenty years. Business operations since leaving Public Education include: Bulk Freight Transport; Taxi Operator; Post Office; Caretaker/Property Manager Management Rights. Involved in Residential sales and graduating to Management Rights sales since 2014, Peter is well trained and exclusively focused on “The Vendor”.

He has a solid base of clientele that has entrusted him with their most valuable asset because of his attention to detail and his sense of duty. Due to these attributes his referral base is continually growing with further satisfied clients.

Previously Owner/Operator of two large complexes for over 5 years until obtaining his full Real Estate License and moving into Management Rights sales in 2003. Jim has listed and sold hundreds of complexes establishing himself among the strongest and longest serving Brokers in Brisbane.

jim@crebrokers.com Jim was introduced to the Management Rights concept by purchasing the Rights to a large complex in Brisbane consisting of multiple Body Corporates which he operated for 9 years, eventually selling in 2013. After selling Jim relocated to the Gold Coast specialising in Management

In 2006 Ronnie purchased management rights in Teneriffe, Inner Brisbane where he single handedly managed the complex for 7 years. After selling Ronnie relocated to Agnes Waters, Central Coast QLD. He appreciates that property inspections need to be accompanied by the Broker, and because Ronnie loves to travel his service is second to none.

07 5371 0165 | admin@crebroke

Our strengths are your results. Craig Clark Director, QLD & NSW

0456 000 880 craig@crebrokers.com As a Director of CRE Brokers, with over 20 years experience, Craig has vast industry knowledge, as an owner operator of accommodation and hospitality businesses to business sales. QLD/NSW office is where Craig works closely with the team to ensure vendors and purchasers are provided with an unmatched service.

Our team... Our Brokers have broad knowledge and experience in all areas of tourism and hospitality. Our team are:

CRE Brokers QLD NSW Administration: Chris Norgrove and Sonya Clark are based in our Coolum Beach Office.

New South Wales Brokers

Tom Noonan

Mike Duffy

Stephen Pursell

Darren Leaney

Scott Taylor

Cairns QLD

Sunshine Coast QLD

Byron Bay NSW

Coffs Harbour NSW

Newcastle NSW

0456 007 199

0456 565 353

0456 017 677

tom@crebrokers.com

0456 003 386 mike@crebrokers.com

stephen@crebrokers.com

darren@crebrokers.com

0456 000 299 scott@crebrokers.com

Living on the Northern

After 20 years of Sales &

Having owned managed

Darren has owned multiple

Being based in Newcastle

Beaches of Cairns, Tom

Marketing in the building

gives Scott easy

has now more than 20

industry, Mike purchased

and refurbished many

award winning businesses and is highly regarded as

access to Sydney and

years experience in the

a Motel in NSW in which

hotels in NSW, shows that Stephen has enthusiasm

a sales and marketing

the Central Coast.

Industry from Management

he renovated, rebranded

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and turned into a

and a genuine interest in the

With over 20 years

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franchise manager for SMES

experience operating large

Operator of Management

Hospitality Industry. Stephen

holiday parks, Scott is still

Rights, Motels and Hotels.

brings decades of Hotel and

and multi-million dollar

Mike then purchased a Hotel

Liquor Industry knowledge

brands and start-ups.

very passionate about

Toms local knowledge

in the Murray River region.

alongside his passion for

Darren has extensive

is extensive and he has

the hospitality Industry.

Now based at the Coolum

hospitality businesses to

accredited business

His knowledge in relation to

gathered many contacts

Beach Office specialising

his sales. Stephen services

qualifications, including the

Local Government and Crown

during his long career.

in Hotel & Motel sales.

NSW and SE QLD.

Property Council of Australia.

Reserve Land is extensive.

ers.com | www.crebrokers.com | 3a, 5-7 Birtwill Street, COOLUM BEACH QLD 4573

Labor Energy Policy announcement The Property Council has welcomed the focus on boosting energy efficiency in the federal opposition’s energy policy however, the dilemma of a national, economywide mechanism to deliver affordable and reliable energy while reducing emissions, remains unresolved. “Energy efficiency has long been overlooked as a practical and cost-effective way of reducing energy costs and cutting carbon

emissions and it is pleasing to see this as a key plank of the opposition’s policy,” said Ken Morrison, chief executive of the Property Council of Australia. “Labor’s platform gives some overdue recognition to the importance of energy efficiency, and we look forward to a more detailed discussion around the design and implementation of these measures. “Australia’s property industry is a global leader in delivering a sustainable and energy efficient built environment and well-placed to support the design and

implementation of worldclass energy efficiency outcomes. “Labor’s plan proposes to double Australia’s energy productivity by 2030 by building on the existing National Energy Productivity Plan and drawing on the Green Building Council of Australia’s Carbon Positive Roadmap. “The plan also recognises that the energy sector will need to make a bigger commitment to emissions reduction as we move towards a net zero emissions objective by 2050. Energy efficiency alone will not be

able to achieve a net zero carbon building or precinct. “The Property Council has been advocating for a national plan towards net zero emissions buildings with strong targets for emissions and energy performance in buildings, regular public reporting on progress, and strong industry engagement.” “Labor’s statement represents a de-prioritisation of that objective by requiring the high bar of political bipartisanship before a National Energy Guarantee or like framework can be implemented,” Mr Morrison said.

Brisbane developer plans $83m Sunshine Coast towers

Ground breaks on $65m Broadbeach development

Habitat Development Group will deliver a $83 million plan for two towers as part of the new Maroochydore city centre.

Melbourne-based developer Optimus Developments has kicked off construction on the $65 million luxury residential development in Broadbeach on the Gold Coast.

Stage one of Habitat’s development involves a 12-storey tower comprising 65 apartments, while stage two includes plans for 14-storey tower housing 81 apartments. The second part of stage two incorporates six SOHO townhomes, spurred by the promise of faster internet speeds thanks to the Sunshine

Coast's undersea internet cable decision. The dedicated SOHO townhouses have been designed to "have the efficiency of an office with the comfort of a home". Habitat is the latest company to announce new developments in the new Maroochydore CBD, a project located one kilometre from the coast’s world-class beaches. The project will occupy 4158sq m at the northern end of the 53-hectare greenfield site. Construction is now expected to commence in the second half of 2019.

The 22-storey tower, designed by Woods Bagot, will offer 22 apartments at 31 Broadbeach Boulevard within close proximity to Pacific Fair and the Star Casino. The ground-breaking ceremony comes after Optimus lodged revised plans for the apartment

DEVELOPMENTS

project late last year. Optimus chief executive Andrew Karpati said no expense had been spared on the residential development. “(The project) brings to the Gold Coast an unprecedented level of residential living boasting half and full-floor apartments, as well as a two-level penthouse,” Karpati said. The penthouse, which is understood to be priced above the $3 million mark, will feature four-bedrooms, four-bathrooms and a private pool. More than 300 jobs are expected to be created over the duration of the building process, led by McNab Construction, which is scheduled for delivery in early 2020. ResortNews | December, 2018

Meet the new sea changers:

younger Australians are moving out of the big cities No longer pegged as the retirement villages of Australia, recent demographic data and interest in coastal towns suggest that a change is in the air. The sea-change phenomenon, once linked to retirees, now involves younger groups, including young families. They are choosing lifestyle advantages associated with regional, coastal locations in a shift that’s not isolated to just the ‘northern beaches’.

towards places experiencing decline or stagnation like South Australia and, until recently, Tasmania, there is little understanding, beyond aggregate data, about how people are responding to population changes and deciding to move. What we do know however, is that people are moving in ways that current assumptions about internal migration cannot adequately explain.

Coast and Geelong – that are attracting more Australians than any other area.

Goodbye Sydney, hello Tassie

Australian seachangers are increasingly young

In addition to the populationrelated pressures of housing affordability and congestion, Australia is experiencing an ageing population and uneven distributions of people movements around the country.

In Tasmania, the reversal of interstate migration trends and the fastest population growth in almost a decade for the year to March 2018 are getting media attention. However, from a national perspective, the high level of migration out of Australia’s two biggest cities to coastal, regional locations suggests something else is at play.

The three largest age groups moving recently to these areas are all under 35 raising the question: why?

Housing affordability, traffic and other forms of congestion that affect lifestyle and amenity are often cited as reasons for leaving.

While state and federal governments are talking about policies to redistribute people away from rapidly developing places like Sydney and Melbourne

While Barnaby Joyce sees migration to places like Tamworth as the solution to crowded cities, it is coastal regions – places like the Gold Coast, the Sunshine

December, 2018 | ResortNews

Of course, this is not a unique trend. Researchers internationally have explored the counterurbanisation movement for many decades. Elsewhere, as with Australia, people have long sought to escape stressful and complicated city lives for simpler ones in rural or coastal places.

