Resort News - February 2019

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Registered by Australia Post Print Post No. 100023799

Issue 270 | February 2019 | $13.75 inc. GST

The Monthly Magazine for Accommodation Industry Professionals

www.accomnews.com.au

Brisbane property: Catching the eye of savvy investors management rights • hotels • motels • resorts • holiday parks • time share • hosted We specialise in furniture for hotels, motels, serviced apartments, resorts and refurbishments.

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

Dennis Clark

Founder

MDIA


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

Motel

Sales Specialist

“A website for buyers/sellers such as Accom Properties has been well overdue for years. Buyers don’t want to view multiple websites to see whats for sale in a particular region or town, they want all properties on the market with relevant criteria at their fingertips now and you’ve been able to provide a platform which is fantastic. Well done.” – Brett Salter, National Accommodation Manager, ALH Group Limited

www.accomproperties.com.au


MANAGEMENT RIGHTS MOTELS REAL ESTATE SPECIAL PROJECTS PROJECT MARKETING

BRISBANE

HEART OF THE CITY MR This is a little gold mine with minimal work and right in the middle of everything.

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

Nett: $158,500

Total Price: $1,185,000

GOLD COAST

ROBINA PERMANENT WITH GOLF COURSE FRONTAGE Very tidy Permanent with a great income. Beautifully renovated 3 bedroom 2 bathroom Villa with a massive Courtyard and a double lock up garage. The kitchen has stone bench tops and is absolutely gorgeous and big!!! Everything has been finished off to perfection. Office is attached. The current Managers have done ALOT of work on the complex and it presents beautifully. Great Body Corporate. There is also 4 outside rentals included Blue sky with renovations on units if you are a handyman.

Kerrie Lush 0416 084 693 – kerrie@raas.com.au

Nett: $140,000

Total Price: $1,252,000 BRISBANE

PRIME BRISBANE SOUTH LOCATION A compact and modern complex in a peaceful location. With one of the nicest free standing four bedroom homes for the Manager to reside it is a must see opportunity. The business consists of a mix of three and four bedroom townhouses finished to a high standard and are popular with residents. The caretaking can be handled successfully by a single operator with the rentals only taking a few hours per week. There are NO SET office hours in the Agreements.

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

Nett: $115,000

Total Price: $1,072,000

NORTH QUEENSLAND

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

Nett: $225,863

GROW YOUR BUSINESS

INCREASE YOUR INCOME

Total Price: $1,565,000

PROTECT YOUR INVESTMENT

Phone 07 5593 0007 www.raasrights.com.au


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 February issue Front Desk Ready, set, oh! .......................................................................... 05

Advertising Conditions

News

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.

Industry Will the royal commission fix Australia’s broken system?........................................................................................10 Jake Clarke – the undisputed doyen of management rights ...........................................................12

Disclaimer 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. © 2019 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.

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

EDITOR Trish Riley, editor@accomnews.com.au

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Training and accreditation: A long-term industry investment .................................................................................14 The administrative fund vs capital works fund ............15 The devil is in the defects ....................................................16 Unity is strength.......................................................................16 What lies ahead for 2019?.....................................................18 Don’t forget to exercise your option! .............................. 20 Google’s “You were told!” ......................................................21 Loan conditions, reviews and refinancing It doesn’t have to be a nightmare .................................... 22 Bedding has a limit .................................................................24 What guests really want.. ......................................................24 Is a poor mobile user experience losing you direct bookings? .................................................................................. 25

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Tourism Tourism Report ........................................................................ 26 Tourism International: Global mega-trends are shaping new imperatives for travel ................................. 28 Treehouse Lodge Resort, Iquitos, Peru.......................... 29 Events & Appointments

STAFF WRITERS Kate Jackson

People ......................................................................................... 30

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

Events.......................................................................................... 32

ADVERTISING Stewart Shimmin, advertising@accomnews.com.au SUBSCRIPTIONS Gavin Bill, subscriptions@accomnews.com.au CONTRIBUTORS Andrew Morgan, Arvo Elias, Chris Irons, Col Myers, Dave Wright, Jonathan Hanaghan, Matthew Manz, Mike Phipps, Simon Barnard, and Trevor Rawnsley.

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Commercially funded supplier profile or supplier case study 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!

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News ............................................................................................ 34 Property Resort News Sales Report .................................................. 36 New Manager Profile: Diamond Cove Resort, Mermaid Beach ....................................................................... 36 Brisbane Property: Catching the eye of savvy investors ..................................................................................... 42

KEY Supplier information or content

Developments

42 FRONT DESK

Profiles Moorings on Cavill: Looking through fresh eyes ........47 Bayview Shores: the epitome of grand .......................... 50 The Preferred Supplier Directory...............................53 ResortNews | February, 2019


Ready, set, oh! I think perhaps the need to get the January issue of Resort News prepared for early new year distribution left me under the misconception that I had endless time to prepare for February. I was wrong. The days quickly ran into weeks, and despite my best intentions, ‘stuff’ got in the way and the deadlines loomed. If there is good to come of it however, and there always is, it’s that I became increasingly more aware of the necessity for time management and being better prepared – a definitive trait shared by both pairs of onsite managers referenced in this month’s property profiles (Pg……) Both couples have committed themselves consciously to the efficient management of their buildings (and business), wading through their ‘to-do’ lists, often as a tag-team, and still managing to be warm and welcoming to those around them. To get ahead in your day, business, or even to complete a project successfully, one has to learn to consistently focus on the activities that add the most benefit to your business and your guests. The better you are at maintaining focus and managing your time, the more you will achieve, and the easier it will be for you to establish.

Trish Riley, Editor editor@accomnews.com.au Not only does effective time management allow you to get better results at work, it also helps you withstand stress and live a more fulfilling life outside of work. Addressing issues timeously is also the key take-away message in the articles on pages …., ….. and ……. Don’t wait until the project or issue has become a real problem. Simple strategies for effective time management include starting your day with a clear focus about what you want to achieve that day and what you absolutely must accomplish. Be lear on this purpose before you check your email and start responding to queries and resolving issues. Have a dynamic task-list – or at least an app that keeps track of your to-do items, and focus on high-value activities. Before you start something new, identify the activity that would have the most positive effect on your business, your project, your

team, and your guest if you were to deal with it right now. Resist the temptation to clear smaller, unimportant items first. Start with what is most important. Minimise interruptions. The more uninterrupted time you get during the day to work on important tasks, the more effective you’ll be. Identify the activities that tend to disrupt your work, and find a solution. And the one that’s hardest for me when the sun is shining and the water is beckoning… stop procrastinating. If, like me, you have difficulties staying focused or tend to procrastinate, you may benefit from creating an external commitment (or deadline) for yourself. In the hospitality industry this next point is probably moot. Limit multi-tasking

where possible. Many of us multi-task and believe we’re effective when we do so, but evidence suggests that we can’t effectively focus on more than one thing at a time. To get the best out of your time try to plan your day in blocks and set specific time aside for meetings, returning calls and emails and for doing any detailed planning or analysis work at your desk. I know, it’s not that simple when you’re short-staffed, the clean linen hasn’t arrived and the pool pump is broken. In that case, just breathe – smile and know that tomorrow is another day. We hope you will enjoy reading this issue, please remember your feedback and/ or suggestions are always welcome.

Our Selection Centres are truly unique and have been created to inspire and inform builders, developers, architects and plumbers within the construction industry. STAPYLTON

SUNSHINE COAST

February, 2019 | ResortNews

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Hospitality king faces $25m lawsuit for underpayment of workers

Justin Hemmes’ billiondollar Merivale hospitality empire is facing a potential class action over claims it underpaid workers for years in breach of workplace laws. Last week, the Fair Work Commission ruled that the company must start paying its 3000-strong workforce under the current hospitality award from March. It terminated Merivale’s longexpired 2007 Employee Collective Agreement that meant it was not required to pay almost 3,000 staff overtime or full penalty rates for nearly a decade. The employee agreement expired on 21 December 2012. For around 12 years, the Merivale Group – which owns and operates more than 70 venues across Sydney including the Coogee Pavilion and The Ivy – has operated a Work Choices-era agreement with lower than current

Property taxes in 2019: What to watch and prepare for

award rates of pay and almost non-existent penalty rates for weekends and public holidays. The agreement will now be phased out, despite Merivale’s claims that paying its staff under the current award could impact the viability of the group’s operations. Law firm Adero has confirmed it is investigating legal action against Merivale after alleging the company misclassified workers and failed to pay them the legal hourly rate even under its long-expired Work Choices enterprise agreement. Lawyers are reportedly seeking redress of up to $25 million for underpayments, along with financial damages claims for up to $728,000. A potential lawsuit would raise complex legal issues over rates owed in expired agreements made before the Fair Work Act. Justin Hemmes, head of the billion-dollar hospitality empire, has an estimated personal net fortune of $300 million.

Tax policy and tax clampdowns will be a key focus for the federal government in 2019, whether it be Liberal or Labor. However, the current government has been chipping away at property taxes for the last two years, as part of their housing affordability changes. Many of the housing affordability moves have directly targeted investors, because of the competition they pose to owner-occupiers. So far, some changes to the way property taxes work have been headline news, and some have crept under the radar. Here’s what you need to know to maximise cash flow, minimise

liabilities, and be ready for what might come your way in 2019.

What’s changed? Deductions banned and limited From 1 July 2017, the government disallowed deductions for travel expenses to investment properties. Further, for properties bought after 9 May 2017, the government has limited plant and equipment depreciation deductions to only those expenses directly incurred by investors. Vacancy charges Foreign owners of residential properties are required to pay an annual vacancy fee if their place is not occupied or rented out for more than 183 days - or six months - per year.

Last major standing: Rate increase confirmed

New record set in weekly rentals data

After saving its 930,000 customers an estimated $70m since September, the last of the big four banks has confirmed it is to increase rates.

New data has found the weekly rental rate nationwide saw the lowest ever movement ever since national rental data was collected.

Quarterly Rental Review report. The combined capital cities experienced a decline of 0.2 of a percentage point to $462 per week, while combined regionals rose by 0.2 of a percentage point to $373 per week.

Weekly rents declined by 0.1 of a percentage point across Australia to the median of $433 per week, according to Corelogic’s December 2018

The national and combined capital city rent movement is the lowest movement ever since data began being collected from back in 2005.

Following in the footsteps of ANZ, Westpac and CBA, NAB has become the fourth and final major bank in Australia to increase rates.

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Owner occupiers with P&I home loans will see rates increase by 0.12 percent, while investors and interest only borrowers will face a rise of 0.16 percent. Both rates are effective as from 31 January.

NEWS

ResortNews | February, 2019


The vacancy charge, administered by the ATO, came into effect retroactively from 7:30PM (AEST) on 9 May 2017. Clearance requirements From 1 July 2017, vendors selling real property of a contract price of $750,000 and above, down from the previous threshold of $2 million, are subject to a foreign resident capital gains withholding tax rate of 12.5 percent unless they are able to prove their residency status with a clearance certificate from the ATO. Australian resident vendors will have to provide a clearance certificate to the purchaser prior to settlement to avoid the 12.5 percent withholding. This is a complex system for vendors and buyers alike.

What’s to come? Housing affordability is likely to be another high priority for the federal government in its April budget, particularly as it looks to secure votes before the general election. However, it’s Labor’s plans for property that will be the headline tax changes next

year, should the federal opposition come into power.

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

Negative gearing If elected, the Labor party will limit negative gearing to new housing from a date that is yet to be determined. It will be after the next federal election, which will fall in the first half of 2019. Labor’s negative gearing restrictions will apply to investments outside of property also, which some tax experts believe will soften any potential blows to Australian markets. Capital gains tax 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?

The Labor party also plans to halve the capital gains discount for all assets purchased after a yet-to-be-determined date after the next election. In effect, this will reduce the capital gains tax discount for assets that are held longer than 12 months from 50 percent to 25 percent.

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.

On both its negative gearing and capitals gains tax measures, the changes will be grandfathered, which means they won’t apply retrospectively to those who currently hold investment properties.

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

Expert knowledge and superior service, with experience built over 35 years in the furniture industry. Specialising in furniture for hotels, motels, serviced apartments, resorts and refurbishments

Services Include • Furniture Design • Budget Analysis • Procurement • Project Management • Manufacture of commercial furniture • In house quality control management • Freight management and transportation • Full installation • Commercial warranties • Satisfaction guaranteed after sales service

Call Dennis Clark now on 0421 384 212 to discuss your requirements

February, 2019 | ResortNews

hotelinteriors.com.au • 1300 876 055 NEWS

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What apartment owners should be aware of following Opal controversy The cracked panel inside Sydney's Opal Tower has not only brought about talk of new legislation from the NSW Government, but also highlighted a common predicament for apartment owners in the state. If anything can be taken away from Sydney’s ongoing Opal Tower saga, it is that there is more than one side to the story. Questions have been asked to and from developers, builders, and owners in the wake of the cracked panel which prompted the Christmas Eve evacuation of the building. While the ensuing investigation has drawn intense media scrutiny, finding defects is not an uncommon scenario for apartment owners in NSW. Research conducted by UNSW City Futures Research Centre in 2012 found 72 percent of apartment buildings in NSW had defects, as reported by owners. Further to this, 85 percent of buildings completed after the year 2000 had defects reported by their owners According to the report, the most common defects reported by owners in apartment blocks to be internal water leaks (42 percent), cracking to internal or external structures (42 percent), water penetration from outside (40 percent), guttering faults (25 percent), defective roof

can be done by the real estate agent on the owner’s behalf if the property is leased out. NSW Property Owners Association president John Gilmovich said in the case of the Opal Tower, it was up to the owners corporation to seek revenue from the builder.

coverings (23 percent), defective plumbing (22 percent), and tiling problems (20 percent). For owner corporations in NSW, the course of action after discovering defects can be dictated by the size of the building. Buildings three stories or under are protected by the Home Building Compensation Fund, , which requires licensed contractors undertaking residential work valued at $20,000 to take out insurance cover. The policy covers repair costs for major defects claimable for six years, and non-major defects claimable for a period of up to two years. In Queensland, owners are encouraged seek Home Warranty Insurance through the Queensland Building and Construction Commission, while in Victoria, Domestic Building Insurance is offered through the Victorian Managed Insurance Authority. At the beginning of 2018, the NSW Government introduced the Strata Building Bond and Inspections Scheme to provide

Gold Coast’s blowout

similar cover for buildings that are four stories and over. Under the scheme, building contracts for residential or partially residential properties created after January 1, 2018 need to include a building bond by the developer and mandatory defect inspections and reports on the development by an independent building inspector. For owners not covered by either of these schemes, as in the case of the Opal Tower, the process of repairing defects is not as straightforward. Building contracts entered in to after 2012 have a statutory warranty period of six years for major defects and two years for other defects. The statutory warranty period for building contracts entered into before 2012 is seven years.

Reporting defects All common property defects within strata buildings are reported to the strata manager, who then passes them onto the builder. Internal lot defects are reported directly to the builder, which

Uber plans flying taxi service by 2023

The Gold Coast’s population will reach one million by 2045 with new figures showing a blowout in projected growth for the city.

Ridesharing giant Uber announced plans for a “flying taxi” service earmarked to take-off by 2023.

New figures released by Treasury predict the Coast will grow by 14,670 people annually for the next 25 years, up from the average of around 10,000 per year. The age of residents is also likely to change with the number of people aged 65 and older tipped to increase from 15 percent of the population to 20 percent by 2041.

After partnering with NASA, Uber unveiled its flying car pro-totype at the Uber Elevate Sum-mit in Los Angeles while discussing the future of its flying service. The service to be known as UberAIR, and will see the company partner with three “launch cities” to bring the service to market.

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“If we are talking defects that have not only affected one apartment, but forced an evacuation of a property where a common area is used, the owners corporation would be seeking revenue from the original builder or developer,” he said. “It can be that the developer goes to the builder, who then goes to the tradies, with everything going back down that channel.”

Contacting the Department of Fair Trading Apartment owners can make a formal complaint to the Department of Fair Trading if the builder refuses to have defects rectified, or has not rectified them to an acceptable standard.

Taking legal action If the builder/contractor fails to comply with a Rectification order from a Fair Trading Inspector, the Owners Corporation (for common property defects) or the lot owner (for lot owner defects) will need to proceed with legal action through the NSW Civil and Administrative Tribunal against the builder. Mr Gilmovich said while court was often viewed as the “worst case scenario” for apartment owners, it was also fairly common within NSW.

International visitor arrivals

Australia welcomed 9.2 million international visitors for the year ending October 2018. This figure is up 5.2 percent representing an extra 457,000 visitors.

ResortNews | February, 2019


Hotel sales hit six-year low The value of Australian hotel deals hit a sixyear low in 2018, new figures from Colliers International have revealed.

included the Park Regis City Centre in Sydney, for $54.1 million and the Pullman on the Park in Melbourne for $156 million. And the Northern Territory saw its largest single investment since 2010 with Delaware North’s acquisition of Sky City for $188 million.

Transactions for the sector totalled $1.8 billion last year as Chinese investment dried up and a limited number of flagship properties came onto the market.

Colliers expects deal flow to pick up across 2019 as owners look to sell near the top of the market cycle or get out before the next big supply boom requires them to spend big on renovations to compete with new properties. New hotel openings will add 6500 rooms to the national inventory in 2019.

The 2018 sales were 15.7 per cent lower than those of 2017 and less than half the $3.8 billion total sales recorded in 2015, when five-star CBD hotels like the Westin Sydney and Sydney Hilton changed hands for more than $440 million each. Last year 37 hotels valued at $5 million or more changed hands, the lowest number of deals since 2012. While off shore investors continued to dominate the Australian market, accounting for two thirds of hotel transaction volumes in 2018, Chinese buyers were notably down on previous years. Gus Moors, head of hotels for Australia at Colliers, said an inability to get capital out of China and hotels considered not part of the Chinese government’s “belt and road” investment philosophy had put the brakes on direct investment, although Chinese capital was likely still funding the sector indirectly. “It’s getting harder to peel apart the fund manager acquisitions

February, 2019 | ResortNews

and work out where the equity is coming from. We suspect there is Chinese money involved in many of these cases,” he told The Australian Financial Review. There was also significant investment in 2018 from other Asian nations, as well as Britain, according to Moors. “There was a notable broadening of the capital base with investors sourced from Singapore, Malaysia, Thailand, Middle East, Hong Kong, India and the United Kingdom,” he said.

including the Watermark Gold Coast for $90 million, the ibis Styles Brisbane for $94 million and the Novotel Twin Waters for $88.5 million. In New South Wales and Victoria, high-profile sales

“We expect to see more development sales over the coming year with projects currently being marketed in Canberra, Sydney, Adelaide and Melbourne,” Colliers International hotels director Karen Wales said.

QLD - NSW - VIC - WA

“Locally domiciled and global investment funds were the most active buyer group with volumes totalling more than $1 billion and with a number of new funds targeting the sector.” Queensland was the most active investment market, with $491 million changing hands

NEWS

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Will the royal commission fix

Australia’s broken system? customers, the outrageous deceptions of regulators and conscious decisions to put the interests of institutions ahead of their clients.

By Trish Riley, Editor

Despite some alarmist messaging about the royal commission triggering a housing bust, Kenneth Hayne’s final report into the finance sector did not recommend the banks further tighten lending standards, and it is unlikely that it will further affect the property market or force an unnecessary credit squeeze. In his lengthy report, Commissioner Hayne acknowledged the steps taken by the banks to strengthen their home lending practices and to reduce their reliance on the household expenditure measure (HEM). “I consider that the steps that I have referred to – steps taken by banks to strengthen their home lending practices and to reduce their reliance on the HEM – are being taken with a view to improving compliance with the responsible lending provisions of the National Consumer Credit Protection Act,” Hayne wrote. “If this results in a ‘tightening’ of credit, it is the consequence of complying with the law as it has stood since the [Consumer Protection] Act

The report has referred several institutions to ASIC for possible criminal charges, but will anyone end up behind bars for it? The royal commission is an inquiry, not an inquisition.

