FEATURE STORIES STYLE SECTION

WHICH PAINT IS BEST?

CLEVER THINGS FOR SMALL SPACES

STYLE SECTION LAYERS, WARMTH AND THAT BIT OF POP

GOING UP: THE LATEST IN LIFT TECHNOLOGY

FEATURE STORIESNSW STRATA LAW REFORM

WHAT’S ON THE FINANCIAL HORIZON? THE ECONOMICS OF THE YEAR AHEAD

RISK OF UNDERINSURANCE: NOT ENOUGH COVER

AUTUMN 2014

NATIONAL NEWS

Community Lifestyle Magazine Autumn 2014 2

IN THIS ISSUECEO Welcome 03

FeaturesNSW Strata Law Reform 04

What’s on the financial horizon? The economics of the year ahead 06

Risk of underinsurance: not enough cover 14

National NewsWhat is an emergency? What to do before the repairer arrives 08

Going up: the latest in lift technology 10

Which paint is best? 12

Clever things for small spaces 16

Cleaning tips for new buildings 20

State News - NSW/QLD/VICQLD - Property market outlook: what’s next 18

Lifestyle NewsLayers, warmth and that bit of pop 22

Recipe: Anzac biscuits with macadamia nuts 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.

What’s on the financial horizon? 06Risk of underinsurance:

not enough cover

14

04NSW Strata Law Reform

Layers, warmth and that bit of pop

24

Which paint is best?

12

NATIONAL NEWS

Autumn 2014 Community Lifestyle Magazine 3

As we draw closer to the end of the first quarter of 2014, I’d like to extend my welcome to the first edition of Community Lifestyle for this year.

Our editorial team are very excited about this edition as they have found some new and forward thinking things to show you.

On the first few pages we hear from Macquarie Bank regarding what’s on the financial horizon for the year ahead. We all want to know what the experts think about the economy and how we might ensure that our finances and assets are working positively for us. Thanks to our good friends at Macquarie Bank, our readers can get all the news directly from those in the know.

We also went in search of the latest information about lifts and paint with Electralift and Taubmans respectively.

If your lift is constantly breaking down it may be time to invest in an upgrade as explained by Electralift. Did you know the average lifespan of a lift is 20 years? If your building’s lift exceeds that it may be time to call in the experts. Today’s technology may also save you money on your power bills - which is certainly something to think about.

Did you know that the process of painting your property has a number of steps including choosing coatings and paint specifications that suit your building type? Neither did we, but it’s all explained in our latest paint technology article along with information on the latest paint performance, of which Taubmans achieved the best ranking.

Something we hope that you never need – but is there if you need us – is our Community After Hours service. This issue we meet our manager Glenn Langley who takes us through some of the situations he has dealt with and how the outcomes have helped our owners. He also explains how a lot of the time emergency situations can be sorted over the phone so if you need help we are there for you.

While on a serious note, SCA (NSW) has been working with its members, some of which are strata owners, in drafting a response to the NSW Government’s Position Paper proposing changes to laws in NSW. Colin Grace SCA (NSW) Director and principal of Grace Lawyers provides us with a summary of the response from SCA (NSW). At the time of writing this, the NSW Government had granted an extension of time for further consultation with various stakeholders before the legislation is drafted. We are grateful for this extension of time. It is important to get the new laws right for people not only living but also working in strata.

As always we hope you enjoy our style page and are inspired to go and find items that stamp your personality in your home. As it’s also that time of year we found a great recipe for Anzac biscuits with a twist for you to try.

Finally to everyone of you have a safe and Happy Easter. n

Greg HaywoodGroup CEO

CEO’s COLUMN

NATIONAL NEWS


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

NSW STRATA LAW REFORMThe NSW Government triggered a number of strata or body corporate law reviews around Australia with the announcement it was undertaking one. Now, both Queensland and the Northern Territory are working on their own reviews while keeping an eye on what happens in NSW. For those readers in Victoria, you never know what might happen after your state election later this year, so you may find this valuable information too.

Strata Community Australia (NSW) members welcomed the release of the Position Paper which we reported on in the December 2013 edition of Community Lifestyle. Since then they have reviewed the paper and met with the new Minister for Fair Trading, Mr Stuart Ayers. At the time of writing this story an agreement has been made to allow more time for submissions.

SCA (NSW) has produced a number of submissions and forwarded them to the government. Here, Colin Grace SCA

(NSW) Director and partner at Grace Lawyers talks us through some of the proposals and what specifically SCA (NSW) members would like to see. Remember SCA (NSW) has strata managers, service providers and owners representing a good cross section of this industry.

“Owners need to be aware of some of the proposed changes especially where they may be put at a disadvantage. For example, one proposed change is where owners wish to go on as members of

NATIONAL NEWS


the strata committee (the old executive committee). The mechanics requires those intending to stand for office holder positions to have their nominations made before the Annual General Meeting. Practically what this will mean is that the owners corporation will need to send out a notice to owners asking for nominations before the actual meeting. This adds another level of unnecessary complication and does not allow for others to be requested at the meeting to stand for office nor is there any instruction or method on how the nominations are called.”

“SCA (NSW) has recommended to the government that the existing process for election of the executive committee and office holders should be retained or that the proposed issues be amended to so that nominations can be received at the meeting as well as those received before the meeting.”

Another change SCA (NSW) would like to see concerns the issue of the appointment of strata managing agents, caretakers and those involved in management of schemes. Colin explains as follows.

“There is an obvious conflict of interest where a property developer proposes to also be the strata managing agent, and or caretaker/onsite manager (through related parties) of the property that it developed or had a part in constructing.”

