FEATURE STORIES - Community › CLM › winter2014 › 19008_BCS_COMMU… · statistics are limited to proposed rather than actual investment flows, include transactions that don’t

DEFINING COMMON PROPERTY

RECYCLING KITCHENS

STYLE SECTIONDECLUTTERING: WHERE TO BEGIN

FEATURE STORIESFOREIGN INVESTORS: THE REAL STORY

COMMUNITY RENEWAL

LATEST IN GLASS TECHNOLOGY FOR WINDOWS

WINTER 2014

NATIONAL NEWS

Community Lifestyle Magazine Autumn 2014 2

IN THIS ISSUECEO Welcome 03

FeaturesPlease explain: Reliable data would ease the hype around Chinese buyers 04

Dealing with owners who are overseas 06

Community Renewal: the power of one 18

National NewsNuisance – don’t be one 08

Looking after your pool this winter 10

Best practise banking to support your strata scheme 12

Defining common property 14

Solving common issue with clear solutions 16

Facilities managers: what do they do? 20

Even kitchens can be recycled 21

Lifestyle NewsDecluttering made easy 22

Recipe: Warm winter salads 23

Publisher

PICA Group, Level 27

66-68 Goulburn Street, Sydney NSW 2000

Editor

Kris Padukone 02 8216 0482

Contributing Editor

Jennifer Ross 02 8078 6925

Artwork

PDQ Design 02 9956 6660

Advertising enquiries

[email protected]

Feedback and suggestions

[email protected]

The information provided in this magazine is a general guide only and not intended as a substitute for legal advice. The company disclaims all responsibility and all liability for any expenses, losses, damages and costs which might be incurred as a result of the information provided by the company in these articles.

Dealing with owners who are overseas

06

08Nuisance - Don’t be one

Decluttering made easy

22

Best Practice Banking to support your Strata Scheme

12

‘Please explain’: Reliable data would ease the hype around Chinese buyers 04

INTRODUCTION

Autumn 2014 Community Lifestyle Magazine 3

Almost halfway through 2014 and so far we’ve seen a lot happen – from Federal budgets to political shenanigans in our State Parliaments. Even the weather has been unpredictable with some of the warmest temperatures on record for Autumn.

Some of you in Victoria may be experiencing an earlier start to winter but in NSW and of course Queensland, people are still at the beach. It certainly presented an interesting challenge as we put together our cover for the Community Lifestyle Winter edition. So we can only hope the image on the front makes you feel warm and cosy, right at home wherever you are this winter.

On to our stories and we are excited to once again provide you with an article from Ben Hurley who presents some well-researched insight, blowing some of the myths around the Chinese property buying spree that various media claims has been occurring in our capital cities.

Along with that story, we’ve also written a feature on dealing with foreign investors. With the growing rate of people from overseas buying up local property, the role of the strata manager broadens. So we’ve got some valuable insights as to how certain matters are handled if and when they arise.

In this edition, we also hear from some of our business associates. Bannermans Lawyers provide a great, easy to read guide to common property. Often this can be a source of conflict between owners and executive committees, so be sure to read this first and you might in fact avoid one of your own.

Also, our good friends at Poolwerx have offered some great tips to solving common pool problems that may happen while you’re not using it as much in winter. Macquarie Bank article explains trust accounts and best practices for strata.

We also have a very interesting article from Express Glass about different window treatments; this has become a matter of science and the right window and glass can make all the difference when it comes to noise and reducing energy consumption.

We’ve also brought you an article on dealing with nuisance and what this means under the legislation in each state. The concept of nuisance is a way of dealing with issues that perhaps the by-law or model rules in your strata scheme don’t address. This also saves us from having too many rules, which in some ways can severely restrict our personal freedoms. Community living does come down to being reasonable and respecting the rights of other owners and we should always keep this in mind.

Finally we have some winter warmers with a twist. Given that some of you are in sunny Far North Queensland, we thought you might equally like to try a warm winter salad as those in Melbourne. With the many winter vegies around at the moment, give these a go and make sure you get in your five serves a day.

And finally, I along with my fellow Directors at Strata Community Australia (NSW) have been working with the NSW Government on the new legislation which we hope will be introduced to parliament soon. I mention this as it may have some impact on the Queensland review that is also underway.

Stay safe over Winter and make sure your smoke alarms all have fresh batteries. We’ll be back with more in Spring. n

Greg HaywoodGroup CEO

CEO’s COLUMN

FEATURE


‘PLEASE EXPLAIN’: RELIABLE DATA WOULD EASE THE HYPE AROUND CHINESE BUYERSBy Ben Hurley

It’s the story that just keeps on giving. Moneyed Chinese are snapping up the choice cuts of Australia’s real estate market at inflated prices, leaving Aussie mums and dads on the sidelines.

It’s a compelling theme, partly because there is no conclusive data to disprove it, says the statistics of the Foreign Investment Review Board in its own Annual Report:

“While this chapter provides a useful source of data on proposed direct foreign investment in Australia, the Board urges particular caution in the use of these statistics, including when making comparisons with previous years.”

Leading property data provider RP Data puts it more bluntly in a submission to the current inquiry into foreign investment in residential real estate by the House of Representatives Standing Committee on Economics. Australia’s statistics on foreign investment says RP Data, are “not accurate, reliable or timely”.