Commissioner Kenneth Haynes

came into operation.” In the lead up to the report’s release, Treasurer Josh Frydenberg had called access to finance “the lifeblood of the economy”.

The credit question Hayne echoed recent comments by Westpac chief executive Brian Hartzer that the royal commission had not made banks scared to lend. “I think it’s time everyone takes a deep breath and looks at the facts,” Hartzer said. “While there are certainly powerful dynamics at play, and ongoing challenges in certain local markets, my view is the property market remains fundamentally sound and, overall, the adjustments are nothing to be alarmed about.”

Hayne refers to the Treasury’s submission in the interim report that “there is little evidence to suggest that the recent tightening in credit standards, including through APRA’s prudential measures or the actions taken by ASIC, as materially affecting the overall availability of credit”. “The property market has the capacity to absorb some adjustment in the application of lending standards necessary to meet the requirements of existing [responsible lending obligations] without imposing unwarranted risks to macroeconomic outcomes.”

No heads on stakes, but bank execs to blame The 951-page final report has laid the blame for the misconduct squarely on senior banking executives. “There can be no doubt that the primary responsibility for misconduct in the financial services industry lies with the entities concerned and those who managed and controlled those entities, their boards and senior management,” the report said. “Nothing said in this report should be understood as diminishing that responsibility.” We have heard evidence about billions of dollars ripped from

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INDUSTRY

It can't press charges itself, nor "fix or award compensation", nor even "make orders requiring a party to a dispute to take or not take any action". Decoded, that means they weren't set up to fix existing problems, more to prevent those problems recurring. But it can, and has made recommendations to the Office of the Commonwealth Director of Public Prosecutions. From there it's up to them. The interim and final report covered the public hearings and detailed conduct that the institutions themselves have acknowledged. This was backed up with evidence from regulators, experts and customers. Much of that conduct was actionable, meaning it could be taken further as a breach of the law, even if the institutions have paid back the money they took from customers.

Brokers hard hit Supporting industries did not escape lightly. Mortgage brokers, insurance companies, financial advisers and super funds face a commission overhaul, with a series of recommendations being made. Mortgage brokers help write half the home loans in Australia, acting as a gobetween for lenders and customers, and their ‘best interests’ have been questioned, particularly as their pay varies depending on different loans from various lenders? ResortNews | February, 2019


A new body?

The report calls for the relationships to be clarified, and recommends moving to a flat-fee model — with either the lender or the customer footing the bill.

So who watches the watchdogs? The final report recommends a new regulatory body overseeing ASIC and APRA due to failure to appropriately oversee the financial industry.

Some bank executives raised concerns that a fee paid by the lender would ultimately be passed on to the borrower anyway, while a customerpays model could make the broking channel less attractive and reduce competition.

All last year the commission exposed appalling behaviour and clear, repeated breaches of the law.

The washout “The banking sector must change, and change forever,” Treasurer Josh Frydenberg said in his address. His message to the financial sector is that the misconduct must end, and the interests of consumers must be put first.

Broking industry lobby group, the Mortgage and Finance Association of Australia, have slammed the idea as "anticompetitive and designed to drive consumers back into their branch network". Consumer advocacy groups, including CHOICE and the Consumer Action Law Centre, have previously called for a 'best interest duty' to apply to brokers would give would-be borrowers more confidence that they are getting the best deal, without the risk the broker is getting kickbacks from particular lenders. Referring to the financial planning sector, the royal commission highlighted the conflicts of interest and the culture of greed in the financial advice industry, which was responsible for one of the biggest scandals of the inquiry, "fees for no service", which is now costing more than $1 billion and counting in compensation. Conflicted remuneration, including commissions paid to advisers, were banned under the Future of Financial Advice (FoFA) reforms that came into effect in 2013, however, grandfathering provisions meant some pre-FoFA arrangements that constitute conflicted remuneration have been allowed to remain in place. The commission looks likely to put an end to grandfathered commissions, with the interim report asking "how can the grandfathering provisions be justified today?" The recommendation now is that financial advisers contact customers more frequently to ensure they still want to be paying for ongoing advice. "It is in the client's interests to obtain the best product", usually the cheapest and February, 2019 | ResortNews

best-performing one”. But hold on, for planners, ‘the adviser's interest is to further his or her career and to maximise financial reward and the licensee's interest is to maximise profit’. Those things don't work together. There are huge implications for this sector.

has ASIC gone to court to have the defaulting party penalised."

So who watches over the watchdogs?

As the report noted: "Understood in that light, APRA's lack of action in response to the widespread occurrence of the conduct described in this report may, perhaps, be more readily understood." But it still got a spanking for its inaction, particularly in relation to the big banks.

There are three key regulators in Australia's financial system. Discount the Australian Competition and Consumer Commission (ACCC), which is largely concerned with regulating and championing competition in the sector, and that leaves the corporate, markets and financial services regulator, the Australian Securities and Investments Commission (ASIC), and APRA, which supervises the stability of the financial system.

APRA's job is to promote a stable and safe financial system, so it has to balance things like "financial safety and efficiency" with the need to keep the system ticking over.

The evidence presented at the royal commission didn't have kind things to say about either. On ASIC: "When banks have disclosed, or ASIC has otherwise learned of, misconduct, ASIC has almost always sought to negotiate what will be done in response … rarely INDUSTRY

“It's a scathing assessment of conduct driven by greed and behaviour that was in breach of existing law and fell well below community expectations. Out-of-control greed among banks and weak corporate cops are to blame for the nation’s financial scandals. “In Commissioner Hayne's own words, ‘there can be no doubt that the primary responsibility for misconduct in the financial services industry lies with the entities concerned and their boards and their senior management’,” Frydenberg said. The federal government has said it will adopt 75 of the 76 recommendations but has not immediately accepted the call for upfront fees paid by banks to mortgage brokers to be banned, arguing it would decrease competition. Labor said it will implement all recommendations in full if elected. Source: ABC News, The Urban Developer

QUEENSLAND WIDE

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

Management Rights Transactions Conveyancing and Property Law Estate Planning

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By Trish Riley, Editor

The undisputed doyen of management rights

There is a humble ‘matter-of-factness’ when one speaks to Jake Clarke that belies the extraordinary accomplishments and influence he has achieved during his 24-year career in management rights brokerage. Born in Yass, New South Wales, Jake began his career as a carpenter – completing his apprenticeship with the Department of Public Works. It was obviously not quite where he saw his future, and by 1978 he was merchandising manager with Comalco Limited and then joined Besser to open a new factory in Grafton in 1979. Jake started his own swimming pool business in 1980, during which time he also bought land and built and sold 15 villas. He moved to the Gold Coast in 1992 and in 1993 he bought Main Beach Towers, his first management rights. Having found a deep-seated passion for property and wanting to become more involved in the burgeoning industry, Jake answered an advert in the paper for a motel broker in September of 1995 and began work immediately – and much-like the legendary sales exploits of the infamous Jordan Belfort, Jake started work on Monday, listed Bentley Park Stage 1 on Tuesday and sold it on Saturday morning – all without the benefit of the internet or mobile phones. Now aptly titled, senior industry consultant and negotiator with MR Sales, Jake is recognised as an industry expert with many hundreds of settled sales under his belt including a number of highprofile buildings such as the ‘Q1 Resort & Spa‘ - reportedly the world’s third tallest residential tower and one of the largest management rights sales in Australia; ‘The Towers of Chevron Renaissance‘, which features 700 strata units in one scheme and is reportedly the biggest single strata scheme in the southern hemisphere; the 410-room Holiday Inn Surfers Paradise,

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ResortNews | February, 2019


now badged ‘Mantra on View’; ‘The Wave’ in Broadbeach; ‘Riverplace Apartments‘ in Brisbane; ‘Palladium Apartments’ in Sydney; ‘The Midtown Apartments’ in Brisbane, now Mantra Midtown Apartments and ‘Macquarie Waters‘ and ‘The Observatory‘, both in Port Macquarie, among many others. When asked what it is that fuels his passion for management rights, Jake says: “Where else can you buy a profitable business that enables you to live and work in a fantastic environment simultaneously and have a great quality of life? “The industry has evolved significantly since I began in ’95,” adds Jake. “There was a lot going on, it was a dynamic time. I think back then there were only 13 brokers on the Gold Coast, which then went down to 11 but the property sector was poised for growth, and it certainly happened. “There were legislative changes and we witnessed the birth of the first syndicates spearheaded by Chris Scott and Tony Smith and in time, the advent of Break Free Limited and S8. At that time, most multipliers were at the 3 and 3.5 times factor, but whenever I had the right stock, I would always try and push it higher.” Sadly, in 2012, Jake became gravely ill and he made the difficult decision to step back from the level of commitment that he had held, moving instead into a consultative role that now enables him to keep his ‘hand in’ through the management of select listings and the mentoring of brokers coming up through the ranks. And there are a number of them. A successful merge between Tourism Brokers and MR Sales was completed in 2016, effectively enabling MR Sales to continue to grow in stature and increase their number of brokers. “One of the challenges in this business,” says Jake, “is that the industry is now supporting 50 to 60 brokers - just in management rights, and without the right mix of knowledge, determination, good listings and damn hard work, most of them are going to find it hard to succeed. February, 2019 | ResortNews

Jake is recognised as an industry expert with many hundreds of settled sales under his belt

“If you do the job properly it’s a 24/7 kind of job,” he adds. “Ultimately, you’re your own boss (the company is just a conduit to get a listing out) and you have to be disciplined. Always, always be truthful and remember that you’re representing both vendor and buyer – it’s like a marriage. Treat owner occupiers and tenants the same, as you will find that you need each and every one of them.” Jake is also adamant that every broker “do their homework thoroughly”. Over the years he has developed a mental 10-point checklist for prospective buyers and he vets them thoroughly before even looking at potential stock. “Any likely buyer has to get above a seven out of ten, and be readily able to answer yes to his key question: “Are you ready to buy?” “It’s also important to run as a team,” he adds. “Management rights is an industry of referral, and brokers must be prepared to sell each other’s stock.” Take it from a man who has averaged 35 contracts a year. “You have to work hard all the time to pull a deal together, but if you do the rewards will follow.”

Jake gives a lot of credit to his wife Lyn. “I am extremely fortunate that my wife is also my PA. Lyn’s expertise is recognised throughout the industry and she has helped numerous managers settle in and establish better business practices.”

management rights. Perhaps

“The industry is still strong, but it has changed,” says Jake. “There is a need for greater formalisation in terms of professional training and accreditation. One of the biggest threats currently are buyers and managers without the ability to run the management rights properly. Understandably, financial institutions and responsible committees have become increasingly more cautious about this and the establishment of standardised accreditation would be beneficial.”

corporates and consortiums

When asked his views on the future, Jake says: “I think it’s highly likely that the BCCM Act will be revisited. There have been rumblings about amending the 25-year agreement term to 10 or 15 years. There also appears to be a trend of bodies corporate shifting towards supervisory agreements rather than full

the best way to address this would be an auto top up option in every agreement. “Quality stock (big stock) is hard to get, and big stock is worth good money,” he adds. “I think we’ll see more and more enter the industry, so brokers will need to adapt to that changing landscape. “All-in-all however, management rights continues to be a sound business and investment,” says Jake. “The ROI is brilliant. I have thoroughly enjoyed my career, and still love it today as much as the day I started. “There are many vendors out there who never bought from me, but they always came to me when it was time to sell. You’ve got to love what you do, and I love making people money!” Jake continues to service the industry and leading the team in order to maintain MR Sales’ standing as a leading management rights brokerage company.

It’s also important to run as a team, management rights is an industry of referral, and brokers must be prepared to sell each other’s stock.”

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Training and accreditation: A long-term industry investment If you have been in business for long enough, there will almost certainly have come a time when you experienced a workrelated situation that made you question the training of the people involved. While we all embrace the importance of proper training, particularly when there are health and safety issues at stake, how much thought is given to establishing accreditation and standards in the ‘softer’ service industries? Training is crucial to organisational and individual development and success. It is about developing the knowledge and expertise

corrective measures where required to achieve better outcomes for staff. In this light, ARAMA offers a ‘first of its kind’ Management Rights Industry Training Program (MRITP) designed specifically for people entering the management rights industry as operators for the first time. Trevor Rawnsley, CEO, ARAMA

to foster a culture of safety and learn how to plan ahead, among other things – and it is beneficial to all parties. Specialised training delivered by accredited people or organisations will ensure the best results, supported by routine monitoring and evaluation of training efficacy and implementing

We have also discovered that the training program is ideal as a refresher course for experienced resident managers, suppliers and service providers who want to update their knowledge and learn about the latest developments, trends and innovations in the management rights industry. This interactive one-day workshop is also of benefit for people considering entering the industry in the future or looking to gain an understanding of how the industry works, and can be relevant for the employees of professional service providers or suppliers and banks, accountants and brokers. Offering an introduction to the legal perspectives of property law, strata law, tenancy law and other acts, Office of Fair Trading compliance and field investigations and the role of the committee and body corporate, as well as how to avoid disputes, the MRITP comprehensively prepares the resident manager to act as letting agent, caretaker and/or building manager.

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

At the end of the program, participants are equipped with a greater understanding of the major components needed to better manage a successful management rights business.

For membership enquiries: www.arama.com.au

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

The MRITP moves beyond the ‘training’ model of continued education, and offers participants ways to engage with, reflect on, and learn from the ‘day-to-day’ problems that may arise within their operation. ARAMA carefully selects

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facilitators with practical experience who are renowned as experts in the business so attendees can gain insight from their experience and success. Associations have an important role to play in strengthening the professional and educational standards within their industries, as well as in fostering and maintaining a code of ethics for members to enhance standards of operation and behavior. The management rights industry continues to face many challenges, and for ARAMA to continue to expand its activities in support of the long and sustainable success of this industry, it needs the support of resident managers who own and operate management rights businesses. This year ARAMA will conduct more than 40 free training and education events for members in regional areas and metropolitan cities across Australia focusing on a wide variety of topics including: •

Body corporate committees and their structure

Letting lots in strata buildings

Legislative reform to licensing laws

Management rights explained

The role of fair trading and the importance of trust accounts

The role of the Residential Tenancy Authority, and

The role of the Body Corporate Commissioners Office.

ARAMA’s innovative industry training program, MRITP, together with regular workshops, regional networking events and webinars will continue to improve member skills and performance to ensure that they are ready to meet the challenges of today’s economy and business world. ResortNews | February, 2019


The administrative fund vs capital works fund All strata schemes in NSW must establish an administrative fund and a capital works fund (was called a “sinking” fund) to administer the finances of the strata scheme. The administrative fund is used to manage the day-today expenses of running the scheme, such as maintaining and repairing the common property and personal property owned by the owners’ corporation, ongoing maintenance (such as garden care) and insurance.

Col Myers, Small Myers Hughes

out of the strata scheme, even if the money has not yet been spent.

Examples of expenditure from administrative fund

Examples of expenditure from capital works fund

Day-to-day expenses of running the scheme including:

One-off, or major expenditure, such as:

maintenance of the common property;

painting or repainting the common property;

insurance;

recurrent expenses such as electricity, water and rates;

acquiring, renewing or replacing personal property for the scheme;

pest control; and

window or carpet cleaning and lawn mowing services.

renewing or replacing fixtures and fittings that are part of the common property;

The capital works fund is to ensure that there is enough money to pay for capital expenses for major works to the common property when a job needs doing. Contributions made by owners to the capital fund are not refundable if an owner moves

replacing, repairing or upgrading the common property; any debts, other than amounts covered by the administrative fund; and other capital expenses.

The owners’ corporation must prepare a plan of anticipated major expenditure to be met from the capital works fund. This also helps determine the contributions that the owners need to pay. The plan is for a 10year period starting on the first AGM of the owners’ corporation, and must be reviewed at least every five years. After the 10-year period is up, there should be a new 10-year plan completed. Surplus funds in each account can be distributed among the owners.

Special levies Owners corporations can vote to introduce a special contribution or ‘levy’ where there are insufficient funds to cover expenses such as large capital works or unforeseen work.

one fund to the other, or make a payment from one fund that would normally come from the other. However, the owners’ corporation must levy a contribution on the owners to repay that fund within three months after using that money.

Funds for specific purposes A fund may be created for a specific purpose for a group of the lot owners who opt in. For example, some lot owners may want Pay TV services and have a fund established for this purpose. Interested lot owners would pay costs into this fund and use the service without passing costs on to other lot owners who do not wish to have the service.

Fund transfer

Liability limited by a scheme approved under Professional Standards Legislation

The owners’ corporation of schemes with more than two lots can transfer money from

Disclaimer – This article is provided for information purposes only and should not be regarded as legal advice.

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The devil is in the defects When you spend over half a million dollars on a new home you have a reasonable expectation that the plaster won’t crack in front of your eyes within a few months of you moving in. A loose board or some sloppy painting maybe, but fractures in the walls and structural issues so concerning that you are forced out for your own safety? Maybe in another country, but not Australia, surely? We have some of the strictest building codes in the world, don’t we? By now, you will have heard about the unfortunate residents of Opal Tower in Sydney, who were evacuated from their brand-new apartment building on Christmas Eve, briefly allowed back in, and

tower, which cost $165 million to build was approved under state legislation designed to help address the issue of housing shortages by allowing significant developments to side-step council approval. Opal Tower apartments cost between $510,000 for a onebedroom apartment and $1.8 million for a four-bedroom; a significant investment that is now in jeopardy.

Simon Barnard, President, SCA, Qld

then told to vacate once more. It’s a worrying story that some believe is symptomatic of a lack of building and development oversight. Australian company Ecove developed the 392-lot apartment block in Western Sydney with building company Icon Co opening the scheme in August. The 36-storey

If we look at a similar situation - the Lacrosse Tower cladding fire; five years after the disaster the scheme’s units are still selling for a significant loss, with experts putting the figure at 16 percent. Despite the Opal Tower issues falling well within the building warranty period there is some concern the problems will result in a prolonged legal battle as the blame game has already begun. This uncertainty will also impact the timing of

lot sales in the scheme, with some lenders refusing to accept any further mortgage security until further notice. If there is a significant drop in the reputation of the building, there may also be additional issues and costs imposed on the owners. Rents could decrease due to a lack of demand, insurance premiums could rise because of a perceived increase in risk, and an ongoing legal battle will almost certainly include significant strata levies. Understandably, residents may also feel some trepidation about re-entering the complex after being forcibly evacuated on two separate occasions. The building’s issues have led to the NSW Government announcing a crackdown on “dodgy certifiers”. Compliance checks would be stepped up under this new measure

Unity is strength In this article I delve into the issue of a motion with alternatives, as well as ruling these kinds of motions out of order.

Importantly, section 72(5) of the Standard Module provides that if more than one motion about the same issue is listed on the agenda, or stated in a voting paper for the meeting, all motions about the issue are void.

Firstly, let’s clarify some concepts. Section 72 of the Body Corporate and Community Management (Standard Module) Regulation 2008 (the Standard Module) provides for motions with alternatives. I will refer throughout to the Standard Module, please refer to the relevant sections of other Regulation Modules if required. A motion with alternatives must be put on the agenda for a general meeting by the committee when two or more motions proposing alternative ways of dealing with the same issue are submitted as motions for consideration at a general meeting of the

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against the motion.

Chris Irons, Commissioner, Body Corporate & Community Management

body corporate. A motion with alternatives is also put on the agenda if the person proposing the motion provides two quotes for consideration.

So then to section 81 of the Standard Module, which provides for the person chairing a general meeting ruling motions out of order. The section provides that the chair must rule the motion out of order if the motion, if carried, would: •

conflict with the Body Corporate and Community Management Act 1997, this regulation or the by-laws, or a motion already voted on at the meeting; or

be unlawful or unenforceable for another reason; or

When it comes to voting at the general meeting, a voter may vote either: •

for the motion, by voting for the motion, and for one of the alternatives listed under the motion; or

MANAGEMENT

except for a procedural motion for the conduct of the meeting, or a motion to correct minutes—the substance of the motion was not included in the agenda for the meeting.