In a submission to NSW Parliament by the former independent Member for Bligh, Ms Clover Moore, it was recommended that there be a prohibition on this type of relationship.

“We thoroughly support this and while some of the proposed changes do address the commercial interests of parties involved in running a strata scheme, this conflict has not been completely dealt with.”

The government also undertook steps to address the issue of overcrowding in apartments. This occurs mostly in inner city areas and close to universities where apartments meant to house only

two or three people suddenly end up with 20 people.

There will be provisions to limit occupancy however the term needs to correlate with town planning laws and avoid the issues currently arising from owners/tenants erecting makeshift partitions to create ‘extra’ bedrooms.

Colin says the recommendation is for a clear reference as to how the number of

bedrooms is to be determined as well as a right of inspection for the owners corporation to enable the enforcement of occupancy limits.

“We will continue to work with the Minister and NSW Fair Trading on these issues and oversights to ensure NSW gets the best possible legislation that is fair and just for all those living in strata titled properties,” Colin concluded. n

FEATURE


WHAT’S ON THE FINANCIAL HORIZON? THE ECONOMICS OF THE YEAR AHEADBy Riccardo Briganti, Head of Macquarie Private Wealth Research

Whether it applies to your role in business, is important for your own personal investments or whether you are just an uninterested follower of economic matters, the start of a new year is a good time to take stock of what might be on the financial horizon, both in Australia and around the world.

To start on a positive, the global economic environment will remain largely stimulatory in 2014. European and Japanese economic policy was eased further during late 2013 with the European Central Bank (ECB) cutting its official interest rate to 0.25 per cent and the Bank of Japan embarking on its own quantitative easing strategy. Despite the announcement that the US Federal Reserve started tapering in January 2014, US economic policy also remains stimulatory.

Importantly, current economic policy settings are an indicator of economic trends, so it is good to keep your eye on what is at play. Europe and Japan are in the early stages of an

economic upturn supported by recent central bank decisions, while the decision to start to unwind the “extraordinary measures” in the US is an acknowledgement that the US economy is able to maintain its growth momentum, without the outsized support it has required so far. While a synchronised developed world has been a rarity in the past five years, it appears that we will see this happen in 2014.

Overall, the global business cycle is expected to reflect slightly sub-trend expansion in the global economy through 2014, with the dominant contributors to growth being the major developed economies. We expect that global GDP growth

FEATURE


will step up to 3.5 per cent in 2014, compared to 3.0 per cent in 2013.

Although global financial conditions are expected to remain expansionary in 2014, the risk of policy spill over effects, notably from any shift in the stance of US economic policy, may result in periodic divergences in financial and economic conditions for some economies/regions over the next year.

It’s key to note that 2014 is not without its risks. Just as 2013 saw the US debt ceiling and government shutdown, remnants of European Government debt concerns and other geopolitical risks cause volatility, and these issues have the capacity to disrupt positive momentum once more. The success of the various authorities in limiting the possibility of these issues reigniting, and keeping itrelatively contained over the past few years, provides some comfort.

Now let’s turn to a topic you will know well - property.

Locally,the limited impact (until recently) of interest rate cuts on consumer confidence compared to previous rate cut cycles has been mirrored in housing construction. A surge in private medium-density approvals two years ago has become more subdued in current times and while private house approvals have improved overall, they remain lacklustre when compared to the growth rates seen in previous rate cut cycles.

We expect recent confidence in the residential housing market to continue into 2014, supported by the current stimulatory level of monetary policy, firmer demand and a limited supply response. However, the solid returns enjoyed in 2013 will be difficult to repeat as interest rates will eventually have to normalise. As we know from experience in previous rate cycles, increased rates can cool the market and potentially cap increases in house prices.

Positive lead indicators for the retail sector point to increasing sales activity in 2014 and, as is often the case with these indicators, they

can be linked to others. A recovery in the residential housing market should provide support for consumer spending and retail sales, in turn increasing demand for retail space and occupancy.

Finally, the RBA left interest rates on hold at 2.50 per cent at its first meeting of 2014 in February, maintaining its optimistic view on the economy, which

is consistent with the improvement in some indicators of activity since its December meeting.

As is always the case, the year ahead will have its economic highs and lows, both in Australia and around the world. For any observer of economic matters, it will be interesting to see how the year unfolds. n

NATIONAL NEWS


WHAT IS AN EMERGENCY? WHAT TO DO BEFORE THE REPAIRER ARRIVESIt’s easy to panic when faced with an emergency maintenance situation in your apartment or building – especially if the problem is happening outside of normal working hours.

So what do you do if you need an emergency maintenance service when the strata office is closed? Can you call an after hours service and then get the money reimbursed by strata? What if the issue wasn’t an emergency in the first place, and it could have waited until normal business hours?

Making an accurate and early determination on the severity of the problem, and whether or not it is a common property or lot owner responsibility, is vital for the way in which a maintenance emergency should be handled, says Glenn Langley, After Hours Emergency Manager for

Community After Hours, a free-to-call service for emergency after-hours maintenance affecting common property.

“But worrying about who is responsible for the problem when water is gushing through your ceiling is probably not front of mind for most people. They just want the problem solved before major damage is caused,” Glenn says.

“Our role, when we receive a call, is to quickly establish how severe the problem is and whether or not it requires urgent attention. We also have to work out if the problem is the responsibility of the lot owner or the committee, if it is common property.

By Ollie Hogue

NATIONAL NEWS


The most common calls we receive are for issues related to plumbing or electrical works, garage doors and fire alarms,” he says.