Key weaknesses include that the statistics are limited to proposed rather than actual investment flows, include transactions that don’t actually proceed, use methodologies that aren’t consistent from year to year, and are released eight months after the end of the financial year to which they relate.

The lack of conclusive information on the subject has led a myriad of third parties to step in with analyses of varying levels of quality. Last year, an

analysis by economists at Citigroup found a strong correlation between Chinese migration levels and property price increases, with a lag of about three years.

A Credit Suisse analysis this year estimated that Chinese buyers were snapping up around 12 per cent of new homes in Australia, concentrated in Sydney and Melbourne. These “marginal buyers” were having a disproportionate impact in driving up prices, Credit Suisse found.

RP Data’s analysis, based on the scant data available and provided in its submission to the current inquiry, is more muted. Comparing FIRB’s figures to its own statistics, residential property purchases by foreign investors last year made up around six per cent of the overall property market, RP Data says. They also appear to be in a price range around double the broader market average, with new properties bought at an average of around $1.6 million. This means foreign investors aren’t competing for the types of properties first-home buyers go for.

The inquiry submissions list has turned up some new and well-researched analysis. Lorenzo Casavecchia and Adrian D. Lee from the Finance Discipline Group, University of Technology Sydney, researched Chinese demand for Sydney Residential Property between 2000 and 2011, using a randomised sample of around 74,000 established home sales. They identified Chinese buyers using a list of Chinese last names. This approach, they admit, has its flaws because it doesn’t distinguish between foreigners and Australian citizens with Chinese ancestry.

There was a significant increase in the proportion of property sales going to

Chinese buyers over that period, they found, doubling from 6.51 per cent of sales in 2000 to 13.26 per cent in 2010, and then falling back to 10.3 per cent in 2011. These buyers actually paid 2.04 per cent less than the broader market, suggesting there was no buyer premium attached to Chinese demand. There was also no correlation between a higher percentage of Chinese buyers in a suburb for a given year, and higher prices.

These findings are hardly anything to write home about. The gulf between the available research and the hype around Chinese buyers has led to charges that the debate has more to do with a lingering suspicion towards Asians. Property industry veterans will remember that it was suspicion towards moneyed Japanese in the late 1980s that led to changes to foreign investment legislation that largely remain in place today.

Chris Curtis, principle of Sydney buyer’s agents Curtis Associates, says some of the discussion around Chinese buyers has been “appalling”. Curtis, a former commercial barrister and Macquarie banker, has made his own submission to the inquiry using available statistics that suggests Chinese buyers are only a very small part of the market. Either the available data is blatantly wrong, he says, or this ongoing discussion is very unfair.

“Corruption and evasion is either widespread, or the anecdotal stuff (feeding media reports) is so off-the-mark that people should be washing their mouths out with soap,” Curtis says.

“When we have acted for foreign buyers they have been meticulous and astute to dot the ‘i’s and cross the ‘t’s with regards to the regulations.”

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Meriton, which claims to be Australia’s largest builder of apartments, says in its own submission that around 13 per cent of its sales in the 2012-13 financial year went to foreign investors. Meriton founder Harry Triguboff has claimed in past media interviews that the majority of his apartments are sold to Chinese buyers.

Of the 130 apartments sold to foreign investors over the past year, the ‘vast majority’ have been leased to local

residents, Meriton says, fulfilling policymakers’ desire that foreign money increase the supply of available housing on the market. The stereotype of entire apartment buildings being sold to foreign buyers doesn’t hold, Meriton says, because bank financing conditions usually dictate a developer cannot sell more than 25 per cent of a development to offshore investors. This isn’t a problem for Meriton, however, which self-finances most of its building.

“Foreign investors are an important contributor to the stock of new housing in Australia,” Meriton says.

“However, their investment is not a significant driver of increased housing prices, playing a minor role in the overall housing market.”

“Without their investment, many of the new apartment blocks in Sydney, Melbourne and the Gold Coast post-GFC would not have been built.”

Meriton points to other reasons for the high price of Australian housing, such as taxation settings that preference investing in housing access to cheap credit and strong demand for property fuelled by strong population growth. And a study by the Centre for International Economics showing as much as 44 per cent of the price of a new Sydney dwelling is determined by local, state and federal taxes.

So maybe the real problem is at home. n

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FEATURE


OVERSEAS OWNERS AND THEIR OBLIGATIONSAccording to the Australian Government’s Foreign Investment Review Board’s Annual Report for 2012-2013, the top five investors in both residential and commercial real estate during that period in Australia were:

1. China2. Canada3. United States4. Singapore5. United Kingdom

Chances are that in larger cities, such as Sydney and Melbourne, there are foreign investors in your strata scheme and they may be from a range of countries attracted to the good returns investment properties provide in this country. Many foreign investors are also attracted to apartments as investments as they are easy to maintain and often well-managed. This is of course primarily due to our strata laws.

But what if you happen to be a tenant and the investor or landlord is overseas and not readily contactable?

Sydney-based strata manager/regional manager, Billy Chau, has had a number of dealings with foreign owners over the years and says the main issue is that often owners don’t understand what is required of them as strata owners.

“Many owners in strata schemes, especially first time owners, are not aware of their duties and responsibilities under the various strata laws in each state,” Billy explains.