So, who are the recent seachangers in Australia? Using ABS Census of Population and Housing data, it appears that the largest age relocating group are those aged 25 to 29 years (14.0 percent of all movers), followed by those aged 20 to 24 (11.8 percent) and then 30 to 34 (10.3 percent).

What’s attracting the new sea-changers? The next important question is why are people moving to places that lack resources and employment? In research conducted over a decade now, it is clear that no one variable dominates.

DEVELOPMENTS

The most important factors involve both economic and aesthetic concerns. These include obvious issues like housing affordability, debt (via mortgage), stress and overwork. Other important concerns include risk perceptions of living in the city, bringing up children in simpler settings, experiencing increased quality time due to shorter commutes, and the imagined peacefulness of living in less populated and more aesthetically pleasing environments. Importantly, with the appointment of a federal minister for cities, urban infrastructure and population and continued talk about overcrowded cities and how to alleviate this, we might need to examine these factors more closely. Despite a recent Grattan Institute study finding that the major cities are “coping” and “adapting” and that much of the counter-narratives are overblown, there is too much anecdotal evidence to ignore that, at the very least, coping is not what people aspire to for their living and work environments. Finding a way to include these accounts in the current debate is crucial to the inevitable transformation of a bigger Australia.

Big ideas shaping the future of urban living In the coming 30 years Australia’s population is projected to increase by 11.8 million people, that’s the equivalent of adding a city the size of Canberra, each year for the next 30 years.

If successful, Spark aim to use this concept to address severe hygiene and sanitation issues in India.

As Australia’s largest cities face a watershed moment in their growth and development, many are looking far and wide for the next big idea set to reshape urban living, in anticipation towards dealing with a density overload.

Photovoltaic concrete

It is obvious that there will be an imperative need to deliver more high-quality, high density living, especially in Brisbane, Sydney and Melbourne who will take the brunt of Australia’s population growth, so here are some of the big ideas from around the globe that could play a prominent part in improving the future of urban living in Australia:

Energy generation Singapore based architects Spark recently developed a concept called the ‘Big Arse Toilet’, which converts human waste into electricity.

Living places - Biotopes

Although human waste converted into energy doesn’t sound so appealing, it could be a sustainable way of capitalising on increased density.

Another potential advancement in the conversation of energy is photovoltaic concrete facades. Designed by the Swiss-based LafargeHolcim and Heliatek, this photovoltaic cladding combines concrete with a top layer of HeliaFilm - a millimetre thick, flexible solar film applied to the top of the concrete. A prototype was recently successfully tested on a pilot project in Lyon and the product is now anticipated to reach the market in 2019. According to LafargeHolcim, "A ten-storey commercial building with 60 percent of its facade covered with the Ductal/HeliaFilm cladding system could generate approximately 30 percent of its annual energy requirement."

Jensen’s concept stems much further than urban farming, it’s about improving the quality of life in highly built places by connecting them back to nature.

Robotic revolution

‘Biotope’ is a concept by Danish designer Simon Hjermind Jensen of SHJworks. Jensen aims to combine living biological structures with architectural and inhabitable qualities. As cities become more built-out to address density, they also run the severe risk of becoming harsher places with everdegrading living conditions. In Jensen’s concept he studies how a microcosm of plants and insects can survive when housed in an exposed and urban environment.

A high-performance structure using robotic manufacturing has been unveiled by the Aarhus School of Architecture, which developed the concept with Asbjørn Søndergaard of Odico Formwork. Titled “Experiment R”, the concept will cut current costs of concrete formwork production by 50 percent and accelerate the production time by a factor of 126. Experiment R will also reduce concrete consumption by up to 70 percent. Odico are currently in advanced stages of bringing the method to market, with plans to be commercially operational by July 2019.

Each Biotope is built to mimic its surrounding context and will be a study on how to successfully integrate living flora and fauna within an area.

The concept is an easily transportable 3d-printed structure made from bamboo fibres mixed with bio-polymer resign. The toilet structure will be mounted onto a reinterpreted format of the traditional biogas dome, converting human waste to generate and store gas.

DEVELOPMENTS

ResortNews | December, 2018

Living on The Edge

The Edge is a property that’s going to ensure your long-awaited holiday in Sydney is the stuff of dreams. A unique and uber-luxury holiday rental that was designed by renowned architect Renato D’Ettorre will, quite simply, take your breath away. Just approaching the stark exterior of this incredible home perched precariously on the cliffs will have you conjuring up visions of warlords and dragons, until entering into the open-plan second floor you will be entranced by the contemporary, gallerylike living areas and exhaustive range of materials, from polished concrete to natural stone and exotic timber. Perfect in its

simplicity and elegance, and taking advantage of every aspect, you will be treated to breathtaking ocean panoramas as far as you can see. Full-length windows let in the glorious Sydney sunlight, but resist the temptation to discover the outside space just yet. Take in the epicurean kitchen replete with Gaggenau/Miele appliances, a butler’s pantry, and everything you might need to create delicious gourmet meals for family or guests. From the kitchen you can one can explore the rest of the floor, taking in how living and dining areas blend fluidly into each other, with light-wells and living spaces providing glimpses of the many incredible outdoor zones. Heading outdoors, one walks down a flight of steps into the shimmering, aquamarine infinity

pool where you can enjoy fabulous ocean views from the edge, before drying off in the sun on one of the many terrace levels. Make your way back inside to the formal living, dining and family rooms, before going upstairs to decide on which of the five bedrooms is going to be yours. Expansive ocean views come standard and private Juliet balconies provide the perfect spot for romantic breakfasts or late-night aperitifs. Wake up bathed in sunlight every morning, then decide between enjoying your morning coffee in your room or taking the stairs up to the roof top terrace on the fourth floor – talk about staggering views! Whatever you do, don’t forget the rumpus room and gym

December, 2018 | ResortNews

DEVELOPMENTS

area with indoor jacuzzi. With its incredible coastal scenery, South Coogee makes family getaways and luxury holidays in Sydney even more special. At The Edge, you’re close to both Coogee beach and the famous Bondi beach – with superstar homes with incredible architecture at every turn. Enjoy the beachside lifestyle and swim, surf, snorkel, or simply laze on the beach and people watch. You’ll be spoiled for choice when it comes to dining, but if you have to choose only one spot, make it The Bakehouse on Malabar Road, and if you’re a fish and chips fan, you can’t beat Barzura in Coogee. For further information visit www.luxico.com.au/rentals/ allrentals/the-edge.

New Managers

www.accomproperties.com.au

Sales Report

Aromet Motor Inn, NSW

MANAGEMENT RIGHTS Gold Coast Central Park Apartments

Peter Turner & Maisie Koh

Varsity Lakes

MRS

La Joya

Scott & Erin Kerry

Main Beach

MRS

Chateau Martinique

Watersedge Group

Robina

Sanctuary Manors

Serge

Hope Island

CRE

Brisbane Koko Riverside Apartments

Barry & Suzie Spector

West End

RBA

Central Village

Invech Corporation

Brisbane

RBA

Sunshine Coast / Wide Bay / Fraser Coast Vardon Point

Glen Athol P/L

Pelican Waters ARM

The Mirage

Waves Property Group P/L

Alexandra Headland

ARM

Crompton

Coolum Beach

CRE

Seachange Coolum Beach

North Queensland

Beydon and Ingrida Bentley with Russell Rogers

Resortbrokers’ Russell Rogers congratulates experienced moteliers Ingrida Bentley and Beydon Sherwood on their purchase of the freehold Aromet Motor Inn in the New South Wales Riverina town of Temora. Ingrida and Beydon managed the Normandie Motel and Function Centre leasehold in Wollongong for many years but always wanted their own freehold motel. After a long hunt, they were delighted to find and buy the Aromet (Temora spelt

Amaroo at Trinity

Jason & Kym Roe

Trinity Beach

Crown Apartments

Naomi, Chris, Emily & Martin Chambers

Mackay

RBA

New South Wales

backwards) from Ann Pike and Graham Coates. Temora, an area rich in heritage and resources in the heart of the New South Wales agricultural belt is known internationally for its acclaimed aviation museum. “The Aromet is a beautiful little 15-room motel in town, with a large section of unused land, and enjoys an ideal mix of guests including corporate travellers, construction workers and tourists,” Russell said. “We wish Ingrida and Beydon all the best with their new venture. We know that their passion for customer service will ensure their success.”

