Real Estate Newsletter – Autumn 24

The Season of Transition

The seasonal change to Autumn is another great opportunity to share our thoughts and strategic plans with our readers and clients.

The One who planned our world system seems committed to variation and excitement throughout our lives. Weather patterns and colour changes are a daily event… and  sometimes occur hourly.

Our cover photograph was taken in the South Australian Riverland a few weeks ago. It shows a warm blue sky for outdoor summer activities in the East and the dominant red-dust and cloud moving in from the left… Northwest…  spelling a radical change for the events of that day.

Sunshine… to Red Dust… to Storm Clouds…each in quick succession.

Change!… Whether it is wanted or not! It is Autumn!
Soon the trees in the fore-ground will lose their beautiful leaves, whether we like it or not: and we will again learn the lesson of patience as the cycle repeats itself.

This cycle applies not only to our trees and flower beds, but to everything around us… and especially our economy and work environment… our families.

Take a moment to pause… How are you preparing for the inevitable life changes ahead?

Attitude… Financial Reserves…. Staff Training… Physical Awareness… Relationships!

I like the thought of colour and excitement in the seasons of life just ahead… and maybe some grit and courage!

How about you?

Quality Assurance Survey

Tell us what you think about us!

Lin Andrews Property Group has had unbroken service to South Australians since 1970. Old and stable… yet as fresh as tomorrow in customer service, knowledge and technical skills.

After 54 years we need to know how we are perceived by clients and friends.

Henry and Jessie are members of our Executive Team. Each has more than a decade of experience in Property Management and Administration – Commercial and Residential.

Neither is in sales or field work, but each is a specialist serving the whole company as a background resource in differing departments of administration.

Each has a young family and knows a lot about life balance.

Our Executive Group have assigned these two the task of talking to existing and potential clients and understanding how well we are doing in our service delivery. The Exective Team want to remove all barriers in client feed-back so that we KNOW we have world best practices… if such is possible.

Please assist as Henry or Jessie communicate with you.

Times Change – Old Habits Persist

A comment this week from a country-based octogenarian speaking of his efforts to get a certain job done:

“That young feller is nice enough, but it seems his ‘gunna do’ tray is always full… and I doubt there is much is his ‘dunn’ tray.”

I told his boss, a friend of mine.. I smiled and noted this, without comment.. except that we may all look in the mirror.

Economic and Government Challenges

New landlord and tenant regulations

Most landlords are upset at the “interference” with their investments by the State Government. The writer does not personally have a problem with any of the changes… because the objective is improved landlord/tenant relationships.

Our paradigm: “Integrity protects the ‘Landlord AND the Tenant’… the ‘Seller and the Purchaser’” is confirmed.

We strive for BOTH parties to respect the other and have a mutually rewarding relationship. Long term businesses make profits and survive in their chosen activity… providing they understand the needs of clients and together resolve problems.

Currently landlords have faced extreme changes in the cost of providing accommodation and this must be passed-on to the client/tenant.

Tenants have the same problem of increased living costs and make adjustments as may be possible.

Stability is important to each group and sadly, sometimes requires government intervention… Which many times should not be necessary.

Long term tenancies mean lower letting costs and changeover maintenance costs.

A home is a home whether leased or being paid-off to a bank… and people who have a sense of permanency are happier people.

Circa one third of our population are tenants. This has seldom changed very much, but the trend is for more people to rent which means the business of providing accommodation in its various forms is growing.

During 54 years in the business of providing Residential and Commercial accommodation we have seen bank and government interference, unhelpful comment by politicians and short term greed by people of low personal values, but through perseverance we have assisted many to create long term wealth and others to enjoy the privileges of great rental accomodation.

We encourage an acceptance of change which brings stability and long-term benefits to each party in every transaction.

Interest Rates

I am certain that most do not want further commentary on this subject, but like the Autumn season of change so interest rates will eventually change.

Tax Laws

This is another economic change which worries people. What if negative gearing is taken away? What if the discount on Capital Gains is removed?