“At least if they are here in Australia we can assist in explaining how things work. But for overseas investors who may not speak English, this can be difficult.

“If we can’t actually get in touch with them and they have no Australian address for correspondence, which happens from time-to-time, then we really have a problem.”

When handling levy arrears, in extreme cases and with owners corporation consent, Billy has engaged the services of a private investigator to track down the owner.

Not being able to communicate with owners also makes it impossible to advise them of annual general meetings, finances, upgrades, new by-laws, legal proceedings and any special one-off levies.

One of the issues Billy has noticed concerning levy payment is the misconception by foreign owners that they no longer have to pay for a building they have already bought.

FEATURE


“Logically if you’ve already bought an apartment, especially if it’s a new one, owners might be forgiven for thinking there are no more costs. Certainly there is nothing called ‘Strata Management’ in places like China, Hong Kong, United States or other countries and this makes it difficult for foreigners from these places to understand.

“If you have done your research, you can assist owners to better understand strata management and compare it directly to any similar model used in their native countries like concierge, building or community association management.”

Another issue Billy has come across with foreign owners is that they don’t understand the restrictions on what they can and cannot do in their apartment such as renovations.

“The concept of common property is also something that is very difficult for overseas owners to understand, given different laws and regulations in their own countries.

“For example, we’ve had instances where foreign owners, overly conscious

of security, have installed security screen doors on the outside of their existing front doors or undertaken major internal renovations affecting common property without approval - largely because they were unaware that they need to seek owners corporation approval.

“Their intentions are sound but the problem is that the new doors or renovations may affect fire safety or the appearance of the building. Unfortunately they are often required to repair the damage done to the common property or restore the internal layout – all at the owners’ expense.”

The lesson is that the overseas owners need to seek the guidance of their strata manager so that they understand how to go about requesting approval, the procedure and time frames to doing so.

Some real estate agents and property developers are not very well versed in explaining the Australian strata schemes to local buyers let alone to foreign investors. Billy believes that education needs to be targeted across the board,

including messages in some non-English languages for investors and assistance for the agents and developers.

“Basic information such as why a levy has to be paid or what you can do in your apartment could be explained and this would certainly help with some of the issues we encounter.”

Billy says that once some basic concepts are explained, especially the role of the strata manager, many become very supportive.

“I understand the heritage of most of my Chinese clients so I can relate the concept of strata to them, which certainly helps with not just the strata management side, but also for community harmony as everyone ends up being on the same page.”

State Government agencies such as the Office of the Commissioner for Body Corporate and Community Management in Queensland, NSW Fair Trading and Consumer Affairs Victoria may have information about strata schemes in other languages. n

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NUISANCE - DON’T BE ONECommunity living often means being very close to your neighbours and sometimes this can be too close, especially when their noise or actions intrude on your peace and quiet enjoyment of your own property.

Are you the one intruding and don’t know it, or are you putting up with some behaviour that is making living in your property a very unpleasant experience?

My unpleasant experience was with a former neighbour, newly arrived migrant, who used to make kimchi at 6am – the smell of fermenting cabbage would wake me up in a way that I didn’t really like.

She probably didn’t realise it, but with neighbours in the building it didn’t go down so well.

If you’re new to apartment or community living then there are a few things to consider. Unlike living in a house there are rules and regulations around living in a strata scheme. This is not meant to make your life difficult but to provide a level playing field for everyone to enjoy this lifestyle.

By Jennifer Ross

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In Queensland and NSW, the rules are called by-laws, while in Victoria they are simply called rules. While most strata schemes seem to adopt a standard set of by-laws or model rules, it is open to the owners corporation or body corporate to change these.

For example, in NSW at present there is no standard by-law that addresses the issue of cigarette smoke drift from one lot to another.

The new standard by-laws in the new strata laws yet to go before NSW Parliament does attempt to address the issue by banning smoking in a lot or on any part of the common property where the smoke causes a nuisance or hazard or otherwise interferes unreasonably with the use or enjoyment of a lot by another resident.

But these standard by-laws will only apply if adopted by new strata schemes from whenever the new legislation takes effect. Of course, as mentioned above, there is nothing stopping an

owners corporation or body corporate from going through the process to pass this by-law or rule now.

But this only potentially solves one issue. What about other matters like party noise? Or over-crowding? Or cooking smells that are just too overpowering? These issues may be considered as a nuisance.

Generally, nuisance means that owners and their guests do not behave in such a way as to disturb the peace

and quiet enjoyment of others. The issue of nuisance is dealt with under section 117 of the current NSW Strata Title Management Act, section 167 of the Queensland Body Corporate and Community Management Act. In Victoria nuisance is dealt with under the model rules.

Any serious breach of this may result in the matter being brought before the appropriate State Tribunal where orders may be issued to curb the behaviour. A breach of those orders can result in heavy fines.

No one wants to act as the fun police, but at the same time being considerate of your neighbours can make community living that much more pleasant. So next time you decide to talk on the balcony at 2am on a Saturday night, have a think about where the neighbours bedroom windows might be and perhaps take the conversation inside. n

Unlike living in a house there are rules and regulations around living in a strata scheme. This is not meant to make your life difficult but to provide a level playing field for everyone to enjoy this lifestyle.