QLD - NSW - VIC - WA

Soque Apartments

Rebecca Hartley

Islington

RBA

Terralong Terrace Apartments

Nathan Blackwell

Kiama

RBA

MOTELS & OTHER Queensland Rockhampton Motor Inn

Richard Thomson

Rockhampton

Cluden Park (LH)

Discovery Holiday Parks

Wulguru

RBA

Cluden Park (INV)

Discory Holiday Parks

Wulguru

RBA

MRD Hotels

Bundaberg Central

RBA

BIG4 Aussie Outback Oasis Holiday Park Michael Fletcher

Richmond Hill

RBA

The Fox Glenn Motel

Patel

Gympie

CRE

Granite Court Motel

Jensen

Stanthorpe

CRE

Dalby Manor Motor Inn

Rake

Dalby

CRE

Tower Court Motel

Hansen

Hervey Bay

CRE

Alexander Park Motor Inn

New South Wales Aromet Motor Inn

Ingrida Bentley & Beydon Sherwood

Tamora

Richmond Motor Inn

B & A Matthews

Ballina

Quest Campbelltown

Wei Wang & Fuchang Zhou

Campbelltown RBA

Mollymook Seascape Motel

Scott Munro

Mollymook

RBA

Hotel Motel 5

Stubbs

Grafton

CRE

Sportsmans Hotel

Wirz

Bingara

CRE

Hawks Nest Motel

Lodge

Hawks Nest

CRE

Henry Lawson Caravan Park

Atchison

Gulgong

CRE

The Haven Caravan Park

Myers

Laurieton

CRE

Tuncurry Motor Lodge

Dowell

Tuncurry

CRE

Victoria Mid City Court Motel

Sukhjinder Singh

Horsham

Comfort Inn & Suites

Feng Zhao

Warragul

Alto Hotel on Bourke

Firewood Riverside Acquistion

Melbourne

RBA

Note: Agent/Broker involved in the sale is listed last. Agent - KEY: ARM - Australian Resort Management Sales; CBMR - Calvin Bailey Management Rights; CRE - CRE Brokers; MRS - MR Sales; QTHB - Queensland Tourism & Hospitality Brokers; RAAS - RAAS Rights; RBA - Resort Brokers Australia; RS - Resort Sales; TB - Tourism Brokers; TMR - Think Management Rights; SC - Stratacorp. * In conjunction

PROPERTY

ResortNews | December, 2018

Comfort Inn, Warragul

Castleglen Chateau: a family affair

Annette Adams, Reg Partington, Feng Zhao, Jim and Karen Barritt

Annette and Reg from Tourism Brokers would like to congratulate Feng Zhao as the new leasehold owner of Comfort Inn, Warragul.

Feng will shortly be joined by his wife who is currently operating a motel in New Zealand. After seven years of motel ownership across two properties, Karen and Jim are having a short break before taking up other interests.

The Dunes, Cotton Tree After a distinguished career within the police service â&#x20AC;&#x201C; first in New South Wales and then with the Queensland police force as a plain-clothes detective, Brad moved back to NSW and began a new career as a licensee in a variety of licensed venues on the Central Coast of NSW.

Darrel, Lyn Pearsall, Reegan and Nixon and Nyla

Brad and Tracey with Craig Clark

After a number of years in this role gaining experience in the hospitality industry, Brad made another career move to mining in the Northern Territory working in the Tanami underground Gold Mine before leaving this and purchasing The Dunes through CRE Brokers.

She also has valuable hospitality experience through employment in various licensed venues on the Central Coast. It was during this time Tracey met Brad. She also made the move to Alice Springs to work in the Tanami gold mine in an administrative capacity. Tracey is currently completing a project in Far North Queensland, but loves coming home to The Dunes and the beautiful Sunshine Coast.

Tracey comes from an administrative background, working for a number of years in insurance for Family Day Care Australia.

The CRE brokers in the Coolum Beach office wish Brad and Tracey every success in their new venture.

December, 2018 | ResortNews

Having quality time with the family was the most important prerequisite for Reegan and Darrel when looking to buy a business; and deciding on the purchase of the management and letting rights to Gold Coast-based Castleglen Chateau has made this a reality for them. No long commutes or having to sit in traffic to and from work for either of them. The shops, schools, playing fields and even the local library are at their doorstep and there is the bonus of having a swimming pool and tennis court within the complex.

PROPERTY

Being 10 minutes from Burleigh Beach further impressed this adventurous couple who class extreme sports as a hobby. This was truly the perfect lifestyle business for them. Since taking over the management rights in September, Nixon, Nyla, Reegan and Darryl have already undertaken a large refurbishment of their townhouse at Castleglen Chateau, and are now settled and thoroughly enjoying their new life and being part of the management rights industry. Lyn Pearsall and the team at MR Sales are happy to have been able to assist Reegan and Darrel find the management rights property that suited them, and wish them all the best for the future.

November proves another period of growth for AccomProperties Following a record month in October for unique users, page views and leads for commercial partners – AccomProperties has again shown growth in unique users for the month of November 2018. November 2018 delivered over 5,392 qualified commercial accommodation buyers viewing over 58,645 listings with an average session duration of four minutes and 47 seconds (Google Analytics). Audience engagement and retention also remains steady leading into the Christmas break as the portal continues to increase market share and deliver for the industry.

Our digital strategy, which is built on a foundation of paid media (Search Engine Marketing) is still proving solid, with the growth and focus on in-demand spots for buyers such as north Queensland, Tasmania and Victoria.

Advertisers are also increasingly seeing the value of the smart remarketing programmed targeting inmarket segments of active buyers in real time through display and social media digital marketing, proving AccomProperties are ahead of the game. Leading into Christmas AccomProperties will focus on developing further content to feed the channel so that we can continue to do what we are doing – as its working...

Organic search or SEO is now delivering a substantial amount of website portal traﬃc as we create compelling industry content and a focus on listings in key hot spots for commercial accommodation.

Resort News Agent Profile:

Introducing... Rhonda Perkins – Property Bridge Rhonda is an accomplished and experienced management rights consultant who brings a strategic, yet personable approach to the buying and selling process. She said: “I was introduced to the industry at an early age and I have been selling management rights since 2005. I have built a reputation for my proven ability to listen to clients’ needs, guiding buyers to their dream business and assisting sellers to a smooth, stress free settlement. “I always put integrity first, and I have enjoyed the trust and loyalty of repeat buyers and sellers and maintained long standing associations with many respected industry professionals.

My knowledge of locations, value, property types, pricing, building styles and exceptional understanding of the market stems from long term involvement, sincere interest and perspective gained from the personal experience of having owned and operated five management rights businesses and assisting property developers establish new management rights since the early 1980s. “I have a Bachelor of Arts degree, a Certificate IV in real estate, a Certificate IV in body corporate management and I have been a licensed real estate agent since 1986. “I also co-ordinated the first management rights training course for GCIT, Queensland and was a course presenter at the TAFE and REIQ courses and industry seminars for several years.”

PROPERTY

Name: Mobile: Agency: Servicing: Web: Email:

Rhonda Perkins 0418 767 115 Property Bridge Gold Coast www.propertybridge.com.au rhonda@propertybridge.com.au

ResortNews | December, 2018

MANAGEMENT RIGHTS RESORTS

UPPER COOMERA

CHERMSIDE

BIG SALARY. LIVE OFF SITE.

NO REAL ESTATE TO BUY

EXCLUSIVE: 24 years remaining on management agreements. A very

EXCLUSIVE: No real estate to purchase within this permanent rental

healthy salary of $210,000.

business. One year old midrise apartments in the heart of Chermside.

No need to live onsite. No office hours.

24 year term remaining on agreements managing a contemporary

This fabulous Management Rights business also includes a large family sized four bedroom managers residence and a huge separate office. Close to private and public schools and to new Westfield shopping centre.

NETT $369,000 PRICE $2,703,500

Bobo Qi

0438 027 771

bobo@propertybridge.com.au

and low maintenance building. No Pool or office hours Fantastic location. Walk to Prince Charles Hospital and public transport. Residents enjoy close proximately to Westfield Chermside.

NETT $69,000 PRICE $349,000

SURFERS PARADISE

PARKWOOD

VERSATILE PERMANENT

NICHE MARKET

EXCLUSIVE: Inner Gold Coast resort style permanent with loads of street appeal. Multiple options available. Add to existing portfolio, rent out Manager’s unit or live in. All bases covered. Long agreements, live off site, secure complex, high proportion of investors, no outside agents, Gallery Vie. Superb 2 bedroom , 2 bathroom, 2 car, fabulous outdoor entertaining area and separate office with external entry.