Note: I have underlined “must” to emphasise that it is a mandatory requirement to rule the motion out of order. One of the more common issues my office hears about in relation to motions with alternatives, is that in ruling something ‘out of order’, a chairperson may rule the alternatives out of order, rather than the motion. This is not correct. If we refer to section 81 above, we see that the wording is in relation to the motion. The provision does not refer to alternatives. An adjudicator’s order which may shed some further light on this issue is Mornington ResortNews | February, 2019


with harsh penalties for negligence or breaches of the industry code of conduct. In Queensland, the QBCC has assured the state’s residents that they haven’t seen anything as bad as the situation at Opal Tower, but we can still look to improve our legislation and provide greater protections to consumers. Due to the safety risks involved, bodies corporate are in a position where they must often fix defects now and fight for compensation later. The costs of rectification and any subsequent legal recovery action are often too onerous for most schemes, who simply elect to cut their losses and forego what limited legal recourse they have. Here at SCA (Qld), we have advocated for a change to the legislation requiring a

Quays [2009] QBCCMCmr 503 (14 December 2009). In general, this issue highlights other broader issues, including: •

the need for a chairperson to be clear about their responsibilities in chairing a general meeting—remember, a general meeting provides an opportunity for all owners to cast their vote on a matter, so there is a reasonable amount of importance attached to how a general meeting is chaired; the need for the committee to also be clear on its responsibilities, particularly responsibilities in relation to accepting and correctly listing motions put forward by owners, as well as motions the committee puts forward; and

February, 2019 | ResortNews

strata community to consider a building and construction audit each year for the first six years of a scheme’s life. By mandating the inclusion of a relevant motion on the AGM agenda, we believe it would help defects be identified early and openly place bodies corporate in a better position for remedial works to be undertaken before any limitation period or building warranties expire. No industry is perfect, but we need to ensure consumers are protected wherever possible. To this end, we continue to work closely with the Queensland Government and we’re confident they will treat the modernisation of strata laws with real importance by pushing through reform that will help the hundreds of thousands of Queenslanders living in strata communities.

equally, the need for a lot owner to be clear with any motion they submit for a general meeting – owners should take the time to consider what it is they are seeking and whether their motion adequately reflects that outcome.

One way in which some of these issues might be addressed is through education and training. This is, of course, one of the key roles of my office and in this regard, we provide an online training course for committee members. This course is equally useful for non-committee members in establishing an understanding of crucial terms and concepts. The online training is available at https://www.qld.gov.au/ law/housing-and-neighbours/ body-corporate/legislationand-bccm/services/training. MANAGEMENT

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What lies ahead for 2019? A belated but happy new year to you all! Well I think for most of us 2018 panned out as expected.

Generally speaking continued cheaper borrowing costs, balanced against a more difficult borrowing environment combined with a continued lower $AUD and solid rental growth led the way for modest to solid economic performances within the management rights industry. So what can be expected for 2019? Unlike some I don’t proclaim to have a crystal ball, so I will merely provide my thoughts on what I believe will play out in next 11 months or so.

Interest rates and borrowing Australian interest rates have been low and steady for some time now. How long will this last? I’m hearing more and more rumours circulating that the US are likely going to raise their rates within six to 12 months.

Jonathan Hanaghan, Director, Jonathan Grant Accountants

What does this mean for us? Possibly a rise by our RBA? If this US increase does eventuate we will see at least a short-term drop with our $AUD to the $US. This is not all bad as tourism will get a short-term sugar hit. I don’t need to tell you but following the royal commission into the banking industry, lending has become much more difficult. The management rights industry did not escape. While difficult to borrow, it is certainly not impossible.

Those with solid records and industry experience have faced little resistance. The royal commission report is due out February 2019, and while the negatives have gained all the media attention, the positive aspects of the financial institutions have not.

I haven’t seen too many instances of materially reduced letting pools in the last 12 months. This tells me the current crop of resident managers are continuing with their good work. I am predicting a similar year for 2019 with growth (if any) fueled by demand.

My prediction is that we will have no movement in rates and a slight lightening in lending criteria once the dust settles from the royal commission report and some of the positives are circulated into the public realm.

Body corporate committees

Leisure letting market This particular market had been flying in recent years in South East Queensland and Northern NSW. Higher than average occupancy rates driven by a tourism industry benefitting from a lower $AUD and Australians wanting to holiday at home to avoid the perceived terrorism risk. This somewhat turned the other way during 2018 with lower occupancy rates and average nights tariffs being achieved. My prediction is a similar year in 2019 with additional competition putting extra pressure on occupancy rates and average nightly tariffs.

Corporate letting market

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

This is the feel-good story for 2019. The tide has turned with the reopening of many mines and associated businesses that service the mining industry. I have seen a material improvement in average occupancy levels and a modest increase in average nightly tariffs. Markets in Mackay and Townsville in particular, have improved in leaps and bounds from 2019. I’m predicting more of the same for 2019 with modest to strong improvements.

Permanent letting market The usual rock of Gibraltar in the industry. Growth has generally been driven by the lack of available buildings on the market, which has resulted in appreciation to the goodwill attributed to a management rights business. As usual the main risk to this market is the owner occupier. Though to be fair

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Ask any manager that has been involved in a dispute with their committee and they will tell you it’s a process you don’t want to engage in. It’s not uncommon to see the same committees continually causing noise with often a hidden agenda in play. Some however, are playing it smarter following the Gallery V decision and know exactly where to catch managers out. My prediction is more trouble to follow for 2019.

Multipliers I’m predicting the following for 2019 multipliers; Leisure market – Steady to minimal increase underpinned by reduced stock with steady tourism and earnings. Corporate market – Modest increase driven by increase in earnings and KPI’s. Permanent market – Steady to minimal increase underpinned by limited stock.

Compliance The Office of Fair Trading (OFT) have certainly been more active in recent years. While I don’t necessarily agree with some of their areas of interest I can’t see them reducing their hands-on approach any time soon. Same goes for the Australian Tax Office (ATO). They are certainly more approachable than in yesteryear but have FBT (particularly on managers units) and GST issues for leaseback units on their agendas. I can’t see this going away in 2019. My prediction is that the OFT and ATO will continue with their current educational and audit activities. So, for what it’s worth that’s my 2019 prediction for the industry - best of luck to everyone and I hope 2019 is a cracker! ResortNews | February, 2019


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customer service to building owners, tenants and body corporate members.

on top of your maintenance work easy. An advanced defect management module, integrated and automated work orders, and a comprehensive preventative maintenance calendar enables managers to keep up to date and manage daily maintenance and bookings, even if you’re not on site. This module also allows managers to easily maintain a contractor’s database of contact information, relevant documents and insurances.

Other essential features include a comprehensive asset register, a residents and contractors’ database, parcel tracking, visitor logs, customised informational lobby displays and SMS and email broadcasting tools for notices and urgent notifications. The Mybos intuitive design assists managers by keeping the community integrated and the management in control of the property while delivering better

Mybos subscriptions are offered at a building level, so the owners corporation can invest in the system, effectively guaranteeing improved property management, timely maintenance and quick repairs yielding better rental and sale value. More importantly, should the building be sold, it can be onsold to the new manager together with comprehensive reporting of an efficient management history and entire building management record. The Mybos system is cloudbased, which not only adds to product reliability but also eliminates the need to purchase new hardware, effectively reducing overall costs to the users. MYBOS is smart. MYBOS is simple. MYBOS is powerful.

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February, 2019 | ResortNews

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Don’t forget to exercise your option! I recently received a phone call from a distressed manager. His opening line went something like this: “Hi, it’s such and such here, I, um, forgot to exercise my option. What do I do now”? Every manager’s worst nightmare. Well maybe not quite the worst but it’s pretty ordinary all the same and can lead to a significant amount of stress, discomfort and sleepless nights. So, what does it actually mean if you don’t exercise an option?

Matthew Manz Mahoney Lawyers

Here are two possible scenarios: 1.

The body corporate refuses to enter into the new agreements. If a body corporate votes against a motion for new agreements the manager has no recourse against the body corporate; and

2.

The body corporate will only agree to enter into new agreements on terms that are unfavourable to the manager. The unfavourable terms could be things such as a reduced salary or a significantly reduced term.

In short it means that your caretaking and letting agreements have come, or are about to come, to an end. And the moment the agreements come to an end the manager essentially has little more than a unit (usually with some exclusivity rights) and a rent roll. How can the problem be fixed? In 99 percent of situations the only thing that can be done to fix the problem is for the body corporate to enter into new agreements at a general meeting.

As you can see, the results of not exercising an option can potentially be dire.

If I am successful in getting the body corporate to consider new agreements what’s the worst that can happen?

I have had a number of managers over the years in the above predicament, fortunately there has been

• the length of the current term, including the term expiry date and the length of any option periods; and

only one instance where the body corporate refused to enter into new agreements. Bearing in mind the above it is vitally important that managers put in place a reliable system to remind themselves to exercise their options. I would suggest: 1.

Managers review their agreements along with their legal due diligence report from the time of their purchase (and any other advice from their solicitor) to determine the following:

• the relevant dates by which each option must be exercised; and then 2.

diarise the relevant dates with enough notice so that managers can take the appropriate action.

This is a very real situation, don’t let it happen to you!

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Google’s “You were told!” “Next to I win, I told you so, are the sweetest words." So said that famous American author Gore Vidal. Happy New Year! I excused myself for a small deception writing my last article but this time my timeline and calendar are in sync. And what better way to start this new year than to quote that famous American author. My purpose however, is not to smirk but let friend Google do that. You see, after many, many warnings the behemoth has, after all its postulating, proclaimed that as of the beginning of this year the web ranking system has changed! But what has changed and how? It is exactly the reason I have been rabbiting on about the size and design principles of web sites for the last four or more articles. Your web site is now rated on the mobile compliant design and sites that still only conform to coding and layout using desktop methods will be relegated to the bottom of the heap. And as that heap is potentially huge, I sincerely recommend you stay out of it. My best suggestion to you now is to discard your web site if it has not adopted adaptive design principles. It’s too early to detect the full implications or inspection parameters used by Google when making judgements, so to be safe, a brand-new site may be the best solution. The design has to be such that it automatically adjusts its layout and scale to the screen size used by the viewer. If you are in any doubt what that looks like a great example is our magazine's own site. Try https://www. accomnews.com.au/. It even has a snazzy search bar and it is quite amazing what you find if you type "cybercons" into it. There is however, another potential issue and that is language: the misuse, abuse and ad-hoc modification of our language. This is rampant and of some concern, not only February, 2019 | ResortNews

Arvo Elias, Cybercons

to Professor Roley Sussex, an impressive linguist at QUT, who appears to be the last man standing trying to defend and rationalise the words we use everyday, but also now our federal government. I was absolutely dumbstruck to discover that somebody in Canberra has decided to spend significant amounts of money on consultants to teach our public servants to write legible, comprehensive and comprehendible English. Bless their little cotton socks - what on earth did these people do at school or should I perhaps ask what our schools did for these people? When I graduated from my engineering course there was a taunt in use by all those who graduated with art degrees. Engineers were accused of being clever with clever things but really dumb in the use of English. The joke, oft emerging on graduation day was: "Yesterday I could not spell engineer but today I are one!" And that is the start of the problem today. I fail to understand or the need for "Healthiielife" (sic). Social media platforms accept it without a shrug but how would Google rank it? It would be findable eventually, but it raises the question why invent it and use it? Not only that, but would anybody search for such a twisted word? I doubt it. Years ago, when one lived in the real world, I arrived at an American airport to be confronted by a

sign that read: "Combobulation Area". When had I become discombobulated I wondered? Now that curious expression does exist in dictionaries and means to bring something out of a state of confusion or disarray; to manufacture by some unusual or novel means. You guessed it; the antonym is discombobulate. If a long transoceanic flight and arrival in a strange place does not discombobulate I don't know what does. The point of this prattle is to emphasise the need for clear and concise text on your website. My last article covered most of the ground but the issue of language clarity is not clearly defined by search engines. The nearest clue is provided by Google when it tells us that the mantra with regard to site rating is to Provide the user with the best possible content. Personally, I use Google's own website as my guide. For this reason, I skim over a selection of their pages every now and then to deduce language and form used by them. To date I have not seen any of the vernacular in current use, in any of their text. It is not only a question of correctness but it also reflects

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itself in other beneficial ways. The punter can quickly grasp your detail and thus hopefully make a favourable decision that will benefit you. Simplicity of language also allows for clearer layout, simple but effective manipulation of key words and more importantly, maintain your page speed. If you have any doubts about any aspects of your domain just open your site in your desktop browser. Then adjust the width of the browser by dragging on its either vertical edge to vary the width of the window. Even if the format is compliant, pay attention to the text. Poorly spaced or excessively long words can make a page quite ugly and difficult to read. It also increases the undesirable need to scroll. A poor choice of images or their placement can also cause mayhem. And while you are at it, manipulate the width to simulate both a tablet and a phone screen. So, readers, please treat this final warning seriously as it can affect your business to a disastrous degree. I do wish the new year brings you great success.

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Loan conditions, reviews and refinancing

It doesn’t have to be a nightmare In the past I have expressed the view that we are moving into a tighter credit environment in which bank lending guidelines will become stricter. We also talked about challenges existing borrowers are having with annual business loan reviews and extended interest only periods. I am less than delighted to announce that for once our predications have come to fruition. Daily feedback from borrowers suggests that times are indeed becoming challenging both for new borrowers and for existing operators. To be frank some of the concerns raised with us are of the borrower’s own making and reflect a lack of understanding of the terms and conditions of the loan. In many cases, we have been able to offer guidance around a better understanding of loan condition compliance and offer borrowers a few helpful tips to manage their bank relationship better. For our own clients we offer to manage the relationship on behalf of the borrower which can reduce the stress levels somewhat. A problem shared is a problem halved so to speak.

of ensuing dramas with tax planning and provisioning!

Mike Phipps, Director, Mike Phipps Finance

recent we mean very recent, not your tax returns lodged 12 months ago. This may well mean that you need your accountant to prepare end of financial year financial statements even if you don’t intend to lodge your returns for months. I hear people say what an impost this is. I say that if you have got to the end of the financial year without preparing draft financial statements as part of pre-June tax planning you need to take a serious look at how you are managing your financial affairs. I suspect your lender will take the same view. Nothing strikes fear into the heart of your bank manager like disorganised financial reporting and the possibility

A word of caution on simply dropping your financial statements on your bank manager’s desk. Going concern businesses such as management rights and motels are bought, sold and valued on adjusted net profits. Your tax returns will seek to minimise that profit as best and as legally as you can. It’s important to ensure that your lender appreciates the difference and assesses your annual review in a balanced manner. Comparing an unadjusted set of financials designed to minimise your tax with the P and L you bought on and valued on can be a recipe for disaster if not managed and presented appropriately. Your lender will almost certainly ask for some supporting information when conducting the annual review. An up to date statement of assets and liabilities is a definite, and in most cases, so is confirmation that all your tax obligations are up to date. We believe in getting on the front foot and also providing your bank with any good news stories that will assist in keeping the lender

Here’s what we know for sure. The majority of business loan borrowers are going to be subjected to an annual review of their facilities. The borrower’s ongoing capacity to meet their obligations and the value of the bank’s security are usually inextricably linked to the performance of the business. As such it should come as no surprise that the bank will seek copies of your most recent financial statements. By most

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in a state of happiness. If you have an agreement top up, lease extension, units coming into your letting pool, new accommodation contract or wonderful Trip Advisor reviews tell your lender. And now, onto another challenge. It may be that your loan is not coming up for review but for expiry. This is a much more serious matter than the annual review of a loan and we have previously written about the potential perils of shortterm finance. Some lenders, in order to offer lower interest rates, make relatively short-term funding commitments to their clients. The Letter of Offer says loan term three years. Many borrowers wrongly assume this is the interest only period and the loan will automatically roll on. Not so. If the loan term is three years then all bets are off after that period. In essence you reapply for your loan and there is no obligation on the bank to extend the loan term. It is imperative that you have your loan term expiry diarised and ensure you have all necessary information in front of your bank in time for them to reapprove the loan, revalue the business and other security and issue a new Letter of Offer. These days that’s no less than a month prior to the loan expiry date. If you miss the expiry date the bank can, at its discretion, extend the loan term to give you time to get yourself organised but it’s not a good look and best avoided. Regardless of loan review and/ or expiry triggers more and more banks are taking the option of revaluing security more regularly. Remember, your bank retains the right to revalue as and when they see fit and it’s at your cost.

MANAGEMENT

ResortNews | February, 2019


why borrowers like interest only and just as many reasons why lenders don’t. We have developed strategies for negotiating extended interest only terms or at least reducing the burden of full P and I repayments and we are happy to share these with clients.

Again, get on the front foot with an adjusted P and L for sale purposes and some recent market sales evidence and potentially save yourself thousands. So, what’s the end game here? Frankly we make money when people borrow and use our services. That includes refinancing so I guess we should be big fans of that strategy. Not necessarily. All things being equal you have likely developed a relationship with your bank, met your obligations and built trust and some rapport. There’s value in that relationship and like a marriage it’s worth working at, even if there are occasional rocky patches from time to time. However, when the time is right it’s certainly worth at least taking a look at the competitive landscape to see what else is on offer and to ensure your lender is looking after you. In my mind the time to do this is at annual review or loan expiry. Your bank will review you and I think you have every right to review the bank. You have gone to the trouble of preparing what

amounts to a loan application (or we have done it for you) and in many cases you have an up to date valuation. It takes little extra effort to use this data to see what other lenders might offer and to compare your existing arrangements. At the very least you will be equipped with some bargaining

A word of warning. Debt service tests are becoming ever more stringent and the hurdle you met three years ago may well be a leap too high in todays closely regulated financial environment. If you are asking for interest only finance, you need to have a good reason. Preserving cash flow for good wine, fast cars and fun times resonates with me but will almost certainly leave your bank manager less than excited. There are any number of perfectly good financial reasons to use interest only finance so best to use one of those instead.

power and at the other extreme you will have options if your current lender drops the ball.

Finally, and just to clarify because I know the managing director will ask. No, I don’t advocate taking a look at the competition to see what’s on offer if your marriage is getting a bit rocky. In my case that could prove fatal!

Right now, the single biggest motivator for people moving banks is the imposition of P and I loan repayments at the end of interest only periods. There are numerous reasons

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Bedding has a limit Everyone you speak to has a horror story at some time in their life about a motel bed they slept on that was the worst bed they ever had to endure. They had no sleep that night and will never forget it… and, will continue to bring it up when any conversation allows them to introduce it. Sound familiar? Allow me to paint a picture for you of an all too common scenario. A motel guest parks their car outside their unit, they chose this motel because it looked like a good quality motel from the street or online. They open the door after a long day on the road, ready for a good night sleep. They comment that they are so tired they could sleep on the floor if they had to. They look around the unit and like what they see, the room is very nicely appointed. They look past the bed, then stop, and look back as something catches their eye. “Does the bed look saggy.... It does... It is!”. To their horror, the

No-one can be fooled by a poor bed dressed up to look five-star Andrew Morgan, Motel Broker, Qld Tourism & Hospitality Brokers

bed is sagging in the middle and looks as though it was new back in 1999. Albeit very disappointed with the look of the bed after the long drive, they don’t say anything to management, and proceed to toss and turn all night, resulting in the worst night’s sleep they have ever had. The next day they leave the motel vowing never to return because of the bedding and armed with a story for the ages. Over the last 23 years of motel brokerage and in excess of one thousand motel inspections, I still cringe when I walk into a motel unit to see a beautiful room spoilt by a bed that should have been upgraded five years

ago. One of the first things a potential buyer of a motel does when they enter a room is to lift the bedspread, sit on the bed and check the bedding quality. If the bed is sagging and well past its use by date, immediately the potential buyer becomes concerned about what else in the property needs replacing. One of the first things asked is, “when were the beds last replaced?” As anyone in the motel industry knows one of the fundamental items of a motel unit is a good quality bed. Without this, you may as well

throw away the HD or 4K LCD television, quiet split system air conditioner, free wifi and all the other goodies, because that bed has now done more damage than any of these items put together can make up for. When that guest tells one of his friends not to stay at that motel because they will not get a good night sleep, the cost to replace that bed now seems like a drop in the ocean compared to the potential business lost by bad word of mouth. In my opinion, beds can be easily replaced at a minimal cost and can be done regularly,

What guests really want.. A well-cleaned property or a well-styled property? Being close to restaurants and cafes or within a short distance to the closest public transport option? If you are involved in the accommodation sector, formally or informally, it’s important to understand guests’ expectations when it comes not only to your property but also yourself as the host and manager. Guests who stay at shortterm rental properties have different priorities than longterm tenants. They are usually travelling for work or pleasure, so convenience and comfort are extremely important for

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them. Property management company, MadeComfy analysed feedback from more than 1300 reviews from guests who stayed at managed properties in Sydney, Melbourne and Brisbane with the aim of understanding what’s important for the guests and what you as a property owner or onsite manager should know.

is the property furniture and decoration. This shows how important is for property owners to pay attention to interior design and invest in good quality furnishing.