For enquiries:PH: 02 – 9284-2700EM: [email protected]: www.gracelawyers.com.au

Grace Lawyers is the full service provider to the Strata & Community title, Company title & Stratum (BMC) market.

Our experienced team of senior lawyers and support staff can help you through the maze of legal issues quickly and in a way that is easy to understand and deal with.

We have teams in the following areas:• Building and Construction Law• Corporate & Commercial Law• General/Commercial Litigation• Strata/Community Levy Collection• Insolvency • Insurance Law• Planning & Property Law• Company Title and BMC Law• Strata & Community Title Law• Strata & Community Litigation

A service provider with a difference

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SOLUTIONS TO COMMON POOL PROBLEMSReviewing your pool operating procedures can improve efficiencies and save money. Knowing what questions to ask and seeking clarification on common pool problems can be difficult for strata managers, so Poolwerx has provided some answers to some common questions to help you get your pool in top shape.

Why has the pool turned green?As a pool is basically a body of still water, it can easily become contaminated by things such as, body discharges, dirt carried by bathers, hair dislodged from the body and dirt and leaves blown into the pool. If the water is left unchanged or untreated for a period of time, bacteria, viruses and other organisms are allowed to develop.

These organisms can cause health problems as they multiply at a tremendous rate. Once growth starts, one algae spore can turn into ten million in approximately ten hours.

The easy way to eliminate this problem is to ensure continuous and efficient recirculation of the water through a filter. In addition to this, it’s necessary to destroy any organism that exists by injecting a disinfectant agent such as chlorine to the water.

When added to the pool in sufficient quantity, chlorine will effectively kill any bacteria that may be present. However, in order for it to work effectively the acid alkaline balance or pH value must be correct.

To ensure your pool stays clear and clean of any bacteria there must be a

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balance between chlorine and pH along with adequate filtration. With all of these elements acting together the pool should clear up within 24 hours.

A very green pool will require the services of professionals such as Poolwerx to rectify. The pool must be shut down to prevent anyone swimming in water that could cause pose a health risk.

The pool is cloudy, why would that be?There are a number of causes for the pool to be cloudy and all with different treatments. For example it could be experiencing early algae growth and so the solution to that would be to do a super-chlorination of the pool. The pool water balance could also be the cause of cloudiness, if this is the case, check and adjust the chemical levels. Poor filtration is another cause of cloudy pools; to rectify this simply clean or repair your filter and baskets.

Why would there be black spot algae in the pool? The two simple causes of black spot algae are a lack of chlorine, or the pH level is too high. When left untreated it can be very difficult to combat and remove.

To rectify black spot algae you will need to consult a professional, such as those at Poolwerx, as this is a specialised treatment which can vary depending on the extent and spread of the algae.

What causes poor water flow and high pressure? This is mainly a filtration problem; the filter or baskets could be dirty or drawing air.

It could also have a faulty pump or low water level.

The automatic cleaner is not very efficient, why?Leaves blocking skimmer baskets or pump baskets mainly cause inefficient auto cleaners. The filter could also need a clean or the auto cleaner itself may be chocked with leaves. Check the hose for proper connection and cracks.

Other solutions include adjusting the auto cleaner speed and water outlet sockets, or may need replacement parts.

What are the causes and effects of the pump sucking air?A few of the more common reasons for a pump sucking air are the pump lid is cracked, or maybe the O-ring under the rim could be nipped, broken or dirty. The inlet could be cracked; the auto cleaner may have a hole in the hose or the water level maybe too low.

A swirl in the skimmer box will indicate a low water level, which could also be the reason why the pump is sucking air.

The skimmer box weir door may also be jammed, rather than floating.

What are the causes and effects of the constant blocking of filter baskets and filter cartridges? With filter baskets, the constant short term blocking of the filter will cause the pump to burnout through poor water flow. It could also cause the mechanical seal to fail. Other things that it will affect will be the automatic cleaner, it simply won’t work.

A constant blocking of cartridges will cause high water pressure and poor water return; it will also indicate poor suction so the auto cleaner once again won’t work. This could be the result of a burst filter or poor plumbing. Oils, lotions and calcium residues will also cause poor filtration and blocking of the cartridge.

What is the requirement by state health departments for safe pool operations? To prevent people getting sick from contact with or ingestion of water is the primary reason pools are constantly treated with disinfectant. Dependent on the level of risk to bathers, determined by bather load and other factors water tests are required daily at a minimum. The required tests are Free Chlorine; Total Chlorine; pH level; Stabiliser Level; Total Alkalinity; Calcium Hardness; Salt/Total Dissolved Solids; Phosphate; Iron and Copper. Additionally monthly microbiological sampling (laboratory) is required for all public pools and spa pools.

This information and advice is brought to you by Poolwerx. For more information you can contact Poolwerx on 1800 009 000 or email [email protected] n

If the water is left unchanged or untreated for a period of time, bacteria, viruses and other organisms are allowed to develop.

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BEST PRACTICE BANKING TO SUPPORT YOUR STRATA SCHEMEBy Cameron McMillan, National Head of Strata, Macquarie Business Banking

As an owner in a residential strata scheme, you are probably aware that as part of their broader management services, your strata management company operates an individual bank account on behalf of your strata scheme. Through this you pay your strata levies and your strata manager pays suppliers such as councils, maintenance providers and insurers.