“We recently received a call from an owner that was unable to get out of the garage as the main gate wasn’t opening due to loss of power. The lighting was also off in the hallways and along corridors. We arranged for an electrician to be on site within an hour to investigate what was a common property issue.”

“Another lot owner was experiencing a serious bug infestation throughout the second floor of their unit. On the advice of the pest control expert, and in consultation with the committee, we suggested the family stay in a hotel for one night, which was paid for by the owners corporation.”

Community After Hours operate from 5pm through to 8.30am, Monday to Friday and 24-hours-a-day on weekends and public holidays, which is reassuring to know if the problem occurs on a Saturday or Sunday.

“One owner was the victim of a break-in while away on a business trip and had a broken main entry which needed urgent attention. It was a Saturday afternoon, however, we arranged for a contractor to urgently inspect and repair the damage.”

But according to Glenn, while many situations may seem like an urgent maintenance emergency, in reality there is a normally a relatively simple, temporary solution that saves an expensive after-hours call-out to a contractor.

“We resolve more than 50% of emergencies in the first phone call either by providing a permanent fix, a temporary solution that will hold out until the morning, or establishing that the problem is the lot owner’s responsibility and not the committees. We can still help if it’s a lot owner problem but we have to be upfront about who bares the cost. Many of our committees have already made significant savings just by being able to defer works to daytime contractors,” he says.

Glenn goes on to explainthe harder challenges are caused by the more

unusual scenarios, such as major storm damage during public holidays or where there is a grey area of responsibility, such as the location of a blockage in a pipe. Getting access to an empty unit in an emergency also presents a challenge for everyone involved.

“We once received a report of water pouring from the ceiling of one unit into the unit below, caused by an open or leaking tap, but the owner was out of town. We contacted the owner and a committee member and briefed them both on the security procedure for opening a unit without the owner at the premises, as well as organising a locksmith and a plumber to help fix the problem.”

Lot owners and tenants should be aware that problems such as broken internal hot-water tanks, toilet cisterns not flushing or leaking, and white goods not working, are the responsibility of the individual resident, estate agent or the landlord to repair.

“For those worried by water supply failure, it can actually be due to several

reasons, including work by the service provider on the street pipe supply, which they have temporarily shut off, or that a plumber may already be working in the building”, advises Glenn.

“Other reasons could be failure of a circulation pump, which could affect both hot and cold supply. If you suspect that a pump has failed call your after-hours emergency number,” he says.

But if water suddenly starts running out of a wall, ceiling or floor it obviously should not be ignored as it can quickly cause major damage to carpet and personal effects.

“First, quickly check with the upstairs neighbour to ensure that their dishwasher, washing machine or internal hot water tank is not leaking. If the problem appears to be a burst pipe within a wall or floor, attempt to find the main stop-valve for your unit and turn it off. The shut-off is normally in a kitchen cabinet, in the laundry or under the laundry tub,” says Glenn. n

• Regularpoolandspaservicing• Casualandondemandservice• Emergencycallout• Greenpoolcleanup• Equipmentsupply,repairand

installations

• Poolchemicalsupply• Poolandspainspections• Poolmanagementplans• Programmedmaintenance• Solar,gas&electricheating,fencing

andlighting

There’sabettersolutiontopoolcare...PoolWerx-Australia’slargestpoolandspacarenetworkisabletokeeppoolsandspasofanysize,inanysituation,underanybatherload,costefficient,healthyandsafe.

What PoolWerx can do for you...

Our accredited technicians can advise best practice to meet or exceed legislative compliance for pools and spas in fencing and water quality!

NATIONAL NEWS


GOING UP: THE LATEST IN LIFT TECHNOLOGYWhether it’s a small hydraulic lift in an apartment block or a gearless system in a high-rise office tower, a safe, reliable and well-maintained lift system is clearly one of the most important components of a successfully run building.

So why then do so many owners corporations and committees insist on staying held to ransom (almost) by the regular breakdowns and inefficiencies of lift systems that are often 25 to 30 years old, or even older?

In many cases the lift system is not included in the long-term budget planning of the owners corporation because the financial resources are not available. Some committees are also more likely to direct funds toward an entrance upgrade or carpet replacement than tackle a lift modernisation that is 10 years overdue. This is especially the case with some older low-rise residential and mid-rise office buildings, and the

problem is further compounded if the committee do not know where they are in the lifespan of the lift – the average lifespan of a lift is 20 years.

But with careful planning, modernising your lift can be a strategic capital investment instead of an emergency situation. And the developments in technology – which save the owners money, add value and result in more satisfied and safer travel for users – may even surprise you.

Modern day lifts are incredibly energy efficient. This means they perform efficiently without consuming too much electricity, which is good for the

By Ollie Hogue

NATIONAL NEWS


Strata disputes??

We provide cost effective and practical solutions. We act on every kind of dispute in strata buildings,

community schemes and company title units.

Your problem is ours to solve!!

02 9233 7788

www.makdap.com.au

[email protected]

Level 10, 135 King Street Sydney NSW 2000

environment and even better for your operating costs.Craig Ellis, General Manager of Electra Lift says, “A quality lift upgrade can save a building as much as 80% of its current lift power usage. Such a dramatic reduction in power consumption immediately impacts the building’s bottom line.”

“But one of the biggest risks for building owners is finding replacement components and replacing worn out parts, which becomes harder and harder the more outdated the lift.We retain a wide range of parts for both old and new equipment, but older equipment still needs more intensive servicing due to the extensive number of moving parts, so it can get expensive,”Craig says.