NETT $93,000 PRICE $875,000

Rhonda Perkins 0418 767 115

EXCLUSIVE: Purpose designed Student Only Management Rights. High occupancy. Captive Market. Short walk to Griffith Uni, GC Hospital and GLink. No need to live on site. No resident owners. No set hours. Long Agreements. Minimal gardens, easy care pool. Spacious Freestanding home 3 bedrooms, 2.5 bathrooms + office and large courtyard. Secure and smart investment for the savvy purchaser.

rhonda@propertybridge.com.au

NETT $191,000 PRICE $1,422,500

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

propertybridge.com.au

Property market sizzles on the Sunshine Coast By Trish Riley, Editor

Experts are hailing Queensland’s Sunshine Coast as the hottest place in the nation to invest in property right now. Underpinned by record low interest rates, a lack of housing and tight rental market, and a rapidly growing population mean supply is failing to keep up with demand in the region — creating perfect conditions for investors. Economic growth and jobs are closely tied to every property market’s performance and

despite Queensland previously feeling the impact of the mining downturn, it appears increased infrastructure development, boosted tourism figures, surging gas exports and the strongest annual growth in jobs in more than a decade are combining for a comeback. As property prices continue to slide in many mainland capitals, Queensland’s Sunshine Coast has been quietly kicking goals and defying the national trend. Leading real estate industry figure Sean Cox of prestige property agent Tom Offermann, said the Sunshine Coast presents one of the best opportunities for capital

growth because of its liveability, affordability and future economic prospects. “Despite tougher restrictions on housing investment, the number of local investors in new property markets are especially active in the sunshine state, with more than 32 percent of buyers in this market in the second quarter of 2018. “I don’t think there is a location that’s going to offer better investment growth in the future.” His views are echoed by Lyn Pearsall of Management Rights Sales, who claims the Sunshine Coast “is on the

PROPERTY

cusp of the highest growth period in its history”. Speaking of the MLR sector specifically, Pearsall said: “Large ‘permanents’ are always in demand particularly from new entrants to the market because of the guarantee of a higher body corporate salary to cover loan repayments, however these are in short supply on the Sunshine Coast. “What we are seeing instead is the accumulation of buildings being purchased through syndicates and partnerships (disclosed and undisclosed) looking for a better ROI than term deposits.”

ResortNews | December, 2018

When asked about ‘off-theplan’ sales, Peter Brewer, director of PBB Consult said: “There are currently a number of development projects in progress, and we expect the interest for the caretaking and letting rights to continue to be high provided the developers maintain reasonable expectations in terms of the price and quality of operator.” Michael Kleinschmidt, legal practitioner director of Stratum Legal concurs: “Sometimes the bigger holiday complexes are not even hitting the market; a direct enquiry leads straight to a sale. Competition for prime sites is very high and deals are becoming more complicated and experiencing tougher due diligence. “Right now however, there’s a terrific window of opportunity where people can capitalise on the immense growth we’ve seen in the southern states.” Asked if he believes that issues

surrounding finance may have an impact, Kleinschmidt adds: “Some bank policy is tightening up and more work is necessary to source appropriate finance particularly in the larger complexes but the situation is fluid. Some banks now apply more difficult lending

criteria, either to start slowing down the rate of increase to their loan book or potentially considering risk exposure if there is an economic down-turn (and an associated downturn to domestic travel and accommodation needs).

“There is however, still a lot of value to be found. Areas tipped to enjoy above average growth over the next year include suburbs like Tewantin, Noosa Heads, Buddina, and Forest Glen – all of which have posted growth in excess of 13 percent in the year to October 2017.”

Buying or Selling | Renewing or Reviewing | Negotiation and Dispute Resolution

We are recognised experts in our field, always outcomes focused and offer flexible fee options. Michael Kleinschmidt | Legal Practitioner Director PH: 07 5406 1280 | info@stratumlegal.com.au December, 2018 | ResortNews

PROPERTY

SPECIALISING IN MANAGEMENT RIGHTS SALES IN NOOSA MACQUARIE LODGE, NOOSA HEADS

NOOSA ENTRANCE, NOOSAVILLE

• Ocean Views • 36 units with 21 in letting pool • Potential to increase occupancy • 3 bdrm unit • Body Corporate Salary: $84,000

• Positioned on the river front with 4 jetties and 4 pools • 51 units with 26 in letting pool • Huge potential • Body Corporate Salary: $93,000

Net Profit: $271,000 List Price: $1,975,000

Net Profit: $270,000 List Price: $2,395,000

METZO RESORT, NOOSAVILLE

YALLAMBEE, NOOSAVILLE

• Water views over Lake Weyba • 18 units with 17 in letting pool • No requirement to live on-site • 2 bdrm managers unit • Body Corporate Salary: $36,000

• Calling first timers • 13 units with 10 in letting pool • No requirement to live on-site • Huge 3 bdrm managers unit • Body Corporate Salary: $38,628

Net Profit: $170,000 List Price: $1,575,000

Net Profit: $102,000 List Price: $695,000

SAILS RESORT, PEREGIAN BEACH

PEREGIAN COURT, PEREGIAN BEACH

• Short stroll to the Beach • 22 units with 12 in letting pool • 3 bdrm managers townhouse & garden • Body Corporate Salary: $47,820

• 1 minute walk to the Beach • 24 units with 10 in letting pool • 2 bedroom managers unit • Body Corporate Salary: $47,195

Net Profit: $146,000 List Price: $995,000

Net Profit: $107,000 List Price: $895,000

Sean Cox 0411 652 325 Nikki Cox 0402 599 916 Based and Selling Management Rights in Noosa

Visit: www.offermann.com.au/buying/management-rights/ for full listing details or Email: seannikki@offermann.com.au

‘THE ORDINARY BLOKES’

r… a e Y w e N y p p a H & s a tm s Merry Chri SUNSHINE COAST’S NUMBER ONE MANAGEMENT RIGHTS AGENCY Matt and Barry welcome Lindsay Petty to our team, bringing a wealth of experience in operating and selling management rights here on the Sunshine Coast over the last 13 years. Lindsay’s professionalism and personalised service will compliment Matt and Barry’s skills, forming the most experienced and dedicated team of management rights brokers in Queensland. We would like to take this opportunity to thank our many valued clients for contributing to our continued success as we close in on 40 sales in 2017 and 2018 and look forward to assisting many new clients in 2019.

We wish ALL our friends in the management rights industry a truly festive season and every success for 2019. Matt 0410 343 219 Barry 0438 554 995 Lindsay 0407 029 138 www.managementrights.com | contact@managementrights.com

In a recent report, Herron Todd White noted an increase in investor activity in the Sunshine Coast market. “Sydney and Melbourne have shown unprecedented growth over the last five or six years,” said Sasha Jancevski of the RAAS Group. “Now that those markets have plateaued there a lot of people saying; ‘Do we take our profits and reinvest them, or do we move up north and get better value for money?’ Sean Cox agrees: “We are seeing unprecedented activity in the Sunshine Coast property market, with strong interest from both local and interstate investors. We’re seeing growth across the board with investors also looking to buy in the less expensive suburbs, where new housing developments were popping up, such as Caloundra, Sippy Downs, Birtinya and Mountain Creek. He adds however, that investors who are not already in the market, need to act fast. “If you were here three years ago, you could have bought between $400,000 and $500,000, now

you’re looking at anywhere from $600,000 plus, so it’s definitely on the up.”

“They’re self-funded retirees who’ve already sold their principal place of residence.”

Contrary to the management rights market, he said that lending restrictions and the impact of the banking royal commission has had little impact on the region’s prestige market. “The vast majority of deals being done at the top end of the market are cash,” he said.

Local agents say the region is crying out for more investment properties to cater to the needs of the increasing population. According to Sasha Jancevski: “There is an increase in migration from outside the region and reinvestment from

people within the region into the property sector, contributing to increased building approvals and economic activity”. Well known as a hub for tourists, retirees and summer holiday getaway seekers, the coastal city is thriving as population growth is bringing opportunities in construction, as well as business and services.

Get Legal Advice from the Experts

Management Rights and Body Corporate Law is a mineﬁeld for most. Paul Davis delivers specialised advice enabling you to make sound and well informed decisions when embarking on these types of transactions. Paul and Marcia (paralegal) have many years’ experience in this area.

Chartered Accountants & Business Advisors

We can assist you with: • • • • • • • • • • • • • •

Buying and selling management rights businesses New caretaking and letting agreements Variations to caretaking and letting agreements Topping up of terms Renewals/Extensions Reviewing agreements Purchases including legal due diligence reports Sales including contract preparation Community Management Statements Body Corporate disputes Body Corporate By-Laws POA and MIA compliance Understanding manager’s duties Oﬀ Plan Developments

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.