It’s likely that your strata management company works with Macquarie to provide market leading banking services to their clients. Together, we deliver a number of benefits which, although you might not see them every day, are working in the background to ensure your strata scheme operates efficiently.

ConvenienceMost importantly, you are provided with convenient options to pay levies. Macquarie’s banking relationship with your strata management company enables owners to pay their levies when they want and how they want, in a

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secure environment using the DEFT Payments System, the market leader in levy payments. This not only includes the options you would expect, such as BPAY® and paying at the post office, but also provides an online payment solution for credit card and direct debit that ensures levy payments are easy for owners. This means that funds are available to meet expenses of your strata scheme and, where applicable, you can access discounts for timely levy payments.

Streamlined paymentsThrough integration between Macquarie and your strata management company, receipting of levy payments is automated. This means levy payments

are deposited into your strata scheme’s bank account swiftly, making the process simple and cost-effective for strata managers. Without this software integration, payments would need to be processed, receipted and reconciled manually. This would be inefficient and costly, subject to manual error while taking the attention of strata managers away from the job at hand.

In addition, efficient outbound payments to suppliers mean that their terms are met, they are paid on time and there are no delays. Strata managers also have access to streamlined processes for investing and redeeming surplus funds for each strata plan.

Transparency and accuracyThrough DEFT, payments are receipted on a daily basis, facilitating a seamless reconciliation process and up-to-date payment records. This means you can be confident that your strata scheme’s account is reconciled accurately. As mentioned above, your strata management company operates an individual bank account for each strata scheme, which is not only the most efficient way to manage a strata scheme’s finances, but also provides the greatest transparency of transactions relating to your strata scheme.

Macquarie continues to evolve their banking partnership to deliver benefits to all our clients. n

Disclaimer

BPAY® is a registered trademark of BPAY Pty Limited ABN 69 079 137 518.This information has been prepared by Macquarie Bank Limited ABN 46 008 583 542 AFSL and Australian Credit Licence no 237502 (“Macquarie”) for general information purposes only, without taking into account any personal objectives, financial situation or needs. Before acting on this general information, you must consider its appropriateness having regard to your own objectives, financial situation and needs. Nothing in this article shall be construed as a solicitation to buy or sell any financial product, or to engage in or refrain from engaging in any transaction. You should obtain a Product Disclosure Statement (PDS) available from us and consider that PDS before making any decision about whether to acquire any particular financial product. The information provided is not intended to replace or serve as a substitute for any accounting, tax or other professional advice, consultation or service.

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WHAT DO I OWN & WHAT IS COMMON PROPERTY?Prepared by David Bannerman and Sven Bjerkhamn, Bannermans Lawyers

Light fittings, light switches, power points and blinds

Internal walls (not shown on strata)

Carpet

Kitchen cupboards and appliances

Tiles & waterproof membrane on internal walls (not shown on strata plan)

Bath, basin, toilet and plumbing above upper surface of the floor

Structure of floor, ceiling, external windows, doors & balcony doors

Original floor tiles, including floor tiles in shower

Original waterproof membrane

Structural cubic space – A) Shared Plumbing B) Voids enclosing shared plumbing and wires C) Wiring outside premises or shared wiring

Tiles and waterproof membrane on boundary walls

1

7

3

1 7

28

39

410

5

116

24

8

9

10

115

6

Lot Property CommonProperty

Please note:

• Thefollowingisprovidedasaguide for strata schemes registered after 1 July 1974 strata schemes.

• Pleasenotecommentsonnextpage

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WHAT DO I OWN & WHAT IS COMMON PROPERTY?Comments:For any lot owner and for an owners corporation, the really important question of who owns what needs to be established and answered. This will dictates how a strata scheme is correctly managed and who is responsible for what parts of a strata scheme.

The picture adjacent is an extract from a typical strata plan. Clearly this does not tell you all of the details about what is common property and what is lot property, which is described by the relevant legislation and case law.

General position (subject to exceptions)The general rule applicable to the majority of strata schemes registered after 1 July 1974 is:

n The structures located on the solid thick line, such as, that shown above at the registration of the strata plan are common property.

n The ceiling, the structure of the floor including fixed tiles or floorboards, the electrical wiring located in the ceiling, external windows and balcony doors are usually all items of common property.

n Internal walls, not shown on a strata plan are lot property and a structure located on a thin line is usually lot property.

n Carpet, light fittings, blinds, curtains, toilet bowls, bath tubs and kitchen cupboards will all usually be lot property and the responsibility of a lot owner.

Exceptions The following exceptions apply:n The adjacent general position is

provided as a guide.

n The general position does not apply to strata plans registered before July 1974.

n To a limited extent, notations on the strata plan can modify the general position.

n Owners or owners corporations can with requisite authorisation alter, add to or remove common property after registration of the plan.

There is no ‘one size fits all’ answer so if in doubt, ask an expert to work it out. n

* Credit approval criteria apply and settlement times may vary.This information has been prepared by Macquarie Bank Limited ABN 46 008 583 542 AFSL & Australian Credit Licence 237502 for general information purposes only, without taking into account any potential investors’ personal objective, financial situation or needs. Before acting on this information, you must consider its appropriateness having regard to your own objectives, financial situation and needs. You should obtain independent financial, legal and taxation advice before making any decision regarding this information.0911 Macquarie Bank Limited ABN 46 008 583 542

Enhance and protect the value of your client’s property

with strata improvement loans

Sometimes repairs and maintenance just can’t wait.