“Ineffective and unreliable equipment can also cause safety issues through inconsistent floor levels, jamming doors and malfunctioning controls. Vibrations and unusual noises can also make passengers feel uncomfortable and insecure – to the extent that some will choose the stairs just to feel safe,” he says.

“An upgrade will also address newer safety standards and bring your lift equipment into compliance with current regulations, for instance buttons that incorporate braille and at the height regulated for persons for special needs.”

The development of programmable logic control (PLCs) systems has also had a major impact on lift technology especially when compared to the systems designed in previous decades. In fact, the developments have been so significant that enhanced ride quality, floor level accuracy and reliability, and reduced wear on mechanical equipment are now standard expectation for most users and new building owners.

“Upgrading the controller for a lift is one of the key modernisation tasks that we perform for our customers,” Craig says. “New controllers are much smaller in size and fitted into a dust proof cabinet, which also helps with moisture issues. It effectively eliminates the problems associated with contacts not making, coils burning out and not energising due to mechanical problems with current relays.

“The added advantage with PLC and electronics is that being solid-state, there are no moving parts and therefore no wearing of main drive areas, which in the long run will providea greater degree of reliability,” he says.

“The effects of our control system in conjunction with a VVVF [Variable Voltage Variable Frequency] drive system are quite amazing, in that no longer do you have the sudden stopping and starting and inconsistent floor levelling. This is replaced with a smooth acceleration and deceleration and constant accuracy, and in general, prolongs the life of the machinery.There would be a major increase in the life expectancy of the lift equipment with the carrying out of this work.”

New control systems are also programmable, which means lifts can regulate themselves through software that directs the closest lift to the calling floor.

“We can adjust the system to suit the occupants needs, for example if the lift traffic is excessive during the week at

5pm going up, then we would make sure a lift, once it has completed its run, returns to the ground floor for new traffic,” Craig says.

But before it’s suggested the lift modernisation will make your building look like an office or shopping centre. The refurbishment of an old lift to reflect the building’s character is possible with heritage style interior and exterior cabin finishing available.

“Maintaining the aesthetics of the building is always taken into consideration during any consultation process,” Craig says. “Committees sometimes require wood or synthetic panelling to go with their interior colour scheme and theme. French polishing is another option as is custom-made button panels.

“Whether the client requests a contemporary, heritage or art deco finish, remodelling your lift car interior can make all the difference to the confidence of passengers and the image of the property.” n

NATIONAL NEWS


WHICH PAINT IS BEST?By Ollie Hogue

Paint is not just a pretty face for your residential or commercial building. It plays a key role in protecting the outside structure from Australia’s unique weather conditions and other damage. As well as protecting internal common areas such as receptions and stairwells from the daily wear and tear that occurs in these high-traffic spaces.

While reaching a decision on the colour scheme might be one step for the committee to agree on, the more complex challenges, often assigned to the strata manager, include the coating assessment, paint specification and choice of contractor. But get one of these aspects wrong and the committee faces the very real prospect of overpaying for a poor result, which they may have to pay for again to get it done right.

The first job for the building’s strata manager then, or whoever is assigned the task of organising the new paint job, is to ensure the chosen coating and paint specification matches the building’s requirements.

Next up is sourcing a list of recommended preferred contractors for budget and quotation analysis, obtaining product warranties and coordinating on site checks throughout the painting process. All of which reduce risk and provide peace of mind for everyone involved.

But while a strata manager gets paid to search for experts and advice, committee members don’t. So, at the very minimum, the coordination of these activities is time consuming and likely to take away from other more pressing matters.

However, Taubmans has now rolled all of these services into a free Coatings Advisory Service – providing strata managers, building owners and executive committees with the

NATIONAL NEWS


confidence that the contractors selected are quoting to a site-specific paint specification, backed by the warranty of a market leader.

The free service has already been used by strata managers and committees throughout Australia with great success. The service offers practical solutions for product performance, and delivers best value by providing the ‘best fit’ technical paint specifications for the building in question.

And even if you choose not to proceed with your paint job straight away, you remain armed with the right information about your building’s interior and external paint needs until the time is right to proceed.

Choosing the correct paint product is just as important for the building too. For the best performance, use the best paint, advises the Master Painters Association. Sounds obvious, right. But it’s true. The old adage, ‘You get what you pay for’ applies to paint just as it does to other things in life. In most cases, buying the cheapest paint product is simply a false economy.

So how do you know what’s best for your building when it’s hard to judge the quality of a product from its label or by its price – and the highest price doesn’t necessarily mean the best quality either.

The Australian Consumers Association’s CHOICE Magazine has tested 21 low-sheen acrylic paints – the most commonly used paint type for interior walls.

They tested the hiding power – how well the paint hides a background of contrasting colour. A low score in this test may mean a third coat of paint is required on walls to hide any underlying colours or marks, which will cost you more in paint and labour.

The paints were also tested for their resistance to washing – measuring the gloss of the paint before and after it has been washed multiple times with sponge and soapy water, and scrub resistance – the number of cycles taken to significantly wear the paint, using a bristle brush and abrasive cleaner.

High-traffic areas in strata buildings such as reception areas and stairwells need a product that will last when frequently cleaned and scrubbed. The paint must also provide good stain resistance – preventing stains from penetrating the painted surface, allowing for easy removal.

Top of the list, and CHOICE Magazine’s ‘overall best performer’, was Taubmans Endure Interior Low Sheen, with excellent or very good scores in all categories. The paint also had the joint-highest maximum coverage rate of

16m2/L, while the Endure range is the only interior paint guaranteed for 15 years against blistering and peeling.