Griﬃths Parry Lawyers - Servicing Queensland

T: 5390 1400 www.gplaw.com.au 48

PROPERTY

PO Box 1127, Noosa Heads QLD 4567 T: 07 5449 9992 F: 07 5449 9958 info@pbbconsult.com.au

www.pbbconsult.com.au ResortNews | December, 2018

Bypassing Brisbane, many migrating north from Sydney are plunging into the cooler property waters of the Gold Coast and the Sunshine Coast and with the perfect coastal lifestyle on offer and a stronger property market, they are ripe for the picking with both averaging gains of about six percent. According to demographer Bernard Salt, the Sunshine Coast’s population of around 298,000 residents is set to rise to 550,000 in 23 years, which will require more than 100,000 new homes to be built. The latest Real Estate Institute of Queensland figures show the rental vacancy rate on the

Sunshine Coast is just one percent, with Caloundra having the tightest vacancy rate in the state at just 0.5 percent. Amongst the thousands of southern migrants relocating north, there is a clear preference for beachside living, with the Gold Coast and Sunshine Coast favoured over Brisbane. About 5,200 Sydneysiders and 2,500 Melburnians moved to the Gold Coast in FY17 and a further 1,500 migrated from Melbourne to the Sunshine Coast. This has translated into better property price growth in the region, with house prices rising 6.1 percent on the Sunshine Coast compared to

Six Sixth

“

Stars

”

3.1 percent in Brisbane over the 12 months to June 2018. The coast is now more expensive than the state’s capital, with median house prices of $650,000 and $589,000 respectively compared to Brisbane at $536,000. The last time the Sunsine Coast had such a substantial premium to Brisbane was in July 2008. While affordability is part of Queensland’s attraction, massive growth in Sydney and Melbourne property prices over a prolonged period means southern migrants can afford to buy wherever they like. “We’re already seeing an increase in Australian expats

A direct quote from a guest review who recently stayed at Silver Sea on Sixth Resort, Cotton Tree. Many reviews of this exquisite complex rate the facilities, location, cleanliness and staff 10 out of 10. Well-presented 10 storey building (presents as new) with well programmed maintenance schedule. The building comprises 26 residential units with commercial offices at ground floor. With 6 quality holiday apartments and little required maintenance work herself, this business is easily run by Lyn with separate office & reception at ground floor and no set office hours. Gordon still has his own job outside of the business and they enjoy morning walks and weekend outings together. The house size apartment features 3 bedrooms plus study, 2 bathrooms and powder room, Stone bench tops and quality Miele appliances, Wrap around balconies from living area and bedrooms and Secure basement carparks. Additionally, there is a European steam room, spa, BBQ and exercise facilities on-site. The 25 metre heated lap pool which wraps around to an adjoining plunge pool is just one reason Silver Sea on Sixth has regular repeat guests.

December, 2018 | ResortNews

PROPERTY

buying back into the market, but if accessibility becomes easier, we’re expecting a more aggressive upward trend in high-end premium property,” said Brewer. According to the Sunshine Coast Daily, the rising population is stimulating the construction industry with new developments boosting the region’s economy. There were 4576 total dwellings approved for construction on the Sunshine Coast in 2016-17 and Australian Bureau of Statistics data shows there were 2242 new dwellings approved for construction halfway through this financial year.

Lyn Nicholson – Resident Manager Schooled at Buderim and married to Gordon, they have lived around the Sunshine Coast for over 35 years. Having decided management rights was the business Lyn wanted to be involved in, the next question was where – Cotton Tree ticked all the boxes. Add to that a lifestyle unit that was welcomed by their then teenage children (and their friends), the decision to move to Silver Sea on Sixth was applauded by the whole family (including the dog) – the location, layout and space (more like a family home) met everyone’s expectations and needs. With the bus at the doorstep, it’s only 5 minutes to the new Sunshine Cove precinct, expanded shopping opportunities at Sunshine Plaza and still with a magic view of the Pacific Ocean.

Net Profit: $122,500 Asking Price: $1,336,000 (Inclusive of manager’s real estate)

For further information on this great holiday management rights opportunity on the Sunshine Coast, contact Exclusive Agent Lyn Pearsall 0425 168 244

Sunshine Coast Best Buys! We urgently need Listings for January and will promote your property on 12 commercial sites for FREE. Our goal is to get you SOLD. Idyllic Lifestyle Golf & Beach Resort

8310

Unique holiday Management Rights business that adjoins the golf course on beautiful Bribie Island. Long agreements, 24 in letting pool and no set office hours. Modern 3 bedroom/2 bathroom manager’s residence is just a 400 metre stroll to beach, shops and restaurants.

Net Profit: $190,000

Asking Price: $1,150,000

Absolute Beachfront on Bribie Island

8398

4.5 star luxury beachfront holiday Management Rights complex with 28 in letting pool. Easily run with no set office hours and minimal gardening. Modern ground floor manager’s residence with 3 bedrooms, 2 bathrooms and 2 car accommodation. Large modern office on title and separate to residence.

Net Profit: $342,000

Asking Price: $2,465,000

Caretaking only at Currimundi Lake

8886

Positioned on beautiful Currimundi Lake, this large complex is truly a lifestyle business. Caretaking is easily maintained by a couple and with no set office hours, there is great flexibility to design working hours around your lifestyle. There is an opportunity for extra income through letting and sales of villas. Spacious and modern manager’s villa with 3 bedrooms and large undercover north facing patio.

Net Profit: $155,000

Asking Price: $1,200,000 8196

Permanent Management Rights

Enviable lifestyle business that comes with living and working on the Sunshine Coast. No set office hours, minimal gardening, 20 year agreements and extra income from letting parking area. Quiet gated complex and modern free standing manager’s townhouse with 3 bedrooms, 2 bathrooms, study and office.

Net Profit: $105,513

Asking Price: $925,000

Mark English – 0437 949 113 Mark’s honest and reliable approach to getting results has earned him great respect amongst buyers and sellers alike. Having previously owned his own management rights business, coupled with over 30 years’ experience in sales management, Mark fully understands how to guide his clients so they benefit in the current market conditions.

Magic Mooloolaba

8123

After 13 years the managers here are wanting to retire. The business is located in a prime holiday area close to Surf Club, flagged area of the beach and close to cafes, restaurants, Underwater World and the infamous spit where the trawlers come in with their daily catches of seafood. The northerly aspect pool is a major draw-card for guests. The 22 apartments have undergone a recent refurbishment. The managers apartment is 3 bedroom, 2 bathroom, air conditioned with large courtyard on the first level. Priced at $595,000.

Net Profit: $274,000

Luxury on the Esplanade in Mooloolaba

Asking Price: $1,750,000 8796

Luxury, private, exclusive and desired are all descriptions of this high-rise situated in beautiful Mooloolaba on the Esplanade. Below are the popular cafes and restaurants plus bespoke boutiques that Mooloolaba Beach is renowned. Affinity pool, spa, gymnasium, steam room + media room completes the guests facilities. 21 years on the agreements. Luxurious 2 bedroom, 2 bthrm, fully furnished apartment on first level, separate office with no office hours.

Net Profit: $203,000

Asking Price: $1,750,900

1300 928 556 sales@mrsales.com.au

MR Sales have an extensive range of listings Australia wide

www.mrsales.com.au

We cover all Coastal areas, Hinterland properties, small and large, established and Off The Plan. 8861

Montville Magic

24 short term units with no on-site owners, Low real estate component, no need to live on-site, Over $300,000 net income, potential to improve with an experienced operator and multiple purchasing options for the right buyer.

Net Profit: $312,924

Asking Price: $1,700,000 8291

Caloundra Waterfront Absolute waterfront complex of 18 holiday units, Amazing water views from your office, Easy to maintain grounds and a 2 bedroom managers unit.

Net Profit: $110,000

Offers Expected Between $800,000 - $850,000

8912

Hervey Bay Lifestyle Business

10 holiday units across the road from the beach, Easy to manage by a single person or couple working part time, Ground floor 2 bedroom unit with good sized balcony.

Net Profit: $113,000

R T DE AC UNNTR CO

Asking Price: $730,000

8519

Buddina Beachside

Opposite safe patrolled beach & 200m to Kawana Shopping Mall, Great onsite resort facilities, 32/36 in the letting pool with a large 3 bedroom managers unit with separate office and studio unit.

Net Profit: $340,000

Asking Price: $2,320,000

Tony Johnson â&#x20AC;&#x201C; 0433 335 679 Tony Johnson from MR Sales & Tourism Brokers has built a reputation for honesty and integrity whilst getting the job done over the past 6 years selling tourism properties from Hervey Bay to Northern NSW and on the Gold and Sunshine Coasts. Not afraid to do the hard yards, Tony is there for his vendors and buyers alike. Interested in selling, call Tony and get the truth, not just what brokers think you want to hear.