Provide your clients with an alternative to raising a special levy upfront or accumulating additional monies in their sinking fund. A strata improvement loan provides access to funds quickly so that mechanical, aesthetic

and structural works to your client’s strata property can be carried out with minimal delays*.

To find out more contact your Macquarie relationship manager, call 1800 442 370 or visit macquarie.com.au/strata

For more information you can contact Bannermans Lawyers on 02 9929 0226 or email [email protected]

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SOLVING COMMON ISSUES WITH CLEAR SOLUTIONSBy Jeff Schultz, Business Development Manager at Express Glass

Glass is one of the most commonly overlooked building elements, yet it generally covers a large percentage of a building’s external surface and plays a critical role in a buildings’ overall performance. Over the past decade there have been significant improvements to glass manufacturing technology, bringing exciting new applications for glass use in buildings and unique ways to improve performance.

Here are some of the new glass types that have emerged recently.

Sound efficiency and acoustic treatmentSound penetration is a common issue in apartment complexes. Windows may often be the main culprit of this problem with thin, ordinary glass providing little protection against noise such as road traffic.

In the past, there have been only a few options available to stop this noise coming in via the glass, with double glazing being the most popular solution. While an extremely efficient acoustic insulator, it also requires modification of the existing window frames to install and comes at a fairly sizable cost.

Acoustic laminated glass types use a uniquely developed interlayer which dampens noise. This means that thinner glass types can now be used to

improve internal sound quality. There are many varied factors to consider when upgrading for sound efficiency, such as the amount of air gaps currently present in the window frame, or the materials the window is made of, so it is always best to speak with a professional first.

Added securityExternal glass such as shopfronts and common area doorways are prone to vandals and security threats. Sometimes a simple solution can be a security grill, however this diminishes the appearance of the premises. There are some clear options available to help enhance security and maintain a view.

Advancements in technology means that glass can now be combined with other products to improve its durability and performance. Security glass is a specialist product which has multiple layers of glass with plastic in between.

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Strata Insurance BrokersThe largest specia list broker for Strata

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This creates an extremely strong barrier against intruders compared to normal glass. Ballistic rated glass is actually made in a very similar manner. The glass itself can be made clear or in various colours and can also be given energy efficient coatings to improve energy efficiency.

Another option is security film. This is a completely clear plastic film which is adhered to the internal face of the glass panel. The film has very strong glue which bonds to the glass and holds it together in the event of a breakage.

Security film comes in various grades of thickness as it is used to both upgrade existing non-compliant glass as well as increase the security on safety panels.

Building energy efficiency In an average building, up to 87% of heat gain and up to 49% of heat loss occurs due to the glass. In the past, heavy tints, metallic coatings or double

glazing have been required to improve the insulating qualities of windows which results in loss of light transmittance, high reflectivity, and often a high initial cost.

Modern glass coating technology, known as low emissivity or ‘Low E’, maximises natural light and visibility, while simultaneously improving a building’s energy consumption and interior comfort. Low E coatings can be applied to minimal glass thicknesses so they can be retro-fitted into existing frames easily. This new breed of glass can be completely clear or colour

tinted to suit any building type. They can also be combined with other products (such as acoustic laminates as explained above) to create great all round windows that improve indoor comfort for centuries.

Energy efficiency experts acknowledge that upgrading windows to being energy efficient can dramatically reduce energy consumption as it reduces the need for heating and cooling. Whether it is building performance, function or aesthetic value, the ongoing development and innovation of glass coating and interlayer technology is transforming the way this unique material is being used to deliver buildings of the future and help improve existing living conditions for strata communities.

Get expert advice on glass or film Australia wide by contacting Express Glass on 1300 666 234 or email [email protected] n

Advancements in technology means that glass can now be combined with other products to improve its durability and performance.

FEATURE


COMMUNITY RENEWAL: THE POWER OF ONEThe new strata laws to be shortly introduced to NSW Parliament will no doubt bring controversy with them, especially when it comes to the issue of the replacement of ageing building stock.

Those in Queensland will find this to be an interesting time to see if what happens in NSW might also occur in your state, as it also undertakes a review of the Body Corporate Management Act.

Victorians, too, should take note as it may only be a matter of time before your legislation is also reviewed. With a state election not far away, it may be something that a new government considers.

Strata Community Australia (NSW), which is the member-based association for those living and working in the strata sector, has for some time been advocating for an easing of the laws. Currently, they state that100 percent of owners must agree to terminate a strata scheme.

The laws are the same in Queensland and Victoria, as well as other states. This is to ensure that all owners have a say in the running of their strata scheme.

FEATURE


A strata scheme must be terminated in order to demolish the building. SCA (NSW) is calling this community renewal, giving owners the opportunity to replace buildings that are costing far too much to maintain or may not comply under the new building codes or Workplace Health and Safety. A new replacement dwelling would be designed to satisfy the needs of all the residents including such things as being more energy efficient, better noise insulation and improved security.

SCA (NSW) President, Greg Haywood says the reason for SCA (NSW) opposition to the current law is that in many cases it makes it almost impossible to wind up a scheme and replace it with a newer building.