We remind you that the end of the fiscal year is less than four months away, and urge you to talk to your Accountant about diminishing your income tax this year.

Other Comments

Fear and anxiety are the greatest reasons that people grow old and poor… and people do not have rental homes to live-in.

One third of the population (circa) live in rental accommodation in Australia and this is a big industry for you and I to be a part of.

The very best investment security is to invest in that which is a necessity. Food and shelter… and of course security.

Change in rental accommodation is imminent, please see the article below. The housing rental business may change in its form of presentation, design and quality of service… but it is safe… and the cost of replacing it rises every day.

Invest while you can still be in the market.

If you can’t afford to go alone, setup a syndicate or partnership with a friend and share the cost.

Fifty percent of something is better than 100% of nothing.

Commercial investment may give you a higher rate of return… and a simpler form of management.

Share Housing Makes a Comeback

New landlord and tenant regulations

Residential accommodation is in a period of change. Rental increases are still climbing and there is simply not enough accomodation available to house the people.

No-one expects rents to come down… but stability will permit new solutions.

Jess and Christie are two of our senior people who are working with residential Investors who are successfully converting homes to lease as share-housing.

To discuss the subject, feel free to speak to these two ladies who are spearheading this new service.

The house pictured above is situated in Medindie Gardens and has been very succesfully converted for the purposes of share-housing.

This old home (mansion) has 17 spacious  rooms. Most are fully furnished and equipped with bed-linen and other necessities.

Each room rents for $270 to $400 per week.

This is very attractive to tenants who do not have extra bills in the way of electricity/water/etc as these costs are all met by the landlord.

These photographs are of new construction homes, purpose built. Each room leases for between $270 to $350 each per week with bed-linen /etc.

There is a waiting list on these homes.

Commercial Property Highlights

Light Industrial: The Backbone of Industry

Lou Whitelock is an outstanding Executive Professional who has been with this company all of his working life.

He does a lot of work in Commercial property and has a huge following amongst owners of Light Industrial Workshops.

He deeply respects these business-men who often are providing outstanding services to clients under their own names… they are putting themselves and their reputation on the line every-day… they are the salt of the earth, says Lou.

He reported that this state seems to be doing very well. A number of clients in smaller workshops are moving into bigger premises.

This is a positive sign as to the health of our economy and indicates a great future.

“Strategic tax – plan now..” says Lou.

A number of clients are planning ahead to sell and upgrade their premises, but do not want to earn any more money this year.

These clients will bring their properties onto the market early July and take their profits in the new tax year. This is a good reminder that June 30th is not far away.

All property and business owners should take note and talk to your tax planners today.

Urban Investment Dynamics

I spoke to Graham Rogers as one of our longest serving Commercial Sales Executives… I often talk to him about the state of the economy and where the next 12 months are leading.

Graham reported that the demand from interstate buyers is almost insatiable. He pointed out that his last four transactions involved Sydney buyers or sellers.

Some sales involved near-city low-cost commercial properties up to a million dollars. Leased Office Suites in the Aurora building in the city CBD are still in high demand.

He added that this building is very appealing, and leases are usually to stable long-term tenants who want a city address.

It is adjacent to the very appealing Hindmarsh Square and a short walk to the tramline which provides excellent services for staff.

Graham is an ardent investor himself with an excellent personal track record.

Northern Regional Property Highlights

Claire Britton is the Head of Commercial Management easing, but she also has some favourite long-term clients for whom she acts personally in a sales and leasing capacity.

Some of her exciting moments in the last few days have included the sale of a small office/retail complex near the Smithfield Railway Station. Again it was her experience that interstate buyers are hungry for our property.

She is also enthusiastic about another notable property, the ‘Old Westpac Bank’ building, situated adjacent to the new Council Building. This substantial establishment is currently available for lease, alongside several other promising sites in the vicinity.

We hope you enjoyed reading our newsletter and wish you a happy Autumn.

Written By L.M. (Lin) Andrews