Top priorities for guests

Another big priority mentioned in the reviews is “top location”. The data was analysed separately to extrapolate all the reviews that mention “location” and related words to understand just what an ideal location means for shortterm rental guests.

More than half of the analysed guest reviews (51 percent) indicate the cleanliness of the property as the most important priority for guests. In the second place, comes great guest communication, with 34 percent of the reviews. Guests expect hosts and staff to be responsive, friendly and helpful. The third priority for the guests

What does “top location” mean for guests?

Naturally, it also varies according to the city being analysed. As a whole, however, the majority of the guests love being close

MANAGEMENT

to the beach (38 percent of the reviews) and also restaurants, pubs and cafes (30 percent). Short-term rental guests are looking for convenience and the third biggest percentage of the reviews (21 percent) indicated that ease to public transportation is an important factor. The fourth group of reviews indicated that guests also enjoy being close to parks and green areas (11 percent).

Guests’ favourite property features When it comes to property features such as a swimming pool, gym and spa, who is the winner? The answer is none of them. The most important ResortNews | February, 2019


Is a poor mobile user experience losing you direct bookings? By Dave Wright, Managing Director, Principle Media Australia

rather than when the sag in the centre appears. To a guest a bed is the be-all and end-all. It is the difference between a guest giving the best free advertising for a motel to everyone they speak to or the worst adverting when they review the motel online or in person when the bed is not up to scratch. To a potential buyer of a motel business it is also the game-changer, even though they are easily replaced. Human nature then makes a buyer wonder what else is not

property feature is parking space available either close to or inside the property. Short-term rental guests want to have the option to park close to the booked accommodation without having to spend hours looking for a parking spot.

Guests love treats! In the review analysis we did, we also discovered that guests love “extras” placed in their rooms or properties. 36 percent of the reviews mentioned they enjoy having cleaning products such as laundry and dish soap in the properties. 30 percent enjoyed having fresh towels and linen and the remaining group is happy to have treats like a good quality coffee February, 2019 | ResortNews

up to scratch if one of the most important items, such as the beds, are in poor condition. The difference between a good quality bed and one ready for the scrap heap cannot be overstated, and no-one can be fooled by a poor bed dressed up to look five-star. Regular replacement of bedding can not only ensure happy guests, but come sale time can indirectly help to play a big role in achieving a successful sale.

machine and tea and toiletries, such as shampoo, conditioner and similar products (24 percent and 10 percent respectively). So, as you can see, efficient guest management and housekeeping are critical to guests as they expect a quick response and frictionless communication throughout their journey. They also have high expectations when it comes to the cleanliness of a property. This is an interesting learning for managers and property owners who are looking into having short-term rental guests in their properties: Investing in a good quality service for guests is the key to secure more bookings and increase your chances of receiving 5-star reviews.

These days everyone has a smartphone, the go-to device for accessing online information when and where we want it. Yet we see so many hotel websites that are providing a non-mobile friendly experience - a costly error in a market where direct bookings are critical. Apart from the fact that everybody uses a smartphone - increased data speeds, mobile apps doing everything from our banking to tracking our calories and fitness and social media allowing us to build our networks of friends, applications are all continuously developing and building a marketing and communications platform that just can’t be ignored. With the power smartphones provide users, the abundance of information at our fingertips guides us through existence and our insatiable appetite for content - we now can access what we want, when we want, how we want. An existence of instant gratification. This immediate access to information has however, made us highly impatient and a slow mobile experience leads to a negative brand experience and more importantly - abandonment of a direct booking. According to Tnooz – 32 percent of bookings on mobile devices are abandoned due to a slow mobile website load time. 30 Percent will abandon the booking due to poor user experience and responsiveness. What inevitably happens

MANAGEMENT

when a person has a negative experience with your website – they go straight to the mobile optimised competition. Estimates are that bookings coming from mobile devices are expected to increase to around 35 percent in 2019, which represents a substantial jump from previous years and a figure that just can’t be ignored. Why not also include a click to call on your direct reservations number to allow the guest to contact you there and then. Or even allow a click to email on the mobile website so email enquiries can also be done in real time. Consider a key audience segment – the last-minute traveler. This guest is likely to be using a mobile device to find your website, with stats showing that 25 percent of mobile hotel searches are for the same day or one day out dates. Organised, pre-travel planners now use a combination of devices to plan a trip including laptops, desk tops, tablets and smartphones in the research stage so providing a uniform experience across these platforms is imperative. Google also recently changed their website ranking algorithm to favour mobile friendly websites providing yet another reason for you to ensure a positive mobile experience for your guests. Mobile devices are here to stay and the platform will continue to evolve to become central to all consumer communications. Don’t get left behind wondering where those direct bookings went. Ensure the user experience on smartphones is positive and the mobile design is aesthetically appealing and functional so you can make the most of the platform and the opportunities it presents.

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numbers and scrapping the second year of the working holiday maker visa to counter “adverse impacts” on wages, training and jobs for local workers. But industry leaders have reacted with horror to a move which government modelling shows would strip $360 million from the industry and they argue would hurt regional towns and businesses already struggling to make ends meet.

Gold Coast ferry service gets set to float A two-year trial of a 12-stop, solar-power catamaran service is expected to get underway by the end of 2019, taking passengers between Surfers Paradise, Southport and Carrara via the waterways. Transport and Main Roads Minister Mark Bailey has met with Gold Coast Mayor Tom Tate to discuss the proposal, and the meeting was reportedly a very positive one. Early investigations into potential issues such as ensuring the wash is acceptable [on the Nerang River] and that the community is fully informed and consulted, as well as having full disability access at any point “I’ve asked my department to now liaise with the City of Gold Coast and perform how this plan could work", said Bailey. Mr Tate said with the Gold Coast’s booming population, it was vital new public transport options were considered. “We’ve calculated in the first stage of the ferry service between Surfers and Southport and the Spit may take about 3,500 cars off the road daily, which could lead to further congestion reductions," he said.

“Jumping aboard the Transdev operated City Hopper or CityCat ferry services are the second and third most popular things to do in Brisbane according to the online travel site TripAdvisor. Similarly, catching the Transdev operated Manly ferry is ranked number five in Sydney.” A detailed options report will be considered by councillors in March.

Is “critical” visa scheme at risk under Labor? Hospitality chiefs fear a Shorten government would scrap part of a working holiday visa program worth $360 million to Australian tourism. In a submission to a Senate Inquiry, the powerful Australian Council of Trade Unions has recommended lowering the cap on visa holder

Jenny Lambert, acting chief executive of the Australian Chamber of Commerce and Industry, described the proposed changes as a “major concern” for businesses across regional Australia. She said: “Limiting the scheme would ignore the benefit of working holiday makers both as tourists and as workers. Abolishing the second year of the program would particularly harm regional Australia as it would axe a key incentive for working holiday makers to head to regional areas. “The big unions would claim that working holiday makers take jobs that Australians could do. But many working holiday makers fill farm and tourism jobs in the regions that are often short term and seasonal. “There are not enough job-seeking Australians who are willing or able to move for this type of work. Working holiday makers help fill these gaps and ensure our regional businesses continue to thrive.” While the Opposition has reacted angrily to suggestions the proposal represents Labor’s position, acting shadow immigration minister Amanda Rishworth this week failed to rule out such a policy change. “This is not Labor’s proposal and the government is lying when they say it is. It is one stakeholder’s submission to a Senate Inquiry,”

Carol Giuseppi, CEO of Tourism Accommodation Australia, told Accomnews the organisation would be engaging in advocacy alongside the Chamber of Commerce on the issue. “In Australia working holiday makers make a dual economic contribution, plugging labour gaps particularly in regional areas, paying tax, and spending approximately $10,000 per visa holder during their stay,” she said. “They represent a significant proportion of the youth travel market and as such provide important word of mouth endorsement of Australia as an aspirational travel destination. “Any discussion on capping the number of visas overall and cutting the second year visa would send a negative message at a time when we are struggling to attract this market and compete globally.” Australia saw a 3.6 percent decline in the number of first year working holiday visas (417) and a 7.7 percent decline in the number of first year work and holiday visas (462) for the year ending 31 October 2018, according to Giuseppi. Home Affairs data shows more than 36,000 foreigners were on second year visas in 2017-18, undertaking three months’ work in regional Australia to address chronic skills shortages as part of their visa requirements. Tourism Minister Simon Birmingham said the proposed changes would have a devastating impact on Australia’s tourism industry. “Working holiday makers are critical in filling short-term workforce shortages but they also inject billions into Australia’s economy each year, particularly in regional areas,” he told the Adelaide Advertiser.

The Surfers Paradise to Southport Broadwater connection including Sea World is considered a goer but doubts remain about taking the ferries to Paradise Point.

While the office of shadow tourism minister Anthony Albanese referred Accomnews on to the shadow immigration department for comment on the issue, Mr Albanese’s media adviser did confirm: “Anthony is a supporter of working holiday visas and understands their importance to the tourism industry.”

“Ferries are not only clean and green, they offer a tremendous customer experience and are a widely popular form of public transport with locals and tourists,” said Tate.

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she said. “Labor established the Senate Inquiry into the effectiveness of the current temporary skilled visa system in targeting genuine skills shortages. Labor will consider the Senate Inquiry recommendations when they are handed down in March.”

TOURISM

ResortNews | February, 2019


The reception area at the Ovolo Woolloomooloo in Sydney

Ovolo crowned best in Australia and South Pacific Ovolo Wooloomooloo has been voted number one hotel in Australia and the South Pacific at this year’s TripAdvisor Travellers Choice Awards. The property beat out competition from a strong field including Sydney’s The Langham and Hamilton Island’s multiawarded Qualia to take the title. It was ranked third most popular in 2018. Ovolo 1888 Darling Harbour in Sydney placed third this time around, and all six of the boutique hotel brand’s Australian properties ranked in the top 20 for their respective cities. “It seems that Ovolo is definitely doing something right,” said a spokesperson. “Each Ovolo offers a unique yet personable stay for each and every guest who visits. “Known for its funky décor, quirky attributes and secondto-none customer service, Ovolo puts its success down to its faithful staff and generous visitors, as it is them who they continue to learn from and aspire to amaze, throughout the day to day running’s of each hotel within the collection.” The personality of Ovolo Wooloomooloo is unashamedly eccentric, reflecting its founder Girish Jhunjhnuwala’s obsession February, 2019 | ResortNews

with eighties music. Guests can “expect to ride in the lifts to the sound of Talking Heads, book a stay in an AC/DC or INXSthemed Rockstar suites and stream Radio Ovolo on Spotify, for some Duran Duran and Terence Trent D’Arby” according to the hotel group. The brand’s moto of Shiny Happy People extends to both employees and guests, it argues. “I’m all shook up!…A great start to the year being named Trip Advisor’s number one hotel in Australia and in all of South Pacific!

COMO The Treasury – Perth, WA

The Langham, Sydney – Sydney, NSW

Qualia Resort – Hamilton Island, Qld

No Australian hotels made the travellers choice list of top 25 hotels worldwide. Top spot on the global indicator went to Tulemar Bungalows & Villas in Costa Rica. TripAdvisor’s top ten traveller’s choice hotels in Australia for 2019 are: •

Ovolo Woolloomooloo – Sydney, New South Wales

Pinetrees Lodge – Lord Howe Island

Ovolo 1888 Darling Harbour – Sydney, New South Wales

Peninsula Boutique Hotel – Port Douglas, Qld

Korte’s Resort – Rockhampton, Qld

Meriton Suites Southport – Southport, Qld

Freestyle Resort Port Douglas – Port Douglas, Qld

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It’s YOU, our shiny, happy guests that has made this possible! Thank you!” said Jhunjhnuwala.

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TOURISM

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Global mega-trends are shaping new imperatives for travel As global forces continue to converge and trigger unprecedented change, the future of travel and tourism will be shaped by those companies and destinations that offer unique and meaningful experiences. Providing personal service to sustainability-minded customers will also be critical in the evolving travel and tourism industry of the future, as will having trustworthy and responsible leadership in place. These are the key takeaways from a new report from the World Travel & Tourism Council (WTTC) titled “World, Transformed: Megatrends and their implications for Travel & Tourism.” The report, produced in partnership with Bloomberg, examined how powerful global demographic, political, economic and technological forces are impacting the travel and tourism landscape. It also covers how such forces are producing different expectations among consumers and creating different obligations for businesses and policymakers in order to succeed. One of the fastest growing sectors, travel and tourism accounts for more than 10 percent of global GDP, the WTTC said. Sustaining such growth and reaching industry forecasts, such as the eight billion air travellers predicted by 2037, will require continuous innovation and reinvention, according to the new report. “We live in an era of rapidly accelerating change. Powerful, global forces are fundamentally changing the way we live, work and travel at a rate we have never witnessed before. These converging forces - or megatrends - present immense opportunities for those who recognise them and adapt

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their strategies,” said Gloria Guevara, WTTC president, and CEO. “The challenge is for destinations and businesses to embrace the opportunities of this changing global landscape and the expectations of tomorrow’s consumers.” Additional key report takeaways include: •

Consumers are increasingly moving beyond experiences as social currency to seeking shared experiences to deliver meaning, self-improvement and stronger connections. Millennials and Generation Z have little loyalty to employers or brands and are more likely to rely on personal networks than experts. Consumers value technology but are uncomfortable with over-automation, which seeks to replace customer interaction with intelligent bots.

Reality, enhanced As people, communities, and businesses become more sophisticated in adapting new technologies for analog experiences, new ideas and beliefs are emerging about how best to live a connected life. Online and offline experiences, as a result, are becoming increasingly integrated. More than $8.2 trillion in global expenditure is forecasted for the experience economy, in addition to an increased emphasis on physical and mental wellbeing. With experiences at the core of travel and tourism, the sector has the potential to design meaningful, unique, frictionless and even unplugged journeys that directly respond to these changing values.

Life, restructured

Consumers want to be treated as individuals by companies that trust their privacy, share their values, and provide authenticity. Travel and tourism companies will succeed by responding to the rise of ethical consumption trends and protecting the very destinations they promote.

"As these implications converge, organisations in the travel and tourism industry will need to make investments to take advantage of the new realities,” said Andrew Benett, chief commercial officer, Bloomberg Media Group. “Businesses will need to dramatically enhance their understanding of their customers - present and future - and ensure that they are maintaining a competitive edge by establishing a voice within the global conversation.” The report outlines five areas where change will be

most profound in the travel and tourism industry.

The growth of tech-powered economies such as the “gig economy” and “sharing economy” continues to create new expectations for work, life and culture. Twenty-five percent of workers in the US and EU engage in independent work today, and the independent workforce is only going to rise. As the structure of people's lives become more fluid and self-directed, travel will become more of a lifestyle, mobility will increasingly become communal and service-based, and businesses will need to rethink their workforce.

Data, revolutionised The power of data will drive a new frontier of innovation and deliver unprecedented ability to better understand and predict outcomes. While over 180 ZB of data is expected to be generated by 2025, consumers remain uneasy when it comes to their security and privacy.

TOURISM

These technologies offer tremendous opportunities for the travel and tourism sector, including leveraging data to build a fluid, cohesive travel experience, implementing large-scale Internet of Things, facial recognition and use of voice assistants to streamline travel. Businesses will need to lean into brand values to guide their innovation and prioritise transparency with their consumers.

Power, redistributed Significant shifts in power dynamics will have dramatic effects on both local culture and global markets as technology, globalisation, and population growth continue to redistribute power. These forces create new centers of social and economic influence in the East and South. For travel and tourism organisations, merely establishing a presence in new markets won't be enough as it will be critical to understand the future consumer. Businesses will need to invest in creating sharable moments, strive for customer service excellence and ensure their brand has a point of view in the global, social discussion.

Consumption, reimagined As the availability of resources and health of our planet are increasingly threatened, there is a need for responsibly balancing short and long-term priorities. By 2050, the global population will exceed 9.7 billion and consumption of natural resources will triple. Sustainable business practices and aligning brand stories to sustainable solutions can become the core of a robust growth strategy for the travel and tourism sector. Safeguarding destinations, environmental leadership, and community health will, therefore, be integral to the customer experience. ResortNews | February, 2019


Treehouse Lodge Resort Iquitos, Peru Sleep to the sounds of the Peruvian Amazon rain forest at the headwater of the Amazon.

careful to leave the most minimal footprint possible. Every effort was made to preserve every tree and plant on the property. The goal was to build a lodge that enables guests to live among the animals and view the forest up close with the hope that every guest will return home with an increased appreciation for and commitment to the preservation of the Amazon rainforest.

Guests can only reach Treehouse Lodge Resort, the only all-inclusive treehouse lodge in the Amazon delivering a once in a lifetime experience, via an hour-long boat ride from Iquitos, after which they’ll climb 34 to 67 feet to one of eight circular tree houses above the forest canopy. Located in the Peruvian Amazon at the confluence of the serene and protected Yarapa and Cumaceba rivers near the Pacaya Samiria Reserve, Treehouse Lodge Resort provides a perspective of the forest that most visitors never experience... the tree top canopy.. Squirrel monkeys, macaws, sloths, and other rain forest denizens frequent the 345-acre eco-resort but guests don’t need to worry that they will be sacrificing any of the usual comforts found on the ground. Every bungalow is equipped with showers, sinks, toilets, and pristine white linen.

February, 2019 | ResortNews

Your personal treehouse bungalow gets you up off the jungle floor and helps you enjoy the airy relief from the heat and humidity. Suspended walkways from each tree house lead to a central commons tree house where meals and refreshments are served. Sure, you’ll get a little extra exercise walking up to your bungalow, but after a feast of Peruvian-inspired gourmet meals, you’ll welcome it. The treehouses vary in design and features depending on the many beautiful meandering trunks and roots, and are able to accommodate from one to six guests in a range of king, queen and twin beds. The thatch-roof structures

average 18 feet in diameter, and a railing, light curtains, and optional mosquito netting are the only things separating you from the rain forest. Treehouse Lodge operates off a solar power system that covers all of the electrical needs of the lodge including lights, fans, kitchen, refrigeration and freezing, and communication and the management team is justifiably proud of their ability provide a beautiful experience for our guests without negatively impacting the environment they’re trying to share. Treehouse Lodge was built by hand, with no heavy equipment,

TOURISM

And if the accommodation isn’t ‘unusual’ enough, the list of daily activities might be: Guests have a personal guide, and daily excursions start an hour before sunrise when one is transported by boat along the Yarapa and Ucayali rivers until you reach the Amazon River. Here you will enjoy “breakfast in boat” while observing the world-famous pink and grey river dolphins during their morning feeding and if you’re feeling particularly adventurous you can jump in and swim with the dolphins. Other daily activities include guided wildlife tours to view sloths, monkeys, iguanas, and birds, dugout canoe adventures, fishing for piranhas, a blow-dart gun workshop or jungle walks to discover medicinal plants.