“Getting 100 percent consensus from a group of people from four to 200 is a big ask and for that reason we have a lot of buildings both in the metropolitan and regional areas that are really past their use by date.

“The solution in the new NSW legislation is the best way of renewing old, crumbling buildings across the state, which are riddled with defects

and are becoming far too costly to maintain. “That is, the threshold for agreement should be reduced from 100 percent to 75 to 80 percent.”

The counter argument to this, and the one most likely to tug at the heartstrings, is that changing the laws will see the vulnerable tossed on to the street by greedy, unscrupulous property developers. The reality of what we’re seeking is a million miles from this scenario and SCA (NSW) strongly rejects any moves to disadvantage anyone.

The government also shares this view and will be establishing a Strata Commissioner to oversee moves to terminate a scheme. This is in part based on the Singapore model.

In 2011 SCA (NSW) undertook a study tour to Singapore to look at its community renewal scheme. There it was found a comprehensive infrastructure existed to ensure no one person was disadvantaged as the power is placed in the hands of the owner not the developer.

SCA (NSW) policy position paper, which is publicly available on its website, sets out the Singapore position and how they came to theirs. As we say in that paper, the matter of termination is equally about the management of the process as it is about the decision to terminate.

“We believe that after 50 years of strata development, more and more buildings around Australia are reaching their economic use-by date. The case for scheme termination is currently a crucial issue for our sector, urban renewal, governments and communities and this is the time for finding viable, fair and equitable solutions,” Mr Haywood concludes. n

A new replacement dwelling would be designed to satisfy the needs of all the residents including such things as being more energy efficient, better noise insulation and improved security.

NATIONAL NEWS


FACILITIES MANAGERS: WHAT DO THEY DO? In larger strata plans, there can be a number of people involved in its management. Often people get confused between the role of the strata/owners corporation/body corporate manager and the building or facilities manager.

There is a need to make this distinction because each has a different set of duties and reporting requirements and at times cannot do what owners might expect of them. It’s not because they don’t want to help you, it’s likely they

can’t because of certain laws or their contract.

Bill Coles, Managing Director of Commercial Cleaning and Caretaking Services, says that an onsite facilities manager has a vast list of duties; many of these are required to be done as the job description suggests - on site.

“Some of the main things an onsite facilities manager does that a strata manager does not include being the contact on site and providing the sign-off for trades and services,” Bill explains.

“The facilities manager is usually also the onsite contact point for residents and the executive committee and the

conduit between them and the strata manager. They will also be the one to seek and prepare quotes for any works that are then submitted to the strata manager for approval by the executive committee.”

Facilities managers may also attend to emergency works because they are onsite and in some cases may also provide concierge facilities where they will receive deliveries and direct visitors.

So if you have an onsite facilities manager, next time you see them, give them a wave and say hello as they perform some very important tasks to looking after your property. n

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NATIONAL NEWS


EVEN KITCHENS CAN BE RECYCLEDThe next time you buy a new kitchen, ask the supplier how much they are charging you to remove the old one – chances are it won’t be cheap and it’s sometimes a hidden cost in your quote.

Worse still is that regardless of the condition of the old kitchen, it is likely to end up on a landfill somewhere. This means a lot of kitchens in great condition, and worth thousands of dollars, are headed straight to the tip without even a second thought for recycling or sustainability.

Leigh Allen of One Stop Kitchen Removals says it is completely unnecessary for you to be charged good money for the removal of your old kitchen, only for it to be thrown in a dumpster.

“The big problem with most kitchen companies is their mindset of what to do with your old kitchen. They are only interested in supplying and fitting the new kitchen, and the old one doesn’t come into play,” Leigh said.

A few years ago, electrician Leigh, and son, plumber Shane realised the enormous amount of wastage that was occurring with old kitchens, so they decided to do something about it.

“As tradies we would often be sorting the electrical or plumbing associated with a kitchen renovation, when our client would say, ‘the new kitchen is coming next week and I’ve got to get rid of the old one’,” Leigh said.

“So rather than ignore them, as we did in the past, we

started taking the kitchens away and trying to resell them. The biggest surprise was that most kitchens we removed were of a good standard and certainly useful for someone else,” he said.

“Now, six years later, free kitchen removals are a fulltime business for us. We carry out removals all over Sydney and there are great kitchens to be found everywhere. A high percentage of our second hand kitchens go to new homes, for example in granny flats, rental properties, or holiday houses.”

A basic kitchen bought new today could cost upwards of $20,000. The

maximum price you could expect to pay with Leigh’s company is about $4,000. You could even get a whole kitchen with working appliances for $1,000.

“The kitchens we resell are sourced from all over Sydney and its outer regions. It is quite common for people to remove perfectly good kitchens that have only been in for a few years and are worth thousands of dollars,” he said.

If you think you can’t afford a new kitchen, think again. Not only will you get something new for yourself, but you’ll also be stopping something from unnecessarily going to landfill. n

By Ollie Hogue

STYLE


As we all cocoon ourselves inside our homes for the Winter ahead we might start looking around our rooms and realising ‘wow we have a lot of stuff’. And if you have children – well they are just magnets for stuff, mostly plastic and in bright colours.