Used in Australian homes for over 110 years, Taubmans is one of the oldest paint brands in the country and remains a major player in the Australian paint market. In 2007 the company was acquired by PPG Industries, which were one of the first companies in the paint industry to develop new performance standards for zero and low volatile organic compound (VOC) products. VOCs can cause headaches, dizziness and nausea.

In recent years, Taubmans has been responsible for launching innovative paint brands such as Endure with Nanoguard, Living Proof Silk with Teflon, Easy Coat with Microban and All Weather with Dirt Shedding Technology.

To enquire about Taubmans’ free Coatings Advisory Service for your strata building visit www.taubmans.com.au/professional/contact or call 131 686. n

The old adage, ‘You get what you pay for’ applies to paint just as it does to other things in life. In most cases, buying the cheapest paint product is simply a false economy.

NATIONAL NEWS


RISK OF UNDERINSURANCE: NOT ENOUGH COVERBy Alan Ferrè - CHU’s State Manager to Victoria and Tasmania

“The requirement of a body corporate or owners corporation to arrange strata insurance has seen an increase in legislative focus in recent years, but despite this, an estimated 70% of properties are still underinsured” says the Insurance Council of Australia. With so many grey areas, CHU answers the most common questions relating to strata underinsurance.

1. Do you believe many Australian unit holders/body corporate/strata holders are underinsured on their properties?

Underinsurance has long been a problem in the Australian property market, and the strata sector is no exception. The strata sector is very heavily regulated by appropriate state-based legislation, which outlines the insurance requirements of an Owners Corporation (OC), and the personal risk to each and every member of an OC of failure to have adequate insurance in place. This includes property and liability, as well the exposure inherent in being a committee member of an OC.

The obligations of OC committee members are substantial and they can be held personally liable for their actions and decisions made on behalf of lot owners. In addition, lot owners have an unlimited liability to cover any potential shortfall in insurance funds in the event that a loss is not adequately covered by the sums insured in an insurance policy.

Whilst not directly focussed on strata, there have been a number of significant

studies into underinsurance in Australia, including:

n In 2005 the Australian Securities and Investments Commission (ASIC) penned a report following the tragic 2003 bushfires in Canberra. In this report ASIC advised, that “...the level of under insurance in Australia is high. Recent surveys suggest that between 27% and 81% of consumers were underinsured by 10% or more against current rebuilding costs.”

n More recently, and as part of the Barriers to Effective Climate Change Adaptation submission to the Productivity Commission in 2012, Insurance Australia Group (IAG) advised:

- Non-insurance and under-insurance continue to be a problem;

- The rates of non-insurance are similar to those found in a survey 10 years ago

It is not unreasonable to assume that the same level of underinsurance exists in strata, even though the legislation stipulates that cover should be put in place at market replacement costs.

NATIONAL NEWS


2. Please list the top questions that a unit investor should ask an insurer when enquiring about a building and contents insurance policy on their rental property?

For a rental property the investor should be purchasing Landlords Cover. This policy provides a range of covers. The most important issues an investor needs to cover off are:

n Any physical aspects of the building the investor owns but is not covered under the OC policy e.g. floating floors

n Which items, under the rental agreement, are covered for damage e.g. washing machines, dishwasher?

n What amount of third party liability cover is included?

n Is there cover for rental default and malicious damage by a tenant?

3. Is the replacement valuation up to the strata/body corporate to sort out or does the insurance provider do this? If no, how

does a property owner work out the property’s replacement value? Is this consistent across the nation and what is the approximate cost to do this?

An insurer does undertake some underwriting surveys on certain strata risks, but this is more to do with risk assessments that are used in determining insurable amounts. The OC is responsible for ensuring it meets strict legal obligations to purchase sufficient insurance for full reinstatement and replacement: as mentioned previously, the services of a respected and experienced valuer should be used to perform this on an appropriate frequency basis.

Strata policies do not have an average clause in them. This clause means if a property is only insured for 50% of what it should be then only 50% on any claim will be paid.

Looking forward, strata insurers may begin to reintroduce average clauses into their wording if OC’s continually

underinsure. The reason being, the insurer is simply not getting adequate risk premium to cover what it is underwriting.

4. Is contents insurance important, even if the tenant has taken out cover? What does this generally cover? Do you think there a common misperception that contents insurance only covers non-fixed items?

A tenant or lot owner needs to take out insurance to cover property that it is not the responsibility of the OC to insure. This will include all personal items e.g. TV, fridge, freezers, clothes, dishwasher, carpets, curtains, blinds, etc. The contents cover also needs to provide third party liability cover as well.

There is a lack of understanding of the need to buy contents insurance for an owner occupier, or a landlords cover for an investor, or contents cover for a tenant, as people mistakenly think the OC cover insures everything. n

NATIONAL NEWS


CLEVER THINGS FOR SMALL SPACESBy Ollie Hogue

If you live in a small apartment you have to be clever about where to keep things so they’re not in the way. And even in larger apartments, it still shows if you fail to use the space wisely. Fortunately, there are countless companies with nifty design ideas for saving space and keeping things organised. Here are just a few of them.

Organiser Maxiwww.willowandwood.com.au

A great find for those who are looking for a creative and practical space for their ‘bits and bobs’. Handmade in Australia and great for your kitchen wall or office desk, the Maxi features eight quality nickel-plated card files, four separate cubbyholes, a handy ledge and a generous sized padded noticeboard. It is finished in two fabric choices: linen or dots, and soft, white cotton tape to hold everything in place.