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Vale – Brian Thomas The passing of Brian Thomas gives us all an opportunity to reflect on his nature and actions in being so helpful to the management rights industry in its foundations. Brian was truly a gentleman in all respects, who did not look for any personal gratification or benefits. He was always willing to listen and provide guidance for assistance, when called upon, both to assist people in need and to determine reasonable directions for the industry in regard to the financing of management right business. My earliest memories of Brian go back to the 1970s when he was a National Australian bank manager on the Gold Coast and he was the “go to person” in the world of Management Rights, for anyone seeking finance to acquire or run their management rights business. The Management Rights industry was in its formative stages at that time. His abilities were quickly picked up by Dave Allan, to strengthen the commercial foundations of management rights. Dave had retired from his very senior role in the Army and had moved into the world of Management Rights by purchasing his own business and then commencing a Real Estate Agency specialising in management rights. Brian foresaw that the bank could play an important role if properly guided and regulated in financing managers of buildings. There was a particular point in time where he arranged a meeting with important persons in the bank to meet with himself, Dave Allan and myself to have the bank understand and cement his position in financing management rights with proper security. Later on, he played an important role in insuring that the legislation protected banks from their investment of loan funds into Management Rights. Later in his life, Brian applied his considerable expertise

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in the field of management rights by moving from being a bank manager to actively assisting buyers and sellers of management rights as a real estate agent, with Dave Allan’s real estate agency on Chevron Island, Gold Coast. In all my years of dealing with Brian, I never heard him utter a bad word or comment about any other person and his reasoned approach to all situations was something to take notice of. I pay tribute to Brian for his personal strength, business acumen and willingness to assist anyone in need. – John Punch

Infrastructure Australia gets new CEO After 13 years as CEO of the Green Building Council of Australia, Romilly Madew is stepping down to head up Infrastructure Australia.

Star ratings. Today, we boast in excess of 2250 certified projects,” the chairman of the GBCA’s Board of Directors Rod Fehring said. Ms Madew said she was proud of the GBCA’s role in supporting a more sustainable built environment and pointed to the expansion of Green Star beyond the commercial office sector and into airports, hospitals, train stations, and major urban renewal projects.

Legrand Australia Appoints New CEO Davide Colombo joins the Australian team with over 17-years experience with the Legrand Group internationally.

under five premium brands including HPM, Legrand, Bticino, Cablofil and CP Electronics. This places the business in the optimal position to cement itself as a market leader in new innovations and customised solutions that meet a range of applications for today’s building sector,” Colombo said. Legrand Australia’s former CEO, Tony Berland, departed the role early January 2019, accepting the position of CEO of Legrand India, the Group’s fourth largest market.

UDIA Queensland welcomes new Director The Urban Development Institute of Australia Queensland President Ian Murray is pleased to welcome Maria Dracakis to the Board of Directors in 2019.

Davide Colombo

Romilly Madew

Announced by the Infrastructure Australia Board, Ms Madew is now the CEO of the independent advisor to the Australian government on nationally significant infrastructure priorities. Ms Madew has run the GBCA for over a decade and in that time been recognised internationally for her role in promoting sustainability in the Australian built environment. She won the World Green Building Council’s Chairman’s Award in 2017, and in 2015 she was awarded the International Leadership Award from the US Green Building Council. “When Romilly joined the GBCA in 2006, just a handful of projects had achieved Green

Legrand Australia has appointed Davide Colombo as CEO effective immediately. Colombo previously held the position of Vice President for Strategic Planning since 2016, where he was based at Legrand’s headquarters in Limoges, France. Legrand Australia CEO Davide Colombo said, “I’m thrilled to be joining the Legrand Australia team, a region which has been recognised internationally for its innovation, strong supplier relations and consistent business growth.” Boasting a 17-year work history with the Legrand group, Colombo brings a wealth of business acumen to the position, along with extensive product knowledge from working with brands such as Bticino and Legrand in various senior Sales & Marketing positions. “In Australia, Legrand manufactures and distributes

EVENTS & APPOINTMENTS

Maria Dracakis

Maria Dracakis is Development Director at Jadecorp Property Development + Construction, one of Brisbane’s most dynamic private development companies. She has more than 20 years’ experience in the industry and has delivered numerous residential projects across Brisbane in that time. Maria has been an active Institute member since 2015. ResortNews | February, 2019


“Maria brings a wealth of experience and a fresh perspective to the Institute,” said Mr Murray, “and we’re delighted to have her on the Board.” The UDIA Queensland Board of Directors is elected annually and provides valuable governance and strategic direction for the Institute’s policy agenda and activities.

Premier Business Sales: new but old Premier Business Sales is a refreshing new option for buyers looking to purchase and sellers looking to market their property and secure a sale in the accommodation business segment. Although the company is new the three Directors of Premier Business Sales, David Rotheram, Scott Saunders

L to R David Rotheram, Jim Beard & Scott Saunders

and Jim Beard are leading performers in the industry, bringing together a wealth of knowledge with over 25 years of combined experience in the accommodation business industry. Specialising in the marketing

and sale of management rights, motels and caravan parks, Scott Saunders said: “We strive to not only meet our client’s expectations but to exceed them and ensure that their experience is both profitable and totally satisfying”.

Having a likeminded approach, the team at Premier Business Sales mark their success on building strong relationships with sellers, buyers and industry professionals and look forward to expanding their footprint beyond Queensland and New South Wales.

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EVENTS & APPOINTMENTS

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Events event attracts major players Hospitality heavyweights from throughout AsiaPacific will converge on Melbourne in February for a convention designed to showcase the region’s best event spaces and destinations. The Asia Pacific Incentives and Meetings Event (AIME) has announced a stellar line-up of major players among the attendees confirmed for the Australian-hosted conference. Exhibitors will include Melbourne and Olympic Parks (M&OP) previewing a new function centre opening in 2022; the NSW government showcasing the state’s diverse range of venues; and Tourism New Zealand highlighting the most appealing function spaces in Aotearoa – found in some of the most scenic locations on the planet. “New Zealand’s business event offering continues to grow, with two new world-class convention centres under construction in Auckland and Christchurch and one announced for Wellington last week,” said Anna Fennessy, Tourism New Zealand’s global manager for business events. “The range of activities and experiences available in New Zealand are varied and

unique, offering conference delegates a memorable experience. We are excited to showcase this at AIME 2019.” M&OP, home of the Australian Open tennis tournament, will demonstrate their range of venues located on the edge of the Melbourne CBD, including the new function centre at the heart of a $1 billion redevelopment. “We’re incredibly excited to unveil our state-of-the-art function centre at AIME – offering delegates the opportunity to be the first in the world to book their business events for 2022,” said M&OP’s Lara Burnes. “Attendees will be treated to a host of event spaces all within a stone’s throw of the Melbourne CBD, and with flexibility to cater for everything from bespoke intimate dinners to large scale conferences and events.” The NSW government, meanwhile, will represent some of the state’s most iconic destinations, venues and “hidden gems” from its largest-ever stand at the annual event. State minister for tourism and major events, Adam Marshall, said AIME will provide a platform to encourage event planners to visit the Meet in Regional NSW website, a one-stop shop that promotes more than 330 venues for those

looking to host their next event. “Next year will be the first time we’ve had 24 co-exhibitors from across regional NSW participating at AIME, so it’s fantastic to have this opportunity to shine a bright light on our incredible conferencing destinations and venues,” Mr Marshall said. “The conferencing industry is currently worth $173 million in overnight visitor expenditure to rural and regional NSW, and we look forward to growing this number even further as a result of our presence at AIME 2019.” With two months to go before the industry event, AIME 2019 has confirmed attendance by exhibitors from across 20 different countries, reflecting the Asia Pacific region’s many and varied destinations and cultures. It will be held at the Melbourne Convention and Exhibition Centre from 18 – 20 February.

Fashion and rugby the dream team for Sydney tourism Two major events will be added to Sydney’s social calendar over the next three years, injecting an extra $21 million into the visitor economy. Destination NSW has confirmed the city as the first to host the Rugby League World Cup 9s, with the inaugural tournament to be played at the new Western Sydney Stadium in 2019.

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than 13,300 overnight visitors to Sydney, worth around $11 million to the NSW economy, while fashion week will attract more than 8,000 visitors and generate some $10 million in visitor spend to 2021. The Rugby League World Cup 9s will be held on October 18 and 19, featuring the best rugby league players from Australia and around the world. “We promised blockbuster events for Western Sydney Stadium and within six months of opening, it will host the inaugural Rugby League World Cup 9s,” said minister for sport and Western Sydney Stuart Ayres. “NSW is the home of rugby league in Australia and Western Sydney Stadium will provide the best sporting experience for fans anywhere in the country, making it the perfect location to host this event.” Describing Sydney as “the nation’s fashion capital”, state tourism minister Adam Marshall said the industry employs around 77,000 people and generates retail sales of more than $9 billion. “Our support for MBFWA showcases Sydney’s iconic locations to the world and ensures Aussie designers continue to have access to a global audience of buyers, press and consumers each year,” he said.

The emerald city has also been confirmed as the home of Mercedes-Benz Fashion Week Australia (MBFWA) for another three years.

“MBFWA includes runway shows, trade showrooms, a seminar series and a weekend consumer event curated for fashion fans from around the country that puts more heads on beds, diners in restaurants, and shoppers in department stores and boutiques.”

Minister for tourism Adam Marshall says the rugby event is expected to attract more

MBFWA and MBFWA Weekend Edition will run from May 12 to 18.

EVENTS & APPOINTMENTS

ResortNews | February, 2019


Beachfront brunch & celebrity chef dining at 2019 Noosa Food & Wine Festival

Noosa Food & Wine Festival will return to the popular foodie destination from 17 – 18 May for four delicious days of great food, wine, live music and entertainment.

including beachfront brunches, dinners with celebrity chefs, live cooking demonstrations, hinterland trail experiences and a party under the stars.

The exciting 2019 program has something for everyone

Tickets and program details for 2019 are available now.

Accommodation Industry Golf Series tees off The 2019 Accommodation Industry Golf Series commences in March, and while it’s a venerable institution for some of the veterans of the industry, there are those who may benefit from hearing how it came about… In 1990/91, when business was still conducted face-toface and the property sector appeared to offer a little more time for socialising, Leigh Pearman of Surfers Paradise Locksmiths (SPL) and Brian Doyle of L&M Electrics started the ‘manager’s golf series’ by selecting a course and waiting to see which players would turn up and tee off. It was a prett y casual affair with 20-odd players being a large field. SPL was however on the expansion trail and it wasn’t long before Leigh had escalating work commitments and the golf days were left to Brian to manage. During one of the sessions, when things were running a little awry, Mike O’Farrell of MLR Services saw the opportunity to formalise and streamline the events, and playfully nicknaming

February, 2019 | ResortNews

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Brian,’Captain Chaos’, Mike offered to help and was soon made the first president of the group. Starting with a shoe box with a starting balance of coins and a couple of overdue accounts, Mike realised he needed a treasurer so Ray Richards, a participating developer who chose to play one day, became treasurer. The same group ran the golf through the 90’s, and turned the series into a viable and highly soughtafter series that would start each year with a healthy bank balance in excess of $10,000.

Player numbers climbed, regularly sitting between 80 and 100 on any given day, sponsors were introduced and the ‘Accommodation Industry Golf Series became a real club. Under Mike’s watch, the club developed and soon incorporated an annual road trip and an awards night - always held at Palm Meadows. The awards golf day and night became folklore and are still talked about to this day, often featuring 144 starters, drinks, entertainment from John Garfield and the largest ever seafood buffet seen on the coast.

EVENTS & APPOINTMENTS

It wasn’t all ‘fun in the sun’ however, Mike notes some of the more memorable “fails” during the 90’s including the failed trip to the Sunny Coast where 80 were booked, 25 went and they encountered horrendous rain and floods – the problem was that a helicopter had been hired to fly the winner home! Another time, on a road trip home from Korralbyn, a head count of members returning to the bus revealed one short and it took a two-hour man hunt to find the gent who had ‘slipped’ down the side of the road and decided to have a little rest; and the dunking of a motorised cart into one of the lakes at Paradise Springs (now the Colonial). The biggest issue was the Treasures brief case was still aboard! The fun and games are expected to continue, and while managers and those wrapped up in the accommodation industry may be a little more ‘occupied’ on a daily basis than in the early ‘90’s, the ‘club’ remains an institution for the industry and everyone is urged to join in – come and have fun. For further information on the series please contact event coordinator, Tracey Taylor on 0417 360 898 or taylor77@bigpond.net.au

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Brisbane releases inclusive plan Brisbane City Council just released “A City for Everyone: Draft Inclusive Brisbane Plan 2019-2029” and is seeking feedback from communities and developers from now until the 15 February 2019. The plan seeks that the city embraces all ages, abilities and cultures. The plan explores five key themes with Brisbane City Council making suggestions about how it might proceed with its continuing goal of improving accessibility and inclusivity in the city. Some aspects that may affect residents include: •

A dedicated employee to support development applications for housing that meets the needs of people participating in the NDIS.

Required walkways and cycling paths, accessible parking bays and safe setdown areas

Good neighbourhood planning for inclusivity

Inclusive work environments and business premises for differing abilities, ages and for tourists

Accessible park facilities

More developments to cater for people requiring higher-level access

Delivery of community facilities and change facilities in developments

A possible award for planning, designing and building accessible and inclusive facilities, housing and public spaces

And responding to the more than 200 languages now spoken in our homes.

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If you have any comments that you think should be included in an institute submission, please contact UDIA policy manager Martin Zaltron.

Plans to overhaul management of Surfers Paradise Hilton after $70m buy THE Hilton hotel at Surfers Paradise has been snapped up by a practicing doctor and airline owner from New South Wales for about $10 million less than the seller was hoping for. Dr Jerry Schwartz will pay $70 million for the five-star hotel, including management rights for both towers at the Orchid Ave site. The blue-chip Hilton hit the market via an expressions of interest campaign by its Chinese owners Ji Feng

Investments, which was hoping to make about $80 million. Property records show Ji Feng bought the package of three properties for a total of $73.9 million in 2011. The hotel features four food and beverage outlets, conference facilities, pool deck, gyms, day spa and 89 undercover car parks. Dr Schwartz’s family company is Australia’s largest privatelyowned hotel group with 12 hotels and 3000 rooms, including Rydges World Square, Rydges Central Sydney, Hotel Ibis World Square, Hotel Ibis King Street Wharf, Mercure Hotel Canberra, Mercure Hotel Sydney, Victoria Hotel Melbourne, Fairmont Blue Mountains, Rydges Newcastle, Crowne Plaza Hunter Valley, Novotel Newcastle, Sofitel Sydney Darling Harbour and the new Four Points by Sheraton at

DEVELOPMENTS

Sydney Central Park. Dr Schwartz is known as a turnaround specialist for underperforming hotels. “I believe there is enormous potential for growing the hotel’s business,” he said. “ The Hilton has not been reaching its potential and I will be seeking early talks with the global brand to figure out why.” He said many hotels struggled to succeed when operators combined holiday apartment management with core hotel operations. “It’s a trap that quite a few Gold Coast hotels fall into when they run together with management rights,” he said. “Units being in the same pool as the hotel detracts from the hotel running itself — there are too many room types and it makes it more difficult to run the hotel.

ResortNews | February, 2019


“I have great faith in the Gold Coast as Australia’s premier family, couples and groups market because its beaches, natural attractions, theme parks, events, restaurants and nightlife provide a complete tourism package that is attractive to both the domestic and international travellers.

highly energy efficient and fully powered on-site or by off-site renewable energy sources.

“The Gold Coast is ideally positioned to take advantage of the boom in international travel from Asia and the Pacific, and with Gold Coast and Brisbane international airports expanding their range of source markets, I thought it was the ideal time to enter the market.”

Dexus, Cbus Property and Nightingale Housing join other industry heavyweights including AMP Capital Wholesale Office Portfolio, Cundall, Frasers Property Australia, GPT Wholesale Office Fund, Integral Group, Stockland, the Sydney Opera House and the City of Sydney.

New restaurants and bars, punchy decor and a comprehensive overhaul of operations are all on the table under the new owner of the Gold Coast’s landmark Hilton hotel.

Property leaders commit to Net Zero future A trio of top property companies have committed to zero net carbon emissions as momentum builds across the industry for meaningful action on climate change. Dexus, Cbus Property and Nightingale Apartments are the latest property companies to commit to the Global Net Zero Carbon Buildings Commitment, a global initiative challenging organisations to achieve net-zero operating carbon emissions across their portfolios by 2030. Buildings have an enormous impact on the environment, with figures from the US showing they consume 41 percent of total energy consumption. A net zero carbon building, as defined by the WorldGBC, is

Reducing emissions across the property sector is driving demand for more renewable energy sources, explains the Green Building Council of Australia’s chief executive Romilly Madew.

Leading companies and organisations know that creating a more sustainable property or community will ultimately create a better outcome for both them as businesses but more importantly the communities they build for. Dexus chief executive Darren Steinberg said the commitment built on Dexus’s 2030 zero emissions goal. “Our net-zero target is supported by increasing renewable energy sources and improving energy efficiency, all while achieving lower carbon emissions,” he said. Cbus Property chief executive Adrian Pozzo said Cbus Property’s ambition is to be net zero carbon by 2030, with sustainability “built into their design and development processes”. “These ambitious targets will drive industry change and ensure we provide the best sustainable developments into the future.” In addition to their pledge to reduce their own operating emissions by 2030, all signatories

to the global initiative agree to advocate for all buildings to be Net Zero by 2050. “Under these commitments, there will be 320 Australian buildings, including major CBD towers, that will be net zero by 2030,” GBCA Head of Market Transformation Jorge Chapa said. “That energy load is equivalent to eight per cent of a coalfired power station in a year, or the annual power use of more than 35,000 homes.” The commitments were announced at the United Nations Framework Convention on Climate Change’s global Conferences held in Poland.

Older generation leading ‘Skyhome boom’ Cashed-up older Gold Coasters are leading the charge into multimillion luxury units along the coastal strip as the “skyhome” boom takes hold. Instead of settling into traditional mansions, the upwardly mobile are forking out $1-5 million to live close to the light rail route in Main Beach, Surfers Paradise and Broadbeach. The Gold Coast City Council has approved or are assessing more than five “boutique” towers, each fewer than 10 storeys and with only one or two units per floor. Penthouse and apartment living is not only low maintenance, it also offers occupants the ability to leave everything behind and travel for months on end. Prestige property real estate agent Robert Graham, of Ray White, said interest in the multimillion-dollar living spaces was being driven primarily by older buyers looking to downsize. “The people who are picking these up are Baby Boomers who

February, 2019 | ResortNews

DEVELOPMENTS

are happy to pay a great price for a great product,” he said. “They want to move away from big homes to spectacular beachfront properties which have less maintenance costs and that is what driving this change in the market.” UDIA Gold Coast president Finn Jones said the trend was reflective of the city’s ageing population looking for luxury. “These buildings are designed for upwardly mobile investors with families and investors who want room in the urbanised environment,” he said. “People want to be out of the suburbs and into places where they can get coffee and live near the light rail.”

Potential state development area Department of State Development, Manufacturing, Infrastructure and Planning is currently investigating the potential to designate the Tropical North Global Tourism Hub (GTH). The Tropical North GTH is intended to connect Queensland with new and emerging tourism markets, deliver new public space, and provide new lifestyle and entertainment offerings. It aims to integrate Cairns Convention Centre, The Reef Hotel Casino, and Pullman Hotel and Resort with the site. State Development Areas are created under the State Development and Public Work Organisation Act 1971 in order establish greater planning and development certainty for project proponents and streamline the assessment process. A development scheme is then drafted to regulate development within the designated area.

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New Managers

www.accomproperties.com.au

Sales Report

Diamond Cove Resort, Mermaid Beach

MANAGEMENT RIGHTS Gold Coast

L – R: Linda and Wayne Stoll, Brad Qiao and Narelle Filmer

The Think Management Rights team would like to congratulate Brad Jian Qiao on the purchase of the management rights business to Diamond Cove Resort, Mermaid Beach. With a degree in finance and accounting, and an extensive background in sales and customer service, Brad views management rights as a great business to utilise his skills and experience. As a single

father he was also looking for a business that would give him some flexibility to spend time with his young son. Diamond Cove was just the challenge and opportunity that Brad was looking for and since taking over the management, he has worked hard on building the business and improving community relationships. The TMR team wish Brad every success in his new business venture.