Here to help relieve us of some of our ‘stuff’ is our style guide Bronnie Masefau, whose aim is to make decluttering easy, especially when we reopen our homes come Spring.

“The question I hear most asked by people is ‘how do I start?’”, Bronnie says.

“Most people believe they don’t have time because they look at the entire picture and feel exhausted before even taking it on.

“The key is to look at what item you consider to be necessary and then anything else is unnecessary. You can apply this to home, work and life.”

“Decluttering is a freeing action and simplifies our lives. All it takes is a mind shift.”

Bronnie advises that to start that mind shift, go into your wardrobe and re-hang all your clothes the wrong way. As you wear them, hang them the right way and by next season, you’ll be able to identify everything that you no longer wear and donate those items to charity.

In places like Brisbane right up to the far north of Queensland, you might like to review your wardrobe every six months; given that you may not necessarily have much of a need for winter clothes like other parts of the country.

“If you’re still undecided about which clothes to get rid of, then you might want to get some honest, trustworthy friends in and ask them to help keep you on track. They can tell you what you really need to throw away and what to keep.”

The method then is to get four boxes and label them ‘bin’, ‘charity/giveaway’, ‘keep’ and ‘relocate’.

Clear the space you’re decluttering and put everything into one of these bins and then throw away, give away, put

back or relocate. Do this room by room and take your time.

“Do it in increments and try not to feel overwhelmed,” Bronnie advises.

“Just aim for what’s achievable. This week it may be the pantry, the cupboard under the stairs or the bathroom cabinet. Whatever you decide just focus on the one area.”

A trick that Bronnie likes is to fuel up on inspiration. Maybe watch a movie that inspires you and then use that feeling to put into the task at hand. Or have a great meal and then channel that satisfaction to clearing out a bookshelf or your pots and pans drawer.

Once you’ve decluttered, the next step is to be purposeful about the space. Identify what you’re storing in that area and then come up with creative ways to make it interesting and easily accessible.

If you’re storing clothes, make under your bed the place to store and pack the clothes into those vacuum sealed bags. Add dark felt to a drawer and lay your jewellery on it to make it visually inspiring.

“If the storage is easy to access and lovely to look at you’re more likely to put things away and therefore avoid falling back into old habits,” Bronnie says.

“Make sure it’s storage you enjoy using. Not many men can be bothered rolling their ties up to position into small drawer inserts at the end of a long day, but a practical ‘Tie Hanger’ from Howard Storage might just do the trick.“

“There are many solutions and most can be Googled and either purchased online, or bought in store. Just make sure it ticks all the boxes and enjoy living a clutter free life! “

For more tips check out Bronnie’s book ‘Australian Vintage Living - Making anywhere home’ www.bronniemasefau.com.au

And if you want some styling tips, contact us and we’ll include them in upcoming stories. n

DECLUTTERING MADE EASY

RECIPE


WINTER SALADSWhether you want to eat a bit lighter this winter or live in an area where it doesn’t get that cold, here are two recipes for you. Both use seasonal produce, which is always cheaper to buy. So go ahead and enjoy your veggies from Cairns to Camberwell.

Ingredients

2 bunches baby beetroot (8 beetroot)

1/2 bunch silverbeet, trimmed, leaves torn

2 teaspoons olive oil

2 garlic cloves, chopped

1/3 cup walnuts, chopped

1 1/2 tablespoons red wine vinegar

70g feta cheese, crumbled

Method

Preheat oven to 200°C/180°C fan-forced.

Trim beetroot stems and leaves.

Reserve small beetroot leaves.

Wearing gloves, wash beetroot.

Pat dry.

Place in a baking dish.

Cover tightly with foil.

Roast for 45 minutes or until skin peels away from beetroot when rubbed.

Set aside until cool enough to handle.

Wearing gloves, peel and halve each beetroot. Place in a large heatproof bowl. Cover to keep warm. Wash silverbeet and reserved beetroot leaves.

Heat oil in a large frying pan over medium heat. Add garlic and walnuts. Cook for 3 to 4 minutes or until walnuts are toasted, stirring occasionally. Add leaves to pan. Cook, stirring, for 1 to 2 minutes or until leaves are just wilted. Add leaves and vinegar to beetroot. Season with pepper. Toss to combine. Top with feta. Serve.

WARM BEETROOT SALAD

Ingredients

2 small red onions, halved, thickly sliced

16 baby red rascal potatoes, halved

2 tablespoons olive oil

2 bunches baby beetroot, trimmed

1 bunch Dutch (baby) carrots, trimmed, peeled

3 medium zucchini, thickly sliced

1/4 cup light sour cream

1 tablespoon lime juice

1 teaspoon Maille dijon mustard

1 tablespoon shredded fresh basil leaves

Method

Preheat oven to 200°C/180°C fan-forced. Place onion and potatoes in a large roasting pan. Drizzle with oil. Toss to coat. Wrap each beetroot in foil. Add to pan. Roast for 1 hour.

Add carrots and zucchini to pan. Toss in oil to coat. Roast for 20 minutes or until vegetables are browned and tender. Wearing gloves, remove beetroot from foil. Peel and cut in half.

Meanwhile, combine cream, lime juice, mustard and basil in a bowl. Serve vegetables dolloped with cream mixture.

Both recipes from www.taste.com.au

WARM VEGETABLE SALAD with creamy lime dressing

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