How to make your apartments last as long as you do


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How to make your apartments last as long as you do

  1. 1. How to Make Your Apartments Last as Long as You Do<br />Webinar, 5 May 2011<br />© Copyright 2011 Teys<br />
  2. 2. Imagine this<br />60’s building<br />80 +residential lots<br />Panoramic beach views<br />Fire order unsatisfied for 8 years<br />Insurance compromised<br />$3.4m to fix without value increase<br />Residents largely retirees<br />
  3. 3. Today’s presentation covers <br />
  4. 4. Part 1<br />Question<br /> Why is it important that we address strata repairs and maintenance?<br />Answer<br />Because nothing is happening<br />
  5. 5. A lot of us live in apartments<br />37.5% Sydney, NSW<br />23.4% Australia-Wide<br />
  6. 6. Apartment owners are getting older<br /> Life Expectancy 81.81 Years (source: CIA)<br />Blues Point Tower 1962<br />2011<br />Strata Titles Act 1961<br />Private Certifiers EPA 1998<br />Alexandria 1904<br />
  7. 7. The whole population is getting older<br />
  8. 8. The older we get the more we like apartment living<br />34.4%<br />27.4%<br />20.2%<br />
  9. 9. We have unworkable laws for renewing our strata titled cities<br />
  10. 10. Part 2<br />Question<br />How do buildings fall into disrepair?<br />Answer<br />Owners are confused and leadership is absent<br />
  11. 11. Confusion reigns supreme<br />They (the strata management firm) are totally disinterested in providing any assistance and keep saying it’s the owners corporations problem (168)<br />There is no-one taking responsibility – each is assuming someone else is responsible (51)<br />Source: Actual responses by survey respondents, Managing Strata Repairs Easthope et al City Futures July 2009 <br />
  12. 12. Modern buildings leak<br />2/3rds surveyed with apartments built since 1997, report ongoing defects caused by defective building and development: City Futures 2009<br />Private certification began with amendments to the Environmental Planning and Assessment Act 1 July 1998<br />
  13. 13. Proper repair estimates are not being made<br />Source: Table 11 Managing Major Repairs in Residential Strata Developments NSW, City Futures 2009<br />
  14. 14. Estimates are being ignored<br />Case study from “The Truth About Strata, What Purchasers Really Need to Know”, TEYS Lawyers 2011<br />Building also had estimated fire safety order expenditure of $55k and unfunded and un-costed building defects > $100k<br />Therefore, really under funded by > $181k or $3,773 per lot<br />
  15. 15. Maintenance policies are non-existent<br />Maintenance policies include:<br />Objectives for consistency<br />Agreed purpose<br />Maintenance philosophy (proactive and reactive)<br />Priority ratings<br />Inspection frequency<br />Contractor competencies<br />Complaint handling<br />Safety monitoring<br />Compliance reporting<br />Which owners corporation is yours? <br />From “The Committee’s Guide to Improving Strata Title Property Values”, Michael Teys 2009<br />
  16. 16. Part 3<br />Question<br />What do we do to extend building life expectancy?<br />Answer<br />Apply some entrepreneurial effort to seize the opportunity<br />
  17. 17. Opportunities for strata managers<br />
  18. 18. Opportunities for contractors<br />
  19. 19. Opportunities for owners corporations<br />
  20. 20. Opportunities for financiers/authority’s<br />
  21. 21. Opportunities for promoters<br />
  22. 22. Now imagine this<br />
  23. 23. Join our next webinar<br />Join us for our next webinar at 4.00pm on Thursday 2 June 2011:<br />“Hidden Tax Liabilities and Opportunities from Being a Member of an Owners Corporation” <br />Reserve your seat now<br /><br />
  24. 24. About the presenter<br />Michael Teys is the Founder and Principal Lawyer of TEYS Lawyers. He has a Bachelor of Laws and practices exclusively in the area of strata title law. He is a Fellow of the Australian College of Community Association Lawyers. He was formerly an Adjunct Lecturer with Charles Sturt University. He appears weekly on SKY News Business Channel's Property Success with Margaret Lomas and is a regular panellist for the property edition of Your Money, Your Call for the same channel. You can find out more about Michael at<br />Teys Lawyers practice nationally in strata title law representing owners corporations, bodies corporate and apartment owners.  The firms practice groups include building defects, strata community disputes, strata titles property law, by-laws and levy collection. <br />Subscribe for their free e-newsletter StrataSpace and find out more about them at<br />© Copyright 2011 Teys<br />