Maroochydore Living At Its Best

8891

Luxury apartment, spacious, light and plenty of outdoor areas and space to entertain. Ducted air-conditioning! 3 bedroom, 2 bathroom, designed for family living. Also pet friendly. Great views to the ocean and also the hinterland aspects. Price of real estate $820,000. Walking distance to on trend cafes, restaurants, the beach and markets. The office is separate to the apartment and has no set hours, Accommodation module agreements until 2036.

Net Profit: $122,000

Lyn Pearsall â&#x20AC;&#x201C; 0425 168 244 Lyn has a long established history with management rights having been involved in the industry since 1989. Lyn owned her own management rights business before becoming a broker and selling many iconic buildings on the Sunshine Coast where she specialises in management rights sales, off the plan and special projects. Lyn has experience and knowledge together with a great work ethic and enthusiasm for her industry.

Asking Price: $1,336,000

“It’s good news for investors, who are currently achieving healthy rental returns of around five percent,” adds Brewer. “And I believe the increased international access the new airport will provide will likely change the profile of buyers in the Noosa region. The opportunity to work remotely, set up a home business or take up one of thousands of

new jobs is a big drawcard for the Sunshine Coast.” The fortunes of the coast property market now appear to be propelled by some solid fundamentals, with economic growth projected to accelerate from 2.5 percent in FY17 to three percent by FY19, supported by the biggest infrastructure spend since the 2011 flood recovery. While Brisbane house values

grew by just 2.5 percent and units fell by 2.2 percent (to June 2018), it’s a vastly different picture up the highway where there’s a new confidence, not only among buyers, but developers too.

Major infrastructure upgrades such as the $1.6 billion Bruce Highway lane expansions and the $347 million expansion of Sunshine Coast Airport to accommodate international flights are in development.

The region is in the midst of an infrastructure boom, with billions of dollars being invested in upgrading and creating new facilities.

The Maroochydore CBD and surrounding areas with strong infrastructure and tourism projects are a game changer,” said Pearsall.

Buy yourself a job in Noosa They say if you have to ask the price, you can’t afford it. But buying a management rights business in the Queensland resort town of Noosa is becoming increasingly popular for interstate and offshore couples. “It’s a great opportunity to move to Noosa and buy a lifestyle business, which you can build up and when you are ready to retire you can sell at a profit if you have increased the income,” says principal Tom Offermann of Tom Offermann Real Estate. Management rights businesses are very suitable for husband and wife teams because it gives them a lot of flexibility in their lifestyle. “It’s a very social business as well because you get to meet a lot of people.”

managers unit with a balcony overlooking Hastings Street. Sean & Nikki say most buyers are either Kiwis, Sydneysiders, or Victorians, but there were also a few Brits and Chinese looking. “They come from all walks of life,”

Mr Offermann says some of Noosa’s management rights businesses have more than 100 units or townhouses and can become quite big businesses, adding that Noosa’s holiday occupancy rates are quite high and there is room for rental tariffs to increase. Banks who specialise in Management Rights are still happy to lend around 65% of the purchase price because they’re still perceived as safe businesses. Tom Offermann Real Estate agents Sean & Nikki Cox are

presently selling 15 management rights resorts in Noosa starting from $695,000, which includes a three-bedroom unit for the onsite manager and 12 units to manage on Weyba Road, Noosaville. The property presently earns $102,000 net profit per year. At the higher end of the scale the management rights to #2 Hastings Street are also on the market for $2.675 million and a net of $285k. Situated on the river side of Hastings Street, it’s across the road from Noosa’s iconic Main Beach and comes with a 2 bed

PROPERTY

Former Sydneysiders Denise Platt and her husband Alex Gilmour moved from inner Sydney more than 10 years ago to manage 22 units in the popular family resort Nautilus, which is the closest resort to Noosaville. “It’s a good lifestyle,” says Ms Platt. “You are buying a business and a lifestyle, when you come to Noosa for a holiday you want to stay and the best thing to do is to buy yourself a job. It gives you a good lifestyle and a really good living.” For more information contact: Sean Cox 0411 652 325, Nikki Cox 0402 599 916 or email seannikki@offermann.com.au ResortNews | December, 2018

SunCentral Maroochydore, established by the Sunshine Coast Regional Council in 2015, is the company overseeing the design and delivery of the new $2.1 billion city centre, and CEO John Knaggs says the major precinct has garnered interest from a range of sectors including technology, professional services, health, education, hospitality and government. “Because the new city centre is being built on a greenfield site... we have an opportunity to create a city centre with unprecedented communications and technological abilities.” Sunshine Coast Mayor Mark Jamieson says the new Maroochydore city centre aims to be one of the ‘most digitally advanced’ in the country. “More than $10 million in underground infrastructure will ensure the latest technology is available, while an international broadband submarine cable landing in Maroochydore will

provide Australia’s fastest data and telecommunications connection to Asia and the second fastest to the United States,” said Jamieson.

large projects converging over the past three years.

Economics and property professor Mike Hefferen, formerly of the University of the Sunshine Coast and QUT, says the coast is riding the wave of a $20 billion infrastructure investment, including: the new 450-bed public hospital costing $1.8 billion dollars in Kawana that has the capacity to expand to 900 beds by 2021 effectively establishing it as one of the largest health precincts in the southern hemisphere and an international broadband submarine cable project that will position the coast as Australia’s leading smart city region and putting it on international business maps as a leading investment destination for commerce and industry.

The area, he says, sells itself, with an attractive climate and relative housing affordability – compared with major cities – fuelling rapid population growth. While the council has achieved some broadening of the economy, Hefferan said the population is growing faster than jobs can be created,

cementing the Coast’s future as a commuter centre for Brisbane – not necessarily a bad thing, he argues. “People might be earning in Brisbane, but they’re still buying property here and spending their money here,” he says. “But if that’s the case, good, safe quick transport infrastructure into Brisbane is essential, and that means a heavy rail connection.”

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

Hefferen adds the big spend is fortuitous timing, with several

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

(07) 5443 5266 www.simpsonquinn.com.au Level 1, 13 Carnaby Street, Maroochydore

Sunshine Coast, Reg Qld & NT Chris.McKillop@htw.com.au

Management Rights Transactions Conveyancing and Property Law Estate Planning December, 2018 | ResortNews

Australia’s largest independent property advisory group

PROPERTY

To this end the Sunshine Coast Regional Council is also planning light rail by 2025 and a Business and Technology Park adjacent to the new university. Mosaic Property Group is just one developer proving the old axiom that private investment flows from public investment. Mosaic, and is confident about the future prospects for the market. “Years of consideration and research have gone into this strategy and we’ve been closely watching the local economy and its growth as a regional city,” said Mosaic managing director Brook Monahan. Mosaic has two residential developments at Kings Beach, Caloundra, and another due for completion at the end of 2018 at Coolum Beach. It’s recently launched Avalon; a luxury, 87-apartment, $106 million development on the riverfront in Maroochydore will include an artisan cafe, and be another step in the company’s long-term strategy to invest in the coast, based on the region’s 20-year economic plan, infrastructure and jobs growth, and an undersupply of luxury apartments. The company says sales in Avalon have been strong, with locals and residents from Brisbane, Sydney and Melbourne buying either as an investment, a holiday

home, or permanent sea change. Their second Coolum Beach project, First Bay, is set to launch in April 2019.

negative impacts of Airbnb and ameliorating them whilst not negatively impacting upon the management rights sector.

“The raft of infrastructure projects that are delivering exceptional lifestyles are game changers,” adds Peter Brewer. “Astute property investors who recognise what is happening, and take action to secure the best located property they can afford, will reap the rewards of their foresight.”

“External short-stay booking operations, such as Airbnb, are both a threat and an opportunity. As a “channel” for astute management rights operators Airbnb has a certain attraction and is proactively being used by some clients as part of their marketing mix.