A fantastic start to the year for the fastest growing property portal AccomProperties has defied expectation with an incredible start to the 2019 year with growth across the board presenting some unbelievable numbers to our current partners. For January 2019 the portal delivered over 7,218 qualified commercial accommodation buyers viewing over 84,815 listings with an average session duration of five minutes and three seconds (Time each prospect spent on the portal via Google Analytics). Overall users were up 44.48 percent and listing views up 49.67 percent on previous months. Audience engagement and retention also increased with session durations up, pages per session up and bounce rate down nearly 10 percent showing more buyers are switching to the portal

36

due to the market coverage (with all major brokerages listing on the portal), ease of use and visibility of the portal through search engines. The results can be attributed to continued refinement of digital marketing strategies and organic page one presence on Google for major keywords including “Management Rights”, “Management Rights for sale Gold Coast” and “Motels for Sale”. Continued paid support of the portal through digital media channels have further fed the growth trajectory with social media now playing a vital role in driving qualified buyers to the site. As we continue to grow both in market coverage and audience reach we look forward to what we consider will be a milestone year for AccomProperties, and the results that it delivers for us and our partners. PROPERTY

Lakeside Signature

Brian & Judith Rangott

Merrimac

The Esplanade

Brett and Candice Flannigan

Burleigh Heads

TMR TMR

Pacific Surf

Ann and Allan Jones

Bilinga

TMR

Pacific Regis

Rick Nicholson

Burleigh Heads

TMR

Diamond Cove

Brad Qiao

Mermaid Beach

TMR

Surfers Chalet

Carolyn and Garry Witt

Surfers Paradise

TMR

Montana Palms

Julie & Steve Keim

Mermaid Beach

TMR

Blue Waters Apartments

Blue Waters Hospitality P/L

Labrador

MRS

Foreshore Beachfront Apartments Peter McAuley

Mermaid Beach

RBA

Pacific Views Resort

Main Beach

RBA

Transactional Management Consultant

Tallebudgera Cove

Chris & Ian Berry

West Burleigh

RBA

Santa Fe Apartments

Devita Management

Labrador

RBA

Brisbane South Ridge

Angela Meng

Gailes

MRS

Parkwood Gardens & Two & Two Handford Road

William and Linda Wang

Taigum

RBA

Pure Apartments

BB & DD

Springwood

RBA

Serenity Terrace Homes

Ao (Eric) Jia

Woolloongabba

RBA

Pearl and Velo

Elliot Property Management

Lutwyche

RBA

Sunshine Coast / Wide Bay / Fraser Coast On The River

Peter & Coral Roil

Maroochydore

TMR

Kingsway

Kathy & Michael Mcguire

Caloundra

TMR

North Queensland Castlepoint

Julie Hobson & Jess Holmes

Belgian Gardens

RBA

Jack & Newell Holiday Apartments

Jodie Lee & Michael Maguire

Cairns City

RBA

Joshua Raines

Byron Bay

MRS

Jessie Xi

Box Hill

RBA

New South Wales Eco Beach Resort

Victoria Canterbury Rise

MOTELS & OTHER Queensland Coconut Palms on the Bay

O. Kenny

Hervey Bay

Sunseeker Motel

Lisa & Michael Imhoff

Scarness

RBA

TB

Queens Beach Tourist Village

JJ Greer Nominees

Bowen

RBA

New South Wales Artesian Spa Motor Inn

Sunil Singh

Andrew Miller

TB

Waterview Motel

Andrew Miller

Batemans Bay

RBA

Copacabana Shores

M. Shi

Copacabana

Cousins Motor Inn

Tom Grogan

Inverell

RBA

TB

Motel Kempsey

Winston Li

South Kempsey

RBA

Cobb Inlander Motel

Peter Dorahy

Hay

CRE

Victoria Seahaven Village

O'Connor

Barwon Heads

Grand Central Hotel

Nektaria Katsaounis

Cobram

TB CRE

Note: Agent/Broker involved in the sale is listed last. Agent - KEY: ARMS - 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; TO - Tom Offermann; TB - Tourism Brokers; TMR - Think Management Rights; SC - Stratacorp. * In conjunction

ResortNews | February, 2019


Think Management Rights

Think Management Rights are expanding their sales team across Queensland Think Management Rights are expanding and would like interested Real-estate sales people, experienced Management Rights/Hotel managers, please contact Wayne Stoll on 0452181505 or email wayne@thinkmanagementrights.com.au.

IF YOU ARE THINKING OF BUYING OR SELLING A MANAGEMENT RIGHTS BUSINESS DEAL WITH THE EXPERTS! With over 30 years combined experience as owner/operators and sales agents in the Management Rights Industry. This highly successful team gets results! WHY CHOOSE US?  Free Consultations & Expert Advice Confidential Free Appraisals We qualify every purchaser and match  them to a MR business that suits their  individual needs Continued after sales service

South East Queensland Narelle Filmer 0459 229 744 narelle@thinkmanagementrights.com.au

South East Queensland Wayne and Linda Stoll 0452 181 505 0419 506 760 wayne@thinkmanagementrights.com.au

Narelle Filmer 0459 229 744 narelle@thinkmanagementrights.com.au Wayne and Linda Stoll 0452 181 505 wayne@thinkmanagementrights.com.au

Sunshine Coast Barry and Sharyn Alleway 0411 411 987 barry@thinkmanagementrights.com.au

Sunshine Coast Karen & Mark Ison 0434 314 038 karen@thinkmanagementrights.com.au


MANAGEMENT RIGHTS RESORTS

SURFERS PARADISE

SURFERS PARADISE

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

NETT $329,000 PRICE OFFERS OVER $2,750,000

OPPORTUNITY AWAITS

Bobo Qi

0438 027 771

Leave the car behind and enjoy this perfectly located Gold Coast Management Rights. So close to the GLink tram and a few minutes to Broadbeach, Pacific Fair Shopping Centre and Cavill Avenue. Close proximity to the Gold Coast Convention Centre and Star Casino make this complex a popular holiday destination. Management Agreements have 20 years remaining with a rewarding Body Corporate salary of $63,000. Plenty of potential upside for an enthusiastic incoming manager to improve income with eleven of the resort’s apartments under management with outside agents.

bobo@propertybridge.com.au

NETT $177,000 PRICE 1,297,000

CARRARA

MERMAID BEACH

ADDRESS OF SUCCESS An immaculate permanent gated resort in a prestige central Gold Coast enclave. Ideal family location with top state and independent schools nearby. Spoilt for choice with easy access to the beach, Pacific Fair and Robina Town Centre. A dream for the golfing enthusiast with resort courses surrounding. The business is secured with Body Corporate remuneration of $170,000, a substantial letting pool, streamlined office systems and Management Rights Agreements with 21 years to run. Thriving business, delightful home, premium location – it’s all here!

NETT $253,000 PRICE $1,950,000

BEACHSIDE HOTSPOT

Rhonda Perkins 0418 767 115

rhonda@propertybridge.com.au

Versatile beachside Gold Coast holiday and permanent resort. Low maintenance facilities and minimum gardens. Generous Body Corporate remuneration of $106,000 and long agreements. Immaculate office and reception on title with no set hours. Delightful 2 bedroom, 2 bath apartment with courtyards front and rear. Plumb in the heart of the action with scope for growth. Location is the key here! The current tide of investment and infrastructure is on your doorstep.

NETT $223,000 PRICE $1,562,000

propertybridge.com.au


EXCLUSIVE MANAGEMENT RIGHTS PURCHASE OPPORTUNITIES VARSITY LAKES •

Large ‘Rare’ central Gold Coast Permanent Complex

76 of 99 Townhouses in the letting pool

3 Bedroom, 2.5 bathroom townhouse

Substantial BC remuneration of $212,000

Perfect for husband and wife team

NETT PROFIT $386,400

TOTAL $2,900,000

SURFERS PARADISE •

2 Managers apartments, 1 x 1 Bed, 1 x 2 Bed

High-rise complex with 109 keys, 42 units in Letting Pool

25 Year Caretaking and Letting Agreement

Large tower style complex

Excellent building facilities and attractions

NETT PROFIT $420,000

TOTAL $3,300,000

SURFERS PARADISE •

106 Unit Surfers Paradise Beachfront location

2 Bedroom, 1 bathroom managers apartment

Perfect upside for an experienced operator (Huge growth potential)

High rise tower with minimal grounds

Massive potential to grow occupancy and letting pool

NETT PROFIT $342,236

TOTAL $2,415,000

SOUTHPORT •

94 unit unique holiday opportunity with substanitial upside

2 Bedroom, 2 bathroom managers unit

Accomodation Module

Room to increase letting pool & occupancy

Close to the Broadwater and all amenities

NETT PROFIT $205,000

DUSTIN ALLEN

CHARLES NURSE

M: 0424 104 310 E: dustin@stratacorp.com

M: 0424 104 310 E: charles@stratacorp.com

WWW.STRATACORP.COM

If you are looking to buy or sell, contact us!

TOTAL $1,370,000

1800 111 622


ULTIQA awarded Signature deal Little Projects recently announced global manager, ULTIQA Hotels & Resorts, as the successful purchaser of the management rights for its 256-apartment project, Signature Broadbeach. During the five-week expression of interest campaign over 20 local and international groups vied for the opportunity to secure the 25-year term agreement covering Signature’s maintenance, letting and real estate rights. “The management rights to quality buildings of scale are increasingly hard to come by on the Gold Coast, particularly in Broadbeach, where both tourism and real estate markets remain buoyant,” said Little Projects Director, Leighton Pyke. “Signature Broadbeach presents a highly attractive proposition for operators, given its contemporary Rothelowman design and interiors by SJB, plus a level of amenity which has never been seen before on the Gold Coast,” said Pyke. “With many aging complexes in the area and a scarcity of new developments on the market with this level of elevated quality, the response to Signature exceeded all expectations.”

Signature Broadbeach was the top selling project for the Gold Coast in Q1 and Q2 2018 and has proven there is great appetite for design-led projects that are rich in amenity, crafted to a high-quality and well positioned in desirable locations. Moreover, it demonstrates the value of projects that create a quality of life beyond the confines of an individual apartment and build a sense of community across multiple levels.

valued at approximately $60M. “Signature Broadbeach is a significant addition to our portfolio and represents an exceptional standard of well-appointed apartments in excellent locations,” said ULTIQA’s Chief Executive Officer, Mark Henry. “We seek

properties that demonstrate a combination of high quality, luxury and comfort and for us Signature Broadbeach is the epitome of this.” Signature Broadbeach will commence construction in early 2019 and is expected to be completed within 24 months.

The community focus and dedication to amenity at Signature Broadbeach continues to underpin the projects’ success, with the each of the 256 residences oriented towards the ocean and all benefitting from a huge 50-metre infinity edge pool, an expansive outdoor lawn, stateof the art gymnasium, on- site café, private cinema and more. “For us, the sale was all about who could deliver longterm value for our Signature owner-occupier residents and investors, as well as maintain the desired experience that Little Projects seeks to deliver, which is why we were immediately attracted to ULTIQA,” said Pyke. “ULTIQA’s track record in resort management in Broadbeach and internationally gives us great confidence that the group will fulfil the high expectations we have set for the project.” With the addition of Signature, ULTIQA’s current portfolio is

The Pavilions at Peregian Springs management rights purchased Troy and Jenni McNeish have taken over the reins of Sunland Group’s 233-townhouse luxury residential community, The Pavilions at Peregian Springs. The husband and wife management team recently relocated their family to the Sunshine Coast from Terrigal on the New South Wales Central Coast. After inking a deal with the master developer to run the luxury estate, which was built for $80 million and launched in 2015.

they held management rights to High Park Tower, a 21-storey high rise with 220 apartments, 30 offices and five retail shops, located in the heart of Chatswood, New South Wales. Troy said managing The Pavilions ‘ticked a lot of boxes’, so relocating was one of the easiest decisions they ever had to make.

@realty agent Kristine Lehmann, who specialises in management rights and off-the-plan deals, brokered the deal between Sunland Group and the McNeishs. Troy and Jenni are no strangers to managing large residential communities. For 14 years,

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ResortNews | February, 2019


He said the family visited the Sunshine Coast on holidays and quickly realised it would be great to raise a family within the master-planned environ of Peregian Springs, 10 minutes south of Noosa. “Having a quality product to lease or sell, especially with a wow factor like The Pavilions, makes our job easier,” said Troy, who lives on site with Jenni and their three children in an architecturallydesigned split-level property. “It has been a whirlwind of an experience purchasing this business, but one of the best decisions we have made - we have been very fortunate to find

this complex in this location. “When the market is tough we are in a strong position to continue to lease our properties while others sit idle, as they are highly sought after. “It is a new complex, in a great location, built by a developer that has a good reputation, therefore on-going maintenance will be minimal and the properties will be attractive for prospective purchasers. Ms Lehmann said the management rights for The Pavilions were on the market for about a month and there was interest from multiple potential buyers.

Vendors score in collective sale Vendors scored $1.5 to $1.8 million in the collective sale of a block of six old apartments at North Cronulla. In what some believe is a sign of things to come, a block of old flats opposite The Wall at North Cronulla has sold for more than $10 million, a record figure for Sutherland Shire. Owners of the six units will each pocket between $1.5 million and $1.8 million. Agent Daniel Moroko of Highland Commercial Property who negotiated the deal, said the vendors included owner occupiers and investors. “They have done much better through a collective sale,” he said.

February, 2019 | ResortNews

“Sold separately, the units may have fetched only $600,000 to $700,000.” Mr Moroko said the sale price of “a touch over $10 million” had set a new record for development sites in the shire based on the square metre rate. The site is 586 square metres, and reflects a sales rate of $11,500 per square metre.

Jack & Newell sale caps $25m year for leading brokerage Management rights to the Jack & Newell Apartments on the Cairns Esplanade have been sold, capping a $25-million year of accommodation property sales in Far North Queensland for specialist agency Resortbrokers.

growth that goes hand in hand with a visitor economy that lifted by more than 20 per cent in the 2018 financial year,” Ms Lowis said.

Local brokers Kirsten Lowis and Chenoa Daniel confirmed the Jack & Newell had been sold to Brisbane couple Jodie Lee and Michael Maguire, who have relocated to Cairns to operate the prestige apartment resort.

Built in 2004 by high profile developer Tom Hedley, the Jack & Newell Apartments feature luxury one-, two- and three-bedroom apartments all with stunning views across Trinity Inlet.

The sale, for an undisclosed price, includes the holiday letting business with 15 apartments in the letting pool, and a two-bedroom, two-bathroom manager’s apartment on the second floor. “Cairns is thriving as a tourism powerhouse and these buyers were attracted to the opportunity for business

Mr Moroko said a shire-based developer had bought the property and was looking at building five luxury apartments, one per level.

“Occupancy and room rates have strengthened as a result, making it a great time for exiting owners to sell on improved trading figures, while there is still good upside for buyers given the outlook for continued growth.”

Facilities include a wellequipped gymnasium, podium-level resort pool, barbecue area, tour desk and secure onsite parking. Departing Jack & Newell operators Mark and Rata Purdy, who owned the business for three years, are understood to be returning to their home country, New Zealand.

”The developer is of the belief quality sites in beachfront locations will work regardless of the current market,” he said.

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Brisbane property:

Catching the eye of savvy investors the management rights sector, Mahoney adds: “Large and medium permanent complexes are still in strong demand and even smaller ones seem to be attracting strong interest.

By Trish Riley, Editor

With Australian property markets in flux, it’s hard to find certainty or for that matter industry expert consensus, on whether the market is likely to strengthen or weaken. The overriding opinion on Queensland property however, and Brisbane in particular, is that it’s on the up, and definitely a market worth keeping a close eye on. Brisbane, or the ‘river city’ as the locals call it, is one of the world’s great cities. Liveability, affordability, scale and future economic prospects all suggest that Brisbane is a market where you can confidently buy. With improving economic growth and jobs creation supported by the biggest infrastructure spend since the 2011 flood recovery, more and more investors are now looking for opportunities in Brisbane where properties are more affordable, rental yields are relatively higher and future prospects for the market look bright.

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Darren Brent, managing director of Property Bridge

John Mahoney, Mahoneys

So, is it the right time to follow the sun and move into the Brisbane property market? That’s a question being asked by more and more property investors who have been priced out of Australia’s two big capital cities. Darren Brent, managing director of Property Bridge seems to think so: “Brisbane is much better placed than Sydney or Melbourne as a value proposition. “More families and downsizers from the southern cities are moving to South East Queensland to cash-in for a

lifestyle in the sun and this has made Queensland Australia’s number one destination for internal migration.” John Mahoney, of Mahoney Lawyers agrees: “For a number of reasons I see the Brisbane property market performing reasonably well in the next three to five years. Brisbane’s population levels are increasing and the unemployment rate is improving. “Property values are falling in many parts of Australia, but the Brisbane property market seems to be steadily gaining pace. When asked specifically about

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“We have seen no slowdown in transactions in this market over the past 12 months. Obviously, short-term complexes are not as popular in Brisbane and are not attracting the same level of multiplier, as there isn’t the same demand as on the Gold and Sunshine Coast for holiday lets, and they are seen to be more difficult to operate. “Rents may be soft currently (as they have been in the past 12 months) but I do not expect that they will drop further. In fact, I would expect modest increases.” Greg Jorgensen of MR Sales concurs: “Sales of ‘permanent’ buildings remains good, but it comes down to location, net profit and the manager’s unit price. There was a period in the first half of 2018 where anything inner city was ignored by most buyers based on the perceived and widely advertised ‘over supply problem’, however, this changed in the latter half with enquiries increasing.” ResortNews | February, 2019


Looking ahead, economic forecaster BIS Oxford Economics says Brisbane will lead the capitals, with 13 percent property price growth predicted by 2021. During 2018 house values in Brisbane rose by a modest 0.4 per cent while unit prices fell by 0.7 percent, resulting in overall growth of 0.2 percent. The property market is likely to record positive growth in the order of three to five percent this year as the underlying market drivers are now strengthening. Moreover, the decreasing number of listings and the slump in building approvals in the state are expected to boost prices further as supply becomes limited. Only around 5,000 apartments are due for completion this year, a far cry from 11,000 a few years ago. Not everyone believes the region’s capital is quite where it should be however. While certain gems in Queensland delivered fair returns for property investors in the past year, experts believe that the state, and particularly Brisbane, could have done better. According to Propertyology’s Simon Pressley, the state’s economy had failed to capitalise on the Asian Century phenomenon, or the notion that Asian politics and culture are prominent in the global economy. He expressed disappointment with the lack of planning, marketing and boldness to capitalise on the world-wide tourism boom that is now on its sixth year. “Despite having more tourism attractions along its coast than any other state, Queensland was ranked a disappointing fifth on most tourism metrics.” Still, the property expert believes that the next few years hold a brighter future for all of Queensland’s major metropolitan centres, spurred by the acceleration of interstate migration and a boost in the mining sector. According to the Brisbane City Council Economic Development Plan 2012-2031, despite uncertainty elsewhere, the economy is predicted to be worth more than $217 billion by 2031. The affordability February, 2019 | ResortNews

factor, with Brisbane’s median house price now far lower than Sydney and Melbourne, as well as higher rental returns, is likely to drive more interstate investment into the city. And as we’re hearing across the board, local affordability and the lifestyle advantages has resulted in strong interstate migration (+17,426 last year) up 50.5 percent from previous year. At the same time 12.7 percent of our overseas migrants are settling in Queensland and interest from foreign investors is rising. So, where are these buyers coming from? John Mahoney responds easily: “The majority of our buyers are Chinese – both locals and from overseas, but the experienced Australian buyers are still active. I would estimate that around 75 percent of management rights in Brisbane are held by Chinese interests,” he adds.