Vertical Gardenwww.productivegardens.com.au

Helping people create affordable, edible, organic herb and vegetable gardens in small spaces is the mantra of Brisbane-based and online company Productive Gardens. The Vertical Garden product enables apartment dwellers to grow and harvest fresh herbs and vegetables on their own balcony – a great option if you have limited space. And with the large catch tray, no water or mess will overflow to the units below. The 4-layer garden is available in terracotta, stone and slate.

Sofa Arm Wrapwww.etsy.com

For apartment-dwellers who have no space for a coffee table, this unusual new alternative puts an end to precariously balanced items while you’re watching TV. It’s called the sofa arm wrap. Designed by Blisscraft & Brazen, the wooden arm wraps are custom-made for each couch, armchair or ottoman and make a fantastic surface for a drink or laptop. Made from reclaimed wood, there’s also a plywood version for budget conscious.

NATIONAL NEWS


Laundry Podwww.thelaundrypod.com

Fewer trips to the laundry service, self-sufficiency, convenience and ongoing money savings are the major drivers behind the Laundry Pod – a portable and simple way to do laundry on the go. The Laundry Pod washes 5-10 items using less than 5 gallons of water. And it doesn’t require electricity or any kind of motor, just good old-fashioned manual effort – which makes it ideal for small apartments, students, boats and camping trips. Think salad spinner meets washing machine.

Parrot Zikmu Solowww.parrot.com

It may not be the most neighbour-friendly gadget with its three 20-watt speakers and a 6.5-inch, 50 Hz bass, but the Parrot Zikmu Solo sure is stylish. It promises a 360-degree sound experience in a single stereo tower and features wireless speakers, iPhone docking station and full connectivity with Bluetooth 3.0 wireless technology. A free App serves as the controller and provides users the ability to adjust the audio settings to suit any room and audio style.

Lava Glass Radiatorwww.warmeraustralia.com.au

An infrared radiant panel heater sounds sophisticated but it’s not until you realise it’s the picture or mirror hanging on the wall that the genius really kicks in. Unlike conventional heaters, the Lava heats all the objects in the room and not just the air. The clever design is available in a range of sizes, colours, art works, as a mirror, or if you’re feeling creative they can integrate your own picture, photograph or logo. It’s the ultimate combination of energy efficiency and interior design.

QLD NEWS


PROPERTY MARKET OUTLOOK: WHAT’S NEXT?It’s been a good year for housing investors. The combined value of Australian capital city homes ended January ten per cent higher than they were 12 months ago according to RP Data-Rismark.

It is a dramatic turnaround from less than two years ago when the housing market was at the end of a 7.7 per cent peak to trough slump in values.

But while the numbers will make most investors happy, they still show a market more muted than in past growth cycles. Capital city dwelling values rose 10.2 per cent in the 18 months to October, compared to 20 per cent over the same time frame in 2009/10 when boosted first home-buyer incentives were driving the market, and 30 per cent in 2001/2.

RP Data head of research Tim Lawless says there are signs the current up-cycle has passed its peak and growth will begin to cool this year, although he is still expecting a strong year of growth.

Low rental yields, particularly in Sydney and Melbourne, are hampering investors’ ability to hang on to property. Affordability constraints will also dampen market exuberance in the year to come, Lawless says.

And then there are tightening lending standards. While there is no sign of overt lending restrictions of the kind New Zealand’s Reserve Bank has imposed on the banking sector there, APRA will be paying attention to mounting loan-to-value ratios.

“With banks under pressure to maintain prudent lending standards, affordability and serviceability constraints are likely to enter the market,” Lawless says.

Another dampener is employment, which continues to drift higher. It is still below six per cent but Treasury forecasts suggest it could hit 6.25 per cent mid next year. The consumer caution this brings about will lead to second thoughts towards major purchases.

But the growth drivers are there. Population growth is strong on the back of overseas migration, ensuring ongoing demand for limited housing stock. While the interest rate cutting cycle is at or near its end, few economists expect official interest rates to rise this year.

And while there are some concerns about the market over-heating, they are muted.

The Central Bank in September warned the increase in self-managed super funds borrowing to invest in property and its potential to exacerbate property price cycles. It earlier warned banks to ensure they lent prudently in a low interest rate environment.

“Although we may see housing market conditions start to cool, at least at a macro level, over the coming year, it doesn’t mean the housing market is set for another correction,” Lawless says. “Our view is that growth in dwelling values will slow to more sustainable levels, broadly in line with income growth. That said, income growth over the coming years is likely to be lower than what it has been over the past decade.”

Brisbane outlook

There is no doubt in Brisbane real estate agent Andrew Degn’s mind that he’s in for a good year.

“We’re a sale a day,” Degn, the director of Place West, says. “It’s the best January I’ve had since 2007 as far as volume. We are absolutely roaring.”

It’s been a long time coming for Brisbane’s housing market, but it’s set to be the most-watched capital city in the property world this year.

Brisbane values, including the Gold Coast, rose only 3.71 per cent in the 12 months to January 31. But with its high rental yields, low rental vacancy rates and vastly more affordable property when compared with other capitals, the market is starting to rise.

Just before Christmas, Degn sold a three-bedroom house at 61 Alma St, Paddington for $810,000. The home’s owner bought it for $665,000 in the middle of 2009. Another sale around the same time was the $830,000 purchase of 45 Hayward St, Paddington. The previous owner of the three-bedroom house bought it in March 2011 for $750,000.

Degn says the real growth is for properties like the above – houses in inner city suburbs priced below $1 million. Demand is improving for those priced above $1 million but many have yet to recover the loss in value since peaking in 2007.