A prime example of this is the Shakespeare Property Group that invested over $100 million in the Novotel Twin Waters property, and their announcement of the construction of a new $8 million convention centre at the hotel. While the big-ticket projects appear to be moving in the right direction, we queried whether the government is as supportive in terms of business and operational development? “Yes and no,” said Michael Kleischmidt. “The current Sunshine Coast council has been pro development as part of its strategy to put in place larger projects which will drive development and investment throughout the rest of the local. Conversely, there are some signs of council’s mis-appreciation of the difference between Airbnb and traditional management rights means that Council is on the back foot in relation to the

For other clients it represents a significant problem including in the traditional areas of concern being lack of guest supervision and increased costs for the balance of the letting pool as Lots are taken out of the pool for Airbnb letting. Lyn Pearsall agrees: “There is a reasonable level of support at state and federal levels with some significant road infrastructure projects in progress. With the anticipated future population growth expected in the region however, stakeholders will need to lobby hard to ensure the region delivers adequate infrastructure to cope with additional demand.” And when asked how they view the market post 2019, the experts agreed: Slightly weaker based on the anticipated East Coast down-turn that will impact on development approvals and construction meaning less off-the-plan complexes coming onto the

PROPERTY

market. If there is a reduction in consumer spending and domestic travel then the competition for prime holiday and permanent management rights complexes is likely to go up while the demand for secondary (and below) holiday complexes is likely to diminish. The potential for bed taxes has caused some concern and clear statements in relation to that issue by the local authorities in the region would remove some uncertainty. In our experience the Sunshine Coast region has experienced a strong recovery in holiday lets with some visitors who had previously stayed away due to adverse weather events or economic conditions, now beginning to return. Direct flights to the Sunshine Coast regional Airport from New Zealand (Auckland) have provided some excellent results and once the Airport expansion is completed then significant opportunities are expected to arise depending on where direct flights in and out of the Airport are negotiated for. The Sunshine Coast should continue to perform strongly throughout 2019/20 with plenty of large-scale projects feeding employment opportunities and population growth. ResortNews | December, 2018

Joanne Apartments:

making it personal complex offers two- and three-bedroom apartments sleeping up to six people in the larger units, and all have full or partial sea views and a private balcony from where one can sit and watch the ships sail by, the wind surfers and paddle boarders catching waves and between May and the end of October one can even see whales breaching.

By Trish Riley, Editor

“We make a living by what we get. We make a life by what we give” – Winston Churchill It really isn’t surprising that Leslie, one half of the dynamic management team of Don and Leslie Baker of Joanne Apartments, is often referred to as ‘Joanne’. Who, other than the doting ‘home-owner’ and apparent namesake would be baking every resident and visitor shortbread and Christmas cakes, and treating them as guests in her home? Except, it’s not a private home, Joanne Apartments are two, three-storey apartment buildings offering beachfront accommodation in the heart

December, 2018 | ResortNews

Leslie and Don Baker

of scenic Caloundra, and Don and Leslie have been the resident managers since August 2016. And yes, Leslie bakes shortbread cookies (or Christmas cakes in December) for every single unit.

Built in the late 1970s and named after the developer’s daughter, Joanne Apartments is renowned for more than its slightly atypical name and the warm and friendly management team. The distinguished

PROFILES

Each unit is air-conditioned and fully self-contained, with a full kitchen, laundry facilities, linen, television and a DVD as well as free high-speed wifi and Foxtel. There are two swimming pools; one of which is heated in winter, ample garden space and across the road in Happy Valley Park there is a fabulous kids playground and free electric barbecues.

“I also like to say that we offer a free gym workout,” jokes Leslie. “Being a walk-up facility, guests don’t have to forego exercise while they’re on holiday. “Generally, once our guests are settled they tend to leave their cars in secure undercover parking and walk to the nearby beaches, parks, shops, cinemas, restaurants and bars. Located just one block from Bulcock Street and beach, and the famous Sunday markets, Joanne Apartments are also just a five-minute walk along the Esplanade board walk to

Kings Beach ocean pool and Caloundra headland. The stunning coastal paths and well-maintained boardwalks allow daily life to unfold in a haze of sand, scooter-happy trails, grassy picnic spots and family football or cricket matches. There are a range of fantastic things to do in Caloundra, and it all takes place to the constant soundtrack of surf in the background. “We became aware of management rights several years ago,” says Leslie, “and always thought it looked like

such great work. “Then in 2016, while on holiday in Caloundra, we were out for a walk and came across a sign that read: ‘Lifestyle for sale’. It really didn’t take much more than that. “Don was in a job he no longer enjoyed and my work was exceptionally stressful – so we made the decision, spoke with Lindsay Petty, now of Australian Resort Management Sales, and have never looked back.”

was in agricultural sales and marketing. “While fairly removed from management rights, our joint experience has been really useful with the practical side of the business,” says Leslie. “We had a steep learning curve initially, particularly with the technical and marketing side of things. Everything changes so quickly it’s hard to keep up, but we’re happy with the results.

Leslie hails from a career in fraud investigation with Air New Zealand and VISA, while Don’s background

“Of the 36 apartments, eight are permanently let and the balance are short-term or lock up and leave,” adds Leslie.

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We are pleased to be advisors to Don and Leslie regarding their business and to assist in achieving their aims.

PROFILES

ResortNews | December, 2018

“We have built up the business a lot, and have more apartments on the rent roll. Our focus now is on growing occupancy and figuring out how to do better. Fortunately, we get on very well with the owners and the two body corporates, so are doublyblessed.” “It is busy, particularly during the holiday season, but it’s not stressful,” says Leslie. “We work a lot of hours, seven-days a week, but that’s because we choose to make that level of service available.

And it shows. Don and Leslie have increased the Booking. com rating from 8.6 to 9.1 and they recently received a Recognition of Excellence award from Hotels Combined. According to the many repeat guests, Joanne Apartments is a “fabulous place to relax and unwind, spend quality time with the children or to have a romantic getaway.” It is also in “the best location, and offers great value for money”. “Management rights is more than just a great job,” says Leslie, “the business

opportunity offers a fantastic way of life and a good income. As a ‘people-person’ however, the best thing about it is the wonderful people we have met. Don and I have developed a lot of great friendships since moving here from Brisbane.” Their advice to prospective managers: “Keep on smiling. Be nice to everyone, have a laugh -you just have to. Take several short breaks during the year so you stay fresh, and don’t be afraid to go that extra mile (back to the scrumptious baking again).

“Be sure to get together with other managers in the area on a regular basis. Apart from the support and knowledge that you are all dealing with the same sort of problems, you will also be able to lean on them or borrow items in an emergency. Camaraderie in this business is important.” Caloundra is 90 kilometres north of the Brisbane central business district and accessible from the Bruce Highway, the Landsborough railway station (21km away) and the Caloundra bus station.

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We are proud of our association with Don and Leslie and wish them every success in their business at Joanne Apartments

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Call Lindsay Petty

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www.managementrights.com December, 2018 | ResortNews

PROFILES

Emerald Sands:

A hidden treasure

By Trish Riley Riley, Editor

Nestled on a quiet side street on the soughtafter border be-tween Surfers Paradise and Broadbeach, Emerald Sands Holiday Apartments can best be described as a hidden gem, and few gemstones are surrounded by as much allure as emeralds. St. Hildegard of Bingen, the noted lithologist, declared, “All the green of nature is concentrated within the emerald”, and true to its namesake, Emerald Sands stands just metres away from the pristine Gold Coast surf beaches amidst an array of indigenous trees and landscaped topical gardens. “We searched for over a year, against some very strict criteria, before finding this building,” says Wayne Thompson, resident manager of Emerald Sands. Wayne and his wife Cat have managed the operation for three years and are justifiably proud of

PROFILES

the successful short-stay operation. Diminutive in comparison with some of its high-rise neighbours, Emerald Sands is certainly not short on history. According to Wayne, the building stands exactly where the original house and milking sheds of the first dairy farm in the 1940s, and the cattle used to be driven north along the beach towards, what is now Surfers Paradise, to the feed lots. And while there is no longer livestock anywhere to be seen, Emerald Sands does offer 18 spacious one- or two-bedroom apartments, all of which have been designed to take advantage of the beachside location and the expansive ocean views. Floors seven and eight feature larger, split-level apartments with airy living space downstairs and the bedrooms upstairs. Every apartment is well insulated against noise and fully self-contained, offering an ample kitchen, full laundry and private balcony, as well as all the mod-cons one would expect in holiday accommodation. ResortNews | December, 2018

Catering largely for couples and a more mature market, other facilities include a heated pool, separate spa, a private barbecue and informal entertainment area and private undercover parking. Security is assured by the use of a security elevator and intercom system as well as 24hour CCTV security inside and outside the building. Emerald Sands is also only a short stroll away from every kind of dining experience you might want, supermarkets and shopping, the Surfers Paradise beachfront markets and kilometres of parklands and golden beaches. With the Gold Coast home to a range of attractions, Cat and Wayne have teamed up with Experience Oz to provide guests with a range of wellorganised day tours, activities, jet boating, cruises, theme parks and things to do – they even offer boogie-board hire. “When I retired, the plan was for us to buy a caravan park,” says Wayne “but the more we looked into management

rights, the more we realised the advantages for the whole family. “I have an industrial business background, and Cat is an accountant. Having run a very successful mining supply company previously, I envisaged that I would take care of managing the business and Cat would run the office: but it’s the other way around. “Cat loves ensuring that the building, and every unit, is in tip-top condition and that our guests have a vacation that is as enjoyable and relaxing as possible. I’ve ended up running the office. In the three years of operation, the hard-working couple has completed significant renovations, lifted income by 25 percent and received a ‘Most Improved Reviews’ from Trip Advisor. The Booking.com rating sits at 8.9.