Specialist Business Advisors to the Management and Letting Industry Brisbane Level 4, 97 Creek St, Brisbane 07 3002 2699

When asked if brokers are seeing any sort of cycle or trend regarding sales, Greg says: “January is often the month where people are relocating from interstate or coming in from overseas so there is always a good level of demand in the second half of the calendar year and over the Christmas period. 2018 was no exception with a very busy last quarter. “Over the last twenty years Australia has been very successful in attracting skilled workers to our shores,” says Darren Brent. “This has been an important factor underpinning our record run of continuous economic growth. And if we are going to extend this run of growth, then migration will have a huge role to play. “With more people needing dwellings near their job, this data translates to an increased demand for homes and, ultimately, greater returns on investments.” According to HIA, Australia’s population grew by 1.6 per cent over the year, with Victoria and ACT seeing the largest rise at 2.2 percent, followed by Queensland with 1.7 percent, New South Wales with 1.5 percent, Tasmania with 1.1 percent, Western Australia with 0.8 percent and South Australia with 0.7 percent. PROPERTY

Gold Coast Level 3, Southport Central 3, 9 Lawson St, Southport

Scott Wicks: scottw@archergowland.com.au Smiljan Jankovic: smiljanj@archergowland.com.au www.archergowland.com.au

TheManagement Rights Lawyers BUYING/SELLING ASSISTANCE

OFF THE PLAN IMPLEMENTATION

RENEWAL STRATEGY

DISPUTE RESOLUTION

www.mahoneys.com.au 43


And according to the Australian Bureau of Statistics 2016 Census the population of Greater Brisbane, which encompasses the local government areas of Brisbane, Logan, Ipswich, Redcliffe and Moreton Bay is 2,270,000. This is expected to continue to experience solid growth at an average of 62,410 people per year over the coming 10 years. While family households are expected to see the largest increase over the next 10 years, the Australian Bureau of statistics projects that lone person households will have the highest growth rate leading into 2028, averaging a 2.4 percent increase per annum. This is followed by family households which have a projected average growth rate of 1.8 percent per annum over the same time frame. Group households are set to see the smallest growth rate at an average of 1.4 percent per year. Like everywhere else in Australia, the Brisbane property market will be driven by demographics – where people want to live, how they want to live and how much they can afford. Within Brisbane, it appears that southern migrants and local upgraders are favouring premium property in blue chip inner ring areas close to the

suburb property values.

Like everywhere else in Australia, the Brisbane property market will be driven by demographics – where people want to live, how they want to live and how much they can afford CBD and/or the river, leading to above average growth in desirable neighbourhoods like Hamilton, Paddington, Bulimba, Cannon Hill and Auchenflower. But as always, the market remains fragmented. Where some areas underperformed, 68 suburbs far exceeded the average level of growth and almost a dozen Brisbane suburbs had double digit price growth over the last year. And there are tens of thousands of properties out there that could all have their values increased through simple renovations. “A couple of interesting trends are emerging,” adds Brent. Currently, the market is being

infiltrated by Sydney investors ‘buying blind’. According to an article in Domain, Sydney investors are increasingly buying properties in Brisbane solely on photographs and skipping inspections. “Out of every 10 sales, five will be investors, and two will not have viewed the home, and that is a modest estimate. This is a further indication that investors are seeing the value offered and not wanting to miss out.” Research shows that those suburbs close to the city centre generally perform better than all others over the long-term, with ‘gentrification’ being one of the significant changes occurring and pushing up inner- and middle-ring

“Where the apartment rental market used to be largely aimed at the under 30-year age bracket, those making the move are increasingly in the 50-plus age group. They have often owned homes in the past, but are choosing unit living, with services and amenities, as it better fits their empty nester lifestyle,” says Jorgensen. Interestingly this isn’t caused by deliberate planning policy or the recent glut of available units, but rather has resulted from a set of demographic changes that have occurred in most major capital cities around the world. The exodus of industry, migrants and many workers made way for gentrification of the inner suburbs where initially house prices and rents were cheaper than in the suburbs. The changing demographics with declining household size, means that small inner suburban dwellings or apartments provide ideal accommodation for the expanding cohort of professionals who work in or close to the CBD. Gentrifiers are initially drawn to these inner suburbs by the low maintenance living, educational opportunities and lifestyle, and this trend continues today as more and more Australians are swapping their back yard for apartment living. And this brings us to Brisbane’s property ‘elephant in the room’… Having been the focus of much negative attention due to excessive supply levels, the river city’s apartment market values have started to rise, which may be a signal this sector of the market has reached its tipping point. “The market seems to have done a good job of regulating itself so that the doomsday predictions of the market collapsing from a massive oversupply has not eventuated,” says John Mahoney. “There are still a number of buildings with sometimes large numbers of apartments unsold by the developer but that has not adversely affected the market and the stock is gradually moving.”

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ResortNews | February, 2019


BRISBANE’S FINEST

HOT BOUTIQUE HOTEL STYLE CORPORATE • 71 x 1 bedroom serviced apartments in rental pool, short term letting • Manager’s apartment located on 16th floor • Firmly established business in busy corporate area • High repeat business, serviced by on-site cafe

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Nett Profit: $305,000 Asking Price: $2,664,000

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• Secure, gated complex with easy care gardens & facilities • 48 in the letting pool • Currently run under management, no set office hours • Easy access to major arterial roads for Brisbane & Sunshine Coast

Nett Profit: $215,000 Asking Price: $1,915,000

ID 7860

Nett Profit: $162,086 Asking Price: $1,250,000

Greg Jorgensen 0407 721 335

Mark English 0437 949 113

Greg has been directly involved in the Management Rights industry for some 18 years, having owned three inner city Brisbane complexes with his wife over 9 years and having been the former Managing Director of Australian Valuers, Australia’s largest management rights valuation firm.

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.

MR Sales have an extensive range of listings Australia wide Visit www.mrsales.com.au to view them now or Phone: 1300 928 556 | Email: sales@mrsales.com.au

www.mrsales.com.au

ID 8913


Consultancy BIS Oxford Economics expects new apartment completions in Brisbane this calendar year of 5700, almost half of the 10,700 they peaked at in 2017, and with new supply moderating, the sector is expected to continue its recovery into 2019. Rising demand will slowly absorb this excess stock, the only question remaining is just how long this will take. According to REIA, loan numbers declined nationally by 11.9 percent and loan sizes also fell over the quarter, with the average loan declining by 1.8 percent—the largest quarterly decline since March 2017. Across the property market, tighter credit conditions and the changes in serviceability assessment are expected to continue presenting issues for both lenders and investors. “Banking has gone through a significant shakeup,” says Greg Jorgensen. “The slowdown that we've been seeing is very much due to credit availability, which Brisbane is not sheltered from," he said. “I'd like to think that it will get easier to secure financing for property, but there are some real changes being made around serviceability and I don't think that's going away. There are still going to be certain lenders that might have some struggles there and there are still going to be some clients out there that will have a bit of a tough time. There can, and have been, finance approval delays in a contract process with letter of finance offers sometimes taking around 35-40 days from contract date.” With the royal commission’s recommendation imminent, Jorgensen expects the current credit squeeze to continue

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have to be the addition of a second runway to the Brisbane Airport at a total cost of around $1.3billion. The project is due for completion in 2020 and after eight years in the making, will become Australia’s largest aviation construction project. It has already provided hundreds of construction jobs and by 2035, it is expected to generate up to 8,000 new jobs and generate an additional $5billion dollars to the Brisbane economy. Greg Jorgensen, Mr Sales

through to the rest of 2019 but emphasizes that “with the population of SEQ expected to boom by a further 1.8 million over the next 25 years, the government needs to take steps now to manage the infrastructure requirements of future growth”. Justin Bond, partner, head of institutional sales, Queensland, said, “The maturity of the Brisbane investment market is becoming more defined, as many investors are drawn to Brisbane due to the infrastructure committed by the State Government and private sector. “The Cross River Rail, Queens Wharf development, Brisbane Live project and the expansion of the Brisbane Airport are some of the projects boosting the confidence of investors considering Brisbane as a destination for investment.” Moreover, a $5 billion-defence contract with Amberley is a significant boost to the region, along with a $340 million upgrade to the Cunningham Highway. There are many multi-milliondollar projects happening in and around Brisbane at the moment that are starting to create jobs, and more importantly get the economy rolling again. One of the biggest would

To put that into perspective that is almost half the economic output of a regional town like Toowoomba or more than a third of the output of the Sunshine Coast economy. The huge project will increase aircraft capacity to around a staggering 110,000 movements per hour and Brisbane is set to become the gateway to the rest of the country, in particular Asia. When asked about any impending legislative changes that may have an impact on the market, Darren Brent states: “There is always economic and business uncertainty in the lead up to an election, and any hiccups are dependent on both the federal and state government legislatives’ agendas. At a federal level, the oppositions’ proposed tax reforms include limiting negative gearing to new housing purchases only and halving capital gains tax discounts. These, together with the incumbent state government’s review ‘Open Doors to Renting Reform’ consultation process will continue to have an impact on the broader market until we have greater clarification.” As far as the management rights sector goes, John Mahoney believes the assignment process continues to present problems; often because of buyers who have had no

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experience in management rights or anything comparable. Should they receive sufficient professional guidance regarding the business opportunity and undergo the appropriate training before seeking consent, then that will make the process much less difficult.” And as if the environment isn’t sufficiently fluid, my interviewees were all asked what they predict for the market in 2019/20? “I believe it will be similar to 2018,” says Mahoney, “quite strong in the permanent market but moderate in the short-term market.” Darren Brent says: “Overall we see the management rights market as stable, and that it will continue to be a solid investment choice.” Greg Jorgensen is a little more cautious. “I see 2019/20 being moderate with stronger patches than others; a more conservative banking system is likely to subdue buyer volumes and therefore sales. So saying, it remains a buyers’ market in most price sectors of management rights with the hot property seeming to be ‘bolt-ons’ or ‘add-ons’, where there’s no real estate to buy, only the business, which can be run off-site from another location. All-in-all it appears that Brisbane’s property market is ripe for investment – its economy is improving, population is growing, infrastructure is being added and property remains affordable. Your biggest challenge will be to find the right property to buy. Sources: Domain, Michael Yardney, Propertyology, Smart Property Investment

ResortNews | February, 2019


Moorings on Cavill: looking through fresh eyes

By Trish Riley, Editor

The old adage of ‘a new broom sweeps clean’ has never been more apt than with the remarkable transformation experienced by the residents and guests of Moorings on Cavill, a renowned accommodation high-rise located in the heart of Surfers Paradise. In just 20 months, onsite managers and ‘power duo’, Tracey and Damon Anthony have turned the property around

from a building with a chequered management history and dubious reputation to a highly soughtafter accommodation option with a rapidly climbing Trip Advisor rating. Built in 1978, the 14-storey building is positioned among parklands and wide walkways just a stone’s throw from Surfers Paradise and it’s multitude of attractions; and it was just this factor combined with an existing system of allowing a lot of short-term bookings that meant an influx of party crowds and problem tenants. Realising quickly that a review

of the reservation criteria was critical, but acknowledging that it was a risky move, particularly so early on in their tenancy, Tracey and Damon amended the reservation system to 3-, 5- and 7-day stays, effectively ensuring that the property attracted a clientele that was looking for a family-orientated facility offering convenience and value. “The shift to a minimum of a 3-night stay over weekends affected our bookings in the short term,” says Tracey, “but it has slowly changed the vibe of the whole place. The owners are happy with the longer bookings

and we’re now in a situation where we regularly have back-to-back bookings for weeks on end.” The obvious question when learning of the couple’s challenges is why they took it on in the first place… “Hindsight is a wonderful thing,” says Tracey. “Quite honestly, we were unprepared for the all-encompassing nature of management rights, and this building in particular. I have had a lengthy career with a not-forprofit association and Damon was a successful project manager for an electrical infrastructure company in Melbourne.

Think Management Rights are proud to have sold the Management Rights business for Moorings on Cavill.

Narelle Filmer 0459 229 744 | Wayne and Linda Stoll 0452 181 505

www.thinkmanagementrights.com.au

February, 2019 | ResortNews

PROFILES

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Our experience of management rights was based on the times spent with good friends who owned one on the Sunshine Coast. “When we decided to buy, there were not a lot of buildings available that met our initial requirements. We had a specific budget and size in mind, and didn’t want a ‘walk-up’. Moorings on Cavill was larger than we expected and not on the beach as we initially wanted.

Tracey & Damon Anthony with Wayne, Linda and Narelle from Think Management Rights

“It was challenging to begin with, but as it turns out, Moorings is a perfect fit and we’re really happy with our choice. “Surfers Paradise sells itself,” adds Tracey. “The city, with its diverse mix of attractions, beaches, shopping and

entertainment is world-famous and the position of Moorings at the river-end of Cavill Avenue is ideal: we’re in the heart of the city with everything at our finger tips and yet are removed enough to not be part of the nightly hustle and bustle.” The well-known building features 73 apartments made up of an almost even split between owner occupiers/tenants and holiday rentals, and offers a choice of three different categories to choose from: Budget, Superior and Deluxe based upon the level of renovation and finishings. Foxtel Premium HD and free wifi are complimentary and all

Talk to someone who understands your business. Contact Natasha Gray today, your Gold Coast Management Rights specialist: Natasha Gray Relationship Manager, Gold Coast 0459 840 305

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Trent Pevy and the team at Pevy Lawyers are proud to be the chosen legal advisors for Moorings on Cavill. We wish Tracey & Damon every success.

22527 25/01/19 A

PROFILES

ResortNews | February, 2019


The most important thing is to have regular communication with the owners and body corporate

apartments are spacious with selfcontained kitchens, have air-cons and wide balconies – the majority of which, offer breathtaking views of the Nerang river and lush hinterland. External facilities include a large pool and spa, barbecue area, sauna and games room. Damon speaks enthusiastically about the developments planned for 2019 including a full repaint of the building, the resurfacing of the pool and the replacement of barbecues. “There is always plenty to do,” adds Damon. “I really enjoy the variety of the work, and appreciate every achievement and win that we have had since taking the business on. Of particular note – and no small win by anyone’s standards – was the overwhelming majority approval by the body corporate to change the module from 10 to 25 years. After what had been a challenging year, the body corporate noted the significant and positive changes that have taken place in the building and the good relationship that now exists with all stakeholders. When asked what they would share with those contemplating management rights, Tracey February, 2019 | ResortNews

and Damon agree: “The most important thing we found is to ensure that you have regular communication with the owners and body corporate. If everyone understands what is going on you do away with speculation and drama – a perfect example of this was our transition to bundling fees. After much consultation with our accountant Hayden Rooney at Reef Accounting, and regular communication with the holiday apartment owners, we set out a three-month time line before implementation and it was accepted without a problem.

10%

discount

“Know upfront that management rights is a lot of work; there are many things you have to consider and multi-task so surround yourself with good support. If you’re focused on looking after your owners and guests to the best of your ability, success will ultimately follow.” And what they wish they had known… “When it comes to management rights you really do need to consult with industry specialists – experts who have been in the industry for a long time and understand the business. Special mention goes to Think Management Rights, Trent Pevy, both of whom have gone above and beyond to support us on this journey.” PROFILES

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p: (07) 5538 6711 e: admin@mooringsoncavill.com.au 63 Cavill Avenue, Surfers Paradise Qld 4217 www.mooringsoncavill.com.au

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Bayview Shores:

the epitome of grand

By Trish Riley, Editor

Positioned ‘guard-like’ on the waters’ edge of Lands End and towering over an inlet into the picturesque Broadwater, Bayview Shores is as much a part of the history of the Gold Coast as the iconic Surfers Paradise beaches. The way history tells it, the statuesque building was

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originally developed as a hotel or timeshare facility for the Japanese market, and in addition to possessing ‘good bones’ in terms of very solid and high-quality constsruction, the high-rise features a number of subtle Asian nuances including precise landscaping, water features, lily ponds and separate gender saunas. It’s the interiors however, that truly set this building apart. Classic granite and marble are teemed with expansive picture windows, lush carpets

and crystal chandeliers: and they all look as good as the day they were installed. The majority of the two- and threebedroomed apartments are owner occupied, with ten in the long-term rental pool; and understandably, any apartment that comes up for sale or rent is not available for long. Boasting spacious living and bedroom areas - eclipsed only by generous wrap-around balconies and spectacular Broadwater views, every apartment offers wide entrance

PROFILES

areas, open-planned, wellequipped gourmet kitchens and luxurious marble tiled bathrooms and laundries. Other facilities include a tennis court, a fully equipped gym, saunas, a large games room and library, a barbecue area, two heated swimming pools – indoor and outdoor, and a separate spa/plunge pool. There is even a private pontoon available for those requiring it. And because Bayview Shores was initially developed as a resort, the ‘grand dame’ also features

ResortNews | February, 2019


a commercial kitchen and functions area that is utilised by the body corporate on special occasions and by residents for private events and regular card games and musical evenings. The secret ingredient to this building however, goes beyond the built-in features. It’s the intangible, but intrinsic culture of community and cooperation that exists between the residents and body corporate, and the onsite managers, Peter and Grace Nguyen. Despite being relatively new to management rights and to Bayview Shores, Peter and Grace have already made an impact on the operation and day-to-day management of the building. Their strong sense of community has also resulted in a greater level of harmony throughout. With an unlikely background in graphic design and then chef and owner of the award-winning Pho Vietnam restaurant in Australia Fair, Peter met Grace while she was studying hotel

management, and the rest as they say is history. Peter now has his full real estate license and together they share an unbridled enthusiasm for ‘their’ building and goodwill for their extended family of residents and owners.

Bob Johnson, former automotive engineer and holder of the special projects portfolio on the Bayview Shores body corporate committee for eight years says: “We are all justifiably proud of this building and the friendly culture that has developed.

Peter and Grace demonstrated a strong resolve with regard to their appointment and that won them instant credibility and support. “The apartments in Bayview Shores are a good investment – over the years a number of them have had substantial renovations done - effectively increasing the overall value of the building, and it’s important for the body corporate to have a management team that shares the same vision and commitment.” Speaking of the harmonious scenario, Rhonda Perkins, sales executive of Property Bridge Management Rights says: “Peter and Grace have exceptional people skills, enthusiasm for the challenge, strong family ties and extensive business experience. All of these factors were evident from the first time they approached us about purchasing management rights.

February, 2019 | ResortNews

PROFILES

51


Peter and Grace Nguyen with Rhonda Perkins from Property Bridge (Center)

The secret ingredient to this building however, goes beyond the built-in features

On behalf of Property Bridge Bobo Qi and Rhonda Perkins would like to extend our congratulations to Peter and Grace on the acquisition of Bayview Shores. We are delighted to be of assistance.

“A clear vision for the style of business accompanied by optimism and persistence ensured they could settle in their preferred building and location.”

we feel at the end of each day. “As to why Bayview, well she’s the best. Bayview Shores is an iconic building and the location is perfect; both from a business and lifestyle perspective.

When asked why they had chosen management rights as their occupations, and Bayview Shores in particular, Peter says: “MLR allows us to work and live in an area that we enjoy and in an environment that doesn’t feel like work.

“We are within minutes of all the attractions that have made the Gold Coast world famous, we have retail outlets, restaurants and all-things boating at our finger-tips, but we also have the calm and tranquillity of the suburbs.”

“We both enjoy dealing with people, listening to them, solving problems and making things happen,” he adds. “We have learnt a lot from the residents here and look forward to every day. We are strong believers in not waiting to be asked to do something, we just do it because it needs to be done. For us it’s about the pride and personal achievement

And even though they are just emerging from the renowned ‘six-month learning curve’ of MLR, Peter offers some sage advice for those considering management rights: “Be very clear about what you are looking for and why. Be honest, open and straight forward. Pace yourself or you could burn out, and make sure that you are always giving full value.”

Management Rights • Resorts

www.propertybridge.com.au Bobo Qi | 0438 027 771 | bobo@propertybridge.com.au Rhonda Perkins | 0418 767 115| rhonda@propertybridge.com.au

52

PROFILES

ResortNews | February, 2019


ACCOUNTANTS & AUDITORS

The Preferred Supplier Programme assisting the industry

It allows managers to access industry specialists who are committed to the highest levels of service and dedicated to the accommodation and hospitality industries.

Brisbane: 07 3421 3421 shodgetts@mcadamsiemon.com.au

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

Noosa Heads: 07 5474 8955 Buderim: 07 5408 4622 porielley@mcadamsiemon.com.au

4.