Lawless says Brisbane is showing the best fundamentals out of Australia’s capital cities. “Our view is that capital

By Ben Hurley

QLD NEWS


gains will start to outperform the broader capital city average over the coming year.”

Brisbane’s median dwelling value is now $482,000 – around 36 per cent lower than Sydney’s, 24 per cent lower than Melbourne’s and well below the national capital city median of $624,000. The disparity between Brisbane house prices and those of the southern capitals has traditionally driven migration to Brisbane, and corresponding property booms.

The gross rental yield for Brisbane is also much higher than other capitals, at 4.6 per cent for houses and 5.6 per cent for apartments.

“Population growth is strong and there hasn’t been a substantial uplift in new dwelling supply, indicating a persistent undersupply of housing,” Lawless says. “Rental vacancies are around the two per cent mark according to the [Real Estate Institute of Australia], which is likely to drive rents higher as well.”

AMP’s Shane Oliver tips strong growth this year in Brisbane.

“I think there is upside in Brisbane,” Oliver says. “I can see it accelerating, maybe eight per cent capital growth this year.”

Oliver was surprised at the pace of Brisbane’s turnaround. “I remember going there last year and people were still saying it’s dead in the water and

won’t pick up. It has, and we saw good growth in Brisbane prices in the December quarter.

“I think the public servants cutbacks put a negative tone around the Campbell Newman government. I think that’s now fading, and I think that market will continue to accelerate this year.”

BIS Shrapnel in June tipped Brisbane’s housing market for 17 per cent value growth over the next three financial years. A long-awaited recovery should start to emerge in 2014, says BIS Shrapnel senior manager Angie Zigomanis.

“From a fundamental perspective, Brisbane has had very weak new dwelling building activity and you’re seeing that starting to be reflected in tight vacancy rates,” Zigomanis says. “There’s the potential for growth to come through and attract more investors, and there’s a lot of people in Brisbane who have been sitting out of the market.”

Century21 Australia chairman Charles Tarbey also feels Brisbane has the most potential this year.

“For me it’s pretty straightforward,” Tarbey says. “Brisbane had a slower rise in price over the last year or so. Most importantly, what’s happened is all of a sudden in Sydney people have gained all this equity. They are now in a position to invest or look at discretionary spending areas.

“When I look at the Sydney market and how much difference there is between Sydney and Brisbane, one and a half years ago there wasn’t much difference, but now there is a difference of hundreds of thousands of dollars. You can sell in Sydney, buy a property in Brisbane that’s the same, and have cash in the bank.”

There is also some sign the lifestyle markets of the Gold Coast and Sunshine Coast are turning around, Lawless says, with some improvement in buyer activity and dwelling values in recent months.

“Transaction numbers are rising from a low base, however we would expect ongoing improvements in these markets as sea change migrants reconstruct their retirement savings and lifestyle buyers become more confident.” n

NATIONAL NEWS


CLEANING TIPS FOR NEW BUILDINGS

1. What types of cleaning services are required for a new strata building?

All new strata buildings require cleaning to all the common areas, which is usually best performed by a single cleaning company. The main cleaning areas are hallways, elevators, car parks, fire-stairs, pathways and swimming pools, as well as looking after the recycling and waste management for the building.

2. How are these different services set-up and who is responsible for them?

Usually the strata manager would work with the developer and source several cleaning quotes. On larger developments, where there is a building management committee or a building manager has been appointed, the manager would prepare a scope of works and go to tender for the cleaning.

There are numerous things to think about for every new strata development, which is probably why the cleaning service gets left to the last minute. We spoke to Frank Boross from Havencab Sustainable Cleaning Solutions for advice on the key cleaning issues for new strata buildings.

NATIONAL NEWS


The cleaning company would then be engaged for the strata plan up to the First Annual General Meeting. Where there is a building management committee, the developer can appoint a company directly for the development as per the Strata Management Statement.

Responsibility for cleaning services remain with the developer up to the First Annual General Meeting and then directly with the building management committee or owners corporation after that. After the First Annual General Meeting,the cleaning contracts are usually tabled at an Extraordinary General Meeting and then either ratified or a new contract is accepted.

3. What are the common cleaning problems faced in a new building?

There are a few minor issues that are commonly found with the cleaning of new developments. During the initial

stages the builders are usually still handling defects and rectifying these works, and in most instances they leave a huge mess behind. To overcome this, it is important to try and roster the cleaning after the builders leave the site, so that any mess can be cleaned up before the owners return home.

Another issue to think about is that the purchase of new furniture and whitegoods, when people move in to their new home, often createsa huge amount of cardboard that needs to be removed to a designated area, flattened/cut and prepared for collection by council.

We also suggest that the cleaning contractor is involved and consulted by the developer early so as to set a realistic budget for cleaning services. There are many occasions where the cleaning budget has been set way too low and it is not possible to maintain the building to a high standard.

4. How often should a new strata building be cleaned and why?

This really depends on the lot size and complexity of the development but for anything over about 50 lots, we would suggest a Monday to Friday service.

Most people don’t realise but the first two months of every new development is the most difficult and the hardest to maintain, as the cleaning staff spend 50% of their time managing the cardboard and cleaning up after the builders, which doesn’t leave much for normal duties.

It is also very important to provide photos and report on any issues on site so that the strata manager can advise the developer and builder. In a perfect world we would have double the resources on a new development in the first two months then revert back to the normal cleaning regime. Unfortunately as the developer is paying for the cleaning fees upto the First Annual General Meeting, this rarely happens. n

SUSTAINABLE CLEANING SOLUTIONS

Visit our website to find out about our affordable solutions.