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“We pride ourselves on the number of return guests we have,” adds Wayne.

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December, 2018 | ResortNews

PROFILES

When asked if he had any advice for prospective managers, Wayne is emphatic: “Communication is key. It’s really important to unite owner occupiers and investors so that you have a shared vision for the property.

good business model for

"So saying, you can’t be everyone’s best mate, stay neutral and do what’s best for the ‘farm’.

generally takes two years to get

“Management rights is a very

too late to sell."

couples and people not quite ready to retire, but have a clear idea of what you want from it and understand that every building is different. “Go into it with a plan. It it where you want to be, review the operation after five and exit by eight – a lot of people leave it

Communication is key. It’s really important to unite owner occupiers and investors so that you have a shared vision for the property

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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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Listed below are the stages of the process that ensure only the best industry suppliers can participate in the Preferred Supplier Programme:

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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).

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. ■

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December, 2018 | ResortNews

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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. 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.

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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).

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d an d o io ad m er lo de ial p wn tr do a vi

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Gold Coast Paul Geary

0401 992 632

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Serving the Gold Coast

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office@emerlite.com.au www.emerlite.com.au

QLD LIC. 9107 NSW LIC. EC29426

Holiday Resident Puma Light No trust accounting

Year 1 $1,100 Year 1 $990

0422 009 731

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0401 141 276

Year 2+ $599 Year 2+ $440

Motels, caravan parks etc. from $220 to $330 p.a.

Phone (07) 5446 2135

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PREFERRED SUPPLIER DIRECTORY

Townsville Brett Sievers

Australia and New Zealand Banking Group Limited (ANZ) ABN 11 005 357 522. Australian Credit Licence Number 234527. ANZ’s colour blue is a trade mark of ANZ. Item No. 75143 06.2013 W349544

The sign of an Industry Specialist.

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Brisbane: 07 3252 2219 â&#x20AC;¢ Gold Coast: 07 5576 7059 enquiries@pcsfinance.com.au

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FURNITURE - OUTDOOR

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- NORTH QUEENSLAND -

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VISIT OUR SHOWROOM AT: Unit 4, No. 2 Cnr Captain Cook Drive and Kendor St, Arundel, QLD

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Buy direct from our friendly family business and save... ACL (364 314)

W I D E

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FURNITURE

A U S T R A L I A

Est. 1987

INSURANCE

Commercial Specialist Direct Importers Sales, Service & Repairs Â¾LARGEST RANGEÂ¾FURNITURE Â¾UMBRELLASÂ¾SUN LOUNGES Cnr Main Drive & Nicklin Way, Warana, Qld 4575 | Ph 07 5493 4277 Acres Centre, 1/37 Gibson Rd Noosaville 4566 | Ph 07 5449 9336

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GLASS INSTALLATION/REPAIRS

fresh finance... Mike Phipps

0448 813 090

mike@mikephippsfinance.com.au

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0477 776 859

cameron@mikephippsfinance.com.au

Specialising in furniture for hotels, motels, serviced apartments, resorts and refurbishments

4/31 Mary Street, Noosaville, Qld - 07 5470 2194

1300 876 055

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TAILORED FURNITURE SOLUTIONS

Red

F I N A N C E

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PREFERRED SUPPLIER DIRECTORY

ResortNews | December, 2018

Whatever, Wherever, Whenever!

The sign of an Industry Specialist.

AUSTRALIA’S LEADING MANAGEMENT RIGHTS BROKER

www.accomnews.com.au/business-directory

Specialising in management rights sales Australia wide

LINEN &/OR LINEN GOODS

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www.accomnews.com.au/ business-directory

07 5437 8544

ref2076-0518-1.1

AUSTRALIA’S LEADER IN MANAGEMENT RIGHTS, MOTEL, HOTEL & CARAVAN PARK SALES

info@mainlinen.com MAIL BOXES

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P: (07) 5596 1440 E: info@sunni.com.au

Call us today on (07) 3720 6000 or email: quotes.brisbane@mga.com

Narelle Filmer 0459 229 744

MANAGEMENT RIGHTS AGENTS

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Property Bridge

stry e indu Leading insurance broker to th

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Post:

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Bobo Qi 0438 027 771

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The sign of an Industry Specialist. www.accomnews.com.au/ business-directory

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www.rcabusinessbrokers.com.au

In All Areas . . .

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calvinbaileymanagementrights.com.au

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Wayne & Linda Stoll 0452 181 505

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December, 2018 | ResortNews

Andrew Morgan m 0417 608 041 p 07 4953 1611 | w qthb.com.au

Think – Buying or Selling Management Rights

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MGA was founded in 1975 and has since opened up 38 offices around Australia, offering Insurance products for:

Call 1800 688 820

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Phone 07 55 930 007 www.raas.com.au

Matt Campbell 0410 343 219 Barry Davies 0438 554 995 contact@managementrights.com

Aust ralian Resort M anagem ent S ales

www.managementrights.com

PREFERRED SUPPLIER DIRECTORY

• Painting • Grounds Maintenance & Landscaping

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Call Now 07 3206 6721 www.terminett.com

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RIGHTS AND MOTEL

EXPERTS EXPERIENCE COUNTS We have the largest team of specialists across Queensland and New South Wales, covering management rights and motels businesses.

Find them online Wherever, Whenever!

GET THE RIGHT ADVICE

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SECURITY SYSTEMS &/OR CONSULTANTS

Don’t put your accommodation industry investment at risk. Our industry knowledge is second to none.

Specialising in:  Hi-Rise Repaints  Large Complexes  Interior and Exterior  Hi-Pressure Cleaning  Concrete Spalling Repair (Concrete Cancer)  Waterproofing & Roof Membranes

Visit hyneslegal.com.au/subscribe or call +61 7 3193 0500 info@hyneslegal.com.au www.hyneslegal.com.au

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Leading Sunshine Coast Law Firm

COOLANGATTA TO BEENLEIGH

SIGNS

The sign of an Industry Specialist. www.amalgamatedgroup.com.au info@amalgamatedgroup.com.au

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PREFERRED SUPPLIER DIRECTORY

Need advice regarding: • Buying / Selling • Legal due diligence reports • Variations including top up of term • Renewals/Extensions • Management & Letting Agreements • Body Corporate Issues • Off Plan Developments Get it right the first time…call

Griffiths Parry Lawyers T: 5390 1400 www.gplaw.com.au

ResortNews | December, 2018

SWIMMING POOL SUPPLIES/REPAIRS

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Classes from Coolangatta to Cairns TRAINED BY THE EXPERTS

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Australian Valuers have proven to be the No.1 choice for this highly specialised work. Our valuation team operate on a national level providing advice to the majority of Australia’s Banks

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Appliance Rentals The Management Rights Lawyers

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New name... Bigger range...

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with the same great

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service

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SPECIALIST EXPERIENCE IN MANAGEMENT RIGHTS Short Punch & Greatorix Cnr Bundall Rd & Crombie Ave Surfers Paradise PO Box 5164, GCMC, Bundall QLD 9726 Fax: 5539 8745 Email: mnp@spglawers.com.au

Call Martin Punch on 5570 9304

CERVETTO COURTICE

Noosa 5449 7855 | Maroochydore 5443 2111 Caloundra 5438 1588 Personal Service. Trusted Advice.

Gold Coast: (07) 5592 0266 w w w. L M g o l d s t a r. c o m . a u

• equipment • repairs • regular servicing • maintenance • chemical supplies • swimming aids & toys

153 Cooyar Street, Noosa Junction (07) 5447 3896 shop@noosapoolandspa.com

The sign of Whatever, an Industry Wherever, Specialist. Whenever!

L AW Y E R S

Q U E E N S L A N D

Management Rights Sales & Purchases Phone: (07) 3202 2266 Fax: (07) 3812 1128 Email: cervetto@gil.com.au

Flood Legal offers all the experience & expertise of a big firm while delivering accessible, personal & affordable service that comes with dealing with a small firm

Reward your best suppliers by nominating them for the Preferred Supplier Programme.

Call Sharon Flood, Director - 0459 070 871 or 02 6674 5118 sharon.flood@floodlegal.com.au - www.floodlegal.com.au

The sign of an Industry Specialist. December, 2018 | ResortNews

Simply send their details with a short testimonial to: psp@resortpublishing.com.au or call (07) 5440 5322

They’ll thank you for it! PREFERRED SUPPLIER DIRECTORY