Subject to the satisfaction of these processes and commitments suppliers then go on to the Preferred Supplier Database. Only Preferred Suppliers in this database have the opportunity to utilise the Preferred Supplier logo and make their contact details available to managers via the Preferred Supplier Directory, located in every issue of Resort News (and online at accomnews. com.au/business-directory).

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. ■

• Due Diligence Reports • Trust Account Audits • Structure Advice & Tax Compliance Brisbane Level 4, 97 Creek St, Brisbane Gold Coast Level 3, Southport Central 3, 9 Lawson St, Southport

 Due diligence reports  Structure and taxation advice  Trust account auditing  Risk and superannuation Telephone 07 55202144 Paul Shannon paul@brownandbenson.com.au www.brownandbenson.com.au

Specialist Management Rights Accountants

Contact : PETER MEYERS 155 Varsity Pde, Varsity Lakes, Qld 4227 t : (07) 5630 6559 m : 0402 943 549 e : peter@pmag.com.au

accountants

Experienced Management Rights Accountants • P&L for Sale • Bank Financials • All Tax Compliance • Purchaser Due Diligence

Fixed Price Available

(07) 5343 1000

Ask for David at the Mooloolaba Office or Ask for Angela at the Noosa Office

managementrights@ascendia.com.au

www.ascendia.com.au

February, 2019 | ResortNews

Specialist Business Advisors to the Management and Letting Industry

www.mcadamsiemon.com.au

Preferred suppliers have their status reviewed every 12 months to ensure they still qualify and that their commitment to the industry is being met.

With these criteria in place it means that you as a manager have access to a complete range of specialist suppliers who are actively seeking to improve their services to the accommodation industry.

info@hostrata.com.au www.hostrata.com.au

www.archergowland.com.au

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.

07 5631 6900

Smiljan Jankovic 0423 595 910 SmiljanJ@archergowland.com.au

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).

3.

5.

McAdam Siemon Pty Ltd Specialist Accountants & Business Advisors to the Accommodation Industry

All Engagements Are Fixed Price.

This is extremely helpful for all accommodation providers but especially new managers as it allows them to benefit from the positive experiences other managers have had with their suppliers.

2.

Audits ~ Taxation Feasibilities ~ Due Diligence Reports

• Verification reports • P&L for Sale • Motel Due Diligence • Motel Business Plans • Trust Account Audits • Training & Setup on Cloud Accounting Software for MR and Motels

For over 21 years in Australia the Preferred Supplier Programme and directory has been an extremely valuable and effective tool for accommodation managers.

1.

Specialist Advisers to the Accommodation & Hospitality Industry

PREFERRED SUPPLIER DIRECTORY

www.pmag.com.au

Due Diligence Auditing Taxation Business Advice 07 5557 8700 Paul Gaffney

mail@mbapartnership.com.au mail@mbapartn

www.mbapartnership.com.au www.mbapartn www.managementrightsaustralia.net

53


AIR CONDITIONING

BEDS & BEDDING

BLINDS &/OR AWNINGS

A H A P PY GUEST

Expert Advice • Great Range Friendly Service • Quick Turn Around

Structuring  Income Verification  Audit Accounting/Taxation  SMSF  Estate Planning Email: jhanaghan@jonathangrant.com.au

Phone 07 5534 4333

When your Business Needs a Tune or a Service

• Bookkeeping • Marketing • Business Management • Human Resources

Where Value & Service are No.1!

www.businessmechanic.com.au (02) 6583 8386

STARTS WITH

South East Queensland P 07 5607 0695 ron@gibsonandassociates.com.au www.gibsonandassociates.com.au

A GOOD N I G H T 'S R E S T Gibson & Associates is a CPA practice

- GOLD COAST MANAGEMENT ACCOUNTANTS management rights income verification management rights trust account auditing preparation of bank review / re-finance figures

phone 07 5575 9649 | mobile 0411 841 868 erikathomas@bigpond.com www.managementrightsauditor.com.au

BODY CORPORATE MANAGERS

Hi-Rise Air Conditioning New name... Bigger range...

manufacturers of quality bedding QUALITY WITHOUT COMPROMISE

with the same great

service

- SUNSHINE COAST “YOUR GUIDING LIGHT ON MANAGEMENT RIGHTS”

darrensblindsshutterscurtains.com

1300 654 000 ahbeardcommercial.com

pbbconsult - Chartered Accountants Specialist Accommodation Industry Advisers QLD/NSW/VIC Ph: (07) 5449 9992 W: www.pbbconsult.com.au

M 0476 327 736 darrensbsc@bigpond.com

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

07 3220 9400 abcm.com.au

Industry leaders with an active approach to body corporate management

FACTORY PRICES DIRECT Sunshine Coast (07) 5446 7541 Cairns (07) 4032 5133 www.themattresscompany.com.au

Your Sunshine Coast

Management Rights Specialists FOR OVER 20 YEARS

Verification Reports - Due Diligences Tax Planning & Structures For Sale Figures - Auditing Tax & Accounting FIRST INTERVIEW FREE! Greg Kamp FCPA FTI

07 5443 7789

Supplying the Gold Coast, Southern Brisbane and Northern New South Wales regions with quality air conditioning services since 1977.

Call 07 5522 1044

enquiries@climatecontrol.net.au

www.climatecontrol.net.au

1800 425 903

www.sleepmaker.com.au

BEDSPREADS & BEDCOVERING PRODUCTS

ASBESTOS REMOVAL

“Holbrook House” 48-50 Sugar Road Maroochydore

info@kampba.com.au

www.kampba.com.au

ALL ASBESTOS REMOVED - QUEENSLAND WIDE

Personal, Professional, Reliable Service Brisbane to Far North Queensland

P:07 5443 3138

F:07 5443 3334 sunshine@selectstrata.com.au www.selectstrata.com.au

strata title consultants & body corporate managers

Accounting & Taxation Trust Account Audits P&L for Sale

P: 5456 4018 Eagle_Dad_Print.pdf 1 31/03/15 10:47 AM E: renee@rcbaccounting.com.au W: rcbaccounting.com.au BATHROOM RENOVATIONS

- NORTH QUEENSLAND -

Talk to our body corporate experts.

C

07 5341 6500

M

bcs_sunshinecoast@bcssm.com.au

Y

CM

Look for the sign of an Industry Specialist

MY

CY

CMY

Find them online Wherever, Whenever!

K

www.accomnews.com.au/business-directory

54

PREFERRED SUPPLIER DIRECTORY

ResortNews | February, 2019


BROCHURE DISPLAY

CARPET & FURNITURE CLEANING/PROTECTION

ELECTRICAL APPLIANCES

COMPUTER SOFTWARE

Quality Electrical Appliances

Sunshine Coast Brochure Display The regions’ original and leading brochure service and provider of information displays

07 5499 6222 info@SunshineCoastBrochureDisplay.com.au

www.SunshineCoastBrochureDisplay.com.au

BUILDING MAINTENANCE SERVICES

New name... Bigger range... • We clean carpets, tiles, mattresses and upholstery • Professional maintenance and emergency cleans • Water extraction and flood restoration

Across the Sunshine Coast Call 0438 302 591 www.firstresort.com.au CLEANING CONTRACTORS

with the same great

service

Personal Service. Trusted Advice.

 Trust Accounting Module  Built-in CRM  Channel Manager  Automatic Communications  Cloud & Desktop Solutions  99% of our support requests

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

ELECTRICAL CONTRACTORS SEE THE SPECIALISTS IN L.E.D. REPLACEMENT LIGHTING

are attended to within 20 mins

Mention this ad to receive 3 months FREE subscription

1800 671 179

Repairs - Maintenance - Installations Testing & Repairs of Emergency Lighting Appliance Repairs

(07) 5591 9191

www.reimaster.com.au * Contact us for the T&C’s

Risk or Repair?

ENERGY MANAGEMENT CONSULTANTS & SERVICES

NING TYLE CLEA

LIFES

S

ASSET MAINTENANCE

• CONCRETE FATIGUE & CRACKING? • WATER INGRESS? • POOL JOINTS FAILED; TANKS? • BASEMENT LEAKING; RISING DAMP? • ROOF MEMBRANES FAILED? • CAR PARK JOINTS?

O

L

U

T

I

O

N

CIWREMEDIAL.COM.AU

RESORT & COMMERCIAL CLEANING

S

SERVICING THE SUNSHINE COAST FOR OVER 15 YEARS

FINANCE

jporter01@bigpond.com

Management Rights Specialists

FROM NOOSA TO KAWANA

MAINTENANCE PTY LTD

0435 818 380

www.hirisemaintenance.com hirisemaintenance@gmail.com

CARPET & CARPET TILES

A professional service for resort cleaning

✆5474 3299 FAX 6474 3099

CLEANING CONTRACTORS - REFUSE CHUTES Shute Cleaning Services Pty Ltd

Chute Cleaning / Upgrading - All Repairs - Associated Work TWEED HEADS / GOLD COAST TO SUNSHINE COAST / NOOSA Mb:0437 542 968 E: shuteman@ymail.com

EE

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

Reservations and Trust Accounting Daily Reconciliation – Systematic Distribution

Whatever, Wherever, Whenever! www.wizardcarpets.com February, 2019 | ResortNews

www.accomnews.com.au/ business-directory

Gold Coast Paul Geary

0401 992 632

Brisbane Lina Jin Blake McLucas

0422 646 388 0434 367 812

Sunshine Coast / Noosa Mark Hancock

0411 023 531

Sunshine Coast / Lake Kawana Bruce Baird 0411 772 182 Suzanne Copelin 0428 385 923

FR

Serving the Gold Coast

Meter Provider Bulk Conversion Asset Management

Energy Tendering Tariff Review Meter Reading

Ph: 07 3256 7366 enquiries@m2cs.com.au www.meter2cashsolutions.com.au

HIRISE PAINTING, ABSEIL ANCHOR INSTALL & CERTIFICATION, BUILDING WASHDOWNS, SIGN INSTALLATION, CONCRETE CANCER REPAIRS, SEALING REPAIRS/WATERPROOFING, WINDOW CLEANING & GENERAL MAINTENANCE

QUALITY, COST EFFECTIVE UTILITY INFRASTRUCTURE & BILLING ADMINISTRATION

Bill Presentment Payments & Receipting Debt Collection

David: 0421 618 566 1300 88 53 70 service@ciwremedial.com.au

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

Cairns / Northern Beaches Patrick Brown 0401 141 276 Port Douglas Patrick Brown

0401 141 276

Year 2+ $599 Year 2+ $440

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

Phone (07) 5446 2135

www.pumasoftware.com.au

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

55


The sign of an Industry Specialist.

# &, ! , & , "%& $,

Management Rights Finance Specialists

, , , ,

Brisbane: 07 3252 2219 • Gold Coast: 07 5576 7059 enquiries@pcsfinance.com.au

Whatever, Wherever, Whenever! www.accomnews.com.au/business-directory

FURNITURE - OUTDOOR

Suppliers of Quality Commercial Outdoor Furniture & Accessories • New Chairs • Tables • Sun Lounges • Umbrellas • Cushions & Accessories • Prompt Service Guaranteed REPAIRS - RESLINGS AND SUPPLY OF REPLACEMENT SLINGS TO P.V.C AND ALUMINIUM OUTDOOR FURNITURE

www.pcsfinance.com.au

- NORTH QUEENSLAND -

* , ' !+, , , , , , , ,

*, ( $ , , ,

0418 765 257

www.casualfurniture.com.au

,

coastalcasualoutdoors@gmail.com

$ " % #!" % % " % % % % % %

% % #!" % "% % % %

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

FLOOR COVERINGS

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

W I D E

3 ! ,. 'W #&

GYMNASIUM EQUIPMENT

Residential & Commercial Floor Coverings * Carpets, Carpet Tiles and Vinyl ecialists * In stock lines, short ends, room sizes Sp since 1987 * Rental Properties (Budget Lines) * Engineered Timber, Bamboo and Laminate

Unit 1/41 Olympic Circuit, Southport, QLD, 4215 P: 07 5571 1177 F: 07 5503 0057 Leon Bell: 0466 912 786

www.southportcarpetsqld.com

FURNITURE

A U S T R A L I A

Est. 1987

INSURANCE

Commercial Specialist Direct Importers Sales, Service & Repairs ¾LARGEST RANGE¾FURNITURE ¾UMBRELLAS¾SUN 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

www.daydreamleisure.com.au sales@daydreamleisure.com.au

GLASS INSTALLATION/REPAIRS

fresh finance... Mike Phipps

0448 813 090

mike@mikephippsfinance.com.au

Paul Grant 0448 417 754 paul@mikephippsfinance.com.au Cameron Wicking

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

www.mikephippsfinance.com.au

dennis@hotelinteriors.com.au www.hotelinteriors.com.au

TAILORED FURNITURE SOLUTIONS

Red

F I N A N C E

Professional & friendly service Over 30 years finance experience Accommodation funding specialists

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

Nick Smith - 0450 179 677 www.redtenfinance.com.au nick@redtenfinance.com.au PPS3955_A

56

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

info@perps.com.au 1300 884 914 www.perps.com.au

They’ll thank you for it!

PREFERRED SUPPLIER DIRECTORY

ResortNews | February, 2019


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

Thinking of Buying or Selling? For the right advice contact the experienced management rights brokers today

Looking for cover?

Phone: 1300 928 556 Email: sales@mrsales.com.au

• Residential & Commerical Strata • Resort and Accommodation • Professional Indemnity • Resident Unit Managers • Property Insurance

Head Office: Suite 1 Ground Floor Equinox Sun Resort, 3458 Main Beach Parade, Surfers Paradise Qld 4217

Australia’s Leading Hotel Bedding Suppliers

For an informal chat on your insurances, contact the team: 07 3387 1900 beenleigh@ajg.com.au

www.mrsales.com.au

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

Nationwide

1300 665 966

…When you need us most!

 Business  Strata  Landlord Protection

Quality Aust Products to meet All Building & Government Standards

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

Management Rights Insurance Specialists

Property Bridge

stry e indu Leading h t o t r e k o r insurance b

 Discreet Silent Listings  Free Market Appraisals

Management nt Rig Rights Consultan t t tan Mobile: Phone: Fax: Email:

0414 889 593 07 4059 1254 07 4055 3898 calvin@cbmr.com.au info@cairnsbeaches.com

Post:

PO Box 266, Palm Cove, Qld, 4879

Bobo Qi 0438 027 771

1800 111 622

Servicing: Australia Wide & Offshore

1300 851 554 info@orbitzelevators.com.au www.orbitzelevators.com.au

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

WWW.STRATACORP.COM

Specialists in management rights Off the plan sales qld & victoria Buying or selling best advice Rod Askew 0411 758 236 (QLD & VIC) Eric Brizuela 0413 060 683 (QLD) Philip Robison 0410 663 111 (VIC) Nationwide: 07 3554 0040 Email: sales@rcabb.com.au

Rhonda Perkins 0418 767 115

info@propertybridge.com.au www.propertybridge.com.au

PAINTERS & DECORATORS

www.rcabusinessbrokers.com.au

In All Areas . . .

Whether buying or selling we have you covered U Gold Coast U Brisbane U Sunshine Coast U Townsville U Cairns . . . & Beyond

MOTELS, CARAVAN PARKS, HOTELS & MHE’S NATIONAL COVERAGE sales@tourismbrokers.com.au 1300 512 566 www.tourismbrokers.com.au The M anagem ent Right s S pecialist s SUNSHINE COAST

MANAGEMENT RIGHTS RN006

RUGECU009-170704

2017 Winner of the Gold Coast’s Best Emerging Business

PO Box 1037 Gordonvale 4865 • P 07 4056 6366

info@resortsales.com • www.resortsales.com

SPECIALIST AGENTS COMMITTED TO MAKING EVERY DEAL A SUCCESS

www.managementrightscover.com.au

LIFTS - MAINTENANCE & REPAIRS

Supporting and servicing the needs of both buyers and sellers of management rights throughout Tropical North Queensland

calvinbaileymanagementrights.com.au

Professional Indemnity Public Liability Loss of fee income Home & Office contents Landlords ...and more Discount for ARAMA members

Wayne & Linda Stoll 0452 181 505

www.thinkmanagementrights.com.au

Calvin Bailey LREA

▪ MANAGEMENT RIGHTS ▪ RESORTS

February, 2019 | ResortNews

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

Think – Buying or Selling Management Rights

DELIVERIES QLD WIDE – INSTALLATION & SERVICE IN SE QLD

With quick quote turnaround and hassle-free claims service

AFSLN 246986 ABN 31 009 179 640

Specialising in Motel & Resort Sales Qld wide

resortbrokers.com.au

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

Call 1800 688 820

Whatever, Wherever, Whenever!

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

57


• Painting • Grounds Maintenance & Landscaping

ASBESTOS REMOVAL QUEENSLAND WIDE

FREE CALL

1800 766 366

FREE QUOTES &ADVICE

• Signage & Branding • Electrical Services

PEST CONTROL

SOLICITORS

Servicing Brisbane & Gold Coast

MANAGEMENT

• Audio Visual • Data Communications

PEST

• Sustainability

PEST-NETT SERVICES

CALL TODAY TO GET YOUR PEST PROBLEMS SOLVED

Call 1800 620 911 or 07 3718 1600

Residential &Commercial

Call Now 07 3206 6721 www.terminett.com

programmed.com.au

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

www.accomnews.com.au/business-directory

SECURITY SYSTEMS &/OR CONSULTANTS

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

CONTACT US Receive the best information. Subscribe today to receive continual practical, useful and relevant content.

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

LOCALLY-OWNED FOR OVER 25 YEARS

Ph 5520 1256

www.anppainting.com.au QBCC Lic No 1050861 NSW Lic No 179886C

SHEET METAL

Experienced Management Rights Lawyers • Purchase or Sale

We deliver

strategic solutions in management rights Buying or selling

Fixed Price Available

Renewing or reviewing

Stainless Steel Handrails Restaurant Fit-Outs Exhaust Duct Work

(07) 5343 1000

Ph 07 5593 4183

Ask for Natalie

www.stratumlegal.com.au

managementrights@ascendia.com.au

PH: 07 5406 1280

Fx 07 5593 4194 | M 0413 432 294

www.ascendialawyers.com.au

adrian@sheetmetalimprovements.com.au

Negotiation and dispute resolution

Michael Kleinschmidt Legal Practitioner Director info@stratumlegal.com.au

Leading Sunshine Coast Law Firm

COOLANGATTA TO BEENLEIGH

SIGNS

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

58

Whatever, Wherever, Whenever! www.accomnews.com.au/business-directory

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 | February, 2019


SWIMMING POOL SUPPLIES/REPAIRS

TRAINING & DEVELOPMENT

The sign of an Industry Specialist.

Classes from Coolangatta to Cairns TRAINED BY THE EXPERTS

VALUERS - REAL ESTATE RELAX… AND LET US TAKE CARE OF ALL YOUR POOL NEEDS.

MANAGEMENT RIGHTS VALUATION SPECIALISTS

◆ DEDICATED ACCOUNT MANAGER for Orders, Installs, Service and Sales ◆ COMPLIMENTARY equipment assessment – why not get a 2nd opinion ◆ YOU WON’T BE DISAPPOINTED ◆ PRICE IS IMPORTANT, but so is SERVICE AND SUPPORT 9/99 LOWER WEST BURLEIGH ROAD, BURLEIGH HEADS, QUEENSLAND 4220

PHONE: 07 5535 6161

EMAIL: POOLGEAR@BIGPOND.COM

WWW.POOLGEARAUSTRALIA.COM.AU

1800 080 349 www.propertytraining.edu.au TV & VIDEO HIRE/REPAIRS

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

australianvaluers.com.au mlr@australianvaluers.com.au 1800 664 094

Appliance Rentals The Management Rights Lawyers

Heat Pumps

New name... Bigger range...

Proudly installed and serviced

Servicing Resident Managers throughout Australia

with the same great

BRISBANE: 07 3007 3777 GOLD COAST: 07 5562 2959 info@mahoneys.com.au

service

www.mahoneys.com.au

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.

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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. February, 2019 | 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

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