Providing a full range of Cleaning Services

- Directly employed staff- 25 years in Strata- Solutions to meet your budget- Paperless reporting

STYLE


The easiest way, and certainly the least expensive, to add a new dimension to a room is with soft furnishings. Our regular Stylist Bronnie Masefau shows how easy it is.

“Soft furnishings can soften hard surfaces, make a room warmer and practical – even if you’re renting you can still add that personal touch to your home,” Bronnie says.

Generally, items that are cloth are soft furnishings. Bronnie explains that this can be anything from curtains, chair covers and cushions to lamp shades, linens and throws.

“Even the humble tea towel is a soft furnishing and can add some interest to a kitchen. It is sometimes as simple as that.

“Soft furnishings not only soften our modern square rooms and concrete floors but they are practical in adding warmth and especially removing drafts.

“Where people come unstuck is getting their proportions and scale right for their room and in relation to their furniture.”

If your rooms are neutral colours then you can add a pop or dash of colour and change it with the seasons for very little money.

For example, the latest trend in the bathroom for those with shower curtains is to have a double layer.

“This can add so much luxury to a bathroom,” Bronnie says. “You have your usual clear plastic inner curtain then have a second outer curtain in a lovely fabric. I designed one recently and it gave a neutral bathroom a wow factor. The client loved it and it is practical as the double layer keeps the warmth in from the shower – great as we move into Autumn and Winter.”

For bedrooms the old valance or dust ruffle is back, but Bronnie says some are now custom designed and don’t even look like a valance.

“These add a layer of opulence to the bedroom particularly when they are upholstered. It is a very contemporary look and really suits some of the very modern apartments that are around.”

If the budget is tight then something small like a different lampshade can also inject personality into a room.

“They can really add style to an area and a rule of thumb is that the shade should be slightly wider than the base and three quarters higher than the base – once you know this you should be able to find or create some great combinations. Look out for square instead of round shades and check out places like Bunnings, IKEA and Freedom Furniture for some great, inexpensive styles,” Bronnie advises.

Beautiful cushions are a great way of adding colour, texture and interest to a room. They are also great for cuddling up with as the nights get cooler. They can easily be changed just by removing the cover and you can swap them around depending on the season.

“One thing that let’s decorating with cushions down is the insert,” Bronnie laments.

“Quite often the insert you get with that great cover is best thrown away as it is likely to be cheap and will let down the look you want to achieve very quickly.

“Always try to have an insert that is filled with duck down or a combination of down and feathers. It will last a long time and the good news is we’ve found good quality inserts at IKEA for around the $9.00 mark.

“While we’re on the subject, in the bedroom there is nothing worse than horrible old pillow cases especially white ones that are now yellow. They can be fairly inexpensive so buy ten at a time and you will always have a nice clean look in your bedroom.”

Bronnie’s last piece of advice is that custom investments set you apart and have great impact on a room. Even if it’s an amazing cushion cover with an IKEA insert – this will be a reflection of your taste with a good dash of style. n

LAYERS, WARMTH AND THAT BIT OF POP

RECIPE


ANZAC BISCUITS WITH MACADAMIA NUTSAt the going down of the sun and in the morning, We will remember them.Lest we forget.

Ingredients

75g (1/2 cup) whole macadamia nuts

115g (3/4 cup) plain flour

1 teaspoon ground ginger

165g (1 1/2 cups) rolled oats

165g (3/4 cup) caster sugar

45g (1/2 cup) desiccated coconut

2 tablespoons boiling water

1 tablespoon golden syrup

1 teaspoon bicarbonate of soda

125g butter, cubed, melted

FruitBananas Blackberries Blueberries Figs Grapes Honeydew melons Kiwifruit Lemons Limes Lychees Mangoes Mangosteens Nectarines Passionfruit Peaches

Pineapples Plums Rambutan Raspberries Rhubarb Rockmelon/ cantaloupe Strawberries Tamarillo Valencia oranges Watermelon William Bartlett pears

VegetablesCapsicums Celery Chillies

Cucumber

Eggplants

Green beans

Hass avocados

Leeks

Lettuce

Onions

Peas

Snow peas

Spring onions/green shallots

Sugar snap peas

Radish

Sweet corn

Zucchini

Yellow squash

In season now...

From “Ode of Remembrance” taken from Laurence Binyon’s poem, “For the Fallen”, which was first published in The Times in September 1914

Method

Preheat oven to 160°C. Line 2 large baking trays with non-stick baking paper. Spread the macadamia nuts over 1 tray and cook in preheated oven for 6 minutes or until lightly toasted. Transfer to a chopping board to cool slightly, then coarsely chop.

Sift the flour and ginger into a large bowl. Add the macadamia nuts, rolled oats, sugar and coconut, and stir to combine.

Combine the boiling water, golden syrup and bicarbonate of soda in a small jug. Once the mixture froths up, stir in the butter. Set aside for 5 minutes to cool slightly. Add the cooled butter mixture to the flour mixture and use a wooden spoon to combine.

Place 2 heaped teaspoons of mixture onto 1 of the lined trays and use the back of a spoon to flatten slightly. Repeat with the remaining mixture, leaving about 3cm between each. Bake in preheated oven for 13 minutes for chewy biscuits or 16 minutes for crunchy biscuits, swapping trays around halfway through cooking. Set aside for 5 minutes, then transfer to wire racks to cool.

Recipe courtesy of www.taste.com.au

FEATURE STORIES STYLE SECTION

Documents

Transcript of FEATURE STORIES STYLE SECTION